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c. v\ 5 i 1 V
MICH.GAN
iV
O N
OF
ESTABLISHED 1S39
26 I955
JUL
ABMINISTKATIJ#
I
"#
UWUttP
-
ta
The Commercial -sr
Chronicle
Financial
Reg. U. B. Fat. Office
I
EDITORIAL
ordinary citizen with the good of his coun¬
Last
Washington
of
course,
The
the
has
which should
time
real
interests
of
have
the
response
By L. F. McCOLLUM*
the
to
of opinion
Symposium
this
t
balance
the
of
contributions
noteworthy
discusses its prospects
will
exemplified in the fact that we have
been obliged to limit the number carried in each issue
beginning with that of June 2. The Symposium, in our
view, has contributed importantly to a better under¬
standing of the long-term, as well as the short-term
implications of GAW and its variants to industry, labor
was
immensity
five to ten years.i
Symposium
the
to
been devoted to
new
in
The month of July marks
serious
become more "evident that serious
engaged in honest endeavor to serve
the people of this country have again and again
revealed the most astonishing lack of under¬
error
in
judgment,
my
ant
Co.
in
by
struck
semantics
be
a
leum
fuel
but
we
dispel it.
all
will
is affording
list of similar
no
seems
to
fact,
pas. To date the critics have
doing—indeed nothing at all that
faux
wrong
Kenneth A. Spencer
In
be of much real importance.
to
us
Continued
on
page
18
SECURITIES NOW IN
Now
and
McCollum
¥.
me,
lifetime. Today the oil
important in the United
the combined facilities of
all public utilities exceed petroleum in total assets. The
value of crude oil and gas produced in 1954 was over
will
it
,
for
not
within
occur
my
industry is one of the most
States.
Only agriculture and
of
on page
26
McCollum at the Annual Meeting of
Bankers Association, Santa Barbara, Cal.
the
Continued
♦
An
address
"Securities in Registration"
Section, starting on
by
Mr.
Investment
California
REGISTRATION — Underwriters, dealers and investors in
complete picture of issues now registered with the
potential undertakings in our
I
into the future.
It appears
however, that it will be a
long, long time before atomic power
supplants petroleum power. Certainly
to
L.
porate securities are afforded a
DEALERS
industry-^-and the merit
investments.
^
cannot pretend to see too
clearly
settlements
unemployment compensation for
Continued on page 30
provide supplementary
cor¬
SEC
page 36.
State, Municipal
and
m
U. S. Government,
Stale and
Trade Bank & Trust
Municipal
(New York City)
•
A
Analysis
on
BONDS
ESTABLISHED
MEMBERS
AHO
department
115
N.Y.
OTHER
NEW
YORK
1601
STOCK
PORTFOLIOS"
ARE NOW AVAILABLE
BA
OF NEW YORK
EXCHANOSS
Broadway, New York 6, N.Y.
Tel.
Members New York Stock
120
Teletype: NY 1-708
Bond Dept.
Net
To
t. l.watson &Co.
Active
Dealers,
Markets
Banks
Maintained
Brokers
and
Members
Commission
Exchange
Stock
Orders
Canadian Exchanges
Exchange
American
BROADWAY
Executed
DIRECT
WIRES TO
On
4, N. Y.
♦
PL.'nview
•
San Antonio
•
Tyler
bridgeport
•
perth amboy
BANK
coast to coast
CANADIAN
Iowa Southern
Utilities Co.
COMMON
All
Analysis upon request
PoNDdoii Securities
MONTREAL AND TORONTO
COMPANY
NEW YORK
from
CANADIAN DEPARTMENT
Goodbody &
MEMBERS
Abilene
offices
At Regular Rates
Teletype NY 1-2270
50
DEPARTMENT
Chase Manhattan
5
BONDS & STOCKS
SECURITIES
Da!Ii5
34
Exchange
BROADWAY, NEW YORK
CANADIAN
established 1832
FIRST
HARRIS, UPHAM & C°
;-T>00_Teletype NY I-27G6
New York Stock
BOND
REQUEST
THE
THE FIRST NATIONAL CITY BANK
EXCHANGE
AND COMMODITY
STOCK
Bonds and Notes
STUDY
"TEN SAMPLE
Request
J. R. WlLLISTON & CO.
BANK
30 BROAD ST.,
COPIES OF OUR
ON
exchange
bond
growth equity
Priced below book value
•
HAnover 2-3700
CHEMICAL
corn
Public Housing Agency
STATE and MUNICIPAL
NEW
Securities
telephone:
meet
to
oil
this is not the case. These
ments discloses that
of the incidents which the politicians
none
reserves
continue
new petro¬
the nation's
of its securities as
the "Guaranteed
Annual Wage" in the Ford and Gen¬
eral Motors negotiations, but even a
cursory examination of these settle¬
principle
the
to
necessary
requirements. Pointed questions
been raised as to the future
the
of
better off if we
be
Mr. Reuther claimed a victory
be
and developing
have
people—notably Mr. G. M. Loeb—
escaped. This confusion is natural,
can
would
finding
this symposium, I was
a
certain confusion of
from which only a few
relations.
Main
Street—to
Wall
it
the man in the
Street as well as
wonder how long
led
This
street—on
paramount
could and
might well be made of what in other
fields would be termed hopelessly bad public
naturally, the
this serv¬
of useful
production
the
was
power.
subject for many years to come.
Reading through some of the very
interesting comments printed pre¬
viously
Quite
servant.
initial task considered for
not be timely, but I think it is a
assume
that the "die has been cast"
on the Guaranteed Annual Wage is¬
sue.
It is only beginning and shall,
standing of the political dangers of appearances.
The so-called McCarthy investigations, which at
times the Democrats were only too glad to assist,
uncovered almost incredible insensitivity to what
a
Then men
universal fear.
Frankenstein monster could be
may
to
the
bomb
began to hope that this
converted into an obedi¬
the 10th anniversary of
The immediate reaction to the
first atomic bomb.
was
oil
future."
our
ent
President, Spencer Chemical
men
found
there will be "more and more
sources,
energy
as
My comments
for various
petroleum products. Foresees heavy demands for new
capital in the industry, and attacks government price
control of natural gas. Concludes, despite prospect of
KENNETH A. SPENCER
people—and where it
Now the so-called Dixon-Yates case
Finds industry will grow, though there
changing patterns in the demand
be
and the national economy.—EDITOR.
absorbed so
;
the petroleum industry,'
during the next
of
Stressing ^the
Mr. McCollum
seen
.
Houston, Texas
President, Continental Oil Company,
on
the "Chronicle" on the Guaranteed Annual
Wage doctrine appear below. The response to our re¬
quests for comments, made simultaneously with the
publication in the May 26 issue of Frank Rising's article
"Guaranteed Annual Wage: Blue Sky and Brass Tacks,"
daily
minded
in
for expressions
conducted by
where of late obvious at¬
scene
invitation
helpful in clarifying doctrine's
implications to labor, management and nation's economy.
issue.
provoked by
tempts to find "issues" for 1956 have
received
commentaries
the Guaranteed Annual Wage philosophy given in
grist for the designing politician's mill. It some¬
times almost appears as if the priceless gift of
understanding the needs of the people is as noth¬
ing compared with the ability to be eternally on
the alert for appearances, and to do a great deal
of shamming in order to foil those seekers after
public favor whose stock in trade is sham and
palaver.
These observations are,
of
^Chronicle's"
politician who would gain by making things ap¬
pear what they are not, or the more serious
minded public servant who persists in providing
much
The Future Petroleum
Guaranteed Annual Wage
try at heart is often at a loss to know which to
condemn- the more heartily, the small minded
the
Price 40 Cents a Copy
;
7, N. Y., Thursday, July 21, 1955
We See It
As
The
New York
Number 5448
Volume 132
115
NEW
BROADWAY
NEW YORK
YORK
Co.
STOCK EXCHANGE
1 NORTH LA SALLE ST.
CHICAGO
(ORPORATIOTi
40 Exchange
Place, New York b, N.Y,
IRAHAUPT &CO.
and
other Principal
111 Broadway,
WHltehall 4-8161
Boston
Exchanges
N. Y. 6
Teletype NY 1-2708
Telephone: Enterprise 1820
WOrth 4-6000
Teletype NY 1-702-3
York Stock Exchange
Members New
,
2
The Commercial and Financial Chronicle
(266)
The
Brokers, Dealers only
For Banks,
Boxboard
American
a different group of experts
advisory held from all sections of the country
in the investment and
participate and give their
Cleveland Cliffs
Copeland Refrigeration
reasons
Mines
they to be regarded,
offer
as an
Partner: Gottron, Russell
time
Pubco Development
tends
those
favor
to
situa¬
having speculative promise.
Hardly a day goes by but what
Republic Natural Gas
Transmission
tells
desk,
story
a
of unlimited
Corporation
possibilities
and what pur¬
1020
ports
Member
Exchange
5
Broadway, New York
Teletype NY 1-40
Principal Cities
to
the
Few
history
a
record
to
For
a
have
I
time
who has provpn it¬
company
in
self
few
past
Exchange
BROADWAY, NEW YORK 5
TEL. REctor 2-7815
In¬
virtually
Inc.,
New management came
was
in,
times
changed
and
today
Chesapeake is on the threshold of
a
new
era
in holding company
disaster to
the aforementioned small
preferred issues there is approxi¬
mately 3,000,000 shares
mon outstanding.
is
It
will
future
of
list
to
place
a
could
as
suc¬
a
In
Inc..
of
ducts
SOLD
Colonial
Stock Exchange
Exchange
1051 Penobscot Building
DETROIT 26, MICII.
Woodward 2-3855
DE
Establised
75
City,
Mich.
Members
York
Center,
New York
City. A portion of
the space is occupied by Pathe
Laboratories, the balance having
TV studios and recording rooms
are
leased to NBC, RKO-Pathe,
Allen
Exchange
Productions
American
Stock
Cotton
Exchange
Corp.
of
Plainville,
enjoys I Government
for
units
radar
con¬
York
Commodity
Chicago
Board
New Orleans
and
Exchange,
of
Cotton
other
security items.
Inc.
printed
Trade
For
electrical
civilian
circuits,
simile communications equipment
Exchange
and
exchanges
condensers
are
leading items
produced.
W. Y.
Cotton
NEW
Chicago
Miami
fibDyvood,
Exchange Bldg,
YORK
•
Detroit
Beach
Pla.
Geneva,
•
•
N.
4,
•
Y.
Beverly
Gabies
Hills,
Switzerland
Amesterdam,
New
Pittsburgh
Coral
Holland
National
at
on
but
many
funds,
offer
not
York
is
the
Inc.,
nation's
largest
transportation advertising firm
Chesapeake
Cat
New York
of
Printing
of
investments
Corp.
is
to
is
main¬
printing.
the
vested
ance
the
fund
to
the
not
neces-
larger
life
companies will be
6f
in six
or
are
life
the
net
assets
currently
the
stocks;
in¬
bal¬
It is
will
be
anticipated that
fully
invested
and
Yamaichi
Co., Ltd.
Established
Home Office
1897
Tokyo—70 Branches
Brokers & Investment Bankers
111
Broadway,N.Y.6 COrtlandt 7-5680
Re¬
Treasurer,
is
Bradford
&
G.
the
life
insurance
from an operating
investment point of view foi
Over
a
year
mended
stock
ago
Stylon
at
75^
we
recom¬
Corporation
share.
per
It
is
selling around $4.
now
We
years.
and
management
-con¬
with
Templeton, Dcbbrow
Vance, Inc., New York invest¬
&
ment
now
are
recommending
URANIUM CORPORATION
counselors.
United
States
Trust
securities; and
tain
clerical
provides
and
bookkeeping
insurance stocks normally are on
basis,
it
to be
income
.
is
from
fund
those
PRICE ON
a
anticipated
dividends
is
tal
cap
Phone
as
capi¬
tal
gains dividends ]to shareholders
enhancing overall retu- n.
The
fund
has
qualified as a
regulated investment company so
of
ipast
90%
its
of
be
must
of
n°t
paid
TO
Federal
A
TRADING
DIRECT
OPEN
WE
NOW
END
WIRE
TO NEW YORK CITY—
REctor 2-4208
out
McCOY & WILLARD
Income
\Investment Securities
30 FEDERAL ST., BOSTON
Interesting Situation
Investors, Inc. i<=
interesting situation because it
small
to
management in
and
new
tax¬
Life Insurance
offers
EXPEDITE
HAVE
Taxes.
an
for
illustrated brochure
policy relieves the company
payment
REQUEST
write
ga'n;
are
income
or
which
years
profits will be distributed
Pt
richly reward¬
re¬
net
realized as the result
investment "switches,"
these
of
opinion promises
of the
Plateau.
by the fund will bo rela¬
tively small. The primary objec¬
the
our
one
ing producers in the Colorado
yet, no dividend policy has
formulated; but because life
low-yield
which in
cer¬
Dividends
As
Of AMERICA
Company
services.
heretofore
investment.
a
investors
A.
T.
&
T.
Teletype
—
Boston
128
able
highly technical
restricted
area
Participation
eight months.
legal limit
(5%
of net
as¬
Connecticut General Life Insur¬
Company.
the
of
because of
life
shares.
of
invest¬
subject;
limited
In
but
also
availability of
the
first
place, of
all the life insurance placed in the
United
only
States
35%
panies.
shares
City handles all types ing stocks:
ance
write
or
f ecurities
A
both
nature
Assets
is held in short-term govern¬
fund
t
potential.
ment-wise has been limited partly
because of the highly technical
56%
in
Group.
invest
of sets) is held in each of the follow¬
commercial, legal and display
with
This
are
Invested
of
J.
industry
buy
can
considered.
About
Life
Ins'ira^e
and
of
sociated
able
companies, and undervalued stocks
smaller
Call
Presiden'
Company, an investment oanking
firm, and has been intimately as¬
the
companies or companies hav¬
ing an interest in the life business;
The
.
partner
a
Inves¬
ance
the
(Best's
Director
ford,
solely in the stocks of life insur¬
of
investors with knowledge
of Japanese
is President of Life In¬
Investors, Inc.; J. C. Brad¬
surance
to
counter" where
-
policy
limited
to investors with vision—
Company, Inc., insurance
publishers
ports),
profits
market
ment issues.
Transitads,
Insurance
M. Best
public.
Heavner
shares "over -the
sarilv
is
National
Raymond
T
Vice-President cf Alfred
Smith,
uously
but
Wells
director,
net
does
use,
fac¬
fourth
in
shares contin¬
Its
have unusual appeal
may
Insurance Company; and M.
D
Lincoln, President of the Nationa1
Casualty Company and the Na¬
of
unlike
tained.
JAPANESE
^ooets
insurance companies
is
President
of
Northwestern
tive
re-
other
other
and
of
shares
active
net
Becker
George
pany;
and
It
Exchange
New
tracts
Electronics
Cardwell
D.
Charles
its
fund.
an
owned
are
of
the Franklin Life Insurance Com¬
deems
S.
5%
ceived
investment
Roy
offices
stock.
one
known
that
asset value
Inc.,, owns
building
well
type, open-end
tors
Television
h
diversified,
demand;
and operates an 11-story
than
Management is
of
unusually
high quality; three of the five di¬
rectors are operating executives cf.
management
bookstacks.
Conn.,
Stock
This fund
in
resulted
any
been
of
diversification
has
investment
a
television
which
branch
our
SECURITIES
Inc.,
Hollywood proc¬
motion picture
brought
less
Management
is Life Insurance In¬
traded
over-the-
group
fi'm for the
Universal News and others.
1856
H. Hentz & Cc.
New
and
the
to
counter.
sales and profits.
Virginia Metal Products Corp.
of Orange, Va., is the second larg¬
est
manufacturer of steel parti¬
tions, door frames, etc., and the
vnHrTs
Jqrgest builder of library
in
Office—Bay
fund
1955)
of
Inc.,
in
and
(began operations
increased
Members
Branch
Laboratories,
York
New
3,
vestors,
products
Pfd.
Stock
banking
Sixteen other issues
with
of New York is Custodian for cash
Lifa Insurance Investors, Inc.
Feb.
to
Corporation
tract
Philadelphia, Pa.
con¬
profitable
business.
have
HORELAND & GO.
Detroit
Trust
and
wires
Company stock).
ance
be
Partner, Templeton, Dobbrow & Vance,
Investment
Counselors,
newcomer
Direct
Company.
Transamenca
advisory
A
MY 1-1557
La. -Birmingham, Ala.
Mobile, Ala.
The fund also has in investment
Cleveland, Ohio, is the world's
largest manufacturer of oil ex¬
traction machinery. Recent years
EQUIPMENT
Midwest
extensive
an
.
HAnover 2-0700
(owner of Occidential Life Insur¬
many
of
MONROE AUTO
could
date
later
a
industry and is a
most successful operation.
The V. D. Anderson Company
QUOTED
&
having
growing international
and
Com.
at
profitable.
ROY S. HEAVNER
four
local
branches specializing in commer¬
cial banking with special ernpha^sis
on
its foreign
departments.
With more than 300 foreign corre¬
City,
esses
—
hand¬
a
profits for its shareholders,
a
public appraisal of the
and
Colonial Trust Company in New
Lynchburg, Va.
BOUGHT
reap
and
iaries:
Pathe
LD 33
shares
common
opinion
the common
Chesapeake Industries,
my
stock
spondents,
Tele. LY 62
the
ance
tionwide
near
very
Chesapeake Industries, Inc., on
York Stock Exchange.
most
York
Scott, Horner &
Mason, Inc.
com¬
the New
Chesapeake
Industries,
owns
the following subsid¬
Today
Dan River Mills
the
in
made
of
that application
expected
be
reward.
some
Company
ap¬
stock
Trading Markets
Commonwealth Natural Gas
stock and
$4 preferred
Inc.,
presents an
extraordinary
speculative opportunity. The dvnamic management has dedicated
itself to attain outstanding success
stockholder
Company
approxi¬
Exchange
American Stock Exchange
National Life & Accident Insur¬
Stanley
has proven its
ability to guide the destiny of this
company from the brink of busi¬
ness
Alabama-Tennessee Natural
Co.,
success.
cessful enterprise and the patient
American Furniture Company
Trust
lowing
Chesapeake
ago,
years
and
years
untold value.
holds
future
whose
Five
the
attracted
been
Management
scJcK. Exchange
Gas
Members New York Stock
Members
New Orleans,
Travelers Insurance Company.
Life Insurance Company
income from
include
not
Members
120
Steiner, Rouse & Co.
Lincoln National Life Insurance
Aetna
proximately 24,840 shares of $10
par value $5 preferred stock. Fol¬
Morton A. Cayne
dustries,
ffopONNELL & CO.
Stock
Inc.—
Company.
area.
Colonial
value
"busted."
American
Bought■—Sold—Quoted
investors,
19 Rector St., New York 6, N. Y.
Jan.
or
mately 44,700 shares of a $10 par
wor¬
eration.
Since 1917.
50,000
in July, 1955).
There is outstanding
apprecia-
tion.
some
Rights & Scrip
estimated
an
ital
thy of consid¬
Specialists in
of
this did
be a
to
munity
Greetings, Inc., or the Portsmouth
Gas Company (the latter acquired
or
York
(Page 2)
Insurance
Roy S. Heavner, Partner, Tem¬
pleton, Dobbrow & Vance, Phil¬
adelphia, Pa. (Page 2)
of
Company
golden oppor¬
tunity for cap¬
have
New
Life
colored
1, 1955, it was esti¬
mated that Chesapeake Industries
Had a tax loss carry forward of
approximately $4,000,000 that will
be good through
1956.
Consoli¬
dated
net
profits, after several
large
charge-offs,
at
year-end
1954 amounted to $1,001,486 but
culars, cards,
"red herrings"
cross my
New York Hanseatic
Wires
Ohio.
population and is located in a fast
As
each of which
Private
Louisiana Securities
A.
Cayne, Partner, Gottron,
Russell & Co., Inc., Cleveland,
Portsmouth, Ohio, is a well oper¬
ated public utility serving a com¬
growing
cir¬
countless
Western Natural Gas
WOrth 4-2300
Gas
Portsmouth
tions
120
ton
manufactures
modern,
Alabama &
Selections
■
Long-Bell Lumber of Mo.
Stock
distributes
Chesapeake Industries, Inc.
My interest in securities at this
Associate
Ohio,
"
Chesapeake Industries, Inc.—Mor¬
greeting cards.
L.O.F. Glass Fibres
American
designs,
ton,
Week's
Participants and
Their
are not intended to be, nor
sell the securities discussed.)
and
& Co., Inc.,
Hycon Manufacturing
Established
particular security.
a
Stanley Greetings, Inc., of Day¬
Cleveland, Ohio
Gas
to
A. CAYNE
MORTON
Home Insurance
Tennessee
for favoring
(The articles contained in this forum
are
Service
Haile
This
Forum
A continuous forum in which, each week,
,
Chesapeake Industries
Gas
Security I Like Best
Thursday, July 21, 1955
...
panies
in
is sold
any
one
year,
by stock
com¬
Secondly, the number of
outstanding in these
is
relatively
small.
resulting high priced shares,
when
ment
representing
good
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Year
Performance of
35 Industrial Stocks
com¬
The
POLDER ON REQUEST
even
invest¬
values, have not always at-
Continued
N. Q. B.
National Quotation Bureau
Incorporated
46 Front Street
on
page
6
New York
4, N.Y.
Number 5448
Volume 182
...
The Commercial and Financial Chronicle
(267)
The
,*•
INDEX
Fulbright Fallacy
Bill
Fulbright
Commission
giving
jurisdiction
of
Articles and News
market, SEC inspired.rNo demand
The Future Petroleum Industry and Atomic Power
—L. F. McCollum
need^for this
nor
Page
over-the-
'
counter
as
it would not be in the public interest.
Hazel
Opposition of diverse
crystal clear.
groups
U.
Cobleigh-
mental
—Frank M.
~
better
Exchange Act of 1934
understand
what
motivating forces behind the
pros
is
amended,
as
What's
thetic to
a
and
cons, a
and the
bit of his¬
No
movement then under way to revise the
In 1946,
Bleibtreu___.
Sound Dollar
a
for
7
Fulbright
Bill
to
Regulate
Uranium
Unlisted
9
_
Industrialist Surveys the U. S. and Canadian
summarizing
of the
some
reasons
for
10
of its proponents,
some
we were
among
we
Automatic Factories—Roger W. Babson^
*
"Chronicle's"
V
*
Coal
Wage
Sees
Within
Atomic
Power
in
Competition
With
Decaue_____:^
J. F. REILLY & CO.
17
"Truly Fantastic Boom," Says Arthur A. Smith__ 17
a
Martin,
42
Broadway, New York 4
DIgby 4-4970
Unnecessary by William
Direct
.
Jr
Teletype: NY 1-4643
wire
19
Bullish Factors in Business Outlook Cited
by
Bank of Chicago
City Stock Exch.
Spokane Stock\Exchange
47
.
to
Salt
branch
Lake
office
in
City
Federal Reserve
19
want it.
Corpus Christi Refining Co.
Regular Features
Gulf Coast Leaseholds
in the securities
'
As We
See
It
(Editorial)
_.
..
Cover
|
Bank and Insurance Stocks
Event!in
Coming
Nathan
Straus-Dup&rquet
22
Business Man's Bookshelf
have sought to slay, as our
archives will
White Canyon Uranium
Symposium
Automation
kind whether by brokers, dealers,
we
16
Cover
Oil
and
Standard Uranium
13
Ceng. Wright Patman Committee to Study Effects of
by the agencies that regulate them, has
always been the dragon
LJ
Members Salt Lake
^
any
'
*
Guaranteed Annual
Hafstad
We Are in
our un¬
field.
Deception of
Sabre Uranium
Concluded
Lawrence
Uranium
12
Financing the Atomic Revolution—Morris M. Townsend
the first to flay editorially the
venal practices of the nineteen twenties
4 Corners
11
Ethical Standards: Doctors and Financial Advisors
—Curtis V. ter Kuile
;
opposition to the Fulbright Bill, and some of the
influencing
Scene
Holman
McChesney
or
together and
to us!
WALL STREET, NEW YORK
Telephone: WHitehall 4-6551
/
in its "Report to Congress," the SEC officially
underwriters
all
Obsolete Securities Dept.
6
Silver Purchase Legislation Termed
known that
'em
bring 'em
6
.
•Atoms for Peace—Lewis L. Strauss
holders.
Before
for egg
1955
Lisbon
Grounds
—Eugene
Secu¬
bright Bill. This it did under the deceptive title "A Pro¬
posal to Safeguard Investors in Unregistered Securities."
It is significant that the Frear Bill used that criterion of
the Equalization Plan which made it applicable to com¬
panies with assets of $3,000,000, having at least 300 stock¬
motives
E
5
for extinct
for troublesome
Federal Uranium
espoused the "principles" which constituted the founda¬
tion of the Frear Bill (S. 2408), the forerunner of the Ful¬
alterable
of
______
Ahead?—Jacob
Sound
An
the SEC was said to be sympa¬
1941
as
should be granted unlisted trading privileges.
beguilingly called the "Equalization Plan."
was
Rest
Companies—Ralph P. Coleman, Jr
Exchange Act of 1934 the effect of which would
have been to qualify the wholesale admission of securities
to listed or unlisted trading privileges on Exchanges.
It was then suggested that companies with total assets
of $3,000,000 or more, and having 300 or more stockThis
outcast
for loss
happening,
rities
y holders,
Cryan
Course for the
Economic Illiteracy: A Menace to
—Orval W. Adams__
r
tory is called for.
As far back
for
E
4
99
security holders, to the registration, supple¬
reports, proxy rules, and insider trading require¬
ments of the Securities
Bad
Stale
Put
Charting Our Financial
500
To
_
Reappraisal—Bradbury K. Thurlow
the Fulbright Bill (S. 2054) would subject
the securities of which are traded over-thecounter, and which have at least $5,000,000 in assets and
| companies
at least
J__
for
T
noted.
The Stock Market: A
In brief,
3
for
L
(An Editorial)
Bishop, Confirmed Leader in Lipsticks
—Ira
is
Fallacy
S
O
Fulbright
old trick of seeking enlargement of its
Congressional obligation and duty to defeat this Bill
powers.
for Old
B
The
Commission up to its
O
Cover
____
proposed legislation
3
1
Standard
15
the Investtment Field__
Standard
44
Factors
Uranium
prove.
abundantly
For decades the auction
or
over-the-counter market have
served
our
economy
Dealer-Broker Investment Recommendations
exchange market, and the
progressed
a pace
Mutual
product of well established custom and usage whilst
governed by rules fixed by their con¬
exchanges
are
12
Indications of Current Business Activity__
well. The over-the-counter market is
the
We maintain
From Washington Ahead of the News—Carlise
BaBrgeron__
and have
the
Pacific Uranium Mines Co.
8
Einzig: "Sterling Convertibility Prospects and the World Fund" 18
NSTA
trolling bodies.
than
'
&
8
knowing the characteristics of both mar¬
20
Observations—A Wilfred May
kets, has his choice, and can find in either, securities to
portfolio requirements, be these what they may.
meet his
He should
never
be
dragooned into
a
Our
Reporter
Our
5
Reporter's Report
Governments
on
selection, but make
Public
Utility
his free choice.
.
4*"'-
-.
view the passage
our
calamitous.
It would hurt the investor and small business
substantial expenditures for compliance.
by compelling
Required
mercy
reporting would
business at the
place small
of big business. It would dangerously and unneces¬
sarily enlarge the powers of the SEC. It would injure our
economy
counter
by favoring the auction as against the over-the-
market, by destroying certain privileges and imContinued
on
page
Prospective
Securities
.
.
*.
Offerings
and
You—By Wallace Streete_.
have
IIILrtllllLUOl UUllO
specialized in
2
The State of Trade and Industry
44
Will Become One of the
Twice
Weekly
1
Drapers' Gardens, London,
land, c/o Edwards & Smith.
Copyright 1955 by William
Company
Reg. U. S. Patent Office
Reentered
WILLIAM
B.
DANA
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BROAD
•
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COMPANY, Publishers
•
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ary
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July
21,
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The COMMERCIAL and
DDrCrDDCn
We
40
Security I Like Best
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WHY
36
Salesman's Corner
The Market
The
Registration
Security
to
22
19
Securities Now in
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Philadelphia • Chicago • Los Angeles
8
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of the Fulbright Bill would be
*
inc.
Exchange PI., N. Y.
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;
Railroad Securities
In
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'
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4
The Commercial and Financial Chronicle
(268)
Thursday, July 21, 1355
...
1
D
V
there
1954,
Hazel Bishop, Confirmed
Leader in Lipsticks
Touching
colorful
the
upon
The
expression
Shakespearean
applies with
the cosmetic
lily"
peculiar aptness to
"to
the
paint
these alluring artifices
arts. In fact
products
promote Hazel
hit-or-miss, or
not
was
It
haphazardly arrived at.
bold frontal
dedicated
newest
primarily (but
attack
was a
geared to the
exclusive¬
not
ly) to the per¬
sonal
adorn¬
ment
of
the
female
of
the
Hazel
Bishop came on
the scene, lines of cosmetics had,
of course, been widely advertised,
but no single item had been given
Food
pre¬
three shares of common).
it took
Industry
Index
Production
Business Failures
expansion and growth,
while for earning
was
53c
break,
production
in
schedules
some
industries
offset
mild cuts in other lines resulting in over-all industrial production
the country-at-large, being maintained in the period ended
>
for
on
Wednesday of last week at
was
assert itself.
1952
1953 showed
to
even
Stepped-up
•;>.
that of
money
little
a
power
much
so
needed for
an
Trade
Price
Auto
and
the Amer¬
on
shares of common
1,088,000
Where
Before
Carloadings
Retail
Commodity Price Index
Stock
ceded by 84,420 shares of $10 par
6%
preferred {convertible- into
vision.
advertising medium—tele¬
listed
was
Electric Output
State of Trade
Exchange, and now is
owned by more than 2.500 share¬
holders.
Total
capitalization is
ican
Production
Steel
The
new
common
amazing
program devised to
Bishop
r
of
financing), at $8 per share
to provide, in part, funds for the
Canadian factory; to finance in¬
ventory and accounts receivable,
and to develop foreign business.
On
Dec.
6,
1954, Hazel Bishop
it,
Economist
and quite
of Hazel Bishop, Inc.
sales growth
250,000
(150,000
subscription
for
mon
By IRA U. COBLEIGII
Enterprise
offered
were
shares of Hazel Bishop, Inc. com¬
a
high level and noticeably above
a
year ago.
Since
large number of the workers at factories closed
a
vacation periods were not eligible for vacation
for
initial claims :
unemployment insurance rose moderately the past week. 1
About 3% of those covered by State unemployment insurance
programs were receiving benefit payments..
1 -;>v^
:
pay,
for
.
species far
an-
ing
network
the
tedate
treatment; and dar¬
television shows to
spot-light ad
sell
one
cosmetic
product
—
lip¬
share, and 1954, 90c, making
possible dividend payments so far
a
this year of
pird of Avon.
stick—were
Six
body's book. But the Hazel Bishop
and
poses
two questions:
campaign paid off, and handsome¬
ly. Over a dozen TV shows plug¬
the
sales
and
thousand
the
ago
years
Egyptians had
perfumes
and
ointments, and
e
Ira
U.
Cobieign
ve
b
r
shadow.
w
o
Later
on.the Greeks,
addition
in
to
giving
busts by
us
Praxitiles. and temples to Athena,
devised
cosmetic pencils,
charcoal
face
tives
powders of lead deriva¬
that, in certain instances,
made
the
and
for beauty
quest
lit¬
a
The pagan
Romans really went gaga about
gorgeousness
and
rich
Roman
erally sickening one.
often
dames
whose
had
oriental
business
sole
was
slaves
to
and
facials
fragrances,
and bath oils for milady.
up
cook
balms
Centuries later came the French
perfection of perfumes,
finally in the more austere
Century cosmetics, except for
19th
talcum powder enjoyed but slight
the
Came
vogue.
imoroved
20th
Century,
incomes, glamor adver¬
tising and the whole
went
cosmos
cosmetic.
in all
Today in the U. S.,
phases from Toni to Tintair,
from
henna to hormones, cosmet¬
ics
constitute
year
dollar
a
business.
gross
After this
the
don
billion
a
Hazel
since
of
women
all
wards
been
with
1955
now
has
to
(you'll
expression)
through
and
Gamble,
sponsoring the show
In
alter¬
on
this way
the cost
Bishop is halved, while
Hazel
par¬
historical
of the advance of syn¬
attractiveness,
we
really
con¬
tinuity is retained.
this TV
us
to date
up
their
the
t^se
to
answers
deoend
of
policies,
and
the results of major development
in
directions—new
two
and foreign sales.
The
prod¬
Hazel
Bishop
"Compact
Make-up" and Hazel Bishop "Li¬
quid
Make-up."
launched
this
ucts,
year,
moving well and
total sales into
are
projecting
are
new
high ground.
The
market
possibilities of the foreign
appear intriguing.
Until
June, 1954. Hazel Bishop products
distributed
were
licensee.
in
Canada
that
At
time
by
this
and
Hazel Bishop of Canada, Ltd., sub¬
stituted.
look
a
the
at
Hazel
Bishop sales figures. For the fiscal
ended'
October, 1950, sales
$700,000.
In 1951 this figure
year
were
the
the
subsidiary
new
much
the very first month,
In
the
as
entire
sold
as
iumped to $2,800,000; in 1952, $4,550,000; in 1953, $9,900,000 and for
1954,
Venezuela and other South Amer¬
$12,000,000.
This
17-fold
jump in five short years car¬
ried Hazel
Bishop to
a position of
lipstick (Hazel
in
Bishop) and rouge ("Complexion
Glow"). In January, 1949 there
50
year.
Also there
ican countries.
are
ex¬
panding foreign outlets in Mexico
through
handling,
agent
an
as
well, products of Lever Bros, and
General
Foods;
in
and
South
summary
were some
thetic
ket, with the then leading brand
doing 8% of the total business.
big outfits like Gillette, and Coleate-Palmolive-Peet glean around
By the end of
50%
ought
all
to
the
present
various
panorama
a
current
of
cosmetic
producers. But alas, time and the
traditional length of this column
prevent;
so
cover
single
a
Bishop,
has
Inc.,
just
selected
than
going
because
in
it
the
on
mar¬
1954 Hazel Bishop
reported
doing
25% of the
entire lipstick business, and be¬
lieved to be doin£ 50% of the dol¬
lar
volume
Quite
in
the
of
Bishop
a
shorter
saga
Hazel
cosmetic
a
other
any
to
Hazel
company,
faster,
grown
time,
we're
was
lipsticks
through
over
sale
of
rouge.
success.
140,000 outlets; the
company we can think
of; and its
products have become rapidly and
on the screens
standard ones such
broadly visible both
drug stores and beauty shops, plus
variety chains, drug wholesalers,
of
televisions, and the fash¬
ionably fascinating faces of our
Jemmes.
It all started just a little over
and
five years ago, in November, 1949
with a new type long lasting (to
line
go
our
with
"permanent"
smear-proof lipstick
waves?),
called Hazel
Bishop.
And Hazel Bishop owes
its meteoric rise, and wide acceptI ance, most
importantly to dynamic
advertising
in
general,
and
the
supermarkets
In
1954
forward
steps
August,
of
agency
ticular.
and
the
advertising
bearing his name, in par¬
Until
the
year,
been
entire
manu¬
comnanv
decided,
however, that the broad future of
Bishop was in manufactur¬
Hazel
ing its
own
leased
at
line. Thus
Paramus,
feet),
square
new
Bishop),
policy.
by others, to
specifications.
It
was
year ago;
Hazel
of
major
began
and there
company
J.
production
are
plants,
Angeles, Cal., and
plant,
(47,000
new
a
N.
one
a
in Los
in Toronto,
Canada.
The
second
major
in rrs
from Hazel
advertising and sales
was
public financing.
policy
step
[ESTABLISHED )894fc
this
course
lipstick, which sells at
$1.10, shares some 50% of total
lipstick sales with such aggressive
merchants
Revlon
as
and
(door-to-door).
Avon
But the
advertising and selling for¬
mulas, and the same on-the-ball
same
management team that has created
the
omies
of
manufacturing
econ¬
in
com¬
plants, suggest that Hazel
Bishop can develop long lasting
earning power, as well as long
pany
lasting
lipsticks.
home,
abroad, to
that
Expanding
at
comes
the
use
make
and
the
in¬
desire
cosmetics
same
American
women
so
chie, charming and modish, au^ur
for
color
Hazel
is
are
cosmetics, and for
Bishop.
world
Even
divided
into
always
though
two
golden
the
camps
oppor¬
to
make-uo!
Perhaps a
understanding" compact
rould be the next
Bishoo.
It
^kes!
offering of Hazel
should
sell
like
pan
^
LOCAL STOCKS
With Morfeld, Moss
'
(Special to The Financial Chronicle)
^TKe
Rofeihson-Hitmphrey Company,Inc.
ST.
LOUIS,
Moynihan
Morfeld,
RHODES-HAVERTY BLDG.
ATLANTA
WALNUT 0316
LONG
1, GEORGIA
DISTANCE 421
is
Mo.
now
Moss
&
—
Helen
conected
Hartnett.
C.
with
721
the
west Stock
Exchange.
nihan
formerly with Arthur
F. Bownes & Co.
unemployment
compensation
;
Miss Moy¬
•
production in June held at the record level cf 138%
1947-49
<
the Federal Reserve Board stated. This
equalled the pace set in April and May this year and in March,
1953. It topped June, 1954, by 14 points. New highs were reached
last mdiith in the output of paper, chemical, oil and rubber prod¬
average,
But activities in the steel and
ucts.
auto industries
were
curtailed
moderately by temporary work stoppages during contract negotia¬
tions, it declared.
Three of the major problems now confronting steel producers
are
maintenance,
and order backlogs, states "The Iron Age,"
weekly, this week.
The mills have been fighting a rearguard action with all three
scrap
national metalworking
for
<
months, but the short steel strike seemed to bring things to
Now they've got to do something about them.
a
head.
It's not
since
ticket
entirely unhappy situation,
an
these
problems
business—so
from
good
maintenance
are
outgrowth
the
that the mills
order standpoint
an
have
Producers
been
bugaboo
for
can
over
looking
some
this trade weekly,
exceptionally good
says
of
just about write their
balance of the year.
their shoulders at
over
time.
They
knew
it
own
the
eventually
catch
would
up with them, but they deferred it as long as they
maintenance is a factor in delaying their comeback to
the pre-strike
production level, since reports from producing
centers indicate that required maintenance is holding down both
could. Now,
steel and iron production, this trade
authority declares.
is getting out of hand with prices not only
rising, but literally going up by leaps and bounds. Behind the
upsurge are these factors: earlier depressed prices that tended to
dry up sources of dealer scrap, less hot iron due to blast furnace
maintenance and steel fabricator plant vacation shutdowns v/hich
reduce the flow of industrial scrap, reports this trade journal.
The scrap market
Order
backlogs
have
piling up
been
since early
in second
the tighter
products. The mills have tried to cope with this situation through
an
informal quota system to avoid hardship to their customers.
This has helped considerably, but the day of reckoning has arrived.
In the automotive industry the record-level output by Ford
and now extended to 60 days and
quarter,
Division
General
and
and truck
Motors
Corp.
more
boosted
on
United
States
car
building by 26% last week to a six-week peak that was
only 9% below the all-time high posted at the end of April.
"Ward's Automotive Reports," in counting 196,411 completions r
week against 155,707 in the preceding week, said opera¬
the highest since 198,282 units left the lines during
the past
tions
were
May 22-28.
The 216,629 all-time high record was set in the period
April 24-30.
The past week's program consisted of 168,056 cars and 28,355
compared with
trucks
uled
of
10
volume
week of
plants for work this Saturday, General
matching this record drive by a return to its all-time
of 91,940 car completions recorded in the closing
its, assembly
Motors Corp.
bmh
134,092 and 21,615 in the previous period.
weekly publication said that the Ford Division has sched¬
The
April.
interruptions plagued Chrysler Corp. opera¬
its third consecutive three-day work
week.
Remaining car makers, their dealer inventories heavy,
held assemblies to 44% below their 11,905-unit 1955 high estab¬
heat
Meantime
tions and Dodge programmed
lished during the
week of March 20-26.
Encouraged by a 14% increase in industrywide dealer new
truck sales during June over May, several volume truck makers
continue
to
program
manufacturers
volume
substantial
are
production.
However,
other
revising their June operations down¬
ward, indicating that the stimulus of the new
has worn off of truck sales.
1955 model styling
,
Elsewhere
was
halted
on
last
the production front, output of Studebaker cars
Thursday bv
a
work stoppage stemming from
a
seniority, and Ford car assembly was curtailed by a
transfer of its Edgewater plant facilities to a new factory in near¬
by Mahwah, New Jersey.
Dipping 4% in June business failures declined to 914.
Al¬
though this downturn followed the usual seasonal pattern, casual¬
ties were also below the year-ago level.
Failures were 5% fewer
than in 1954 when they were at a postwar high for the month.
While total failures in the first half of 1955 amounted to 5,626,
some 3%
less than in the similar period of 1954, they were 31%
dispute
more
Olive Street, members of the Mid¬
was
for
by 29,500 to 1,059,800.
Industrial
of
present merchandising veloc¬
ity of Hazel Bishop, plus the
tunities
CORPORATE BONDS
busi¬
cosmetic
Bishop
"mutual
STATE AND MUNICIPAL BONDS
overseas
is competitive; and the Hazel
ness
well
On Oct. 21,
Bishop's
sales.
there
The
that
profits from foreign
there is good reason to
expect excellent long range earn-
two other
one
consider
you
,
July 2, the total of workers drawing jobless
This compared with 1,770,100
earlier, the department said.
year
of their
Products
two
factured
tor
Chairman
took
in
that
of
well.
as
products had
personal talents of Raymond Spec-
(Board
Hazel
department,
as
When
markets,
Of
distributes
now
Africa.
a
in
Other
owned subsidiaries are exporting
to
Cuba, Panama,
Puerto Rico,
sales
preceding
half
had sold
licensee
claims
United
In the week ended
pay dropped
subsidiary,
technique has been over-stressed,
just
take
the
week, first claims rose 37,000. Some 35 states reported increases
new claims, reflecting layoffs due to plant shutdowns fcr vaca¬
A year ago, first claims totaled 344,100.
a
ar¬
terminated,
was
direct distribution by a
claims
by
tion periods.
products
new
first
week
■
.
in
.
advertising
second. consecutive
insurance
55,400 to 282,600 during the week ended July 9, the departBureau
of
Unemployment Security said. The previous
rose
a
on
effectiveness
continued
present
unemployment
of Labor.
workers'
Idle
state
ment's
Bishop going to be?
stock is Hazel
The
States Department
(1) Will
continue
net
rapid expansion? (2) How good
rangement
Lest it be thought that
leadership
compact
Ralph «TL'd-
signed
Procter
nate weeks.
stages,
and
ages
walks and talks of life.
the effectiveness of program
with their
and
Bishop have hit the
January, 1951, in¬
cluding the "Show of the Month,"
the
"Martha
Raye
Show," the
"Dunninger Show," and the one
you probably know best—"This Is
Your Life" with Ralph Edwards.
This last one began in October,
1952 and made the Hazel Bishop
lipstick
a
labial
leader'
with
ging
coaxials
That about brings
innovation in any¬
an
in
the
for
reported
were
37V2C.
increases
Seasonal
over
numerous
;
<
than in 1953.
mortality rate for each 10,000 concerns listed in the Dun
& Bradstreet Reference Book, as reflected in Dun's Failure Index,
The
declined
to 41
in June from 42
in the previous month and 43 a
Continued,
on
page
34
Volume 182
Number 5448.. .The Commercial and Financial
Chronicle
Observations.
(b) Volume, which generally
makes
its
peak along with
The Stock Market: A Reappraisal
•
prices in a speculative mar¬
ket, has fallen some 40% from
the peak levels of last De¬
cember while the Dow-Jones
Industrials have advanced
By BRADBURY K. TIIURLOW
•
Partner, Osborne & Thurlow, New York City
By A. WILFRED MAY
seems
vitally important
as
much
to this market observer to examine
least
to
spot news
mu
be
extent, capital expenditures
make an addition to the equity
share's value.
Second, it is tied
whether much of
woriy
with
up
its
prices
tem-
were
already well
tneir
on
to
Wilfred
A.
May
way
highs.
new
Now
the
rise has lasted
merely to keep even — another step on a progress
Department stores constitute an important
group
the necessity of
treadmill.
seeming to
making substantial expendi¬
tures fcr capital assets, not for
proportionately increased profits,
but as an outlay merely to
keep from losing ground to competitors
within the industry or to
selling media outside the industry. In
the first category would be the
large expenditures for air-condi¬
tioning; in the second (and overlapping to the
first), the building
of community branch stores.
almost
two
in
sought
in
terrupted
by
any
decline
profit.
The
this
serious
more
than the "Fulof
Thurlow
since
The chemical industry also
exemplifies an area where huge
outlays are necessary to maintain position, as a
defensive process.
Despite the growth factor so outstanding in this
industry, and
the constant increase
in sales, most of the
leading chemical
companies have been unable to re-attain
earnings-per-share which
they lfgistered back in 1951. The ploughing-back hardly man-
1S
tains the status quo.
This defensive-expenditure
exigency also obtains in that blueblood "growti industry," oil. Take the contrast
between trading
expansion and capital investment on the one hand and net
earnings
on
the other, of the representative world-wide
organization the
RoyalDutch-Shell
group. During the past four years £800 million
capital purposes, for exploration and production and
capital plants; total sales have increased by 30%;
capital and retained earnings by almost 50%. But net income has
risen by only 10%, with the rate of net
earnings to capital em¬
was
spent
on
refineries
,
and
ployed in
"In
the
probable
light of information
that
anything, be
predicts in
of world
the
future
annual
energy
of
at
capital
report
1954.
for
it
present
appears
expenditures
will,
Predicting that
the
the next 25 years will double, with
over
This
years.
finding
in¬
an
con¬
phase of the
every
barrel of products has risen considerably in recent
per
is
trend
new oil
attributable
to
the
ever-increasing
cost
of
to rising costs of capital goods, such
reserves;
increasing
cracking
catalytic
a
higher
service, which frequently requires provision of extra
be
sense,
regarded
prospects of any
to be
mean
as
cost of
a
in
on
true
does
Such
("Shell's
Modest
Pearl,"
May
14,
1955);
"It
desperate hanging-on to shareholders' funds for
a
to
as
be expected."
can
question about the nature
some
profit in the world of business.
funds
offer
the report, the Economist of London offered
.
.
.
One
of the
investment precepts used to be that a company could
with
not
expenditure is
maintaining the business than
self-preservation, but it does raise
of
income.
which added return
on
interpretation
does net
therefor, much of the capital expenditure
defensive and consequently
great increase
Ccmmeriting
this
as
treated rather
investment
new
plough
if
back
its
earnings
were
classical
be entrusted
growing
at
a
Impact
bread and
tied
to
earnings, not
been
holding
disbursed
with
an
as
is
based
on
dividends
the
will
value
be
Sound policy
premise
reinvested
continue
to
be
as
high
as
on
on
the reinvested
the
capital
that
by
advantageous return to the shareholders.
customarily assumed that the return
ings will
the
It has
earn¬
previously
existing, and that hence the earning power for the common stock
will
inciease in
if the
the chemical
in
proportion to the compound
a
interest
curve.
lesser rate of return, or
But
(as in
industry above cited) the profits don't increase at all
drastically sabotaged!
channeled
To
ing phases have been marked by
certain groups which showed re-
into
these
date
Sdng Suring tta
sorUo
20
holders
ing
their
shares
capital
they would have to
profits.
Despite
pav
<2) Decline: 1946-49, resisted by
oils' utilities> defensive stocks,
(3) Advance: 1949-52, led by
oils> chemicals, electronics, tex-
taxes
their
on
fart
the
st°cks'
because
gains
that
by
(1>
co"su,mer and serv'ce industries
a."d, low-prlced and speculative
stock-
t'-e whole unwill-
on
large
whose
and
years
are
sell
to
the
reappraisal
a
market:
its
recent
Ai
q?
T
iw
J
sswjwt-' —*•
foregoing picture
was.one °f the most of the issues were actuallv selling
* fP ® years in a generation, below their 1946 highs. Moreover
t at it is
is vastly oversimplified, but it
does show that with the exception of the more or less new
«r'
.
S
Pt
wel1
aS
as
stock-
it would be
over,
to
lous
e
ways
point out the variety of
which large profits could
(or were) made during
in
been
ave
had
risen
only 36.5%, and 38.2%
Obviously the
the average level of stocks in this
latter category was 33%
lower
than in 1946.
(5\
Tlle
enj.jre
rjs
from
tqw
"growth" industries, each major
which has been a leader
during an advancing phase has
group
thl coSeVaUoTof foemeStofSthl lo date has accurred without the usually been dormant during the
Dhennmena
lh£h K'.. distin- stimulus of inflation.
S- ,•
next advancing the only major
phase, and vice
p
which have
versa.
Today
past year's market
other periods of rising prices
from
and which
consequently
have
may
•
•
important bearing
the fu¬
on
ture.
,
t
the re¬
which has
sense
confidence
characterized the bull market from
1953
date
to
been
has
realistic
a
political.
of view
point
,
jor gr0(lps which1si nvcKfailed
have i
i
assume
market leadership in
1»4
rv
which
.
Al
21
over
UVCI
,
the
70%
single
has
annnpvc
great
a
Should they show dynamic
gence.
as
Continued
10%.
there has been, of course, no ex¬
the
observer could
neutral
truly
We wish to
announce
the
that both
in close agree¬
opening of our
point out convincingly
political parties are
ment in endorsing a system which
is frankly socialistic—at least by
standards of a generation ago.
It
is said, however, that the market
has
risen
under
a
Republican
Administration
ministration
that
because
is
Ad¬
favorably
more
DEPARTMENT
CANADIAN
enabling
us
and
to procure immediate quotations on,
execution of orders for,
Our
all Canadian securities.
disposed toward business than the
Democrats
would
been. The
have
has certainly
in
the
been
past
more
pleased to furnish you with
research staff will be
two
than at any time since
op¬
years
(2) Perhaps
as a by-product of
political climate, but more
probably as an expression of faith
following "the government's suc¬
the
cessful
interference
the
in
business recession" there
been
a
on
all
Canadian
securities.
Your
inquiries
are
DIRECT
1954
invited
—
no
charge
PRIVATE W1RZ TO
—
no
obligation
CANADA
has also
the economic
over
the
come
information
noticeable recovery of op¬
timism
For
complete
1930.
in
first
the
since
time
street
has
future.
1946
t^e
Barucii Brothers & Co., Inc.
apparently
to believe that the
economy
INVESTMENT
SECURITIES
Js dynamic and that business ac¬
tivity is
more
than
decrease
—
ps
a
likely to increase
over
result
the
of
next
44 Wall Street
New York
HAnover 2-2244
5, N. Y.
few
vigorous
.
'km
■
T
21
on page
pectation of a return to old fash¬
ioned laissez-faire capitalism and
t
«M|
rail"
equipments. Even now the
fjrgt
two
0f
these groups are
showing
strong signs of emer-
over
been
not
as
..
road
advanced
reaction
-
~+!-,«
Indus,
.
there
any
UUllUg
Dow-Jones
v,
1942
rail-
advancing phase since
st.ppls
and
are hie c°PPels> steels and
during
months
1IIUIIUIO
n
.
,
(a) JLJI
In
have
of
.
to
.
covery
.
technical observa-
A
the
guished
years
spite of the plough-back, sound investment expectations surely
become
now
are
enormous
sbs7 j; uffusa
:
man
reinvested earnings show
for
come
stock
timistic
Investment Policy
specific implications for today's investor.
long-term
company
on
are
of
by tiles.
vis^hr' ^ pres1e"t P°sition vis-a- trial Averages stood °ateS425 "or
Decline: 1952-53, resisted by
future prospects.
prospects
°my and lts in the the highest level reached "b,ue chips" and 1953 to date, led
double 194g bu]1 mgrket
(5) Advance: defensive stocksI
average price of all common stocks by "blue chips" and defensiv~
cles
unsatisfactory defensive expenditure situation has both
appear 10
separated
by
two
periods of
broad general decline.
The advancing phases have been notable in that only about half the
issues
have
participated during
each rise.
Similarly, the declin-
actively
political climate in financial cir¬
higher late compared with the growth of its resources."
This
has
the
of
From
"[sic] In this
to
ago
years
beginning to gain popular acceptance.
Clearly, in my opinion, the
ime
mi'ht appear to
have bought exclusively the markable resistance. Here is a
"e c lips'" Precisely those com- brief summary of the period:
of
two
began in
which
rise
1953
£l?
little
an
equipment."
is
r^eardfnt^lhe %%£
(1) In its broadest
as
reforming units; and to the demand for
and
standard of
of expensive refinery plant, such
use
^tt1
w
last
as
ships; to the public's demand for higher quality products, which
entails
WnHH
ability to control business
depressions
which
would
have
been thought almost ridiculous as
as
the
September
increased
however,
been
.
tinues: "The capital expenditure
necessary in
industry
if
rise
creasing proportion to be contributed by the oil industry, it
oil
able in recent months). -
ti
higher than in the recent past," the company
even
its
available
levels
nf
ment's
decline from 18% to 14%.
a
end
Theories
of
implications
stock.
common
Business sentiment is op
the
was
Considering all these factors to-
gether
institutional funds
new
have
which
last
winter.
hope
true
phenomenon,
volume of
B. K.
bright Reac¬
tion"
the
obscured because of the
timistic
Earnings Deterioration
which increased risk is
unin¬
years,
public
the
speculating heavily in the
market (although the first in¬
dices have turned less favor-
oepiemDer,
migni
represent the first phase or leg of
a
bull market which began fri'
lors
for
the
leading stocks in 1953 rather than the third phase
stable industries over some of the of a market which began in 1949.
more
speculative but inherently On the other hand, when one
more dynamic issues.
To the ex- studies the price behavior of the
tent that this condition has convarious industrial groups over the
tinued to prevail, it would appear entire
period which begah in
to indicate the initial or recovery
1952, it would appear that there
phase of the speculative behavior have been since that time three
cycle rather than the final stage periods of broad general advance
set¬
stock
back,
related
that
dicated
of
matter
a
p o r a r y
some
necessity. This stems from the really
defersive nature of much spending that is set
up as a capital asset. Too
often, it seems to us
as an investor
(not an accountant), the capital
improvement is a profitless expenditure made
to have incurred
more
as
not
,
turned out to
recession
to
related
as
odd-lot pur¬
to odd-lot
sales,
and customers'
debit
balances have consistently in¬
and
economy,
interest
volume,
daily
chases
developments.
,
.
in(-„
from
the
sucn
expenditure may
not in fact
affirmatively constitute a burden¬
us
"
growth within the economy itself
psychology rather than through the agency of
than economics and by the time government or military spending.
business showed tangible signs of
4•
(o) Th^ro has been a continuing
there Km,
recovering
preference on the part of inves-
fallacy in
what
actually
general
10%.
over
(c) Short
concludes, if present conditions persist, the rising stock market
trend should continue, with reactionary periods following
The 1954
investment (rather than
accounting) concepts.
First, skepticism is justified as to whether, or
do
move¬
Discusses present position
of the stock market in relation to the
to
obvious benefit to the shareholder.
Eut this pinpoints two areas of
at
different period of advancement.
a
the current market price has been
the company's worth — to the
as
added
the recent history of stock market
surveys
market leadership of various
groups of securities.
Points out, with the exception of new
"gnwth" industries, each major group of securities has had
realistically one of the factors most commonly cited to emphasize
tie good values
available; namely, the earnings which have been
"ploughed back" into the business, via capital expenditures.
Thus,
it may be
strikingly shown that within the
preceding few years alone a sum approaching
thus
Thurliw
Mr.
ments, and notes changes in the
INVESTOR BOON OR BURDEN?
It
5
(269)
*
t
*
*
*
W
1 *
4 i" «
*
'
1**1'
i
*
*
.
f
*'*
I
\
*!
6
The Commercial and Financial Chronicle
(270)
Charting Our Financial
62.3
212
o4.1
3,2
2.3
3.8
(billions of $)-_ $253
'$298
$377
After commenting on the
$465
$586
ing the level of the stock market, Mr. Bkibtreu
Individual
taxesi
Total
U.
income
S.
$353
latter
(a)
biles,
b
weeks old, and
like
is
the
e w
good
captain,
sea
we
f
a
balance of the
year.
The
past
usually serves
as
a
guide
the
towards
future.
Frank
M.
Cryan
With
this
thought
i
uopermost
minds,
our
look
let
the
at
take
us
first
six
n
of
months
1S55, during which we have
seen
records with
index
and
the
hitting
high of 138
new
a
Reserve
income almost $300
personal
billion
Federal
most
of
economic
every
new
highs in
prosperity.
the
barometer
this
tidal
wave
The confidence of
has
people
they have
has
self in
already
reached
all-
an
in
I
economic
high,
under
the
ident Eisenhower.
tional Product
in
July has climbed to
rate of $375
the
same
$371
of
period
of
last
of
year,
The second quarter
corporation
capital
running
were
close to $30
the
annual
an
billion, compared with
billion.
1955
lays
tc
The Gross Na¬
(a statistical term)
forecasting
at
a
the
I
am
"how
is
of
have
setbacks, such
it is
as
backing
second
rate
of
Commerce
Moreover,
optimistic than
the long-term
Issue
for
more
forward
in¬
—
to
abundance of everything to
an
wants.
our
now
Americans
participating
in
corporate profits through the buy¬
ing of shares in the stock market,
outlook
with
trend
of
our
Dividend
half million additional
a
believe
the
list
of
stocks
71 %
4.40
6.1
40%
Tobacco
merated above embody all of the
characteristics which the investor
2.50
6.3
looks for in
5.5
38%
Storage
Battery
56
1.85
59
2.50
5.7
37
;.
3.00
1.75
4.7
31 %
2.00
44
2.00
41%
2^50
5.9
_
__i
Liggett Myers
1.00
6.3
1.50
4.7
ital
2.00
6.2
missed.
6 00
5.1
117
gain
Life
tax
rates
have
been
Insurance
65%
4.00
84
5.00
5.9
The
47%
3.00
6.2
fertile
McCrory Stores.__
15%
1.05
6.5
National
23
1.00
4.3
of the need for life
insurance, be¬
Louisville & Nash RR
Mesta Machines
;____
Distillers
N. Y. Chi.
& St.
L.
Rway
charts
sidedness.
If
,
sales.
United
field
Growth
States
for
Prospects
remains
life
a
insurance
Most everyone is conscious
My
not
overpriced is based
following considerations:
We
(1)
in
tion
before.
kept
3.00
73
66
3.00
4.6
2.00
5.6
families
Republic Steel
46-%
2 50
5.3
them
that
are
basic
com¬
could
not
production and
fears
and
afford
wages,
concerns,
speculators
momentary
seem
to
con¬
-
my
cause
World
krw
is
it
constructive;
because
it
is
war
to
permit the Western
raise the unbelievably
standard
of
livin*
of
most
5.3
crease
5.3
regularly ever the years.
Ten-year prospects appear bright
1 80
46
indeed.
and
Virginian Rway.
for growth
43%
2.50
5.7
field
24%
1 00
4.0
Life Insurance
49%
2.50
5.0
plies
may
an
always looking
the life insurance-
<are
—
provide
one
answer-
Investors, Inc.
opportunity.
sup¬
supply will overflow into
less
favored
issues
where
the
bargains (compared to the
chips) are still available, for
instance: Allied Mills; American
many
blue
Fuel
Colorado
Tobacco;
Paper, and.
Pepsi-Cola; St. Regis
Socony Mobil Oil.
Tu
1
words, I
other
in
our
despite
upside,
the
and
fears
still see
can
activity on
a
broad
security markets on
continued
front
Iron;
&
Cable; National Theatres;
General
which
of
innumerable
my
brothers.
professional
views
Thece
personal
my
nervousness,
my
with
share
based
are
un¬
on
thinking, because I do
consider
charts reliable for
orthodox
not
anything
comparisons. I am
foretell
b1 it
also aware that no one can
and
nsychologv
mob
mass
thinking will produce, quite
from the fact that we also
risks
the
face
changes in
material
of
aside
political picture both at home
and abroad.
In
business
our
ac¬
are
we
customed to being tossed about on
of
sea
a
do
can
uncertainty, the best we
is to analyze things ob¬
jectively
as
well as we know how,
and to have the courage
opinion.
our
of
muqh
a
the
that
to follow
it is so
commonplace that I
Although
it. let's not forget
hate to mention
key to final success in
is the same as it al¬
investment
ways
Be selective, stay
has been:
sufficiently close to shore that no
storm can capsize your ship. Many
people have made a great deal of
borrowed
by trading with
money
funds but over the years
servative
the
has
trader
the con¬
lived
to tell
tale.
Joins Broy
even
if
we
have
to
finance
this
expansion of activities with
credits, parts of which we may
Staff
(Special to The Fin*ncial
SAN FRANCISCO,
should
1.60
Investors
the ample
investment generated by
is
level, life insurance sales will in¬
5.5
.to sell,
owners
money
destructive.
5.1
5.0
reluc¬
of the
aware
or
5.4
4 00
all
are
of the share
protracted period
3.00
57
public trading interest.
lack of
unconsciously visualize
of peace. In
opinion, peace is bullish be¬
sciously
a
in
2.00
*
3.00
the
wages
2.00
391/2
73%
W. Woolworth
handle
to
peoples—amounting in the aggre¬
of millions of
children. If we
can contribute to this elevating of
standards, our factories and farms
could be busy for years to come,
59
F.
con¬
20 years ago.
Given a con¬ gate to hundreds
tinued stable or increasing income -men, women and
United Fruit
Union Tel
never
is
Investors and
despite
their
(2)
alike,
40%
Western
has
money
with the increase in
in the hands of the public.
Peace
35%
serious
day it highlights to me a
the
pace
security. A high level of purchas¬
ing power makes the acquisition
of life policies possible for
many
39
the
the price
goods
(which
cost more to make) and the price
of stocks whose supply has
not
solely
5.5
29%
on
manufactured
3.00
U. S. Plywood
U. S. Playing Cards.__
are
kind of infla¬
which to my
world
More
because their
53%
393/4
a
needed
Phelps Dodge
__
in
the
knowledge
bearish
Mfg.
are
this country
educational
Reading Co.
gyrations up or down on minor
news,
hardly affecting their in¬
value, proving a lack of
public participation on a broad
basis. When a stock like Dupont
can
move 15 or more
points in a
what
theory that there
own
cause
Standard Brand
a
good many stocks which are
a
6.1
Scovill
had
have
thing of the past.
5 6
aggresive selling plus the
influence
of
social
this
trinsic
the surface,
on
we
selective market and that the
days when "The Market" went up
or down as a whole are largely a
very
3.50
Timken Roller Bearing
20th Century Fox_____
find that
will
what
little behind
a
apparent
so
3.00
of
few
I
look
we
seems
57%
_____
climb
upward
pattern that is shown in the daily
picture is disturbing by its one-
53
Pullman Inc.
They all show
leading, due to their make-up, is a
well known fact, because even on
days when more stocks declined
than advanced, .the curves on the
charts went up. Nevertheless, the
Norfolk & Western
Philip Morris
Dow-Jones
the
of
sharp
steady,
money
6.1
these
witness
we
already reflected in a
stocks
which
suffer
sharp'
We
starting in 1953, and accentuated
since May of this year. Only at
rare intervals, such as in mid-July
1955, has hesitancy appeared. That
these
charts can be quite
mis¬
of
32 %
Kennecott Copper
the
most
16
think
I
situation
tance
consumption are in fair balance.
Hence, the lesser buying power of
the dollar is being expressed al¬
31%
Greyhound
Gair, Robt.
Green, H. L
stocks.
in
"stagnation"
call
might
has largely for tax reasons. By the
unanimity of same token, if the price appears
opinion cannot be relied upon and too high and the yield too low, the
is frequently wrong.
/
investor, institutional or private,
The reasons for this fear com¬ hesitates to
buy. When and if this
plex are not difficult to find. All "stagnation"
becomes more ap¬
we have to do is to take a glance
parent, I believe the demand for
tion
tracted small investors and oppor¬
tunities to enhance capital at cap¬
so
is
modities do not reflect this infla¬
4.5
Flintkote
high and yield so little
that their prices reflect more of a
scarcity value than anything else.
I, therefore, believe I can see that
within a short time, we may have,
what for lack of a better word, I
gone
Experience
country's
business;
being increased, but
The Security
I Like Rest
have
chips,
blue
that such
me
stantly
Continued from page 2
6.3
Fruehauf Trailer
stiff."
shown
seen
6.4
43 %
__
1.40
31%
Co
3.5
51%
Dresser Industries
.60
21%
Cream of Wheat
6.0
chips.
53
2.50
18%
RR.____
2.00
41%
__
"little" blue
in general
stocks,
so-called
the
"The
Street
enu¬
$4.00
ver¬
e
nacular,
still
People buy stocks for safety of
income and yield.
I
Yield
ship.
your
Certain
(3)
uieiutrcu
scared
new
principal,
t h
use
we
have almost eight mil¬
the
level
prices.
To
of
Jacoo
knowhow
our
$73%
Refining
Bridgeport Brass
Burlington Ind.
City Stores
Electric
move
investors coming in each year.
growth
Recent Price
Atlantic
Deere &
provide
improve
We
ever.
to
seems
is equally favorable in view of the
American Chain
& O
se¬
the
as
prospective
Allis Chalmers
C
to
supply
half of this year, is in my
more
ac¬
peop1*—a faith strong
our
to
for
filling, yet the outlook for the
opinion,
up¬
bv the insim^^uitable
grow—to
tem¬
some
attention
dividuals
%
American
assured
enough
and
strong
very
The future of America
b®
the
fmth of
porary
second
as
present
at
the
well
as
and other averages.
chips"—
is not yet within sight. While
may
in¬
of $10 bil¬
projections.
for
a
market
same
lion
out¬
billion and according
Department of
last?"
we
potential
trend, particularly in the
companying list of high yield
opinion that the end of this spiral
true that
re¬
ward
Sight
in
big question
it
can
bank
curities that have not, as yet, had
Spiral Not Yet
the
Now
long
for
half cf this year
tools, textiles, etc.
the
progressive administration of Pres¬
basis
result of these
a
am
"b'ue
time
must
commercial
a
to
the
present pace
a
As
1930.
share
Reserve
Federal
esti¬
Strong Upward Trend Forecast
spending spree; automobiles, con¬
railroads, machine
of
up
viding
struction. steel,
End
the
its
of
ability
about
Experts
money.
doubt-
are
1
u
market
maintain
crease in
money supply
lion to $12 billion.
light through the first half of 1955.
During this period, volume on the
New York
Stock Exchange was
lines
sell
to
by some $2 billion in the
second half of this year, thus pro¬
the stock market, and con¬
all
have
serves
tinues to share the economic spot¬
Almost
f
doubt, put a rather severe
on
the Nation's suoply of
build
the cold war.
manifested it¬
in
temperature
and
and
now
addition, the Gov¬
no
mate
possible change
the
and
between
In
the
of
i ng
condition
the
pending private demand for credit
of' wage in¬
current round
the
creases,
are
us
c o n c e r n
piled
extraordinary tasks of the
U. S. Treasury, added to the im¬
control, such
no
of
The
loanable
During the past six months al¬
set
cash
which
at this time.
Practically all
plants
continue to
new
new paper to
replace issues maturing this year.
of
methods
unanimity of
most professionals
our
will
capsize
storm can
apparent
$20 billion worth of
Federal
the
various
in
ernment
neriod in
no
in Wall
apprehensive
Christmas.
budget and tax
while
and
has
lion
an
billion,
great upsurge is
the heaviest since
annum.
per
ment
be selecti/e and stay sufficiently
to
experienced
never
Treasury Depart¬
for approximately $10 bil¬
"applying the brakes'—neverthe¬
less, there are many factors over
of
have
I
as
Spending
for
equipment; will
will,
levy
This
peacetime economy smash all
our
policies,
Reserve
at
ran
$40
crop
On too of all this must be
in the arch¬
arrow
of this
bag
the Government's
as
casual
a
Another
1954.
ery
about
above the same
16%
or
of
rate
annual
for the
course
earnings
corporation
financial
finance
to
year
the need of
quarter of this year,
so
years
increase.
record.
In the first
must chart
our
Street
opinion among
the
of
and
The latest
homes, etc.
new
new
a
almost 50
my
such
(c)
figures available place consumers'
credit at almost S32 billion, which
t
In
movements;
are
half of 1955 is
u
close to shore
|
boost their balances in the second
spending record sums
for television, appliances, automo¬
People
Cautions, however, that key to
the upside.
on
inventories for the
up
(b) Farmers and prccessors must
tinue.
it from
second
see
in investment is
success
holds there are
many
rities market
half
ship has sufficient draught to keep
The
still
professional apprehension concern¬
stocks which are not overpriced. Says he
continued activity on a broad front in the secu¬
good
a
Business must start borrow¬
ing to build
corporation capital ex¬
Every good "Skipper" takes oc¬ "survey,
casional soundings to see if his
penditures are expected to con¬
the shoals.
can
year a
in bank borrowings can be
Fall and Christmas trade;
on
still
the
of
part
substantial increase
antici¬
pated for the following reasons:
present
& Co.
Members, New York Stock Exchange
(alter
the
for
As
Stock Exchange
York
Senior Partner, Abraham
a
for remainder of
going
Governor of New
output
(billions of $)__
financial
year, Mr. Cryan reviews recent finan¬
cial data, indicating what he calls "a spending spree." Says
big question is, ''How long will it last?" Holds end of spree
is not yet in sight, and the long as well as the short term
prospects are favorable.
Stressing need, of taking soundings in charting
i;
19:5
137
72.2
(millions)
Co.
By JACOB BLEIBTREU
i«m;r>
102
Employment (millions),
Unemployment
Partner, McLaughlin, Cryan &
What's Ahead?
Years
Now
Members, New York Stock Exchange
course
Next 20
(millions)—
Population
By FRANK M. CRYAN
i
as
The
Course For Rest of 1955
in the
-O'
may be seen
projections:
economy
foilowii.g
Thursday, July 21, 1955
...
Ferrman
with
has
The
Chronicle)
Cal.—Victor
1X0
Company,
Sutter Street, members
Francisco
affiliated
become
Broy
of the-San
Mining Exchange.
Notvell Adds to Staff
(Special to The Financial
-
SAN
las
Chiontcle)
FRANCISCO, Cal.—Doug¬
McConnell
ultimately lose, we still would
create a great measure of pros¬
nected with
perity for ourselves and others.
400
A.
has
become
con¬
R, Nowell & Co.,
Montgomery
Street.
Volume 182
Number 5448
The Commercial and Financial Chronicle
...
(271)
Illiteracy—A
Menace to
Let
"Deficit
Take
»
most
is
fail—for
not
us
Termites"
Over
if
in the next
election, it
may
be too
late thereafter to. save wnat is left
By ORVAL W. ADAMS*
Executive
of the most
Vice-President,
being
Mid-western backer, in commenting cn the vast power given
by universal suffrage to a largely illiterate electorate, points
out some prevailing economic
fallacies, among which is the
"disease of inflation." Urges an educational
program by cus¬
.
time,
economic
dollar, and
with more vital consethan any other in our
race
a
pass.
*
/
"I
admonish
anchor."
no
oi
guard
against
sufan
and^n°co^sHdliterate
?v
cognizant of its
not
to
the
electorate
risk
of
of
of
porlunitv
of
Santa
to
customed
exposed
to
the
deficit
to
and
upon
to
in fact it is.
the
that
is
individual
an
distinct
an
lar
clubs
in
utter destruction
Now,
as
from
of
of,
iron
of
our
is
it
not
as
is
it
be
look
on
which
We must
insurance
to
rec¬
and
men
prime
it
savers
in
hold
the
united
true
an
safe
the
voting
and
interest,
within
I
the
power
to
and
to
thmr
build
the
save
rocks
of
build
that
"anchor."
able
of
the
into
fact,
it
is
to
the
bankers,
most of
as
sets
excep¬
faction of the amount
lost would be adequate to pro¬
program
to
eliminate the disease.
Agents
of
the
by Mr. Adams before
Beneficial
Life
Company, Salt Lake City, Utah.
July 20, 1955.
This
announcement is
neither
an
The
offer to sell nor a solicitation of an o ffer to buy any of these securities,
offering is made only by the Prospectus.
inflation
anticipated
by
will
McLean Industries, Inc.
those
not
affected.
190,000 Shares Cumulative Preferred Stock,
The painful experience which is
which
necessary
and
place in
economics
of
understood
not
the
by
be
take
must
If the
95,000 Shares Common Stock
were
(lc Par Value)
situation
the
fat
voters
true.
If
they only
Cfercd in Units each consisting
knew, the citizenship of this great
painful
drfation
and
$3 Series
($5 Par Value)
7er to restore economic
o~
sanity, will inf'u°nce votes.
T referred Stcck, .f 3 Series, and
v.
hich will not be
of one share of Cumulative
one-half share of Common Stock,
separately transferable until October 20,1955;
consequent
recession, in order to restore
eco-
fnomic sanity, which would be be
on'y
way
to
"lptform for
insurance to
construct
a
nrw
save
already
spent—there
ucation
a
Price $51 per Unit
soimi
b^innrng, for
what
5C %
—
"The
is
<
little
before the
is
left
Plus accrued dividends
of
on
the Cumulative Preferred Stock,
$3 Series, from July 15, 1955 to date of
delivery.
depreciated
time
is
far
remaining,"
the
Insurance
Copies of the Prospectus may be obtained from the undersigned only in states in which the undersigned is qualified to act ds a dealer in securities and in which the Prospectus may legally be distributed.
election,
nex«
and the
bankers—the unofficial custodians
of the
task
White, Weld & Co.
savings accouts of millions
—have
address
Dean Witter & Co.
■
here
us
The insurance companies
*An
'■
•'
dollar.
for the past 20
educational
Higginson Corporation
G. II. Walker & Co.
Paine, Webber, Jackson & Curtis
i
work-
inflation. A
an
Lee
Kidder, Peabody & Co.
them¬
deflation
anc* * mean hme remaining for ed-
mote
Hornblower & Weeks
Glore, Forgan & Co.
>
a^ed—
defend
years, our savers have lost part of
their substance to the discas*4 cf
so
Share
the-nensioner,
when
cruel
Repeating
by year, with
tion of two years,
page
incorporated
dofationarv period after 20
a
the
The Disease of Inflation
Year
A. G. Becker & Co.
to
a
tremendous
perform
educational
in the
transition
period from inflation to deflation.
July 15, 1955
before
world-sta-
on
White, Weld & Co.
country
would
be
willing
and
if .anxious to *o through a period of
believe, too, t^at it is
our
any
Ccfpies of the Prospectus may he obtained in any Stdte in which this Announcement
is circulated from only such of the underwriters, including the undersigned, ds may
legally offer these securities in compliance with the securities laws of such State.
Statps
would
would
of State from
inflation.
as
that
say
control,
t^ey
that
to
United
informed
"anchor"
Ship
is
and
Continued
System,
money
in
saver,
And
would
believe
Price $23.25 per
That being true, the economic
suffering that will take place dur-
for
must
putting
suf er alike,
years
savers.
I
money,
know from the early 1930's."
be
duty to
build the "anchor" bv bringing the
facts to
the
knowledge of our
the
ican
two
c—ppv-fbi'-f— R
when,
ers,
>
robjng
our
ever
or-
stupendous,
a
p
businessmen,
whom
base their actions.
State now more than
must be anchored to honest Amer¬
Common Stock
a
the
ma¬
terials, and
money
brought us
through that crisis.
The Ship of
General
Reserve
in.
c^rffy,
people
bankers
UP
tnan
a
workman,
least
selves.
to
information
ognize that
recognize
retired
those
the
to
educator
American
sound
must
less
be
—
i<=
be
pockets
the
what is
men,
to
robbing the
economy.
obligation?
Surely when
consider the importance of a
the
submarines,
Men, machines,
Kroehler Mfg. Co.
....
our
posit'>n in the premises—what
to
the
in
so.
II,
planes,
a
Federal
seems
the
to
our
that
It
*av-
and
offer to sell nor a solicitation of an offer to buy any of these securities,
offering is made only by the Prospectus.
present Adminisattempting to restore
"Inflation
as
under
lead
can
we
our
I
216,828 Shares
the -door
at
In
will
money,
the
that
tax
a
instead
insurance
dollar
an
The
d politically hazardous
process.
Many of these million^
of savers are not aware of this
fact so ab'y stated by Chairman
Martin of the Board cf Governors
tqX
is
sound
homes.
tanks,
destroyers.
Wars
possib'e
The
is
painful,
ac-
our
we
neither
program as would ?.e-
savers.
tration
something
operating
electorate
and
n_ar)p known to
rr^de
($5 Par Value)
there
sound
ac-
a
of
Election.
These three great
hands of an unin¬
the
uo
10
why the life insurance
years
corporate form.
formed
announcement is
remaining"—to provide dolliteracy education to our mil-
lions
nor-
additional tax
individuals
This
little
na-
financing,
bebeve
separate
forests,
.
has the deepest
"The time is far spent—there is
New-Fair-
return
a
corporation
a
farmSj
World
complish this great service to our
country, to our savers, and to ourselves?
customed to abuse of the principle
of the graduated income
tax, acupon
earnings by first cheating
of
tbpv
the
of you give any sound
educational
Claus.
before,
never
generation has grown up
customed
Not
knocking
any
reason
malcy to scare the electorate into
a; return to
the days of deficit
spending and inflation, with-no
thought for tomorrow.
A
try's
to carry
program
chance
Can
electorate,
surviving
effects
apnational
total
wealth, represented in the counfactories, mines, railroads,
out
intent of all those
reoo.u.i^.iS.
las(
an
Dealers who would misuse the
tural
educational
and ouitP P0ssibly to Pass
needed, for today
is
our
how
ers that the existing wealth, which
is constantly wearing out, cannot
falling for the false cries
those
double
cheat them
ganizations and bankers associaby demagogues 'tions should not promote such an
acting the part of
Today, as perhaps
is that "anchor"
a
proaching
would
rec-
.
cution
true interest,
own
misled
be
who
self-
interest
educated and informed
those
Present favorahle political
climate, would be to ignore op-
the
the
aroused
Orval W. Adams
industrious
the
a
in
in
O n 1 y
o
n.
.
interest in
sound currency, and who suffers
ten
J?
+
.
jncreases? the demands of governrnenf jnrrpqsej an(1 the
possibility
of rebuilding nrivate ente^^"^
diminishes.
Our savers should
well-meaning and largely forgot¬
-
"anchor"
•
before approached in
orded history.
You and I know how vital enlisted dollars \yere in the prose-
who
'*nto action
by
■
Now is the time to f°rmulate
reJosniz/that
the
the debt; that debt can onlr
be paid out of wealth-created
never
_hnn1H
an
il
etec-
torate.
pay
ishes, the control of government
Kv
1
them out of their understandings.
The very man above all others
else
than
"sounding brass and
tinkling cymbals." We have talked
among ourselves when we should
have been talking to our savers.
power
prahipnart
every
iraud—a fraud to
ulating strong resolutions for the
preservation of sound money, yet
such resolutions have been little
given through
to
daily
been meeting in convention, form-
thinking of the
frage
his
Although for years the custodians of the people's savings have
He,
universal
'
perpetrate against them
v
course, was
vast
legislation,
earns
laborer in this country to be on know that the national debt is
of their
"all sail and
who
of action of the individual diminin
prophecy made m 1834 b\
■7>niel Webster has now come to
gigantic spending for world rehabilitation.
was
forestall national
rru„
Stresses present need of a sound
stability of the dollar is threatened by
Long before the advent of graduated income taxes, Lord Macaulay warned that our Constitution
to
The
sanity.
warns
At
race
destruction.
people's savings, and asserts that the citizenship
of this great country, if they only
knew, would be willing and
anxious to go through a period of painful deflection in order
to restore
generation.
a
run
quences
todians of the
.
to
this very moment there is a
mischievous
man
-
priceless heritage ever
bequeathed
First National Bank, Salt Lake City
by
the
bread by his daily toil. A vast iuture production, by work and
^ajority of us live by industry, sweat in contrast to doles and subThe Constitution was made to pro- sidies.
tkis industry» to give it both
encouragement and security; but
The Present Importance of a
above all, security.
S und Dollar
All sound economists recognize,
Now that we are in the throes
and our savers should know, that
the most devastating cold war
as the national debt approaches Period of all time, the American
the national-wealth, the freedom dollar takes on an importance
do
we
and the Deficit Termites take over
Sound Dollar
a
the
Not
Let
Economic
7
24
8
(272)
Pharmaceutical—Bulletin—Bruns, Nordeman
Warner Lambert
Co., 52 Wall Street, New York 5, N. Y. Also in the same
bulletin are data on Northern Natural Gas and Fairbanks
&
Dealer-Broker Investment
Morse.
6,
Westinghouse
Recommendations & Literature
tin
& Co.,
Precisio.i
General
on
Corporation—Analysis—Bache
York 5, N. Y. Also available is a bulle¬
Equipment Corp. and National
36 Wall Street, New
understood that the firms mentioned will be pleased
send interested parties the following literature:
is
N. Y.
Electric
York
New
It
Union—Bulletin—Joseph Faroll & Co., 29 Broadway,
Western
Gypsum.
*
%
%.
to
Automation
York
Life
Aetna
Co.
Insurance
—
Memorandum
—
John C. Legg &
Broadway, New York 4, N. Y.
Housing—Analysis—Park, Ryan,
orandoum
ciates.
on
y ;
'yy.1 y...y
V /'-y.
Bancorporation—Analysis—William R.
Arizona,
York
Co.,
Staats &
sell
&
120 Broadway, New York 5, N. Y.
Meeds,
Corp.
36, N. Y.
& Co.,
Corp.—Memorandum—McDonnell
Celitex
120 Broad¬
The
Great
Oil
Lakes
will
Witt
Natural Gas
dividend
NSTA
OTPS
the
Pont &
current
or
Investment Opportunities in
rities
Iowa
Co.—Analysis—McLaughlin, Cryan & Co., 1 Wall
Dean Witter
45
& Co.,
&
Co.,
120 South La Salle Street, Chicago 3, 111.
McGee Oil Industries, Inc.—Analysis—Scherck,
Incor¬
Richter
Company, 320 North Fourth Street, St. Louis 2, Mo.
Inc.—Memorandum—Hirsch & Co., 25 Broad
Macy
4, N. Y.
&
York
a
Committee
are
memorandum
on
Van Raalte
indeed pleased
inside
make
to
ing
"ads."
commercial
in the National
Quotation Bureau Averages, both as to
performance over a 13-year period —
National
Quotation
Bureau,
Inc., 46 Front Street, New
York
4, N. Y.
Portfolios—Study of 10 sample portfolios—Harris, Upham &
market
Co.. l'>0 Broadway. New York 5, N. Y.
Resistoflex Corp. — Memorandum — Arnold
Broadway, New York 5.
Spring
Brook
Co.,
120
N. Y.
Water
California Company,
First
Feldman
Service
Company—Analysis-
Inc., 300 Montgomery Street, San
Francisco 20, Calif.
Shawano
Development
Southern
Riilwav
Orp.
Report — General Investing
Corp., 80 Wall Street, New York 5; N. Y.
—
Co.—Memorandum—Shearson,
Co., 14 Wall Street, New York 5, N. Y.
Southland
Life
Securities
Techbuilt
tion,
111
Trade
Co.,
115
&
^
Union
Homes,
Inc.—Analysis—Aetna
Securities
Broadway, New York 6, N. Y.
&
Trust
Broadway,
Engineering
McKinnon,
11
Wall
(New
York
City)—J.
Corpora¬
R.
&
Co.—Report—Thomson
&
Foundry
Gerard
the
from
on
near
or
bonds
addition,
of
are
by the
funds, imposts
secured
are
certain
offering
C.
with
have
Shelley,
to The
E.
Ball
become
af¬
Roberts &
Ilcmmra jfocttyities
Fourth
Street
to
offices at 409
in a se¬
engage
curities business.
be
dell
A.
Chronicle)
ANGELES, Calif. —Wen¬
Hutchinson has become
connected with Coombs and Com¬
pany,
of traders
position one way or the
the moment.
And ob¬
to take a
at
other
find little to stimulate
servers can
But after all it is
the dull summer season.
Must Be Puzzling
It
even
of the bigger fry,
some
underwriters
including
reports
current
from
seems
that
Joins Coombs & Co.
(Special to The Financial
general utility
market re¬
the
them¬
selves, are a bit befuddled by the
current conditions marketwise.
602 West Sixth Street. Mr.
was
previously with
Hutchinson
Fay.
DEPENDABLE MARKETS
©0., £lfl.
Sulphur Co.
in
the indisposition
flects
is the inference
from re¬
as the decision
At any rate that
which many people draw
cent
of
such
events
one
than submit
a
disband rather
a small tax-
to
group
bid for
exempt offering in view of the re¬
luctance of dealers to take on any
more
'
bonds.
recurrent re¬
ports of last minute "drop-outs"
among syndicates formed to mar¬
ket a given
issue or bid for a
piece of business. And sometimes
these
withdrawals developed at
Again,
Member
to
secondary
the
in
Financial Chronicle)
has opened
Hooker &
revenues.
Pan American
remains
bonds
Dullness
list
GEORGETOWN, Colo.—Forrest
LOS
Havana.
general obliga¬
tions of the Republic of Cuba and,
pledge
George
Forrest Ball Opens
in
construction work,
highways and streets
bonds
—
or
for
payment
in
of
more
or
the
of Cuba
its agencies
Republic
on the
Meanwhile the
of
Illinois Bell
buyer interest.
are
received
which
Co.
Colo.
Stein
J.
(Special
presently out¬
standing and offered on behalf of
Romenpower Electra Construction
bonds,
despite
easy
completed.
Co., First National Bank Building.
interest.
The
and
Street. New York 5, N. Y.
DENVER,
filiated
in
New York 6, N. Y.
&
been
offering.
Telephone
Cramer, Jr., Donald W. Kopf and
(July 21) $2,500,000
Republic of Cuba 4% veterans,
courts
and public works bonds,
due
1983
(payable
in
United
States
dollars)
at 98%
and ac¬
crued
day
huge oversubscription
the
recent
Co., New York, is of¬
&
a
at
(Special to The Financial Chronicle)
fering today
The
Williston
smith
has
It
since.
b.
Shelley, Roberts Adds
By Allen & Go. at 98
Allen
the
1001/32
though it has recovered a shade
Harold
Cuba Bonds Offered
down
sell
to
ago
recent
chiefly
f
backed
issue
two
or
Chairman
Broadway, New York 5, N. Y.
120
all
that
Treasury
That
B. SMITH,
question
no
the industry are keep¬
keystone at the moment.
Congratulations,
Pershing & Company,
one
Co.—Memorandum—Dallas
Co., Adolphus Tower, Dallas 2, Texas.
Bank
United
Insurance
Hammill
is
long 3s which are viewed as
Ralph.
HAROLD
rec¬
may
close eye on the behavior of
list, especially the
a
the
National Advertising Committee
parison between the listed industrial stocks used in the Dowover-the-counter industrial stocks
Scranton
ing
rolling. John Bunn, Stifel, Nicolaus
Jones Averages and the 35
and
There
sectors of
up
13
22
Watching Treasurys.
outstanding,
1955
to date we are ahead
rumors
St. Louis, reports that Chairman Deppe
& Co.,
Co.
Stocks—Comparison and analysis of
City Bank
City Bank stocks for the second quarter of 1955—
Laird, Bissell & Meads, 1?0 Broadway, New York 5, N. Y.
Over-the-Counter Index—Folder showing an up-to-date com¬
yield
of
We
Issue.
holders of
subscribe for 1,041,393 shares of additional com¬
mon, with "rights" expiring Aug. 8.
ord July
1954.
of
New York
used
honorable
members of such support as we
anxious
most
receives
half page "ad" for his
a
8.
Union
Western
(Edward D. Jones & Co.) of St. Louis is sign¬
Co.—Memorandum—Paine, Webber, Jackson &
Curtis, 25 Broad Street, New York 4, N. Y.
Electric Co.—Memorandum—Auchincloss, Parker &
Redpath, Land Title Building, Philadelphia 10, Pa.
Also
available is
our
Singer
Troster,
Convention
NSTA
the
advise
are
McGraw
New
in
the Advertising
Let's keep
Street,
City,
York
New
and from
Loew's
II.
Co.,
of
Troster,
mention this week for
to
porated,
R.
&
latter Aug.
J.
Oliver
Col.
firm
—
Montgomery Street, San Francisco 6, Calif.
Katz Drug
Company—Review—A. G. Becker
York
LIBBING
AD
7
Street, New York 5, N. Y.
Steel Corp. — Memorandum
New
Rubber
&
has
913,531
shares of its
equity. "Rights" on the
former expire Aug. 5 and on the
Co.,
Co., Ill
New York 6, N. Y.
Kaiser
Kerr
Tire
Goodyear
mon;
Japan—Circular—Yamaichi Secu¬
Co., Ltd., Ill Broadway, New York 7, N. Y.
Utilities Co.—Analysis—Ira Haupt &
F. L. Jacobs
bids
Junior
Southern
Broadway,
fortnight.
a
yesterday for a "standby" on its
offering of 373,689 shares of com¬
split candidates.
du
stock
Consumers Power Co. took
_
Co., 1 Wall Street, New York 5, N. Y. Also in
issue of "Gleanings" are analyses of Canadian
Producers, The Kroger Co., and a list of 40 stock
I
additional
than
Organization, 100 Broadway, New York 5, N. Y.
International
Nickel Co. of Canada Ltd.—Analysis—Francis
Conklin
shares
within less
than three million
more
of
Company—Bulletin—De
Chemical
stockholders of four
to
put
for
Nickel Co. of Canada.
&
could
the
corporations "rights" to subscribe
Also available is a memorandum
6. N. Y.
New York
International
of this movement, a
late stages of a "bull
market," is evidenced by the
series of current operations which
Kansas
way,
the sale of
from
scope
prove
10, Mass.
McCoy & Willard, 30 Federal Street, Boston
a
normal development in what
Co., 50 Broadway, New York 4, N. Y.
Uranium Corporation of America—New illustrated brochure—
New York 5, N. Y. Also available is a memorandum
City Southern Railway.
Cities Service Co.—Memorandum—Talmage & Co., Ill Broad¬
on
5, N. Y.
Laughlin Steel, and Republic Steel—Edward A. Purcell &
&
turning in a sub¬
are
way
requirements
equities.
Wall Street,
Steel—Analysis with particular reference to U. S. Steel, Jones
way,
on
York
backdrop, cor¬
toward securing at
portion of their new capital
stantial
least
Square, Boston 9, Mass.
Industry—Analysis—Calvin Bullock, Ltd., 1
New
.yy,"
yy. .yy
r ■
•
porations
boiling
the
with
stock market for a
Office
Salt
base level.
new
a
Meanwhile
Cement
Riverside
—
of
creation
groups
.pending ..the
_water"
,
Co., Inc., 70 Pine Street, New York 5, N. Y.
Co.—New views—Lerner & Co., 10 Port
&
Saxton
Analysis — Reynolds & Co., 120Broadway, New York 5, N. Y.
Cambell
Soup—Analysis—J. R. Williston & Co., 115 Broad¬
way, New York 6, N. Y.
Canadian Letter—Fortnightly review of the Canadian Securi¬
ties Market-—Newling & Co., 65 West 44th Street, New York
Stratton
&
distriburing
their
and
ers
"treading
30, 1955—The First Boston Corporation, 100 Broadway, New
York 5, N. Y.
Public Utility Common Stocks—Comparative figures—G. A.
Company—Analysis—Laird, Bis-
Electric
and
investors and investment bank¬
as
at June
borrowers as well
potential
with
New
Stocks—Comparative figures
Bank
.
Gas
.
Companies of
Trust
and
City
York
New
7, D. C.
Briggs
7
Y.
Y.
Banks
is
currently
and indecision,
of flux
state
a
market
bond
The
in
difficult
not
are
and the reasons
to perceive.
equities
of
case
York—Com¬
York Hanseatic
Corporation, 120 Broadway, New York 5, N. Y.
activity of 97 different companies—Atomic Develop¬
ment Securities Co., 1033 Thirtieth Street, N. W., Washing¬
Baltimore
•
Inc.,
\V-v—
.
is
market
bond
issue
new
literally dormant at the moment.
But that is far from true in the
parative figures as of June 30, 1955—New
atomic
ton
/■''
N. Y.
6,
Leading
Spring Street, Los Angeles 14, Calif.
Atomic Map, in four colors (revised)—Describing and locating
South
640
52
70 Pine Street, New
''
Japanese Ship Building Industry—Analysis in "Monthly Stock
Digest"—Nomura Securities Co., Ltd., 61 Broadway, New
York, 5,
5, N. Y. Also available is a memDelhi Taylor Corp. and Eastern Utilities Asso¬
Wall Street, New York
17
The
Mine—Report—L. D. Friedman & Co., Inc.,
&
'
Co.,
Co.—Memorandum—Kidder, Peabody &
Trust
Co., 1 Wall Street, New
Cohu &
—
5, N. Y.
Bonanza Oil
Company, 22 Light Stree', Baltimore 3, Md. Also available
is a memorandum on Hanover Fire Insurance Co.
American
Analysis
—
there
are
the last minute to the embarrass¬
N.A.S.D.
of
ment
Broker and Dealer
the
remainder
of
the
group.
Direct Placements
Bought
—
Sold
—
Material and Consultation
Quoted
Meanwhile,
on
Japanese Stocks and Bonds
Troster, Singer & Co.
HA
2-
2400
Members:
74
N.
Y.
Security Dealers Association
Trinity Place, New York 6, N. Y.
/
NY
1-
376
61
be
without obligation
BOwling
Head
Green
Office
9-0186
Tokyo
felt.
C.
announced
Broadway, New York 6, N. Y.
Tel.:
the
inroads
by direct placements
issue
DEMPSEY-TEGELER & CO.
3JA%
of
I.
Financial Corp.,
T.
that
made
continue to
it had placed
an
$50,000,000 of eight-year
promissory
vestors through
a
notes with
in¬
banking group.
Number 5448
Volume 182
...
The Commercial and Financial Chronicle
(273)
Co.,
No Sound Grounds for Fulbright Bill
Bates
Manufacturing
Co., ket as speculative and as being
Shops
and
Maine in a dangerous state in whidh the
Saco-Lowell
Central Railroad.
investor
other
To
Regulate Unlisted Companies
"Home-Grown and Home-Owned"
The
By RALPH P. COLEMAN, JR.*
tion
is
woven
carefully
supervised
industry
can
already
is
by
a
...
;
Contrary to commonly accepted
the Over-the-Counter
Market is not. a jungle of rank
speculative issues palmed off on
opinion,
the
and
how the
life.
corpora¬
beneficially
fabric
of
There
of
Ameri¬
lit¬
are
additional
throughout
try which fall into the
the
coun¬
cate¬
same
hand,
counter
securities are selling at
price-earnings ratios it
logically follows that the unlisted
market
is
NOT
market
a
risen
price-earnings ratio with many of
shot
v
listed
so
remedial
legislation. For a ran¬
sample of the price-earnings
pattern of the over-the-counter
tators
market
market
dom
I
^,In Oklahoma,, a portion of Sen¬
ator Monroney's constituents work
I
ful
the
of
20
of
them
are
selling
commen¬
unlisted
that
agree
So far,
over-the-counter
the
the
constituting
sound
stocks in the "Fitch Stock Record"
careful
Most
on
panies
valuation
com¬
of
bulk
fiscally,
are
enterprises producing use--
products or services, boasting
satisfactory dividend records and
selling at generally . fair prices
according to accepted yardsticks.
a
am; certain*: that- one
good!
market
have
leaders
chip" market
exchanges.
the
on
nitely NOT in need of immediate
and analyzed them from a pricesyndicate of earning^ ratio. The ratio pattern
of, these 50 securities shows that
metropolitan financiers. .
clever creations of
"blue
the
through with speculation and defi¬
analyzed approxi¬
For the most part, they are' mately the first 50 industrial and
"home-grown and home-owned" public ^ utility; over-the-counter
solid and substantial
industrial neighbors and not the
excessively and in reality
quite
favorably
on
a
compare
gory.
companies,
unlisted
have
to modest
serve
measure
thousands
companies
Mr. Coleman calls attention to the high caliber
~
tightly
into
economic
erally
self-governing regulative group,
of many companics whose securities are dealt in the unlisted market
Says most unlisted stocks are fairly priced, and points out
voluntary cooperation is 'better than compulsion. f. Holds
Fulbright Bill is a penalty on progress.
^
..
over-the-counter securities
paragraphs
typical over-the-counter
Editor, Over-the-Counter Securities Review,
Jenkintown, Pa.
Statirg tSie
above
indicate in small
Further, the prices of
stocks, while 4hey
obviously risen during the
current
bull
market,
have not
economy.
most
"get hurt." On the
if
most
over-the-
can
9
Progressive Stockholder Relations
BELOW
the 10; to 1 price-earnings
ratio;;
fop*such over-the-counter; cor¬ prime purposes that Senator Ful¬ 21
of them
are
selling between
porations as National Tank Co., a bright had in mind when he intro-<
duced Bill S. 2054 was that the a ratio of 10 to 1 and 15 to 1 and
the public by
leading manufacturer of oil and
only nine^ are ' selling above the
ruthless
and
gas equipment; Seismograph Serv¬ legislation should protect the pri¬
ratiao£o!5to 1.
In the present
ice Corp., a pacemaker in oil ex¬ vate investor; It is axiomatic that'
unscrupulous
investors may get "hurt": in the bu 11 market^this price perform¬
brokers;
In
ploration methods; and Northern
ance
ist eminently conservative
securities market when prices rise
Oklahoma" Gas Co.,
a
producer
reality,* the
and a source of assurance that the
and distributor of natural gas. In rapidly to a point where the stock
opposite con¬
is selling far above the accepted greatf> bulk y of • over-the-counter
dition is much
Oregon, Senator Morse's territory,
extremely
more the case.
f there
are
numerous
well-known normal price-earnings ratio of 10 securities^ are J still
fairly priced by. accepted stand¬
over-the-counter companies in the to 1. This 10 to 1 ratio, used by
An
o v e rards.
Particularly is
this
true
State's
basic
timber
w h elming
industry. security analysts for many years,
when it is. noted that many of the
These include Weyerhaeuser Tim¬ simply means that when a stock
percentage of
securities
sells at $10 it should earn about' so-called^-"blue;;- chip"
ber Co., world's largest
the total mar¬
grower
are
selling.: at far higher priceand processor of timber; Jantzen, $1 a share a year to be considered
ket
value of
a "fairly valued" stock.
When the earnings ratios—General Electric
all
unlisted
Inc., the famed swimsuit maker;
at 22 times earnings, duPont at
and the State's three largest utili¬ price of the stock reaches a ratio
industrial and
almost. 30 times
earnings, Dow
ties
Portland General Electric, of, say, 20 to 1 or 25 to 1, most
public utility
Chemical at almost 40 times earn¬
Ralph P. Coleman, Jr.
Pacific Power & Light and Port¬ analysis will agree that it is en¬
issues is rep¬
tering a speculative range of pos¬ ings, and RCA at almost 20 times
land Gas & Coke.
resented
by
sible overvaluation, a range that earnings.
companies wnose economic use¬
A well-known index of the fis¬
is full of potential danger for the
No Political Partiality
fulness, financial soundness, sales
average investor. Likewise, stocks cal stability of' a corporation is its
and earnings growth, and business
Turning to the Republican side that have a price earnings ratio ability to pay dividends through
ethics need not take second place
of the table we discern no po¬
of less than 10 to 1 are generally good times and bad. Many overto most listed companies. Of equal
litical partiality
among
unlisted considered to be conservatively the-counter companies have had
importance to investors, the overcompanies. In Senator Capehart's priced and in this sense offer a this reassuring ability for a great
the-counter securities industry is
Indiana, there is National Homes far greater measure of protection span of years. Over 175 unlisted
carefully supervised in its busi¬
Corp., the world's largest producer to the investor.
industrial and public utility com¬
ness
conduct by a self-governing
of prefabricated homes; Eli Lilly &
panies have paid dividends each
regulative group — the National Co., the top drug manufacturer
Most Unlisted
Stocks Fairly
year on their common stocks for
Association of Securities Dealers
and a leader in Salk polio vaccine
Priced
the past 25 years or longer—some
But
how
these
do
companies
treat their stockholders?
Do
provide them with current information about the financial condi¬
tion
the
of
the
them
upon
to en¬
intelligently
necessary
to
vote
matters which
duction
to
not
S. 2054
Bill
in
vestors
Great
in the
expressed
was
mentioned
are
in proxy solicitations?
ern
with
and
company
information
able
unlisted
con-
intro¬
that
in¬
companies
do
get the
"protection" that in¬
vestors in listed companies get in
regard to basic financial informa¬
tion.
While
theoretically,
conceivable
counter
that
could
company
it
is
over-the-
an
take
a
—
—whose record of successful oper¬
ations
is
recognized in all quar¬
ters.
High Caliber of Over-the-Counter
Companies
To
dramatically
more
caliber
the
strate
which is traded
this
make
I
would
personal
members
the
of
company
in the Over-the-
Market
Counter
of
demon¬
like
approach
committee
to
to
by
pointing cut several unlisted firms
which play leading roles in the
States represented by them.
In
Senator Fulbright's home State of
Arkansas these companies include
such
utilities
souri
Power
Co.;
Mid
South
Gas
Western Gas Co.;
Co., a major timber
Arkansas
and
Crossett
and
paper
manufacturer.
Robertson's
ator
of
Arkansas-Mis¬
as
Co.;
In Sen¬
Commonwealth
host of
over-the-counter companies; Dan
there
Virginia
River
Mills,
the
are
a
largest
Rhoads and
world's
textile mill; Miller &
Thalhimer
Brothers
department
in
stores
Richmond; the Camp
Manufacturing
Co.
paper
mills
along the Tidewater; and Planters
Chocolate Co. at Suffolk—
Nut &
to mention only a few. /
Delaware, represented by Sena¬
tor Frear, has such stable compa¬
nies
Joseph Bancroft
as
one
of the
the
&
Sons,
oldest textile
firms
in
nation,
and Electric Hose &
Co.
of Wilmington,
the
Rubber
nation's
den
largest producer; of gar¬
hose.
In
Senator
Douglas'
there is
Illinois,
a
legion
of
over-the-counter
tablished
es¬
com¬
panies ranging from G. D. Searle
& Co., the respected wonder drug
maker, to A. E. Staley Mfg. Co.,
the
soybean pioneer, which to¬
provide
gether
thousands
for
ment
Unlisted
steady
companies
of
are
development; and such local utili¬
There
counter /-areas.
Hanna
the
Co.,
is
M.
A.
enterprise
by Secretary of
Humphrey; U. S.
great
the
Treasury
maker of ARed Cross"
selling brand
for women; and Hoover Co., the
biggest producer of vacuum clean¬
the
shoes,
In
ers.
there
Ives'
Senator
of
are,
New
York
the
plus
ter
in
maker
the
course,
Co.,
office
of
as
publishers;
and
Optical Co., a
optical products.
by Mr. Coleman before the
Banking and Currency Committee
to Bill S. 2054
(the Ful¬
bright Bill), July »1, 1955. « in
opposition
portray
the
typical, established over-thecounter corporation as a home¬
grown, home-owned company,
provide fiscal
of
complete
of
poration,
S. 2504
of
the
announcement
same
the
leading
furniture; and
in
controls.
automatic
The
are
appears
not
as
a
being offered to the public.
matter
of record only.
$50,000,000
Utah
Zion's
Co-operative Mercantile Institu¬
tion, the Salt Lake City depart¬
ment store; Bonneville, Ltd., pro¬
potash
ducing
on
the
salt flats;
Supply Co.,
Fuel
Mountain
and
C.I.T. Financial
I
think
would
it
not
be
Corporation
Eight Year 3%% Promissory Notes
supplying natural gas to Salt Lake
City.
due
inac¬
July 15, 1963
curate to say
that Senator Bush's
prosperous
State of Con¬
very
necticut
the
is
most
"over-the-counter"
Union.
completely
State
in
with
one
exception, are
traded in the unlisted market.
are
the
Virtually all of the State's
utilities,
such
reputable
concerns
Direct
placement of the above Notes has been negotiated
So
by the undersigned.
as
Stanley Works, the "Tool Box of
the
Associated
World";
Spring
Corp., the foremost maker of pre¬
cision
springs; and Arrow-Hart &
Electric Co., a major
of
electric controls.
In
Salomon Bros.
&
Hutzler
Maryland, Senator Beall's consti¬
tuents
include
men
and
panies:
women
Noxzema
suntan
Drug Co., the
"Bromo-Seltzer";
Emerson
of
Chemical Co., maker of
the
renowned tea
listed stalwarts
Power
Sixty Wall
Boston
Street, New York 5, N. Y.
Philadelphia
Cleveland
Chicago
lotions; and McCormick &
and spice
house.
Maine, the home State of
Senator Payne, includes such un¬
Co.,
as
Central
Maine
Co., Bangor Hydro-Electric
San Francisco
state
that
I
to
the
and
with
do
not
unlisted
cor¬
type
that
Bill
regulate, that does
Continued
of Senator Bennett is not without
its share of unlisted firms:
data
reports
can
SINGLE
would
the
an
These Notes have not been and
This
I
candor
a
of
through
annual
material.
important, if not over¬
whelming, role in the national
As
Se¬
over-the-counter
stockholders
medium
know
knowledge
which
Taylor Instrument Cos., a pioneer
producer
just
Lomb
Senate
paragraphs
wide
companies
allied
100 years!
in¬
"Over-the-Counter
to
their
the
facts.
Review," I believe I have
fairly
extent
to
of
in
current
were
as
Construction
citizens.
the
♦Statement
a
Hegeman
magazine
leader
curities
refuse
reports
to Bill S. 2054 does not
with
of
be
theoretical
a
expressed
as
troduction
Editor
and
such
many others such as Roches¬
Telephone Corp.; Art Metal
employ¬
Lehman.
&
mar¬
position
square
"public
stockholders
mentioned in
connection with Senator Lehman,
companies
producer
Bausch
above
possible to classify playing
the behavior of the unlisted
as
attitude
its
activities
largest
reporting institution; "Time Inc.,"
in
The
long
its
Shoe Corp.,
who work for many unlisted com¬
Senator
If so, then it is
as
damned"
send
century
formerly headed
home State of
They
include
Dun & Bradstreet, the great credit
frequent
for
How, then, do over-the-counter
ties as Northern Indiana Public
securities
stack
up
against this
Service
Co., Indianapolis Water
Are
Co., and Indiana Gas & Water Co. price - earnings yardstick?
selling at abnor¬
In Ohio, Senator Bricker boasts most of them
mally high price-earnings ratios?
one of the most prolific over-the-
nineteenth
Dallas
West Palm Beach
on
.
ihey
page
28
.
10
The Commercial and Financial Chronicle
(274)
■
_W1
1m
■
11111 wm 11 aimimi
using c'ouble the amount of oil standard of living was achieved, like "democracy" and "free enterproducts that it does today. <
le replied: "By giving people prise" of giving the impression
*1
f1
IvtllVlCfriAlKT SllTTJPV? InP
All
1#ma vv j m
'
ra*v
Canada has shared in tnis sub- freedom to explore and develop that these things work by them-
l.ail
tlemand last
of 559,OuO
them tat the government
1/1 Afl A NfPIlP stantial postwar development witn suringbest abilities and by Ireas- of individuals. effort on the part
1 fi
selves without
double their
S
Dm
ami
VOllllllll
Olllt
■
>'our
»
MiVllV
barrels
executive
company
Today more than ever before it
is
neighbors
for
important
know
not just
needed
is
standing
to
Mutual under-
another.
one
be-
*■
tiru? living in
The
peace.
strength
the
It
is
in
how
on
well
Eugene £. Holraan
de-
peace
peoples
one
coun-
try appreciate
circumstances
the
Such
iicult
for
closest
they
together
assuming
similar
are
well
that
"Every
these
Among
social security and unempioy-
addition
In
insurance.
Canada s Increasin
Industrialization
-
Nor
substantially expanding tcawmy
does
not
necessarily cloud the
gradthat
accepted
It
that nations can indeed
become highly developed in the
technical
sense
without
losing
those priceless ingredients wnicn
make them good places for the
so
the
new
of evolution
conditions
without losing the
are
to
old values upon
cevelopment
To
believe, also tell you something
ahout the viewpoint of people in
the United States and give you a
basis
opinion
opini0n
It
My
company
•
this feeling of
me
brings.
human
eoun-
my
fu'ot,
c .at
enjoy,
we
we
puy-
are
more
economy
continue
can
.
more
Few
.
.
truth in them
™
AndCEx°Tndin
And Expanding
the
among
public
u
t
From t'me to time studies
1'me
serves.
fW
cc,0
glad to
am
find
may
that the Cais also verv
see
inter-
much
a"
c
u..hcu
uunug
«,
c
sumced"Fixed
prospects for the future.
^•ecently passed through what
"rollin
expanding
only
be
ing adjustment."
We
healthy
and
very
,
now
0
condition. Consumers
willingness
a
are
showing
are
which
re-
optimism
their
buy
about
the
to
general business outlook and their
•own
personal incomes.
On the
industrial front, the year 1955 is
expected to show the following:
Steel
production:
tons; up 2%
114,000,000
from the record
year
.
<-
">«
iq^
,„.nnnmir.
economic
been
fell
which
ic
ovno„toj
-
Jit™ Itnt'nllnnarv
b£
re-
......
.
investment,
«»aoi
■—
our
Secretary of the Treasury rightly
predicted would
.
.
The United States economy has
freVeunder0takenme£or uT in" th»
uated"
attempt"to
United States in an attempt
1:
M
....
™S ®rowt1^ has
.
penditure of $16.2 billion;
fr,
factor
believe their prosperhy ^0 be due primarily to mape0pje
an
1950
29%
up
record.
and
trucks:
7,520,-
1954 and
slightly under the record
of 1950.
if
Sound,
creases
less spectacular, inanticipated
almost
are
"across
board."
the
economy
wllllu
So
while
an
diverse and complex
as
Al
Liiat
uiuj
unforeseen developments of maj-
proportions
setting
tional
can
a
keep the
year
high for
new
na-
prosperity.
_T
.
No Direct
This
_
...
?lad to
..
..
_
of
trend,
I
am
has taken place withgovernment resorting to
direct inflationary policies. In fact
expenditures by the U. S. Govnut
say,
our
C*n?ncr
1955
■Of
during the below quarter
first a
1<%
were
year
ago
and 27% below 1953.
the
same
During
period, all government
expenditures were almost 10% beiow
the level
♦An
"Ike
examine
fore
choice
all
and
demands
fulness.
This
tn
carefullv
and
Dossibilities
the
making
cisions
the middlp nath
on
each
bp-
sticking
eternal
difficult
bv
de-
wateh-
non-dra-
est
most
and
resolute
traveler
Today I hope I have convinced
you of my belief that the economy
of
the
hope
United
States
is
sound.
I
feel, as I do, that its
peoples are still deeply committed
to
you
the
ideals
whiqh have allowed
ar.,r
.
,r_
_,
.
,
.
!ljear'
address
Canadian
of
by
Club,
a
year
Mr.
ago,
Holman
Edmonton,
and
before
Can.
"$180
WOuld
of
number
u
has
farmer
g
worked
acres
risen
bv
..
.
,
.
100%—
C.I.T. Financial Corporation, the
nation's
largest
independent
fi-
.
i
name
abunc'ant natural resources,
Look
A
Fulure
the
at
..
.
Thru Salomon Bros.
each
research facilities, and the like.
y t whrn we loQk
t the f,,ture
Tbe substantial inventory liqBut the exact opposite proved the growth i have just mentioned
uidation which occurred in 1954 to be the case.
-J De Hie
fllmnd
Qnmp
was apparently completed by the
The clear fact arising from the
a.™ documentation oref°urtb quarter, when a small ac- study is that Americans think "
bv
erouu
of
American
cumulation took place, and some their general well being is due in
* * re-entlv mitvished
further increase is expected.
large
measure
to non-material u? the T^ntiPth Ccnturv Fund
.
G. I. T. Places Noles
July 20 that it has sold $50,000,000
of
eight-year 3%%
promissory
notes due July 15, 1963 to a group
of
institutional
lenders.
eppmc
a
"Consumer outlays, which, with
3% increase, were the major
factor sustaining output in 1954,
a
factors.
The explanation
most
frequently given is the democracy and freedom found
in the
me
.
n
economic
.,
.
strength
if
That
try.
which
I
is
most
am
with
industry
an
and
familiar
which is perhaps an example close
to the hearts of you here.
The
demand
for
oil
products
in
the
their
start
will, to fail.
Another popular
6%
cause
over
last
juoiiiid
This
high.
year.
all-time
new
in*aiLioc;i vco
is anCrude
liitcij
oca"
revealing.
prosperous
UIlc—U Udl Iti
lilUOC
Ui
In Canada the stary.13 simil.ar*
and ie^rcls„ia^.1/n;diyudaai.,?^r^I
work. They mentioned the
dUJUl
...
.
C
loins R
J°mS,
Morton Co
1Vlort0n ^°'
'
D
be-
of the individual's willing-
ness to
Ulllj
was
Adds
(Special to the financial chronicle)
BOSTON, Mass.—J. Elliott FinB
lay is now with Palmer, Pollacchi
Certainly your extensive mining
(Specif to The financial Chronicle)
mcustry and. the vast developBOSTON, Mass. — Albert A.
ment cf oil resources in and Brown has become connected with
around tnis area have been .due B. C. Morton & Co., 131 State St.
competitive private enterprise.
,
This encourages many to search,
With otonc cfe Webster
each in his own way, taking risks
(special to the financial Chronicle)
given
It
is the confidence American individuals have in themselves. Time
and again the persons interviewed
said America
,
i aimer, roliaccni
aorPo
'
^
needs*
will & Co., 84 State Street.
worker
agricultural
^
h„rvp„t
reason
in the survey is also
United States should average 5 to
other
E
*
you
ln
69 000 000 jobs. Gross
69,000,000
product will be in the
nejghborhood
of
$413
billion,
and,
business
own
that
national
na^onai
of people to choose
51 ^
to
indicates
there wM
anj
and
sumers
the kind of work they want to do,
of the United States is illustrated
ars
^e United States 177 000 000 con-
,ea
otdies.
g
uus
up
expected to rise further this United States. Backing this up «
is
our
country s
year."
our country's concept of the free
concept of the free
are
over-all
it
out
within five
The transaction was arranged
throuSh Salomon Brothers &
HutzIer- The money win be used
to refund short-term obligations
and to serve current business
,
t
J'
.
,
'
BOSTON,
liy
Charles
Mass.
.
cratic principles. These have been
generally satisfactory. The long- as being a chief factor in the liv- responsible for your growth in
Joins White, Weld
term prospects for the industry ing standard of the United States, industry, agriculture and educa¬
(Special to The Financial Chronicle)
are
stimulating indeed.
We ex- Even fewer spoke of America's Uon, as well as.your social and
BOSTON, Mass.—John E. Cashpect, for example, that by 1975— natural resources.
cultural progress.
that is> 20 years from now_u. s.
This
Dattern
was
re_
Edmonton, of course, is a living man has become associated with
general
consumers will be using 60% more
fleeted bv all erouos in the dodu- example of these principles. Here, White
Weld & Co., Ill DevonRefinery
sonal demand.
runs
are
interviewed
industry
mentioned
.
.
Inflationary Policies
reversal
annual value from about
expansionary factor highly develoned in'ustrial n'ants,
ex¬
units: up about 14% from
new
from
To keen
weigh
terial reasons. It would be only from '25 acres oer man in 1930 to nau0.n s .Iar,?fs;. "laepenaent 11inf,:nni
tn
accnrriP
t'^pv
would
In
dL
e
d
nancing institution announced on
logical to assume Ley would 50 acres per man in 19oo.
by the condition of the oil indus-
the
Automobiles
•or
bility.
standards.
billion to 1357 billion. To take an
Now, you might feel that our example familiar to you, tne
enterprise system. Along with that
year
the
over
responsi-
.
The
«300
of
—
Condition of the Oil Industry
Residential construction:
Irom
burden
aPPfy to your country in her
. A
present Promising stage. As tor
baen tomorrow, I am rfeepTy convinced
25 years.
Ttudy" ^"the sponsible lor their high living jn
recent
economy
how the people o£ .Canadian
are living today.
nf
ine
expannsion
01
You will also find interesting, I
activity in Canada has
hope, what they think of their
the United States
fleets,
individual's
ijn\1ed "tau, in an attempt to tremendous. Population has in- that both the future of my counnadmn economy
find out what t i» pubic opinion creased from 122 to 165 million— try and yours
those two good
l^Uh\T
nnf
is.
Such
healthy and expanding. It is not
a study was recenUv a gain of 34%. Jobs have climbed neighbors-will be even brighter
T
I
est in knowing
a
"especially"when
tinsel
man
Canadians
a
be
be
to
ing glass
_
to
matic oath is onlv for the strnng-
than lip service to the
principles of free enterprise. Secondly, it gives assuranje that our
Oil
Standard
—
cf
for the prosperity
proves,
ing
them.
cording to tne economy s neeas.
son
understanding
for
spectacular.
the offer is made to take
trymen also provides the real rea-
j
broader
out
proves
attention. It will,
your
most
UC1U1
vision of the people involved.
a
p.rocess
the
C*1 vfl
It is t.
uaj
it
vigilance is required to
check
excesses
before
they get
out of hand.
People
Canadians are giing through
the same process of economic
comes
oiten
is
Constant
It suggests tnat the process of
increasing industrialization and a
th ese automatic safeguards, other
optional ones also exist, Among
*
be informa-
can
ba,V|„mmi77^.
tnan the
That
has an
ways,
deceptive.
as
have
;
oliUviivI
j
cessfully, I think, calls for
-
the
at
V pi
Though the middle way is the
best, it certainly is not the easiest.
aCfjusting of our hearts and minds
to what is new.
To do this sue-
indefinitely.
rate
contraction.
quick
ment
because
many
,
,
economy
expand
v
aGaptation wnicn
with less speed and ease.
against too great expansion or too
'
in
But similarities
as
States
to
IlU W
the greatest number.
tco-
e
of
dqy^ certain automatic safeguards bring it to
they are similar in all.
live
X Ilvl C
■«.
and
;
the
on
They have sought out a "middle
way" in the knowledge that it
will provide the greatest good for
change
o.
• America s
podtxeai
nomic well being,
farm has adapted itself jto a second
most salu-
are
largely based
their governir en't.
They do
desire any one segment to
dominate the life of the nation,
As individuals they
to
few short years,
a
n
without losing sig.A of the ideals
cf freedom whic.i are fundamental
place without big adjust-
econ0my
not
those
of
iiazard
an
have
meeting the impact
are
however, now
which good society is built.
Reover-all.flexibility which experts ceptly some evidence has come to
claim gives it a new and stronger hand wi;ich so aptly demonstrates
character. It has built into it-to- f^is process that I should like to
are
appreciation does not come
And it is often most dif-
easily.
major
no
economy,
of
views
other lands.
in
those
and
by
.
United
present
pend
these
continue
on
lor
achievement.
Canada,
in your way of life.
Here
especially you have learned a good
deal about the problems that are
.
the
World
hopes
in
be expected
not
ments
might be too much to expect
founded
our
take
Americans
dazzled by the glitter of
couid
course,
to
ca-
,
achievements
These
^
that
understanding
not
policies, pensions and the
not been depleted.
I
that
will
and
and
of
tary results.
of
Free
been
have
submit
co-
various
aterial
change in price levels. The pur-
surance
and
the
ards,
neighbor¬
accomplished
like,
between
trialization and rising living stand-
14% below the 1953 highs. Further, this change of trend has Telescoped into
t
if
to con-
are
we
In spite
refining
modern
and
brought about by basic changes in
a community's economic structure.
been
vital fact.
a
facilities ana
bright future prospect
^
is necessary
operation
bu-
z
c^vci
peo-
believe
major economic interests—industry, agriculture, labor, consumers
papaeity.
Says Canadian economy is healthy and expand¬
ing, and reveals progress of cil industry in both U. S. and
Canada. Notes Canada's increasing industrialization and lauds
as a
to
reserves
The
pie of the United States
in a system of balances
of my country's advancing in. us-
new
ing countries.
ideals of U. S. and Canada
veal, I think,
only eight years ago.
rapidly built up your
have
further from the trutn
tremendous pipeline
stresses
regarding economic progress and prospects of these
common
wouldn't take that freeaom away."
Now wnat do these baliefs tell
you about Americans?
Tney re-
more
lion barrels. You have constructed
importance of
mutual understanding of U. S. and Canada, and gives data
cil
day
crude oil
(New Jersey
Company
Nothing could be
year
than
was
You
Chairman, Board of Directors,
Standaid Oil
a
what it
By EUGENE IIOLMAN*
Prominent
...Thursday, July 21, 1955
oil than they use now.
jn
fjie
jbe
of
laUon-employees and
the Free
World
prospects for the oil industry
seem
equally bright.
Up
WnrlH
12%
War TI
each
Demand has
year
Crildp nil
capacity,
refinery
and
rest
since
reservps
transportation
rnarketing facilities continue
The
potential for in--
Soar.
creased
use
of oil is in the
same
I believe that by 1975
the Free World probably will be
category.
men
and
women,
mangers,
young
and old.
In all parts of the country when
the question was asked,, the response
tinn
was
nf
a
thnsp
healthy reaffirmawhich
nrinrinlps
the individual depends on the
strength of his own efforts. He
cherishes his right to decide and
to act as he sees
.
fit.
■
This fine city
bllilt by such action.
^
»
\i7i
•*.«.
have
Kejoins D. H. Whittemore
With
(Special to The Financial Chronicle)
,.
and in fact this entire area
been
Street Mr_ Cashman was
the soundness of your people givBOSTON, Mass.—William B.
was
founded.
Perhaps the best ing added vigor to your country, Saunders
has rejoined D. H.
summary of this feeling
lies in ibe future must seem as bright as Whittemore & Co., Inc., 201 De¬
the comment of one young man it does to us.
vonshire Street. Mr. Saunders has
from a city in the Midwest. When
There is always tve danger recently been with Lyman W.
were
asked
present
how
when
my
America's
country
present
i
*
when
speaking
of
abstractions Phillips & Co.
Volume 132
Number 5448
...
The Commercial and Financial Chronicle
(275)
stirring
Atoms for Peace
proposal which he made
United
the
to
Nations
hopes of peoples the world
By LEWIS L. STRAUSS*
Someone has called
Chairman, U. S. Atomic Energy Commission
Peace," and the
Admiral Strauss
peace
well
as
development of atomic
stresses
Also,
for
energy
Switzerland,
secuti'y restrictions.
and
predicts
when
our
material
its
atomic
armament
is
United
try—furnishing
-
feel
I
with
of
strongly that,
very
we
the
peaceful applications of atomic
the
new
our
For
govern¬
ment's
of
in
mo¬
the
I
Commission
withdrawn,
American
commercial power
becoming
lim¬
offers
itless
the.
at
Strauss
L.
Lewis
poses
obli¬
all of
upon
As
us..
Complex
know, the government's
program
is
a
scientific and industrial complex
over
the past 12 years.
adjective
-describes
it
not
The
is
paying
conventional
of your tax money and mine.
That figures out to something like
of
an
those
at
this
are
tney
say,
not
plants—nevertheless
I,!
groups
the
costs
of
laboratories.
have
the
And
Consolidated
mentioned
program
companies like
Edison
and
Com¬
prepared to pay the entire cost.of
out
financial
any
Industry
gigantic outpouring of money and
the
our
;needed,
mount
defense
if
freedom,
para¬
the pri¬
is
That
concern.
be
and
first
our
are
obligation laid upon us by
the law—both the original Atomic
Energy Act of 1946 and the new
law of 1954.
The law unequivo¬
states that whatever we do
be "subject at all times to
must
the
paramount objective of mak¬
ing the maximum contribution to
the common defense and security."
Nevertheless
our
small,
to de¬
mary
cally
Major Participant
American
•effort.
fend
pro¬
weapons
is
impressive
and
grow
As
its role will
and
way,
velop,
fissionable
materials
for
research
friendly countries. We
also
agreed
to
material
provide
brought
We
students
country to learn how
peaceful
atom.
mentioned,
countries
A
we
to
reactors.
And,
-
further
I
-
has
step
*
.
ing this
to
be
just
and
program
able
to
I
been
!
The
glad
am
here.
it,
announce
until
course
guards
adequate
But
we have
atomic
and
of
bounties
sought.
of
peace
world
with the
Act.
so
that
the
which
shown
itself
to
both
ture
us
as
energies
a
devoted
producing weapons
perialist" war.
agree¬
Atomic Energy
fissionable
materials
prepared
fuel
as
reactors
will
grade,
state
for
to
re¬
in
a
affirmative
entirely to
for an "Im¬
on
the
public
acts
as
confidence
in
There
•
.
has
provement
dition
of
Europe
marked
the
the
we
ful
of
men.
hopes
and
The positive steps
have taken to share the peace¬
uses of the atom
have had a
profound impact
on
the hearts of
sents
but
military
the
to
investment
an
this
casing and
of peace."
arts
stockpile
weapons
value
lies
contrivances
of
in
devices
,as
of
destruction.
They have
happier potential.
salvageable
value,
enly
small
a
statistics
to
substantiate
the
ance
which
trations
of
Western
is
that
needed
so
no
fraction
been
in
render,
the
our
provided
both
the
war
fortunate
Adminis¬
have
we
position' to
defense potential has
the
free
has
such
skills
has
been
training
operated at
schools,
tories at Oak
Nearly
500
scientists
its
This announcement is neither
Shares.
the
offer to sell
nor a
our
the
day
atomic armament is
required to
deter
nuclear material which it contains
be
can
energy
easily
great
amounts
converted
<
to
sources
of
countries
the
facture, testing and stockpiling of
cutting
the one hand, and the
peaceful development and appli¬
cations of atomic energy on the
We
who
Energy
the
work
in
the
Commission
other.
—or
•weapons on
"I
Out from
Secrecy
As., we learn more about these
^
peaceful applications
to
move
activities
walls
.•are
and
more
oujt
from
able
are
we
more
of
behind
vision
of that
:For
hitherto
to
The
Financial
Chronicle)
j
&
Co., 453 South Spring
Street, members of the Los An¬
geles Stock Exchange.
He was
previously
with
First
of
Morgan Adds
;
r
to Staff
instance,
year,
during
Commission
^nd
brought into
main
a
little
has
this
over
the
public do¬
as
-documents of scientific and
nical
fiscal
declassified
twice
information
as
in
the
many
tech¬
pre¬
ceding year. Our publications of
such declassified information also
have shown
We
are
more
a
substantial increase.
handing
of
trie
over
to industry
government-devel¬
oped formulae and processes, and
talk
by Admiral Strauss before the
Club
of
America, Inc.,
Mew York City, June 24, 1955.
"A
Overseas
Press
energy
with other nations, to
research, and for
which is just about to close,
the
the
Price $101
a
LOS ANGELES, Calif.
Mehmed
has
been
staff of Morgan
use
22
have
other
bilateral
completed
Spring
agreements
Logan & Co.
Company
Share
and accrued dividends
pro¬
Copies of the Prospectus may be obtained from only such of the
Undersigned as may legally offer these Shares in compliance
we
with
\
countries; witness, too, the
from 19 foreign nations
with the securities laws *>/' the respective States.
students
who
are
presently with
us
learn¬
ing the technology of reactors and
other
students
who have
come
from
32
production and use of radioactive
isotopes. Witness also our offer,
as
announced
two weeks
the
cost
by
the
research reactors in friendly coun¬
tries.
BLYTII &
CO., INC.
SMITH, BARNEY & CO.
y
This sharing of our knowl¬
edge of the atomic art is a trans¬
lation
into action — a positive
translation
of the President's
—
GOLDMAN, SACHS & CO.
IIA It III MAN RIPLEY & CO.
Incorporated
LEIIMAN BROTHERS
MERRILL
LYNCH, PIERCE, FENNER & BEANE
President
to pay up to half
the construction of
ago,
for
MORGAN STANLEY & CO.
countries
here to study the
July 21, 1955.
STONE &
WEBSTER SECURITIES CORPORATION
WHITE, WELD & CO.
the
Street, members of the
Los Angeles Stock Exchange. Mr.
Mehmed was previously with J.
in medicine,
negotiating
Fadil
to
& Co., 634 South
agriculture and industry—witness
the
—
added
tools for basic
new
-
(Special to The Financial Chronicle)
;
belief.
sharing the technology
peaceful uses of atomic
California
Company.
accelerated
my
us.
With Fewel & Co.
(Special
(Cumulative, Without Par Value)
are
the
classified.
-
be
with,
-
day before
$4.16 Preferred Stock
are
government
our
least, that is
vide them with
publicizing large amounts of
information
on
our
restrictions. We
of security
at
We
of
weapons —we
down
direction will
this
-
of
field
turn
Atomic
work
solicitation of an offer to buy any of these
Consumers Power
abroad—except in
to
power
monopoly as rapidly (with safety)
as
we
know how.
The pace in
At home and
very
industry, furnish us
With
light,
heat, transportation
and the many other conveniences
and blessings of peace.
offer is made only by the Prospectus.
September.
Our current budget
includes the development, manu¬
story.
into
provide
100,000 Shares
these
longer
no
aggression, the
American
classes will be¬
*
that
comes
engineers have al¬
new
their
h
when
at
labora¬
Ridge and Argonne.
young
and
an
The
of
cost.
years
students
schools, and
gin in
the
with
that for the last nine
result
it
anticipated
arp
scrap
to
proposition
under
since
and
their
Fewel
con¬
improvement
discernible
and
time
for
industry's role expands,- it
an
increasing number
Commission
another
Conventional
of trained reactor technicians. The
demand, for
repre¬
billions,
alone
not
im¬
an
economic
people
an
—
been
also
in
stimulated
the
it
will be
"strip the
to
LOS ANGELES, Calif.—Archie
W. Linde has joined the staff of
Apart from the economic assist¬
from
a
as
Our
matter
its
va¬
rious countries.
recourse
returned
of
convert
these
to which "Atoms for Peace"
I
simple
tangible effect
a
trip through part of Western
Europe where I witnessed the de¬
recently
nu¬
When that day comes it
a
of
be
not
but will be
that
prosperi'ty is associated with
peace and not with war.
Only
►
this
the wheels of
again
thus
are
already have had
nation whose nuclear
a
are
•
particularly adapted to this
specific peaceful application.
Peace"
be
age.
accord¬
form
fervently
for
in
should
available
Such
"Atoms
bilateral
new
I
we
make
•
Therefore,
clear
teat * will
in
peace
•
Perhaps
the
of
cooperation
weapons
free
real
But
approval
the fears of war, nor bring to the
the
provisions
for
i
search
of
to
obsolete with
t^eir doliverv alone cannot banish
peopxe
and, I
strive
striving
continue
come
in research reactors in friend¬
ance
of
means
been
will
weapons — shells,
battleships and planes—be¬
ments
long realized that
weapons
an
guns,
and
safe¬
security and our hopes of avoid¬
ing war are measured by our cap¬
ability to defend ourselves.
J
best
at
and
project, following the negotiation
otherwise assured. Our
are
is
agreement with proper and
an
these
President's Directive
Thus, more of our friends will
be able to share in this important
other pru¬
no
have
sure,
atom
taken with the purpose of
expand¬
however,
effective
have
and' operate
.
of this pe¬
use
make
the
helping those
are
build
-
for
this
use
as
feel
have
to
to
good
peace.
We
certain
reactors.
their
This,
armed
of
some
made
riod.
heavy water,
types
in
used
atomic
grams.
philosophy, compel
We have
have
valuable
use
simple self defense to de¬
test and stockpile nuclear
weapons.
to
allo¬
we
of
secu¬
space
need
will
tion
•of the
15th
kilograms
breathing
a
grow.
ready been graduated from
vantages we possess, is only part
in
us
dreams
industry, large and
the picture
in an
in
gram,
of necessity a secret func¬
lest we compromise the ad¬
November
100
of
sense
a
in which,
rebuild their economies.
They
rity and
ly countries from 100 kilograms
to double that amount—200 kilo¬
in the expansion of t.ieir
ruthless
own
nished them with
steps
gree
help from
Government.
and with little else to show for its
weapons
those
l
to many
Federal
that
what
with a barricade
It has fur¬
aggression.
sion to increase this country's al¬
of enriched uranium for
Compelled
However, the uncertain climate
affairs, and the menaces
those who have destroyed
atomic power
plants—running in¬
millions of dollars—with¬
against
1,-The President has just author¬
ized the Atomic Energy Commis¬
of world
out -has
monwealth Edison of Chicago are
barricades—manufacturing bombs,
true
rn ore
own pockets.
Others are -symbol of hone to free but appre¬
asking only for research and de¬ hensive peoples, and a vigorous
answer
to hostile efforts to pic¬
velopment
assistance
from
our
windowless walls and barbed wire
is
and
of their
of a million dollars
•every
hour, around
the clock,
•every day.
In spite of the stake which, as
taxpayers, we all have in the
•enterprise, many people think of
it only as a mysterious, supersecret operation carried on behind
quarter
It
"atom
from
freedom
Western Europe
in
location
prepared to put up about 90%
are
year
a
proposition
yet economically competitive witi
investment of some
$12 to $14 billion, and to operate
it, we spend about $2 billion a
represents
Power
our
the
a
for
pray
words
.happier
Self-Defense
Program, which dent
time, that is to
most properly
"enormous."
It
which
.<
licensing provisions of
the new Atomic Energy Act, has
been 1 eartening beyond our ex¬
pectations.
But
still
more
en¬
couraging is the fact taat—even
thougn atomic power plants are
energy
created
y
•
undertaken only last January
was
you
atomic
y,
to
response
under
Scientific-Industrial
A
*h
Demonstration
the most
serious
gations
$200 million.
im¬
it
time,
and
the
abundant.
V "
This
to
will
healthier,
Pro¬
energy at a total cost of well over
and,
s a m e
know
Last
,
of
arouse no image of
but only of daily, be¬
nign wonders to make man's life
build
gate 700,OCO kilowatts of electrical
talked,
been.
cated
a
reactors, under
Demonstration
I
those countries with
nations.
Atomic Energy
hope
when
You
have
whom
and low.
weapons,
of
Company of this city, aggre¬
son
oppor¬
tunities
to
day
energy"
re¬
These proposals, together with
project of the Consolidated Edi¬
a
the
tak¬
gram.
ple's business.
It
companies
Power
our
and
the peo¬
more
the
60
contributions
in the
us
with
reactors in
a
in¬
important implementation of
All of
that,
Atonic
ing action on tie proposals
cently
submitted by groups
atomic energy
more
enterprise
will be
August,
"Atoms for Peace."
might cite
future,
near
of
substantial
Commission
instance
Energy
nopoly over
its develop¬
ment is being
is
this
art within the
free
system.
and the manner in which
energy,
encouraging wider devel¬
are
opment of this
framework
in
peaceful uses of atomicThe United States will
energy.
make
the constantly expanding scope
natural.
initiative
Conference
upwards
the
on
with light, heat, and transportalion.
us
a
our
It's purpose is to exchange scien¬
tific and engineering information
be easily converted to the advantage of indus¬
can
early
Nations
volving
longer needed, its nuclear
no
is
name
result of
as a
over.
peoples
high places
it "Atoms for
there will be convened in Geneva,
defense use, with growing release from
Commends role of American industry,
steadily growing participation. Maintains
as
Dec.
on
8,
proposal which fired the
1953—a
11
The Commercial and Financial Chronicle
Ethical Standards: Doctors
And Financial Advisors
investment advisors
income, and this
this
quently
tion
also
conse¬
to
happens
should
or
a
financial
it is
just as it does before
a
financial advisor asked to rec¬
ommend an investment and who
him
before
should both be
wine, which was highly prized is long a block of securities on
brought stiff prices in Gaul, which he could make a substantial
since at that time the ancestors
profit. *
r
of the French had practically no
In the hospital one saw many
viticulture. Its sinking must have
types of doctors more or less un¬
been a * staggering loss. * On - the
der one roof where* their activi¬
other
hand,
the expeditions of
ties could be observed. There were
Cortez a'nd Christopher Columbus
many high grade men ambng them,
to our new world presumably were
conducted
highly
The
practice
of
the
since
on
has
civilization
of
dawn
in
and
carried
been
and both professions not only
certain
and
medicine
of
finance
have
things
'
•
common, •,
with
one
the
of
high ethical
lines
the
now
Greek
times,
as
pic-
tured
by
we
find
medicine
in
>
;
a
and
distinct
V.
Curtis
which
ter
Kuile
The medical art
opinion.
followed
and surgeons even
with
with
all
physicians
to this day. His
people
that
health
be
the ages, while
ing
their
them
At
a
times
certain capital
No
gains speculations of today.
current income was expected; if
the expedition returned safely with
a
load of frankincense, spices or
resembled
gold, then thd profit usually was
enormous.
If it never returned,
there
a
was
hole
dry
wildcat
such
was
loss, just
if
as
had resulted from a
drilling scheme. One
oil
ancient
failed
the
total
a
speculation
which
recently revealed with
discovery,
Marseille,
near
France; of the wreck of a vessel,
owned by a wealthy Roman mer¬
chant
shipowner,
which
sailed
from
the
Greek
island
of
in about the year 230 B.C.
carrying
a
*The
It wa^
of 10,000 amphora
total
of
approxi¬
cargo
containing
mately
Delos
a
65,000
writer
gallons
is
of
Aegean
graduate mechanical
engineer, Cornell University. He has been
engaged in engineering and the invest¬
ment
business
member /of
the
commercial
banking
1676
by goldsmiths in
their
and
dress
could
the
which
burg,
1619,
inter¬
paid
was
of
Bank
Ham¬
of
Bank
formed
was
the
many
Cornell
ciety an(d the New
curity Analysts.
years
and
Engineering
York
Society
of
is
a
So¬
Se¬
the
U.
have
was
We have
been
in
men
a
established in
a model of
as
Amsterdam,
as
a
•
for
service
which
was
have
to
conduct
and
company
exclusive
trade
South
the
the
right
between
investment
some
This
Seas.
bold
project resulted in the collapse of
what
termed "The South
was
in
1932.
Sea
j
above short resume
The
history
is
a
crash
comparable
to
the fall of the Insull empire here
Bubble,"
medicine
of
and
ing the scope of civilization there
have been
men
who
looked
after
the health and the wealth of other
persons.
majority of
honorable, conscien¬
The greater
these
were
tious,
and
carefully
codes of ethics.
When
a
gaged in
is obliged
man
attentive
to
x y
who has been en¬
the investment business
to lie on his back in a
for days on
ily would escape consideration in
the hustle and confusion of every
relation to
no
to
it?
do
Call
irtto
consultation
TVA
College professors, largely
was
against it,
up
fact
that
two
the TVA
and
Public
members
supporters
Power
the TVA
of
bragged
is
commentary
a
an
could
they
and
men,
Commission
were
outvote
the
opportunity to appoint.
something that the Washington pub¬
on
nail, is
a
a
who has been fighting
man
New Dealer who continues to hold
still in control
Eisenhower, determined to do something to stop the
Mr.
ex¬
pansion of TVA, instead of calling in men unsympathetic to the
proposition, called in
who were sympathetic to it,
men
Naturally they were the
private power industry.
in the
men
men
who could
tell him how to do what he wanted to do.
in the eyes of the Democrats, more
But
vocal and far better
propagandists than the Republicans, this was a scandal reeking of
A distinct difference is that nobody in the Dixon-
Teapot Dome.
These
Yates
class by themselves.
controversy has been
accused of taking
bribe.
a
What is
apparent is that when the Democrats first started yelping about
they frequently have an
any experi¬
enced businessman could spot, they
hide
the matter in
concerns,
office
lay-out which
to
a
and
ent
right and proper, dealing with the
wrong
investment
should
and
be
in
business.
urged
The
public
have confi¬
So
recommended
investment experts,
would
the
be
case
with
a
visor should be
actuarial basis
a
favorable
as
on
in following
darned
a high grade
doctor. It
important to pick out an ex¬
perienced financial
many
when
the
him,
one
thing
such
men
man
to
do
is
a
power
have heard
advise
cinch
it
is
it
plant
that it has
developing
or
pres¬
the
a
the
little
The Federal Government, under
lot and
you
"
will continue to hear
a
lot
Administration has called in "selfish" busi¬
and
not
help
calling
it
in
out
carry
leaders
of
its
program.
the
CIO
or
The fact is that it has
Try to fire
It's
of
a
the
so many
important posts
awful time carrying out its policies.
an
The
little hamlet in
isn't going to do it.
litical saboteurs and they are legion.
They are
one
po-
of them and
and there
a
available. Then
has selected
own
any
of these birds now lodged around in the lower but
.
are
its
objection to
no
Americans for Democratic Action.
an
the
advice of
is
to
nessmen
good financial ad¬
as
has
about how the present
physician. The results of following
the advice of
build its own power plant if it so desires.
building
you
That is vvaat the
itself against and that is its accomplishment.
the Eisenhower program,
properly
selected
as
to
constituted scandal
stands, the Democrats still have some¬
now
stream which may be at its doors.
the conduct of the
in
can
set
Administration
country
establishment of principles of right
and
not that they
But the TVA doesn't expand.
probably will.
Memphis
of conduct,
course
them,
lot of demagogues more ammunition.
the situation
As
Administration
suggest
from
thing about which they can talk until they are blue in the face,
The moral lesson attempted here
is
their demagogic way, the Administration sought to
details
some
but that they gave a
lation.
to work
cooperate with him,
do
with ;
not
study the data submitted, do not
terrible
cry
civil servants
good one,
follow
blindly, use good judg¬
life. The writer, who hap¬
ment yourself, but in the long run
pened to be in that predicament
recently, could not help but muse rely on his advice.
day
have
his job by virtue of the fact that New Dealers are
with
end he has
ample opportunity to give thought jump from one to another, con¬
to various subjects which ordinar¬ sider all suggestions carefully,
hospital
power
practically never are con¬
nected with reputable investment
finance just
designed to show that all dur¬
the surplus
of TVA.
They
dence
of the
he
Eisenhower tooth and
the very
Quick
Wallingfords,"
a
of
use
course,
Public Power lobbyists?
Dealers,
It
also
few real
come
in
the
great
into office definitely committed to stop
came
was
licity representative of the TVA,
Last of all, and for once
are
of
the
of
part
whom Mr. Roosevelt used to rely, could not be depended
not
only through necessity, even their
personal habits may be slightly
men
to make
created
Chairman whom Mr. Eisenhower had
Then
rules and usages are complied
rich
section
certain
a
insignificant
the TVA has far outgrown its original
years,
was
How
or
He
New
not particularly ethical
in their recommendations, certain
to
England
on
about the
In 1710" the
was formed operate on
long' profits, not nec¬
in
England and shares offered essarily in worthless securities,
publicly to provide funds to take but always with high pressure,
over
the national debt, in return
misrepresentation, rampant specu¬
purely deposit bank.
South Sea Company
racket.
upon.
are
"Get
develop
to
It has long since run out of hydroelectric power and has
leftist,
have, unfortunately, a larger
group in our business that do not
quite come under the above cate¬
gory. These men are only mildly
informed on investment subjects,
the least,
j
are
suitable to his requirements.
they
recent
that it
enthusiasts
misrepresent, who
customer
paid
relatively
a
Mr. Eisenhower
this
reliable and do
live clean
lives, who respect the customers'
wishes and attend carefully to his
needs. They would not unload on
who
ness; men
not
generally
always
building steam plants which, of
investment busi¬
the
in which TVA could be
the surplus of water power from flood control and navigation.
high grade, well trained, compe¬
tent
in
project.
great many
a
way
;
This, of
"tie it to navigation and flood control."
developed from the navigation and flood control purposes of the
a touch of avarice, maybe a
tendency toward showmanship.
In the financial world it is just
same.
Bargeron
Carlisle
[';
development.
premise,
sibly
the
were
But
of incompetence, pos¬
hint
a
measures.
Navigation and flood control by which the taxpayers of!
country
S.,
power
if these were of the
as
the Wolves of Wall Street.
deposits and
to the date of withdrawal.
up
created.
noticed.
businessman
was
the only constitutional
was
course,
wide-awake
It seemed
Here
Dealish of New Deal
garding TVA,
professional con¬
two whom any
not kill it off.
:
'
came
growth
one of \ i
The late Senator George W. Norris, touted as
Finally there seemed to be
duct.
^
£;
them
a great "liberal" but one of the worst political
hypocrites in this country, used to say, re-
would
a
for
■
not consider for a
action not to the sole
benefit of the patient. Also among
the doctors -/present
there were
several
that appeared less in-r
they
the TV A,
the most New
moment any
lax.
a
Incidentally,
whole project or took
substantial portion of one. These
closely
of
about
undertaken
est
a
projects consisted chiefly of or¬
ganizing and financing shipping
and caravan
ventures and they
of
tradition
received
invested
men
their
to
business which had been
going on in Holland possibly for
at least 200 years. The goldsmiths
first, but the need for
stability comes a close
ancient
In
banking.
was
second.
In
True
committed to stop the
was
'
we
of
in 1693 pri¬
fulfilling many
functions
the
London,
but certainly next
in consequence. Good health sure¬
usually in
en¬
the foundation
before
vate bankers were
of
death,
financial
was
(investment
the Bank of England
transactions, all of these things
are truly of great importance, not
necessarily to be compared with
comes
the
Long
fi¬
ple's wealth,
their protection
against loss of funds, the giving
of sound advice as to what is for
their best
interests in financial
ly
Rome
who purchased by auc¬
right of levying the tax.
bankers)
tion
it should also be empha¬
sized that the conservation of peo¬
or
ancient
in
of
collection
The
taxes
this point
life
conveniently increased, includ¬
the imposition of a personal
tax.
of the type
investments
on
Xeno-
2%.
of
trusted to contractors
advised
currently in favor, or handled
nancial transactions for them.
duty
property
they were also
for them,
valorem
in the oldest work on fi¬
nance, outlines means
by which
the Athenian home revenue might
trusting their fortunes to persons
who either held their money in
safekeeping
customs; in the case of
took the form of aft
this
phon,
of Hippocrates.
doctors,
to
from
ad
advances
entrusting
were
antiquity derived a rev¬
Athens
knowledge, the true method of
medicine may be said to
All down through
product of taxation and
of a country.
The
the
finances
enue
clinical
be the method
word "Fi¬
finance of
model
so
ages,
enormous
our
the
by
succeeding
all
respect.
trustees
or
.
commanded
action
every
But like bankers
When the Eisenhower Administration
into office it
indefinite lia¬
type to steer clear of. One cannot
lords. In
describe just why; perhaps there
time the
of
course
nance" became nearly synonymous
Hippocrates, creator of the
"Oath of Hippocrates,"
teachings have served as a
for
whose
one's imagination
don't
They
.
'
of sound education and train¬
men
slogans.
dealing with you with integrity and honesty. • *
The only chance they ever have elf getting
1
votes is when things are going good and when
they are in power as the situation now seems to "X
be, or when their opposition becomes disgust- " *
ingly rotten. They have never had any political
"it"; the country has to be surfeit with con)■ tentment for them to stay long in power.
serfs to their
bilities of
celebrated
creed
employed
was
note the funding of
the
the word
to de¬
Century
13th
the
In
practiced, the charac¬
ter of the
physician as we now
understand it, both date lor us
a
be
wealthy cus¬
of
attention
the
"Financia"
it is now
from
make headlines.
ing, of high character and ability,
one or
apparently
long enjoyed the respect of
as
unknown.
were
should
it
tomers.
had
public
certificates, as we
them,
use
today,
as
fiery
or
and the Demo¬
the Republicans
likely to strike
They aren't
goes.
crusades
Dixon-Yates contract you have a
between
cautious, non-talkative, unbrilliant, as the
are
of your estate you can usually eount on
'
borne In
mind that in ancient times there
were
still
financial agents who
formed, not quite so experienced,
originated investment and specu¬
perhaps even a little careless in
lative projects and brought them
to
organized pro¬
fession
even
arenas,
However,
Ho¬
mer,
were,
riond and stock
the
the
for
ones
of course,
usual real estate promotions,
There
rentals,
in
ancient
profitable
backers.
;
standards.
Even
with
.
other, but also
along
expression
..
operation, the vision of a new
fur coat for his wife may loom up
difference
The former
crats.
doctor
recommend
not
fundamental
a ques¬
the
whether
to
as
should
investment business.
also
By CARLISLE BARGERON
In the controversy about the
an
affect their ethical conduct. Draws from
of conduct in the
can
and
income,
advisor. Sometimes, if
moral lesson that suggests a course
a
of
is
it
profession,
a
quently medical advisors are some¬
times tempted to be influenced by
clear profit motive just as fre¬
Points out both medical practitioners and
carry on their professions for purpose of
common.
is
source
a
the lines of ethical standards have certain
cial advisors along
things in
a
Washington
Ahead of the News
while
cine
KUILE*
the practice of medicine and
times and finds that physicans and finan¬
finance from ancient
From
begin with, it may be granted
the practice of medi¬
that
development
Author traces the
of
physicians and surgeons.
To
By CURTIS V. ter
be¬
that
and
business
his
tween
similarity
marked
the
over
in
Thursday, July 21, 1955
...
(276)
12
power
goes up
are
from the Eastern
press
about how "career":
being mistreated. The New Deal having been in
for 20 years naturally the so-called civil servants, all of
them, consider they are career employees.
Joins Bache & Co.
With Wilson, Johnson
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
RENO, Nev.—Gerald A. Barnett
M. Burk is now with Bache & Co., is with Wilson, Johnson & Higgins,
National City East Sixth Building. 137 West Second Street.
CLEVELAND,
Ohio
—
Richard
Number 5448... The
Volume 182
Commercial and Financial Chronicle
(217}
from
Automatic Factories
Connecticut Brevities
Stockholders of Travelers Insur¬
By ROGER W. BABSON
ex¬
t
that the directors would
give
Babson, in commenting on the recent rapid industrial
changes, poses the question, "Are we going too fast?" Sees in
automation a possible increase in employment, but a different
kind of employment and a higher standard of living. Holds,
share.«
our
&
Montgomery St.,
analysts in charge of
has
announced
American
Dyeing
addition
its
to
a
new
Rockville
plant.
company is a contract dyer,
printer and finisher for the tex¬
tile industries, particularly syn¬
Bart, Hamilton Co.
and
synthetic fibers. The new
will contain about 110,000
square feet of floor space and re¬
plant
,
in
sult
addition
the
of
about 200
employees. The company's
research operations will be trans¬
new
ferred
plant
new
Massachusetts to the
from
The
—
&
Burt
N.
firm
Company,
Kirby Building, has been changed
to Burt, Hamilton & Co., Inc.
Clark Hinderleider With
McCourtney-Breckenridge
(Special to The Financial Chronicle)
Mo.—Clark D. Hin¬
become associated
McCourtney-Breckenridge &
Boatmen's Bank
Building,
ST. LOUIS,
R. Wallace & Sons Manufactur¬
ing Company of Wallingford, one
of
nattion's
the
silverware
oldest
producers, has recently purchased
Watson Company, Attleboro,
Massachusetts. The new subsidiary
will continue production
ing
silver
its
at
ware
of sterl¬
flatware and hollow
present locattion.
Danbiiry
Industrial
Park,
a
privately owned industrial district
in Dan bury, has started construc¬
tion of its first plant,
a
small
building on a two-acre site. The
building will be be occupied by
Topstone Rubber Company, a pro¬
ducer of rubber toys and novelties.
with
Co.,
Exchange.
Company, which in May acquired
Natipnal Bank,
Norwich,
through
purchase
of
stock, now proposes to acquire
two
Miridletown
banks, Central
&
for $1,2.50,GOO or
$875,0C0
banks
$17.50
cr
of
rectors
$50
share, and
a
the
have
Bank
share.
a
two
for
Di¬
Middletown
the sales
which will take place about Nov.
1, subject to approval of their
stockholders and the Comptroller
of Currency.
approved
Hinderleider for
many years has been with the St.
Louis
Union
Trust Co.
In the
he
past
Walker
of the in¬
for G. H.
manager
was
vestment
department
&
Even
the gene ra¬
tions
matic world of tomorrow.
all
in
before
us.
tor to
This
fast
lot
scares
of
thinking people. Some
they would have had
problems to face if they
that
had
been
born
hundred
a
say
to
around
be
from
they would not want
hundred
a
because
now
men
move
the
of
you
fast
union
might
for
high percentage of the 55,000
which they offered on a
a
shares
would
themselves
—
also
ap¬
frightened. They ad¬
mit that the high wages are de¬
veloping a new threat to labor
which may throw huge numbers
parently
are
out of work. This threat
is Auto¬
mation, apd they say it
may
not
Martin
has
formed Mutual Funds
with offices
229 Old Ivy Road, N. E. to con¬
Securities
at
Robert I.
—
duct
Company
securities
a
was
business.
Mr.
previously with John¬
Lane, Space & Co.
son,
automatic
have
you
the
look at in
real
They
which
have
chines.
tions
or
cans
are
computation in,
say, four minutes as a large force
of men with pencil
and paper
do
see
machines
juke
is
is
that
word
a
and
seem
others
see
this
as
a
employment.
to think that some day
danger
to
full
manufacturer will need only to
put his finger
a
on
few buttons
will
one
young women
a
like
and
all
of
row
so
many
flashing
two
or
About
be
looking
boxes
and
months.
in
will
you
lights,
well-dressed
pushing buttons.
lot of workers will have to
other
to
jobs.
people
more
than
there
But
there
said
all
"do-it-them-
homes, with
families.
use some
Perhaps
opportunity t<5 cultivate the spir¬
itual
values which
building
up
have been
we
while
we
have
material
our
Col. S. C. Baker, Jr.
DENVER, Colo.—Garrett-Bromfield
&
by experts that,
we
and
been
soon
our
has
automatic,
a
offices
made
good deal
of human effort is still necessary.
in
a
factory
which
Building,
Midwest
with
North
Mo.— Charles B.
associated
LOUIS,
A.
sociation
Colonel
of
G.
Edwards
&
Sid¬
ney C. Baker,
Jr. wRh their
graduafrom
tion
University
o
f
Nebraska, in
1937,
Colonel
invest¬
business
ment
with
Halsey
Stuart
Inc.
i
&
Co.
N
n
in
could
every
be
process
Infantry
action.
ver
(First installment of
an
issue
not
the
Infantry
with G. H.
He has recently been
Division in the Korean
He recently came to Den¬
from assignment with Depart¬
of the Army General Staff
ment
(G3) and assumed his present as¬
sociation.
exceeding $8,400,000)
Chesapeake and Ohio Railway
Walker & Co.
With Baker, Simonds
Equipment Trust of 1955
Mich. — Virgil
A.
with Baker, Simonds
DETROIT,
Stock is now
&
3% Serial
Co., Buhl Building, members of
Equipment Trust Certificates
(Philadelphia Plan)
the Detroit Stock Exchange.
The
remaining shares
were
taken
by the underwriters. Net
ceeds
of
about
(Special to The Financial Chronicle)
$1,475,000 will be
with
balance
being
mature
Goodbody Adds
pro¬
used to repay bank loans of about
$1,400,CC0
To
To be
DETROIT, Mich.—Dean Dancey
is
with
scott
$240,000 annually August 1, 1956 to 1970, inclusive
guaranteed unconditionally as to payment oj par value and dividends by endorsement by
The Chesapeake and Ohio Railway Company
Goodbody & Co., Penob-
Building.
MATURITIES AND
YIELDS
1956
1959
2.95 %
.1963-64
3.05
2.80
1960-62
3.00
.1965-67
3.075
1958
■
2.70%
1957
o.
-
2.90
'
\j
—
fgj Primary Markets in
CHAS. W. SCRANTON
Members New York Stock
&
1968-70
%
3.10
CO.
Exchange
Issuance and sale
oj these Certificates
are
subject to authorization by the Interitate Commerce Commission.
CONNECTICUT
New Haven
HALSEY, STUART A CO.
SECURITIES^
New York-REctor 2-9377
Hartford—JAckson
R. W. PRESSPRICH
Teletype Nil 194
i
July 20, 1955
.
INC.
/
FREEMAN
&. COMPANY
7-2669
WM. E. POLLOCK &.
yaj
&, CO.
CO., INC.
GREGORY & SONS
during
and with the 25th
the New York and Midwest Stock
Exchanges.
Baker, Jr.
He
York.
served
Col. S. C.
e w
Sons, 409
Eighth Street, members of
as¬
<
$3,600,000
become
has
Stock
Exchange, has announced the
World War II
work
Supposedy,
Security
the
of
the
industries
in
Co.,
members
(Special to The Financial Chronicle)
Baucom
been
pros¬
perity.
A. G. Edwards & Sons
ST.
we
of this time and
Baker entered
automation,
the
most
erected
can
time
more
to
own
selves," in their
own
ma¬
prosperity
bringing them
ago,
products, and to achieve
Even
opportunity
now
years
present prosperity.
where
is
and
employed
would not have had enough work¬
ers
to do our jobs, to introduce
the
and
their
condi¬
than Ameri¬
getting today. The
ten
were
with very much more machinery.
new
working
pay
department.
change-over to automatic
production spreads, it is certain
are
better
higher
anywhere
chine has brought them
Upon
As the
move
workers
securities sales
What Happens to the Workers?
a
such ma¬
had
never
No
had
ever
coun¬
the backward nations
are
much
as
uo
without
being used a great deal now¬
adays. It means using electronic
machines in place of men. Walter
Reuther
try than
Joins Garretf-Bromfield
"electronic brains" which
new
can
It has been
Automation
modern
a
telephone exchange. If
chance, look at one of
—but very
different jobs.
materially and
a
that
a
Charles B. Baucom With
less to
even
moving
are
we
are
spiritually better off in this
neglecting
sees
gigantic pipes, an array of
dials, and only one man who
seems
to be in charge.
There is
only throw men out of their jobs,
but there just may not be any
jobs!
Of course, I don't believe
this.
Rather, history shows, "the
more machinery, the
more jobs"
Co.
ATLANTA, Ga.
We
for eight basis at $28 a shale.
one
up
are
leaders—
expect
A visi¬
big generating plant
a
could
(Special to The Financial Chronicle)
have subscribed
years
"things
changing too fast."
Forms Mutual Fund Sees.
Stockholders of Bridgeport Hy¬
draulic Company
years
and they are probably right.
Others
new
some
Roger W. Babson
What Is Automation?
Trust Company
National
Middletown
Mr.
Stodk
Midwest
the
of
members
Martin
Uncas-Merchants
has
derleider
Harlfcrd National Bank & Trust
National Bank
us
than
Some
its completion.
upon
Texas
C.
of
the
of
many
ago
DALLAS,
has risen from 5,100,000 to 8,100,000 during this same period.
telephone exchanges,
oil refineries, and electric gen¬
erating plants, for example, now
look like a preview of the auto¬
fewer
New Firm Name
name
believe
fast.
yet the number of office workers
of
feel
The
thetic fibers and blends of natural
of
memory
a
on
don't
and
more
change
Corporation
has started construction
a
has
way
• within
manufacturer of as account
plans for the research department for
entering the electric timer field on Northern California. Mr. Schaefer
a large scale. A new division has
was
formerly
manager
of the
been formed to mass produce both sales department of the local of¬
electric clocks and electric timers. fice of William R. Staats & Co.
leading
watches
heard
ago I
automobile
fice machines in the last ten years,
changed
405
Templeton,
long
very
life
FRANCISCO, CaliforniaG. Schaefer has become
associated with Mitchum, Jones
The United States Time Corpo¬
I
push! If this were true, or
man
in the
business close to it, then we all ought to
say: "In my lifetime there have be afraid because our way of life
been bigger changes in industry depends on most of us having jobs
and working at them. If, however,
than took
the future is anything like the
$lace in all of
the years bepast, Automation could increase
f o r e
t h a t."
employment and raise the stand¬
ard of living.
Here in Amer¬
There have been
all kinds cf developments in of¬
ica, especially,
Mitchum Jones Firm
SAN
How to Use Extra Time
production spreads, it is certain a lot of workers
will have to move to other jobs.
too
Not
C. G. Schaefer With
Charles
automatic
as
con¬
quarterly rate on the new tsock,
equivalent to a regular annual
rate of $20 on the $100 par stock. v
The
regular dividend rate has
been $14 with an extra of $5 a
ration,
Mr.
a
sideration to payment of a 20-cent
•
•
_
special meet¬ pansion program.
ing on July 15 approved a 25 for 1
Stockholders of record June 15
split of me common stock. The
of New Haven Water Company
presently outstanding 400,000
have been oxtered rights to buy
shares of $100 par stock will be
new common stock on the basis of
split 20 for 1 into 8,000,000 shares
two shares for each seven shares
of $5 par stock and a 25% stock
held at $51 a share. Rights expired
dividend will be paid, raising the
on July 15. The proceeds of about
outstanding capitalization to 10,$2,000,000 will be used to partially
000.000 shares. The stock dividend
finance the diversion of the Hamwill result in the transfer of $10
monassett River into Lake Gailmillion l'iom surplus to capital. At
lard by means of a dam, reservoir
the time of the announcement of
and diversion tunnel. This project
the plan, the Company indicated
will cost a total of about $6,000,000.
Company at
ance
done by a few
people who would only push but¬
tons. Actually, of course, human
brains have to work out the whela
scheme, and human hands have
to build the machines, set them
going, tend, .repair, and maintain
them, and sometimes stop them!
uct could be done
'
the Company's
available for
prod¬
to final
material
raw
13
McMASTER HUTCHINSON & v^O.
14
in the above-6'r
estimated
THE MARKET... AND YOU
By WALLACE
Continued
its
group on
the
year
which would be
amply supported by earnings
estimated
at
exceeding $5
against last year's $4.21 re¬
STREETE
the ability
of the long-de¬
over the
Geneva Con¬ pressed farm equipment
Varying opinions
ference
of
the
The
kept ther stock, market
uncertain affair this week
shares to show
in
trying
good stability
times
Promising Rails
These
in
the
of the
other
of
the
carriers
"behind
the
market"
and
a
shift
will
be
necessary
*
*
in
''Despite repeated SEC affirmations of 'good inten¬
banking industry and
the extension of its powers,
the
will take the
Through the medium of some form of artistic seman¬
use of which its mastery has been shown, the
International
new
One
interest.
Great
which
has
Stability in Farm Equipments again raised its quarterly
There
was
one
new
note in
dividend, is usually included
coloring
"equalization," "double standard," "protection
inapplicable
phrases
as
of such conclusory words and
use
SEC attempts to decoy the Congress
complying with its plans.
into
showed indica¬
If the Congress had intended to give the SEC com¬
making a good stab at
plete jurisdiction of over-the-counter securities, it- could
doing better. Spiegel was a
readily have done so. That is exactly what the Congress
d'd not intend to do. This is clear from the transcript of
particular favorite, including
an
the Congressional committee hearing^ incident to the pas¬
appearance among the
most active issues at a price
sage of the Securities Acts. As a result the jurisdiction of
of above $16 against a low of
the SEC with respect to over-the-counter securities was
$5-$6 at which it sold last '* virtually limited to instances of fraud and manipulation.'
year and the year before. In
This limitation the Commission has never worn gra¬
fact, its high level this week
ciously.
T
\
was far better than
anything
We believe the SEC has regarded this limitation as a
seen
since 1947 but still a
tions of
shackle, and has ever since been an enemy
the-counter market.
good bit below the nearly $40
posted in the 1946 bull swing.
The
stock
is
even
above
the
of instances the SEC, as a
year re¬
to
since
last year
has
gone
it
was
listed
late
in the face of all that
on
in
paper
issues
and the market
has
built
generally. It
of less
points in its listed
up
a
range
article
time
views
do
not
coincide
Chronicle.
expressed in this
necessarily at any
with
those
of
They are presented
those of the author only.]
the
a
number
condition to giving its approval
that the new
plan of re-organization, has required
a
of the overIn
striking and decisive fact.
Witness this
nearly $15 price posted in its
[The
Northern,
By the
constantly reaching out for more power.
SEC is
stocks
store
Telephone than seven
intra-day loss this
week even exceeded the half- $3.75-$4 against $2.80;
CIT life and has been
about mid¬
dozen-point gyrations of last Financial, above $4 against
way in the range most of the
Pitts ton
$4-$4.50
week. Other chemicals were $3.85;
time this year. It spent the
more
often than not on the against $1.64; and Colorado
first half of the year declining
Fuel $3.75 against $2.46.
easy side, with Monsanto
slightly while the play in the
*
*
*
posting some of the larger oc¬
papers settled elsewhere. It is
Railroads continue to lag
casional declines
despite its
unusual that the stock hasn't
with a good
prominence in merger talk.
group of follow¬ had
any sort of speculative
Even Olin Mathieson, which ers being built up both by the
spree in years, even in its pre-*
is featuring rather
promi¬ higher yields offered in this listing days, especially since
nently in the various stock group and by the expectation it is one of the smaller commarket studies, failed to show that general market improve¬
mon
capitalizations around, a
ment is still
that all the high
waiting on a deci¬ mere 540,000 shares.
regard has
sive
turn
been at all potent in
by the carriers.
kindling
mence.
to anyone who.
pains to study that history."
tics in the
Some of the mail order and
ever
split early in the week were
disappointed and the stock generally include American
milled around for a bit before Potash, $5.76-$6 against $4.34;
National Steel $5.50 vs. $4.13;
deciding to sag with vehe¬
all else notwithstanding. This,
history of its existence makes apparent
of investors" etc. the
to best dividend
payout
rather
that the Commission seeks
view
#
Sit
accepted
responsive to the 'public interest,' we find in our
as its primary purpose
be
to
securities be listed on an exchange.
.
estimates
Is there any need or
why the Fulbright Bill?
tions' desires to aid the investment
starting to show the ability to higher yields by institutional
cently, that of 1951. The last
a
bit better in capturing investors coupled with a welldividend was paid in 1952 and
investor interest. >
sold situation that should re¬
the eruption of the stock on
sist any declines.
A Foreign Business
volume now naturally set up
Beneficiary
a
good deal of speculation
Anticipating Earnings Results
Heinz was a specific case
over what action is
brewing.
With reports for the first
illustrating the bolstering six months of the
A Paper Candidate for
big steel
power
of foreign business.
Market Play
companies due next week,
More than half of the record
and the general run of profit
Both the market play and
net profit for the fiscal
year statements
about
to
reach
the
reported this week was at¬
many
mergers
in the '
flood tide, a considerable
tributed to the overseas oper¬
paper industry had petered
share of thinking was devoted
ations. The stock was able to
out a bit but the fact that
to
guessing specific results. Rhinelander
put on some spirited climbs
Paper hasn't
Some of the estimated results
that carried it to an all-time
participated overly in either
varied widely, particularly in
peak.
sphere served to bring it to
view of the lag in the ex¬
the attention of market ana¬
pected upturn in duPont earn¬
DuPont had an
irregularity
lysts. In fact, Rhinelander has
all
its
own.
Rather
wide¬ ings and the sizable trim in had an
unusually placid life
spread expectations of a stock Douglas' net. Some1 of the
*
injurious
many
many,
the heels of the passage
public clamor for this legislation? Indeed, no! Analyze
the protagonists and the opponents and you have the
answer.
Chief advocate is the SEC, of which—dealing
then with the Frear Bill—we said editorially in 1950:
'do
#
securities of which are
Fulbright Bill.
But
.
*
of the
some
effects which would follow upon
*
•
only
an¬
*
A similar timid, but clearmaintaining a
buoyant tone despite heavi¬ cut, return of popularity was
ness
elsewhere.
Some
esti¬ also apparent in the tobaccos
mates put the market value of which have had a rather pro¬
the
British
unit
at
nearly tracted stay in the investment
equal to the valuation placed doghouse. The change wasn't
on
the American shares by dramatic in specific cases but
the market. The stock is one was all-encompassing in that
of the minority in the indus¬ the group nudged ahead in
trial index that hasn't reached the face of general hesitancy
any historic price level, and and even selling pressure
its 5%
yield is one of the elsewhere. The tobaccos are
more liberal
among the index among the higher-yielding is¬
stocks, roughly double the re¬ sues with even the once-highturn
on
duPont
or
Allied ly regarded American Tobac¬
Chemical at their recent co selling recently at a price
levels. In many an analyst's yielding well above 6%. The
book it added up to a situation
logic was that sooner or later
prominent
are
Chesapeake & Ohio is
,
*
Fulbright Fallacy
over-the-counter.
traded
ahead
■*
3
page
mimitics enjoyed by companies the
and forge
6% bracket which also is well
and the early harmony, as ex¬
quietly when pressure
supported by estimated re¬
pected, kept the aircrafts on was lacking. Here again it was
sults of as much as $6.25 this
the heavy side with some con¬ partly a case of hopes that
viction. In fact, it was the freer world trade will enable year versus the $5.01 of last
year.
In fact, estimates of
prominent group on the list them to snap out of the recent
1955
rail
results
generally
of new lows. Highs hopes of a domestic doldrums. Interna¬
leave room for fatter
pay¬
new
tional
Harvester, while no
peace era turned atten¬
ments this year and, in addi¬
tion toward companies with skyrocket, was sustained well
tion, there are even some split
large foreign sales and of by hopes of expanded foreign
candidates
including Union
them were able to forge ahead operations. MinneapolisPacific #nd Rock Island. Mar"with some persistence even in Moline, which disclosed the
the face of selling periods in existence of a group deter¬ ketwise, these high expecta¬
tions found little expression
the market generally.
mined to take over and seek
this week and the rails con¬
out
a
favorable
sale,
and
Woolworth, widely regard¬ Oliver Corp. owed a bit more tinued to lag with the indus¬
trials, and even independently
ed as an interesting situation of their
strength to merger
when modest strength set in
because of its well-depreci¬ rumors.
*
*
A
ated British subsidiary, was
among the senior group.
an
frcm
payout of $2.50 for
sult.
effects
July 21, 1955
The Commercial and Financial Chronicle... Thursday,
(278)
Sure
A
we
remedy
inveighed against the abuses of the
was
1920's.
needed; but the SEC has been bad med¬
icine.
y
Commission, for years, has been trying to cir¬
cumvent the refusal of Congress to bring the over-theThe
counter market
Municipals
under its general
are
jurisdiction.
specifically excluded from SEC juris¬
in municipals operates quite satis¬
The market
diction.
;'
factorily.
"
Taking
Bank
were
lesson from this, the securities of the
similarly exempted.
a
World
problems are virtually being ignored by the
e.g., the existence of a large
number of
securities listed on exchanges which should be delisted
because of both the small number of transactions at in¬
Some
Commission,
frequent intervals and the small volume of sales therein.
Such securities have no business in the auction market
and
the
public
interest would be served best by their
traded over-the-counter, the market of which is
circumscribed by the capacity of a specialist. Here
being
not
wider public
much
dealers throughout
interest could be created by brokerthe country and thus provide a more
satisfactory market.
This is also true of the stock exchange
Many an investor can report
time consumed in
of bonds
block
time
rule which in
compels members to sell bonds on the exchange.
effect
absolutely
sad experiences and undue
even a small
attempting at times to sell
on
no
the exchange. Time after time, after
bids
can
be obtained
Exchange for many days on even 5 or 10
Here is
a
on
the Stock
triple "A" bonds.
definite indication of where the over-the-counter
dealers from coast to coast
could better
ing public. It is a proven metier. Does
serve
the invest¬
the SEC do
any¬
thing to right this? Of course not!
The
exchange
and
the
over-the-counter, markets,
as
should
be encouraged each to serve the
public in spheres
Volume 182
Number 5448
.The Commercial and Financial Chronicle
..
(279)
where it
half of
can
best
serve.
market
one
Partiality and favoritism in be¬
against the other and the creation
unpardonable.
of animadversion is
There
other
for
are
it
Taylor, General Counsel said it
to the Fulbright Bill.
as
times when
Also among
market is indebted to the ;
one
should be recalled
that
in
the
30's
many
a
To us,
■
exchange house was saved from bankruptcy because'
maintained a profitable over-the-counter
department.
The Commission exerts
own
out of the
powers,
-
We believe the Commission has
during its existence
good; that at great cost to the tax¬
it has injected itself into private differences in
no
public interest was involved; that it has tyran¬
harm than
1
industry to an extent where opposition
reprisals.
"I
be
evaluated
the
on
Securities
on
on
of
the
ask you
me
exchange?
ings
States
United
their securities listed?
McCormick:
Is it
But suppose
I
i
'
if
the
Commission
an
find1;
auction
The valiant
.
Per
field
and
their
The
motives
lic
Manufacturers,
therein
a
Cleveland
the
needless
,:;v
on
1,
—(Task
mission
such exchanges."
ernment
many
D.
C.
as one
step in Congressional
(paper),
Congress
we
are
in
securities
would
benefit
in
by
Bloc
The
in
the
7
'
believe the
of
purposeful
opposition mounts,
Congress is becoming increasingly
aware
obligation to defeat the Fulbright Bill.
Industrial Council,
16 Southern States.
'
Control
announcement
any
is neither
an
offer to sell
nor a
we
ard H. Cruzen is
of
Fund
of
1951
-
Street.
solicitation of 'an offer to
Veterans, Courts and Public Works Bonds, 4%, due 1983
Copies of the Prospectus
plus accrued interest
may
be obtained from the undersigned.
qAllen & Company
'
July 21, 1955
D.
C.
now
Chkonicle)
Cal.—Rich¬
with Mutual
Associates, 444 Montgomery
of these Bonds. The offer is made only by the Prospectus.
Price 98%
25,
to The Financial
FRANCISCO.
7.
Speaking for this bodyy Tyre.;.
to
With Mutual Fund Assoc.
in¬
established
Act
Washington
Republic of Cuba
throughout'
•
World—Report
(paper), 350,
(Special
mass
buy
1933, is comprised of employers representing industries
in the
150.
Activities
Government Printing Of¬
S.
fice,
against the Bill, and also in behalf of;
Southern States
Report to
Paperwork
250;
on
Economic
Free
the
Assistance
injury.
Inc. whose representa-'.
groups
of
Congress under Mutual Defense
would be strengthened
inspired belief that the proposed Bill is in the
1
;
Gov¬
*
Soviet
Fulbright fallacy finds its roots in the mistaken
tive, Charles A. Schreyer, appeared in its behalf before;
"
the
Management, Part II,
secu¬
of
employer
of
Superintendent
—
$2,500,000
voluntary membership association
the nation.
Report)—Com¬
Organization of the
Branch
—Superintendent of Documents,
of
14 other manufacturers and
Management—Part II
Force
on
approximately 20,000 subscribing members; the Manufac-1
the Subcommittee
Square, Brook¬
(paper).
Y.
Paperwork
thus hopeful of attaining addi¬
whole economy
This
specific"
a
'
v
National
turers Association of Connecticut
-
never
Association
are
Era:
corpora¬
(Dollar Series)
^
,
New
a
Institute
Rodgers — Kings
Court
ex¬
.'
make-up of the opposition,'in which
Embraced
of
more
stock
powers.
.
r
U. S.
Office,
Polytechnic
And I
personnel.
cluded, is significant.
Edge
Brooklyn
.
its duty and
applies to the
makes
Printing
Documents, U. S. Government
Printing Office, Washington 25,
markets
our
Senator Bush's apt characterization of the
proponents
enumeration of its
the
On
the over-the-
position of NASD will win for it
people who have something to gain, better
ending campaign for extended
Documents,
Washington 25, D. C.
was came
SAN
That
of
Government
public interest. Such legislation would result in dire pub¬
help but recollect that nearly all the proponents for
of the Bill
are
the view that
and
such action and
As
It certainly applies as well to the SEC in its.
•
intendent
We
contra, the ineptitude of the SEC continues to
add support to
and SEC
this would be to
the necessity for this Bill.
themselves.
compete with
listings of such securities
thereby.
mar-
history and background
power
United
for
Foreign Op¬
erations Administration and De¬
U.
gets into this thing,' the
one
there
—
a
subcommittee.
more
as
trading of securities of the
affected, and they
changes, the member firms who have testified here."
V
members.
Investors
partment of Commerce—Super¬
the
';r
I
following is the comment in part of Senator Bush '7
same
Such support
exchanges
markets for
The
inexcusably dangerous
for
own
"
Paraguay—Condi¬
Outlook
and
States
friends and adherents.
the over-the-counter market.
business
tions
in
N.
tional
place in the hands of the SEC, the traditional whittler of
are
need,
legislation from stock¬
our
(cloth), $7.50.
lyn
past.- Their
rities
think
In view of the Commission's
Bill
Md.
Investment
at
ket, that should be final."
the
or
Hopkins
Press, Homewood, Baltimore 18,
the public.
they did not want-*"' -regulation, the Commission should be abolished. The
„
cannot
this
no
Devel¬
and
Johns
Street
tions
-
-.
the stock market.
on
counter
your
about
say
v
that it is in the public interest to have
appears
for
or
organ¬
County Trust Company, Fulton
>
:
questionable
demand
find there is
we
Syria
of
Mission
a
Reconstruction
for
requirements in the
of stockholders
protection
no
over-
of
by the International Bank
the
this.
public hearing at which the SEC
Senator Lehman:
"I think the
of
ized
urged this type of legislation, not only currently but in
'
made before this
the
Development
—Report
hundreds of corporations
onerous
over
York, 65 Liberty
York
5,
N.
Y.
New
Executive
decide this matter,
yes.
The
on
cities
because
unnecessary
—
Mr. McCormick: I think the issuer should be in-
an
and
principally from stock exchange representatives who have
.
what
impose
holders, prospective investors,
Banking and Currency.
the
for
We know
July 1, 1955 before
point that the issuer should have nothing to
attend
arises
New
opment— The
determining their
whether securities of the
company are traded in on an
Mr.
opposition
noted little interest for such legislation in the recent hear¬
"Senator Lehman: Let
;
Our
provides broad
all
and
(paper), $1.00.
generally.
"The Bill would
McCormick, President of the American Stock
Subcommittee
vited to
Bill
corporate regulation of unlisted companies and the
deals with the subject of unlisted trading under
-
of; the
in
the
Cham¬
of
population
of
Street,
opposition to the
our
of
5,000
State
the-counter markets
following colloquy between Senator Lehman and
Senate Committee
v;
1
preparation of reports for which
Fulbright Bill, and took place
the
Bill.
this
express
Commerce
of
in
Commerce
of
States—List
bers
'
.
Exchange, is revealing.
It
Chambers
—Chamber of Commerce of the
;
either
The
of
today to
Bank
Abroad—Swiss
Corporation, 99
Gresham St.,
London, E. C. 2, England (paper)
Economic
qualifications.
Edward T.
here
am
burdensome restrictions and
in
strictions
United
Section
positions
as the heads of stock
exchanges. Quite naturally, if during
their tenure as Commissioners,
they favored the auction
would
British Exports and Exchange Re¬
is
are
from the statement before the Subcom¬
quote
enactment
for such members to be considered for
this
the NASD
of the Board of Governors of the NASD.
By choice of its occupants membership in the SEC is'
regarded as the early jump-off spot
lucrative positions in private industry; e.g. it is not un-
market,
of
mittee, by Harold E. Wood, of St. Paul, Minn., Chairman
of short tenure and is
common
decisions
We
-
is silenced for fear of
for
NASD
by SEC grace, and
subject to SEC review.
Such, in effect, are the provisions of the Maloney Act'
which gave birth to the NASD.
that
against it.
nized the securities
Here is heroic courage.
a
continued existence of the
-
payers
which
Dealers, Inc.
position diametrically contra to the SEC by the
NASD is daring indeed, when it is borne in mind that the
latter's.existence is due to the former's approval, that the
investigator, prosecutor, judge and:jury in cases eontested before it, wherein it is also a
party. Denominated
a
governmental agency, costs may not be assessed
more
Investment Dealers of
are
however, the big and refreshing thrill arises
opposition to the Bill by the National Associa¬
Securities
To take
as
done
of
tion
an
expansive effect upon its
through the medium of rule making. It acts
"strongly opposed"
was
Ohio, Inc.
stock
it
those against
15
16
Financing the Atomic Revolution
By MORRIS M. TOWNSEND*
Vice-President and
Director,
According
':
than
•
.
problem in obtaining the
graver
Warns inventors regarding
America is in the midst of three
without
Jutions
struction;
e y
des-
or
bloodshed
or
Yet
are
real
are revo-
violence
without
death.
t h
They
"atomic"
of
as
ft:
major place in
a
our economy.
In the large family of American
industries, it is a favorite child.
It was born full grown and noth¬
ing has been too good for it since.
and
as
In
significant
as
Government
has
e«nrmo"s
of <51? to
a n
shooting
y
revolution
the
world
The
changes
1
a
pre-natal
for its
-
far reach¬
they
is be¬
yond estimate
or
conjecture.
u
measured
financial
and
its
Act
1933
of
the
of
The
from
Investment
which
burst
last
at
and opened up the
wonderful
Now
of
the
into
being
split the
the
ders
marks
still
are
around
of tho time-tested
Many
u*
Each
is
distinct
complete
I
others.
itself.
and
T'ach is
some
the
respects, they
Some
The
rich
who
had
public
ally.
is
so
t
out
is
is
and
finonoinrt
a r->s4
4u.*n
and
that
it
of
none
scientific
filled
to
the
Without it, there could
been
our
now
the
industrial
here in America
into
overruns
all
the
far parts of the world.
Maior
SriVntifiV
mi
.
ine
ments
in
.
,
and
school
the
chemical
child
atomic,
,
fields,
knows
the
—
Plate
eion
of
1955*
Dinne?
Gannl^Sed aryh-!
Engineering,
Erie,
g0
have
we
of
our
in
the
the
a
rulers
minds
the
of
dollars and all
neighbors
on
a
but
level with
We must put
.
our
own
Pa.,e July 'i3~,'
applications
uHnns
revolutions.
°*
,
■
_
„
Hiffh
innnmo
taxes have been
widening the
wealth.
on^
High income and
As
a
es-
major fac-
a
in
distribution
result,
in
the
years 1953 and 1954 nearly a third
all
the
spending
units
in
the
nation reported incomes of $5,000
more—and only
comes of $10,000 or
5%
or
in the
as
—
same
its
_
_
time
had
more.
submitted
been
atomic
en-
total cost of
a
$zuj million.
tnan
of
ot
some
some
our
our
f°f cons'ruction
f?.Cll±eLt° kilowats tl
of 700,000 P™d.U.C.! of
electricity at
of
read
we
by
Dy
suomiuea
aggregate
poration
one
more
Almost
daily,
another
or
expanding
M"*t
cor-
into
the
thp«e
of
new
The "Atomic
To
the
tion need
only
with him in ilieir thinkbills, H. R. 5211 and
riM H. R. 512 are yet to be acted upon.
caught
private
!
" -'
inthe
But
<
race
Yet the
odds
midst
of
spendingVr W bright
all
new
method of
the
some
or
Wrid tion at
j"
before<P™gra7^ / \^+l or
will'
us, the solution of which I believe of to° httle.-too late,
ui we wm
is even more urgent than the fi- resort to some unorthodox ways
nancing of the atomic industry. of .raising the nfces^ry i:unos .
We must have the money to pay which are sure to be lrordmaieiy
f0r essential public
construction expensive.
the next decade.
We haven't
jn th<
I have observed in my business;
there
is
a
problem
grave
wp
,
,,.
is a need
of meeting
requirement
for
this
is it, though not always in a manner
somewhere between $200 and $225 that might be described as in the
that
the
mini-
billion in the 10 years ending 1965.
of this
be
totai, $100 billion will
vast
required for highways and $32
billion for education.
structed
to
About 950,must be con-
classrooms
new
keep up with our in-
Only 60,000 were
indicating a
creasing need.
that
life
itisnow.
estimated
' '
mum
It
there
where
there is always a way
public interest.
Financial insti-.
tutions are at all times ready, willing and able to extend a helping.
hand to industry. In financing the
atomic revolution I know we are
a
solid basis.
I only wish I
could say as much for public con-
on
struction.
A corpora¬
announce
five
up
lose
at first and may not show
money
profit from
any
Securities Salesman's Corner
10 points.
or
that it will
are
ture5: for five
its
or
atomic
By JOHN DUTTON
ven¬
10 years,
even
if
Some Prospecting
at all.
As
Investment bankers and brokers
tell
you
that
the
these atomic babies
are
of
stocks
the easiest
dispose of—that all sales resistthe
at
sun
like
evaporates
ance
dew
in
the
mention
mere
of
the
interest
public
investing
in
in securities increases (as it is at
this time) the opportunities for
building a clientele also improve,
Resistance is less for the securities salesman and as a conse-
Ideas
the prospect card which I
kept in my regular file. Several
months later I had a block of an
attractive bank stock to offer and
I telephoned to him. He did not
buy because he had invested his
fact
on
quence his efforts will meet with
greater success than during periods when markets are dull and
general
public
apathy
toward
available funds in some real cs—
current
stocks and bonds is the prevailing
and then I said, "Mr. Jackson, I'd
psychological atmosphere.
like to ask you a question, How
long have you lived in this town?"
He replied, "Only about 30 years,
magic
word.
in-
"
of
lifted
the price
far
corporate
and
Atomic
This
beextravagant and
an
the future.
on
is
in
money
of
where they
energy
or
has
some
earnings.
above
This is
growing
dollars
levels of
dangerous gamble
thing
the
speculative
not
a
sure
the bank
for
spreading revolutions in science
and industry and finance. A larger
will
go
out
business
of
when the so-called atomic bubble
breaks in the thin air of disillu¬
sionment.
And
sooner
is going to break.
.
Another related
place
are
the
for
uranium
is
market.
the
in
mi
in
Canada.
uranium.
United
There
have
Some
money—and
found
I
have
this
many
operations.
At
the
investment com-
our
a
major role
in creating new owners of Amer-
only 35
w
a
years ago.
Mfc>v.
that was
Yet today, only
few have survived and those few
are
giants.
In my opinion, the
casualty list of the atomic companies, percentagewise, will be
who
people
who are
in
higher
tnv
irw
might
wish
c™,nH
who
thncp
Or those
bonds
to invest in some siocks mai couia
grow
in value. Of the names of
people
who
might want
income
Don't
some
some
which
to
live,
will receive—that's all there
is to
friendly way for a few minutes
a
J received
who
hp
a
pllnty
pieniy
taining
wining
time
half
nhnnt
nwnc
inst
rountrv
bov
°o
of money
oi.money
IU
the
countv
he's
but
invest
ilivesi.
got
Then
llicfl
there's Charles So-and-So. If you
call on him you'll probably find
him
in
out
his
hoeing
garden
around with some old clothes on,
but don't let that fool you, he's
so
loaded that he doesn't know
much he's worth.
how
of
your
Show him
tax-free
two excellent
bonds."
case
it.
that I didn't know existed. No call
a
recently. This will
Several months ago
call at my office from
was
some
interested in ob-
information
*
about
bank in our city. At
there was a stock split
the leading
the
about a few of these people
might be interested in this
stock and with whom I might do
some business once in a while."
He said, "Why sure, there's Mr. C,
me
Here
who
man
know, and possibly you could tell
some
it.
illustrate
a
on
just ask for the names of
people who might invest in
stocks or bonds. Suggest and
I had
There
automobile companies
uutumwuiic V.V1IHJUHH.J
j
people
of
names
you
on
Let's lo°k back to 1920.
were
few
a
income brackets and
who might be interested in hear-
the
are
Sayings Bonds to in business then, and
panies have assumed
the
States
looking for
it.
Some are staking out claims,
But only a handful will ever make
any
;
interested
in
doing
SOMETHING SPECIFIC. Ask for
be
more
Some
of
know
to
might
some
the
i continued the conversation in
a
The basis of this simple why do you ask?" 1 said, 'Maybe
You know I
procedure b the same as prepar- you can help me.
ing the ground for any other sale only have lived here a few years,
dangerous
several hundred of these
now
companies
and
later it
tate.
Pects.
•
and
investor
mining
or
The trained life insurance agent
has learned how to ask for pros-
competent authority.
years' the
has had to
"«u
™
—-
And
flood
is
were
wasted
you
you
you
prospect
while
sell.
If
if
prospects
are
doing business with
of the corporations in your
community, if you have partici-
some
pated in some local underwritings,
if you call on institutions, banks
shorter.
This is because so many
and insurance companies, don't
with
companies engaged in other lines, the same time. I found out that forget to meet the officers of these
biIlion and more than one million such as utilities and manufactur- he would like to know about other companies. The time to work
shareholders. Some of them, such ing concerns, have added an bank stocks if and when they be- hard at meeting new people is
ica's
industries.
more
than 150 of these companies
total assets of more than $6
as
the Axe
There
Science &
are
now
Electronics
atomic
division.
And
for
a
con-
.
other
financing is set in mo- >
his
unless
But
that it is
going into the atomic field to have
its stock
,
'
The Grave Problem Before Us
.
:
up
*nd Phis
in
the
public,
word atomic is magic.
and
constructed last year,
Babies"
investing
public
f
000
earnings or new security
offerings to the public.
war
Government
push the sale of
finance
of
knowledge it has acquired by reand experiment is turned
over to private industry.
As' one
example, proposals have already
number
lng economy are paying the way
for the scientific and industrial
tor
„
Kearns, hasdiagnosed the ailment and offered '
Honorable Carroll D.
.
by
flinric
as
search
our
selfish interests last,
■
—
■
unless
revolution
ourselves.
Federal
atomic age is here. And the atomic
industry
to most of us who have
investigated its potentialities
is
Gold
futur7for
nothing
,
develop-
.
electronic
Every
so
has
opportun-
an
us
-
been
in
before
bring
rpvn
.
the
Congressman,
these stocks to 50 and 60 times the
great
the
hearts
Now'
p
,
nave
research
sum
can
Tipvpinnmo^c
scientific
major
time
long.
advances that have
cup
a
much.
human endeavors,
get ahead with-'
mdisoensable
other two.
have
vast
so
gener-
adequate financing. And this
why the financial revolution
was
in
put
can
o^pmmtp
directed
been
dreams
Many
richer.
about
Your own
nonulation
nf
|istingujshed
as
million.
ergy, an increasing amount of the
the
Financial Revolution
As I have said, the financial
suffering.' revolution and our ever-expand-
have
benefitting
many
revolution
no.
little
has
ht
yeti
our
\
will, be
than
more
T
nanced
$ 16Va
/
.As the Atomic Energy Commission learns more about the peace-
kerosene
Never
so
world—all
fol-
are
getting
A great many are
Like
so
are
the
have
lowing the historic pattern.
of
u
they
1955,
is
and
join.
In
In
another
approxi-
fifXtep£ a Solutionifcrcure.
JPpognZY of
for financing the program
his col-
and
consumed
tions—a
Neverthe¬
circumstance
about
produced
1954
*21^Wndltures W ^
$13.8 million
operations
fourth and greatest of a'l revolu-
have
less, they do not merely co-exist.
Time
word-of-
have
op-
During
expenses.
of
pound
a
costs
tnclty—°r enou«h t0 hBht UP
Manhattan Island for 10 full hours.
and
approximately ^ mll^'in
erating.
place,
«yc million kilowatt hours of elec-
relating
field
retained
were
time.
Anfj
the
unto
a
to
house,
^energy
atomic
first
uranium
And —something like a dozen a year,
atomic submarine engines, as
The financing of our educational
reported recently by Westing- program is lagging far behind the
mil-
*
many people,
by nature separate and
from
invested
been
ity
designs for liv-
the revolutions
of
the
to
the
scientific and
SOnnel of the
costs approximately $9,000.
pay-
„
lion in capital eauioment
to
there
ing still remain.
named
from
energy
short
But many of
.
.
professional perAtomic Energy Cornmission and private industry will
come to about 20,000.
Meanwhile,
the number of qualified physicists
f0r
"lately $20 to $30 and its heat being turned out by our colleges
equivalent in coal is 1,500 tons and and universities is appadmgly low
These
inventories,
.
.
.
will
been
only beginning to unfold.
the old familiar land-
are
tt
was
horse and buggy to
Never 5ef0re has
won-
uuiiu,.
bonds.
vatePindustry 'invested $22^1'
periment with it.
changing the
The material
world.
were
of
ment of long and short t^r™ h^nk.
corporations and leading uni¬
versities.
Only a few new cor¬
porations have been formed to ex-
shape and substance of the things
of
from
In
refined
loans and other current liabilities,
est
The architects of
are
They
beginning by the Federal
Government, assisted by our larg¬
in the bright dawn
age
earn
from the
frontiers of the
are
atomic
to
contrast, the development of
atomic
atom
day.
we
new
a
the
In
promised land.
new
the
accomplished
primarily by the creation of new
corporations.
The scientific—or atomic—revo¬
man
had
will be among the first
wonders of the atomic age, of our
great three-in-one revolution.
charges, $1V2 bil¬
telephone conversation,
television—all
armed forces in World War II.
when
in
to the electric light, from
phonograph horn to radio and
the
step-ups
preparations for supnlying the
lution
radio
the
lamp
production
of
transition
to
automobile,
The industrial revolution which
out
these
livings.
own
mouth
Company Act of 1940.
grew
1900's;
o,p^.; ^ re^arch
help in their development.
sphere of influence with
passage
of
automotive in-
industries
plants
and
figures after giving effect
net
reduction
UfU",ty
privately financed and there
wid¬
and
the
All
their
which
revolution
in
television
1920's.
began with the enactment of the
and
C°iIVpa[e t-hlS'-lf y0UeWju' t(J t,he
Se powe/anS
the whole
on
against
the vastness of time, these revo¬
lutions are not new.
They have
been in motion for years. In the
the
and
dustries
Except when
ened
stu¬
"einduftTv Tn Sthe 1880%
They will have
world.
Securities
this
a
investing heavily in its
their
appropriations
increasing daily.
are
M. Townsend
Morris
American
The
$4,000
is
t,
amount
earnings, $6
depreciation
corporate
lew
new
to
much.
also
are
profound influence
a
year
upbringing.
future
Thev will affect the lives of
every
now
a
pendous total, private corporations
much,
at" 1 e a s
its
on
is
it
every day or, about
minute.
In addition to
will go
sure
and mine
And
• care.
the
billion
of
farther
But this
lavished
This figures out to about a quar¬
ter of a million dollars every hour
ing. How much
-
sum
the Federal
years
spending about $2 billion
ready wrought
are
12
past
of your tax money
has
known.
the
More
this
lion from the sale of capital stock
and the balance from the issuance
are
swiftly assuming
from
other non-fund
and "uranium" speculative stocks.
great revolutions.
of
retained
from
billion
for construction in the next decade at $200 billions and says
America is in the midst of a three-fold revolution—financial,
industrial and "atomic."
billion
$3
came
Estimates the minimum requirement
ing the atomic industry.
it required more
billion to finance our
$11
than
The financing of atomic power industrial Forum relate? this comPlants should not be very difficult pelling need for new classroom
Particularly when the cost of facilities to the atomic energy
building the reactors has been reprogram.
By 1958, the researcnduced to a practical level.
These ers found, the total requirement
Federal
recent
a
large corporations in 1954.
to pay for essential public construction than in financ¬
money
to
survey,
Reserve
'
a
scientific de-
new
velopments.
Axe Science and Electronics Corporation
Mr. Townsend holds there is
siderable period of time these new considerable step-up if the 1 divisions will account for only a year program is to
minor part of the company earn- through.
ings.
A recent survey by the Atomic
Corporation, were formed specifically for financing atomic, electronic and other
1955
Thursday, July 21,
The Commercial and Financial Chronicle...
(280)
pending and a change in dividend,
I gave him this information and
had a friendly chat with him at
came
available
and
I
noted
this
when business is good.
,
Number 5448... The Commercial and Financial Chronicle
Volume 132
Sees Atomic Power in Competition With Goal
And Oil Within Decade
right
on spending as if nothing
happened. They just don't
to scare as easily as they
had
seem
Congress Group lo Study Effects of Automation
used to."
Rep. Wright Patman (D. Texas), Chairman of the Subcom¬
Consumer
Dr. Lawrence R. Hafstad tells Graduate Students in
Banking
source of
competition of Atomic Power with other fuels as a
energy will come sooner in foreign countries.
Electrical power
generating in¬
atomic fuels will
Energy Commission from 1949 to
probably become competitive with
coal
and
fueled
plants in the
During his address, Dr. Hafstad
emphasized that the applications
of atomic energy in power instal¬
stallations using
States
United
within
the
next 10 years,
according
t o
Lawrence
Dr.
R.
Hafstad,
director of the
Atomic
En¬
Division
ergy
of The
Chase
1954.
lations and in other fields includ¬
ing medicine are still in an ex¬
perimental stage.
"The economic possibilities of
atomic
ing,"
research
he
just
are
emerg¬
said.
"It appears now
that when the developments from
spending in the first
quarter of this year was at an an¬
nual rate of $242,000,000,00—the
highest ever, reports Dr. Smith.
Ample
buying
power,
lower
taxes, and relatively easy credit
have helped push buying to in¬
creasingly high levels for the past
several years, he says. Also, most
goods have been improved in style
and
quality, and
prices
have
changed
very, little
for
about
,
three years. ;
But
will
^
"
almost inevitably
up again soon, he pre¬
dicts, "With organized labor win¬
ning its demands with relative
in the current round of
con¬
can be applied, for
ex¬
tract negotiations."
ample in medicine, the production
Of major concern in the eco¬
of isotopes presents an opportun¬
nomic picture right now, adds Dr.
ity for banks to make loans which?
Smith, is the rate of continued
will be
•
Manh
ttan
a
Bank,
New
City,
York
who
cently
to
Lawrence R. Hafstad
the
tion with the production of atomic
of
Corporation in Detroit.
which will
continue
under control of governments; but
they will be made to the manu¬
facturers of equipment which will
use atomic materials or products."
"Atomic energy as a sourse of
will be competitive with
other fuels in foreign countries
than in coal—and oil-rich
Dr
America," Dr. Hafstad added.
Dr.
Hafstad
before
a
spoke
June
on
22
general assembly at The
Graduate School of Banking con¬
Hafstad
that
stated
present time there
the
at
30 reactors
are
in the United States and four large
installations
Association at Rutgers University.
More
than
1,000
bank
officers
being built for
private industry for the produc¬
tion
of
electrical
power.
The
American
government has also
from
authorized
ducted
by the American Bankers
all
who
sections
heard
the
the
to
country
the
at
address,
slide-illustrated
nomic
of
students
are
G.S.B.
which
was
show the
possibilities
of the
growth of credit,
eco¬
devel¬
opment of atomic energy.
The
are
the
from six to
construction
of
12
experimental pow¬
developments in other coun¬
as this field is expand¬
ed, the need for bank credit will
be enlarged.
er
tries; and
construction
"Because
of
speaker had held succes¬
sively the important posts of di¬
tors and
rector of research
of atomic power is relatively
at the Applied
reac¬
equipment for utilization
ex¬
Physics Laboratory of Johns Hop¬
kins University, executive secre¬
tary of the Research and Devel¬
opment Board of the Office of the
Secretary
was
De¬
tively short amortization period,"
Consumer
con¬
about
ago.
"And it
$31,000,000,000
$2,000,000,000 from a
year
is reasonably accurate
to say that the nation's total cred¬
it has expanded not less than $21,-
000,000,000 and probably closer to
$25,000,000,000
over
the
past
year."
Credit has been a major influ¬
ence in business activity since the
end of World War II, says the
economist, and it could lead to
trouble.
of
Defense,
first director
of
and
the Reactor
velopment Division of the Atomic
We Are In A
pensive and they are still in an
experimental stage, this equip¬
ment may rapidly become obso¬
should
Dr. Hafstad
have
rela¬
a
conceivably could be¬
so
large that the sheer
weight of the commitment might
come
creation
the
of
the
very
income from which the debt is to
growth of
consumer
credit
as
major
28
of
Bank
National
Dallas, Texas, American pros¬
perity
seems
for
headed
new
high
1955.
An
nomic
a
in
eco¬
boom,
that
the
fall
could
be
not
con¬
Some of the
major indicators of
the boom which he lists
Dollar
volume
are
these:
construction
of
activity
14% ahead of last year, with more
n
be
to
derway
throughout the
land.
currently
tharu $41,000,000,000
than
more
likely
to
be
spent this year.
Automobile
production for the
six months was the largest
record, 4,270,000 units, and the
year's estimated total of 6,700,000
on
"Econom ic
will
Letter" of the
record.
First National
Dr. Arthur A. Smith
is
first
Writing i n
the
monthly
Bank
of
Dal¬
las, Dr. Smith
break
such
all-time
1950
industries
Key
the
"In
some
electrical
as
more
seem
be broken
year."
certain to
before the end of the
Very few forecasters a year ago,
noted, dared predict that the
1955 econoniy would be a record-
he
breaker, "yet the first half of the
points overwhelmingly in
that direction.
It is a boom
year
...
Within the past year
and a half,
Dr. Smith adds, monetary and fis¬
cal
authorities
in
Washington
were
concerned with how to check
what seemed
to be
a
sure
reces¬
sion. But today they are concern¬
ed with the
"Once
opposite situation.
more
there is worry over
the first five months of this year
is 5.5% ahead of the same period
the
are
Charles
Merrill,
t,
p or
an¬
the
Subcommit¬
tee's
pi
and
proce¬
dures
for
of
toward
"automation."
Sub¬
committee
to
AFL.
hold
be¬
plans
tween
Oct.
Walter
invited
^
.
ing out of the
hearings
has
President, Congress of
Organizations;. Frank
Pace; Jr., Executive Vice-Presi¬
dent,. General Dynamics Corpora-?
tion; Champ Carry, President, The
M. W. Kellogg Company, engi¬
neers of petroleum and chemical
processing installations; and Otto
Pragan, Research Director, Inter¬
national Chemical Workers Union,
problems aris¬
The
Mitchell, President and Chair¬
Board of Directors, Sylvania
Electric Products Inc.; and James
B. Carey, President, IUE-CIO.
During the-week of -Oct. 17 the
Reuther,
the
trend
G.
Industrial
the
study
Chair¬
Hoffman,
baker-Packard
Committee
a n s
During the week of Oct. 21 the
Wright Patmaa
10
Committee
has
invited
W.
D.
develop a body of facts
dealing with the broad social and
economic
implications
of
new
Brosman, Vice-President, South¬
ern
Railway
Company; W. P.
Kennedy, President, Brotherhood
automatic
of
and 28 to
electronic
and
proc¬
The Committee is especial¬
esses.
ly concerned about the problems
which have arisen and which may
be
expected to arise in the fore¬
seeable future from the
standpoint
employment levels, personnel
displacement
and
readjustment,
stability of employment, and the
effect upon costs and investment.
The Committee plans to hear from
business
of
number
a
Railroad
Trainmen; John I.
Snyder, Jr., Chairman, Board of
Directors, U. S> Industries, Inc.J
George Meany, President, Ameri¬
can Federation of Labor; John L.
Lewis, President, United Mine
Workers of America; Edwin G.
Nourse, economic consultant; and
Vannevar Bush, President, Carne¬
gie Institution of Washington.
The
labor
and
Subcommittee
author
A.
Automatic
the
Mitchell, U. S. Department of La¬
bor, to obtain the results of De¬
and other installations illustrative
of the problems of rapid techno¬
logical advance.
In
the
to
Chairman
Pat¬
consists
Subcommittee
The Ad¬
of: Senators Joseph C. O'Mahoney
(Wyo.), and Arthur V. Watkins
(Utah), and Representatives Au¬
gustine B. Kelley (Pa.), and Jesse
P. Wolcott (Mich.).
Arthur, Chairman, Board of Di¬
rectors, Sperry Rand Corporation;
of
addition
man,
Astin, Director, Bureau of
Standards; General Douglas Mac-
reau
already
partment studies of a series of
specific cases and an analysis of
the problems which have arisen
in offices, metal-working plants,
V.
Robert W.
has
Factory";
"Automation:
of
of
vent
Subcommittee
arranged with Secretary James P.
invited
has
Burgess, Director, Bu¬
Census; Howard
Withi. A. Huey Co.
the
(Special to The Financial Chronicle)
Coughlin, President, Office Em¬
ployees International Union, AFL;
Henry Ford II, Chairman, Board
DENVER, Cblo.—Paul M. White
is now connected with L. A. Huey
of
Co., Ferguson Building.
Ford
Directors,
This is not
an
Com¬
Motor
offering of these Debentures for sale,
buy,
any
or an
offer to buy,
or a
solicitation of
an
offer l+>
of such Debentures. The offering is made only by the Prospectus.
Hemphill, Noyes & Go.
Expands Corp. Dept.
,
than
Hemphill, Noyes & Co., 15 Broad
City, members
of the New York Stock Exchange,
announces
it
has
recently ex¬
panded its corporate finance de¬
partment through the addition to
its staff of Thor W. Kolle, Jr.,
Hugh G. Petersen, Jr., and Pearce
ever
Mr.
before,
an
more
Gross
na¬
Product—
the output of all goods and serv¬
is
its
highest
peak on record, running close to
an annual rate of
$380,000,000,000.
But the chief impetus back of
current
at
economic
boom, says
Dr. Smith, seems to be personal
consumer spending.
"Consumers
little
54
2>Vi% Debentures due 1965
Dated July 1, 1955
or
no
apparently
attention to the
recession," he
says.
paid
1953-
"They kept
Due July 1, 1965
Price 99.50% and accrued interest
Kolle
previously
had
been
with
the
with
the
Hawaiian
Copies of the Prospectus
Pineapple Co. and Mr. Smith was
formerly with the American
writers only in states in
may be obtained from any of the several underwhich such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.
Brake Shoe Co.
With Walston & Co.
T.
Maxwell
has
joined
the
265 Montgomery
Street, members of the New York
San
and
Francisco
Stock
The First Boston
staff
of Walston & Co.,
Ex¬
Hornblower & Weeks
Blyth & Co., Inc.
(Special to The Financial Chronicle)
estimated
significant, the
National
Corporation
York law firm of Appleton,
Rice & Perrin. Mr. Petersen was
SAN FRANCISCO, Calif.—John
Even
the
Pacific Finance
New
57,000.
tion's
$20,000,000
Street, New York
last year. The petroleum industry
this year will drill more wells
ices—currently
look at it."
any way you
July
of
President; Claude F.
Turben,
Executive
Vice - Presi¬
dent; Charles F. Kling, Lewis C.
Williams and John Hay,
VicePresidents, and Hazel G. Dike,
Secretary-Treasurer.
steel,
chemicals,
rubber,
equipment, and farm
respects
all-time records have been set and
Economic
e
nounced
G,
Board of Directors, StudeCorporation; Don
man,
man,
D. Smith.
aluminum,
current machinery boast records or nearbusiness activity seems not only records and heavy prder backlogs.
Production of crude oil during
incredible, but sensational. New
says:
on
on
trolled." he says.
"truly fantas¬
u
members
Officers of the firm
tic boom," ap¬
pears
Exchange,
become
Exchange, when
Charles B. Merrill
will acquire
an
Exchange membership.
B.
omist of the First
will
New York Stock
possibility that the economy
may get out of hand in a run¬
away boom which would culmin¬
ate in such a top-heavy reversal
Joint
on
Paul
pany;
following persons to meet
with it in public hearings. During
the week of Oct. 10: John Diebold,
Merrill, Turben to
Midwest Stock
the
the
of
Eco¬
the
economic picture.
According to
Dr. Arthur A.
Smith, Vice-President and Econ¬
the
The
CLEVELAND,
Ohio — Merrill,
& Co., Inc., Union Com¬
merce
Building, members of the
in the current
concern
Stabilization
Committee
inflate."
can
Turben
Smith, Vice-President and Economist of the First
National Bank of Dallas, holds, in some respects, current
business seems not only incredible, but sensational.
Sees
nomic
on
serviced," he says.
leaders in those industries most
Then something would have to
affected by recent and prospective
stretch
"in
order
to
keep the technological development, par¬
whole structure from breaking,"
ticularly those persons who have
he
added.
And
that
something had specific experience, or have
likely would be the dollar, "which
given high policy consideration to
has already proved how easily it
the role of new technology.
Be N.Y.S.E. Member
"Truly Fantastic Boom!"
of the Subcommittee
man
be
emphasized.
Dr. Arthur A.
On
July
14,
Representative
Wright Patman (D., Tex.,) Chair¬
of
"Credit
hinder
Economic Stabilization of the Joint Committee
on
Report, announces plans for hearings in October
develop a body of facts dealing with social and economic
implications of new automatic and electronic processes.
to
credit
stands close to
now
up
especially
lete. Loans made to finance atomic
installations
credit.
sumer
materials,
power
sooner
gen¬
Mo¬
re-
General
tors
atomic fuel becomes
of
use
As the
eral, then power installations will
require much larger loans. These
loans will not be made in connec¬
named
head
search
-
re¬
was
relatively small.
mittee
the Economic
R
;
prices
move
ease
research
17
(281)
Harriman
Glore, Forgan & Co.
Goldman, Sachs & Co. i
Kidder, Peabody & Co.
Lazard Freres & Co.!
Corporation
Ripley & Co.
Incorporated
Merrill Lynch,
Pierce, Fenner & Beane
Dean Witter & Co.
Bear, Stearns & Co.
changes.
F. S.
Joins Paul C.
Rudolph
Moseley & Co.
(Incorporated)
(Special to The Financial Chronicle)
SAN JOSE,
Gardiner
has
connected
with Paul C. Rudolph & Company,
of America Building.
Bank
July 20, 1955.
Salomon Bros. & Hutzler
The Milwaukee
Company
*
Schwabacher & Co.
Calif.—Harrisop C.
become
Paine, Webber, Jackson & Curtis
Central Republic Company
Shields & Company
^
Financial Chronicle
The Commercial and
...
Thursday, July 21, 1955
I
(282)
18
A
stances
an
to
Government listened
of being under
influence of ideological dog¬
the
annual meeting of the
says it
■will provide an opportunity for preparing the ground for ster¬
ling convertibility. Says the International Monetary Fund may
be willing to grant Britain dollar facilities, but warns amount
must be sufficient to relieve the pressure on sterling during
transition period. Foresees conflict between British domestic
policies and sterling stability.
Col. Trosler Officer
Of Yonkers Bank
on
power are now
support in one degree or
the surface to
event
m
f
of
of
point
the
of
view
progress
towards
con¬
It
provide
vertibility.
will
a
to
sions
transport
increase
vlr'ch in turn will be followed by
the
ground lor the
r<*ui
a
who,
utler.
in
in
quarters
which
until
recently
were quite willing to sacrifice the
stability of sterling for the sake
with
time he may
opportunity to ascer¬
tain the willingness of the United
States to go further in the direc¬
tion of liberalizing trade by reduc¬
ing the existing tariff wall.
The
an
outcome
sions
of
of
have
Fund
to
Kingdom dollar
Monetary
United
be
be considered in London sufficient
the initial pressure
arise
to
soon
as
convertible.
faintest
Nrbody
idea
extent
may wish to be
safe side by ensuring that
facilities
would
to withstand
that
sure
dollar
on
of
would
their
be
not
many
anxious
holdings in
seen
ternational
Monetary
be
nrepared
to
rates.
It is the
any
convert
will
Fund
satisfy
Mr. But¬
ler's requirements.
Nor is
by any means
whether the United States Admin¬
it certain
istration
will
dertake to
it
be
prepared to
un¬
much further than
already done towards the
has
mitigation
go
barriers.
Customs
of
Possibly the improvement of busi¬
conditions
ness
Ptates
may
istration
offer
further
sions for the sake
the restoration of
On
of
certain
possible
for
tember
to
definite
Mr.
pen
between
and
it
Fund
now
the
International
meets the credit
Britain
may
drtsired
results.
have
likely, however,
It
that
by the
squeeze
produced
the
the
Bretton
principles, should now go
their way to bring about
of
Possibly the
their abandonment.
of
reason
price of $3 per
this change
will
This additional
capital will enable the
to accelerate its sales
establish bank credit to
capital.
working
working
company
of
periods
seasonal
greater
connection
of attitude
spiral
.which
hardships
cessive
inflicted
the
on
immense
United
'thirties.
the
during
deflationary
States
Yet
deoreciation
of
an
moment when the American
has in any event
econ¬
Corn,
is
ment
and
and
model
the develop¬
manufacture of table
in
donment of
a
stable exchange rate
incalculable
entail
Even
as
enough
things
to
conse-
are
and
highly
for
advanced electronic equipment
the
U.
U.
S.
Corps, and the
The company's De¬
Signal
Navv.
S.
Engineering Division is
presently engaged in the re¬
search
of transistor applications
velopment
incorporation of
further
the
the manufac¬
ture and development processes
their
the
sidiaries
year
ended Feb.
and its sub¬
consolidated
had
of $3
gro^s
634,547 and consoli¬
dated net income of
the
ao-
of
in
the
safeguarding
balance
of
once
in
consumer
demand
rate,
by
allowing sterling to denreciate a little further.
It is only
just
results
and
as
a
good
rate of
of $2.70,
$2.50 just as good as
as
a
rate
discon¬
proposition of democracy — that people
permitted to manage, indeed, will insist upon
managing their own affairs — appears unassailable. At
least this appears to be true as of today in those countries
such as the United States, Britain, France, and the other
confirmed democracies of the world. Whether other peo¬
always revert to some system or other which
dictator (whether called a Fuehrer, a Duce, or by
other name, is unimportant) is a question which the
ples will
sets up a
some
long-term future alone will answer. For our part we can
understand how our type of democracy appears
well
strange and unworkable to peoples with other and dif¬
ferent traditions, but our fate, whether we like it or not,
is
clearly linked with some form of
This leaves it clear
popular rule.
enough that government in this
country presents two different types
and foremost, sound and constructive
cies must be formulated,
be at hand
or
of problems. First
governmental poli¬
and then ways and means must
devised whereby these
policies
can
be
as¬
popular support. Real progress, moreover, re¬
quires that that support be sustained—not merely induced
at one election or for short periods of time through emo¬
of
sured
the popularity of some single individual.
well be the more difficult of the two,
thanks to the presence of clever, but small minded men
who are adept at crowd pleasing and making the worse
tional
appeals
or
appear
the better reason.
are,
of
course,
perfectly sincere and rational
opinion among the individuals of any coun¬
many
Colo.
—
Orville
L.
with Bop+tch^r
823
S^ent^^h
now
Companv.
_
try.
affairs and
other things—naturally differ from individual to
individual.
Jack E. O^msbe® Now
With Carroll,
Kirchner
(Special to The Financial Chronicle)
DENVFR. Colo.—Jack E. Ormsbee
has
become
associated
with
Carroll, Kirchner & Jacquith. Inc.,
Denver Club
Building.
was
tensen,
Mr. Orms-
formerly municipal bond
Inc.
Sterling A. Meyer has also been
added to the firm's staff.
One man's interests may appear to
be—and
obcasion really be—in conflict with the interests of
society as a whole. It may seem that some public measure
while working injury to the pecple of a country as a whole
is still to the advantage of some group of citizens. Yet one
upon
buyer for Peters, Writer & Chris-
more
great rank and file. It is the more
Stock Exchange.
is
bee
will be considered
world-
long-term advancement in the
be
must
differences of
Chronicle)
the idea that sterling must be held
costs is abandoned,
of $2.60
the road to
on
Honest Differences
the first steo that is difficult. Once
rate
country—to say nothing of the
this
Street, members of the New York
at $2.80 at all
a
painful reminder
real public service and
pounded by the politicians.
There
pro¬
coidd be offset, temporarily at any
.
more
These differences concern many aspects of public
public policy. Views about basic policy—the
form of social organization, of economic principles and
DENVER,
Bamberg
they realize that
excessive rise in cost of
and
see
$65,252.
(Special to The Financial
nayments., There will be no hold¬
ing of them
a
The latter task may
comoanv
fiscal
1P$5. the
income
of
products.
new
For
23
it is
induce
trade unions tao restrain their
sake
to
welfare of the
portable radios, high-
phonographs
fidelity
a
think
certing since it points eloquently to a basic weakness of
democracy. It to our mind quite effectively demolishes the
old notion of vox vopuh nox del at least as ordinarily ex¬
Joins Boettcher Staff
ain's domestic economy the aban¬
difficult
Electronics
&
engaged
rendering
\
we
penalties which often have to be paid by public
citizens of real ability. It is a reminder which
much troubled the minds of those who would like
deflation¬
a
From the noint of view cf Brit¬
oupneps.
of
,
Radio
Herold
trend.
might
purchase
materials.
ex¬
sterling
might easily cause a repetition of
history if it should occur at a
in
the
with
automation through
the
of
discounts
trade
of
advantage
general and
more
a
of course,
,
Yet the basic
proceeds from the financing
be used by the company as
Net
and
return
a
ary
and
& Co., Inc.
Hallowell, Sulzberger & Co.
Blauner
of
omy
bv
19
Julv
on
lies in the disanpearance of fears
duction
a
Monetary
seems
Woods
to
Seotember,
that
irony of fate that
having virtually
Britain
on
any
restoration
and
forced
Sep¬
Much may hap¬
conceivable
is
in
himself
the
for
con¬
to make it
Butler
commit
date
as
of
the United States
~uf
a
made
petite for wages increases for the
it is by no
that domestic
convertibility.
ftwr>e
assisting in
the other hand,
means
conces¬
convertibility.
ditions will be such
of
the Admin¬
encourage
to
United
the
in
the
mean
Bretton
It rewhether the In¬
vnains to be
would
exchange
haste.
a
race
the
of them
to
It
nuzzling.
depreciation
system of stable
of
sterling that
stock at
was
Weill,
'thirties, is somewhat
ark
abandonment
adequate size
exist would reassure foreign hold¬
ers
r
Woods
that
knowledge
facilities
currency
the
his
pres¬
In
conceivable.
mere
the
of
the dol¬
the maximum
is
the
case,
to
sufficient
be
con¬
the
Butler and
advisers
lar
which, if carried to its logical
the
In
pressure.
eircumstances Mr.
share
inventory requirements,
dition, would put the clock back
have the
probable
can
the
about
that
of
even
it has become
as
100 000 shares of
Herold Radio & Electronics Corp.
of
eliminate
willingness of the United large factoring charges bv dis¬
present
factoring ar¬
Government to endorse and counting
encourage
such
a
policy rangements, and to take greater
States
against
that is bound
sterling
well
Slock at $3 a Share
common
is
'
serious side to all this. We have here a
turned back
meet
policies.
there
"But
leaves,
program,
The
safeguarding
at the cost of allowing
to decline further and
pressure
the amount of such facilities will
for
by
future to disclose.
minded
Mo & Elecircnics
further, rather than trying to de¬
is whether
question
The
the line of
yielding to
take
resistance
impression to be decisive in 1956 remains,
for the
of the
Orfering
desir¬
in which they
cry
of the difficulties of
Bankers Offer
fend it with the aid of unpopular
that
will follow the return to converti¬
bility.
it will
is abandoned
tempting to
least
sterling
facilities
during the transition period
come
on
rate of $2.80
International
grant to the
the
that
Now
the subiect. They
to realize that once the
thoughts
'
,
even
convertibility.
its
rrd
of course, be fore¬
There is no doubt about the
seen.
concern
proaching many people have sec-
cannot,
willingness
growing
the moment of the decision is ap¬
discus¬
these
of
developments are viewed
of such
the same
At
also find
The prospects
ling to depreciate.
grant¬
bank.
trustee of the
a
convertibility,
of
the British price level
would be offset by allowing ster¬
ing of which is one of the condi¬
tions on which he is prepared to
restore the convertibility of ster¬
ling.
as
rise in
the
person,
tensive credit facilities the
if sterling is made
restoration
the
year
every
attend
of wages demands.
crop
People's
Savings Bank of
Yonkers.
Hevwill also .continue
an
the
fexible simultaneously with
more
since 1952, will
will be able to
negotiate the arrangement of ex¬
in
as
new
Admittedly,
Mr.
change.
t*
Truster,.Singer & Co., 74 Trin¬
ity Place, New York City, has
been elected a Vice-President of
in
production and the cost of living,
pre-
partner
Troster,
Col.'Oliver J.
in
being able to build up a situation
go
1952
.
Administration forces
before the people with President Eisenhower's own
about cleaning up the mess in "Washington. So
far as may now be determined, there is no likelihood
that they will be able to provide,materials to compare
w.th those that the Republican partly used so effectively
in 1952. Whether they will succeed in making enough of
can
Oliver J. Troster
where
pains to avoid all appearance of evil.
naturally enough for politicians, ardently
are,
of
ous
leading to an
the cost of
charges,
pare
L»r.
They
end of
"opposition" is not resting with
record—and the gossip
instances
have not taken full
year.
all-round
opportun¬
n
ity for discus¬
,
It is scouring the
cases.
other
find
—to
What is perhaps even
more important, the repercussions
of the sharp increase in the price
cf coal announced early in July
will be still in progress.
Already
an
increase in electricity charges
has been announced, and it likely
to
be
followed by increases, in
this
rtance
p o
om
But, of course, the
these two
become
of payments may not
evident until towards the
ance
considerable
i
to
up
v
Still Searching
will be too inconclusive to
is likely to be
an
to enunciate.
mid-September
justify
a
definite
decision
concerning
convertibility.
The full eff ct of
the recent dock strike on the bal¬
achieved
Annual
Eng. —The
LONDON,
another certain
attacking politicians were not slow
innuendos which the
a
Meeting of the International Mon¬
etary Fund, which is to be held in
Istanbul during the second week
of September,
of
trying so hard to make something
out of would probably have caused a stir at any time had
the same thing been done in a slightly different way or had
those who were doing them, dealt frankly with the public.
But from first to last, apparently, one incident after an¬
other was allowed to occur in such a way that they seemed
public
it would
cost.
a
September, Dr. Einzig
It
opposition and the dyed-in-the-wool advocates
of the
defer converti¬
bility rather than achieve it a such
attention to the forthcoming
In calling
instead
reason
We See
As
demoralizing
utterly
effect. If the
matism,
International Monetary Fund in
Continued from first page
would
sterling
flexible
produce
EINZIG
PAUL
By
in
that
doubt
Steiling Convertibility Prospects
And the World Fund
There can be no
existing circum¬
rate of $2.60.
a
sometimes
wonders
whether
these
indisputable
facts
insuperable dif¬
ficulty were it not for the presence of ambitious political
figures intent. upon advancing their own interests by
would
present anything in the nature of
taking advantage of such differences as these.
The
controversy over public vs.
lies behind the
private power which
arguments about the Dixon-Yates
debate
Volume 132
is
in
(283)
Chronicle
Number 5448..-.The Commercial and Financial
received
those, of course, who believe
publicly owned power production, at least in very
substantial proportion, is best for the country and for all
the pec pie therein. But this issue has been invested with
-
case
a
point. There
are
tion
that
emotional content which
an
has,, little
reasoned conclusions about it.
any
been
cr eated
by the demagogs
A
and all decisions within
—-
&>»»«'
Missouri-Kansas-Texas
Followers
If
y
only
could deal with real issues in
we
a
the
of
"Katy" Railroad
were
recently startled by
the announcement, late in June,
realistic
way!
that
year
Special Markets, Inc. has been
formed with offices at 92 Liberty
share, $6 in 1954 and
Street, New York City, to deal in
1953, with payments in that
totaling $5
$3.75 thus
a
far
in
1955.
Earlier
mutual funds
and
this year, company filed a revised .curities. Ofconsisting
stock recapitalization plan with ficers of the
New York City, State Street In- the ICC, under which each share new firm are
vestment Corp. of Boston, Mass., of
$7 preferred stock, plus all Philip M.
'
\
(investment
trusts),
and
Bear, dividends arrears, would be ex- J enkin s,
William McChesney Martin, Jr., Federal Reserve Board Chair¬
Stearns & Co. of New York (in- changed for $140 principal amount President;
man, tells Subcommittee of Senate Committee on Banking and
vestment bankers) had purchased of 50-year 5% Income Debentures,
John T. Patmore
than
500,000
shares
of plus one share of $60 par value terson, Jr.,
Ctmx'Scy, since Treasury silver purchases are unnecessary
"Katy" common stock.
The an- class "A"
stock.
The common Vice-Presifrom the standpoint of monetary policy, the Federal Reserve
nouncement resulted in consider- would receive, share for share, a
dent; Earle W.
has no interest in their continuance under existing legislation.
able gossip and conjecture, with, new $10 par value common stock. Fisher, Secreinterest centering largely around
At a special meeting of directors 1 a r ^ a n d
On July 13, William McChes¬ has caused all silver domestically
the topic as to the reasons for 0n
July 14, four Eastern
men
Naudin J. Osproduced to be sold to the Treas¬
ney Martin, Jr., Chairman of the
such'a large investment in
the representing the new group which well, TreasBoard of Governors of the Fed¬ ury. To this extent, the role play¬
junior equity, since there were had acquired control of the road
eral
Reserve
System,
appeared ed by silver in our monetary sys¬
ur^'Mr. Jenkins
tem has been increased.
S. 1427 outstanding total dividend arrears were elected new directors of thn
Before a Sabon
the road's $7 preferred stoek
committee
of
proposes to stop this process by
It
that ^
^
Silver Purchase
'■
■
■
repealing those provisions of ex¬
Senate
eral
continuation
of the nation¬
f
domestic
sil¬
W. McC. Martin, Jr.
produc¬
ver
under
Purchase
of
tTZthdraw
34%
Commission
the
the
effect
that the effect of
the silver purchases necessitated
by existing legislation has seri¬
ously complicated our problems
of monetary management in re¬
cent years.
It is true that these
existing
Silver
monetized, may
when
purchases,
the
say
bank
member
increase
reserves.
compared with other fac¬
But
as
the
tors
influencing member bank re¬
would
affect
not
nation's monetary policies.
fects
text
in
serves
rela¬
have been
reserves
on
their ef¬
years,
Martin
tively small; and these effects can
Existing legislation
fixes the
price at which silver is purchased
by the Treasury, and sets a price
below which the Treasury cannot
sell silver.
The market price of
silver has been such, in recent
years, that this existing legislation
operations of the Federal Reserve
statement
Chairman
recent
of
fellows:
be
if
offset,
Since these purchases are
from the standpoint
of monetary policy, the Board of
System.
unnecessary
has
Governors
interest
no
in the
legislation
respect to silver purchases.
continuance of existing
with
outstanding,
shares
Bullish Factors in Business Outlook
'
&
present in the
now
Promising signs
business | horizon
the nation's
point to con¬
through
on
tinued high-level activity
the
second
eral
half of 1955,
Reserve Bank of
the Fed¬
Chicago
re¬
the July issue of its
publication,
"Business
Conditions." Likely to
buoy up
the
economy
in July-December
in
monthly
ports
period, the bank says in its month¬
are important sources of
now
present
on
the
business scene. Among these up¬
ly review,
strength
ward forces
are;
(1) Increased business spending
for
new
plant
and
equipment.
According to a recent survey, out¬
lays by late
will probably
summer
run
10% above the first-quarter
seasonally adjusted rate.
(2) Low business inventories
relative to current sales.
cent
month,
stock
climbed only 1%
low, whereas
in
12%
on
a
re¬
hand
had
above last year's
total sales
the
In
were
up
comparison.
Larger additions to stocks in the
months
ahead,
the
bank
says,
may
provide
same
an
added stimulus to
(3) Increased levels of employ¬
and
income.
After
slow
a
start, the number of wage and
salary workers has climbed 1.2
from
million
A
last
summer's
low.
scene.
have
con¬
tinued to do very well. Auto
industries
sales
both
thing
running at
are
record pace. In
a
addition, dealer inventories, which
had been rising rapidly through
mid-spring, have recently tended
to level off. Stock
to
about
the
on
hand amounts
month's
one
current
rate
of
supply
at
sales.
Housing starts, at 1.3 million an¬
rate, were only moderately
below
the
vjcissitudes
of
the
and
ratic
weather
on
er-
addition,
In
The
Reserve
out that auto
building
are
bank
also
bank
says,
time to
some
of work
virtually as¬
spending
for
volume
the
under
way
large-scale
sures
year,
tion has
road
from
worthwhile
net
able for the
reporting
common
stock.
tingent
charges
of $4,669,000
of $7
on
that
1945-54 net
likelv
to
hold
averaged
the
up
its
higher levels than was anticipated
at the beginning of 1955. For one
was
Wall
but
mar-
63.000
What
topic
Street
shares
was
nrovide^
for
million.
still
are
in
such
dividend
a
p
The
characteristics
the
territory
and
provide^
BOULDER,
With
elimination of
holders would have
a
Wayne Jewell
DENVER, Colo.—Bonee B. Mc_
Vittee and Thomas H. Whitford
have become affiliated wlth
Wayne Jewell, 817 Seventeenth
Street,
Joins Rogers
& Co.
(Special to The Financial Chronicle)
about it.
son
ferred dividends were resumed in
claim, which they would not have
&
by broad
expansion. Well
below
previous peaks at yearend, most measures are now push¬
ing into new high ground. Indus¬
trial production has gained more
than
6%
an
securities. The
well
DL'NVER, CoJo.—Jesse L. Nelhas .joined the staff of Rogers
Co., Kittredge Building.
marked
been
since
than
tail
is
5%
sell,
nor
a
solicitation of
an
offer to buy
any
of these
the
of
end
Herold Radio & Electronics
Corporation
Common Stock
1954.
of goods and
currently close to a
billion
to
offering is made only by the Offering Circular.
NEW ISSUE
Total national output
$375
offer
annual
rate,
(Par Value 25? per share)
more
last summer.
above
Re¬
Price $3 per
sales, too, have been running
exceptionally
strong
in
share
recent
months.
Copies of the Offering Circular may be obtained from such
With Allen Inv. Co.
undersigned
I
(Special to Thei Financial Chronicle)
BOULDER,
Colo.
—
Leslie
Shaw, Irva M. Steffen and Mrs.
Kathryn
staff
pany,
of
Welch
Allen
1921
have
joined
Investment
the
Com¬
Fourteenth Street.
'
may
legally ' offer these securities in
-
of the
this Slate.
•
A.
Lajoie, John R. MacDonald, John
R.
as
Weill, Blaunlr & Co., Inc.
120
Broadway
New York 5,
N. Y.
.
(Special to The Financial Chronicle)
demand full satisfaction of their
T/jis announcement is neither
G.
Colo.—Thomas
.
Two With
contingent interest arrears on the
they
v
the
Adjustment 5s, 1967, in 1952, pre-
Also,
Si
no
Burdette I. Barnes, 2007 Thirteenth
Street,
lot to say
might
form
Thompson has joined the stall of
areason-
making
Cov.
u
mi
longer range potentialities of
for
with
(Special to The Financial Chronicle)
the
properties
able explanation
now
With Burdette Barnes
on
totaling
$101
promising growth
of
•
Wlth H' L* Jamieson co' inc'
remote
arrears
Holm
Chronicle)
Calif.—Le-
FRANCISCO,
infnAJa"J" t?lPwJs
« £ H L Jamiesw^Ct?
long and interesting his-
years.
to
invest-
P. Holm is now witn tov
!
an
preferred
$7
an
company
SAN
conjecture.
anaylsts
made
equity, with
the
of
(Special to The Financial
on
"shaking their heads" and wondering why such a large investment
director
Covington Janin Adds
commitment in the junior equity,
tory, the "Katy" has been subject But the perplexing problem of the
to several organizations.
The last huge and continuing dividend armajor reorganization was
comrears on the preferred stock still
pleted in 1922, which created the confronts the management.
The
presently outstanding
7%
fully possibility of an eventual merger
cumulative preferred
stock, and with another railroad system has
out of which has grown the exalso been mentioned, but if the
isting financial
problem
which new group has this idea in mind,
has plagued the management for certainly
the
preferred
sharemany
°t
a
un-
lies ahead for
now
stockholders
interesting
con-
on
the last 10 years
stock
°
100,000 Shares
Brand, James S. Hatcher, William
to
These
the 667,004 shares
share points
action
of
excess
"Katv"
earnings available for
common
per
in
diverse
June 15.
preferred stock outstanding,
The fact
in
was
any
the
$95 million of debt outstanding,
and annual dividend requirements
interest
become
be-
is
Negro
first
the
by about three points,
rose
this
be
to
he
America
of
lieved
doubtedly due to covering of short
interests, since the short position
avail-
earnings
Comoanv
first
the
continuous
and
5%
production and home
the
relatively heavy senior capitalizaand charges have prevented
come.
half of this
business throughout the na¬
During
pay
points
but
tion
the
over
points, based on indications the
was opposed to the recapitalization
plan.
The
common
stock
dl-
thMjoard of
Investment
rectors of the Mutual
gr0Up
markets, plus the
problem of light density branch
mileage and inroads of competitransport.
by
cently^lected fo'
to
The
10
export
tive
mixed.
stock declined
r*t
+i-,P
_
and
already
the increased number of job¬
holders pushed
midspring wage
salary income to about
higher than a year earlier.
the
production,
cotton
grain
part to
in
.
,
T
Neg£>
The market's initial reaction
was
with First InveStOTS C°rP°ra"
?on
neces-
^
preferred
due
the
in
high
first-quarter
May. Although new
starts
may
taper off somewhat
further in the months ahead, the
April
and
and
take
ginal
earner,
Brothers & Co* and Mr. Fatter
the
from
Prefcrred ^2^°
*
longer work week, higher
and
£"sher was formerly with Baruch
directors voted
Zn
the
o
.
„
nual
services
the over-all business picture.
ment
business
to reject it
this development
In
of
rssue
of
ginal status of the properties.
■
"Business Conditions," issued by Federal
Reserve Bank of Chicago, lists important sources of strength
Jaly
and
stock
"Katy" has always been regarded as pretty much of a mar-
$0.44
•
of
Zstanding. 3
the
•
of
other include $3.7 million fixed and
by
necessary,
shares
stock
monetary
upon
silver purchases under
legislation.
We are not
Act, and that the repeal
law
The
of
is,
primarily
concerned
course,
prepared to
interest in.the
tion
power
808.971
block
Philip M. Jenkins
centJy !?ee."
r_
M
associated with Bache & Co Mr
group was unqualifiedly opposed to the pending recapitalization plan, and had the
some
common
existing
o
of
new
the
The
.
wal aZounced
since the
question represents about 62%
policy
no
alization
aggregate
an
million.
1,
of
with
Fed¬
has
or
of July
as
in
of
Reserve
Board
1955,
share
a
$101
The Federal Reserve System
known
the
that
$151.50
buy silver.
statement
made
the
eZpany
of
price at which the Treasury must
brief
a
fix
which
legislation
isting
on
Banking and
Currency, and
in
se-
Legislation Held Unnecessary
i
Committee
investment
of investment firms
of Pennroad Corp., of
group
a
,
the
been aban¬
Special Markets Inc.
monster has
the field must deal with it.
;
which has
doned.
relation to
no
or
power
recapitaliza¬
the
under
plan
IIallowlll, Sulzberger & Co.
Broad St Chestnut Streets
Philadelphia 7, Pa.
The Commercial and Financial Chronicle
20
Thursday, July 21, 1955
...
(284)
ident
and
REVISED
ported
tional
yield having been brought
about by the sale of $75,000 of
new
stock.
The enlarged capital
became effective June 30.
Board
deposits of $297,453,536 on the
same
date.
When the proposed
and
CAPITALIZATIONS
City,
York
New
Bank
Savings
River
East
The
A.
Joseph
Arthur S. Kleeman, President
of the Colonial Trust Company, of
President, will
Nodyne,
O.
iiiimi
ii
soon
rirn
im
i
New
that
voted
undivided
institutions
the
COMPANY,
TRUST
YORK
NEW
;
Undivided
1,619,993
431,352
373,866
224,317
.
profits—
Conway,
Vice-
a
President of the Sterling National
Bank
A.
Broderick
George
Nodyne
O.
in
become
half
a
stitution.
billion
This
terprising
modern
approximately
resources
Mr.
and
deposits
bank's
in¬
dollar
en¬
were
and
$153,107,913
$174,947,135 when
only
Broderick
East
the
to
came
Savings.
more
years
In
the
the
last
20
in
fices
locations,
strategic
has
with the city's larger
banking institutions
step
commercial
the
following
brief
summary
years
many years.
July |
Deposits
Resources
$174,947,135.39
$153,107,913.96
1940—___
181,559,463.12
H:
Hi
County
Kings
of
trustees
of Brooklyn, N. Y.
Trust Company
July 19 announced the election
of John J. Lynch and Hunter L.
on
Delatour to the Board of Trustees.
Lynch, Vice-President of the
Trust
Company,
was
formerly
Works Commissioner of
Brooklyn, which position he re¬
signed in October of 1954 to be¬
associated with the bank. He
200,400,516.87
come
1945—
231,117,055.42
246,722,540.52
1950—___
329,146,604.90
359,702,265.82
has been active for many years
1955—:
442,206,091.42
*
The
Chase
478,893,189.38
*
Manhattan
of
Bank
New York has received
to
open
branch
a
routh, Lebanon,
Chairman
bank,
permission
office in Bey¬
of
John
the
McCloy,
J.
Board
announced
the
of
July
14.
Chase
Manhattan,
Mr.
McCloy
slates, is the first American bank
on
to receive such authorization from
Lebanese
the
Government.
Prior
approval had been granted by the
Board
of
Governors
of
the
eral Reserve System at
and
ton
by
Banking
tan
Fed¬
Washing¬
the New York
Board.
expects to
Chase
State
Manhat¬
its Beyrouth
branch early this fall.
The bank
open
has
had a representative's
Beyrouth since 1952.
in
❖
announced
on
15
C.
as
is
a
of
the
Mr.
Feit
Graduate
School of Banking at Rutgers Uni¬
versity, Class of 1954.
both
New
He attended
York
University and
St. John's University Law School
prior to joining the bank in 1929.
He
appointed an Assistant
Secretary in 1939 and an Assistant
was
Vice-President
in
1951.
-Mr.
Office, Fifth Avenue and 43rd
Street, since 1932.
nue
On
July 20 President Flanigan
announced that Eugene S.
1954
Hooper,
Hollis
Wray
State
Senior
a
Vice-President
in
1951.
if
1
if
•! Beginning Monday, July 18, and
ers' Trust Company of New York,
heretofore
of
the
16
located
Wall
eighth
on
the
Street,
floor
of
third
will
41
be
Broad
County
98
West
Trust
Plains,
within
open
Wilson said.
that
Mr.
months
two
constructed
borhood.
Later, it is planned
on
be
'phone
The trust
number
and
com¬
mail¬
ing address remain unchanged.
basis of the
third
the
of
$20
Stockholders
of
Peekskill
The
Company
of Peekskill, N. Y. and The
N. Y. approved
James
of
Midland
rine
would
Dempsey,
Plains,
mer¬
Chairman, and
President, of the
and Andrew Wil¬
Chairman,
and
Company.
Joseph
E.
The
statements
shares
voting and 99.5% of
County Trust shares voting
The
National
tablished
sets
Consolidation under The County
Company
name
and charter
is scheduled to take place on July
29,
following
merger
ties.
final
approval
of
by
banking authori¬
At that time, Mr. Barry will
become
a
es¬
1902 and its total
in
approximating
when
and
proval
as¬
the
necessary
Citizens
The
office
of
Company
$5,000,000.
National
Marine
The
Trust
Company
was
and
operates
ing
offices
presently
Its
June 30,
in
election
were re¬
total
and
the tentative plans is
of
Mr.
Vice-President
of
Trust
of
Shamel
The
County Trust Vice-Pres¬
the
with
as
a
York.
Marine
Western
Advisory Board for the
Springville office will be consti¬
tuted from the present Board of
the Citizens National
Bank.
<s
Ht
H*
N^rxvieh.
and
if
bank.
their
enlarged
its
capital,
has increased
Tulsa
of
29,
June
of
as
from
The Fourth National Bank
Tulsa
capital, effec¬
$1,200,000, en¬
larged from $800,000. The $400,000
increase was brought about by a
of
tive
reports
July
a
of
15,
stock dividend of $200,000 and the
$200,000
of
of
National
w'th
Conn.,
capital stock of $200,000
absorbed, effective June 24,
by the Hartford National Bank &
Trust Company of Hartford, Conn.
plans for the new San Jose
were
well advanced, but
that
office
the
niversary,
Bank
held
of
Tulsa,
its
of
observance
In
25th
National
Fourth
Okla.
An¬
July
on
15
6 p.m.
firm.
This
will be First Western's first
office
plans
ing
San
in
made
are
Jose.
announced
don
•
-
Geoffrey
been elected
C.
•
and
F.
Chairman
of
the
bank's
Seebohm
has
also
man
Mr.
pointed
a
the
to
tional
Bank of Commerce
•
.
member of the
amount
Local Director, West
been, appointed .Di¬
have
bank.
/
indicated
having
$400,000 to $500,000.
%
JJi
Bank
Louis
St.
of
Clayton,
increased
May
County
National
which
Mo.,
capital
its
in
from
$1,000,000 to $1,200,000, as a result
of a $200,000 stock dividend, has
further enlarged its capital, rais¬
$300,000 of
new
increase became effective June 24.
A
reference
to
earlier
the
with respect to the
capital appeared
issue, page 2563.
action
addition to the
in
June
our
2
Colo.
#
baxip
]vr,vi-<;
staff
of
Trust
and
has
dent.
on
Company
been
Mr.
Philadelphia
of
elected
Vice-Presi¬
McLoughlin
has
been
leave of absence from the bank
delphia
serve
as
Citv of Phila¬
Controller
quently
as
end
subse¬
Administrative
Vice-
President of Land Title Insurance
Elwyn Coats Nichols and Harri¬
son
Sherman Holland, Jr., mem¬
bers of the staff of the Birming¬
National
Trust
ham
been
directors
July
12,
by
John
nounced
President.
H:
*
an¬
was
Coleman,
Mr. Nichols joined the
and has served
bank
in
interviewer
1946
the
in
as
a
install¬
H:
ment
Towson
it
S.
National
Bank
of
land
loan
department.
became
associated
Join Hicks,
(Special
to
with
bank
by the sale of new stock
of that amount, the capital having
thereby increased from $250,000 to
head teller and Assistant Manager
$300,000 effective July 7.
Manager of the East Lake office,
*
The
Citizens
H:
a
loan
interviewer
if
Bank
of
has
served
as
of the Mountain Brook office, and
*
National
He
•As of
if
and
Chronicle)
DENVER, Colo.—Thomas S. Al¬
len, William T. Allen, Jr., Walter
G. Asmus. Mary K. Campbell, Ed¬
J.
ward
Robert S. HartJack, Quentin
Flint,
Charles
A.
Selby, William H. Thorney, Jr.
Michael C. Villano have be¬
and
with Hicks, New¬
come
affiliated
ton &
Co., Inc., 524 Seventeenth St.
With Counts Staff
(Special to The
ATLANTA,
Philyaw,
with
is
Jr.,
Courts
Chronicle)
Financial
Ga.
Stock
&
affiliated
now
Co.,
11
Street, N. W., members
York
Carlton
H.
—
Marietta
of the New
Exchange.
the
its capital
1949.
Newton Co.
Financial
The
Mr. Hol¬
Towson, Md. has added $50,000 to
in
the
of
Cashiers at
loan
Company.
Bank,
positions
of
Assistant
a meeting of the bank's
the
to
added
Columbia Securities Com¬
Building.
Birmingham, Ala., were promoted
to
F.
Craig
Incorporated, Equitable
pany,
W.
#
—
Richard V. Chase, Mrs.
Minnie Enger, Edward C. Jones,
Simpson
Marcus
and
Paul
L.
Althen,
pence,
if
if
i
Financial Chronicle)
(Special to The
DENVER,
The latest
stock.
.-b
Columbia Sees. Adds
of Pine
increased the capital as of June 21
The
ap¬
bank's
G. G. Money,
Bluffs, Ark., the sale of new stock
from
Board.
been
C.B.E., Chairman of the Egyptian
Local
Board, E. V. Whitcombe,
Local Director,
East Africa and
$100,000 has been
capital of the Na¬
made
the
K.C.M.G.
Deputy Chair¬
Seebohm
a
Vicea
An addition of
Hi
*
June
Gibbs,
Sir
has
of Lon¬
30 that
D.C.O.
on
/
Stephen E. McLoughlin, Jr. has
rejoined Tradesmen's Bank and-
H:
*
Bank
Barclays
rectors of the
to
a
Indies,
"Open House" from 9 a.m.
an
re¬
before
Corporation
Insurance
be
Deposit
Federal
the
from
also
must
approval
London Committee. G. N. M. Law,
stock.
new
to
sale
and
issuance
,
Mr. Coats said
July 13.
#
$4,000,000 to $5,600,000 as a result
of the sale of $1,600,000 of new
stock.
the
an-
site for the office and other open¬
capital.
The First National Bank and Trust
Company
of
Board
nounced
of
Directors,
Chairman
Coats,
ceived
Two banks in Tulsa, Okla. have
recently
P.
bank's
that
if
if
Francisco
San
of
Superintendent of Banks to opens
an
office in San Jose, California,
T.
ing it to $1,500,000 by the sale of
Uncas-Merrhants
of
service
is President of the
Welch
an
active
The
customers
our
in
utmost
has
permission from the State
received
a
New
It is also expected that
Directors of
is "now in
Trust
and
Bank
Western
First
Company
announcement
its
&
Companv
H.
an¬
protection." The bank has capital
and surplus of $500,000 each, un¬
divided profits of $224,700 and de¬
posits of $24,217,700.
Frank C.
re¬
of $611,000,000.
excess
in
that the bank
position to provide
New
total
1955
$666,753,000
as
bank-,
60
Western
24
communities.
ported
Western
established in 1850
in
on
Trust
The Ma¬
of
Iowa
the Federal Reserve Sys¬
and
tem,
York,
New
Marine Midland Bank.
rine
Bank
with, and become
Western
of
New York
ap¬
obtained »it is exn^cten
are
will be. merged
an
The
was
1955, it is stated,
$5,665,000, with tota,l de¬
were
that
Bank
June 30,
on
posits
If
authorities.
banking
Citizens
The
favored the plan.
Trust
stockhold¬
is also subject of the regula¬
tory
Rapids,
Cedar
of
Departments
Loan
Smiley, Jr., will re¬
place Mr. Bartman in Oakland. 1
trans¬
of the bank in the near future
and
Commercial
nounced its admission to member¬
stock
the
mitted for aprpoval by
Hagan, in the
of the late Edwin H.
....
The Peoples Bank & Trust Com¬
pany
The proposal will be sub¬
action.
in order to
indicated that 98.1% of the Peekskill
in
Ma¬
of
Corporation
involved
be
which
shares
42.500
County
the proposed
Peekskill bank
son,.
White
two banks, acording to
received July 15 from
M. Barry,
Na¬
was
National Bank and Trust
Company
Citizens
of
outstanding
par
that
means
common
year.
*
stock
common
tional. The bank has 10,000 shares
County Trust Company this
Trust
exchange is 41/4 shares
share
each
for
the
Midland
of Marine
is
Spencer
states
Fink
*
of
on
shares of Marine
Corporation stock.
The
White Plains office opened by The
*
Bank
announced
Y.
eight years,,
being transferred to San Fran¬
duties
ing officer for the past
cisco and will take over the
$50,000 stock divi¬
a
/
ship in
site in the neigh¬
a
will
It
result of
a
Bartman
T.
Lester
.
.
National
N.
that
15
the
to
permanent building will be
a
H:
directors had
voted to recommend favorably to
the stockholders the exchange of
July
Y.
N.
Na¬
Shamel, President of
Springville,
Included
Road, Andrew
Wilson, Chairman of the bank's
Board of Directors, announced on
July 15.
The office is expected
to
I.
Citizens
The
Com¬
Post
the
Street, New York.
pany's
Howard
permis-- deposits in
its sixth White Plains office,
open
Trust
for the next year or
so, the Bank¬
on
banking
granted
Hughes, President, of The County
if-
floor
have
White
of
pany
David
and
as
H:
dend.
a
announce#
who has
been associated with the Oaklanc®
office of the bank as senior load¬
Crocker further
Mr.
•that
;
Northwestern
Third
The
Shultis and Robert W..
Miller.
become $220,500, in¬ tional Bank of Minneapolis, Minn.
$210,000 by a stock •has increased its capital effective
of
$10,500,
effective June 23 from $150,000 to $200,000
H:
York
Federal
and
The
for
»i*
'
.
Pro¬
Trust Officers
to Assistant
H. E.
were
stock
columns June
2776 and July 7, page 95.
these
in
and Albert:
Becker.
A.
Lambert
Vice-r
Taylor,,
Assistant Cashier-
Named
Rice.
moted
•*»
..
July 11.
sources
Company.
a
Jr., and Nelson H.
trustees.
as
ger of the
pointed
Wil¬
Thayer,
K.
liam J. Wason,
statements
Hooper was ap¬
Vice-President in 1937
to
James, George C. Johnson, Rich¬
ard
S.
Maynard, Michael C.
Senior Vice-President of Manu¬
Mr.
past
Allen, Robert E. Blum,
Vincent
J.
Caristo,
Robert
A.
Drysdale, Jr., Julian D. Fairchild,
Kerwin H. Fulton, W. Rutherford
O'Brien,
16, page
additional
the
to
appeared
to
July
from
dividend
State
York
New
Chester A.
facturers Trust Company, has been
elected a Director of the Trust
a
immediate
the
Association,
Feit
has been at the bank's Fifth Ave¬
Montague Street,
is
He
of
senior
a
Delatour
serving
from
January
1955.
Messrs. Lynch and Delatour join
at
was
by Horace
Flanigan, President.
graduate
Bar
January
sion
of New York
July
Brooklyn.
185
authorities
Vice-President of Manufacturers
Trust Company
Miller of
President
office
Hi
The appointment of Ben Feit
v
a
H«
and
member of the law firm
&
made
been
stock of the First Na¬
and Trust Company
J.
References to the plans
incident
-
Earle V.
F. Winrott, Jr.
Walter
be
thereby
creased
ers
in
religious affairs in
Brooklyn. Mr. Delatour is
*
'
•
•
Ossi/ning, N. Y„ the capital hav¬
of
Mr.
civic
has
' :V
'
■
Bank
Midland
The
if
Assistant
to
President were:
record
of
of the close of business on
their shares, for
Scarsdale, N. Y. for
He resided in
Borough
proves:
1935—
Conway, who
Mr.
of age, had been in
the bank's service over 25 years.
77
or
progressively but conservatively
managed institution, with five! of¬
as
West
was
addition
An
tional
July 3 at a hospital
Hampton Beach, Long
Island, N. Y.
this
of
growth
New
of
Company
stockholders
to
Cashier
ant
was
on
if
.River
kept
Trust
&
York died
if
#
ing
Joseph
mailed
will
shares
additional
the
and as a
Jesse D. Middles-
Promoted from Assist¬
Bartman.
total
outstanding
800,000. Certificates for
shares to
will continue
Vice-President to* '
ton, Charles B. Neuman, Jr., War*ren
M.
Johnson
and
Lester Ti.
additional
An
Calif, an¬
result of the di¬
held that day:.
a
meeting
Vice-President,
the
creasing
a
as
the capital
H.
Troster,
26, 1955.
1,100,447
431,333
secu¬
Michael
Cob
Y.
share.
per
as
Assistant
From
400,000 shares will be issued, in¬
of
firm of Troster, Singer & Co.
235,157
:
holdings
rity
N.
$10
of
Bank
trustee of the bank
a
as
from
Govt,
S.
Savings
People's
has
Troster
$2,572,403
625.439
——
due
and
banks
U.
$3,195,400
resources-,.—
Deposits
Cash
Dec. 31,'54
stock¬
NationaB
First
July 14 the following;
on
promotions
reduce the par value of
general partner in the Wall Street
Jun 30,'55
Total
the
J.
Vice-President
a
resident of Yonkers,
#
#
t-
CORPORATION
THE
elected
Chairman of the:
San Francisco,
of
nounced
uc-
meeting July 12, approved
plans to
if
Oliver
Colonel
been
Yonkers,
profits.
holders
special
a
V
'»•
Crocker
of
Bank
of new',
$1,000,000
of
W. W. Crocker,
rectors
at
$5,500,000 as a result*
sale
^
Man-
01
capital of $6,500,000, in¬
a
the
of
the stock of the bank from $20 to
add $200,000 to sur-
to
Plus> by a transfer of that amount
from
*
The
Jc»aiiK
ixukiuiai
Mich.,
trojt,
ties.
York City, has announced
on July 13 the bank's direc¬
tors
Broderick, Chairman, and George
ulitc.urci>
of
creased from
•
of
stockholders
The
is completed, The Guuxn/
Trust Company will have 35 otfices in 22 Westchester communi¬
if
Hs
if
merger
of
re->
Texas
Worth,
Fort
stock.
nounced, had total assets of $7,528,332 and deposits of $6,861,515,
while The County Trust Company
showed total assets of $323,370,550
Bankers
and
OFFICERS. ETC.
Bank
capital from $200,000 to $300,000.
Of the increase $25,000 resulted
from a stock dividend, the addi¬
and
CONSOLIDATIONS
NEW BRANCHES
Chilicothe, Ohio, has increased its
charge
1955, The Peekskill National Bank
Trust
Company,
it is an¬
News About Banks
NEW
of
On June 30,
in
be
will
Peekskill operations.
Assistant
H:
July 5 the First National
Marache Dofflemyre
(Special to The Financial
LOS ANGELES.
Kelly is
now
a:
Adds
Chronicle)
;
Calif—Russell
filiated with Mar-
ache. Dofflemyre & Co., 634
South
Spring Street, members of the Los
Angeles Stock Exchange.
Volume 182
Number 5448
Continued
The Commercial and Financial Chronicle
...
(285)
21
cisely t'~e issues which long-term
5
page
creasingly vulnerable
small
investors
from
lic becomes
they have been liquidated, while
The Stock Market: A
leadership
and
advance
levels
prewar
leaders
of
above
comparably
the
earlier
with
advancing
crease
market
in
rise
which
actually
possibly
the
began in 1953
been
third
a
culminating)
bull
market,
which
of
in
began
consider
European demand.
present
closely
more
tied
shortage
to
is
automobile
On
of
have
light
basis
the
market
may
good deal further to go.
a
We
basis
approaching the
bull market. On a
big
a
long-term
a
to be
seem
short-term
perhaps
may
throw
the subject by proceeding
analysis of—
led
The Present Position of the Stock
vis-a-vis
Market
General
the
ventories
their
the
World War
has.
end
of
wa,vi2s
from
1949
to
distinct
The
during
first
which
shortages resulting from the
market
a
the.
for
rearmament period
remained
to
1952; and finally
still
in progress,
recovery,
began in 1954.
The last of
spite
from
soon
reconstruction
great
ther stimulated
zation of
On
Europe and fur¬
by the remilitari¬
Germany.
the
today's
scene
is
prosperity
fortified
by at least two additional factors:
the
extraordinary persist¬
ence of high demand for automo¬
biles and houses, and
(1)
(2)
serious
a
raw
materials
and
the
the
that
first
steel
six
montns
earnings
remarkably
had
stable
de¬
like
steel,
copper
occasioned
partly
European demand referred to
and
partly by the over-
discovered
that many of the
at 2V2 to 3 times actual
earnings.
As prospects for
cash
these
will
now
and will
reasonable,
earnings began to improve,
future,
that
real
future
like
kept
with
pace
provement in earning
U.
STEEL
S.
TOWN
in
&
price
im¬
power.
YOUNGS-
and
SHEET
doubled
the
TUBE
in
less
have
than
a
but they are still selling for
year,
earnings. INSPIRATION COPPER
allowing inventories to decline
sharply during
At
is showing signs of great vitality.
German
heavy industry is making
serious bid to recapture its pre¬
markets.
Elsewhere, notably
France and
reconstruction
and
tion
at
ceeding
England, construc¬
a
generation.
not
pace
are
pro¬
in
seen
the revival of business
hand with
activity, has come the virtual dis¬
appearance
the
About
sure.
economic
inflationary
of
forces
pres¬
the
validity of
behind the
cur¬
boom there can be
serious doubts.
One can only
rent European
wonder to what extent it can sur¬
vive
any
sort of business decline
seriously
in the U. S. which might
dislocate present patterns
of world
houses and
the demand for
automobiles continues
Having al¬
apparently unabated.
most attained
goal of "two cars
a
for every family" it is
that our
conceivable
advertising geniuses
may
day sell every family on the
those
its
groups
owning two houses. But
the more classically minded it
would
appear
that
much
the
of
present demand for these items is
being
subsidized
by
abnormal
forced drafts of credit. The events
1929
rowed
demonstrated
money
and
sound
is
not
never
a
that
bor¬
usually a
permanent
basis for supporting a market.
The
raw
materials picture
little brighter
a
production has not substan¬
tially risen above consumption. In
time
United
States
there is
still
a
shortgage of copper and
aluminum which cannot be satis¬
serious
merely
through
increased
production here and abroad with¬
a
matter
of
weeks
or
even
months., Perhaps by late 1956 the
to $5
and
have
company's
been
ore
re¬
equipments where the actual
in earnings has been de¬
road
recovery
like
stocks
layed,
have
re¬
mained virtually unchanged.
Meanwhile, during the
the
riod,
Dow-Jones
have risen from 320
leaders
flying
which
rently monopolize the
headlines.
cur-,
newspaper
These latter stocks
following—not leading—the
in
Industrials
High
REYNOLDS
a
ket.
How
to do
long they will continue
is
so
the
If
an
question.
open
business
becomes
there
spread,
is
to
general
on
wide¬
more
interesting
the
possibility,
even probability,
institutional funds, aware of
that
yields,
will begin to flow into the basic
industries with pronounced effect
the subsequent
on
price action of
these basic industrial leaders.
we
for
development takes place,
shall finally have a valid basis
making historical comparisons
the
with
1929
and
great
1937.
bull
markets
of
To date,
it is one
of the principal curiosities in our
stock market that such compari¬
sons
still
are
hard
to
find.
ing
Prospects
foregoing diagnosis of the
in its relationship
to the general economy is reason¬
able
market
then it remains to formulate
investment
policy which will
be consistent with the ideas ex¬
an
have
favorites
like
with
100%
risen
and
cur¬
thus appear that some
of
sections
the
market
have
grudgingly in 'almost the
the general economy
improved, while others, semi¬
it
as
economy,
from
were
Since the success of such
policy will inevitably be influ¬
more
reactionary
periods
following spot news de¬
stocks
institutional
favorites
like
DUPONT, GENERAL ELECTRIC,
a I*
the
should
market
formance
continue
firm
than
with
their
although
may
per¬
less
appear
heretofore
Heavy
industrial
STEEL
S.
spec¬
other
as
growth
Finally, if
lation
valuations
erous
earning
power
increasing
leaders
like
of
more
their
gen¬
current
and should
institutional
attract
funds
securities
and
dends
com¬
sell
at
evaluation
a
have soared,
unencum¬
statistical considerations.
This divergence in action leads
the
to
stocks
conclusion
whose
closely
it
ly, that (a) our present economic
(b)
ence
on
the basis of
the ' economy
creasingly
tion
past experi¬
becomes in¬
vulnerable
in
propor¬
goods are sold on credit;
(c) the stock market becomes in¬
as
that
market
paralleled
industries.
buy small
Their
ness
should contain some element
which
might
in
tors
rise.
late
Many
selling
they
of these
they
they
are
tinction.
a
are
cheap here
very
They look like
inter¬
esting gamble at moderate
near-
term risk for
a
limited amount of
mopey.
in
conclusion
that
mind
speculative
the
level
makes
it
one
is
sharp,
advances,
ahead of the
amass
stock
the market vulnerable.
than
but
it
is
hardly
long-term outlook.
Fifty,"
the
on
overpriced
t.e
over
The "Favorite
the
like
baccos should attract more
ment
attention
high
yield
because
to¬
invest¬
their
of
comparatively
and
.
eventually attracting the
of those
may
prove
whose judgment
less competent.
Skyline Securities
(Special to The Financial Chronicle)
DENVER, Colo. — Skyline Se¬
curities, Inc. has been formed with
offices at 1719 Welton Street. Of¬
are
Gomer
D.
Hughes,
President; Wayne L. Black, VicePresident; and Harold E. Wallace,
Secretary-Treasurer.
Share
i
Petroleum Company, Inc. with operations
Kansas, is engaged in the buying, selling, devel¬
oping and operating of oil and gas leases. The company owns oil
and gas leases containing 15 producing wells in the HowardMesa
offices in Wichita,
Howard County, Texas.
Copies of the Offering Circular may he
obtained from the undersigned:
other
hand,
Fenner, Streitman & Co.
37 Wall Street
New York
2, Kans.
Birkenmayer & Co.
Denver Club
Denver
Bldg.
2, Colo.
MAin 3-0173
copy
of the Offering Circular relating to the
Company, Inc.
a
Name.
considered
these stocks which have
been
principal
company
purchases
of
in
the
same
stock
time,
market,
they
w
are
Address...
the
pension funds which lack experi¬
the
5, N. Y.
BOwling Green 9-7235
HObart 4-7603
look
statistical basis,
historically or relative
other values.
It is, of course,
on
►
C. Schenkosky
212 North Market St.
me a
ile,
pre¬
City
Telephone
be
interest
COMPANY, IVC.
Offered at $4.00 Per
Please send
to
large capital gains in stocks
conservatism
optimism
At
without
ficers
stocks
Defensive
>
of
hoped that people can continue to
recent
decline well
general market.
has
bear
degree
rattier than
prices which
activity
of
should
the
present the market appears well-
equipments, retail
alcoholic beverages,
and
may
operat¬
ex¬
an
(No Par Value)
Wichita
stocks
slated for virtual
75,000 Shares Common Stock
> Albert
market
little
railroad
enjoyed
Glasscock Field, in
specula¬
to
of
approximately where
in the fall of 1953.
were
Either
appeal
stages
(A Kansas Corporation)
The
bank¬
behaved,
in the price of se¬
depressed industries
THE MESA IETR01EUM
Business:
dif¬
balance
strong enough to
New Issue
;
in
stocks
against the risk of
ensure
those
action
actual
reflect
to
ence
to
several
divi¬
etc.
Speculative
stocks,
like
aircrafts and televisions, which have
results
rather
at
advisable
of
ruptcy and, if possible, their busi-,
sugars,
theory of
governmental supports and con¬
trols which has yet to face the test
of a serious decline in demand;
a
like
gains.
If one
speculate in these is¬
is
sues
attractive
be
may
capital
to
more
recovery
trade,
will continue to im¬
prove
as
earnings improve and
may even rise without such im¬
provement as long as their cur¬
rent
price-earnings
ratios
con¬
to
large
wishes
a
earning power.
these there should
in
specu¬
of
Along with
be
believes
one
as
panies in these industries should
out-perform the leaders in pro¬
portion as their operations are
more
highly leveraged and
as
their
ten
is
capitalization,
for
In
well-situated smaller
conservative
good
past
markets,
the
low-priced
stocks, tertiary issues with small
.
KENNECOTT
and
to sell at
come
the
going to spread among
the public as it has done in past
or
should
basis merely
'
years.
are
issues join the advance.
U.
as
shown
have
records for
sheets should be
and space.
et
low yield
a
they
ferent
proportions both of time
curities
prosperity is based on
on
because
modest
The
to
well
although one should be in¬
creasingly careful about buying
amounts
future events, one must
constantly bear in mind some of
the present factors of risk: name¬
enced by
the
bered by
ing
continue
with
1953r
usually
about
as
bull
ris¬
it has since September,
as
is
or
way as
detached
us
or
taken
im¬
proved
same
has
rate
has
place, should do
velopments and remaining within
33%
today at almost 30 times
earnings.
rent
violent
no
confidence increases in their basic
If the
stock
and
interest
should
trend
less
The
Future
the
in
where
ever,
investment quality.
1
III.
European prosperity,
relations,
tacular
If this
con¬
Under these conditions the
the
present large disparity in
of
un¬
credit structure."
or
continues
economy
and optimism
prosper
are
even
on
earnings increase of 30%
sell
eco¬
situations,"
times
while
prices
earnings,
investment
DUPONT
an
of
level
the
further improvement in U. S.¬
changes
mar¬
to 470.
like
summer's
increase
sound
over-all
an
for
tinuation
same pe¬
have risen to 3]/2
METALS
last
predict the
assume
now
technological improve¬
new
AMERICAN
FOUNDRIES
STEEL
tinue
is
since at the present
$3
dividend
shall
years
attractive.
In industries like the rail¬
serves.
of
fied
the
to
made
from
additions
It would
this country
idea
has risen
substantial
trade.
In
time the indicated
same
in
hand
Moreover,
a
from 25 to 55 but at the
come
rate
1954.
present the European boom
war
has
must
we
nomic
and
be
closely the current trends
a
scarcely
as
we
reflect
ly, but the
in price has
ment
two
risen until
relatively
"Special
some
their
over
For almost
look
take
Insofar
con¬
they
un¬
outlook.
pressed.
recovery
optimism
even
risk.
other stocks have
considerable,
instances
activity more or less
changed from the present, a
the stocks began to recover quick¬
pessimism expressed by raw ma¬
terials producers
and consumers
in
conclude that the
in gear with the gen¬
economy
earning power of
of these companies.
It was
around 4 times their current cash
the
we
reflect
some
steels, motors, and coppers which
"normal"
above
of
eral
were
leading steel producers with their
heavy depreciation returns, were
shortage of basic
aluminum
1953
selling
domestic
economic
history of the
40% drop in operating
rates, statisticians began sharpen¬
ing their pencils and predicting
some
the
ti
a
these, it would appear, is of for¬
eign
origin, .• stemming
largely
boom in Western
resemblance
predictions of impending disaster.
during last summer when
showed
which
the verge
on
Then,
reports
1950
than
heavily liquidated amid universal
War and
rean
to
tinue to be
orders
materials companies. In
earlv 1954 these issues
war
from
seems
recent business
satisfied; the second the Ko¬
were
these
Curiously enough, the market
history of the "cyclical" stocks has
and
prosperity:
1945
faster
When
sharp increase.
a
raw
three
decline
to
orders.
price of steel
Second
undergone
to
picked up there was a
shortage and now, with
the shortage still unsatisfied, the
domestic economy
our
prices and
allow t.ieir in¬
sudden
the
the
of
lower
at
consequently
borne
Economy
Since
buyers to believe steel would
plentiful
of
one
From this
stock market is
in
and
more
to
appear
Soviet
II.
<
no
prices in general has changed ma¬
terially.
institutional favorites
reflection of last
a
of pessimism which
errors
suddenly
more
on
an
in
of
a
be
stocks
a
because
then feel the outlook for stock
as
as the pub¬
optimistic on its
outlook; and
(d) the prices of
many
individual stocks already
in their industries rather than the
dilemma:
in
gains
tax considerations until such time
leaders
steel
sell
production, although for Lie time
year's
by
also
must
one
The
Our little survey of history has
thus brought us to an apparent
to
im¬
to
being it is still
1942.
end
have
the probability of further growth
(anJ
phase
will
proved sufficiently to call for re¬
appraisal, but balancing t iis in¬
phases, it would provide strong
presumptive
evidence
that
t.ie
has
Reappraisal
situation
supply
with large capital
reluctant
are
.Zone.
.State.
Mesa Petroleum
12
v'',? k'/\' /■' / y*
£281)1
Ht ?he Commercial and Financial Chronicle... Thursday, July 21, 1955
'
McLean Industries
Bank and Insurance Stocks
By ARTHUR B. WALLACE
sale in the form of units of
This Week
Bank Stocks
—
shares
predictions of better bank stock earnings, whether for the
of this year or for the first six montns, were fully
borne out by the income accounts of the New York City banks.
Because of the four recent major mergers some pro forma calcu¬
The
second quarter
lations had to be used for
comparisons, but this tends to favor the
earlier or base period as in a merger there is bound to be some
loss of deposits, which affects the level of invested assets, and,
in turn,
of earnings.^
the
In
of 13 leading
$55,565,000, compared with $44,701,000
quarter of 1954. This gain of $10,864,000 is approxi¬
mately 24%.
Several contributing factors were responsible for
the increase.
First, as of June 30, 1955, invested assets of these
New York
in the
City banks
held, $7,642,060,000
t
quarter operating earnings
were
$472,000,000 greater than a year earlier. Then,
June 30, 1955, total of United States Government obligations
tne
loans
eir
(11.2%
|
a year earlier, whereas
$13,061,237,000, or $1,320,909,000
10.6% lower than
was
discounts
and
were
higher than on June 30, 1954.
rate of return for the
governments
or
loan rate
age
stock
series ($5 par value)
shares
of common
of McLean Securities, Inc.
Each
unit
And it is patent that the
larger banks is higher on loans than on either
over-all security holdings (for 1954 the aver¬
on
greater than that on governments).
67%
was
The
banks have also experienced some levelirig-off tendency
operating expenses, mainly salaries and wages; and th#
mergers will
bring some economies.
So this combination can
preferred
of
common
pointed out in
also for
not
Of
$51.
units offered
the
a
for
only
the
for
Mc¬
Malcolm
of
account
Lean, President of the company.
pleted.
Of
this
of
provide
sale
of the
part
acquisition of
funds for
than 99%
more
of the
outstanding stock of Water¬
Steamship Corp.
The bal¬
of the proceeds will be used
man
retire
The
of
the
Industries'
McLean
consolidated
capitalization
Industries, after the
McLean
of
sale
these
proposed
units
and
payment
the
after
of
addi¬
an
tional $7,500,000 of bank loans out
of the proceeds of the sale of cer¬
recent column on the banks, leading
moderately firmer money rates, but
tain properties of Waterman, will
consist
of
$17,954„164
funded
of
they go further into the second
half of the year.
If the roseate news reports of the improving
economy are to be realized—and we get them in almost every
debt, 220,000 shares
and
liquidation price), and 1,345,-
pick up—there can be little doubt about the econ¬
omy expansion leading to higher loan volume, and as the banks
can readily handle a greater amount of loan accommpdation with
but minor increased operating expenses, most of the resulting
improved earnings will be carried down to net before taxes. And
their tax bill will be moderated by any further bad debt reserve
set-asides, as these are tax-free.
000
shares
a
rising volume of loans
as
preferred
newspaper we
Following
13
are
the
stock.
common
Industries, Inc., organ¬
and
of
Pan-Atlantic
revenue.
steamship
coastwise
a
service between U. S. Atlantic and
Bankers Trust
$4.25
$4.43
6.61
6.90
16.51
16.98
1.75
3.28
4.02
2.20
1.77
1.92
3.67
3.62
2.00
7.24
12.07
13.63
3.00
Empire Trust
development
the
1.66
2.01
3.99
4.02
2.28
4.65
4.44
**3.70
Hanover Bank
1.60
1.77
3.38
3.55
2.00
Irving Trust
0.85
0.98
1.77
1.93
**1.30
Manufacturers
program
a
over
to convert its
service be¬
tween
ports along the Atlantic
and Gulf coasts into a regularly
2.40
1.56
City
of
next few years
present
vessel
cargo
scheduled
Guaranty Trust
First National
cargo
roll-off trailer-
roll-on
ship service between such ports.
The trailerships will be especially
constructed
loaded
to
carry
up
trailers
truck
trailerships
are
viate
288
to
each.
The
critical
expected to alle¬
problems
of
Trust
2.84
3.16
5.84
6.20
3.20
Co
7.48
10.41
16.68
16.66
10.00
present day coastal water carriers:
New York Trust
2.23
2.34
4.55
4.78
3.00
United States Trust
9.29
11.05
20.43
23.83
**16.00
high cargo handling expense and
insufficient productive time at sea
in relation to non-productive port
J. P. Morgan &
two
'
*Ended
June
^Includes
30.
extra
time.
dividend.
It
is
that
contemplated
Pan-
Atlantic may also offer a tanker-
G. H. Walker Branch
PAWTUCKET,
Walker
&
branch
under
colm
Co.
office
the
R.
I.
have
at
34
—
G.
opened
East
a
Avenue
of
Mal¬
Family Mutual Funds
LONG
J.
Holland
Securities
Texas
Inc., has been formed with offices
ISLAND
at 80 Wall
Street, New York City,
an
investment business.
Herbert Kunmann Opens
HEMPSTEAD,
N.
Y.—Herbert
stein have formed Family Mutual
H.
Funds,
with
offices
Twenty-fourth Street.
securities business from offices at
at
34-20
Kunmann
is
in
engaging
AND
13 N. Y. City
Bank Stocks
NATIONAL BANK
of INDIA, LIMITED
Bankers
Kenya
to
the
Copy
Head
Quarter 1955
on
Request
Office:
West
Second
End
and
26
London,
.
Government
Colony
in
Uganda
Bishopsgate,
E. C. 2.
(London)
Branch:
13, St. James's Square, S. W. 1.
in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Som&li-
between
Atlantic
a
Members New York Stock
Members American Stock
Exchange
Exchange
120 BROADWAY, NEW YORK
5, N. Y.
Telephone:
BArclay 7-3500
Bell
Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Dept.)
Sor.cialixtM in
Bank Stocks
land
Protectorate.
Authorized Capital
£4,562,500
Paid-Up
'
£2,851,562
Reserve
Capital
Fund
£3,104,687
The Bank conducts every description of
banking
and
exchange
,Trusteeships and
also
business.
Executorships
undertaken
would
furnished
be
private capital. According to
present plans, the company will
by
paid
The
consecu¬
company
formerly controlled by Amer¬
Power
&
Light Company
was
ican
(one of the Electric Bond
Share
a
American
The
July, 1952.
a
in
north
central
Washington,
and
in
and
eastern
northern
Idaho, Spokane being the prin¬
cipal city served.
The economy
the
of
is
area
largely dependent
farming, lead, zinc and sil¬
mining, lumbering and alu¬
upon
ver
minum production.
Revenues
tric,
with
about
98%
balance
in
are
the
elec¬
steam
heating and water service.
tric
revenues
11%
38% residential,
are
rural, 21%
iUiec-
commercial, 20%
for
this
license
a
by Septem¬
the hope of
with
year
starting construction early in 1956.
(Figures for potential kw capacity
these future hydro
develop¬
in
ments
and
naturally approximate,
in different ver¬
plans; however, they
to indicate the general
are
to vary
seem
sions of
will
supplies electri¬
population of about 530,-
company
city to
000
in
ber
the
serve
of the projects.)
scope
Along with other private utili¬
ties in the Northwest Power Pool,
Washington
favorable
Water
has
Power
with
contract
a
the
Bonneville Power Administration,
signed in
1953 for
20-year
a
pe¬
riod, for allocation of power from
Bonneville when needed (princi¬
pally
in
the
event
of
severe
drought). The addition of 125,000
kw
firm
of
west
to the North¬
power
Power
Pool
through inte¬
gration with Canadian operations
is also anticipated, if negotiations
successful.
If
this
obtained,
industrial and 10% miscellaneous.
are
Industrial
additional power should eliminate
from
revenue
was
mining and
the
balance
about 44%
smelting,
with
lumber
and
from
the need for high-cost steam gen¬
eration
during the drought peri¬
wood products, paper manufactur¬
ods, such
ing, food processing and
ago.
other
of
the
a
variety
is
well
Obviously
balanced, with
the mining component
8% of the total.
The
only about
from
revenue
largest
single
customer
is
hydro generation supply¬
ing virtually all generated and
purchased power, domestic elec¬
tric rates average only about 1.27c
kwh compared
per
tional
average
annual
with the
na¬
usage
2.69c;
while
of 6,910 kwh com¬
the U. S. average of
with
pares
of
Water Power
about
was
65%
debt
35%
and
equity (there is
stock outstanding).
preferred
recently made
company
rangements
property
District
Washington
31, 1954,
of
of Dec.
as
stock
common
no
The
With
occurred several years
Capitalization
industries.
load
as
to
the
to
1
No.
Public
of
ar¬
Chelan
its
sell
Chelan
Utility
County,
Wash., for $20 million, settling an
old condemnation suit.
Tne trans¬
action
a
also
contract
will
includes
under
which
the company
sell
40-year
the
PUD
all surplus
power
beyond
customer needs.
The company will realize nearly
Generating capacity was greatly
improved by the completion of $10,000,000 book profit on the sale,
2,549 kwh.
but
northern
no
it
is
invested
reduce
improve the
power
purchases,
the
and
to
in
10
resume
for
years
broad load-building
a
first
time
capital gain if proceeds
requested
Federal
permission
Power
from
Commission
the
to
a
be
are re¬
like property such
Rapids.
The
common
sale
will
stock equity.
the management
Washington Water Power pro¬
posed
December, 1954, the company
in
Noxon
will
Some time ago
of
pro¬
gram.
In
as
there
reported
Gorge hydro plant in
in August, 1953.
Addition of this plant doubled the
capacity, enabling the company to
Idaho
a
Power
merger with Puget Sound
&
Light. A definite plan
developed but did not even¬
was
tuate at that time.
A stockholders'
$85 million hydro plant committee, representing stock in¬
terests
in
Puget which favored
at Noxon
Rapids on the Clark
the merger, is still alive and it is
Fork River in Montana.
When
fully developed* this new 385,000 possible that fresh efforts may be
made to effect such a merger.
kw project will add
substantially
Washington
Water
Fov/er
is
to the company's generating capa¬
bility. Subject to obtaining nec¬ currently selling around 41, and
based
on
the
$1.70
dividend
essary Federal approval, the com¬
(largely tax-free due to acceler¬
pany has schedu]ed construction
ated
amortization)
the yield is
to start in July, 1955,
making the
Share earnings of
first power available in 1958 or about 4.4%.
build
an
$1.99
for
the
12
months
ended
up and control a new hydro gen¬
as
a
re¬
deck load
Jan.
14, 1955, and on July 6,
name was changed from
McLean Securities Corp. to Mc¬
Lean Industries, Inc.
1955, its
the
three
months
ended
31, 1955, McLean Securities
subsidiaries
consolidated
re¬
ported operating revenues of $13,506,287 and net income of $292,167,
on a pro
forma basis.
Portland
General
Electric
to
May
did not include the sizable
amount
of
tax
savings
due
to
amortization.
set
erating company, Pacific North¬
Power, which seeks to con¬
west
struct and operate large northwest
hydro projects.
This program will
harmony with President
in
be
Eisenhower's
power
partnership
This company was in¬
program.
corporated
two
over
years
ago
and is
of
investigating the feasibility
constructing a 244,000 kw hydro
The
plan,t
in
First Boston Corp.; Union Securi¬
ties Corp.; A. C. Ally'n & Co. Inc.;
Eddy
on
and Harriman
Northwest
Other
underwriters
are:
Ripley & Co., Inc.
In
north
Idaho,
at
Bruces
the Clearwater River.
November,
1,954,
Pacific
also
applied
for
a
preliminary permit from the Fed¬
eral Power Commission to study
Branches
Laird, Bissell & Meeds
1899.
of the tanker and would be loaded
trailers would be carried in
or
and
ANALYSIS
North
movable containers
March
COMPARISON
since
common
1959, with the entire project to be
completed by 1960.
Washington Water Power has
joined forces with Pacific Power
&
Light, Montana Power and
For
412 Jerusalem Avenue.
and
ports
generally similar to the trailership service except that dry cargo
on
CITY, N. Y.—
Gerald Bernstein and Leah Bern¬
tively
the
on
and unloaded by shore derricks.
The corporation was organized
Co.,
to conduct
management
Farmer, Jr.
Forms
containership service
J. J. Holland Opens
J.
H.
which
of
all
the Cabinet
10.00
1.50
Exch.__
seven
Pan-Atlantic is undertaking the
$2.60
5.84
Chemical Corn
owns
vessels and two tankers.
Kate
$2.24
Manhattan
It
oorts.
Dividend
1955
1951
4955
$2.04
Bank of New York
Chase
Gulf
*12 Months
First Half
1 »54
been
about 3% of the total.
operates
-Earnings-
in
mission
dividends
have
the
source
City, First National, and Chemical Corn Exchange. Also, adjust¬
ments have been made for stock splits and for stock dividends:
one
utilities
file with the Federal Power Com¬
while
stock
whose principal operat¬
subsidiaries
are
Waterman
Steamship Corp. and Pan-Atlan¬
tic
Steamship Corp.
Waterman
Steamship operates a world-wide
steamship
service.
It owns
29
cargo
vessels and transportation
of
freight
provides
its
major
mergers
electric
early this year, is a holding
ing
for the 12 months ended with June 30.
in the two periods covered pro forma
material is used for Bankers-Public; Chase Manhattan; National
of
of
company
six months' operating earnings figures for these
banks,
leading
Because
of $3 series
($50 redemption
stock
McLean
ized
oldest
Pacific
Northwest, last year
being its 65th year of operations,
the pro¬
of
share
approximately
$7,000,000 will be applied to the
payment of a bank note incurred
the
the
of
McLean's
ceeds
to
Washington Water Power is
of
the
sub-holding companies), the stock
offering (was quickly com¬ /having been distributed to holders
The
to
showing this better rate of improvement.
look
share
one
outstanding 10,000 shares of $5
preferred stock at $100 per share.
As the
12 months' earnings through June 30 were only about 6.4% higher;
the six months' results, 18%; and the quarter 24% better, it is
probable that the banks are experiencing a trend for the better
so far as operating earnings are concerned, with the nearer periods
was
is
of
one-half share
stock.
The price per
and
170,000 are being sold for the ac¬
the company and 20,000
easily account for the better level of earnings in the half.
As
consists
of
ance
in their
bankers
95,000
unit
T"
Washington Water Power Company
preferred
$3
and
about
were
cumulative
of
stock,
like
banks
Utility Securities
By OWEN ELY
190,000
count* of
second
1955
Public
Securities Sold
i
White, Weld & Co. and associ¬
ates on July 15 offered for public
New Reynolds Branch
SALISBURY, N. C. —Reynolds
& Co., members of the New York
Stock Exchange, have opened a
branch
Building
office
under
of Frederick P.
in
the
Wallace
thet management
Spach.
the
feasibility of
development
on
an
850,000 kw
the Snake River,
comprising the 250.000 kw Moun¬
tain Sheep and the 600,000 kw
Pleasant
of
the
Valley dam sites. Costs
two
projects, including
AREA RESOURCES
explains why
tremendous
area
we
BOO:<
serv»
Write for free copy
P. 0. Box 894, Deot. M, Salt Law? Citv 10
UTAH
transmission lines 'to In*'* con*0**.
is estimated
at
over
$200,000,000,
offers
opportunity to industry.
& LIGHT CO.
I***
Volume 182
Number 5448
...
The Commercial and Financial Chronicle
the record of the past
(287)
coupled with' the promise ofthe future
outlook,'old in character, successful in operation,
QCf Industries today links nearly 100 years'experience
with the new profit opportunities of today's advancing technologies.
New in
v
Summary of the
\
Our country and our country's leading railways have depended on
QCf Industries as a basic source of supply—wherever
the
supplier
was
reliable, heavy-industry
required. Recently new ventures in new fields have
been undertaken which promise new potentials.
experience and ability of
a
56th ANNUAL REPORT
for fhe fiscal year ended April 30,
Net Sales.
66,630,139
Payroll.
Materials and Services
new
fields...
new
ventures?
An
opportunity to participate in a wider area of American Industry's
expanding economy... electronics, nucleonics, aviation, carburetion,
automation and specialized valve equipment..
QCf Industries' fiscal year,
closed April 30, 1955, marks a twelve-month
period of constructive corporate operation, but more
important, it also marks the beginning of an anticipated
expansion in the allied fields of transportation and communications.
30 CHURCH STREET
•
.
.
.
15,979,537
•
t
•
•
•
•
4,523,197
9,124,217
•
.
Preferred*.
t
Common4
'Computed
on
Common shares
INCORPORATED
QCf
103,641,473
6,855,320
Earnings per Share:
INDUSTRIES
i
Revolutionary New Talgo Train Built by
.
Taxes
Net Income
ocr
VJl V> A
Articulated Coach of the
.
Depreciation
Income before Taxes
What
1955
$190,774,346
NEW YORK 8, N. Y.
«
14.57
6.62
the
basis of the Preferred and
outstanding at April 30, 1955
23 'r
The Commercial and Financial Chronicle
Continued, from page
The
7
Menace to
the
of
chored
Whenever
life-blood
lars.
in
living
are
we
to
connection
One observes in this
that
themselves
entrench
in
office,
powerful
enough, by
the applications of such methods,
to defeat or crush its opponents
as
of
day
a
distinguished
as
paradoxes. Ceremonious occasions
are created to bewail the sad
lot
party
a
and the
downtrodden.
Men in. high places
lament the inadequate wages of
the
Mere spon¬
sorship and advocacy of higher
wages seem to bring those in pub¬
lic life both applause and promo¬
tion, and the expectation of being
retained
of
rifying struggle in the world to¬
as the result of the schem¬
ing of a few despotic individuals.
trol
the
not
self-elected.
transforming this
rep¬
not
vited.
happen again, and will not if our
cause
savers
This
state.
must
exist, and they always have,
to
and shedding tears out of
is
commiseration for the worker be¬
not
If
retain
to
are
largely responsible fdif the vanish¬
ing returns upon the accumulated
forward
duce
to
their
supplement
jngs
savings to
income for
an
their
and
comforts
and
years.
and
women,
depend
relaxation
chasing
the
their
eventual
pur¬
ment
bonds,
would
be
why
at
loss
a
of
and
the
to
understand
advocate
reducing
the
at
earning
unem¬
time
same
the
of
power
billions of saved dollars that many
of our workers have toiled almost
lifetime
through
self-denial
to
accumulate.
middle-class folks—the
salt
of the earth.
They should be a^e
to look forward
confidently to the
day when our leadership in gov¬
gravity
when
would
be
this
of
they,
very
aroused to the
whole
situation;
leaders, would
our
recognize that
employed money, if
honest, is only employed labor in
another
We
form.
are
talking aboht renresentlabor at a tirrie when the
ative
stability
ened
of
by
world
dollar
the
gigantic
that
the
is
threat¬
for
When
it
the
well-being
and
preservation
sound
of
money, we can readPv understand
that the problem
tra^^nds in
importance, parties, politics, and
partisanship.
All
through
systems,
historv.
govern¬
debasing their mon°v
have
multiplied
thmr
functions
at
ments
by
property,
their
the
this
process
Politicians
disposed
are
office
interest.
Our
that parties in
of
Democracies have
exploitation.
public
the
lives
and
not been spared in
persuasions
of
expense
libertv,
citizens.
and
of
to
personal,
a
savers
make
are
bv
built
printing-press
common
a
to
do
vi¬
tal
principle of sound money—the
money
cornerstone of representative gov¬
ernment.
They discover that it
office
new
to
to
t^eir
find
sources
perpetuation
and
to
exhaust
of revenue, to create
more
unproductive jobs as a re¬
ward for party adherents, to per¬
mit
the
and
more
and
more
to
fatten
public payroll, to make
more
dependent
ignore
they
nor" any
gressive
ruthless
the
was
taxa¬
terror—the
debt, the disregard for
inflation, is the
greatest
of
nerstone
which
millions
lic,
who
is
"It Must Not
We
hold
them
of
the
mass
voting
control,
be
made to understand that solvency
is
small
no
matter;
that
is
it.
a
thing; that it is the very
cornerstone of the kind of govern¬
on
more
citizens
upon
that
ment
free?
makes
The
is:
answer
informed
become
When
through
economically
the public nurse.
By prolific spending of printing-
any
Happen Here"
can't
happen here.
it must not
proceed
us
As insurance
men
and
bankers,
trustees for millions of
savers, do
we
realize what it is
going to
keeps men
and
to
to make that declaration a
living
reality by recapturing the control
of Federal spending, restoring the
gold standard, and balancing the
Federal
budget at the earliest
possible moment.
pub¬
savers
our
it
say
Rather, let us say,
happen here. Then let
balanced
a
When will the
budget.
happen
can
free state.
historic
the
that
tragedv
other liberty is possible
political liberty, the cor¬
without
they
to
mean
some
the
great
fundamentals
cherish under this representa¬
we
nation-wide plan
tive republic, if we tolerate in
education,
country*
of dollar literacy
when, if it is not too
or
themselves
they,
late,
feel the full burden
to
the fact that they,
do
themselves are
said
is somebody's responsibility.
on
indeed that
rare
watchtower
the
seem
able
I
then
What, is to
this
pose
be
done to
fellow
to
make
strated
must
insurance
the
a
lege
in
this
That
the
us,
now
is
before
War
free
that
with
it
diploma
a
an
understanding
fundamentals
first,
would
of
money,
II.
that
is
a
oft, familiar with
"These
of
at
the
first
sight
spending; we, too
then came to endure
have embraced it.
we
was
of
a
the
resposibility of
work, there al¬
ways has been the same result, the
individual became the creature of
to
of
free
of
ment
World
unprecendented
halted, will
soon
agency
—
to the world
a
a
system
govern¬
"of the people, by the people, and
hope
If
-
people"—now the last best
earth.
on
that
The
picture
American
I fear
relations
be
a
overdrawn,
lie.
brought about the rise
a
in
which
for
wilderness
they
gave
so
of
confusion
helplessness and ignorance,
too, would add one more name
to the long list of defunct civil¬
izations.
They trembled as they
anticipated the day when the vote
of the majority could be bought
in exchange for alleged economic
social security. Someone has said:
we,
Welfare Governments.
"Beware
"The
out
as
ing
slave
a
in
state
always starts
welfare state"—progress¬
three steps: first, bank¬
ruptcy, then chaos, then dictator¬
ship.
"It promises freedom from
worry, want—as many freedoms
as you wish, except freedom from
the
State
itself.
Whenever
you
are
wholly dependent on any¬
thing, you are a slave to it. Ask
the
Germans,
the Fascists, the
French of the 'Peoples' Front.'
"Sure, you can have freedom
from worry and want — at the
price of freedom itself.
Since
time
began,
promised easy
reformers,
depending
into
'reformers'
plenty,
them, always turn
on
went
Even
don't
work
have
but these
have you
they
once
dictators.
formers
Dollar
the
glib re¬
freedom
promise
(hours
in
Germany
Congress
to
reason.
provide
Poli¬
full
vested in the
House, the true Rep¬
the people. It had
resentatives of
been
into
burned
the
departure
hearts
the
of
that any
this fundamental
Founding
Fathers
from
.
Our
in
should
other
earth
on
principles of eco¬
so
ruthlessly
have
violated.
that
know
countrv
sound;
nomics
and
Savers Know"
savers
no
could
been
Thanks
to
endless
our
inexhaustible
apparently
re¬
have been able, up to
now, to meet our obligations and
to remain solvent. The best proof
sources, we
that the American pattern of gov¬
ernment
is
able
endure
to
sound
the
under
years
that
is
it
the
in
was
prewar
greatest orgy of
peacetime spending that any gov¬
in
ernment
period had ever
attempted in the history of civil¬
ization, and then become the ar¬
senal and treasury of democracy,
to
anv
the
save
world.
As much
present indebt¬
our
as
edness alarms us, it is our appre¬
hension of the present trend that
overwhelms
mindful
of
We
us.
those
otic Americans
United
such
the
States
him)—who
ment
Congress
this
at
Byrd
of
time,
(God bless
this
at
are
un¬
oatri-
Democrats and
—
Senator
as
not
are
stalwart,
Republicans—in
the
fighting against
very
mo¬
almost
in¬
surmountable barriers to preserve
solvency.
the
Their
efforts
seem,
moment, to be making
at
some
progress.
will
Men
if
they
not
know
struggle
to
save
are
that they
ulti¬
mately to be denied the fruits of
their labors.
No
able
to
That
*
of
trick
is
known
we
national
ever
outlook.> Our
has
group-greed.
he
and
in
as
our
group-con¬
brought
about
have
proved
We
be
can
we
those
rapidly losing
are
sciousness
that
to
individuals
As
power.
classes
Jovic will
destroy that human trait.
fact
purchased,
big
business included, and silenced bv
carefully-nlanned
out to
by
us
ited
handed
doles
some
brarch
or
other
ment.
work and work efficiently, we
automatically have freedom from
want, Without loss of
our personal
freedom.
"Efficient
work by
everyone
and
I
and
L|wer costs
what you
more
people
Thfe
make.
who buy, the greater the
and
the
is
as
more
worjk
simple
only
mean
canfbuy
people
more
way
as:
demand,
for all of us.
and
it is
freedom
and
that,
to
Our forefathers
recognized that
when people are informed,
when they discern, are they able
to
exercise
the voting privilege
only
wisely
effectively
and
interest
own
and
tuation of their
knew
that
of
once
men's
for
their
in
the
perpe¬
rights.
own
lust
for
They
power;
entrenched, they reluc¬
tantly yield their positions; that
they create situations to perpetu¬
themselves
in
control; that
they surround themselves with
hangers-on;
that
they
a
vast ever-increasing,
tax-consuming army
of servile
public employees — bureaucrats
and agencies—that by means of
up
contributions
pockets
systematic
treasury,
of that great nhilanthroolc agency
which we call our central govern¬
Our protests against the unlim¬
money
of
the
erosion
taken
from
people,
of
the
by
a
public
individuals," states,
and
outpouring
of
borrowed
grow fainter and fainter.
States and their local subdivisions
are
losing their constitutional au¬
Federal
projects
and
tonomy.
grants have done their work. Even
branches
in
ment, set
tion
national
our
up
govern¬
under the Constitu¬
maintain
to
the
balance
to
abdicate under
the
manu¬
factured declaration that there
istts
extreme
an
the
recoTnized
springboard
abandoned
time-henored
guards.
ex-
emergency
impliment to despotism.
have
of
have shown their willing¬
power,
ness
plenty.".
the
another
hu¬
of
liberty,
the
Constitution,
providing, among other things,
that the spending power shall be
man
60 a week) and the
strange fact they hope you'll for¬
get is this: If you and I and every
to
up
build
Threatened
instrument
unprecedented
where,
our
impossible pledge to carry out.
When legislation is introduced in¬
the
That is why
from that safe-charted highway of
honest money would lead us into
an
to
They knew
hungry
the fate of the American
for
close stu¬
were
freely of their blood and treasure.
They knew that any departure
value
qualifying them to
exercise their voting franchise in¬
telligently.
They
they attempted, through the Con¬
stitution, to map out the safe way
which we should pursue to estab¬
lish and to perpetuate the prin¬
ciples of government and human
lavish
dollar
And
them.
against
Because they were historic¬
ate
then all history is
can be fooled and sold down
river; how readily they can be
betrayed.
Out of the wealth of
their wisdom and their power of
discernment they gave to us that
ple
were
ignorant,
are
fall of nations.
the
characterized by Lincoln as
for the
a
thus
Fathers
dangers, of which
savers
our
had
how human
seen
the
"Let the
warned
and
had
men
operates; how easily peo¬
beginning of the end of that free
government.
Founding
why?
It
structure,
nature
of free government would be the
of these
many
can
their
relinquish
to
at
men
The
made
time-honored,
independent pre¬
rogatives in favor of an ambitious
central government.
government."
aware
subdivisions
political
be
the
discharge
keeping
ticians promise full employment—
—
and attempted
has accepted
ment
responsible for
advent of
such
unless
that gave
back into
go
history and find without import¬
variation that where govern¬
debt
must, of its own weight, col¬
lapse, leaving among its ruins 150
years
in¬
modern
could
ant
medium of exchange;
second, a measure of value; and
most important, a storehouse of
are,
three
are
One
stances.
worry
tem
nation
of the
which
deficit)
vency,
re¬
carry
sense.
from
the stage of safety and sol¬
and this governmental sys¬
pass
should be
so
say:
women
work and in no other
one
too
what
rearing
even
and in every col¬
great
might
j
of
it: and
How
required to complete a
course and acquire a clear under¬
standing respecting honest money,
in
who
Paraphasing
we
shivpred
many
sponsibility to teach solvency but
have they discharged this obliga¬
tion? My answer is a resounding
"No!"
Every boy and every girl
in every school
those
of uncontrolled
men,
sacred
were at
lowers all costs.
dollars?
have
place
for
We first endure, then pity, then
embrace."
Educational Responsibilities
schools
has
feme.
size
Th
then
of such friqhtfvl mien
s°en
her
we
of honest
hottest
(Federal
seen;
proceed to impress upon
the public mind the vital import¬
ance
silent
someone
neutral.
Yet.
impressive these demon¬
axioms?
and
reserved
monster
do you and I possess
historical
we
As to be hated, needs but to be
We
Really,
remain
the
is
"Vice
people?
what power
If
misfit custodians.
Alexander Pope
to
question:
arouse
that
remain
recognize the approaching forces
of disintegration, and as for the
masses, they seem never to have
been able to identify the enemy
that
comes
to
destroy
sound
money on
which political, econ¬
omic, and social liberties are cre¬
ated.
and
dis¬
a
philosophy?
are
class,
Hades
men
even
of
our
qualify to be numbered in the
neutral
security, and that educational pro¬
gram
we
do
we
we
paying the bills for their alleged
fiscal
not,
If
of
continuation
a
credited
made
are
of the tax
conscious
sorely
become
and
uo
giving little thoueht to the
in
of
advent
exhaustion,
Loss of confidence in its money,
which in the final analysis is pro¬
vested
so,
contributes
their
solvency.
fact that neither economic liberty
should know
power
maintained
of
all
practice of feeding their following
out of the public
treasury, creat¬
ing
.
is
destiny of all free neoples center
in
this
In
It is
speeding
rehabilitation.
known
erosion,
that
—
demon
sacred
These millions of people are the
ernment
made
Economic
they imagine is economic security.
direct their ingenuity toward low¬
ering
what
treasury
tion
always will be, some who would
exchange political liberty for what
means
ployment
And
land.
this
millions
and
"humanitarians"
drastic
in
state
purchased govern¬
if they only knew,
policies,
who have
more
totalitarian
a
high places, made vacant
possib^?
They will fight it if they are able
to recognize it as it creeps upon
them.
There are among us, and
of the proceeds of
power
insurance
in
Millions of men
savings citizens,
our
upon
to
They
beckoning
the
ernment.
coming through sound dollar-edu¬
cation, which will prove to be the
price of our liberty.
pro¬
so as
and
Men
empldyed in the sense that
were
they
what
had arrived.
by the breakdown of solvent gov¬
personal earn-i
American citizens will not wit¬
well-deserved tingly
accept the establishment of
secure
declining
them,
disappeared.
that their day
them
In each
Premier Stalin in Russia.
dents of world affairs.
before
So did
of those countries human liberties
ally minded.
saw
Signor
did
So
and
seats in
is this vigilance,
It
government.
employment.
witnessed the helplessness of
those
in
power
and recognized
erned, we, like our fathers, must
stand
out
against
any
effort
further to multiply the powers of
savings of our factory workers,
clerks, teachers, mechanics, min¬
ers, farmers, and others who look
full
Mussolini in Fascist Italy.
so¬
men
vestige of the consent of the gov¬
their
all
Those
Nazi Germany
political sagacity
and
a
burning passion for power, these
any
his pay envelope is thin, are
cause
years,
native
hoped-for cure
malignant than the
we
the
Possessed
of
a
superior
of persuasion, coupled with
power
the
more
disease.
through
be¬
had
foundations of civilized
very
by wise and just
But what we should
that
is
created
ciety.
removal
legislation.
see
power
which
situation
the
in the very things
that are now transpiring, in the
tragedies that are still rocking the
all informed citizens will welcome
their
They dame into
culminating
today of the evils
capitalistic exploitation. If such
evils
con¬
destiny of Europe were
They were in¬
of
been
informed.
are
We hear much
exhausting their 'store of elo¬
quence
Look at the present ter¬
The dictators who seemed to
socialistic
permanently on the pub¬
lic payroll.
Yes, here is the strik¬
ing paradox:
The very same agencies and the
very same political leaders who
are
a
its powers,
prosperous.
an
"Herr Hitler gave
day
resentative republic almost into a
less
Debasement."
editorial from a great
Money
Through
Quoting
the
to
modify or nullify constitu¬
tional restrictions so as to extend
underprivileged
the
of
employment it should be labelled,
"A Bill Providing for the Destruc¬
tion of the American Way of Life
American newspaper:
wherever
and
up
at hand.
and to
of
labor
no
are
people has been
maintain men in
power,
to
sustain a top-heavy
government
with
fiat
moneyspending, no matter what name
it bears, the day of reckoning is
the New-Fair-Deal¬
from
the
Democrats, for 20 years were able
ers,
honest
There
unions in dictator countries.
press money,
must also be an¬
American dol¬
plan
to
.
labor.
sucked
bilization
chal¬
only
intelligent, coopera¬
tive action of education, business,
and the legal fraternity, but also
Sonnd Dollar
a
not
situation
lenges
Economic liliteiacy—A
a
Thursday, July 21, 1955
...
(288)
24
—
and
Thus
many
we
of
our
constitutioral
safe¬
Through the creation and
operation
of
numerous,
ever-in¬
creasing alphabetical agencies and
commissions, many exercising un¬
disputed
legislative,
executive,
and judicial powers,
sulted
a
there ^as re¬
delegation of authority
of such proDortion that the consti¬
tutional
have
pillars
of
government
largely been eaten away.
Need for Education of the Masses
I
and
repeat—we,
banking
of the
insurance
profession, should
participate
in
a
needed, fact-revealirig process of
stimulate
and
Volume 182
Number 5448
education of the
the
It is
task.
the
at
tional
partner
belief and
of those who
my
conviction that many
stand
The Commercial and
Our great
masses.
school system should be a
in
...
head
of
educa¬
our
including our en¬
institutions, if they only
forces,
dowed
Financial Chronicle
self-reliant,
savings citizens,
possessing
voting
control,
to
whom, as I have tried to impress
upon you, we, as insurance men
and bankers, have a high moral
obligation. Let us not continue to
of
class
thrifty,
money-educated
themselves in
peril. There is no justifiable gulf
between education and business;
trifle
without
academic
they
are
the
proceeds
come
private
constructive
from
that
busi¬
ness,
schools must starve! In turn,
with
a
healthy atmosphere in the
The
of
our
Republic ati^ of the world.
grant that our saver-group
that, that leadership which has
may be so alerted as to see the
schools, kept free from disturbing
light and thus be prepared to ex¬
ercise their franchise in their own
"isms," they can
interest
eration
observers
come
resolute
of
a
gen¬
thinkers
sound
of
clear
formed
raise
and
up
to
and
defenders
in¬
May the day soon come when
is
understood
that
and labor
ness,
It
And,
Dr.
participants in the affairs
government and everyday life.
it
busi¬
schools,
interest of
the
her
im
finally,
the
are
of
vive?
istion
that
If
ierica to Sur¬
less
is
Bountiful
ica's
the
road
York
world
has joined the Milwaukee
Counseling Staff of Loomis, SayleS
on
&
Before coming to
Aug. 1 will admit
Harrison, Jr., Ex¬
change member, to partnership.
On July 31 John Y. G.
Walker,
Jr., will withdraw from the firm.
Prior to
Forms Miller Securities
Opens
Nicolas Richman is
securities
business
City,
under
Richman
offices
are
the
Atlanta
Paine, Webber, Jackson
He is a graduate of the
and the
University of Minnesota
Harvard Business School.,
Fed¬
Philip
L.
Mr.
Miller
business.
Miller,
H. S. Rothstein
Officers
offices at 50 East 42nd Street,
Miller, Secretary.
was
formerly
Opens
Harvey S. Rothstein has opened
President,
York
with
City, to engage in
a
ties business.
Hancock, Blackstock & Co.
Company.
of
& Curtis.
Savings Building to conduct
and Mrs. W. W.
The
of
name
in
investment
an
Street, New York
the
offices
eral
engaging in
from
associated with the New York
office
Corporation has been formed
joining Loomes, Sayles
in Boston, Mr. Selle
Company
was
ATLANTA, Ga.—Miller Securi¬
with
Milwaukee, Mr.
with
the
associated
was
home office of this company.
&
ties
N. Richman
Company, 411 East Madison St.
Selle
and
service."
natural allies.
are
ought to be burned into the
consciousness of every citizen that
the first line of defense in a free
country is a balanced budget.
Let
dismiss any gay optimism'
us
clearly intended to charm and dis¬
arm
The
us.
cold
calls
wartime
for
action—speedy action, intelli¬
gent action,, determined action. It-
must
be
action
organized
too,
we,
Let
the
Gordon.
L.
of
our
.
ponder
us
James
words
These
of
words
meaning having to d"> with
important function of
carry
the
•
and before
robbed
are
weapons.
whi'e,'
action,
is s'ill possible;
most
storehouse
money—a
"Monev
is
represents
of
value:
powerful because it
much. What a tre¬
so
investment
mendous
has
bpen
made in order to produce a dollar
—time, thought, effort, toil, con¬
and
flict
high-nerved
Therefore
the
is
lake
mcst
world.-,.
r
costly
-
endeavor.
of
care
money;
in
thing
it
the
t
"Time is money. Money is char¬
Character
acter.
three
these
to you
is
short
If
destiny.
sentences
seem
tp lack logical connections
the
suggestive
remembpr
then
words of Sir Buiwer
says,
'Never treat
with
He
Lvtton.
levity,
affairs
money
for money is char¬
Money is character. How
you get it. Hovv you keep it. How
you invest it.
How you spend it.
How yen hoard it.
How you get
acter.'
it.
Hew you use
influenced
bv
character!"
should
Tint
song"
and
^
money
insurance
"money is char¬
—
We
"theme
the
be
is
•
should
that
see
our
know it.
Men
have
struggled throughout
centuries,
to
freedom.
to
determine
born
How you are
Yes,
American
*
bankmg
acter."
savers
the
it.
it.
(240-241.)
serfdom
f^om
It
lies
in
our
the fate
generations.
the
of
Will
uo
power
WORKS—High-power transmitters and giant antennas force ultra-high-frequency waves heyond
The main beam goes out in a straight line. But a small amount of energy moves out in other
directions, and some of it is picked up by the receiving antenna. Thus the signals "bend" around the earth.
HOW IT
un¬
be
the
it
the horizon.
/
despotism of debt,
the security
or
of government solvency?
the
have
inspired
vision
Fathers
Founding
May we
to
of
should
We
having
our
go
forward
lack in
must
will
not
clear
a
rights
our
courage,
understanding
and
obligations.
accent
that
ourselves
and our savers to stay the threat¬
ening process of disintegration.
We
shcu7d know after nearly
20
cf Federal
years
most
our
deficits
at home.
number
c
a'ready
e
mands
prompt,
that
that
decisive,
Let
us
leadership
line of
first
land,
other
lands,
trust
to
the
deficit
returned
of
in
the
has
in
defense
above
breach
sion moved out
possibilities for both
But
Long Distance calls and television
of
all
its
people.
now
scientists
with
zons
this
always seeking
in the
one
telephone business. And
really deals with horizons.
It's based
an
hori¬
new
on
the
finding that part of
ultra-high-frequency beam
be "bent" around the
curve
can
of the
For years
of radio
Technology have
something
tiny
tions,
we
men
waves
thought the kind
that could be used in
a
way we can
waves over
any
the hori¬
relay sta¬
over
can see
water,
televi¬
nas.
This
We
that will
can't build
re¬
your
the
think
for
we
our
microwave
telephone calls
over-the-horizon
technique will be another helpful tool
200 miles.
where
send
in
and television from coast to coast.
important
far
thousand times
and thirty times the an¬
systems that
as
as
is twenty
tenna area we use
how this is
for
do it is with 10-kilo-
transmitters and 60-foot anten¬
might send hundreds of
telephone calls and maybe
You
The way we
watt
the power
Thus, without
zon.
come up
new.
They have found
send these
sion programs
earth.
Telephone
Laboratories and Massachusetts In¬
stitute of
We're
Bell
at
lay towers. And in rugged country,
too, where towers would be costly.
telephone
ice for
men to use.
mean more
more
and
And
and better
more
one
serv¬
people.
under the control
shou'd
the helm of
State, sailing
waters.
national
addicts,
to
which
American
Such leadership
of
educa¬
remember
and ,glorified
choice
was
de¬
h"s weakened
incompetence, and
our
destruc¬
emergency
villified competence
the
relaying telephone calls and televi¬
only in a straight line.
UHF radio has
flags, but
tragically
The
action.
tional
New way to use
Deficit—America's
national menace—has
dene
work.
tive
that
dangerous foe is not to
be sought under foreign
here
the Telephone Horizon
on
re¬
of
educate
to
Something New
we
share
our
There's
of
We
whether
determine
new
sponsibility
in
1
they have begun.
as
as
not
be
the Ship
it is in troubled
BELL
TELEPHONE
SYSTEM
The abUity to save her is
hands of
the
•
great middle
•
Selle
Stock
safety, to her happiness, and
to her
a
New
V.
Amer¬
to
the
Benjamin
The road
self-discipline
of
Sayles
MILWAUKEE, Wis.—Robert W.
Exchange,
and
they bear her, they
willing to sacrifice.
is
members
think
to
With Loomis,
Granbery, Marache & Co., 67
Wall
Street,
New
York
City,
mother for whom,
as a
at 50 East 42nd
-Ts'-iA
Granbery Marache Admits
survive
will
cease
Lady
a
self-denial
of
words
Douglas Soutfeall Freeman of
Banking:
will
individual
free¬
Richmond at theof
as
regard her
dom, to save what is left.
be¬
prepared
and
of
America
sons
from the love
the last hope
ballot boxvis
Yes,
one:
—if her
that Trusteeship.
with
today than it has been
since April, 1865, the answer that
comes from the
past is an assured
God
knew,
25u:
(289)
''j
New
securi¬
.Thursday, July 21, 1955
The Commercial arid Financial Chronicle..
26
(290)
Continued
with turbine
through the
present
"house brand" gasoline
pumps.
But the demand for pre¬
mium
gasoline should continue
begin
jrorn first page
fuel
The Future Petroleum
for
Industry and Atomic Power
$7 billion—more than the value of
;ill other minerals produced in this
iron ore, coal,
silver, and
country, including
gold,
zinc,
lead,
industry con¬
approximately one dollar
of every 30 to the country's
petroleum
tributes
out
than
more
some
In
total
the
of
of
the
United
the demand for
1954,
petroleum liquids averaged over
7% millions barrels per day. That
equivalent
each
and
child.
to
day for
States,
2
about
every
gallons
man,
woman,
the
United
Outside
capita consumption is
Nevertheless, the daily
per
far lower.
demand for petroleum in
outside
areas
the free
last
million
country
our
nearly
average
year
0V2
(barrels.
The
market
rities
is
of
the
value
the
of
secu¬
industry
petroleum
indication
good
a
of
its
size;
the market value of stocks of the
35
leading
companies
oil
amounts to more than $27
these
.Since
counted
35
now
billion,
companies
ac¬
for
only 52%
of last
crude
oil
production,
a
year's
of $50 to S60 billion for the
guess
market value
of
securities of the
entire petroleum
industry does not
The
launching
service
of
placing
and
in
atomic-powered
one
recall
the
World War
II, petroleum products
amounted
to
60%
of
the
total
weight of military goods shipped
overseas.
At
the same
time, a
sizable portion of domestic con¬
ural
gas
of
petroleum
directly,
in
the
movement of
pendence
the
oil
on
continue
to
fighter
its
consumes
shift
for
you
may
figure for
million barrels.
Along with the growth in U. S.
all
for
the
products,
from
jet
a
change in the demand pattern and
to
operation accord¬
govern their
plagues the industry with
oversupply of some products
an
from time to time in various areas.
To
prevent recurring accumu¬
of
excessive inventories,
lations
individual
each
in
company
the
better job of
coordinating its own level of oper¬
ations with its sales requirements.
industry must do
Until that occurs,
a
the industry will
be in for temporary
high.
These
price adjust¬
stocks
wherever
ments
reactions
price
too
are
will
automatically bring about reduc¬
tions in refinery runs and thereby
tend
to
reduce
swollen
inven¬
tories.
Pattern of Demand
in
Changes
the
seasonal ^pattern,
present
of the
there will undoubtedly be marked
relative demand
for the various products derived
tinally faced with changes in de¬
from
mand
industry's initial "coal oil"
jet fuel is just
for
one
various
our
products
and with improvements in
of all of
quality
products.
our
in
changes
the
of
barrel
a
oil.
the
From
econ¬
to today's gasoline economy,
omy
refining techniques have un¬
seme
radical
changes.
our
dergone
Oil
Up
in
to
Your
this
Future
point
I
talking about the oil in
Now
let
Your
Just
have
past.
our
talk about the
me
been
Oil
in
Future, particularly for the
5
Jiext
There
almost
are
as
dif¬
ferent forecasts of petroleum de¬
mand
for
1960
and
forecasters.
are
many
1965
there
as
However,
for
what they may be worth. I'll give
the ideas
you
veloped in
We
my
the
company.
States will increase
ten
next
of
rate
average
compounded.
year
half
only
growth
1346
the
that
and
demand
at
years
about
3%
While
an
per
this
is
of
rate
average
occurred
between
35%
some
in
will
be
ago
Now, with growing use
of jet and turbo-prop engines, the
pendulum appears to be swinging
war.
the
other
way
Fortunately for
new
engines
ones
rather
for
aircraft
our
industry, the
fuel.
replacing the old
slowly, and many of
are
facilities
ply
aviation
constructed
to
sup¬
gasoline are
now
high quality mo¬
tor fuel for today's high-compres¬
sion automobile engines. Some of
you may not realize the sharp im¬
provements
in
gasoline
quality
needed to make
which have taken place.
comparable, quality-wise, to most
In tefms of volume,
figures indicate that demand
1965
decade
last
above
approximately
World
At
War II aviation fuel.
it
present,
possible
that
a
would
further
shift
to¬
ward
the
could
occur
day
of gas-turbine engines in automo¬
in
1954.
expecting
growth
demand
to
"trend
a
"wn.
6%
For
the United
at
the
States,
in
continue
rate
free
world
we
are
petroleum
its
about
recent
twice
our
Such growth of from 5V2
per
year
will result in
foreign
demand
that
the
of
almost
United
States.
a
to
1965
equal
for the generation of elec¬
This will still further
shrink the demand for heavy resi¬
tric power.
oil, thus continuing the
trend that began with the use of
dual fuel
diesel-engines
to
Thus,
propel
and
generators
electric
railroad
drive
to
locomotives.
problems of shielding atom¬
plants to eliminate the
The
ic
power
these
of
will
present
the
duct
old
"coal
oil"
serious
a
business
oil
rival
possible
it is
as
we
economy
with the introduction
biles.
Yet, with so many high
compression motors on the roads
and coming off the assembly lines,
and with only one old car being
scrapped for each two new ones
being .produced, conversion to gas
turbines
would
necessarily
be
gradual. In our lifetime, we may
sources
threat
timately
decide
will
considerations
will
source
ul¬
race.
energy
As of
outstrips
all the others in availability, effi¬
ciency,. convenience and price.
In the last analysis, we in the
petroleum
sellers
business are primarily
We hope and
,
of
energy.
expect to maintain our leadership
in this field.
With just this in
mind,
in the
now
uranium
are
business. Let
that if the sun's rays are
add
me
companies
oil
several
harnessed,
successfully
oil industry
the
the
will be in these sell¬
of sunshine
brands
best
the market!
Our
the past
changing
has in
met
the
industry
successfully
demand and
equally successful
in the years ahead.
The solution
lies in technological advances. We
have seen the development of ca¬
talytic processes for cracking and
reforming molecules of oil and
constructing other oil molecules
out of natural gas, all to provide
higher quality motor fuels and
pattern
of
expects
to
energy
be
materials for the
raw
chemical
new
petro¬
shrink¬
The
industry.
ing demand for residual fuel oil
brought about the develop¬
lias
of
ment
ment for
into
better
and
more
equip¬
converting that product
petroleum
of
this type have enabled the indus¬
try to keep pace with the current
demand for improved quality and
increased quantity, thereby sup¬
lighter
oils
and
coke. Progressive developments
public's needs and at
the
same
time, upgrading lowvalue products into gasoline, light
heating oils and building blocks
for petrochemicals.
plying the
Petrochemical
Petrochemical
Derivatives
derivatives
cal
be
may
expected
Petrochemistry
lives
in
big
a
how far it
I'm
clothed
is
an
way.
in
dacron
a
orlon
socks
has
to
as
chemi¬
this trend
continue.
entered
our
To show you
has gone, this morning
This
shoes.
use
materials, and
raw
have
shirt,
and
a
petrochemicals.
suit;
on
nylon tie, nylon
neolene
Even
I have
soles
on
my
spectacle frames
of petrochemical
Nothing that I have
is representative of the large
my
have
we
seen
us
huge
with
try
ments. Just
products com¬
growth indus¬
new
make
a
capital require¬
normal operations
our
require large capital expenditures
each
producing
our
which
assets
The
sold.
and
extracted
8%
the
replace
to
year
are
rising
finding oil further accen¬
tuates
our
problem.
While our
industry has great capacity to
generate funds internally through
depreciation, depletion, retained
earnings, etc., it cannot generate
enough capital to meet all of its
requirements.
We must look to
you bankers for large amounts of
new capital.
I repeat—There's Oil
in Your Future.
We
attract the outside capi¬
can
required only if we convince
that our industry represents a
and
profitable place for
you
sound
people's savings.
In assessing our
examine
industry, you
Three of
factors.
many
these factors that deserve and
ceive
attention
reserves
and
management,
are
re¬
particular
your
government relations.
The management of the petro¬
leum
of
industry has the reputation
intelligent
Since I am
progressive,
being
and
public-spirited.
"completely unbiased," let me say
I believe this reputation is well
Ours is
deserved.
industry,
competitive
petition
exceedingly
an
and
of
all
keeps
com¬
on
us
our
toes.
As
far
industry, we have gone
adoption of modern
an
in
our
We pay
concepts of management.
people well and provide them
opportunity
for advance¬
ment
and
Both
bor
management and la¬
to feel that on the whole
seem
relations
labor
our
employ¬
of
stability
are
excellent.
organization procedures
been adopted.
Decentrali¬
of operations—the delega¬
Modern
have
zation
only of responsibility but
authority—is widely prac¬
ticed.
Excellent people are re¬
cruited
into
the
industry,
and
tion not
also of
of de¬
velopment, training, and appraisal
comprehensive
at
of
levels
all
programs
management
are
trained
Highly
and
carried
on.
capable
managements in the pe¬
industry ' offer the best
troleum
available
assurance
portunities of
the
that
op¬
future can be
the
into profits for the se¬
converted
Reserve Picture
picture. Generally speak¬
ing, in recent years the big finds
have
oil
crude
outside
been
In the Western
the United States.
You
vast
Almost
East.
world's
two-thirds
known
located
there.
are
reserves
In
Middle
of
are
addition,
the
now
we
important
in this country, particu¬
finding
reserves
the
and
new
As
we
managers,
protect the property belong¬
ing to our security holders from
all types
We custom¬
casualty haz¬
ards, such as fire, windstorm and
the like, and we also think
of
economic hazards, such as com¬
petition,
obsolescence
and new
developments. We must also keep
in mind the increasing impact of
Government
upon
our
business
a'nd the security holder's invest¬
ment.
Casualty
and
economic
hazards
can
adversely affect a
arily
of hazards.
think
the
of
security holder's property without
his consent.
Government repre¬
another hazard.
sents
It
also
can
security hold¬
property without his consent.
affect
adversely
er's
That
a
Government
what makes
is
relations
important to progres¬
so
sive management.
our industry has
wholesome relationship
Government—and the policy of
Traditionally,
enjoyed
to
a
has
Government
the
for
search
end
that
which
one
to
and
oil
engage
in
to the
gas
would
have
resources.
You
nation
the
adequate
been
people
encouraged
energy
know, of course, as well as I do,
what has been achieved in this
under
country
oil
when
sort
that
climate—an
nomic
of
eco¬
abundance
of
needed
at
where
and
reasonable prices.
There's been
Phillips
change—and it's
a
the worse. In the
the Supreme Court
for
change
a
case,
for very obscure reasons, gave
Federal
trol
that
the
at
com¬
the first time
has
Government,
of
interstate
in
This is
regulated
the
the
ordinary commodity
point of production in
an
time.
peace
There is far
more
involved than
the welfare of the producer.
is
the
con¬
all gas
the field price of
moves
merce.
price
Commission
Power
over
This
big step in the wrong direc¬
a
tion—and if
enough such steps are
competitive, free en¬
terprise system will be destroyed.
The industry has marshaled its
taken,
our
forces
and
is
protect itself and
the American public
alleged "benefits" of
protect
the
Federal
Many friends
regulation.
industry, including nearly
the
of
engaged in an
now
supported us in
unwarranted
all bankers, have
this struggle against
encroachment,
Goverment
is
sure
are
not
which
in the public
interest.
In the
ulation
main, proponents of reg¬
self-appointed cham¬
are
pions of the consumer. They have
capitalized upon the implication
of
Federal
regulation — namely,
that
the
somehow
consumer
will
protected against higher prices.
be
larly offshore. The improvement
in
exploratory
techniques
and
Generally speaking, the producer
the incentive of a
higher price for oil, have made
it possible for us to discover and
profitable for us to develop un¬
tapped reserves. Also, n^ew engi¬
neering techniques enable us to
recover a larger portion of the oil
of
in
ceives
plus
tools,
place.
No
one
knows where additional
major reserves will be discovered
future.
in the
We
geologists hold
that there are vast
reservoirs of oil yet to be dis¬
covered in the sedimentary for¬
to the concept
mations
the
all
over
the world.
For
future, given a
economic and govern¬
foreseeable
favorable
mental
discoveries
will be limited only by man's in¬
climate,
new
genuity, imagination and willing¬
ness to look beyond present hori¬
on
zons.
composed
management.
Govern¬
responsibility of
basic
a
are
must
re¬
in
discovered
serves
with
relations
Sound
ment
are
the
with
familiar
also
in
Venezuela.
and
Canada
been
as
good
a
Sound Relations with Government
we
have
they
Hemisphere,
is
thing, but like whiskey, you can
have too much of it.
reserve
of
surely
as
Government
future.
from
Let's consider for a moment the
are
there's lots of Government in your
to
The
just
future
oil
of oil in
lots
there's
concerned,
of
reserves
as
all-out effort to
holders.
curity
derivatives.
are
Insofar
with
ment.
this trend.
being forced to follow
of
cost of
tal
and
your
Expanding markets and the de¬
velopment of
more international in scope,
the individual companies are
ing
haz¬
beginning.
only the
our
which
the
lead
liquid petroleum
today,
Basic
anybody's guess.
economic
to
me
makes
that
guess
con¬
now
The progress
made in this field
the
as
and
already
fertilizers,
tubes,
detergents.
ard
such
petrochemicals
and
energy
already found wide
appear
1OV2 million barrels daily, as com¬
pared with 7% million barrels a
outside
petroleum fuels may likewise be
by the use of atomic
Today's
premium motor gasoline is nearly
year's level.
our
a
a
1954, it will result in
of
over
the
predicting that demand
are
in the United
over
this subject de¬
on
little
a
had to build, almost
overnight,
facilities
to
produce
sufficient
high octane aviation gasoline for
military and civilian use during
we
the
10 years.
to
relative demand for
in
influenced
on
Along with further accentuation
of
changes which keep the oil
business fascinating. We are con-
to
Change
ing
Products
Oil
For
tires
bine to
turbines.
by
ever
many
line
engines are
deadly effects of radiation will
with only a moder¬
delay and may actually prevent
swing
during the
the
successful
development
of
summer
months.
The
current atomic
engines
in automobiles,
gasoline demand pattern is a trib¬
airplanes and locomotives for ci¬
ute to the better highways, better
vilian use. Those vehicles are all
automobiles and better gasolines
subject to weight limitations and
of today.
Just a few years ago to
being wrecked by collisions.
the summer bulge in gasoline-de¬
The radiation shielding problem
mand offset the summer sag in
presented by moving objects is far
heating oil demand, so that the more difficult than that involved
combined consumption of all pe¬
in
shielding a stationary power
troleum products remained prac¬
plant.
tically unaffected by the chang¬
In
addition
to
atomic
power,
ing seasons.
As a result of in¬ there are a number of other ener¬
creased winter demand for heat¬
gy sources that could eventually
ing oils and the more nearly con¬
compete with or even supplant
stant
gasoline demand, there is the
products derived from today's
now a seasonal dip of about
10%.
petroleum resources. Among these
in the demand for all products in
prospective
competitors, so my
spring and summer, as compared scientific advisors
t^fS^ne, are
with fall and winter. The failure
oil-shale, coal and solar energy.
of some refiners to recognize this
When and whether one or more
counterpart.
gaso¬
piston-driven
substantially replaced
seasonal
ate
than
aviation
thereafter,
more
or
volume
nation's
the
out the year,
many
fuel
more
propeller-driven
The
is likely
gas
example;
an
and
goods. The de¬
nation's
war
and
unabated
As
years.
nat¬
production
war
of
machines
and
used directly, or in¬
was
this
comparable
13 V4
demand
submarine has not diminished the
importance of the petroleum in¬
dustry to national defense. During
sumption
keep
To
day.
perspective,
in
was
10 years
million
20
ingly
out of line.
seem
each
barrels
1954
order of
undoubtedly continue. Lately,
consumption of gasoline has re¬
mained almost constant through¬
65%
supply
energy
is
consumption
the
natural gas fur¬
Petroleum and
States.
in
era,
decade
a
until
free
total
a
changing pattern of seasonal de¬
mand for individual products will
to
million people.
nish
oil
hence
at
two
employment
vides
and pro¬
product
national
gross
world
figure
uranium.
The
looking
are
we
new
a
being dispensed
The
oil
business
is
becom¬
receives
the
the
a
relatively small portion
consumer's
gas
bill, while
receives
distributor
a
rela¬
tively large portion. In New York,
for
example,
sumer
a
residential
con¬
$2.08 per mcf—the
receives only 8C in the
pays
producer
while the distributor re¬
$1.77, with the long line
transporter getting the remaining
230. On the over-all average, the
field,
producer will receive about 10%
of the price paid for the gas by
the
Under the circum¬
consumer.
stances, it's rather difficult to see
any
necessity for regulation when
competition has succeeded so well.
The
public,
until
never
been
exposed
about
the
recently,
to
the
has
facts
and, un¬
fortunately, the producer has been
gas
the whipping
Let
me
say
business
boy.
just one more thing
Number 5448
Volume 182
...
The Commercial and Financial Chronicle
about the gas
problem-you know
interested in it. I
think yen will agree with me that
competition
ordinarily produces
Jo supply the things propnesy
needed funds. I
believe
these
rndabtba?anregu?ationy ™k^
N°W GI!ck &C°' InC"
I
:
terribly
am
more and more
(291)
John H. Kaplan Admits
/
r
_
,
ver
Street, New York City, mem-
diminisning sup¬
plies will be the inevitable result.
Reserves can't be turned on or off
with
lated
Baruch Brothers &
Co., Inc.
admit
44
City.'an- f
nounces the opening of a Canadian
Boulevard. He was preCarlyn Rin§ DePartment with direct private viously with Francis I. du Pont
r>•
j*
„
•
+
*
& Co.
wire to Canada.
;
and
valve but must be
a
will
With T R Peirsol
i
vviin 1. l\. reirsoi
(Special to the financial chronicle)
BEVERLY HILLS, Cal.—Charles
uniuuimw#, nuc
Louis J. Nettune, Vice-President,
' bers of the New York Stock Ex- Wall Street, New York
E. A. Glick Securities Corpora- change, on Aug. 1
tion, 99 Wall Street, New York
utpt
field price of gas continues to be City, has changed the firm name JosePh R- Lasser and
regulated. It will discourage ex- to Glick & Co., Inc.
to partnership.
produce a scarcity.
That is exactly what would happen if the
ploraticn,
Baruch Bros. Wire
__
J°nn H. Kaplan & Co., 60 Bea-
Oil in Our Future.
PAST AND PRESENT
accumu¬
through tee continuing
ploratory efforts of
ex¬
lot of peo¬
a
ple who are willing to risk their
time
and
are
money
of
sure
which
in
market
long
so
free
a
they
as
competitive
sell
to
their
product.
control of the
Federal
the
sense—and
there
for
It's
it.
be
is
no
price of
not make
precedent
v/rong—but
all
if
it
right it certainly would also
were
'
does
field
iii
gas
fix the price of oil,
frequently
produced
from tve same well, ard it would
right
which
to
is
-
right to fix the price of coal
seem
fuel.
It then
since the na¬
energy resources would be
regulated, to proceed to regulate
the price of other commodities
such as grain, metals and many
competitive
a
as
might
right,
seen
tion's
.
have
which
others
been
always
competitively produced an J mar¬
keted.
The sad thing about This
step, if
lot
a
don't back up. is that
steps will seem
we
other
cf
can't
be
this
if
and
"logical,"
quite
one
prevented^ it won't be
easkr to prevent later
any
ones.
investors,
working together, can do much
to help in such a situation. As in
nearly all other major problems
facing cur nation, the answer to
this is adequate public informa¬
and
Management
the
business
oil
tion.
VVe
in
doing
cur
best to see that Mr. and
are
Mrs. America find out that it isn't
the
just
who
are
natural gas producers
going to be hurt by Fed¬
eral control—it is their future gas
supply that is at stake.
Conclusion
I
with
discuss
to
undertaken
have
bankers and inves¬
tors, seme facets of the petroleum
industry in whic.i I think you are
especially interested.
as
you
For
have
been
essential
to
of life and in some way
actually
enjoy its benefits
every four of the day.
Looking
back ever the years, the petro¬
our
way
we
leum
industry has efficiently pro¬
vided quality pro. ucts at reason¬
able prices in quantities to satisfy
a growing demand.
In the future,
more—net less—oil and gas will
be
needed, and I am confident it
will
provided. I know of no
better way to judge t.e future of
the petroleum industry than
to
examine its past. Intelligent, pro¬
gressive and public-spirited man¬
agement has given character to
the oil industry, and its integrity
is
a
be
point of pride with me.
The
industry can ani will continue to
provide energy fuels and related
products
'
America and to the
to
free wcrld.
This
proper
is
possible only under the
political and economic cli¬
has
where
climate
mate—a
us
Leading Products of
P. LORILLARD COMPANY
long time oil and its de¬
a
rivatives
of
opportunity to reap a
an
with
commensurate
reward
eacn
Sixteenth-century sailormen were realists. They smoked
tobacco because they
liked it. And they, laughed at the
elegant dandies of Lon-
antics of tobacco faddists—the
under the
watchful eye of "tobacco tutors" in order to keep abreast
of changing fashions in the "art of smoking."
polished their smoking
smoking
The
for
the
protection of the liberty, lives and
of its citizens. No one
enlightened manage¬
and an informed citizensnip
property
ment
will
that
problems
overcome
as
more
This
popular than
ever.
that
and
well
of
will
new
require
capital.
only
.
.
one reason
as
profitably,
reserves
long
we
are
as
can
two centuries of
BEECH-NUT
Smoking Tobaccos
BAGPIPE
BRIGGS
HAVANA BLOSSOM
UNION
LEADER
FRIENDS
INDIA HOUSE
FILTER KINGS
'mertcab
large
operate
/
Lorillard leadership in smoking pleasure.
I know
count on you
Chewing Tobaccos
.
they
developed
we
/ if
BETWEEN THE ACTS
for this popularity, for the con¬
long as our industry is
managed — as long as the
—and
,
y-f
filtration field.
as
necessary
King Size
And KENT, the cigarette with the
a leader in the high
industry will continue its
amounts
•
MURAD
HELMAR
amazing MICRONITE filter, continues as
arise.
growth
EMBASSY
AMERICA'S OLDEST TOBACCO MERCHANTS
•
ESTABLISHED 1760
„
VAN BIBBER
smoking pleasure has brought us new friends every year.
OLD GOLDS—regular, king size and filter kings—are today
tinuing loyalty of Lorillard customers to every Lorillard
product
and for the confidence of Lorillard stock¬
holders in the future of their company. It's the result of
doubts
Regular and King Size
making of fine tobacco products has been our business
years, and our single-minded devotion to
There's
to
•
the
initiative, imagination and
expended.' In
short,
a
free-enterprise ciimate in which
devoted
KENT
HEADLINE
nearly 200
capital
is
MURIEL
Regular, King Size
and Filter Kings
was a
energy,
Government
•
manners
pleasure, pure and simple, to sailormen, and they shared their enjoyment with all they
met in distant ports. They were tobacco's first ambas¬
sadors, winning friends the same way P. Lorillard Com¬
pany has ever since it was founded in 1760—through
the good fellowship and restful relaxation that only
smoking pleasure can provide.
For
j
Cigarettes
OLD GOLD
dontown who
27
iis/arel/rd
The Commercial and Financial Chronicle
28
Thursday, July 21, 1955
...
(292)
Continued
jrorn
9
page
Halsey, Stuart Group
Offer
Co. Inc. and
associates
yesterday
(July 20)
offered $3,600,000 of Chesapeake
and
Ohio
Railway
3%
serial
Halsey,
This
inclusive.
1970,
1, 1956 to
is the first
Aug.
annually
installment
of
issue
an
not
ex¬
ceeding $8,400,000.
certificates
The
offered
are
at
prices scaled to yield from 2.70%
to 3.10%, according to
maturity.
the
of
Issuance
is
certificates
subject to the authorization of the
Commission.
Interstate Commerce
The
entire issue of $8,400,000 of
certificates
is
to
secured
be
by
the following new equipment esti¬
to cost $10,537,876: 938 50-
mated
box
ton
R.
with
W.
the
Pressprich
New
&
Co.
Grayson Branch
the
opening of a
office at 250 Fulton Avenue,
new
"with
I.
Franklyn
Steinberg
as
This is the firm's first
manager.
not
the funds which have
certificates.
tax
offering did
latter
because of
into the recently offered
gone
rates for the shortest maturities
The longer maturities are still beng led by
Accordingly,
/continue to harden.
price developments are looked for
the 3s of 1995, but no important
the immediate future.
in these issues in
branch ofice in Long Island.
Newly associated in the new of¬
as
registered representatives
are: Martin F. Crowe, Thomas K.
fice
Berham and Fredric C. Hamburg.
The Treasury announcement
that the recent financing was a
what the financial community had been pre¬
Subscriptions to the eight-month 1%% tax anticipation
certificates amounted to more than $10.6 billion which resulted
in allotments of 19% above $100,000. The Treasury offering of tax
certificates was limited to $2 billion. The long-term new money
bore out
success,
dicting.
carried out through the reopening of the 3% due
was
15, 1995, and the subscriptions to this bond was reported at
Feb.
$1,720,000,000, with the Treasury setting the limit at $750,000,000.
Because of the preferential treatment which was given to
savings-type investors their allotments were 65% in excess of
$25,000, whereas all others were given only 30% of the bonds
which they were interested in buying.
It was reported that the
r;on-deposit investors had put in orders for about $747 millions.
The instalment method of payment for the 3% bond will give
the subscribers to this issue plenty of time to take up commit¬
ments. Even though it is indicated that there was some "padding"
of subscriptions, this was not as heavy as has been the case in
The
previous offerings which have been made by the Treasury.
reaction
Modern Inv. Corp. Opens
Modern
has
been
East
50
Investors
formed
Corporation
City,
to
business.
offices
with
42nd
Street,
engage
in
at
New York
a
securities
of
market
the
with
the
to
in
line
result
in
quotations being at
received
bonds than they expected, while
more
those that did not get as many of
were
reopened 3s.
Weekly Firm Changes
lias announced the following firm
changes:
Co.
&
July
will
be
dis¬
of
Stanley
&
Co.,
previously reported, will not be¬
these bonds
'
The Treasury
only
b
•
financing
carried in
was
minimum of disturbance
a
concerned, because the
was
as
they
as
-l-uJjs.
......
ury
when it
provide its stockholders with
printed annual reports. Quite of¬
ten, these reports are supported
with
voluminous
supplementary
information.
Far from providing
only the
tions,
comes
to raising
and there are
pretty well pre¬
was
The element of surprise
holders
are
ENCINO,
new money or
opened
in the
branch of¬
a
existing
fice at 5010 Ames toy Avenue un¬
the
direction
Gordon
of
B.
annual
the
for
match
a
suspense
reports of the foremost
recognition of the fi¬
progressiveness of overthe-counter
corporations is
af¬
forded
by
the
awards
which
porations
cellence
The
change in that
their
or
taken off
were
to
keep
the
markets
money
pressure
under
the
same
being lifted
were
entirely.
annual
Pension
Buying of Reopened 3s
fiscal information
vide
of the
STATE, MUNICIPAL
ting
they made under the partial payment plan, are likely
into the 3s of 1995 which has
The intermediate-term Treasury issues
fensive
PUBLIC REVENUE
from the sale of
come
stock.
common
and
Certain
important buyers of this bond.
private pension funds, according to advices, have been put¬
money
bit
a
more
have been
on
the de¬
than the rest of the list because there has been
selling of these obligations, either to move into the shorter matur¬
SECURITIES
the most distant
or
bonds which
are
for
that
were
ones.
known
as
Also it is reported that some
the "tap issues" at one
1995.
in
time, and still
Savings banks and certain commercial banks*
with savings deposits, which have
crease
of the
matter, have been let out with the proceeds going
into the 3s of
been experiencing a sharp
in¬
deposits, have also been buyers of reopened
these
3s.
they pro¬
cation.
In
addition,
unlisted
29
received
runner
The
Treasury's
certificates
Refunding Offer
refunding
offer
holders
to
maturing August 15, of either
a
2%
certificate coming due June 22, 1956, or the 2%
Aubrey G. Lanston
15,
1956, which will be reissued
existing
& Co.
ment
money
was
a
market" conditions.
bit
of
a
INCORPORATED
Banks,
IS BROAD ST.,
NEW YORK I
BOSTON 9
ST 2-9WQ
HA 4-6463
owners
to exchange
of
the
45 Milk St.
CHICAGO 4
^
position
instead
,
largest
of
lVs%
notes due August
line with
The timing of the announce¬
however.
the
TJhe Federal Reserve
maturing
lVsS,
will
be
in
a
-
WHiteh.ll 3-1200
331 So. La Sail. St,
the
surprise,
the
of
tax anticipation
tax
for
the 2%
certificates
notes, with
which
might
the optional offer,
have
complicated
was
the
the
latter obligation.
August
15
Corporations
certificates
for
the
tax
are
expected to exchange
anticipation
certificates.
that over-the-counter
ing
with
rations
million
$5
and
that
than
than
the
of
most
corpo¬
more
more
"toe
stockholders
mark
of
assets
cor*
propos¬
500
mark"
them
(a
al¬
are
ready toeing quite carefully) this
legislation would have two unde¬
sirable
effects.
First,
the
arbitrarily and without good
bill
rea¬
penalizes those unlisted
son
cessful
which
enough
and
to
the
above
sets
have
shareholders
raise
$5
attract
to
suc¬
their
million
as¬
mark
than
more
their
to
cor¬
been
500
rolls.
Sec¬
ondly, this Bill allows a company
that has not pushed its assets or
its stockholders up to this mark to
free"
"scot
go
lation.
Yet
be far
more
regards
as
regu¬
stockholders
its
may
in need of protection
than the stockholders of corpora¬
which would be regulated
tions
by this BilL
I
.
-
that
think
will
most
ob¬
other
with me that
the majority of abuses in the un¬
listed market occur in companies
with LESS THAN $5 million in
servers
agree
and,
assets,
often,
500 stockholders.
THAN
LESS
Most
the
opinion that the vast majority of
unlisted
companies
when
they
their
best.
companies
judged third
reports
In all
categories, these over-
the-counter corporations competed
with the largest listed corporations
Bill
the
reach
in the
nation.
As regards
the matter of
solicitation, it is
proxy
firm opinion
my
the
information provided by
over-the-counter
corporations is
ordinarily just
provided
complete
as
by most listed
that
as
Co.
and
Montgomery
certainly
Ward
indicate
&
the
that
present proxy regulations regard¬
ing
listed
corporations
from
perfect
need
of
and
in
are
definite
complete overhaul.
to
see
the
unlisted
conform
to
virtue
It is
of
or¬
corporations
to
that
standard
a
far
are
is
admittedly inadequate and of lim¬
2054
S.
that
so
date
listed
order them to do.
as
financial
a
readers
our
this
on
testimony
the type of un¬
that would be
corporation
products
wellproviding
as a
services;
or
without
record;
its
fis¬
fairly
stock
priced
by today's market stand¬
ards; and thoroughly alive to the
necessity of complete disclosure
fiscai information to its stock¬
of
holders.
frankly, what is
the
purpose
of placing another
chain of Government regulation
around the already burdened cor¬
Now,
necks
porate
face
of
the
firms?
head-on,
If
these
facts
the
in
we
nothing whatsoever to "pro¬
virtually
this
periodic
about
the
providing
firm.
careful
most
I
Since
here
am
an
my
duty
believe
short of
people
that
common
or
it
is
sense
companies
a
that I
did
point
not
market—as
most
fertile
Let
my
me
before I
say,
topic,
next
and
reckless
pass on
dangerous
dollars
or
less than
these
because
its
$5 million.
types
of
assets
securities
who underwrite these stocks very
a real service
furthering the dynamic growth,
new enterprises.
A
Penalty
Progress
on
Proponents of Bill S. 2054 have
wide
As
the
a
little
listed
its
the
market
for
past decade, I am the first to
that
the
market
shortcomings.
bill
aimed
before
the
that
the
of
securities
student of the workings of
over-the-counter
use
fact
to
listed
phrase
referring
securities
regulations
and
un¬
generally
are
(though not completely) free from
regulations. To me the term
such
of the listed
the
on
are
frequently perform
SEC
Direction
are
Investors in
the very frontier of venture capi¬
tal
and
the
investment
dealers
do.
in Wrong
con¬
security just because it
is selling for a few cents or a few
they are already doing volun¬
tarily. Yet this is exactly what
Bill S. 2054 in essence proposes to
Aimed
to
to
be
demn any
"double
Bill
fur¬
that it would
the
do what
for
ther study by the committee.
follow
cer¬
out
regard this particular field
so-called
"penny
stock'"
—the
to
to compel
to
testify
entirely different bill.
remiss in
if I
com¬
I feel
consid¬
Still, I feel I would be
•made
provide.
is
de¬
one
"double standard" when
to
in¬
It
to
their stockholders the information
them
us
financial
the
which this legislation would com¬
pel
to
eration of the committee.
are
voluntarily
write
of situation which
type
serves
all
the unlisted companies
already
compa¬
purchased stock
they are unable
company,
formation
of
In
a
which,
Almost
these
subscribers
obtain
to
in
investors.
in
security.
having
because,
does
cases,
position
receive
information,
request
exception,
Our
sets.
immediately realize that this bill
tect"
I
would
nies have less than $5 million as¬
cally sound; often boasting of long
dividend
In my
letters
that
or
Bill
editor
flow of
constant
doing
already
are
Fulbright
suggest
Compulsion
pictures
under
bill, it would be pre¬
sumptuous and illogical for me to
Voluntary Cooperation Better
to
would
are
they
the
what
against
Than
which
regulation
sufficiently es¬
tablished and sufficiently mature
protection to investors.
A quick review of the
to
in
concur
stature
them
entitle
corpora¬
tions.
dealers
competent
had
admit
monetary policy at the time of maturity if the only alternative
In
awards and 20 unlisted
mittee
of August 1, was in
as
up
-
helping to
as
investment
tain that all members of the
Terms of New
the
awarded "Oscars of Industry" for
having the very finest annual re¬
ports in their industrial classifi¬
we
ities
for
1954,
15
over-the-counter companies were
companies
far
as
rect these difficulties.
In
stockholders.
useful
positions in the recently offered 3s, and in spite of the commit¬
to continue to be the most
ex¬
reports.
but
regulated by Bill S. 2054
funds, according to reports, have been rounding out
ments which
cor¬
of
established company,
Good
to
for the
year
their
attractiveness
solid
modification
some
makes
these awards is
done
by a distinguished, inde¬
pendent group of experts who
judge the reports not only for
dering
there is
each
of
judging
refunding maturities,
any
World"
"Financial
rection
porations
National
Under such conditions, the Treas¬
they would have to if the
as
Carey.
U.S. TREASURY
most
listed corporations.
not, and will not be too much in¬
was
of events.
course
not have
did
ury
der
provide
elaborate
difficult
The money markets are still under
terest in Government obligations until
Calif.—Lester, Ryons
have
Co.
over-the-counter cor¬
with
and
ness
ited
•&.
opera¬
their
stock¬
reports that
models of financial complete¬
porations
tricks" of the Treas¬
indications yet of
no
Accordingly, there
score.
Ryons Branch
facts of its
bare
many
road
orderly way with
an
market
money
not in evidence this time.
pressure
Lester
Regulate Unlisted Companies
The recent proxy battles
involving New York Central Rail¬
far as the Government market
which has always been a part of the "bag of
was
effective.
come
not
that
purchases being made of the recently
pared for this operation ahead of time.
3L
Dissolution
the other hand,
on
Money Market Pressure to Continue
The New York Stock Exchange
Halladay
small premium above the offering
a
price of 100. There has been some selling of the 3s by those that
wanted and this resulted in
solved
reopening of the 3s of 1995 was
expectations, with enough interest around to
about
there
New York Stock Exchange
To
nancial
financing
N. Y. — A. J.
Investment
Securities
Jiave announced
-
attract as much saving-type
money as some had thought would be the case.
The demand for near-term issues is still sizable in spite of
the somewhat decreased interest which has been in evidence
though the
Co.;
&
HEMPSTEAD,
Grayson
digesting the Treasury financing,
which was taken very much in stride by the financial community.
There is no let-up in the pressure on the money market and with
the new money raising operation out of the way, it is believed the
monetary authorities will keep interest rates on the firm side.
The reception which the 1%% tax certificates and the 3% bond
received was favorable
under the prevailing conditions, even
The Government market is
The Statistical Record
Pol¬
Inc.; Gregory & Sons;
McMaster Hutchinson
No Sound Grounds fozFulbright BUI
offering
Freeman & Company; Wm. E.
lock & Co.,
Governments '
on
By JOHN T. CHIPPENDALE, JR.
with D-F loaders.
cars
Associated
are:
Reporter
&
Stuart
equipment trust certificates, ma¬
turing
Our
Equip. Tr. Gifs.
tional,
standard"
loaded
word
is
the company
submits
itself
which
of
reports to
to
any
case
manage¬
voluntarily
listing
include
the
emo¬
In the
security the
ment of
ments
an
without
real substance in fact.
SEC.
require¬
submission
No
com¬
does have
Unfortunately,
committee
is
basically in the wrong di¬
pany
on
it
MUST have its stock listed
an
acts
exchange and if it does
with
the
full
so,
knowledge
Volume 182
Number 5448
that
submit
it
must
This
situation
ferent
make
unlisted
must,
of
and
do
can
to
market.
dealers
on
and
be
by
tract
a
penalty
a
to
the
that could
5738
has
North
been
of
Central
Expressway,
changed to Central
Se¬
curities Co.
Now
NEWARK, N. J.
NOTHING
standard"
when
of
name
regula¬
the
"double
a
of Julius A.
are
parable.
No
not-basically
objects
one
man¬
cumulative
out par
at
Power
Co.
$4.16
preferred stock with¬
The stock is priced
value.
$101
share
per
dividends
from
accrued
and
July
to
1955
yield approximately 4.12%.
from
the
stock
1,
the
of
sale
the
from
and
company's concurrent offering to
The firm
—
group
Rippel, Inc., 744
holders
of
its
stock
common
of
capital expenditures consisting of
property additions and improve¬
stock
mon
for
com¬
subscription
at
$45.25 per share, will be used for
For
the
12
June
ments.
pany's
"total
The company's capital expendi¬
tures
for
1955
will
amount
to
$178,503,000. Net income be¬
fore dividends on preferred stock
about
was
$78,800,000 following simi¬
$62,800,000 in
30, 1955 the com¬
operating revenues
were
$27,657,000.
lar expenditures of
1954.
The
Now United Western Sees.
new
preferred stock is
re¬
deemable at $105.25 per share
on
prior to July 1, 1960, at $104.25
per
share thereafter but on or
prior to July 1, 1965 and there¬
after at $103.25 per share.
OAKLAND, Calif.
name
or
Consumers
Power
Company
operate entirely within the State
Grand
served
Rapids,
include
Flint,
Saginaw,
Lansing, Pontiac, Kalamazoo, Bay
City,
Jackson, Battle
Creek
and
Joins
Webber-Simpson
(Special to The Financial Chronicle)
CHICAGO, 111.—John A. Block
joined the staff of Webber-
has
Simpson
LaSalle
& Company, 208 South.
Street, members of the
Midwest
Block
Stock
Exchange.
den & Co. and Taylor & Co.
5
'
because
industrial company is not reg»
ulated as closely as a public util-
an
■
_*
not
!
type of
apply to listed
and unlisted companies when the
■
ity, because the situations
comparable.
are
same
should
reasoning
"double standard"' Is offered
term
as
The
for
reason
a
regulation.
*
*
"Insider" Trading Rules;
As to the "insider"
which
in
Bill
regard
S.2054
comment will
my
trading rules
would
unlisted
to
enforce
securities,
be quite brief;
It is my personal opinion that this
type
of
trading
is
in
portant
unlisted
the
Most investors in
listed
securities
not
im¬
very
market.
the type of
that would
un¬
come
under
regulations are
basically
long-term investors. Further, the
term
"long-term investor" applies
with
and
most
force
to
the
officers
directors of unlisted
tions.
corpora¬
By the very fact that their
whole lives and often their whole
fortunes
are
porations
bound up in the cor¬
they
members
hardly
work
of
for,
these
management
are
likely candidates for fast
furious short-term trading of
the type that the "insider"
regu¬
lations militate against.
and
The
70%
Margin
Requirement
In
regard
to
70%
margin
requirement
listed
form
stocks
to
the
to
listed
situations
again,
tion
that
in
itself,
be
restric¬
worthwhile
curity speculation.
of
for
reason
The
helping to put the brakes
that
the
credit in the stock market
on
may,
practice,
is
valid
no
requirement.
a
a
un¬
con¬
not comparable and
are
hence there is
such
on
them
securities
reasoning,
my
placing of
make
the
even
higher
strongest
margins
admit that it is
nation,
Yet I
a
on
am
se¬
quickly
when credit
estate, durables and simi¬
lar items
without
can
be obtained
virtually
restriction.
Encouraging Venture Capital
conclusion
I
would
like
...
worth
the nation than the
more to
gold strikes of the early West.
ter market is the
frontier
for
termed
"venture
truly
may
capital."
be
The
giant listed corporations of today
raise
vast
amounts
of
sixth largest
our
industry
...
a
12 billion dollar
giant already supplying one quarter of America's vast
energy
last and largest
what
Now
requirements
...
22 million customers.
to
point out that the over-the-coun¬
can
Natural gas
fabulous
particularly
for real
In
rich I
it
sure
of discrimi¬
case
strikes
in
advocate
will
America
money
Tennessee Gas
plays
development of this
its
major role in the dramatic
a
new
national asset... has increased
capacity eight fold in the last ten
double in the next ten. Its 8000-mile
years
...
will nearly
Long
...
pipeline system,
with
astonishing ease. Not so the
struggling small business. If the
entrepreneur of such a business
wants to raise
equity funds for
pansion,
must,
launch
he
an
offering
of
ex¬
in
the
over-
agreed that if the U. S. economy is
to
continue
to
grow
every
longest,
assures
the populous East
a
dependable, economical supply of the world's finest fuel.
Creating
new
wealth
.
..
better heat...
comfort,
more
ment
convenience, Tennessee Gas pipes progress!
en¬
providing this encourage¬
is
to
businessmen
the
thought
sets
and
a
allow
to
that
their
certain
mediately
these
finance
when
small
free
their
TENNESSEE
GAS
of
TRANSMISSION
as¬
C O JVE PATTY
stockholders reach
figure they will be im¬
subject
to
HOUSTON,
additional
This
TEXAS
I
Government regulation.
placing of
a
penalty on growth is *
AMERICA'S
LEADING
TRANSPORTER
OF
for booking
new
customers
natural
heating their homes.
couragement must be given to new
enterprises. One of the soundest
ways of
preferred
million
dependable
America's
necessity,
the-counter market. It is
generally
a
per year are turning to more
NATURAL
GAS
gas
for
Natural
fuel
for
is the superior
industry. Cleaner,
gas
hotter, precisely controlled,
economical
the year
Mr.
formerly with Crutten-
was
-
!
The firm
Inc., 1419 Broadway, has been
changed to United Western Se¬
curities, Inc.
of
Michigan, supplying electric
service in 1,480 communities, and
distributing and selling natural
gas in 282 communities. Principal
—
of First Western Securities,
—
se-
com-
months
ended
communities
373,689 shares of additional
Muskegon.
things being-
compared (listed and unlisted
curities)
Consumers
preferred
Rippel & Co.
.
speak
underwriting
Proceeds
beyond being a successful, Broad Street, has been changed to
growing
company.
Thus,
it
is
Rippel & Co.
%
. .i,
logically apparent that it is im¬
to
An
aged by Morgan Stanley & Co. is
placing on the market today (July
21) a new issue of 100,000 shares
tion
possible
$4.16 Preferred Stock
ultimately lead to regu¬
name
on
invite
to
en¬
DALLAS, Texas — The firm
of Lynch, Allen & Company,
at¬
Offers Consumers Pr.
by
discouraging
doing public financing
New Central Securities
regulation?
done
WHATSOEVER
con¬
growth
the
lation.
over-the-counter
has
company
Morgan Stanley Group
economy
them from
progress?
Unlike the company which volun¬
tarily lists its stock on an ex¬
change,
could
it
down
company
singled out for ad¬
Government
Is not this
slow
these corporations and the
tire
investors.
fair number of sharehold¬
a
importantly
ceivably
of
in
initiated
private
must it be
ditional
more
action
managed to grow and
ers
injustice to the un¬
so regulated —
investment
Why, simply because
has
trade
This
necessity,
carried
dif¬
over-the-
stock
an
29
(293)
corporation
nothing whatso¬
its
only
listed
A corporation,
company.
itself,
the
entirely
from that of the
counter
ever
is
not
certain
a
of rules and regulations.
group
in
to
The Commercial and Financial Chronicle
...
and
around.
dependable
Commercial and Financial Chronicle
The
Thursday, July 21, 1955
...
(294)
30
first pagq
pleting the socialist pattern.
The character of tne forces at
worK
should be clear as we ob¬
Symposium Concluded
given
the
which
size,
accumulate over
will
company
period of
a
and the company's liability
limited to the amount of
The agreements recog¬
nize that this fund is in fact an¬
other
form
of
wages
and that
there are realistic limits beyond
which it cannot be increased with¬
years,
will
be
the fund.
impairing the company's op¬
erating efficiency and thus its
competitive position in the mar¬
out
the
Moreover
ket.
tingent, in the
fund
is
con¬
that it will
sense
only in the event
that workers are laid off, a fact
be drawn
which
upon
will
management
give
a
further incentive to stabilize pro¬
duction
and
employment.
other,
are
There
perhaps
better,
and
by
which unemployment
compensation could be improved
and there is no doubt that the pat¬
ways
tern
set
by the Ford and General
Motors
sponsibility;
in Detroit
as
not
was
one
what
but
so
to
add
and
re¬
happened
burden
management's
ary
will
settlements
'revolution¬
have been led to
may
Through technologi¬
isted before.
panded our Gross National Prod¬
uct three-fold since 1940 and have
than
real
Annual
Guaranteed
Wage—that is, the concept that
as
lag during which some
temporarily displaced
result of improved efficien¬
a
cies
are
presents
and
problem
with
serious
a
should approach
one we
solve, but the
Annual Wage" — in
determination to
a
"Guaranteed
the literal sense—will not lead to
solution.
sound
a
of
will, I
It
am
lead only to a stultification
system which will prove
sure,
our
The
this problem
lies, I believe, in providing ade¬
quate unemployment compensa¬
to
detrimental
everyone.
approach
proper
to
tion for the bona fide
temporarily
individual who is will¬
displaced
ing to work and by "adequate" I
mean
a
substantial portion of a
worker's take-home pay for a rea¬
definite
sonable
This
tors
period
in
is
approach
time.
of
fact the
es¬
of the Ford and General Mo¬
sence
agreements.
Editor
"Partners
of
imposes
proposition
measureless
almost
an
liability
the
upon
em¬
To
tive
GAW
of energy, initia¬
enterprise.
For
the
and
worker
job
it
will
consumer
for. The
dimin¬
go
of that will
result
be
a
U. S. wages could be
guaranteed
met.
Socialist America
a
that
no
not supported by pro¬
and that productivity
anything
ductivity
employer would
improve the
efficiency of his operation and the
it
no
the
Raise
price
of
pair
a
of
tne
GAW compels it, and the
a
look
will
shoes
pair,
no
where
old ball game! And
along with it, the American high
standard of living that today we
are
so
proud of. For as produc¬
tivity collapses, so does American
business and industry — taking
your
goes
build his own,
barrels
employee
through
takes
of
without
drawing from a barrel,
stopping to consider that
have
fidence in ourselves. In the result¬
ing crash, all our present security
would vanish in thin air.
bottoms
that
and
it
Effect
Obligations
On
furniture and elec¬
appliances—yes, and many
insurance policy set up to as¬
Homes, cars,
trical
an
developing his
maintain its reservoir. It shoulders
both economic and moral anr) th^y
i
aside the basic fact that work can
retirement
would almost certainly stultify the
talents
be
these and many other
wonderful
husbanding
incentive
no
adverse
to
work.
consequences
are
flexibility and dynam¬
our
present high living standard
was
as
direct
a
d i
i d ual
v
result
of
own
in¬
stead, it looks
resources;
to
the
ployer to sup¬
ply it and bear
Large-scale production of quality
though the creation of such ques¬
tionable
worker
"security"
can
products at prices within reach of
the
majority was achieved
costs, and
this fre¬
involved the temporary
great
quently
reduction of payrolls and the tem¬
displacement
porary
workers.
of
cept
should
skill
It
is
also
a
society
our
be
some
moral
that
pre¬
rewards
proportionate
devotion
and
of
with
to
the
which
a
man
applies himself to his work.
The
employee
incentive
to
have
must
Work
real
this
and
a
will
be lacking if the reward for idle¬
is
ness
the
-
honest labor.
same
as
for
pay
A breakdown of the
incentive to work would, I think,
produce
tion
in
serious mora) deteriora¬
a
national life.
our
Our economy has
Maurice R. h ranks
est
even
line
be
to
be
of
robbed.
merchandise
produced
can't
that
because of
is
Paul
For
soon
ex¬
pressive and reassuring stability in
cessive
the pastl5 years
production costs. Or he is
robbed
of money
through increased
understanding and restraint
part
of
both
labor
and
the
on
manage¬
pay
when he has to
the costs of his GAW in the
form of
ment, through the intelligent ap¬
higher prices—the reflec¬
tion of Peter's having to pass on
plication
to
of
indirect
monetary
the
consumer
such
costs
as
he
controls and
through the increased
and
willingness
of
to
cial position to absorb. Or, in the
spend his surplus income—a will¬
analysis,
Paul may be robbed of his job,
his very livelihood, when Peter
prices himself out of the market
and is compelled to shut up shop.
In general thus, the effect of
"guaranteeing" wages is to level
both the worker and his employer
the
consumer
ingness derived, in turn, from his
confidence in
We
economy.
the
seek
the
must
of
means
stability, but
ourselves
stability of the
we
continue
to
improving this
must also remind
that
temporary
and
small-scale disruptions are the ir¬
reducible
price a competitive so¬
ciety must pay for improvements
in
productivity; and it is on these
improvements
that
our
living
standard
not
souafely rests. We should
fear
these
periodic
disloca¬
performed
and
for
clearly that
our
new
ute, after only
history
indicates
methods contrib¬
a
short
time
lag,
conspicuous
indus¬
tries—that in reality it is a farflung network of interdependent
enterprises, large and
medium-
very
his
business
last
and
are
very
in
no
sad
and rob them of the very
they presently
possess
of their combined
support
them
in
finan¬
security
as a
result
productivity. To
their
resulting
destitution there is, of course,
the
offers
them
the
for
the
least.
of
most
And
market all
on
the
that
best
same
industry must for-
compete for sales.
Stripped
of
all
highfalutin
theory, this means that, sa1^ —
ever
goods and services bought and paid
for—are the only real guarantee
there
ever
earth
on
can
of
be in any economy
anything
that
even
sure
a
pay
his
Obligations easily un¬
grasp.
in
dertaken
of
ruptcy
To
assume
that
buy luxuries
the
or
customer
even
neces¬
after
business
one
These
the conditions
are
ing
to—conditions, discourag¬
us
investment, condi¬
which no bank can be
capita)
to
in
tions
persuaded
loan
to
money
to
business already hopelessly on
a
the
the
ourselves
that
con¬
neatly lined
up as
they await their plied
guaranteed
country be our sincere
our
practical ambition — as it
be—certainly nothing in
and
should
the
be pur¬
socialist direction.
of security can
way
sued in any
Surest Guarantee
Our
salaries
and
productive work,
joining forces as true partners
production to turn out the most
the best for the least. It lies
considering ourselves first of
of
antee
wages,
in
profits—lies
in
in
of
in
all'
the
of
to
want
then
amount
Annual
Dole
to
a
Guar¬
goods
consume.
for
work
day's
Socialism, the foolish
king of our lives, would sit on
his
shabby
throne
only
long
enough for the greedy tyrants of
upon
from
us.
be
earth
our
on
out
Communism to burst in
him and seize the scepter
his palsied hand. For there
back
we
have
our
enterprising nation
to step in and save us
sorry selves and put us
our
industrial -feet—as
no
stepped
in
money
to
and
save
poured
other
ourselves, to share and share alike
the wretched minimums allowed
the
wage
an
America
an
honest
honest day's
pay.
This is
our
system and it is one
When fully
that is tried and true.
applied, it has brought—and al¬
ways
will bring—good times to
every
segment cf our economic
society
the customer;
his
in
American
the em¬
the taxpayer
worker,
the
—
ployer, the investor,
and
in a word, the
various inter¬
locking capacities.
This is
our
system
and it is
opposite of the socialism
has brought ruin to every
the very
that
it has ever been
p^onomy
ignore these facts as
To
applied
proletariatby
Communism
enterprise and personal initiative
together
explore the future of our econ-i
we
and together we endeavor to
improve our way of life is to blind
ourselves to the basic FLAWS IN
omy
THE GAW.
,
The foregoing has
Note:
Editor's
from an editorial
of
issue
1955
June,
the
in
r>p^':cqtion
"pov+prvc "
National Labor-Manage¬
the
ment Foundation.
B.
HUDSON
HASTINGS
Emeritus of Economics,
Professor
'
Yale
•
: "•
University,
New Haven, Conn. r;
•
-
>
-
myself in virtually com^.
I find
agreement with the state¬
by Mr. Frank Rising
his artiHe "Guaranteed Annual
plete
ments made
in
Wage
Blue
—
:
,
.
Sky and Brass;
Tacks," and I
have
but
brief
two
c o
m-_
ments to make
this article.
on
I
think
Mr.
:
Rising might
have brought
out with
more
clarity
and;
emphasis the
that
fact
tion
G
u
the
adop-^,
general
of
the
aranteed
—
annual
—•
work, provided all of
contribute
first
and
pro¬
honest day's nav for an
pitch in as partners in
us
age
upon
as
must or
Out
of this
we
which is enterprise
—
an
honest day's
(GAD!).
of administration and
bureaucracy would then be fully
The
then
consumers,
as
ducers
a
government the people themselves
would be forced to go for what
anteed
>
inescapable fact is that our
truest security—our surest guar¬
The
last
sickle
and to remember with
philanthropists.
government—or rather, the gov¬
The fact is, if the establishment hopeless nostalgia the days when
ernment's herded
taxpayers, all of anything like a generally ap¬ the glittering maximums of free
are
class of
have
we'd
wherever it raises its hammer and
to kid
obviously has been in Soviet
Russia. If security for the working
of
necessity be
would
the
'eventually kill it—as
and
case
government hand¬
out, each bearing the inevitable
red
tag to indicate government
ownership or control. And to the
wherein
ica—is
because
it
been extracted
situation
peoples from the worst follies of
their socialism. We'd be left to
simply
to stabilize. Because
character of a dynamic
economy
makes it forever and
delicately responsive to the laws
of supply and demand.
To "sta¬
bilize" it is to deactivate it, stifle
power
very
the
resort
of business and industry would of
there
For
rocks.
they were
produced under union auspices in
the interest of some passionately
declared utopia—or even simply
because they were made in Amer¬
sities
its
in
the
our so¬
cial-minded planners are bound to
lead
we
as
to.
another.
from
will
espe¬
rapid def'ation, occasioned bv the
forced
default
through
bank¬
on
.
Consumer No Philanthropist
—
cannot be met under conditions of
would
mined by sales.
times
boom
times influenced by a
temporary GAW inflation—simply
in
cially
economy
it today.
Were it possible for the GAW
permanently to stabilize our econ¬
omy, as Mr. Reuther predicts and
may honestly believe it can, per¬
haps the general proposal would
have something. But it does not lie
—
for over an extended period
slip from
and
this production is deter¬
beneficiary
its
time would certainly
of
of world
even
for
personal as¬
sets
for
which
the
American
worker has obligated himself to
a wage.
Even
doles by government must be paid
far out of somebody's production,
remotely resembles
sumers
tions,
most
spell the end of true security for
the company that employs him. size and small.
The point lost in all GAW pipeSuch utterly erroneous emphasis
is thoroughly socialistic.
dreaming
is
that
the
people
by
all
these
many
Next, in the true Fabian style, employed
the scheme to guarantee produc¬ enterprises are consumers as well
tion wages gets the cart before the as producers and that, as a com¬
horse
and
are
falsely assumes that posite group, these people
purchasing power, in the form counted- upon to buy the goods
of wages, can be established be¬ and services they separately pro¬
fore it is created by and through duce. But as consumers they are
oroduction. It would spend money a hard-boiled lot, forever inter¬
before it is earned and, of course, ested solely in price and quality
reaches into another's pocket to and in no way interested in the
the
costs
of
do so. In a word, it would rob nature
responsible
Peter to pay Paul—without point¬ for high prices. As customers, thev
ing out that Paul stands next in always make for the market that
robbed
achieved im¬
and
important fact that our economy
comprises far more than its larg¬
steady and sometimes spectacular
improvements in the efficiency of
our
production and distribution.
by cutting
barrel
a
•
e m-
all costs,
fill
only by workers
creatively employed—not by man¬
agers, not by union or company
officials and certainly never by
government administrators.
It also turns up its nose at the
and
his
ism of American economy.
It is an economic fact that
achieved
n
to
strangling the
on
American
our
romps
growing child of a future
college education or a comioriaoie
work
of
process
employ¬
thinks only in
It
based
profit motive and killing the goose
.
.
,
Amencan-maae shoes because
creative
when
shrinks.
terms
guarantee
can
economy
curities"
know
i
them
the
employment of
everything drawn from so¬ with
cialism's bag of tricks, the GAW Americans like you and me, our
philosophy ignores the simple fact purchasing power and all our con¬
tion in which the
These
no
S. business, diminished that lays our golden eggs.. And
production and a rapidly worst of all, there could be no
diminishing likelihood that any return to the productive realities
are
bit and judge, if we can,
the effect of generally guaranteed
wages upon the whole American
picture
have
to
be
S.
U.
socializing effects of damage already cost-ridden U. S.
Millions — yes, bil¬
noted only as they productivity.
apply to business and industry per lions—of domestic man-hours of
wnl be lost to our
se—and as they would begin to piouucuon
apply to individual workers and economy, and if those man-hours
employers. Let's now expand the still must be paid for—well, there
GAW
ment
encourages
could
there
case
our
U.
ished
far the
So
the
"security"
worker
ican
net
matter
they come from. And ne
won't care a tinker's dam whether
the workers who produced them
him, through the proof of his own receive $3 an hour or $3 a week
accomplishment and the sweat of —or why. And because of his in¬
his own
brow, to subsidize the difference as to where he buys his
"have not."
Its the principle of shoes, his television set, his type¬
"soak the rich" brought all the writer, camera, sewing machine or
way down the line and deposited cigarette lighter, his desertion of
at shop level.
American-made goods will further
shrivels
incentive to
lives.
consumer
person
needing
elsewhere for a
could
be closer
to
socialist idiocy than this proposal
to penalize the "have" and compel
demands
but
production for profit enriched
our
or
mestic
cost of
Nothing
ployer and thus carries with it the
serious danger of creating a situa¬
no
ability
regular
his
work
and
order to collect his.
Toward
expense
and
In
Like
the
with,
begin
the
the
Magazine,"
preaches the doctrine of "security"
at
the prices of domestic
a point be^ona tne
up
commodities to
stay on
worker must
veteran
the
hours in
economy.
Chicago, 111.
indefi¬
period, whether or not he is
working—is quite different. That
case
The time
workers
an
nite
worker gets
before.
ever
employee should receive full pay
his employer for an
consideration,
while the senior
the least. Because, in
of a layoff, the junior worxer
leaves the job assured of full pay
checks while not at work, whereas
employed
gainfully
people
more
service. Under the
of
years
GAW, the whole thing is turned
upside
down
and
the' "junior
worker automatically gets more
some
as
MAURICE R. FRANKS
The
and
improvement (or "automation"
now call it) we have ex¬
cal
believe;
from
steadier jobs than ex¬
to more and
forces
willingness of the do¬
stepping tne penalties for
to pay—and if side
foreign-made goods of competitive yielding to the social planning of
serve them in general. If they are
Fabian phonies and dreamers of
not, then the GAW's betrayal of quality are offered on the Ameri¬
a
Soviet America, whose minds
unionism's
sacred
principal
of can market at far lower prices
are frozen
with the false notion
seniority offers us a closeup of the simply because they-are not over¬
tnat production is solely for use
burdened with fancy - production
levelling force in action. Seniority
and not for prolit and who today
is a system of individual employ? costs—then you can bet it will be
offer us a full schedule of "se¬
ment
security based on abiility the foreign-made goods the Amer¬
Guaranteed Annual Wage
temporarily
displaced
workers;
the supplemental payments will
be made from a fund of specified
thus com¬
turn to be levelled,
own
Continued from
Annual
<
Prof. H.
B. Hastings*
Wage
plan would not be in the
interest of labor as a
long run
whole.
It is
Volume 132
Number 5443
The Commercial and financial Chronicle
...
another
policy
example
of
the part
on
shortsighted
of
labor
ers
which, although it may give
temporary advantages to favored
of workers,
groups
benefits
porary
whole,
would
or
to
in
tem¬
even
labor
the
as
long
a
run
disastrous to them.
prove
ing local and state central bodies.
Admitting that the GAW
lead¬
made
to
(295)
*
7
work
in
agreed to raise wages 15 cents
hour effective at
be
can
limited
some
cents
an
sectors of
industry, even there, as
Rising predicts, "it will work
only unaer compulsion and con¬
than
Mr.
under
trols which will break the Ameri¬
wage
tradition
can
of
hope
confi-
and
to
the, auto
GAW.
progress." If forced upon industry
reflected in the comment:
example
generally, it
sad
the
cf
unsoundness
legalizing labor monopolies.
nopolistic
or
Mo¬
of
powers
individuals,
individuals, in any
of
groups
of
truth
The
is
thoroughly
un¬
this invariable
sooner
recognized
the
better
it
will be for all parties concerned.
I
convinced
am
that
it
is
not
Ofcfctoxiuent
In any
•'duSniifca''
teiized"
war," paralysis of
puwerfui
orde^
of
to
the
prevent
labor
by
bodies,
in
exoloitation
unscrupulous
em¬
ployers.
which
Subsidizing
what
the
of
idleness:
the
bystander,
since
he
does
for
him.
discredited
in
The
current
unions
fringe
of
the
wait
the
no
John
is
T.
Hoidsworth
let them fight it
concern
minute,
some
of
mine.
Mr.
look
development and
it
this
will
you
concern
But
Bystander;
at
of
GAW
that
see
in¬
yours,
deed
that your economic welfare
be vitally affected by it.
Elementary economics tells you
may
that
in
three
supplying human wants
primary
factors
are
in¬
volved:
land
(natural
resources),
and that each
labor, and capital,
of these must be
paid for its con¬
tribution—rent for land, wages for
labor and
salaries
for
manage¬
ment, and interest for the use of
capital. None of these will work
willingly
for long without be¬
or
ing
paid.
Mr.
ard
Paid
by
whom?
that
wherever
increasing complexity
production
possible
and
to
You,
(fbnsumer.
Mrs.
axiomatic
It
in
of
is
the
modern
distribution
it
is
along the costs
improvements,
taxes,
labor,
etc., the consumer has to foot the
pass
of
bill.
Ard,
take
about
don't
increased
make
the
it,
costs
to
mis¬
any
GAW
the
means
consumer,
if
adopted
widely
will
quicken the pace of inflation, un¬
and
til Mr.
Consumer, recognizing that
he is paying for something
he is
not
getting, balks at the high
prices, and another business re¬
cession, even a depression,
in.
sets
in the past the gen¬
eral pattern of labor union poli¬
has
■foll0'"''0^
t^af
r>f
the
GAW
two
big automobile
big
between
agreement
Ford and General
two
concerns.
Motors, and the
unions
26
$25
his
weeks,
(soon
to
be
plan
of
is
Sym-
this
reluctance
to
of
be
dominated
of
its
amount.
have
the
National
Independent «Union
Council, which claims six to seven
million
AFT,
members
rlajm
CIO five
of
It
(as
against
million
and
1, 1956.
suspended if
be
85%
workers
titled
26'
to
fall
below
would
before
would
weeks
the
under
ceiling
fund
trust
reach
qualified
of
all
be
en¬
authority quoted above
complete
edge
tract
been
adds
pitfalls
worker
the
the union, leaves
genuine incentive to
a
achieve
that
the
are
annual
have
to
be
tain
the
compensation
If
benefits
of
the
payment
benefits
of
plan.
to
Ford
employees
$42
its
to
maximum
$54
the
raised
from
ter
of
Bank
and
maximum
$30
observer
the
of New
need
income
the
levels
each
for
guarantee.
agencies
other's
As
one
of
in
living
also permit
learn
.
.
from
and
.
unnecessary lay-offs and
to
employers
Employers .have
stabilize
many
production
employment and try to do
so
within the limits of their resources
the
predictability
markets.
SUB
It
is
scheme
differences.
it
of
doubtful
would
appear
their
that
make
.
ilkely
.
.
that
the
The
the
contract
consumer
recent
(after
organized
solution
therefore
two
12-hour strike)
income.
the
out
to the buying habits of the
of employees
group
and industrial
involve
would
that
What adjustments
sion.
American
the
in
of
average
on
this
concern—and
majority—
vast
businesses.
small
of
the G.A.W. is
sense
un¬
that
at
the whole of any
but
then
it
actually
is
given labor
only possible
not
accomplished fact.
Approximately
190
American
an
It
one
be
must
operation
though
noted
than
less
the other
represent con¬
concerns
siderably
or
1%
of
all
American firms.
the
Perhaps,
to
aspect of
the
most
significant
the current U.A.W. de¬
incus-
is the
role it attaches to un¬
employment
compensation as
a
try
component of the G.A.W.
ing for 52
pay
In ask¬
checks each
from the automobile
year
producers the
union concedes that in
periods of
slack
production thousands of idle
be paid a substan¬
proportion of their guaran¬
weekly wage with unemploy¬
by the producer to meet the new
financial
obligations remains to
workers could
be
teed
In
a
ours,
free
democratic societv such
and in
an economv
based
as
on
competitive procedures, there
always
nual wage
be
similar
guaranteed
over
is but
conflicts.
a
an¬
see
ment
evil
of
the
situation,
as
I
it, is the apparent blatant dis¬
compensation.
For instance,
automobile
worker receives $75 weekly and
that he is entitled to $23 weekly
unemployment compensation for
assuming
26
that
in
state
pay
an
under
weeks
for
ress.
The
tial
part of the in¬
exorable march of time and prog¬
Apart from
the
GAW
plan
and
regard of the pressure group for
the understandable
guaranteed annual wage
workers
seems
compen¬
conceived and
was
as
now
gaged
which
he
which
the
he
law
lives,
works
of
the
the firm
would
then
only $49 weekly from its re¬
serve
fund
toward
G.A.W.
i
Many
commentators
on
the
few
a
executions—are taxed
their emploved work forces.
maximum
percentage
ments
to
tax
huge
Benefit
made
are
a
The
this
of
flows into
revenue
workers
re¬
pay¬
unemployed
the basis of the state's
on
unemplovment law and from this
fund.
reserve
While it is true that coverage of
the amount of money paid out in
benefits, and the periods of time
in
which
these
benefits
may be
inadequate, the
fact remains
that in
unemploy¬
ment compensation we have the
received
all
are
framework
anteed
for
year-round
guar¬
Furthermore, and
tremendously
important,,
unemployment payments are not
doles from the Federal Govern¬
wages.
ic
ment.
to
Rather,
benefits
the
unemployed
rived from
workers
paid
are
de¬
income
already earned
in the productive process. In short,
unemployment
something
seem,
compensation ; is
is due an unem¬
that
ployed worker
as a
right. It would
then, that if the present
employment
is
system
un¬
substan¬
tially expanded through increases
in
amounts
the
of
number
may
together with
the
received-
be
complete
coverage
force—we
labor
our
that
weeks
in
and
payments
of
compensation
have
an
approach to the G.A.W. that both
Big Business and Small Business
—
and
can
American
the
economy
—
provide.
Assuming that adeouate unem¬
basic
the
programs
question
"yes."
component
an
G.A.W.
out of every
a
affirmative reply
logic.
simple
from
for either
of
the answer to the above
must be an unqualified
Such
derives
becomes
compensation
ployment
Four
five Americans work
salary. Par¬
wage or a
ticipation in the ownership of cap¬
ital facilities through
restricted
is
Americans.
assured
to
It
high
stock shares
few
relatively
follows, then, that
wage
levels
mean
sustained demand for the products
of
American
demand,
in
industry.
Sustained
turn, stabilizes both
and the purchas-
the employment
'
by-passed
year¬
compensation in the achieve¬
all
of
mand upon the automobile
The
seen.
would
and realistic objection of manage¬
ment the function of unemploy¬
this
specified number of
average earnings
a
weeks
force
day
made
pro¬
reserve
the
G.A.W. program
a
of
are
for
expan¬
are
the
of full
contracted
and
funds
surance
balance
growth and
at
wages in periods both
work
problem,
of
re¬
involves
a
guarantee of full
yearly earning power to certain
designated employees or the as¬
income.
large forces in our economic
The conflict
spending.
of
throws
Nor
SUB
to his
respect
present
G.A.W.
fund maintained by the Fed¬
in
operations
it
employee from taking any chances
with
the
Government.
that these
groups
of
eral
tinction
wage
producer to relieve the
will
"Big-Steel"-CIO
a
the
amount
pushed higher and higher
ly by unions.
serve
the
by
tal
be
or
millions
causes
their
today.
present
would
apply to the G.A.W.,
management contends that the to¬
—
tive
marketing
caused
has been
of
ability
force
the
of
the
for
would be the bankruptcy and ex¬
our
The producer
on
protecting his
on
newness
any
will make any real contribution to
stability of
of
unem¬
of
type
conditions,
part
a
and
product,
problem
to avoid
to
his
"An
puts it:
errors
been
chances
take
The
to
economic
and
always
demand
high-level
of these G.A.W. plans in
incentives
incentives
caprice
—
ployment compensation plus pay¬
from private reserve funds
ments
is 2.7 of payrolls and the cumula¬
they
nature's
has
supplementary payments
in accordance with the number of
forcing
employ¬
both
be—increasingly
principle of
same
with
duction
annual wage has been with us for
by
to
As this
it
wage
Calif.
caused
business have been—and
continue
operates, employers en¬
in interstate commerce —
If, however,
ment,
ments by
as
derstood in the modified
Seasonal
the
by the
collective bargaining contract. In
recent
years,
however,
unions
it
uncertain
American business just cannot put
aside.
The
inevitable
resplt of
to
years.
Age
and
determined
sum
sation,
over
which they have
responsible control the nature
the
same
guaranteed
a
Old
unemployment
general
American public. To maintain the
a
many
earner
cost
of
for
the
only
the
benefit
Survivors
pension
monthly,
pay
between
In
Apart from
has to take chances.
provide
turnover.
problem
difference
and
$100
actually
vital.
sponse
President, San Bernardino Valley
The
such
to
American businesses to increase
LOUNSBURY
College, San Bernardino,
workers
instance,
a
themselves
must
differences
and
L.
tired
American
contract
will
JOHN
Security payments.
Em¬
ployers who agree to pay their re¬
anticipated
not, when fully
informed, agree to the adoption of
any plan to Subsidize Idleness.
City
the rtaVs and
state
man
upon
buyers which cannot be accurately
industrial economy.
who pays the bill, the
consumer,
with
based
are
production
impossible. Periods of ad¬
justment to the market choices of
is
applicable
contracts
unions
Social
checks
pay
New
in
system
supplements. The
no
whole
National
York)
allow
our
policy
52
firms have either
adequate Federal-State
benefits
long-range
it
of
quite
in
as
in
ne¬
bargaining
continued
organized
feasible
union
products they manufacture makes
idle
prosperity,
included
American
with
Pensions
collective
for
commit
production
nor
experience
recessions
sound, and possibly
wide
its
no
toward
industries
give unquali¬
to the idea springs
approval
from
to
ment of
a
how¬
Manage¬
manner.
ment
be admitted
some
to
to his average weekly
the
answer
must
be
same
(Monthly Let¬
First
employees
growing "Big," must conclude that
even if the principle of the GAW
as
fied
in this
reluctance
ment
could
despite
the
setbacks
of
wars,
inflation and depressions,
strikes, and the other pains of
for
business,
the negative. Few of the 3,800,000 firms in the United States
labor,
workable
G.A.W.
national production problems. Un¬
der
such
conditions,
everybody
from
has
$36.
to
of
Wage."
in
long-time observer of the
marvellous development of Amer¬
and
the guaranteed
possible for all
the
earnings
This
industry
G.A.W.
larger.
each equal
same
for
pay
is
been
benefit
week,
a
York
unbiased
Motors
are most heavily con¬
Recently Michigan has
centrated.
raised
General
and
full
not
or
understands
one
can
opened to
movement
toward
-
will
uninterrupted weekly
payment to the millions of Ameri¬
mounting financial costs, and
shrinking inducements to work."
em¬
ployees receiving pay from em¬
ployers, so it will be necessary to
get approval from
those states
where
the
The majority opin¬
American
fears the implications of ac¬
cepting the principle of paying the
goal at $200
monthly.
This means, of course,
that supplementary pension
pay¬
8, Rhode Island
wage
mean
men,
ob¬
Many of these'State systems for¬
bid
continuing
At
of
have set their pension
workers ultimately de¬
pends upon what is meant by the
un¬
to
all
and
American
participate in
decisions.
sound
eligible for state
employment
goals,
term "Guaranteed Annual
reject the view
should
unions
of
would
equitable
Providence
unemployment
too tight and the idea
neither
employees
sig¬
Providence College
state
The
laid-off
their
and
CHARLES B. QUIRK, O. P.
the job; the provisions
on
for administration
periods
expires."
facts
knowl¬
would profit.
of
recognized:
ards proposed by
ican
all
unbiased
would cause irritable" im¬
patience but, in the end, we could
co¬
employers from insol¬
the 60% standards, as op¬
posed to the 80 and 100% stand¬
benefits.
Another road block is the adop-.
tion of the plan lies in the fact
of
and
course,
and
GAW,
I
nificance would slow down hascy
action.
Slowness
of
action,
of
aspira¬
vency;
a
problem,
labor and management to require
a
Whether
obvious
most
have
agencies
the
publicly.
ion
ever,
in
gently:
that
to
Chairman, Economics Department
favorable
most
conditions this is unlikely to come
about before the three-year con¬
the
million), and is organiz¬
period
a
calculated
The
to
"Even
into
come
funds should
does
of
to
would
4%
four
beginning June
trust
critical
activities
for
pay
of
65%
for 22 weeks. The
Benefits
unions,
the
to
the
by the big unions, on
the part of the 2.600 unaffiliated
are
weekly
designed
years
and
industries.
benefits
operation gradually over
ment
other
total
regular
and
tomatic
which, with a limit
week/ would raise the
a
weeks and 60%
merged), is looked upon with mis¬
givings or disapproval by both the
independent unions and manage¬
in
trust
our
idea
and
of
pmon*
unions, it must be noted that the
recent
(SUB)
three years these
or
in
more
•
gotiated
that the door has been
should
Though
ces
benefit
unem¬
solution
The well-informed and unbiased
get back
and
more
and understanding of the
rights and privileges of all. The
willingness on the part of both
workers."
that
move
<
cation
time it must be frankly recognized
workers
so
close
a
hour per
per
supplementary
a
must
believe, lies in the field of edu¬
unions, through 'Joint
Boards,' a 'National Production
Board,' and the like, to taice over
industry and run it for the benefit
of a minority of industrial
a
all
demands.
business
as
giant
a
take
five cents
In two
of
industry
out, it's
Motors
lay-off bene¬
supplementary to state un¬
employment insurance, for as long
the
unions,
General
then
controversy favor the in¬
of
unemployment
com¬
pensation, in the total pay check
guarantee.
A few management
spokesmen
have
supported
the
pension
fits,
of
time
the
and
clusion
to
the
we
The
funds would provide
*
auto
but,
actually "guaranteed"
is
Ford
ployment
fund.
the total prod¬
and
beguiling,
G.A.W.
^he direction of statism, and
tions of the
"The
goals,
our
group
liberties become fewer and fewer.
it
Equallv
apparent
dens
change. The word
is
agreement is that these companies
employee to
labor
in
money
the
on
limitation of liability protects the
consumer from unreasonable bur¬
Ail that
and
Thus
the
for
"pie in the sky," which may never
realized, or at best awaits the
in
em¬
in
and
at home.
armchair
based
aside
GAW
tween
giants
is
ad¬
increases
more
the
putting
of
envelope right now, rather
than the uncertainties of the GAW
into
this
a
wage
refuses to take the respon¬
sibility
the pay
pay
involving
the tested
pay
benefits,
will
uct,
of
misleading.
the
more
the
as
experi¬
'
renewal
continue
to
man
get
modi¬
a
British
in
"nationalized industry."
long fight beployer
most
wage
contracts reflects the mood of the
It
Is just another
twist
the
nation
fied form of socialism such
"guaranteed"
arrange¬
ment does not
affect
become
under
be
this
wages
new
Annual
a
test of time and
to
that
woik
is
system,
industrial
vantage
That
Guaranteed
"Wage looks like
not
Miami
ih-
to
free enter¬
history, and, possibly to
JOHN T. HOLDS
WORTH, Ph.D.
University
have
we
ment in
Dean Emeritus,
lead
our
competitive
now
School cf Business Administration
"car-
tensmcation of the economic "cold
and
public
gov-
and
industry
labor would
prise,
of
upon
subaiuy and supervision."
event the conflict between
necessary to give labor monopo¬
listic powers, nor to
place laoor
contracts
under
the
supervision
control
"It is
affairs when
state of
be
may
its
if
In
6ne
manner
peopl'e more rigid controls by the
only instrumentality we have for
such
purposes,
the government.
unforseen, and in the case of cer¬
tain
occupations, the inevitable
layoffs and slack seasons." The al¬
most universal opposition of busi¬
nessmen to GAW is "based in part
on tneir knowledge that
it is too
much to expect ordinary mortals
to work in a disciplined way when
they can get good pay sitting in
eventually "would
largest ones
into
a
the
fuia.ciiL
proven
union
any
force
monopoly
sound.
1
many
belong to
earner
always
-
drive
would
(two'
smaller competitive companies out
of business, and
field of human
relationships have
r
risk-taking and steady
peoples.
when
selfish
a
goals are achieved.
Such disregard for the
good of all
will, in the end,' force upon the
of wage earners who do
uence
in
suffer
all
world,
achieve
atti¬
of
of
moves
guaranteed annual
a
good
kind
get
prevalent
of that great majority
one)
not
will
workers
The
Secondly, and possibly more
importantly, it is another striking
and
the
an
This is 7%
hour more immediate pay
tude toward
-
once.
31
Continued
on
page
33
32
The Commercial and Financial Chronicle
(296)
liams, President, said: "The port¬
r
folio companies
Investing for
j
a
reported
Mutual Funds
Relatively High Income
National
By ROBERT R. RICH
Investment
Company Assets
Reported At $8.48 Billion
I jective of which thetoprimary ob¬
a mutual fund, is provide an
(investment in a diversified group
preferred and
stocks selected
common
because of
reasonable
(relatively high current of its and
yield
expectance
Association
con-
Prospectus and other
may
be obtained
information
ifromNational Securities & or:
your investment dealer
ciation
Research Corporation
In
Established 1930
120
New York 5,
Broadway,
LiJ
year,
N«w York
end
first
ATOMIC SCIENCE
the end
fund
same
the
of
1954.
$274,999,000
quarter. For the first
six months,
purchases for port¬
folio totaled $848,098,000 and sales
compares
401,000
purchased
shares
mutual
new
$271,976,000
totaling
MUTUAL
FUND,
for
Inc.
of
six
is
months
variety of
000
companies participating
in activities
quarter,
of
should
1955
further
in
ments
total
a
plans
of
were
and
Eberstadt
of
heavily
K>33
THIRTIETH STREET, N. W.
WASHINGTON 7, D. C
those compan¬
a large
upon
those
30,1955,
of total net as¬
compares
with $341,5%
This
costs
in
whose
products
agement
company
will
paratively low labor costs
unit
Stanford
Research
Institute
from the
technical
consultant.
year-end.
of
This
output.
results
per
54,656
opened
the
TO
quarterly
report of Chemical Fund, Inc. re¬
leased
stockholders
to
today
net
ical processes
instrumentation
of
control
of
automatic
for
est
Association
of
number
any
previous quarter, compared
with $65,398,969 on June 30, 1954.
The
6,256,154
the
the
Please send
your
Funds.
ten
30,
on
Company
1954.
On
June
1955 stockholders
two-for-one split of
28,
a
prospectuses
d 128
paid
388,000,
in
out
made
common
a
up
total
to
of
an
capital stock from
change in the
to
50 cents
$31,share
par
per
ber of shares
$3,166,000
a
increase
5,-
value from
$1
The num¬
share.
outstanding and
per
figures have been adjusted
30,
1955
earlier,
$207,621.70
the
ing
June
the appointment of
assets
in
On
were
the past two years.
The
Dur¬
to
$1.41,
or
Cost Accountants.
justing for capital gains distribu¬
tions of $0,074 per share.
as
June 30. 1955
on
was
been elected a director of
earlier.
This
is
a
30
increased
55%
from
1,223
director
a
during the 12 months ended June
in
Address..
000
in
interest
butions by
State.
City
preferred dividends and $360,payments.
for this stock
1,898.
In
Distri¬
the 117 open-end
the
split.
and
Eberstadt,
F.
report,
Chairman,
com¬
The
Francis
S.
Wil¬
dollar
value
sales /in June 1955
the volume
Aberdeen
of
Beck
nine times
was
of June 1954 and
in
month
the
past
the
titimmiA
INVESTMENT
Mutual
Investors
over
300
bonds, preferred and
stocks selected to
common
provide reasonable current
income with conservation and the
of
—
is
a
mutual
investment
investment in
mon
a
fund
I
A mutual fund
stocks selected for their investment
approved
a
two for one split
investing in diversified
W
ONE WALL
.STRICT
NEW
portfolio
long-term growth of income and principal.
seleeted
^VTIi
AMERICAN SECURITIES
Wholesale
as
di¬
a
together
should
he
with
investment
be
in¬
appliance
which
and
is
as¬
his long
experi¬
valuable
in
the
directorate.
Building
•
Income
A
Fund
mutual
as large anlMl"11
obtainable u'tbou.
undue risk of prme.pal-
mm
„f
as
income.
COMPANY
200
Berkeley St., Boston, Mass.
San Francisco 4, California
Prospectuses available from Investment Dealers or the above
Nauic
home
with
sociated,
ence,
n
The Parker Corporation,
Russ
"Investment
Addfc#
GKUW
and
Managed and Distributed by NORTH
5
and
financial
h .
of "possible
f"
A
lullgc;:
Established 1894
announcing
Incorporated
Investors
long-term
CALVfiJ
dustries
Incorporated
companies selected for the possibility of
Send for
in
rector,
states
that Mr.
Keek's
knowledge of the automotive, ma¬
fund's
1, 1955.
FUND
stocks of well-established
common
quality and income possibilities.
a free copy of the book!.! pro>
pectus by mailing this advertisement to
and
Rubin, President of
fund,
election of Mr. Keck
chinery
Meeting held July 15
of the Fund's shares effective Aug.
(WtMeoM
STOCK
com¬
possibility
the Annual
re¬
mutual
long-term growth of principal.
offering
diversified list of
in
Inc.,
of Directors at
elected the Board
A balanced mutual fund investing
Washington
Fund,
COMPANY
Treasurer
of Borgbecame Vice-
P.
Edward
the
of
-
President in 1951.
two
years.
SHAREHOLDERS
division.
Warner in 1928, and
and one-half times as large as any
previous
when he be¬
the Borg &
He was elected
1920,
comptroller of
Secretary
two
Borg-Warner Corp.
affiliated with Borg-
since
Warner
came
Name
of
He has been
to
in
is Vice-President and
Mr. Keck
The number of shareholders
19%.
mutual
with
Chicago,
$46 million.
managed
assets of over
of
increase
an
fund
year
Selected
oldest
Shares,
American
3,775,618
compared with 3,172,802
of Chicago has
KECK
MATHEW
The number of shares outstand¬
ing
of
Society
Accountants
Association of
National
the
and
after ad¬
72%
State
York
New
American Institute of
share has increased 64%, from
ppr
$0.86
Treasurer.
formerly
Boyd,
Certified Public Accountants, The
period, asset value
same
and
a
general
partnef with the public account¬
ing firm of O. F. Taylor & Co.,
New York City, is a member of
Mr.
$2.7 million. Assets have increased
96%
Vice-President
as
to
period.
total
1953,
mutual fund, has announced
Walter J. Boyd
ing
an
capital gain dur¬
months
12
30,
a
SECURITIES, Inc., lead¬
GROUP
addition,
distributed
was
as
is
This
In
55%.
from
PROGRESS
PERSONAL
$5.3
were
compared with/$3.4 mil¬
of
shareholders
increase in the
000,000 to 10,000,000 shares and a
$27,862,000
dividends,
1955,
authorized
com¬
panies
the Fund ef¬
fective at the close of business on
30,
June
on
ing this
approved
com¬
closed-end
29
securi¬
in the chemical
June
The
year
industry.
the capital shares of
panies.
in
investments
in
ties of companies
com¬
securities of the 146 member
9, Mass.
lion
a year
the same basis
The Fund spe¬
During the first six months of
1955 total distributions of $180,259,000 were made to owners of
describing
Organization and the shares of your
me
cializes
reports,
member
as
panies.
This is a total gain of
193,573 since the end of last year.
L
50 Congress Street, Boston
open-end
June
at
ac¬
totaled 2,105,068 on June 30, 1955,
with 1,901,089 accounts reported
by
The Keystone
Association
1955
30,
5,647,606 shares
plans currently in effect at 275,000.
counts,
share
as
outstanding on
compared with
shares
June
accumulation
com¬
share
per
Fund
million
The asset figure is based on
ago.
i
:y.stone
$15.80
to
held by foreign governments
dividends paid to the Fund.
of Aberdeen
ASSETS
TOTAL
amounts with¬
credit various
tax
of increasing im¬
portance to investors."
were
assets
net
pared with $11.57 per
the
The number of shareholder
mid-year
equal
plans.
new
estimates
figure reported for the end of
1954, will
permit shareholders to claim as a
This char¬
operations.
ing the first six months of 1955.
The 27,390 plans started in the 2nd
quarter was approximately equal
to the 27,266 plans opened in the
first quarter.
A record monthly
total
of
9,942 plans started in
June.
The previous high month
$98,981,893, the high¬
as
Internal Rev¬
the
to
retain
,
Code, adopted in
enue
acteristic of the chemidal industry
total
COMMON STOCK FUNDS
Revisions
chem¬
and the high degree
will prove to be
March, with 9,879
investment
several
to
companies with combined assets in
excess of $100 million.
The man¬
Generally speaking, it enjoys com¬
assets of the Fund at June 30. 1955
The
BOND, PREFERRED AND
already
the chemical in¬
fortunately
situated.
is
Research and Manage¬
which will be in¬
Fund,
serves as an investment
adviser
"In this respect
dustry
leading foreign companies in
hemispheres.
vestment adviser to the new
of less importance.
are
be
Capital
labor
by the 117 mutual funds to¬
Among such in¬
a
substantial
will
ment Company,
products contain
amounted to
was
Custodian Fund,
both
upon
of
by investors for the regular pur¬
mutual fund shares dur¬
ililUC DEVELOPMENT SECURITIES CO.
ing
weight
will
agreement
including essential min¬
and fuels.
proportion of securities represent¬
increased costs resulting from this
more
companies owning size¬
of strategic natural
in
vestments
"The burden of
pointed out that:
invest¬
its
reserves
erals
Williams
Mr.
Fund,
Resources
concentrate
resources
chemical and allied industries, Mr.
chase of
err THE FACTS AND FREE PROSPECTUS
able
Ford labor contract on the
new
will
Inc.
the effect of
on
continuous nature of many
high,
International
and
sales
in
earnings."
In commenting
the
reflected
be
increases
ingredient of labor cost than
ACCORDING
new
accumulation
from Atomic Science.
months
six
be
Resources
1954
total of $249,971,-
first
International
542,000, or 5.2% on March. 31, 1955
and $308,701,000 or 5.1%
at the
1955.
A
resulting
the
for
a
to
company,
part without
ies whose
sets.
holdings
first
investment
were
type
representing
932,000 against $140,039,000 in the
a
of
taled $362,553,000 on June
Redemptions
designed to provide
in
sales
Cash, U. S. Government securi¬
and
short-term
obligations
a
managed investment
of a
for the formation
plan
named
earn¬
held
by investors during
the second quarter came to $109,-
is
•
first
half year high.
new
with purchases of $416,-
and
$587,750,000.
purchases of $602,075,-
the
A
new
ties
The total
000
ATOMIC DEVELOPMENT
to
the first
in
months.
«
portfolio holdings
$312,751,000.
This
of
amounted
during the second quarter of this
year compared with purchases of
$330,099,000 auring the first three
MUTUAL FUND.
sales
total
closed-
29
members rose to
from $1,188,204,000
of
Investors
a
the
assets
net
company
$1,298,976,000
i
Underwriter
amount
curities) during the second quar¬
ter
totaled
$431,697,000,
when
high of $7,period,
new
a
In
end
at
this
of
117 opencompanies increased by $1,-
total
in
months
six
net assets of the
185,699,000.
through
Com¬
ings
most
$108,042,000
investment income and
this
Of
000.
announced.
the
076,309,000 to
invest
Investment
of
members totaled $148,871,-
pany
National
the
panies on June 30, 1955, reached
$8,484,675,000, a gain of $1,187,081,000 over the 1954 year-end
total
of $7,297,594,000
the Asso¬
Itinuance with regard to the risk
j
of
companies
,
Kidder, Peabody
1955, compared with the
corresponding period of the previ¬
year. The three months' period
ended March 31, 1955 was the best
first
quarter in
the history of
many of the companies.
"The gains in sales and
Formed;
accomplished for the Fund, Inc., specializing in world¬
the benefit of wide investment in the field of
price increases.
The sharp rise in natural resources companies, was
was from
earnings resulted from large vol¬ announced today by Jonathan B.
$40,829,000 from net realized cap¬ ume, greater utilization of exist¬ Lovelace,
President
of
Capital
ital gains.
ing capacities, and operation of Research and Management Com¬
Mutual funds continued in both new plants and equipment. Higher pany of Los Angeles.
An offering of the stock of the
quarters of 1955 to be net buyers efficiency from new and improved
of portfolio securities.
Securities processes also contributed to the company is planned in the fall of
bought
by
the open-end com¬ increases in earnings.
The con¬ this year and is expected to be
panies for investment portfolios tinuing expansion in demand for underwritten by a group managed
(excluding U. S. Government se¬ chemicals since the first quarter by Kidder, Peabody & Co.
Total net assets of the 146 mem¬
their
ber
involved.
To Be
ous
Series
of bonds,
increases of op-
of
ter
Speculative
World Fund
of the Fund have
average
proximately 14% in sales and 27%
in net earnings lor the first quar¬
through
I
Thursday, July 21, 1955
...
\
Company Managers since 1925"
Representatives: Boston •Chicago* Dallas* Los Angeles* New York'Washington, D.C.
Nnme
Please
send
a
Prospectus on
Q Incorporated Investors
□ Incorporated Income
Fund
i
1
Number 5448 ...The Commercial and Financial Chronicle
Volume 182
Salt used by the chemical industry totaled approximately 70%
of all consumption, and was mostly for the production of soda ash,
chlorine, bleaches, chlorates and
Eaton Howard
Assets Noiv At
$207 Million
other
branches
of
the
*
(297)
rpT1inrv Qlinrtpo
VaClllllI. J kJIJctlCo
A *
*
lligll
-
-
Shares
Century
di-
alkali
--
---
31
paqe
Wi rrU
ASoClo /xl
-
Continued from
33
Trust,
oldest
Guaranteed Annual Wage
and largest mutual investment
specializing in insurance
and bank stocks, reports total net
W. C. WILLIAMS
at
new
high of $207,225,996 on study explained, was
assets of $61,181,697 on June 30, ing power which it creates. And
June
30,
1955,
compared with rising
Industrial Relations Manager,
demand
for refrigerants, 1955, a new record high which thus the economic cycle of pro¬
aerosol
exchange
$147,291,427 a year ago.
Air Associates, Inc.
propellants,
insecticides compares with $51,384,473 on Dec. duction,- consumption,
and distribution is constantly ex¬
Eaton & Howard Balanced Fund such as DDT, and a variety of 31, 1954. i The Trust's semi-annual
We at Air Associates fair not
Semi-Annual
report shows net assets per share panded to meet the challenge of. only in the category of the small
Report,
issued
to large volume plastics.
our
vision
Combined assets of the two Ea¬
ton & Howard Mutual Funds were
The
of
the
rapid
during
chemical
industry,
chlorine
the
due to the
expansion of
the
postwar
Symposium Concluded
company
years,
-
shareholders,
24,356
of *
$158,915,238,
The study found table and house-
shows assets
of
-increase
an
hold
consumption
$38,978,590'during past 12 months.
decline
Shares
ments of
outstanding r on June 30,
1955, totaled 7,435,359 compared
with 6,836,188 on June 30, 1954.
Value
per-share was $21.37 on
June
30,
1955,
compared' with
$17.54
June
on
30,
June
Com¬
1954,
stocks totaled 69.2%
mon
of Fund
in¬
preferred stocks; 13.9%
in corporate bonds; 5.8% in cash,
on
vested
30, 4955;
11.1%
was
in
U. S. Government bonds or shortterm notes.
Largest common stock
holdings were oil (14.6%); power
light - (10.5%);
insurance
and
(6.2%); chemical (5.4%); banking
(4.7%).
; •
16
although the salt requirehuman being amount to
a
17
to
the
pounds
chemical
and
textile
dependent
a
.
Eaton
&
Howard
Semi-Annual
Fund
Stock
issued
Report,
industries
shareholders, shows assets
$48,310,758, an increase of $20,955,979 during past
12 months.
9,427
outstanding
Shares
June
on
30,
totaled 2,456,480 compared
1,862,698 on June 30, 1954.
1955,
with
Value
share was $19.67 com¬
pared with $14.69 a year ago.
Ninety per cent of Fund was in¬
vested in stocks on June 30, 1955;
10% was in U. S. Government,
per
notes and
short-term
stock
est
cash.
Larg¬
holdings
(12.1 %);
by industries
insurance
(9.8% ); power and
light (7.6%?);
natural
gas
oil
were
.chemical
(7.5%);
(6.8%).
paper
heavily
are
salt, while a host of
industries
use
significant
other
amounts.
on
thai, including the capital gams
^iStnbutiop in January^ this rep*resents an increase of 49% for the
Pen0<** The
2,105,-4881 shares outstanding at the
2*
of 3
2,060,592 shares
last Dec* 3
The
I, * "
NET ASSETS of Broad Street In-
the
high,
months
32%
for
earlier
the
after
1954
realized
that
above
adjustment
distribution
gain
from
investments.
on
Commenting
12
the
on
general
situation, Mr. Randolph
stated that any hesitation in business
activity
in
the
summer
seems
temporary
portant.
and
likely^ to
and
He
have
unim-
though
mental
reason
health
ot
but went On
tion
from
has
been
by
years
the
from
salt,
consumnt.io"
in
accelerated
the
recent
need,
a
Trust
the end
21.56%, "to
increasing
demand
industry, ac¬
economy,
note of
cau-
in view of
the
chemical
cording to the July "Perspective,"
issued by
ment
department of
Calvin
Bul¬
important inorganic
in
used
chemical
raw
materials
production,
in
conjunction with water,
air,
and
reported
sulphur,
the
study
coal
increase in salt consumption to
20.6
million
short
compared with
tons
in
1953,
major
a
15.0 million
change
reduction
in
30,
in
months
its
investment
1955.
modest
A
stocks
common
earlier
reflected
to
three
the
ac-
auisition of senior bonds and pre-
has
increased
last year.
of
from
The
common
investments.
tablished
2.000
positions
with
the
Electric
es-
Southern
prospective earnings
dominant
ar«*
factors, the growth of book
js
0f
basic
importance
value
inves-
to
tors."
of
were
Pipe
4,600 American Gas
5.000 Iowa-Illinois Gas &
Oklahoma
"The
investment
and
insurance
income
of the
comnanies
the first six months of 1955
to
pears
the
,
have
same
for
ap-
that
surpassed
of
period of 1954, fostered
ereater funds available for in-
y ®
vestment
available tor in
higher dividend
and
The
results
of
jng do not
appear
to
rates.
underwrit-
have
favorable as in the
..
,
.Holdings
Gas
Electric,
Electric
&
or
lural
investment dealer
PHILADELPHIA
of
20,000
were
13,000
Raajte
Van
Wisconsin
Electric
eliminated during the
Reductions
were
made
by the sale of 1,000 American Na-
Prospectus from
your
3, PA.
Gas,
This
been
same
period
,
„
may
be partially
counted for by defered claims
fajj
economy
effectively
by
can
procurement
resulting increased and more sta¬
ble purchasing power if labor does
in
not overcrowd its
situation.
gains too rapidly
and
try to secure increases in
cess
the
political
of
In
attempt
ex¬
conditions,
fluctuations
of advances in production ef¬
and
13,000
National
Fuel
5,000 Newport News Ship¬
building and 900 New York, Chi¬
gov-
change.*
and the
scene,
the international
such
climate, the
a
maintenance
at
of
em¬
ployment stabilization is, at times,
scientific,
horror.
a
Our
management
production
nance
adjustments.
I realize that at first blush there
when the basic principle of
come
the
will be universally re¬
pretty much along the lines
GAW
ceived
that collective
bargaining is
now
recognized and approved both by
adjunct
to
pendent
a
as
local
a
mainte¬
and
employees
into
organizedl
are
union
the
of
UAW-
ful
I
times
in
American
of
ac-
re-
business
able
in
labor
leadership
result
period
a
over
that the
way
of time
in
guaranteed
such
annual
will not only benefit
wage
laborers,
a
indi¬
strengthen
but
the
and
increased
the result¬
stable
more
purchasing power of consumer*.
in.
result
This,
we
particioate
now
would
of
which.
be
many,
serious impediment
defense program.
a
national
added
guaranteed
upon
the
to
annual
impact
the
would
wage
national economy
our
if it is inflicted upon the automo¬
tive
industry, in
the
rants
my
utmost
opinion,
interested
jective
maintaining
that
of
can
dation
"Iron
war¬
consideration
everyone
tries
the entire economy by
ing
it
readily
instances,
there
sure
have
reason¬
working out these adjustments
wage
doubt¬
finance
might
similar
am
to
ingenuitv
will
could
we
could create
will
leadership
combined with sound and
annual
extremely
withdrawal from the indus¬
our
and
I
insurmountable, but
confident that the
am
that
is
try in which
interde¬
them
it
therefrom
specialized
of
some
guaranteed
any form acceptable to the u -.ion.
Serious
labor
troubles
resulting
We will have problems
almost
seem
highly
bargaining policy attempts to-
necessary
modern
our
and
at
'
'
in
the
a
of
ob¬
country
remain free of the
degra¬
by those coun¬
disappear behind the
sustained
that
Curtain"
who
or
have
be¬
"sitting ducks" along the
sights pointing out from behind it*.
come
Meanwhile We Can
.
.
written
surance
favorable
coupled
mortality
with
experience,
„
,
outlook appears to be good
for continued growth in this industry.
"Earnings
of
the
banks
repre-
slight¬
ly higher in the first six months
all
Hope!
ingredient has been missing from
one
.
a
these conferences—an
honest
intent
to
concili¬
ate, to understand, to be tolerant, to try to see the
other fellow's
"I say
the
viewpoint
well
as
as we see our own.
to you, if we can change
spirit in which these
ferences
are
conducted,
have taken the
con¬
we
will
greatest step to¬
of 1955 than in the similar months
ward peace,
of
perity and tranquillity that has
1954.
Increasing
trend
toward
terest
rates
loans
slightly
provide
continuation
of
a
that
and
a
higher in¬
basis for
a
ever
toward future
taken
been
pros¬
all the his¬
in
tory of mankind.
:je
improve¬
ment."
& St. Louis Railroad.
the
ernmentai
with
annual wage guarantee and its
an
j954
Gas.
cago
entire
created,
Williams
C.
Walter
suiting from the hurricanes in the
1,000 Seaboard Air Line Rail-
quarter.
our
more
vidual
sented in the portfolio were
FOUNDED
believe
function
and
road.
Power
I
by this program, but
these
of
fields
continue to report increases of in-
S.
peti five-
ness
economy.
banks, the trustees observe that:
Additions to established
U.
Electric, 6,000 Deere, 5,500 GenFoods, 3,500 Illinois Power,
8,000
International
Harvester,
and
tainty and the
necessitated
The Ilfe "trance companies
800
u n c e r-
com
.
.
As to current tiends of earnings
^or insurance companies and
oral
and
the
adjust¬
be
numerous
industry and labor
,
Ohio
&
10,000
are
of
aware
us,
&
and
Foundry.
positions
new
were
acquisition
Columbus &
well
I realize
operate.
now
be
must
.you
a
good.
During the second quarter
stock
we
there
mili¬
upon
as
of
the
tary. I believer
-
force
of 1954' whlch was exceptionally
new
stock
for work-
ket values of insurance companies
ancj
banks.
While
current
and
than
liquidation
lusi vely
for
a
ments in management that will
ac-
Sdfhl°^s„nfith mTy recerd
irom the sale of
shares rather
any
that
pro¬
CIO, and if their national collec¬
f;re
87% of net assets from 89%,
short
decade earlier.
conditions.
June
in the
of
particularly with the highly de¬
veloped
technological
economy
which
:'fi
if.
"As
long as the spirit that
prevailed up to now is going
prevail in the world, we can¬
has
to
American
not expose our
leges,
Business Shares
A Balanced Investment Fund
The
portfolio bal¬
anced between
bonds and preferred
stocks
selected
for
stability, and common stocks
selected for growth.
A MUTUAL FUND
Offered by
Science & Nuclear
1500 Walnut
St., Philadelphia 2, Pa.
Company
supervises
Prospectus
a
upon request
New York
—
Chicago
—
Atlanta
—
our
rights, our privi¬
homes, our wives, our
tibeniiower
unarmed
country.
"But
we
want
to
make
it
perfectly clear these
want to live.
armaments do not reflect the way we,
They merely reflect the way, under present condi¬
tions, we have to live." — President Dwight D.
Eisenhower.
a
whether these ideas
Los Angeles
neb.
children to the risk that would come to an
Time, probably
Lord, Abbhtt & Co.
Distributors, Inc.
i.
•
almost
e x c
idea
wage
is
companying text points out that: are some very
alarming features
are an importait inabout the guaranteed annual wage.
fluence in determining the mar-1
However, I think the time will
and
present
position during the three months
common
tons
of
secur-
Broad Street Investing made no
ended
Ranking salt among the five most
individual
light
prospective
the investment manage¬
lock.
an
and
the
which
duced
fundamentally sound idea,
a
and
equipment
rela-
place, for constant study
reappraisal of investment valin
1.98% in
was
this year,
is
of
com-
ponents,
tive
taken
ities
9.57%.
Frankly, I think the
ers
par¬
aircraft r
President, Montana State College
guaranteed annual
one
production
ihe
even, "book values
been
that
electronic
$12.65 at the close of 1944 to $25.03
and
risks in
to
holdings
report also includes a chart
showing that the book values of
at
the
•
RENNE
technological,
ues
OF
66.8%,
stock
Cash and equivalent
1.23%
mod-
were
from
bank
general advance in prices that has
GROWTH
R.
ficiency resulting from
nation's
to add
to the
as
ROLAND
0f
yet to question the
the
reduced,
and
the
of
-
-
"Holy Name Journal."
portfolio applicable to each share
He expressed the
there is no funda-
that
opinion
issue
recovery
has
rate
rapid.
1955,
economy
unsoundness
the
tively
May,
in
in
ticipating
article by the author
the
in
place so far without
development of significant malador
the
but
company,
The above views ap¬
an
that
noted
taken
.lustment
erately
1950 and
in
during
prove insurance and bank stocks
probably
expansion
stocks
54.45%
cut
peared in
Bozeman, Mont.
that
note
five
casualty
were
business
months
and
Ed. Note:
■'
trustees
last
years
important
changes have been made in the
vesting Corporation rose to a rec--composition of the Trust.
At the
ord $76,596,000 on June 30, 1955, .end of last
month, life insurance
as
compared with $48,643,000 a stocks constituted 36.75% of the
year earlier. Asset value of $21.81
portfolio, compared with 9.78%, on
at the midyear was a new quarter- June
30, 1950.
In this period, fire
end
great population increase.
f?9,0? °n
against $24.94
attheclose^of 1954 and points out
-
-
to
of
Beside
year.
industry, the
.
"
on" the
of salt
dreams, meanwhile
good deal of time, only will tell
are an inspiration or mere pipe
we
can
hope.
1
34
The Commercial and Financial Chronicle
(298)
trucks
Continued from page 4
the
The State of Trade and
Industry
Businesses succumbed at a considerably lower rate than
1940 when 64 of each 10,000 enterprises failed.
year ago.
in prewar
The liabilities
involved
in
the
June
failures
edged
up
to
amounted
Last week's
by
33,964
the sharpest drop occurred
ago;
year
had only one-third
turers who
in
the
many
from
a
merchandise, apparel and automobile dealers, contrasted with
sharp declines among furniture and drug stores.
Steel Output Scheduled This Week at a
At
steel
Higher Rate
and
14% under the
tion
a
and for the comparable
1954
4,331
week
Trade
says
Commercial
people expected but the advances are not hurting demand.
failures
industrial
and
retail
Mildly in Latest Week
not
were
rose
224
to
numerous
as
as
last year
in
week
the
hand,
failures
small
of
$5,000
or
increased to
more
liabilities
with
1954 level.
under
had liabilities in
concerns
sold
192
excess
that they need steel; the brief work stoppage, the Fourth of
July holiday and summer vacations have slowed the flow of steel
facturing where the toll dipped to 43 from 52.
to
struction
and
were
will pass
consumers
as
on
resigned to
a
steel price increase
much of the increase as they can,
Although
is
there
are
them.
Some
steel
prices.
fabricators
theik product
prices in
fabricators of gutters and downspouts.
some
on
June.
structural shapes catches some fabri¬
plain material for firm contracts taken
In addition, these shops will face an estimated
ton in labor. These increases will hurt, for some
cating shops uncovered
increase of $5 a
lowered
users
Among them were
A $7-a-ton increase
low
complaints,
audible
were
on
already
margins
narrow
on
of profit,
declares
this trade magazine.
Their alternative is to take the risk of
deliveries, and others are turning away orders.
Among
those being turned away are freight car builders, whose business
on
.
the mills to continue their
recovery from the brief steel strike and the Fourth of July holi¬
day. In the week ended July 17, the national ingot rate rose 3.5
points to 93% of capacity. This is only 4 points below this year's
high point, it declares.
High production of steel, higher steeL prices and exnorts of
scrap gave steel scrap prices another upward nudge.
This put
"Steel's" price composite on steel-making scrap at $38.67 a gross
ton, an 84c rise over the preceding week.
of the steelmaking
capacity of the entire industry will be at an average of 94.3% of
capacity for the week beginning July 18, 1955, equivalent to 2.276,000 tons of ingots and steel for castings as compared with
The
an
For the
annual capacity of 125,828,310 tons as of Jan. 1, 1955.
like week
duction 2,292,000
month ago the rate was 95.0%
a
tons.
A
year
ago
and pro¬
the actual weekly production
placed at 1,557,000 tons, or 65.3%.
The operating rate is not
capacity was lower than capacity in 1955.
The percentage figures for 1954 are based on annual capacity of
124,330,410 tons as of Jan. 1, 1954.
was
comparable
1954
er
regions, failures
rose
because
In
and power
was
All-Time High Record
distributed by the electric light
industry for the week ended Saturday, July 16, 1955,
estimated at 10,440,000,000 kwh., a fresh all-time high record.
The previous
week
high level at 10,226,000,000 kwh. was attained in the
ended June 25, of this year, according to the Edison Electric
week's
output advanced 681,000,000 kwh. above that of
able 1954 week and
2,231,000,000 kwh. over the like week in 1953.
Loadings Fell 6.3% in Latest Week Due to
July 4th Holiday
Loadings of
which
was
revenue
freight for the week ended July 9, 1955,
affected by the July
4th holiday decreased 44,054 cars
6.3% below the preceding week which in turn was affected by
the coal miners' annual vacation, according to the Association of
or
Railroads.
American
increase of 83,118 cars, or
week,
but
a
decrease
14.6% above the corresponding 1954
of 68,774 cars, or
9.5%
on
the
Week Boosted 26% by
Record Level Production at Ford and General Motors
The
automotive industry
1955, according
estimated
previous
to
168,056
week.
"Ward's
cars,
The
for the latest week, ended July 15,
Automotive Reports," assembled an
compared with 134,092 (revised) in the
week's production total of cars and
past
from
the
com¬
the
surpass
The
level
demand
was
to
up
of
for
expectations in most
consumer
a
air-
above
or
sec¬
acceptance
<
Also selling quickly the past
were
fans, outdoor
hardware, sporting
furni¬
goods
refrigerators.
kept
ers
ing of
consumers.
dollar
remained
The
retail¬
as
with the active buy¬
pace
Total
price per pound of
and its chief function
sales
well
wholesale
at
above
a
year
ago.
high
buyer attendance
at
the
major wholesale centers
was accompanied by heavy order¬
ing.
The response to Fall mer¬
prices at the wholesale level.
compared with 272.28
as
very
chandise
than
it
was
enthusiastic
more
appeared last year at this
time.
Department
sales
store
corresponding date
a
year
were
the
ago.
a
month
ago.
last year's crop of 969,781,000 bushels, and with
It
for
on
a
,
of
compares
the 10-year
all
5%
1954,
6%
of
6%
of
as
moderately
as
roaster demand
the continued hot weather slowed down consumer
demand.
-
*
•
Cocoa prices were
generally steady in moderate trading with.
manufacturer and
trade demand
mostly for immediate needs.
Warehouse stocks of cocoa were reported at 241,647 bags, up from
in
two
in the first general upturn hi
gain
According
store
sales
in
the
over
like
rise of 2%
expectations that the 1956 crop will be supported at
period
Mill buying
was
about
3%
or
year.
the
Federal
indxe,
Re¬
department
New York City for
of
last
year.
was
noted
from that
2%
Jan.
July 9, 1955,
occurred.
1,
1955,
to
1955, the index recorded
1%
In
previous week. For the four
of
government's surplus disposal program.
to
period
ended
the
be
ago.
the
preceding week; July 2, 1955,
crease
high level and that farmers will approve marketing quotas in
the referendum this Fall.
Tending to hold advances in check
were the huge stock of cotton held by the CCC, and uncertainty
year
1955, advanced 6% above that of
weeks
attracted by
to
a
estimated
weekly period ended July 9,
Spot cotton prices were steady most of the week and trended
Support in early dealings was
a
New
performance* than
period
Board's
of the
somewhat easier toward the close.
in
•
serve
a
more
months.
like
4% ahead of last
the
Steer prices closed higher
volume
observers
week's
export demand for fats and oils, and further
declines in live hog values as the result of continued weakness
hot, humid weather.
trade
better
a
Trade
the
in fresh pork due to recent
period
City last week continued to
the
235,016 a week ago, and comparing with 125,234 bags last year.
Lard displayed a weak undertone most of the week, reflecting
slow
weeks
increase of
registered above that
was
show
tapered off
period of
four
an
rise
1954.
beginning of last week with total bookings reaching substantial
soft wheat flours with many buyers covering for extended periods.
the
recorded. For the
Retail
many of thedarger users covered requirements for
120 days or more; A sizable volume was also reported in
for
pre¬
a
registered
was
July 9, 1955,
was
York
proportions as
9,
Jan. 1, 1955 to July 9, 1955, a gain
at the
around
the
In
year.
(revised)
while
ended
week last year.
up
July
week, July 2, 1955,
from that of the similar
.
in¬
Board's
ended
1955, advanced 13% from the like
ceding
41,500,000 bushels, against 40,500,000 the week before, and 56,900,same
week
period of last
grain and soybean futures on the Chicago
Board of Trade in the preceding week reached a daily average of
in
Trading
taken from
as
Reserve
the
1,154,073,000 bushels.
of
000 in the
Federal
dex
featured by
bushels, slightly above the forecast of
average
country-wide basis
week earlier, and with 272.87
a
active trading and
higher prices for wheat, while other grains finished moderately
lower.
Strength in the bread cereal was largely influenced by
mill buying reflecting improved flour sales. Dealings in corn and
oats were dominated by the forthcoming government crop report,
issued after the close of the market on Monday, which confirmed
the prospect of near-record yields for those grains.
than
U. S. Automotive Output Last
Regional
year ago.
The volume of wholesale orders
wholesale
Grain markets last week
below the corre¬
sponding week in 1953.
a
edged upward last week
commodity price index, compiled by
Bradstreet, Inc., showed little change following irregular
during the past week. The index closed at 272.55 on
generally
Loadings for the week ended July 9, 1955, totaled 652,680 cars,
an
and
Commodity Price Index Reflected Irregular
Changes in Latest Week
Green coffee prices were down
Car
re¬
esti¬
to 4-7.
as
>
ture,
in the week included wheat, bar¬
Buying of hard Winter wheat bakery flours perked
This
of
was
movements
Institute.
the previous week, when the actual output stood at 9,759,000,000
kwh. It increased 1,489,000,000 kwh., or 16.6% above the compar¬
tions
The index represents the sum total of the
&
by
-f2 to -f-6; Midwest and
to
dealers'
ley, butter, sugar, tea and lambs. Lower in wholesale cost were
flour, corn, rye, oats, hams, bellies, lard, coffee, cottonseed oil,
cocoa, eggs, rice and hogs.
Dun
which
volume
week
the
conditioners
represents a drop of 3.8% from $6.51 a month earlier, and is 13.4%
below t..e corresponding year-ago figure of $7.23.
daily
dollar
in
ago.
week
with
Past Week
The amount of electric energy
tinued
grew.
The
in
halted
Spending for household goods
rose
slightly last week and con¬
index, compiled by Dun & Bradstreet, Inc.,
$6.26 on July 12, marking a new low
since Feb. 24, 1953, when it stood at $6.21. The current number
Wholesale
air-
-f4 to 4-8; South 4-1
Northwest
and
Pacific
-j-3
Coast
wholesale food price
is to show the general trend of food
ciHes
were
varied
4-5;
year
Total wheat production this year was estimated at 860,331,000
Electric Output Set New
total
East
to
Straight Week
foodstuffs and meats in general use
of
Southwest
fell from $6.33 last week to
raw
five
level of
and
Moving sharply downward for the fourth straight week, the
31
previous
parable 1954 levels by the follow¬
ing
percentages:
New
England
slignhy,
Wholesale Food Price Index Turns Sharply Lower for
Commodities quoted higher
the
stocks
trolley
trade
the
in
the Middle and South Atlantic States and the East
and West South Central States. In the five other regions, casualties
were slightly lower than in 1954.
4th
the
by Dun & Bradstreet, Inc.,
be. from 3% to 7% higher than
to
In five ot.
of
mated
suc¬
four regions,
July 12,
week ago.
industry's ingot production rate for the weeks in 1955 is
on
contractors
including the Pacific States with 61 as against 53. Fewer failures
during the week in three regions, notably the New Eng¬
land States, down to 9 from 18 and the East Nortn Central States,
down to 21 from 28.
More businesses failed than a year ago in
The American Iron and Steel Institute announced that the op¬
based
construction
and
other lines, mild declines from
In
year.
in
scanty
in
estimates
erating rate of steel companies having 96.1%
a
The
tail
occurred
steel
prices, and mills are grappling with arrearages. Some are holding
back on opening of order books to leave room for getting up to
91.2% (revised) and 2,202,000 tons
Retailing casualties
Higher
raising prices.
is just now on the upgrade.
The heavy bookings prompted
manufacturers
last
failures to 90 from 73.
on
projects planned under limited appropriations.
There's no noticeable downturn yet because of higher
date
More
than
time
strikes—Buffalo, Little Rock, Los
Angeles, Scranion, and Washing¬
ton—reported sagging sales.
92, wnolesaling to 23 from 18, whiie con¬
to 32 from 29 and commercial service to 15
The Middle Atlantic States reported a considerable upturn
fabricated steel may delay, if not kill, some work under
consideration.
This is particularly true of some public works
prices
13.
this
than
with
or
from
up
in
money
period
With the help of many re¬
price saies, most retailers
Stores
prevailed.
trying to figure where the steel price increase leaves
buyers
at
of
absence
an
from
106
edged
cumbed
continues this trade weekly.
at
the
conditioners.
$5,00), dipped
Sixteen of
complaints about the steel price increase are notice¬
ably absent. Four reasons why steel consumers' business is good
consumers
Year
more
-
more
East
of $100,000 as corn-
is
consumers;
Weeks
holiday-shortened week. Soaring
temperatures left retailers in the
pared with 12 in the preceding week.
Failures increased during the week in all lines except manu¬
to
before
year.
duced
On the
Consumer
increased
Past
of
in
in the previous week and 34 last year.
39
failing
e
liabilities
with
stores
ever
when 223 occurred
13%
week ago and were even with the
32 from
to
t
in
ended
Wednesday of last week than
on
yet they exceeded the 1953 toll of 148. Failures were dov/n
from t e 272 recorded in the similar week of 1939.
other
Volume
Period
ended July 14 from 204 in the preceding week, according to Dun
& Bra: street, Inc. Although rebounding from t e hoiiiay decline,
a
cultiva¬
area
ago.
Shoppers spent
Business Failures Advance
from 165
or
Scores Record Rate fcr this
and
cars
acres,
allotment,
year's
..
Failures
"Steel," the metal-working weekly,
the current week, did not price itself out of the market.
Its price increases the first of this month were steeper than
most
with 21,615 in the previous
total
cultivation
17,696,000
this
year
the
under
6%
In the previous week Dominion plants built 9,308 cars and
casualties
cotton
under
for
Agricul¬
of
estimated
of July 1 at
as
were
ago.
1,341 trucks.
of
area
Sales
Jignt in volume.
report, issued at the
acreage
week-end,
old
lots
needs.
nearby
28,355 trucks made
reported there
This compared
year
a
by
of
small
to
Department
ture's
6,740 vehicles
week last year 106,708
advanced
output
purchases
limited
export remained
assembled.
were
States.
18,377
2,273 trucks,
94.3% of Capacity
industry
cover
Canadian output last week was placed at 9,295 cars and 2,180
leather manufac¬
failures as in June 19o4.
eral
The
to
with
cotton
crop
among
considerably. In¬
in failures among retailers of food, gen¬
ago
year
United
trucks.
failure pattern among retailers varied
The
creases
as
routine
above
above that of the previous week
rose
truck
Last week the agency
Businesses in their first five years of operation accounted for
a
increase of 26%
an
the corresponding
tie week. In
and 18,377 trucks
week and
businesses started in 1954.
Nearly all manufacturing industries had fewer casualties than
output
car
while
cars,
during
than $5,000.
among
or
The
cars
Some 19% of the failures were
units,
196,411
"Ward's."
$36,667,000, the largest volume since March. The rise was concen¬
trated among failures with liabilities larger than $100,000; there
was
a
slight upturn among small casualties with liabilities less
56% of the month's total failures.
to
week's output of 155,707 units. It was only 9%
below the all-time high posted at the end of April.
A total of
125.085 units was reported for the same week a year ago, states
preceding
Thursday, July 21, 1955
...
from
an
For
July
a
in¬
the
9,
rise of
that of the correspond¬
ing period of 1954.
Volume 182
Number 5448
The Commercial and Financial Chronicle
...
The
Indications of Current
Business Activity
AMERICAN
IRON
steel
indicated
AND
week
month available.
month ended
Month
Week
Ago
on
8tee]
ingcts and castings
*2,202,000
§2,276.000
July 24
(net tons)
that date,
Crude, oil
INSTITUTE:
condensate
and
1,557,000
2,292,000
Crude runs to
olJuly
(bbls.
average
July
stills—daily
average
output (bbW
Kerosene output tbbls.)
Distillate fuel
oil
8
6,596,300
6,610,550
6,600,250
6,280,700
3
H7,646,0J0
7,4.9,000
7,121,000
—July
July
(bbls.)
Gasoline
1
8
26,478,000
25,683,000
8
1,887,000
2,026,000
1,579,000
1
23,762,000
Kerosene
(bbls.)
Dirt*li'iate
8
11,474,000
11,257,000
11,755,000
fuel
ASSOCIATION
gasoline
8
7,583,000
7,754,000
7,956,000
8,117,000
159,307,000
159,611,000
166,233,000
163,712,000
(bbls.)
8
8
105,167,000
8
4o,304,000
81,000
88,414,000
45,194,000
99,
.27,032,000
CONSTRUCTION
of cars)
ino.
9
652,680
696,734
786,707
July
of. cars)
(number
9
551,608
637,077
655,242
$327,950,000
200,55j,QO0
192,942,000
July 14
371,880,000
206,527,000
178,232,000
135,008,000
$431,055,000
254,577,000
176,478,000
...
—
132,778,000
96,737,000
98,511,000
112,844,000
73,749,000
July
Bituminous coal and lignite (tons).
Pennsylvania anthracite (tons)
—July
:
81,555,000
36,497,000
9
9
7,340,000
,240,000
9,345,000
Electric
output
AVERAGE
(in
000
==
100
July
—
81,000
502,000
9
•98
114
77
July 16
DUN
INDUSTRIAL)
AND
10,440,000
,759,000
9,987,000
Finished steel
.July 12
224
214
204
<E;
A
J.
M.
4.797c
4.797c
$56.59
$56.59
$37.17
$34.00
$26.58
Expert
Straits
at
New'Tone?
.July 13
.July 13
Lead
(St.
Ainc
at__
Louis)
(East St.
CONSUMER
——
29.775c
Food
96.375c
95.000c
93.875c
96.500c
15.000c
15.000c
15.000c
14.000c
Meat,
Dairy
14.800c
14.800c
14.800c
12.000c
11.000c
100.40
95.04
95.63
96.43
108.70
108.70
108.83
112.19
112.19
112.10
115.24
110.52
110.70
Industrials
MOODY'S BOND
U. S.
YIELD
109.06
corporate.
103.80
103.80
103.80
NEW
OF
(OOO's
30
107.44
107.62
108.88
103.24
109.24
109.24
INDEX
109.79
109.79
111.44
Baa
—
and
Public
Utilities
Industrials
NATIONAL
Production
OIL.
(tons)
3.15
Medical
=
DEALERS
EXCHANGE
Odd-lot
sales
3.05
3.05
3.05
2 89
Personal
19
3.14
3.14
3.13
3.04
Reading and recreation
3.23
3.23
3.22
3.17
Other
3.52
3.52
3.52
3.31
3.30
3 23
—
3.18
431.9
225,732
339,564
263,819
155,704
279,303
282,825
126,542
100
46
598,936
417,331
9
9
55
96
642,257
582,243
106.83
106.75
106.80
All
Other
Rye
clover and
Hay,
8,724
1,170,328
1,207,849
902.199
975,999
$58,842,561
$59,838,044
$44,600,658
$42,705,386
331,530
322,610
239,870
324,830
Beans,
Peas,
sales
331,530
322,610
239~870
321830
June 25
396,010
441,490
320,140
296,110
1(M)
sales—
June 25
June 25
sales
471.180
520,630
451,649
4°6.990
13,572,610
13,652,030
10.318,749
10.323,190
June 25
Short sales
14,043,730
14,172,660
10,770,380
sales
TRANSACTIONS
FOR
ACCOUNT
OF
Banks
10,820,180
of
specialists in stocks in
MEM¬
Other
Total
Other
277,400
309,140
1.436,760
1,383,430
1,055,170
1,714,160
1,692,570
1,313,910
1,115,430
June 25
368,920
323,360
214,140
June 25
18,100
33,600
20,070
23,300
June 25
June 25
371,330
339,320
214,670
303,340
389,430
372,920
234,740
326,640
Jimp 05
658.7*5
619,195
483,685
339,425
June 25
June 25
June 25
84,106
80,780
73.030
102.810
701,407
628,834
514,055
404,080
785,507
709,614
587,085
June 25
2,744,385
2,604,335
2,001,245
-June 2®
June 25
June 25
351,840
Total
2,351,584
1,783,895
1,596,010
2,889,097
2,775,104
2,135,735
:
sales
PRICES,
WHOLESALE
LABOR
—
(1947-49
NEW
=
SERIES
—
U.
S.
DEPT.
All commodities other than farm
and foods.
110.3
110.0
1102
110.2
89.1
89.8
91.9
4.14
4.82
£23,921,000
£27,122,000
£15,510,000
$56,222,666
$281,000,000
$281,000,000
$275,000,000
277,472,387
271,259,599
44,142
42,820
81,441
$274,418,365
$277,515,000
$271,341,040
503,516
505,577
550,735
$273,914,849
$277,009,630
$270,790,304
7,085,150
3,990,369
4,209,695
$277,515,208
$271,341,040
6,215,665
5,879,608
6,766,455
$268,202,700
IN
GREAT
AND
$271,635,600
$264,574,585
BRITAIN
LTD.—Month
of
June.. "
.
TRANSACTIONS IN
GUARANTEED
A.—Month
of
DI¬
SECURITIES
June:
$45,463,200
of
—As
4.59
June
30
amount
face
DEBT LIMITATION
(OOO's omitted):
that
may
be
outstandirig
at
any
time
,
Outstanding—
Total gross public debt.;:
Guaranteed
obligations
not
.
owned
by
the
J
Treasury
Total
1
gross
teed
obligations
Deduct—other
gations
public
not
debt
and
guaran¬
!
public debt obli¬
debt limitation
.
outstanding
subject
to
total
103.0
*102.9
103.6
105.6
86.8
86.7
96.2
94.3
..July 12
116.2
•115.8
115.5
114.2
outstanding—
Balance face amount of obligations,
under
above
authority—.—
.
issuable
95.9
..July 12
..July 12
foods
([Includes 827,000 barrels of foreign crude runs.
§Based
of Jan. 1, 1955, as against Jan. 1, 1951 bvis of 124,330,410 tons.
tNumber of orders not reported since introduction of Monthly Investment
423,520
.July 12
.July 12
Meats
as
379,600
100):
Parm.«T>roducts
figure.
2,88
3.87
$274,418,365
ISSUES
MARKET
Grand
commodities
♦Revised
4.85
4.06
OF
Commodity Group—
Processed
6.23
4.55
274,374,222'
!_
BANK
S.
4.69.
2.49
(24)
4.05
4.53
$22,507,500
Tel.)
&
,——4
GOVT. STATUTORY
S.
Total
4.74
3.71
4.66
Tel.
Amer.
purchases
1,948,960
:
sales
Other
OF
for account of members—
purchases
Short sales
Total
U.
43,363
June:
—_,
(10)
U_.
14,091
•
sales
352,950
2,509,497
sales
sales
Total round-lot transactions
OF
1,797,855
purchases
Other
RECT
,
4.01
Net
506,890
.
Short sales
Total
of
(15)
Net
''
sales
YIELD
326,720
226,840
the floor—
sales
AVERAGE
STOCKS—Month
(25)
TREASURY
838.590
June 25
transactions initiated off the floor—
Total
All
1,131,710
June 25
purchases
Other
1,303.420
.June 25
:
—
sales
Short sales
Total
1,661,780
258,740
sales
Other transactions initiated on
Total
1,716,720
11,981
;
38,102
(not incl.
MIDLAND
June 25
Total purchases
Short sales
7,481
6,801
(tons)——
seed
3,484
29,880
2,236,408
34,273
2,172,517
and
(tonsi
NEW CAPITAL
which registered—
3,052
18,899
._-Ji
356,031
Average, (200)
BERS,RXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions
27,579
2,540
_
(125)
Insurance
10,184
49,328
_
WEIGHTED
Utilities
104,380
19,221
,
;
(bushels)
COMMON
Railroads
(SHARES):
23,688
41,534
58,853
4,682
(bags)
(bags)
(pounds;
Industrials
370,126
25,837
(bushels)
MOODY'S
*'
10,427
(tons).
(tons)—
(pounds)
Sugarcane for sugar
Hops
—
47,214
:_____w
)
edible
beets
J.
25,786
——
timothy
field
Potatoes
—
27,245
■—*
(ton
Sweetpotatoes
Sugar
STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ROUND-LOT
384,397
1,499,579
53,282
(tons)
dry
173,487
—
___
—
Tobacco
T
TOTAL ROUND-LOT
Total
5,557
(tons)
dry
790,737
179,044
1,513,498
_
lespedeza
984,723
5,142
969,781
639,224
109,184
Hay,
907,341
2,964,639
845,215
184,019
_i____
_•
—_
$44,877,879
4,257
purchases by dealers—
Other
120.1
205,991
(bushels)
(bags)
all
1,212,106
Number of shares
Total round-lot
106.4
663,043
1
alfalfa
5,498
June 25
June 2£
June 25
MEMBERS
113.0
106.6
„^
(bushels)
wild
$67,099,157
by dealers—
OF
113.7
J
106.5
860,331
„
(bushels)
Hay,
1,175,826
'
3,449,667
——
____
(bushels)
960.918
$65,549,131
_____
—
—
949,591
25
25
25
25
Short sales
ACCOUNT
spring
(bushels)
1,313,207
1,245,014
$49,452,043
Number of shares—Total sales
FOR
125.1
REPORTING
(bushels)
Hay,
June
June
June
June
other sales
129.1
127.3
(bushels).^—;
Hay,
June 25
Customers'
90.9
125.3
thousands):
(bushels)
Durum
Rice
(customers' purchases)—t
Dollar value
115.9
90.2
DEPT. OF AGRICULTURE—
S.
spring
Oats
._
(bushels)
Flaxseed
ACCOUNT OF ODD-
sales.
98.5
116.9
;
CROP
—
of July 1 (in
(bushels)
as
Barley
106.78
June 25
sales
Crop
►
^;___
services—.
PRODUCTION
Corn,
all
Wheat, all
180,775
SPECIALISTS ON N. Y. STOCK
«FCT'RrT?FR EXCHANGE COMMISSION:
short
Other
9
9
AND
Customers'
107.3
97.1
113.9
,
and
BOARD U.
3.09
410.5
July 15
purchases by dealers (customers' sales)—
sales
Round-lot
3.13
3.18
406.6
REPORTER PRICE INDEX—
lOO
Number of order*—Customers' total
Round-lot
3.21
3.18
402.0
—July
July
value
Dollar
3.21
3.21
CROP
care
goods
Winter
Number of share *
Odd-let
'
3.32
July 19
of period
104.2
105.5
113.3
3.50
July
July
by dealers
>_
Ju]y 19
Ju,y 19
—
STOCK TRANSACTIONS FOR ODD-LOT
LOT
;
care
112.2
103.1
119.8
;__
105.9
188.1
125.5
____.
girls'
120.9
104.5
127.5
boys'—
and
2.46
ASSOCIATION:
at end
and
3.23
Ju,y 19
INDEX
PAINT AND DRUG
1949 AVERAGE
Men's
Women's
107.7
125.7
105.5
____:
128.3
110.3
90.3
Apparel
118.9
129.9
103.3
:
114.5
119.5
119.0
—
114,6
109.4
103.7
oil
103.5
117.5
97.3
fuel
operation
2.76
-r
activity
of
Household
3.24
(tons)
Unfilled orders
and
2.82
(tons)
Percentage
fuels
104.6
122.5
electricity
111.0
130.3
;
103.0
110.9
_'___
121.3
120.2
Footwear
July 19
PAPERBOARD
and
3.24
Group—
Orders received
.
'
112.8
123.9
104.0
.__
home
at
110.1
102.1
:
111.2
123.8
products—,
foods
2.87
Group
COMMODITY
MOODY'S
#
r
115.0
114.2
111.1
108.4
bakery
—July 19
——
$679,000
110.0
July 19
Group
$572,000
$572,000
______
1947-49=100—
tome
July 19
—
Railroad
14
f
117.4
at
apparel
Transportation
u,
68
14
■
"
Housefurnishings
110.70
109.79
Aa* ZTZI—Z—III"III-I————--II- July
A
22
57
'
YORK—
omitted)
Other
—
20
59
OUTSTANDING—FED¬
poultry and fish
products
i_
and
vegetables——
Solid
104.14
107.27
——.—
85
17
,
Gas
109.£7
DAILY AVERAGES:
Bonds-
Government
Average
—
97
26
public service enterprises
development
Rent
112.37
108.88
103.88
.July 19
.July 19
—
Group—
Group
90
400
j
99
and
60
360
•
425
Housing
110.34
.July 19
Group
Utilities
64
110
115
Fruits
13.800c
12.500c
.July 19
Public
35
71
building.__:
PAPER
Cereals
.July 19
Railroad
129
183
32
'
119.4
35.475c
110.52
407
72
211
114 2
35.550c
12.500c
.July 19
379
34
of May:
35.600c
.July 19
Average corporate
26
69
items
29.700c
.July 19
July 19
U. S. Government Bonds
1,112
22
395
Food
35.700c
DAILY AVERAGES:
MOODY'S BOND PRICES
1,059
21
;____
PRICE
35.700c
July 13
.
at—
11
1,157
public—
June
35.700c
.Ju.y 13
at
Louts•
16
__.
Other
(New York)
Lead
16
__;
.___
RESERVE BANK
of
Month
at
58
293
r
All
July 13
July 13
:
refinery
J
As
QUOTATIONS):
refinery at
tin
ERAL
$56.59
$33.50
31
60
290
,
4.801c
$5).09
Electrolytic copper—
Domestic
29
30
226
.July 12
Scrap steel (per gross ton).
METAL PRICES
5.178c
382
.
.July 12
ton)
379
60
'
PRICES:
(per lb.)
gross
37
157
water
other
All
28
131
221
Miscellaneous
8,951,000
20
-
308
„_
and
45
30
28
;
.
facilities
Highways
47
37
141
^
nonresidential
Military
58
20
31
Hospital and institutional
COMMERCIAL
(BON AGE COMPOSITE
177
______
private
"
July 14
173
63
Educational
&
INC.
76
116
188
398
building 5r_Nonresidential
building
Industrial
347,000
87
88
146
24
.___
Conservation
Pig iron (per
192
u__
construction
Sewer
kwn.j
FAILURES ^(COMMERCIAL
BRAD STREET,
234
89
168
;
.Residential
5,348,000
345,000
other
Public
63,634,000
ELECTRIC INSTITUTE:
EDISON
161
utilities
Other
SYSTEM—1947-49
183
31
construction
All
RE3ERVE
INDEX'—FEDERAL
SAf.ES
institutional-.;.
and
Telephv-.ie and telegraph-—
Other public utilities
OF MINES):
(U. S. BUREAU
STORE
530
.____
Railroad
$378,851,000
July 14
1:.
•
DEPARTMENT
590
39
recreational—;.;
and
Public
$578,407,000
July 14
Juiy 14
State -and municipal
:
29
634
(nenfarm)
27
257
Farm
ENGINEERING
—
114
31
Miscellaneous
479,455
—
Private construction
COAL OUTPUT
—____L__
__
Social
569,562
contraction
on
1,050
123-
125
Educational
NEWS-RECORD:
r
1,230
______
52,330,000
29,899,000
July
freight loaded
s
1,193
1,310
■_
;
__
building
Hospital
freight received from connections
.Total F
.
2,273
1,380
Warehouses, office and loft buildings"
Stores, restaurants and garages
Other nonresidential building,
Religibus
RAILROADS:
Revenue
~
$3,385
2,496
1,463
Commercial
29,078,000
£0,719,000
44,799,000
30,456,000
July
.—
at
AMERICAN
ENGINEERING
8
ou»y
at_
Revenue
CIVIL
July
at
Ju.y
'bbls'.)
(bbls.)
OF
$3,555
2,655
189
Nonresidential
9,253,000
July
at
on
oil
fue»
.Residual
alterations
Nonhousekeeping
2,422,000
July
(bbls.)
output (bbls.)
ununtshed
and
and
Ago
$3,812
__IIIIIII
building (nonfarm)__
dwelhng units,
Additions
Month
(in millions):
construction
New
Yew
Previous
OF
__
7,523,009
25,985,000
Stocks at refineries, bulk terminals, in transit, in pipe lines—
finished
DEPT.
Industrial
output
Residua) fuel oil
S.
Residential
12 callons each1
•
CONSTRUCTION—U.
LABOR—Month of June
Total new construction
of that date:
are as
Month
BUILDING
*•
output—daily
of quotations,
cases
either for the
are
Latest
65.3
Private
PETROLEUM
in
or,
Ago
95.0
*91.2
Eeutvalent to—
AMERICAN
production and other figures for the
cover
Dates shown in first column
Year
§S4.3
July 24
or
or
Previous
Week
INSTITUTE:
STEEL
operations (percent of capacity)
following statistical tabulations
latest week
Latest
35
(299)
UNITED
STATES
Plan.
capacity of 125,828,310 tons
DEBT
GUARANTEED—(OOO's
As
of
June
General
on new annual
GROSS
Net
30
fund
balances
debt
Computed
annual
rate.
DIRECT AND
omitted):
2.351%
2,348%
2.342%
The Commercial and Financial Chronicle
...
Thursday, July 21, 1955
(300)
36
ADDITIONS
* INDICATES
Registration
Securities Now in
Academy
Uranium &
Oil Corp.
(letter of notification) 15,000,000 shares of com¬
stock. Price—At par (one cent per share). Proceeds
mon
mining operations.
—For
Utah.
St., Salt Lake City,
•
Office—65 East Fourth South
Underwriter—Western States
city.
Investment Co., same
All State Uranium Corp.,
Moab, Utah
(7/27)
April 19 (letter of notification) 1,000,000 shares of com¬
mon
stock (par one cent).
Price—30 cents per share.
Proceeds—For mining operations.
Underwriter—Gen¬
eral Investing
Filing to be amended.
Corp., New York.
A Hied Industrial
Development Corp.
(tetter of notification) 300,000 shares of class
A common stock. Price—$1 per share. Proceeds—For oil
20
June
Office—1508 Capitol Ave., Houston,
Underwriter — Paul C. Ferguson & Co., same ad¬
end gas operations.
Tex.
dress.
Silver Spring, Md.
22,000 shares of 6% cumu¬
stock (par $2); 36,668 shares
of class A common stock (par 25 cents) and 628 shares
ef 7% cumulative preferred stock (par $100).
Price—
For 6% preferred and class A common, $2 per share; and
for 7% preferred, $100 per share. Proceeds—For work¬
ing capital. Office—8025 Georgia Ave., Silver Spring,
(letter of notification) 87,500 shares of common
stock (par $1). Price—$2 per share. Proceeds—For pay¬
ment of notes and account payable, purchase of addi¬
July 11
•
Automatic Remote Systems,
June 27 (tetter
Reno, Nev.
Badger Uranium Corp., Las Vegas, Nev.
(tetter of notification) 6,500,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
ceeds—For mining operations. Office—401 Fremont St., July 1
of notification) 27,000
shares of 7% cumu¬
preferred stock (par $10) and 27,000 shares of
common
stock (par $1) to be offered in units of one
chare of each class of stock. Price—$11 per unit. Pro¬
ceeds—For working capital, etc.
Office—206 No. Vir¬
ginia St., Reno, Nev.
came
Underwriter—Senderman & Co.,
address.
American Asbestos Co.,
Ltd.
"D") 600,000 shares of common
stock
(par $1). Price — 50 cents per share. Proceeds—For
general corporate purposes. Underwriter—Maine Invest¬
ment Co., Ltd.
>Ar American Bakeries Co., Chicago, III.
July 11 filed 100,000 shares of common stock (no par)
to be offered by company under its investment plan for
1
employees.
American Natural
(7/28-29)
Gas Co.
shares of common stock (par $25)
by common stockholders
share for each five shares held on July
for subscription
be offered
on
the basis of one
or
29
(with
an
oversubscription privilege); rights ex¬
pire Aug. 12-13. Price—To be supplied by amendment.
Proceeds—To be applied to the purchase of equity se¬
curities of subsidiaries or to replace other corporate
Underwriter—To be deter¬
Probable bidders: Blyth
Co., Inc.; The First Boston Corp.; Lehman Brothers;
Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
Bids—Expected to be received up to 11 a.m. (EDT) on
or about July 25, at 165 Broadway, New York 6, N. Y.
funds used for that purpose.
mined
by competitive biding.
&
American Rare Metals Corp.,
N. Y.
300,000 shares of com¬
cent). Price—$1 per share. Proceeds
—To repay debt and for general corporate purposes.
Underwriter—Equity Securities Co., 11 Broadway, New
York, N. Y.
May 11
mon
(letter of notification)
stock (par one
-^American Republic Investors, Inc., Dallas, Texas
July 15 filed 800,000 shares of common stock (par $1).
JPrice—$10 per share. Proceeds—For working capital, etc.
Underwriter—None.
AMIC
$200,000 of 10-year sub¬
1965
(with warrants to purchase class B common stock).
JPricce—At par (in denominations of $100 each). Proceeds
—For
(par 10 cents). Price—$1 per share. Proceeds—To
acquire or lease plant; for equipment and inventory;
and for working capital. Office — Toms River, N. J.
stock
U nder writer—N one.
Salt Lake City, Utah
expansion, working capital and general corporate
Business—Electronic units, etc. Office—21-25
Island City, N. Y. Underwriter—None.
purposes.
44th Ave., Long
Arizona Amortibanc, Phoenix, Ariz.
April 4 (letter of notification) 300,000 shares of com¬
mon stock, class A.
Price—At par ($1 per share). Pro¬
ceeds—For working capital. Office—807 West Washing¬
St., Phoenix, Ariz. Underwriter—First National Life
Insurance Co. of Phoenix, same address.
ton
Arkansas
Oil
Ventures, Inc.
July 6 (letter of notification) 500,000 shares of common
£tock
(par one cent). Price :— Two cents per share.
Proceeds—For drilling equipment and working capital.
-Office—615 Liberty Bank Bldg., Oklahoma City, Okla.
Underwriter—F.
R.
Chatfield
&
Co., Inc.,
Springfield,
Mass.
(par $1.)
of pr?Pequipment, construction of additional facilities,
erty and
etc. Underwriter—Mountain States Securities, Inc.,
May 26 (letter of notification) 20,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
Office — 156 East Third
Utah. Underwriter—Columbia
Securities Co., Denver, Colo., and Salt Lake City, Utah.
ceeds—For mining
expenses.
South St., Salt Lake City,
Big Salmon Uranium, Inc., Lewiston, Idaho
(letter of notification) 15,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds—For mining expenses. Office—851 Main St.,
June 25
Black Panther Uranium Co.,
Oklahoma City, Okla.
500,000 shares of common stock (par 10
cents).
Price—$1 per share.
Proceeds—To explore and
drill leases and claims in State of Utah. Underwriter—
12 filed
&
Stacy
Co.,
Tex.,
Houston,
on
"best efforts
basis."
Blue Goose
June
^ Carolina Fund, Inc., Columbia, S. C.^
July 7 (letter of notification) 22,500 shares of common
stock. Price—At par ($1 per share). Proceeds—For work¬
ing capital. Office—1911
Mining, Inc.
(tetter of notification) 1,950,000 shares of com¬
Price—At par (10 cents per share).
Pro¬
7
ceeds—For
Offices—Boulder, Garfield
mining expenses.
County, Utah, and Box 1055, Farmington, N. M. Under¬
writer—Birkenmayer & Co., Denver, Colo.
ir Bojo Uranium Co., Salt Lake City, Utah
July 8 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share). Pro¬
ceeds—For expenses incident to mining operations. Of¬
fice—403 Felt Building, Salt Lake City, Utah.
Under¬
writer—J. E. Call & Co., Salt Lake City, Utah.
^ Bullion Butte Mining Co., Inc., Mobridge, S. Dak.
30 (letter of notification) 1,600 shares of common
stock.
Price—At par
($25 per share). Proceeds—For
capital assets. Underwriter—None.
June
* California
(8/23)
Power Co.
Electric
July 15 filed 230,000 shares of common stock (par $1).
Proceeds—To reduce bank loans. Underwriter—To be
competitive bidding. Probable bidders:
Rhoades & Co. and Bear, Stearns & Co.
(jointly); Kidder, Peabody & Co.; Lehman Brothers;
Merrill Lynch, Pierce, Fenner & Beane. Bids—Scheduled
determined
Carl
to be received
on
Aug. 23.
Uranium Co., Moab, Utah notification) 300,000 shares of common
five cents). Price—$1 per share. Proceeds—
Cedar Springs
stock (par
mining expenses.?^
Office_i39 Virginia St., Reno,
Nev.
Underwriter—Coombs & Co. of Las Vegas, Inc.,
Las Vegas, Nev.
Calumet
Underwriter—Universal Invest¬
Corp.; Washington, D. C.
ment
Central Reserve Oil Co.
(N. Y.)
May 31 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share; Proceeds—
For general corporate purposes.- Office—130 West 42nd
Street, New York, N. Y. Underwriter—United Equities
Co., 136 Liberty Street, New York, N. Y.
Co., Centralia,. Mo.
shares of common stock (par $5).
Price—To be supplied by amendment. < Proceeds—To re¬
duce bank loans incurred in connection with acquisition
(A.
of
expenses.
&
Hecla, Inc.
common
standing capital stock of Goodman Lumber Co., Good¬
man, Wis., on the following basis: 18 shares for each
share of Goodman
common stock; seven shares for each
share of Goodman 2nd preferred stock; and eight shares
for each share of Goodman 1st preferred stock; offer to
stock
of
Seyler
Manufacturing Co., Pitts¬
burgh, Pa. Underwriter—Stifel, Nicolaus &
Louis, Mo.
Co., Inc., St.
Co., Philadelphia, Pa.
notification) 120,000 shares of common
(Victor V.)
Clad
June 17 (tetter of
(par 25 cents). Price—$2.50 per share. Proceeds—
equipment and working capital. Underwriter—Bar¬
Co., Inc., New York.
stock
For
rett Herrick &
Clad-Rex Steel Co., Denver,
June 6
stock.
Colo.
(letter of notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds—To re¬
outstanding debts and for working capital. Office—
Ulster St., Denver, Colo. Underwriters—
Mountain States Securities Corp. and Carroll, Kirchner
tire
40th Ave. and
&
Jaquith, Inc., both of Denver, Colo.
,
(8/15)
April 21 filed 2,960,000 shares of common stock (par one
cent), of which 2,500,000 shares are to be offered pub¬
licly. Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpor¬
ate purposes.
Underwriters—General Investing Corpv
New York; and Shaiman & Co., Denver, Colo.
•
Colohoma
Uranium, Inc., Montrose, Colo.
Colorado Oil & Uranuim Corp.
(tetter of notification) 300,000
June 7
shares of common
(par 20 cents). Price—$1 per share. Proceeds—
oil and mining activities. Office — 350 Equitable
stock
For
Underwriter—Birkenmayer & Co.,
Bldg., Denver, Colo.
same city.
•
Colorado Sports
(7/29)
Racing Association
April 29 filed 600,000 shares of common stock (par five
cents). Price—$1 per share. Proceeds—For purchase of
land and other facilities and for working capital.
Of¬
fice—Grand
Junction,
Colo.
Underwriter—General In¬
vesting Corp., New York.
Inc., Atchison, Kan.
3,000 shares of 4%%
cumulative preferred stock. Price — At par ($100 per
share). Proceeds—For working capital. Office—604 Com¬
mercial St., Atchison, Kan. Underwriter—First Securities
ic Commerce Acceptance Co.,
July
(letter
5
notification)
of
Co. of Kansas, Inc.,
Wichita, Kan.
Community Credit Co., Omaha, Neb.
June
6
(letter of notification) 1,000 shares of 5Vz%
preferred stock. Price—At par ($100 per
Proceeds—For working capital.
Office—3023
St., Omaha, Neb. Underwriter—Wachob-Bendejr
cumulative
share).
Corp., same city.
• Community Drug Co., Inc., Arlington, Va.
6
(letter of notification) 30,000 shares
July
cumulative participating preferred stock.
of 6%
Price—At par
($10 per share). Proceeds—For expansion, etc. Under¬
writer
Auchincloss, Parker & Redpath, Washington,
—
D.
June 9 filed 113,592 shares of common stock (par $5) to
be offered in exchange for all of the issued and out¬
B.)
29 filed 50,000
June
Farnam
Cal-U-Mines, Inc., Reno, Nev.
May 2 (letter of notification) 2,z50,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
mining
S. C.
June 8 (letter of
by
M. Loeb,
—For
Blossom St., Columbia,
Underwriter—None.
stock.
mon
Den¬
Colo.
ver,
•
Manufacturing Corp.
July 12 (letter of notification)
ordinate redeemable debenture bonds due June 30,
^ Caribou Ranch Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock
Price—$4 per share. Proceeds—For acquisition
Chance
Porter,
Canada
Ltd., Montreal,
3
stock
...
ir Beckjord Manufacturing. Corp. (7/27)
July 11 (tetter of notification) 270,000 shares of common
July
REVISED
(regulation "D") 2,000,000 shares of common
(par one cent). Price—15 cents per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter—Tellier & Co., Jersey City, N. J.
June
For
i Baidor Electric Co., St. Louis, Mo.
July 6 (tetter of notification) 19,124 shares of common
stock (par $10) to be offered for subscription by stock¬
holders. Price—$15 per share. Proceeds—To expand pro¬
duction facilities and/or repair of building and equip¬
ment; to increase inventories; and for working capital.
Office—4327-63 Duncan Ave., St. Louis 10, Mo. Under¬
Lewiston, Idaho. Underwriter—None.
June 15 filed 736,856
to
28
Underwriter—Weber Investment Co.,
city.
Beehive Uranium Corp.,
Feb. 17 (Regulation
•
Vegas, Nev.
writer—None.
lative
stock (par 50
Price—$3.75 per share. Proceeds—For manufac¬
ture of Teleac Sending and Receiving Units, working
capital and general corporate purposes. Office—Balti¬
more, Md. Underwriter—Mitchell Securities, Inc., same
city. Statement effective.
same
Underwriter—None.
Inc.
March 3 filed 540,000 shares of common
Vt Allied Finance Corp.,
Allstates Credit Corp.,
1405
cents).
July 8 (letter of notification)
Md.
—
Springs, Colo. Underwriter—A. H.
Vogel & Co., Detroit, Mich.
Mesita Road, Colorado
Las
lative convertible preferred
Office
equipment, and working capital.
tional
ITEMS
ISSUE
PREVIOUS
Canadian Uranium Mines,
Colorado Springs, Colo.
Research Corp.,
Atomic
June 10
SINCE
•
C.
Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (tetter of notification) 200,000 shares of common
stock (par 10 cents).
Price—25 cents per share. Pro¬
ceeds—For mining expenses. Office—326 Wiggett Bldg.,
Coeur
d'Alene, Idaho.
Underwriter—M. A. Cleek, Spo¬
kane, Wash.
Consolidated
of the mailing of the prospectus to the Goodman
stockholders). Underwriter—None.
Sudbury Basin Mines, Ltd.,
Toronto, Canada
Jan. 31 filed 3,000,000 shares of common stock (no parX
Price—To be supplied by amendment.
Proceeds—For
exploration and development of properties. Underwriter
—Stock
to
★ Canadian Petrofina Ltd.
through
underwriters
terminate
on
Sept.
(subject to withdrawal by
15, 1955
Calumet if the required number of Goodman shares have
not been deposited and accepted within 30 days from the
date
July
15
filed
ticipating
on
preferred
shares
(Montreal, Canada)
of non-cumulative par¬
$10), of which 270,943
exchange for shares of $1
capital stock of Calvan Consolidated Oil & Gas Co.
shares
par
1,434,123
the
are
to
basis
be
of
stock
offered
New York.
Boston
Pittsburgh
Chicago
be
offered
in
one
share
of
Canadian
San Francisco
Private Wires to all
offices
Cleveland
for
exchange for shares of common stock of
Western Leaseholds Ltd.
Philadelphia
Petrofina
1,163,180 shares to
or
Leasehold Securities Ltd.
on
Constellation
Toronto
Stock
selected
dealers
Exchange
or
in United
Uranium
Corp.,
Denver,
Colo.
mining expenses.
Office—206 Mercan¬
Bldg., Denver, Colo. Underwriter—Bay Securities
Corp., New York.
tile
•
June 24
stock held. Underwriter—None.
or
Proceeds—For
10 shares of Western Leaseholds
Leasehold Securities
on
March 22 (letter of notification) 2,855,000 shares of com¬
mon stock
(par one cent). Price —10 cents per share.
the basis of three shares of Canadian Petrofina for each
or
sold
States.
(par
in
each four shares of Calvin stock and
be
Consumers Power Co.
filed 373,689 shares of common stock (no par)
being offered for subscription by common stockholders
Volume 182
Number 5448.
the basis of
on
one
share for each 20 shares held
new
of July 21; rights to expire on Aug. 5. Unsubscribed
shares to be offered to employees of company and its
as
subsidiary.
Price—$45.25
share.
per
struction program. Underwriters
Proceeds—For con¬
Kuhn, Loeb & Co.;
Ladenburg, Thalmann & Co.; Allen & Co.; Blair & Co.
Incorporated; and Salomon Bros. & Hutzler.
—
★ Container Corp. of America (7/27)
July 14 filed $35,000,000 of sinking fund debentures due
July 1, 1980. Price—To be supplied by amendment. Pro¬
ceeds—For additions and
for
working capital.
Co., New York.
improvements to property and
Underwriter—Kidder, Peabody &
★ Continental U308 Corp., Reno, Nev.
(letter of notification) 490,000 shares of common
stock. Price—10 cents per share, proceeds—For mining
expenses.
Office — 139 No. Virginia St., Reno, Nev.
June 29
Underwriter—None.
Copper Blossom Uranium & Mining Co.
June 24 (letter of notification) 5,000,000 shares of capi¬
tal stock (par one cent).
Price—Five cents per share.
Proceeds—For
South,
Salt
Securities
mining operations. Office—65 East 4th
City, Utah. Underwriter — Empire
Lake
Corp.,
Denver, Colo., and 317 Main St., Grand Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.
Cortez Uranium & Mining Co., Denver, Colo.
May 27 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—404 University
Building, Denver, Colo. Underwriter—Peters, Writer &
Christensen, Inc., Denver, Colo.
Coso Uranium, Inc., Long Beach, Calif.
May 31 (letter of notification) 3,000,000 shares of capi¬
Price—At par (10 cents per share). Proceeds
—For mining expenses.
Office—-2485—American Ave.,
Long Beach 6, Calif. Underwriter—Coombs & Co., of
Los Angeles, Inc., San Francisco and Los Angeles, Calif.
tal stock.
Cromwell Uranium & Development Co., Inc.
May 25 (regulation "D") 300,000 shares of common stock
(par five cents). Price—$1 per share. Proceeds—For
exploration and development expenses, etc. Offices—
Toronto, Canada, and New York, N. Y. Underwriter—
James Anthony Securities Corp., New York.
'
it D. and V. Manufacturing Co., Inc., Bessemer, Ala.
July 7 (letter of notification) 996 shares of common
stock. Price—$50 per share. Proceeds—For general cor¬
porate purposes. Underwriter—None.
city.
same
Dawn Uranium & Oil
Copper Blossom Uranium & Mining Co.
June 24 (letter of notification) 5,000,000 shares of capital
-
stock (par one cent). Price—Five cents per share.
ceeds—For mining expenses. Office—65
Salt Lake
Corp.,
Pro¬
Easf; 4th South,
City, Utah.
city.
Underwriter—Empire Securities
same
Cordillera Mining
For
Co., Spokane, Wash.
(letter of notification) 1,500,000 shares of com¬
mon stock.
Price
10 cents per share. Proceeds—For
uranium and oil exploration. Office—726 Paulsen Bldg.,
mining operations.
Offices
738
—
—
Empire State Bldg.,
city.
same
Denver-Golden Oil & Uranium Co.
mon
Majestic Bldg.,
Deseret Uranium Corp.,
(letter of notification) 2,999,000 shares of com¬
stock
(par
Proceeds—For
Price—10 cents per share.
operations. Office—Denver
cent).
one
oil
and
gas
Club Bldg., Denver, Colo. Underwriter—Carroll,
ner & Jaquith, Inc., Denver, Colo.
For mining expenses. Office—527 Atlas Bldg., Salt Lake
City, Utah. Underwriters—Western Securities Corp. and
Potter Investment Co., both of Salt Lake City, Utah.
Desert Sun Uranium Co., Inc.
April 18 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.
Proceeds—For mining operations. Office — 343 South
State St., Salt Lake City, Utah. Underwriter — J. W.
Hicks &
Co., Inc., Denver, Colo.
^ Desert Treasure Uranium Co., Midvale, Utah
June 30 (letter of notification)
30,000,000 shares of com¬
mon stock/Price—At par
(one cent per share). Proceeds
—For mining expenses. Underwriter—None.
Dinosaur Uranium Corp., Seattle, Wash.
(letter of notification) 1,750,000 shares of commqn stock. Price—At par (10 cents per share). Proceeda
June 20
—For mining expenses.
Bldg., Seattle, Wash.
.
Office—1226-1411
Fourth Ave.
Dreyfus Corp., New York
July 19 filed $8,500,000 of systematic accumulation pro¬
grams with insurance protection and systematic accumu¬
lation programs; and
$1,500,000 of fully paid programs.
•
Dyno Mines, Ltd., Toronto, Canada
March 25 filed 1,100,000 shares of common stock (par
$1). Price—To be related to the current market price
on the Toronto Stock Exchange.
Proceeds—To American
Trading Co. Ltd., the selling stockholder. Underwriter—
R. W. Brown Ltd.. Toronto.. Canada,
basis."
on
"best-effort*
a
Statement has been withdrawn.
Electronics Co. of Ireland
Kirch.
Salt Lake City, Utah
June 9 (letter of notification) 2,000,000 shares of capital
Price—At par (15 cents per share). Proceeds—
stock.
June 16
June 23
Co., Denver, Colo.
June 8 (letter of notification) 2,995,000 shares of common
stock.
Price—At par (10 cents per share). Proceeds—
37
(301)
The Commercial and Financial Chronicle
..
6 filed 300,000 shares of capital stock.
Price—At
($1 per share). Proceeds—For machinery and build¬
ing and working capital Office — 407 Liberty Trusfei
Bldg., Philadelphia, Pa. Underwriter—None.
Jan.
par
NEW
ISSUE
CALENDAR
.
July 22
(Friday)
Goodyear Tire & Rubber Co
Common
(Offering
(Offering to stockholders—underwritten by Dillon, Read
&
Co.
Inc.)
stockholders
to
913,531 shares
underwritten
of
and
(Hallgarten
Engineering
Fairman
&
&
Co.)
Shaiman
& Co.;
McDowell)
July 25
and
Straus,
(Monday)
Common
&
Inc.)
State
Uranium
(Bids to
—Common
—Common
Peabody & Co.)
Webster
Securities
Curtis;
Tel Autograph
(Offering
Corp.;
Webber,
Jackson
California
July 28
underwriting)
$2,396,500
(Bids
11
Co
Common
EDT)
a.m.
736,856 shares
Ripley
Common
Co. Inc. and Stern Brothers
333,848 shares
&
Kirby Oil & Gas Co
(Allen
&
Co.
and
Ellis
Si
Co.)
Utah Power &
be invited)
National
E.
August 1
Federal
Foremost
(Allen
Co.)
$299,600
Co.
Co.
and
Bros.
&
-
Public Service
Hutzler)
$1,298,500
Electric
(Bids
$20,000,000
Common
Noel Si Co.)
^
October 4
Co
(Van Alstyne,
Bonds
$10,000,000
be
to
Gas Co
invited)
October 5
by
Debentures
$35,000,000
(Wednesday)
local
Preferred
dealers)
2,000,000
Pacific Far East
(A.
G.
Pacific Far East
(A.
G.
Si
Co.
Line, Inc
be
(Bids to
(Scott,
Class A Common
Mason,
Bonds
$8,500,000
(Wednesday)
& Gas Corp
invited)
$25,000,000
Bonds
'
Fidelity Insurance Co., Mullins, S. C.
(letter of notification) 86,666 shares of com¬
mon stock (par $1).
Price—$1.871/& per share. Proceed*
—To increase capital and surplus.
Underwriters—McDaniel Lewis & Co., Greensboro, N. C.; Dietenhofer &■
Heartfeld, Southern Pines, N.
Spartanburg, S. C.
Five States
mon
140,000
shares
Tuesday)
Light Co
be
invited)
November 9
Common
Inc.)
50,000 shares
C.; and Calhoun & Co.,
,
Uranium Corp.
(letter of notification) 3,000,000 shares of
Price—At par (10 cents per share),
stock.
com¬
Pro¬
Ogden, Inc., Odgen, Utah; and Shelton Sanders Invest¬
ments, Albuquerque, N. M.
Fort
Pitt
Packaging International, Inc.
300,000 shares of common stock (par 10^)*
25p,000 shares of for account of company and.
50,000 shares of five selling stockholders. Price—$3 per
share. Proceeds—For working capital; for exploitation,
"Totosave"
system;
infra-red
space
and
for
heater.
Fowler Telephone Co., Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties ii*
Leighton, la., and for conversion of both exchanges todial operation.
Underwriter — Wachob-Bender Corp.,.
Omaha, Neb.
Insurance
Co.,
Berkeley,
Calif.
1,000,000 shares of common stock (par $10).
price—$22 per share. Proceeds—For capital and surplus.
Business—All insurance coverages, except, life, title an#
Southern
Co.
to
be
Preferred
$8,000,000
(Wednesday)
1
—
(Bids
invited)
share*
Uranium Corp., Denver, Colo.
April 22 (letter of notification) 600,000 shares of com¬
mon stock
(par 10 cents). Price — 50 cents per share.
Proceeds—For mining expenses.
Office—235 Ivy St.,
Denver, Colo.
Common
500,000
mortgage.
Office—2054 University Avenue, Berkeley*
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of thisr
company by Uni-Insurance Service Corp.
Fremont
October 25 (
Arkansas Power &
(Thursday)
Telephone Co
Horner &c
19
be
(Eids to
Southeastern
invited)
160,000 shares
Peabody & Co. and McCormick & Co.)
August 4
(Tuesday)
New York State Electric
Common
Becker & Co. Inc.)
Thomas Industries, Inc
(Kidder,
$2,000,000
to
October
Preferred
Inc.)
18
County Electric Co
(Bids
(Tuesday)
Line, Inc
Becker
Underwriter—None.
June 6 filed
Oct.
shares
Worcester
August 2
Bureau.
(in denominations of $100 each). Proceeds—For workingcapital. Office—59 Olmsted Drive. Springfield, Mass.
Freedom
$3,000,000
Siboney Development & Exploration Co—Common
(Dempsey-Tegeler & Co.)
Farm
Bureau Federations and
marketing of "TropicOffice — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
$48,688,100
Pacific Power & Light Co
(Expected
American
it Federal Mortgage Corp. of Massachusetts (8/1)
July 15 (letter of notification) $75,000 of 12% bonds due.
in five years commencing Dec. 31, 1959. Price—At par
Ray"
(Tuesday)
&
the
of
State Farm
it Federal Mortgage Corp. of Connecticut
July 15 (letter of notification) $75,000 of 12% bonds
due in five years commencing Dec. 31,
1959. Price—
At par (in denominations of $100 each). Proceeds—For
working capital. Office—c/o Wilbur Duberstein, Colonial
Green, Westport, Conn. Underwriter—Norje.
of
_——-Common
(Offering to stockholders—no underwriting)
Debentures
Salomon
EDT)
noon
Bonds
$75,000
Dairies, Inc
&
other state laws.
June 30 filed
$75,000
Massachusetts
underwriting)
company—no
Livingston Oil
(Bids
to
Price—At 100% of principal amount
(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
Bonds
$22,000,000
(Saturday)
Mountain States Telephone & Telegraph
Bonds
by company—no underwriting!
by
EDT)
a.m.
October 1
(Monday)
Mortgage Corp. of
(Offer
$6,000,000
-
11
members
and
local organization.
of which
Mortgage Co. of Connecticut
(Offered
Federal
EDT)
a.m.
September 27 (Tuesday)
Pacific Power & Light Co
Common
Towbin
11
■ '
miUkig expenses. Office—1019 Simms Bldg.,
Albuquerque, N. M. Underwriters — Coombs & Co. of
(Tuesday)
Co
Power
(Bids
$600,000
Taylor,,
ceeds—For
Preferred
(Bids
(Friday)
Investing Corp.)
Unterberg,
share*
177,500
to
Federation
June 30
Common
be Invited)
to
directly
75,000 shares
Shoes, Inc
(C.
$15,000,000
Ohio Power Co
Common
Eliason,
Family Mutual Insurance Co., Albany, N. Y.
filed $1,500,000 of 5% debentures to be offered
June 28
Bonds
Sept. 20
shares
-Common
Simmons)
July 29
(Tuesday)
Light Co
(Bids
200,000
Sports Racing Association
(General
$325,974
Utah Power & Light Co
Ohio
Colorado
Common
underwriting)
stockholders—no
to
Common
Rauscher, Pierce & Co.)
Western Tool & Stamping Co
(Blunt
&
—
March 25
(Monday)
Sept. 5
(Bids to
Interstate Securities Co
(Harriman
$6,000,000
(Thursday)
Gas
Utah. Underwriter
Vegas, Nev.
City,
Underwriter—None.
Bonds
Housatonic Public Service Corp
September 13
Natural
Debentures
Co._^
invited)
be
Co
$67,000,000
(Tuesday)
Power
(Bids to
Si
(Offering
American
230,000 shares
invited)
be
Electric
-Debentures
stockholders—no
to
Common
Co—
$1,000,000
Corp.—
to
(Tuesday)
Power
August 30
$35,000,000
Paine,
others)
and
(Bids
Preferred
$19,500,000
Pacific Telephone & Telegraph
Debentures
Southern Colorado Power Co
&
Electric
by company—no underwriting) $270,000
(Kidder.
Bonds
be invited)
(Bids to be invited)
Container Corp. of America
(Stone
California
$300,000
Beckjord Manufacturing Corp
(Offer
(Monday)
Ry
August 23
Corp.
Common
Inc.) $3,000,000
August 22
St. Louis-San Francisco
shares
(General Investing Corp.)
$1,250,000
& Co.)
Trans-National Uranium & Oil Corp
July 27 ( Wednesday)
All
Shaiman
Investing Corp. and
(General
Common
-
Common
Uranium, Inc
(Garrett Brothers,
(Offering to stockholders—underwritten by Kuhn, Loeb & Co.;
Lehman Brothers; Clark, Dodge & Co.; and Salomon Bros.
1,041,393
(Monday)
August 15
Colohoma
(Hallowell, Sulzberger & Co.; and Baruch Brothers & Co.,
$1,500,000 debentures and 300,000 shares of stock
Hutzler)
Inc.—Com.
(Israel & Co.) $300,000
Debentures
&
Corp.)
Western Nebraska Oil & Uranium Co.,
Blosser
Industrial Hardware Mfg. Co., Inc.
Western Union Telegraph Co
and McGrath Securities
$600,000
J. H. Lederer Co.;
$1,000,000
&
,
& Co.;
Products, Inc.--Debentures
McCormick
Co.;
Lake
Farm
Pictograph Mining & Uranium Co., Inc.--Common
$691,068
Salt
(Monday)
August 8
Corp.—
by Dempsey-Tegeler & Co.; CruttencTen & Co.;
Maremont Automotive
Lynch,
Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital
stock (par 50 cents).
Price—$1 per share. Proceeds-For mining expenses.
Office—2320 South Main, Street,
Cafarelli Co., Las
Common
Interstate
Common
stockholders—underwritten by Merrill
Fenner & Beane)
638,532 shares
to
Pierce,
Interstate Adjusteze Corp
(Offering
(Friday)
August 5
Maule Industries, Inc.-.
Underwriter—L. A. Huey Co., same city
Continued
on
page
38
'
Financial Chronicle
The Commercial and
Price—At
stock.
Continued jrom page
Enterprises,
GAD
37
March 30 filed 110,000 shares of common
1955
General Homes,
•
it General Waterworks Corp.
30
(letter of notification)
cumulative preferred stock. Price
•
3,000 shares of 5%
— At
par ($100 per
share). Proceeds—To retire bank loans. Underwriters—
Southern Securities Corp., Savannah, Ga.; Hill, Craw¬
ford & Lanford, Inc., Little Rock, Ark.; and Security
and
Life Insurance Co.
(letter of notification) 45,583 shares
of common
Kachina
to be offered for subscription by stock¬
10 in the ratio of one new share
three shares held;
stock not subscribed for by
Sept. 10, 1955 will be offered to public.
Price—To stock¬
share; and to public, $5 per share. Pro¬
ceeds—To increase capital and surplus accounts. Office—
holders, $3
210
per
Boston
Denver,
Bldg.,
it Great Northern Uranium Co., Inc.
(letter of notification) 500,000 shares
of common
stock (par one cent). Price—10 cents per share. Proceeds
—To repay note indebtedness and for mining expenses.
Office—2070 So. St. Paul St., Denver, Colo. Underwriter
Denham Bldg., Denver,
of which
Co.
ginia St., Reno, Nev.
Co.
Underwriters—Cromer Brokerage
City,
Leborn Oil &
stock (par one cent). Price—$1.25 per share. Proceeds—
For purchase of machinery and equipment and working
expenses, etc.
Underwriter—Dobbs &
City, will act as agents.
Co.,
New
Home-Stake
_
(par $100)
to
be
offered
for
sale
in
units
of 60 shares of stock and one $100 debenture, or
multiples thereof. Price—$400 per unit. Proceeds—For
working capital. Underwriter—None. O. Strother Simp¬
son, of Tulsa, Okla., is President.
April 26 filed 500,000 shares of
Vegas, Nev.
common
stock (no par),
of which 400,000 shares are to be offered for account of
100,000 shares for account of William E.
Horton, President. Price—$1 per share. Proceeds—For
and
model
of
"Horton
and expenses incident thereto.
Wingless
Aircraft"
Underwriter—None.
Humble Sulphur Co., Houston, Texas
April 25 filed 500,000 shares of common stock (par 10).
Price—$1.20 per share. Proceeds—For exploration for
sulphur and related activities.
Underwriter—Garrett &
Co., Dallas, Texas.
Inca
April
Uranium
25
of
Moab
Bank
Price—At par
Reno, Nev.
per
of
share). Pro¬
mining expenses. Office—1946 S. Main St.,
City, Utah. Underwriter — Guss & Mednick
Co., Salt Lake City, and Moab, Utah.
Salt Lake
Industrial Hardware Mfg. Co.
(7/25-29)
(amendment) $1,500,000 of 5% debentures due
1975 and 300,000 shares of common stock
(par 50 cents),
of
which 85,000 shares are to be sold to Seymour
Bernard Offerman at $5 per share.
Price—To be
and
sup¬
plied by amendment. Proceeds—To purchase Hugh H.
Eby Co. and Wirt Co. Underwriters—Hallowell, Sulz¬
June
Co.,
mon
berger & Co., Philadelphia; and Baruch Brothers & Co.,
Inc., New York.
★ Industries, Inc., Bluefield, W. Va.
July 12 (letter of notification) 30,000 shares of
expenses.
Sun
Uranium,
Office
—
706 Newhouse
Underwriter—Mid-Con¬
city.
Inc., Spokane, Wash*
-
14
Bldg., Spokane, Wash.
same
Underwriter—Pennaluna & Co.,
city.
Mortgage Associates, Inc., Philadelphia, Pa.
7 (letter of notification) 20,000 shares of 60-cent
(par $5) and 20,000 shares
of common stock (par 10 cents).
Price—For preferred.,
June
convertible preferred stock
stock (as well
$10 per share; and for common, $2.50 per share. Proceeds
—For construction loans and acquisit.ons.
Underwriters
—Rambo, Close & Kerner Inc., Philadelphia, Pa.;
J. S. Hope & Co., Scranton, Pa.
/ •
as
ment withdrawn.
it National Apex Industries Corp.
(letter of notification) 298,749 shares of common
stock to be offered for subscription bv
stockholders.
June 30
centage of profits
by Kuhn,
Loeb
&
Corp., Salt Lake Cjty, Utah
1,500,000 shares of common stock (par one
cent).
Price—$1 per share.
Proceeds—For payment on
uranium
claim® and for exploration and ofher ™sts.
Underwriter—M. Raymond & Co., Inc., New York. State¬
the common
due from the distribution of "Okla¬
corporation to take
of certain warrants that were attached to $6,000,000
Multi-Minerals
and
May 5 filed
homa." This filing was made by the
distributed
Inc.
(letter of notification) 700,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For mining expenses.
Office — 415 Paulsen
mining
privately
mining
Salt'Lake City, Utah.
Morning
June
stock), and 6,000 outstanding units of "Oklahoma" par¬
ticipation certificates
(each certificate entitling the
holder to receive 1/6,000th of 5/12ths of Magna's per¬
debentures
Carlo Uranium Mines,
tinent Securities, Inc., same
•
Magna Theatre Corp., New York
May 23 filed 122,300 shares of common stock (par five
cents), 6,000 outstanding warrants for the purchase of
of
Moab Brokerage
(letter of notification) 6,000,000 shares of com¬
stock. Price—At par (five cents per share). Pro¬
Bldg.,
operations.
Office—Suite 1003,
Continental Bank Bldg., Salt Lake City, Utah.
Under¬
writer—Havenor-Cayias. Inc., same city.
4
care
common
—
6
ceeds—For
Oil, Inc.
common
Office—716 Newhouse Bldg.,
Underwriter
Co., same city.
(letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price—10 cents per share.
439,800 shares of
mining costs.
City, Utah.
Salt Lake
filed
Proceeds—For
Underwriter—None.
Valley Uranium Co.
ceeds—For
May 23
mon
city.
May 16 (letter of notification) 2,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share). Pro¬
Livingston
16
Office—210 Zions Savings
City, Utah. Underwriter—
Salt Lake
—
Monte
Lutah Uranium &
15,000,000 shares
(one cent
Building,
Potter Investment Co., same
Oil Co., Tulsa, Okla. (8/1-5)
""""""
742,000 shares of common stock (par 10
cents). Price—$2.75 per share. Proceeds—For purchase
of properties and working capital. Underwriter — Van
•
Inc.
it Moab Queen Uranium Corp., Reno. Nev.
June 28 (letter of notification) 950,000 shares of common
stock (par 10 cents). Price—30 cents per share. Proceeds
For mining expenses. Office — 206 No. Virginia St.,
Inc., Casper, Wyo.
May 25 filed 5,000,000 shares of common stock (par 10
cents). Price—15 cents per share. Proceeds—To pur¬
chase machinery and equipment; for drilling and recon¬
naissance surveys; for acquisition of additional proper¬
ties; and for working capital and other purposes. Under¬
writer—Peters, Writer & Christensen, Inc., Denver, Colo.
Statement effective July 11.
June
King,
Alabama
dress.
Uranium
Address—P. O. Box 301, Mount
Underwriter,—Standard Securities Corp.,
ceeds—For mining expenses.
it Life Insurance Co. of Mississippi
July 7 (letter of notification) 150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—for capital
and surplus. Address—P. O. Box
1172, Jackson, Miss.
Underwriter—Luther Martin Honeycutt, Jr., same ad¬
Star
Co., Inc., Mount Vernon, Wash.
April 4 (letter of notification) 10,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share). Pro¬
Moab
Little
stockholders of
1-for-l1/^ basis. Underwriter—None.
Spokane, Wash.
Alstyne, Noel & Co., New York.
ceeds—For
May 12
Co.
on a
mining expenses.
Vernon, Wash.
—
Corp., Salt Lake City, Utah
(letter^ of notification)
capital stock.
—For
6,000,000 shares of capital
Insurance
Osgood Co.
Mitchell Mining
(non-voting) com¬
mon stock (par $1').
Price—$3 per share. Proceeds—To
increase capital and surplus.
Office—Gadsden, Ala. Un¬
derwriter
None, sales to be handled by Burlus Ran¬
dolph Winstead, Secretary and Treasurer of the com¬
•
Horton Aircraft Corp., Las
of
Accident
DA-for-l basis;
a
May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
(five cents per share). Proceeds—
For mining expenses. Office — 124^ South Main St.,
Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
and
on
basis; and 548 shares of class B common
The
Price—At par
Life
Products & Chemical Corp.
13,453 shares to common stockholders of Newport Steel
Corp. on a l-for-2.1 basis; 10,899 shares to common
stockholders of Marion Power Shovel Co. on a lMz-for-l
pany.
Production Co., Tulsa,
debentures
construction
nessee
June 2 filed 750,000 shares of class B
Okla.
May 12 filed 60,000 shares of capital stock (par $5) and
company
Price—To
Uranium Co.
(letter of notification)
stock.
York
it Holly Sugar Corp., Colorado Springs, Colo.
June 29 (letter of notification) 2,400 shares of common
stock to be offered to employees. Price—$19 per share.
Proceeds—For working capital. Underwriter—None.
1,000
June 8
Underwriter—Benjamin & Co., Houston, Texas.
Hawk Lake Uranium Corp.
April 12 filed 200,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For mining
the/Murchi-
of Texas.
LeBlanc Medicine Co., Inc., Lafayette, La.
April 6 filed 1,000,000 shares of common stock (par 10
cents).
Price—$1 per share. Proceeds—For purchase
of land, plant, warehouse, office building and equip¬
ment; and additional working capital. Business—Proc¬
essing, packaging and merchandising of new proprietory
medicine, KARY-ON. Underwriter—None.
it Hardy-Griffin Engineering Corp., Houston, Texas
July 8 (letter of notification) 240,000 shares of common
capital.
interests
scher, Pierce & Co., Dallas, Texas.
*
*
for the account of the com¬
Underwriters—Allen & Co., New York; and Rau-
leases.
it Hamilton Funds, Inc., Denver, Colo.
July 11 filed (by amendment) an additional $1,500,000
series H-C7, $1,500,000 of series H-DA, and $20,000,000
of face amount of Hamilton Funds periodic investment
V
financial
V.
York
stock (par
$12.50) to be offered in exchange as follows: 102,250.
shares to class A stockholders |of Devoe & Raynolds &
Co., Inc. on basis of 1% shares for each Devoe share;
6,621 shares to class B common stockholders of Devoe
on 1%-for-l basis; 127,623 shares to common stockhold¬
ers of New York Shipbuilding Corp. on a share-for-share
basis; 53,324 shares to common stockholders of Ten¬
supplied by amendment. Proceeds—To retire out¬
standing bank loans and for exploration of oil and gas
Utah.
certificates.
are
Business—Production and sale
Israel; also plans to grow sub¬
Underwriter—None.
Merritt-Chapman & Scott Corp., New
June 28 filed
314,718 shares of common
be
Walter Sondrup & Co., both of Salt Lake
and
100,000 shares
son-Richardson
(par 10 cents).
Price—25 cents per share.
Proceeds—For mining operations.
Office—139 N. Vir¬
stock
mon
tropical fruits.
Colo. Underwriter—None.
and 100,000 shares for the account of
pany
1,200,000 shares of com¬
(letter of notification)
eral corporate purposes.
Kirby Oil & Gas Co., Houston, Texas
(7/28)
July 8 filed 200,000 shares of common stock (par $1),
—None.
Philadelphia, Pa.
Abstracts, Inc.,
(lptfer of
of citrus fruits in State of
it Kingdom Uranium & Mining Co., Denver, Colo. July 8 (letter of notification) 250,000 shares of common
stock (par five cents). Price—$1 per share. Proceeds—
For expenses incident to mining operations. Office—611
Colo. Underwriter—None.
Great Yellowstone Uranium
Corp., Reno, Nev.
Denver, Colo.
June 30
June 29
Uranium
share for each
new
notification) 300,0U0 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds '
—For working capital, etc. Office—825 Western Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
Bliedung, Washington, D. C.
Mehadrin Plantations, Inc., New York
April 28 filed 70,000 shares of common stock (par $10).
Price—$10.75 per share. Proceeds—For acquisition ol
additional groves and working capital and other gen¬
15
June
Plantations,
May 12 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Office—206 N. Virginia St., Reno,
Nev. Underwriter—Whitney, Cranmer & Schulder, Inc.,
holders of record June
one
15; rights to
Aug.
Medical
Pecan
Ltd.
Feb. 28 filed 24,900 shares of ordinary common stock
(par one Israeli pound). Price—$10 per share. Proceeds
—For capital expenditures. Underwriter—None. Offices
—Natanya, Israel, and New York, N. Y.
Israel
option plan.
for each
Boston, Mass.
800,000 shares of bene¬
of
rate
about
For investment.
N. J.
July 11 filled 117,748 shares of common stock (par $5) to
be offered under company's employees' restricted stock
(par $1)
(by amendment)
(8/5)
Inc., Miami, Fla.
2Vo shares held
expire Aug. 22. Price—To be
supplied by amendment. Proceeds — To pay purchase
money notes issued in connection with property acquisi¬
tions; to pay bank loans; and to. exercise an option to
purchase the Lake plant property. Business—Production
and sale of concrete aggregates,
concrete blocks and
ready-mix concretes.
Underwriter j- Merrill Lynch
Pierce, Fenner & Beane, New York. \
the
at
ficial interest in/the Trust. Price—At'market. Proceeds—
it Grand Union Co., East Patterson,
stock
it MauJe Industries,
July 15 filed 638,532 shares of common stock (par $1),
be offered for subscription by common stockholders
to
activities. Office — Kansas City, Mo.
Ripley & Co. Inc., New York;
Brothers & Co., Kansas City, Mo.
July 15 filed
Co.,
&
garten
Proceeds—To reduce
Underwriters—HallNew York; and McCormick & Co. and
& McDowell, both of Chicago, 111.
supplied by amendment.
- Office—Chicago,
111.
loans.
Straus, Blosser
it Investment Trust of Boston,
writer—Dillon, Read & Co., Inc., New York.
Great Eastern Mutual
Stern
be
bank
with its financing
held; rights to expire on Aug. 8. Price—$50 per share.
Proceeds—For expansion and working capital.
Under¬
June 23
—To
Underwriters—Harriman
shares
the basis of one new share for each 10
$1,000,000 of convertible sinking fund con¬
vertible subordinated debentures due July 1, 1970. Price
selling stockholders. Business—Automobile sales
financing, direct lending to consumers on automobiles
and other personal property and the writing of credit
life and accident and health insurance in connection
Goodyear Tire & Rubber Co., Akron, Ohio (7/22)
28 filed 913,531 shares of common stock (par $5)
be offered for subscription by stockholders of record
& Co.; and
Inc. (7/22)
Maremont Automotive Products,
certain
June
Co.; Brown Brothers Harriman
June 30 filed
(7/28)
Securities
Interstate
&
United Artists Theatre Circuit, Inc.
July 7 filed 333,848 shares of common stock (par $5).
Price—To
be supplied
by amendment.
Proceeds—To
Co., Lexington, Ky.
on
Rhoades
ing capital. Office — Amaheim, Calif. Underwriters —
Dempsey-Tegeler & Co., St. Louis, Mo.; Cruttenden &
Co., Chicago, 111.; and Fairman & Co., Los Angeles, Calif.
York.
June
July 21
(7/22)
Corp. on a share-for-share
Aug. 5. Price—$2 per share.
machinery and equipment; and for work¬
Proceeds—For
their stock; Kuhn,
they intend to dispose of
Co.; United California Tneaues, Inc.; Harrib,
Upham & Co.; Prudential Theatres, Inc.; Carl M. Loeb,
Loeb
Engineering
Interstate
that
mean
Dallas,
basis from about July 22 to
plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
& Bond
Adjusteze Corp.
Interstate
of
stock (par $1).
shares of common
price—$5 per share. Proceeds—For
ler & Co., New
Co.,
Jpne 23 filed 345,534 shares of common stock (par $1)
to be offered for subscription by common stockholders
Inc.
15 filed 300,000
effecting, includes the following owners of Magna Thea¬
tre stock and/or warrants, but it does not necessarily
Texas.
ton, D. C.
Dec.
Tex.
stock (no par;.
Underwriter—Franklin Securities
holders.
given to those peo¬
ple who were able to locate buyers for these debentures.
The registration statement, which the company is now
Proceeds—To 12 selling stock¬
Price—$5.75 per share.
i
Washing¬
O'Connor and Associates,
Underwriter—T. J.
Fidelity Insurance Co., Dallas,
International
Inc., Alexandria, Va.
(letter of notification) 260,000 shares of com¬
mon
stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For purchase of factory and working capital.
Office—1710 Mount Vernon Avenue, Alexandria, Va.
to
Thursday, July 21,
Co. and finders' warrants that were
($10 per share). Proceeds—For
Underwriter—None.
par
construction of building.
March 15
•
...
(302)
38
-
Price—At par (50
ing
capital.
cents per share). Proceeds—For
Office—706
work¬
Citizens Bldg., Cleveland,
O.
Volume 182
Number 5448
The Commercial and Financial Chronicle
...
(303),
Underwriter—None.
Company
the National Bronze
& Aluminum
formerly known as
Pictograph Mining & Uranium Co., Inc. (8/8);
Foundry Co.
.lev J line 15 filed 2,400,000 shares of common stock
(par one
was
.
if National Mortgage Corp.
July 13 (letter of notification)
common
For
stock. Price—At par
14,900 shares.of class B
($10 per share). Proceeds—
woiking capital. Office—50 Elk Ave., New Rochelle,
N. Y. UnderwTiter—None.
if National Shoes, Inc. (7/29)
July 15 (letter of notification) 42,800 shares of common
(par $1). Price—$7 per share. Proceeds—For work¬
ing capital. Office—595 Gerard Ave., Bronx, New York
stock
City.
Underwriter—C.
E.
Price—25
cent).
Unterberg, Towbin Co., New
York.
fied.
Office—Edgemont, S. D.
•
Pioneer
Ave., Piovo, Utah. Underwriter
Salt Lake City, Utah.
—
Lindquist Securities,
Norlkport Water Works Co.
June 23 (letter of notification)
4,438 shares of common
stock (no par) to be offered for
subscription by stock¬
holders
the
on
basis
of
one
share
for
each
3V2
York, N. Y.
Oasis
Underwriter—None.
(par
50 cents).
Price—$1 per share. Proceeds—
For uranium and oil
exploration. Office—Fortune Arms
Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah,
Ocean
Drilling & Exploration Co.
June ,23 filed 225,666 shares of common stock
(par $1)
being offered for subscription by common stockholders
of record July 13 on the basis of two new share for each
nine shares held; rights to
expire on July 28. Murphy
Corp., which owns 530,450 shares (52%) of the 1,015,500
v
common
shares
outstanding, intends to exercise rights to
purchase at least 104,230 of the 117,877 shares to which
Price—$8 per share. Proceeds—For equip¬
ment, to acquire oil and gas interests, exploration and
it is entitled.
possibly drilling costs; and to pay qil or a portion of a
$705,000 mortgage note. Office—New Orleans, La. Un¬
derwrites
Morgan Stanley & Co. (New York) and
—
ReinboJdt & Gardner
(St. Louis, Mo.)
en
best-efforts
a
basis.
Old
June
Republic Insurance Co.
10
filed
100,000 shares of common stock (par $5)
being offered for subscription by stockholders of record
June 30 on the basis of one new share for each share
held; rights to expire
Proceeds—To
ume.
Aug. 8.
on
diversify
share.
per
increase
and
its premium vol¬
Underwriter—The First
Cilice—Greensburg, Pa.
Boston
Price—$21
Corp., New York.
Pacific Far East
Line, Inc.
(8/2)
for
account
of
the
and
company
60.000 shares
for
account of the
Chicago Corp. Price—To be supplied by
Proceeds—To retire a small issue of
junior
preferred stock and for fleet replacement
program.
Of¬
fice— San
Francisco, Calif. Underwriter—A. G. Becker
& Co. Inc.,
Chicago, 111.
amenornent.
Pacific
June
Uranium
&
Oil
(letter of notification)
3,000,000 shares of com¬
(par two cents). Price—10 cents per share.
Proceeds
For mining
—
Co.,
same
Office
expenses.
Bldg., Denver,
Colo.
Statement effective July 14.
Powder River Pipeline, Inc.,
Billings, Mont.
May 31 (letter of notification) $300,000 of 5%% 10-year
debentures.
Price—At par (in denominations of $1,000
each). Proceeds—For expenses incident to oil and gas
activities.
Neb.
—
Underwriter—Amos C.
811
Boston
Sudler
Billings, Mont.
Office
San
Francisco, Calif.
Underwriter — General
Investing Corp., New York. Statement to be amended.
if Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per share).
Proceeds—For
swimming pool, club furnishings and equipment, golf
course and organization and develoment
expense. Office
—Bowie, Md. Underwriter—L. L. Hubble & Co., Inc.,
Baltimore, Md.
Prudential
June 29
common
stock
ceeds—For
(par $1).
Price—$9.50 per share.
capital.
Office—Castor and
&
city.
Pro¬
working
sington
Avenues, Philadelphia, Pa.'
Auchincloss, Parker & Redpath and
both of Philadelphia, Pa.
Ken¬
Underwriters
Boenning
&
if Pyke Manufacturing Co., Salt Lake City, Utah
July 7 (letter of notification) 2,000 shares of 5% cumu¬
lative preferred stock.
Price—At par ($50 per share).
Proceeds—For machinery and equipment and other gen¬
eral corporate purposes. Office—154 West Second
Salt Lake City, Utah. Underwriter—None.
South,
Proceeds
For further
—
development
of
common stock
(par $1).
supplied by amendment. Proceeds — To
selling stockholders. Underwriter
S. D. Fuller & Co.,
Price—To
and
suburban
areas; extension of credit;
and
working capital and
financing of exports to Israel;
Underwriter—None, sales
to
pany officials and
Panama
general
be
corporate purposes.
handled through com¬
employees.
Minerals, Inc., S. A.
New York.
if Quinby & Co. Inc., Rochester, N. Y.
July 19 filed (by amendment) $413,000 of Quinby Plans
common
stock of Eastman Kodak Co.
Rebel
Oil & Uranium Co., Denver, Colo.
(letter of notification) 6,000,000 shares of com¬
mon stock (par one
cent). Price—Five cents per share.
Proceeds—For mining
operations.
Office—636
South
Broadway, Denver, Colo. Underwriter—Lester Gould &
Co., Inc., same city.
May 27
Revere
Realty, Inc., Cincinnati, Ohio
March 8 filed $1,000,000 of 5%% cumulative convertible
debentures due Jan. 1, 1980 and 25,0(10 shares of common
(no par).
Price—Par for debentures and $100
Proceeds
Underwriter—Stanley Cooper Co., Inc.,
—
To purchase real
estate
or
Cincinnati, O.
Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of common
(par five cents). Price—At market (total not to
30 filed
400,000 shares of
Office—Denver, Colo.
common stock
(par $1).
Proceeds—For mining expenses.
Underwriter—None.
Pelican Uranium
Corp., Salt Lake City, Utah
May 25 (letter of notification) 300,000 shares of common
stock
(par five cents).
Price—10 cents
per
share.
Pro¬
ceeds—For
mining expenses. Office —688 East 21st
Lake City, Utah.
Underwriter
TransBrokerage Co., New Orleans, La., and Salt
City, Utah.
South,
Salt
—
Western
Lake
exceed
$150,000).
—Whitney & Co.,
St.
Regis
Proceeds—For working capital. Office
same
Permian Basin Uranium
Corp.
Paper Co.,
offered
in
Uranium
Corp.
June 23 (letter of notification) 89,850 shares of common
stock (par one cent), represented by options issued to
underwriters.
Price—50 cents per share.
Proceeds—To
selling stockholder. Office — Fidelity Bldg., Oklahoma
City, Okla.
Underwriter — E. W. Whitney, Wewoka,
Okla.; and through company.
stock.
For
Sanitary Products Corp., Chicago, III.
(letter of notification) 15,000 shares of common
stock (par $1).
Price—At market (estimated at $1.62%
to
$2 per share).
Proceeds—To selling stockholder.
June 27
Petrolarte Gas Service, Inc.
June 24 filed 61,302 shares of common stock
(par $2)
Price—To be supplied by amendment.
Proceeds
For
working capital. Office—Signal Hill, Calif. Underwrit¬
ers—Bateman, Eichler & Co., First California Co., Inc.
Chicago, 111.
Co., Chicago, 111.
dence
—
,
—
R.
Staats &
Co., all of Los Angeles. Calif.
oc
Underwriter—
Santa
Fe Uranium & Oil Co., Inc.
(letter of notification) 2,959,500 shares of com¬
stock (par one cent). Price — 10 cents per share.
May 26
mon
Proceeds—For
mining operations.
Office—416 Indepen¬
Bldg., Colorado Springs, Colo.
lumbia Securities Co., Denver, Colo.
Underwriter—Co¬
Savoy Oil Co., Inc., Tulsa, Okla.
July 8 (letter of notification) 20,000 shares of common
stock (par 25 cents) to be offered for subscription by
stockholders
a
l-for-13 basis.
Price—$7 per share.
exploration, development and acquisition
Office—417 McBurney Bldg., Tulsa, Okla.
on
ir Pkcenix Products Co., Inc., Milwaukee. Wis.
July 11 (letter of notification) 1,000 shares of common
stock.. Price—At par ($100 per share).
Proceeds—For
Proceeds—For
expansion of facilities and
if Scudder Fund of Canada, Ltd.
^ July 14 filed 250,000 additional shares of common stock
(par $1). I>rice — At to be supplied by amendment.
.
equipment.
Office—4715
Underwriter—None.
procurement
N.
27th
St.,
of labor
saving
Milwaukee,
,
Price—At
par (10 cents per share).
Proceeds—•
incident to mining operations.
Office—
expenses
406 V2 West Cedar
Silvaire
17
St., Rawlins, Wyo. Underwriter—None.
Aircraft &
Uranium
Co.
(letter of notification) 3,000,000 shares of com¬
(par one cent). Price —10 cents per sharp).
stock
Proceeds—For
Colo.
mining operations. Office—Fort
Collins,
Underwriter—Carroll, Kirchner & Jaquith, Inc.,
Denver, Colo.
if Silver Gull, Inc., Mattapoisett, Mass.
July 11 (letter of notification) 250 shares of 6%
lative
Wis.
preferred stock.
Proceeds
of. properties.
^
cumu-
Price—At par
($100 per share).
Office — Neds Point
For working capital.
Mattapoisett, Mass. Underwriter—None.
Road,
—
if Smith-Dieterich Corp.
>
July 12 (letter of notification) 8,677 shares of capital
stock
(par $2.50) to be offered for subscription by
held.
on
basis of
Price—$5.50
tional
share for each 10 shares
one new
share. Proceeds—To obtain addi¬
per
to repay certain loans; and working
Business—Photographic equipment. Office—50
patents;
capital.
Church St., New York. Underwriter—None.
Sonoma Quicksilver Mines, Inc.
April 27 filed 800,000 shares of capital stock (par 10
cents), of which 80,000 shares are to be initially offered
to public. Price—To be fixed on the basis of the market
value at the time of their first sale or $1 per share,
which
ever
lower.
is
Purpose
and invest in other quicksilver
capital.
ing
—
To
increase facilities
properties; and for work¬
Office—San
R.
Francisco, Calif. Underwriter
Whittall, Ltd., Vancouver, B. C., Canada.
if Southeastern Telephone Co., Tallahassee, Fla.
(8/4)
July 15 filed 50,000 shares of common stock (par $10).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for construction program. Under¬
writer—Scott, Horner & Mason, Inc., Lynchburg, Va.
.
.
Southern Colorado
Power Co.
(7/27)
June 27 filed 20,000 shares of 4.72% cumulative pre¬
ferred stock (par $50). Price—To be supplied by amend¬
ment.
Proceeds—For
writer—Stone
payment
& Webster
of
bank
Securities
loans.
Under¬
Corp., Paine,. Web¬
ber, Jackson & Curtis, and six other firms.
if Springfield Downtown Parking, Inc.
June 30 (letter of notification) 10,000 shares of common
stock.
Price—At par
($10 per share).
Proceeds—For
working capital, etc. Office—1020 Illinois Bldg., Spring¬
field, 111. Underwriter—None.
Stancan Uranium Corp., Toronto, Canada
April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Price—To be
supplied by amendment. Proceeds—For exploration and
development expenses and for general corporate pur¬
poses.
Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc., both
Strevell-Paterson
U nderwriter—None.
of New York.
Finance
Co.
June 16 (letter of notification) 352,000 shares of common
stock (par 50 cents) to be offered for subscription by
stockholders
to
at
70
cents
per
share; unsubscribed shares
Proceeds—
be publicly offered at $85 per 100 shares.
For
working capital.
Office—76 West
Sixth
South
St.,
Salt Lake City, Utah. Underwriter—Harrison S. Brothers
& Co., same city.
if Stuart-Hall Co., Inc., Kansas City, Mo.
June 30 (letter of notification) 17,500 shares of common
(par $1). Price—$8.25 per share. Proceeds—For
new machinery and equipment; and for working capital.
Office—3710 Main St., Kansas City, Mo. Underwriter—
stock
None.
Sun
Hotel, Inc., Las Vegas, Nev.
filed
(as amended) 3,750,000 shares of com¬
(par one cent). Price—$2.50 per share. Pro¬
ceeds—To construct hotel and for working capital. Un¬
Feb.
mon
Cruttenden
Price—At
William
New York
(par $5) to
exchange for common stock of General
Container Corp. on basis of 2% shares of St. Regis for
one General
share. Offer is conditioned upon St. Regis
obtaining 80% of outstanding General stock. Underwriter
be
(letter of notification) 640,000 shares of common
par (10 cents per share).
Proceeds—
For mining costs.
Office—613 Simms Building, Albu¬
querque,
N. Mex.
Underwriter
Western
Securities
Corp., Salt Lake City, Utah.
and
No general offer planned.
Office—10 So. LaSalle St.,
June 2
stock.
city.
June 28 filed 329,327 shares of common stock
San Juan
Price—$1.25 per share.
Co., St. Louis, Mo.
per
share for stock.
Interest therein.
—None.
(Republic of
Panama)
June
Tulsa,
Exploration Co.,
if Sierra Madre Uranium Corp., Rawlins, Wyo.
July 8 (letter of notification) 2,995,000 shares of common
be
—
development of
urban
&
(8/1-5)
Underwriter—Dempsey-Tegeler
&
—Walker Bank Bldg., Salt Lake City, Utah. Underwriter
(par $25)
$2,000,000 of five-year 5% notes, series 1955. Price
—Of stock, $28 per
share; and of notes, at 100% of prin¬
industry;
Development
Okla.
June 27 filed 2,000,000 shares of common stock
(par 10
cents). Price—To be supplied by amendment. Proceeds
—For geological and
geophysical surveys and for drilling
of
exploratory wells.
—Norman
Pyramid Electric Co.
May 3 filed 50,000 shares of
and
amount.
Siboney
—
Co.,
stock
Israel
Lehman
Colo.
ver,
stockholders*
Industries, Inc., Philadelphia, Pa.
(letter of notification) 31,500 shares of class A
Palestine Economic
Corp., New York
July 1 filed 50,000 shares of common stock
cipal
—
Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
stock
(par one cent). Price—25 cents per share.
Proceeds—For mining expenses. Office — 6 Kirby St;,
Moab, Utah. Underwriter—Skyline Securities Inc., Den¬
mon
May 24 filed 1,400,000 shares of common stock (par one
cent). Price—50 cents per share. Proceeds—For acquisi¬
tion of mining equipment and other
mining expenses.
Underwriter
mon
June
Primary Minerals Corp.
investment.
June 20
Underwriter—The First Trust Co. of Lincoln,
Office—Fratt Bldg.,
stock
Corp.
6
stock
mon
Proceeds—For working capital and
Office—Houston. Tex. Un¬
for accumulation of
'
July 12 filed 80,000 shares of cumulative convertible
.preferred stock (par $25) and 160,000 shares of common
stock (par $5).
Of the latter, 100.000 share are to be
sold
speculation."
a
general corporate purposes
—"For
Brothers, New York."
—
Oil
Corp., Fort Worth, Texas
(letter of notification) 265,000 shares of common
June 8
stock
Uranium &
Office—
Proceeds
•
common stock (par $1)
warrants, attached entitling the holder to purchase
one additional share at prices ranging from
$13 to $20
depending upon the exercise date. Price—$10 per share
held
and accounts payable and for new construction.
50 Church St., New
Underwriters—Shaiman
with
shares
(with an oversubscription privilege). Price—To be
supplied by amendment. Proceeds—To repay bank loans
ex¬
April 27 filed 300,UUU shares of
derwriter—None.
cent). Price—Five cents per share. Pro¬
ceeds—Fcr mining expenses. Office—156 No.
University
Proceeds—For
Mortgage & Development Corp.
stock
one
share.
& Co., Denver, Colo.; and J. H. Lederer Co. and McGrath
Securities Corp., both of New York City.
"as
(par
per
ploration and mining operations and for purchase of
equipment and additional claims or leases when justi¬
if Navajo Cliffs Uranium Corp., Frovo, Utah
July 6 (letter of notification) 6,000,000 shares of common
4
cents
39
16
stock
derwriters—Golden-Dersch
&
Co., Inc., New York; and
Las Vegas, Nev.
Coombs & Co. of Las Vegas, Inc.,
Ring Corp., Brownwood, Tex.
(letter of notification) 575,000 shares of common
Super-Seal Piston
June 3
Proceeds
capital.
Office—1812
Texas.
Underwriter-
stock (par 10 cents). Price—50 cents per share.
—For
machinery
Belle
Plain
Great
Southwest
Ave.,
and
working
Brownwood,
Securities
Co.
Tasha Oil & Uranium
Co., Denver, Colo.
May 11 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—1890 S. Pearl
St., Denver, Colo. Underwriter — Carroll, Kirchner &
Jaquith, Inc., same city.
TelAutograph Corp.,
Los Angeles, Calif.
(7/27)
filed $2,396,500 of convertible subordinated de¬
bentures due July 15, 1965, to be offered for subscription
July 1
by
common
Stockholders of record July 27, 1955 on the
each 50 shares Of stock
basis of $500 of debentures for
Continued,
on page
40
'
..Thursday, July
21, 195
related expenses.
Financial Chronicle
The Commercial and
40
Under¬
.
(304)
Continued
from page 39
City, Utah. Underwriter
Seattle, Wash.
.
Aug. 15. Price—To be supplied
—
Northern Securities, Inc.,
stock of Nuclear
it U-Mont Mining, Inc.
(letter of notification) 2,000 shares of common
stock
(par $10) and $80,000 5% debenture notes due
Dec. 1, 1959.
Price—At par. Proceeds—For mining ex¬
ent
penses.
held; rights to expire on
by amendment. Proceeds—To retire outstanding loans
from Commercial Credit Corp.; to purchase additional
Consultants, Inc.; for expansion of pres¬
merchandising activities; and for general corporate
•
Electronics Corp.
Tel-Instrument
notification) 199,999 shares of common
June 28 (letter of
1 filed
stock (par 10 cents).
and
Tor
den
York, N. Y.
Tennessee
June
Life &
Service Insurance Society
9,200 shares of common
(letter of notification)
20
to he offered for subscription by stock¬
Price—$30 per share.
Proceeds—To increase
(par $5)
stock
holders.
expansion. Office — 1409
Magnolia Ave., Knoxville, Tenn. Underwriter—None.
capital
working
for
agency
yr Texas Toy Co., Houston, Texas
July 8 (letter of notification) 300,000
shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For payment of accounts payable of operating company;
expansion and working capital. Office—2514 McKinney
Ave., Houston, Texas. Underwriter—Ray Johnson & Co.,
Houston.
Inc.,
Western
Texas
Oil & Uranium Co.,
Denver, Colo.
5,960,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses. Office — 407 Denver
National Bldg., Denver, Colo. Underwriter—Floyd Ros¬
June
(letter of notification)
15
ier &
Co., same address.
Texokan Oil
& Mining Co.
(letter of notification) 300,000 shares of common
.stock (par one cent).
Price—$1 per share. Proceeds—
For oil and mining activities.
Office — Liberty Bank
July 1
Bldg., Oklahoma City, Okla.
& Co., Inc., same city.
Underwriter—M. A. Collier
-
^Thermo Ray Corp.
(letter of notificattion) 49,900 shares of common
stock
(par 10 cents). Price—$1 per share. Proceeds—
For working capital. Office—South Buchout St., Irvington-on-Hudson, N. Y. Underwriter—None.
July 11
o
Thomas
Industries, Inc.
property, construction of hotel, athletic and health facil¬
ities, and working capital. Underwriter—None, hut sales
will be made through agents. Statement withdrawn.
it United American Investment Co., Atlanta, Ga.
19 filed 3,500,000 shares of common stoick no par.
Price—$2 per share. Proceeds—For organization of two
July
wholly-owned insurance compaies, to be named United
American Life Insurance Co. and Tourists Indemnity Co.;
balance to be used to engage in mortgage loan business
stock (par
to be offered for account
$1), of which 75,000 shares are
of the company and up to 65,000 shares for account of
seling stockholders. Price—To be supplied by amend¬
ment.
Proceds—For
expansion program and general
24
(letter of notification) 4,470 shares of common,
stock (par $1). Price—$11 at market (estimated at $11
per share). Proceeds—To Harry I. Thompson, President.
Office—1733 Cordova St, Los Angeles, Calif.
Under¬
writer—Shearson, Hammill & Co., New York, N. Y.; and
First California Co., Inc., San Francisco, Calif.
Thunderbird
New
Uranium
Corp., Albuquerque,
June 9
(letter of notification) 3,000,000 shares of common
stock.
Price—At
Universal Service Corp., Inc.,
15
Washington
Edenfield
<*
&
St., Tucson, Ariz.
Co., Miami, Fla.
Trans-National
July
Uranium
&
Underwriter—Frank
Oil
Corp.
(8/15)
2,000,000 shares of common stock (par 20
Price—To be supplied by amendment (expected
filed
1
cents).
at $1.50 per
share). Proceeds—To acquire part of prop¬
erties presently subject to option in favor of company,
and for expenses incident to mining and oil activies.
Office
Dallas, Tex. Underwriter — Garrett Brothers,
Inc., Dallas, Tex.
—
Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
stock.
Price—At par (50 cents per share).
Proceeds—
For mining operations.
Office
Lake
City, Utah. Underwriter
Washington, D. C.
—
—
506 Judge Bldg., Salt
Lewellen-Bybee Co.,
Tungsten Mountain Mining Co., Fallon, Nev.
(letter of notification) 149,800 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
mining operations. Address — P. O. Box 456, Fallon,
Churchill County, Nev. Underwriter—H. P. Pratt & Co.,
Seattle, Wash.
.
Two Jay
Uranium Co., Salt Lake City, Utah
May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Proceeds—For
mining expenses.
Office—32 Exchange
Place, Salt Lake City, Utah. Underwriter — Western
States Investment Co., Tulsa, Okla.
Ucon
mon
other
Uranium Corp., Salt Lake City, Utah
(letter of notification) 5,000,000 shares of com¬
stock (par one cent).
Price—Five cents per share.
2
St., Reno, Nev.
Underwriter—None.
and
Office—924 Broadway, Denver,
writer—Israel & Co., New York.
Ltd., Virginia City, Nev.
Grubstake Loans to be offered
in amounts of $25 or multiple thereof.
Proceeds—75%
to be invested in U. S. Savings bonds and the balance
for
equipment
and exploration
and
development e x-
Underwriter—None.
penses.
(no
For mining activities.
Office
—
For
Wicker-Baldwin Uranium
S.
Corp.
(letter of
Fort
notification)
Price—At par
($1
York Oil & Uranium Co.
(par
one
For
—
cent).
mining
same
348, Newcastle,
Corp., Salt Lake
Uranium
the
$11,000,000
$5)
vote
from
1,600,-
300,000
—
American Telephone &
$21,-
Telegraph Co.
April 20 stockholders approved a new issue
exceed $650,000,000 convertible debentures.
of not to
When is¬
receive rights to purchase
to his holdings of stock
the basis of $100 of debentures for each
sued, each stockholder would
the debentures in proportion
(probably on
eight share of stock held). Underwriter—None.
ing—Probably in September or October.
it Vertex Oil & Uranium Co., Inc., Omaha, Neb.
July 1 (letter of notification) 400.000 shares of common
stock (par 25 cents), of which 250,000 shares are to be
offered at 10 cents per share, 50,000 shares at 15 cents
each, 50,000 shares at 20 cents each and 50,000 shares at
25 cents each. Proceeds—For expenses incident to oil and
uranium exploration. Address—P. O. Box 7, Elmwood
Station, Omaha, Neb. Underwriter—None.
Arkansas
Power
&
Light Co.
Offer¬
(10/25)
sell
May 27 it was reported company plans to issue and
about 80,000 shares of cumulative preferred stock (par
June 10
$ 100 ).4-Proceeds—To repay bank loans and for new con¬
struction. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Lehman Brothers; Blyth
& Co., Inc. and Smith, Barney & Co. (jointly); Equitable
Securities Corp. and Union Securities Corp. (jointly);
tal
White,
Wabash Uranium
Corp., Moab, Utah
(letter of notification) 10,000,000 shares of capi¬
Price—At par (three cents per share). Pro¬
ceeds—For mining expenses.
Underwriter—Moab Bro¬
stock.
Proceeds
Judge Bldg., Salt Lake
Proceeds—For construction of a new
000,000 rayon staple fiber plant. Underwriter—Harriman
Ripley & Co. Inc., New York.
Offering—Expected to
make sometime during the latter part of August. Regis¬
tration—To be made shortly with SEC.
Drilling Co., Monticello, Utah
June 20 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining operations.
Underwriter—Skyline Secu¬
rities Inc., Denver, Colo.
For
—
shares.
000
&
interest
Oflice
Securities
Wyo. Underwriter—Empire
City, Utah.
Prospective Offerings
expenses.
U-Kan Uranium & Oil Co., Salt Lake City, Utah
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
expenses.
capi¬
it American Enka Corp.
July 20, John E. Bassill, President, announces that
corporation proposes to raise approximately
through the sale of additional common stock (par
to present common stockholders. Stockholders will
Aug. 9 on increasing the authorized common stock
1,200,000 shares (1,117,650 shares outstanding) to
Schenin &
was
notification) 10,000,000 shares of
Price—At par (two cents per share). Proceeds
and oil activities.
Address—P. O. Box
mining
—For
per
Price
(letter of
tal stock.
10 cents per share.
Underwriter — I. J.
Co., New York. Name Change—The company
formerly known as San Miguel Uranium, Inc.
Proceeds
Mesa, Calif.
120;000 shares of common
(par $1).
June 3
Worth, Texas.
stock
Proceeds—
Price—$2 per share. Proceeds—For ex¬
pansion and working capital. Underwriter—Neary, Purceil & Co., Los Angeles, Calif.
Vanura Uranium, Inc., Salt Lake City, Utah
June 16 (letter of notification) 3,000,000 shares of com¬
mon
of common
Office—616 Sixth St., Rapid City,
Underwriter—Driscoll-Hanson, Inc., same city.
D.
stock
shares of com¬
share). Proceeds—To
manufacture, process, rebulid and market television pic¬
tures tubes, etc.
Underwriter — Zone Investments Co.,
13
stock.
Mining Co.
it Wizard Boats, Inc., Costa
June 30 (letter of notification)
Vactron
mon
Underwriter—J. W.
For mining expenses.
Nev.
LaFortune,
St.,
May 26 (letter of notification) 900,000 shares
stock.
Price—At par (25 cents per share).
(10 cents per share). Proceeds—
expenses.
Office—210 N. Third St., Las
L.
City, Utah
Office—1030 South Sixth
mining expenses.
Salt Lake City, Utah.
Hicks & Co., Inc., Denver, Colo.
West
par
Underwriter—Lester
Inc., Salt Lake
notification) 2,900,000 shares of capital
(oar 2V2 cents). Price—10 cents per share. Pro¬
ceeds—For
1101 South
Colo.
& Co., Inc., Denver,
(letter of
June 9
it Utore Uranium & Diata, Inc., Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of com¬
mon
stock (par one cent).
Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore.
Underwriter—Hansen
Uranium Brokerage, Salt Lake City, Utah.
May
stock (par one cent).
White Horse Uranium,
(letter of notification) 3,000,000 shares of capital
Nev.
and Salo¬
(letter of
Hicks, Newton
Underwriter—None.
mining
Proceeds—For
Kuhn, Loeb &
—
shares of
per share.
Uranium Co., Las Vegas,
—
notification) 6,000,000 shares of com¬
Price—Five cents per share.
Proceeds
For mining activities.
Office — 1051/2 East
Pikes Peak,
Colorado Springs, Colo.
Underwriter —
—
Price—At
Underwriters
Mining, Inc.
Wet Mountain
June 29
Stockton, N. J.
June 28 (letter of notification) 1,000,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds
For equipment, drilling costs, and working
capital. Business—To explore, develop and operate ura¬
nium mining properties. Address—P. O. Box 99, Stock¬
stock.
program.
stock (par
stockholders of
share for each
Aug. 8, 1955.
Co.; Lehman Brothers; Clark, Dodge & Co.;
Bros. & Hutzler, all of New York City.
USeven Corp.,
Southern
Telegraph Co. (7/25)
shares of common
1,041,393
mon
St., Salt Lake City, Utah.
Underwriter—Anderson-Hackett Investment Co., same city.
Utah
Union
(par $2).
by amendment
$2.50) to be offered for subscription by
record July 22 on the basis of one new
five shares held; rights to
expire on
Price—To be supplied by amendment.
Salt Lake City, Utah
notification) 30,000,000
Price—One cent
par).
of
(letter
Stamping Co. (7/28)
75,000 shares of common stock
filed
30
June
stock
Uranium Technicians Corp.,
30
8 filed
Western
kerage Co. and National Securities, Inc., 368 South State
Warwick
Hotel
Associates,
June 22 filed $4,250,000
)
in
t
—
Associates
New
Bids—Expected to be received on
it Bangor & Aroostook RR.
July 14 ii, was announced company has applied to the
ICC for exemption from competitive bidding of an issue
of $4,000,000 income debentures. Proceeds — To redeem
York
of participations in partnership
minimum amount of $10,000.
38,280
in
To pay part of
Weld & Co.
Oct. 25.
St., Salt Lake City, Utah.
mining
Colo. Under¬
Western Tool &
•
July
mon
13 filed $600,000 of
June
mining costs. Office—406 Judge Build¬
ing, Salt Lake City, Utah., Underwriter—Empire Secu¬
rities Corp., Las Vegas, Nev.
Proceeds—For
shares of common
share. Proceeds—
development costs and working
exploration
construction
it Uraninite Corp., Reno, Nev.
July 11 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—Expenses
incident to mining operations.
Office—139 N. Virginia
Vas
June 8
June
Houston, Texas
ment, mining costs, oil and gas development, and
corporate purposes. Underwriter—None.
Vegas,
city.
ArTri-State Natural Gas Co., Tucson, Ariz.
July 6 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For expenses incident to oil and gas activities. Office—
Co., Inc.
April 4 (letter of notification) 200,000
stock (par 10 cents). Price—$1.50 per
$11.25
July 8 filed 500,000 shares of common stock (par two
mills).
Price—$2.50 per share.
Proceeds—For equip¬
Denver, Colo.
(10 cents per share).
Nebraska Oil & Uranium
(8/8-12)
Chicago, 111.
June 6
par
Western
mons,
Proceeds—
For mining expenses.
Office—915 Simms Bldg., Albu¬
querque, N. M. Underwriter—Hicks, Newton & Co., Inc.,
L.
Schwanz
•
with other
to be built
Worth. Texas. Underwriter—
& Co., Inc., Aurora, 111. Statement withdrawn.,
—Des
ton, N. J.
Mexico
per
Dallas and Fort
between
State
8
stock (no par).
share.
Proceeds—Together
funds, to construct, furnish and equip hotel
Price—$5
For
shares of common
stock
(par $10). Price—$20 per share. Proceeds—For
mining expenses. Office—316 Central Ave., S. E., Albu¬
querque, N. M. Underwriter—None.
—
July
capital
oi
snares
it Universal Mining & Milling Co.
July 5 (letter of notification) 5,000
Proceeds
F.ber Class Co., Los Angeles,
2UO,UUO
filed
31
Jan.
(probably around
per share). Proceeds—For working capital. Office
Moines, Iowa. Underwriter—Blunt Ellis & Sim¬
stock
I.)
Fort Worth, Texas
Western Hills Inn,
•
Underwriter-
Houston, Tex.
& Co., same city.
Warren Clark
Underwriter—None.
common
H.
Office—427 Lovett Blvd.,
Price—To be supplied
both
Calif.
Walton Plywood
Underwriter—Albert Walter Braedt.
Welch Industries, Inc., Houston, Texas
June 23, letter of notification)) 150,000 shares of common
stock (par 50 cents).
Price—$2 per share. Proceeds—
For erection of plant, machinery and working capital.
capital.
June
Chicago.
stock (par $5,00U).
plywood mill of
it United Cement Co., Inc., Montgomery, Ala.
July 11 (letter of notification) 30,000 shares of common
stock
(par $1).
Price—$10 per share. Proceeds—For
organization and promotion expenses, working capital,
salaries, etc.
Office—Bell Building, Montgomery, Ala.
Office—Fort Atkinson, Wis. Under¬
writers—Kidder, Peabody & Co. and McCormick & Co.,
corporate purposes.
* Thompson (
Underwriter—None.
fields.
related
and
Uranium Properties,
(8/2)
July 11 filed 140,000 shares of class A common
of
$50)
100,000 shares
shares.
Lowell, Wash.
Co., Inc., etc.
of common stock (par $10) to be
in units of three preferred and
10 common
Price—$400 per unit. Proceeds—For purchase of
offered
Price—$1.50 per share. Proceeds—
acquisitions and working capital. Office—728 Gar¬
St., Carlstadt, N. J. Underwriter—Batkin & Co., New
Club, Inc., Hollywood, Calif.
30,000 shares of preferred stock (par
Union
March
Co., Inc.,
of common
13 filed 296 shares
Proceeds—To purchase
Vti, and Moab, Utah. Under¬
Offices—Burlington,
Pa., and
Washington Plywood
June
writer—None.
Underwriter—None.
purposes.
July 11
Hotel, Philadelphia,
writer—None.
shares
of
outstanding $5
cumulative preferred
stock.
purchase price of Warwick
.
i
V
i
'
;
i
Volume 182
Number 5448
The Commercial and Financial Chronicle
...
(305)
Blackhawk Fire & Casualty Insurance Co.
April 5 it was reported company plans to issue and sell
200,000 shares of common stock. Price—Expected at $5
per share. Proceeds—To acquire Blackhawk Mutual In¬
surance
Co., Rockford, 111.
Underwriter — Arthur M.
Krensky & Co., Inc., Chicago, 111.
A Essex County Electric Co.
July 18 it
California Electric Power Co.
-
(8/30)
Co.
Inc.; Blair & Co:iIncorporated; White, Weld
Co.; Blyth & Co., Inc. Bids—Scheduled to be received
Aug. 30.'
Camden Trust
June
29
it
Co.; Camden, N. 4.
announced
&
on
--VV.
offer to: its
Bank
.
Inc., Camden, N. J... Meeting
29 'will vote on approving f inane-'
b
ing and merger With Bank of Oaklyn National
v,
Cavendish
April
it
19
of
sale
Uranium
"
i
.
Mines
announced
was
debenture
a
Proceeds—For
/.
issue
plans
several
issue
million
and
dollars.
concentrating mill, mining equipment
and for underground development. Underwriter—James
Anthony Securities Corp., New York.
Central
Maine Power Co.
Dec.
31, W. F. Wyman, President, stated that company
plans to issue and sell some additional common stock,
par $10 (probably to stockholders) in the latter part of
1955. Proceeds—For construction program. Underwriter
—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr, Inc.
(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.
and Kidder, Peabody & Co. (jointly).
Meeting—Stock¬
holders on May 11 voted to increase the authorized
stock
common
from
fering—Probably in
3,250,000 to
September.
3,500,000 shares.
Of¬
Chicago, Milwaukee, St. Paul & Pacific RR.
July 13 stockholders approved the creation of an issue
of $60,00,000 5% income debentures, series A, to be
offered in
exchange for outstanding preferred stock,
series A, about Aug. 1 on a par for par
basis; offer to
commence early in September.
Commonwealth
Jan. 24, Willis Gale, Chairman, announced it should be
Fall before the company undertakes its next financing.
Proceeds—For
construction, which, it is estimated,
$125,000,0000 in 1955.
Underwriters—
For last equity financing were The First Boston
Corp.
end Glore, Forgan & Co.
will
cost
new
about
Consolidated Edison Co.
June
from
14
it
of New
announced
was
York, Inc.
company
$40,000,000 to $50,000,000 bonds
expects
sell
to
time during
some
the
current year.
Proceeds—For construction program.
Underwriter—To be determined by competitive bidding.
Probable
bidders:
Haisey, Stuart & Co.
Stanley & Co.; The First Boston Corp.
Consolidated
Inc.;
Morgan
Continental Aviation &
13
it
reported
was
Engineering Co.
company
plans
sale
future of $2,000,000 convertible debentures.
—Van Alstyne, Noel & Co., New York.
in
near
Underwriter
April
18,
preferred
other
the
stockholders
approved
creation
of
additional $25,000,000 of debentures or
indebtedness maturing later than one year after
date
an
thereof.
for making
Goldman,
The
Sachs &
has
company
additional
any
Lehman
present plans
Underwriters—
no
borrowings.
Co. and
v
•
a
probable 10-
approximately 4,000,00C
Offering—Probably not until
"latter
Brothers, both of
New York.
Daitch
Foremost Dairies, Inc.
July 11 the directors authorised an issue of
$20,000,000
4V2% subordinated debentures to be first offered in ex¬
change for outstanding $4.50 preferred stock and 4V2%
a
proposal
to
increase
the
authorized common stock
(par $1) from 500,000
shares to 1,000,000 shares to provide for future financing
and expansion. Underwriter—Hirsch & Co., New York.
June 30
it
National
was
Bank,
&
Hutzler, both of New
•
General Minerals Corp.
was reported that
company plans early regis¬
tration or 1,850,000 shares of its common
stock. Price—
May be around $2 per share. Underwriters—Sanders &
Newsom and Rauscher, Pierce &
Co., both of Dallas,
Tex.; and Laird & Co., Wilmington, Del.
July 18 it
Gulf States Utilities Co.
May 16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market conditions
permit.
bidding.
Lehman
Underwriter—To be determined by competitive
Probable bidders: Haisey, Stuart & Co.
Inc.;
Brothers; Merrill Lynch, Pierce, Fenner &
White, Weld & Co. (jointly); Salomon Bros.
&
Hutzler and Union
Loeb
&
Co. and
A.
Securities
announced
that company
plans to offer
to its stockholders the right to subscribe for 50,000 addi¬
tional shares of capital stock (par $10) on the basis of
one
new
share for each four shares held.
Price—$30 per
share. Proceeds—To increase capital and surplus. Meet¬
ing—Stockholders to vote July 28 on approving financ¬
ing and 25% stock dividend.
Detroit Edison Co.
May
stockholders
2
about
$60,000,000
of
approved
convertible
offer of convertible debentures
ers
without
a
proposal
C.
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(joint¬
ly); Stone & Webster Securities Corp.
Hammermill
made to
Previous
stockhold¬
underwriting.
Becker & Co.
(Inc.), Chicago, 111.
* Heifer
(Walter E.)
July 18 it
Feb. 17
Helicopters, Inc.
Donald S. B. Waters, President, announced stock¬
holders voted
to
increase authorized
1,000,000
capital stock from
in anticipation of
shares to 3,000,000 shares
of the company's activities.
Underwriter—
Previous financing handled by Greene &
Co., New York.
expansion
;
Long Island Lighting Co.
'7
April
23
it
issue
of.
V'..
y
'V
\
>
$15,000,000
due
was
announced
company plans to sell
first mortgage bonds, series
Proceeds—For construction
1985.
an
H,,
Under-
program.
writer—To be determined by
competitive bidding. Probable
bidders—Haisey, Stuart & Co. Inc.; The First Baston Corp. and
Blyth & Co., Inc. (jointly); W. C.
June
sell
to
it
20
was
Service
reported
-
-
Lucky Stores, Inc.
~
7
April .20 stockholders approved
a proposal to increase
(par $1.25) from 1,000,000 !
are 804,063 shares out¬
reported previously that the
company
stock
common
shares to 2,000,000 shares
(there
standing).
proposed
It
was
to raise
approximately $1,500,000 through the
However, no immediate financing
one
expire
share
Sept.
For construction
scribed shares
for
26.
each
25
Price—$22
be
sold
stock
Sept. 5
shares
per
issue
on
held;
share.
the
to
basis
rights
to
Proceeds—
Unsub¬
ing
was
pre¬
Bank, Washington, D. C.
announced company, in addition to plac¬
privately an
will offer
issue of $500,000 convertible deben¬
additional convertible debentures to
tures,
of this year.
Washington, D. C.
Office
the
Au¬
726 Jackson Place, N. W.,
Business—Industrial merchant bank¬
—
ers.
International Oil
May 23 it
&
Maine Central RR.
the future.
William
D.
Bost of Whitcomb
Co., New York, is Chairman of the Board.
f
International Resources Fund, Inc.
July 20 it was announced this company will be formed
to
specialize in worldwide investment in the field of
natural resources companies. An
offering of stock is
planned in the Fall of this year. Investment Adviser—
Capital Research & Management Co., Los Angeles, Calif.
Underwriter—Kidder, Peabody & Co., New York.
Probable
March
of
an
30
it
Sulphur Co.
was
reported
(Texas)
early registration is planned
undertermined number of
Sherman
common
shares.
Aluminum
&
Under¬
Co.;
new
Coffin
Majestic Auto Club, Inc.
Aug. 25 it was announced company plans to offer
500,000 shares (par five cents) to the
motorist and general
public
shortly after completion of the current
offering
100,000 shares to service station owners and
of
operator*.'
Office—Room 717, 141 Broadway. New York
6. N. Y.
•
Mountain
Co.
States
Telephone & Telegraph
(10/1)
July 19 directors authorized an offering to stockholders
of 486,881 additional shares of
capital slock on basis of
one
share for each five shares
new
Oct. 28.
At
par
Warrants will
($100
per
share).
be
held; rights to expire
mailed
on
Oct.
Control—American
1.
Price—
Telephone
& Telegraph Co. owns about
86.7% of the presently out¬
standing common stock. Underwriter—None.
April
the
12
(G.
C.)
Co.,
McKeesport, Pa.
stockholders
authorized
approved a proposal
limit of indebtedness from
to
Increase
$3,000,000 to
$20,000,000.
Proceeds—For expansion program.
writer—Merrill Lynch, Pierce, Fenner &
Under¬
New
New
Haven
June 7 it
was
Clock &
Watch
Co.
announced that in connection with its
pro¬
posed plan of recapitalization to be voted upon July
26,
the company plans to raise not less than
$300,000 of new-
capital.
Underwriter—Probably
Reynolds
&
Co.,
New
.
New
Feb.
4
Orleans
it
Public
Service
Inc.
that company plans this
year
mortgage bonds due 1985. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders: Haisey, Stuart & Co.
to
issue
announced
was
first
some
Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston
Corp.;
Equitable Securities Corp. and Union Securities
Corp.
(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.
New
July
sell
York
8
it
State
Electric
announced
was
&
Gas
Corp.
(10/19)
plans to issue
bonds due 1985.
company
$25,000',000 of first mortgage
and
Fro-*
ceeds—To
repay bank loans and for new construction.
Underwriter—To be determined by competitive
bidding.
Haisey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; Hariman Ripley & Co. Inc.; The First
Boston Corp. and
Glore, Forgan & Co. (jointly); Blyth
& Co., Inc. and
Smith, Barney & Co. (jointly); Bids—
Expected to be received on Oct. 19.
New
Jan.
the
of
bidders:
York
17,
Telephone Co.
Keith
company
S.
McHugh, President,
will have to
raise
more
announced
than
that
$100,000,009
new
sion
capital money to aid in carrying out its expan¬
and
improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For
be
determined
by
and bonda,
bidding.
Probable
Haisey, Stuart & Co. Inc.
competitive
bidders: Morgan Stanley & Co.;
Northern Illinois Gas Co.
June 14, Marvin Chandler,
Chemical
plans to spend $60,000,000 on new construction
through 1958, and that about $25,000,000 would be raised
through the sale of bonds in the period. Underwriters—
Corp.
July 11 it was reported that company is understood to
be contemplating the sale to the public of 700,000 shares
of sinking fund nreferred stock this Fall and private
debt
for
bonds may include
Haisey.
Inc.; Kidder, Peabody & Co.; W. C. Langley
& Burr, Inc.; The First Boston
Corp.;
Merrill Lynch,
Pierce, Fenner & Beane; Blyth & Co.,
Inc.; Glore, Forgan & Co.
&
&
Co., New York, and Garrett
& Co., Dallas, Tex.; and others.
Kaiser
bidders
Stuart & Co.
to
Isthmus
14, E. Spencer Miller, President, said
company has
given up the idea of refunding the
$17,000,000 5%%
mortgage and collateral trust bonds due 1978.
first
Probable
& Metals
Corp., Seattle, Wash.
reported company may do some financing
was
time in
Incor- '
^
be common stock, $1 par value); also waiving of
emptive rights to such increased shares.
International
Co.
Feb.
York.
highest bidder.
Hupp Corp.
May 13 stockholders approved a proposal increasing the
authorized capital stock from 3,000,000 to 4,200,000 shares
April 25 it
&
and
(par $15)
Underwriter—None.
program.
to
(9/5)
plans to
common
stockholders of record
new
on
Underwriter—Probably Blair
Beane,
York, handled preferred stock financing in 1942.
Corp.
company
14,817 additional shares of
common
of
Public
financing of about $40,000,000.
Stockholders will
-
Lang^ey :
Co.; -Smith, Barney & Co.; Baxter, Williams & Co. :
Offerings—Expected late in 1955.*
& Co.
reported that the company may^be con¬
sidering some new financing. Underwriter—F. Eberstadt
& Co. Inc., New York.
*
:
&
Murphy
was
writers—L. D.
Doman
announced
>
.
on
Paper Co.
May 10 stockholders approved a proposal on
increasing
the debt authority to
$20,000,000. Underwriter—A. G.
authorizing
debentures.
was
Developments, Inc., Cleveland, Ohio
was
that company plans soon
to "
registration statement with the SEC
covering a'
proposed issue of 600,000 shares of
common stock.
Pro¬
; ceeds—For
general corporate purposes.
Underwriter
v George A.
Searight, New York, will head group.
Corp.
(jointly); Kuhn
Allyn & Co., Inc. (jointly); Lee
*
.
not
York.
:
share.
per
porated, New York.
Bros.
;
a
$4.50
preferred stock of Foremost, along with
preferred stock of Philadelphia Dairy Products
Co., Inc., a subsidiary, this offer to be made
prior to
Sept. 1, 1955. Underwriters—Allen & Co. ad Salomon
~
recently
of
sale of 150,000 shares.
is planned.
some
Denver, Colo.
residents
cumulative
tumn
Crystal Dairies, Inc.
April 28 stockholders approved
to
the authorized
-
shareholders, the latter probably sometime in
Denver
part
1955, if then."
"
(200,000 of such increased shares shall be (new) serial
preferred stock, $50 par value and 1,000,000 shares shall
Continental Can Co., Inc.
not to exceed
Foundation.
of
/
v
public.: Price—Expected
$60 per share, t-Proceeds— To the Ford
be around
Housatonic
Uranium
Mines, Inc.
July 23, 1954, stockholders authorized issuance and sale
of not to exceed $6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co.,
Jersey City, N. J.
*
June
Co., Detroit, Mich.
capital.
Hardware Co., Atlanta, Ga«
Georgia only at $3
Office—517 Stephens St..
S.W., Atlanta, Ga.
Lithium
^
issue and sell
first mortgage
Beane and
Edison Co.
made
,
,
was reported that following
working
was stated that the
company plans at a later
offer additional shares for
sale nationally. An
of 16,666 shares of common stock
was
to
offering
file
\
March 15 it
to
a
-
;
.
Bank.'>«^?rl. stock will be made to the
split an offering of
JT ipew shares
.
Corp.
company
of
'
-Ford Motor
Underwriter—Price & Co.,
—Stockholders:on'juTy
date
bidding. Probable bidders: Haisey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen-;
ner & Beane
(jointly);> Lehman Brothers and Blyth
Co., Inc. (jointlyh Glore. Forgan & Co.: -and The First
Boston Corp.
Offering—Expected late in 1955 or early
plans to
;
stockholders the right'to subscribe for 72,500
additional;r 1956.
shares of capital stock (par $5), with a 13-day standby. J %
was
^8*0,ie Wholesale
it
"
of
Underwriters—To be determined by competitive
bonds.
.
and
program
Underwriters—The First Boston
Corp., New York; and
Co., San Francisco, Calif.
Bank of Arizona
may
expansion
Dean Witter &
July 1 stockholders of record June 29 were offered the
right to subscribe on or before July 29 for 160,000 shares
of capital stock (par $10) at the rate of one new
share
for each three shares held,
Price—$30 per share. Pro¬
ceeds—To. increase capital and surplus.
^ :
„
approving an increase in the authorized
from 700,000 to 1,500,000 shares.
Pro¬
on
stock
ceeds—For
Jan. 27
First National
July 7 it was announced company plans to issue and sell
<
-Florida Power Corp.
$6,000,000 of first mortgage bonds. Proceeds—For re- V
duetion of bank loans. Underwriter—To be determined ; April 14 it was announced company
between $10,000,000 and $12,000,000
by competitive bidding. Probable bidders: Haisey, Stuart :
&
Aug. 12
preferred
be determined by competitive
bidding. Probable bidders:
Haisey, Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated. Offering—Expected this Fall.
Bliss
(E. W.) Co.
April 26 stockholders increased the authorized common
stock (par $1) from 1,000,000 shares to 1,500,000 shares.
Underwriter—Previous financing was handled by Allen
& Co., New York.
-
vote
reported company plans to issue and sell
first mortgage bonds. Underwriter—To
was
additional
some
41
President, announced that the
company
The
First Boston Corp.,
Haisey, Stuart & Co. Inc. and
Glore, Forgan & Co.
Continued
on
page
42
The Commercial and Financial Chronicle..; Thursday,
42
July 21, 1955 ''
(306)
Continued
< *
March 29 it was announced that new capital require¬
ments for 1955 will approximate $31,000,000.
Present
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint¬
ly); Smith, Barney & Co.; Lehman Brothers and Riter
Northern States Power
Co. (Minn.)
(jointly); Glore, Forgan & Co.
& Co.
,
Ltd., Alberta, Can.
March 4 company plans to issue and sell publicly deben¬
tures and common stock to finance its proposed chemical
project. Underwriter—Eastman, Dillon & Co., New York.
Nitro-Chemicals,
Northwest
is planned, following
proposed merger into company of Olympic Radio &
Television, Inc., and Victoreen Instrument Co., to issue
June 28,
sell
and
it was announced that it
$2,500,000
Underwriters—Van
debentures.
of
Alstyne, Noel & Co. and Barrett Herrick & Co., Inc.,
both of New York. Meeting — Stockholders to vote on
merger
in August, 1955.
Ohio Power Co.
(9/20)
June 20 it was reported company
plans to issue and
sell
stock (par $100).
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb
& Co.; Harriman Ripley & Co., Inc. and Stone & Web¬
ster Securities Corp. (jointly); The First Boston Corp.;
Union Securities Corp. and Salomon Bros. & Hutzler
(jointly).
Registration—Planned for Aug. 17. Bids—
Expected to be received up to 11 a.m. (EDT) on Sept. 20.
60,000 shares of cumulative preferred
Proceeds—For construction program.
•
Ohio Power Co.
(9/20)
July 18 it was reported company now plans to issue and
sell $17,000,000 of first mortgage bonds due 1985. Pro¬
and for construction program.
Underwriter—To be determined by competitive bid¬
ding.
Probable bidders-: Halsey, Stuart & Co. Inc.;
Harriman Ripley & Co. Inc. and Stone & Webster
Securities Corp. (jointly); Kuhn, Loeb & Co.; Blyth
& Co., Inc.; Union Securities Corp. and Salomon Bros
& Hutzler (jointly); The First Boston Corp.
Registra¬
tion—Planned for Aug. 17. Bids—Expected to be re¬
ceived up to 11 a.m. (EDT, on Sept. 20.
ceeds—To retire bank loans
Co.
reported company plans to
it
was
announced Bank plans to issue 25,000
shares of capital stock (par $20) as a stock dividend, and
a like number of shares will be offered for subscription
issue and
$1,000,000 of first mortgage bonds and $300,000 of
additional common stock (the latter to stockholders) in
near future.
Proceeds—To retire bank loans and reim-,
burse the company's treasury for construction expendi¬
sell
tures.
Power
&
(9/27)
Light Co.
plans to issue and sell
bonds due 1985. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders—Halsey, Stuart & Co. Inc.; Union Securi¬
ties Corp. and Kidder, Peabody & Co., (jointly); Leh¬
man
Brothers, Bear, Stearns & Co. and Salomon Bros.
& Hutzler (jointly); Blyth & Co., Inc. and White, Weld
& Co. (jointly).
Bids—Tentatively planned to be re¬
ceived up to noon (EDT) on Sept. 27.
Registration—
Expected on or about Aug. 24.
Pacific Power &
Light Co.
plans to issue and sell
$35,000,000 of debentures.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co. and Lehman Broth¬
ers
(jointly), Morgan Stanley & Co. and Drexel & Co.
(jointly); The First Boston Corp. Bids—Expected to be
received
reported company plans to issue and
Underwriter—Expected to be local dealers.
—Expected
on
was
Registration
Aug. 24.
Pacific Telephone & Telegraph
June 21 it
Co.
announced company plans to
offer to its
preferred and common stockholders later this year 1,-
339,196 additional shares of common stock on a l-for-6
basis. (American Telephone & Telegraph Co., the parent,
owns a majority
of the common and preferred stocks
presently outstanding.) Price—At par ($100 per share).
Proceeds—To repay bank loans and for new construc¬
tion.' Underwriter—None.
Pacific Telephone & Telegraph
Co. (8/23)
June 21 it was announced company plans to issue and
sell $67,000,000 of 36-year debentures due 1991. Proceeds
—For construction program.
Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
White, Weld & Co., Lehman Brothers and Union Secu¬
rities Corp.
(jointly).
Registration—Planned for the
latter part of July. Bids—Expected to be opened Aug. 23.
plans to issue and sell
later this year $9,300,000 of first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction.
was
reported
company
Underwriter—To be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston
Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Inc.
Pennsylvania
Feb. 21 it
Electric
Co.
reported company proposes Issuance and
sale of $7,500,000 of preferred stock later this year. Pro¬
construction
program.
Underwriter—To be
by competitive bidding. Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
,
determined
gan & Co.
Co
(jointly); Kidder, Peabody & Co.; The First
HicC°rP'
Barney & Co.; Harriman Ripley &
on
Oct. 4.
Gas Co.
&
Forgan & Co.
Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction
from outside sources—at least to the extent
dollars." The company has scheduled
purposes
of several million
large-scale expansion program, involving $75,000,000
in order to keep abreast of estimated load growth over
a
Underwriters—Probably Stone &
The First Boston Corp and
Smith, Barney & Co. Halsey, Stuart & Co. Inc., is re¬
ported to head a group to bid approximately $25,000,000
the
five
next
years.
Corn..
Securities
Webster
bonds.
of
writer—Probably Smith, Barney & Co., New York.
Radio Receptor
Texas Gas Transmission Co.
it
28
Co., Inc.
that
reported
was
expected of about 250,000
proposal increasing the
$125,000,000.
debt at Dec. 31, 1954 totaled $84,077,350. If, in
approved
June 7 stockholders
a
authorized indebtedness of the company to
Funded
the future, the directors
company
the
of
May
up
Probable
Halsey,
issue ol
bonds, of which it
sell initially $19,500,000 principal amount
Proceeds — For property addi¬
improvements.
Underwriter—To be deter¬
and
by competitive bidding.
mined
Probable bidders: Hal¬
Stuart & Co. Inc.; The First Boston Corp.; Union
Securities Corp.; Blyth & Co., Inc. and Harriman Ripley
& Co. Inc. (jointly).
Diego Gas & Electric Co.
President, recently reported that the
will need a minimum of $11,000,000 new capital
to help finance its current $20,000,000 construction pro¬
gram.
The financing will probably take the form of a
bond issue or preferred stock.
Underwriters—(1) For
E.
D.
Sherwin,
company
preferred stock, Blyth & Co., Inc., San
Francisco, Calif.
(2) For bonds, to be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler; Blyth & Co., Inc.; Union Securities
and Merrill Lynch, Pierce, Fenner &
(jointly); Lehman Brothers; The First Boston
White, Weld & Co. and Shields & Co. (jointly).
ing—Expected in September.
Corp.
Beane
Corp.;
Offer¬
creased authorized common
was
filed
been
sell
Application has
reported company plans to issue and
of
first
with
mortgage
California P.
Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly); Lehman Brothers.
30 it
Dec.
(11/9)
announced company plans to issue and
was
to the public 500,000 additional shares
sell
stock
of common
(par $5). Proceeds—To repay bank loans and for
investment in additional stock of subsidiary companies.
Underwriter—To
be
determined
by
competitive
bid¬
ding. Probable bidders: The First Boston Corp., Ladenburg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and
Wertheim & Co.
(jointly); Blyth & Co., Inc., Bear,
Stearns & Co. and Dean Witter & Co. (jointly); Union
(jointly);
Lehman Brothers; Morgan Stanley & Co.; Kidder, Pea¬
body & Co., and Merrill Lynch, Pierce, Fenner & Beane.
Bids—Tentatively scheduled for Nov. 9. Refistratten—
Not expected until Oct.
Southland
April 18 it
{000
M
of
6%
Frozen
12.
Foods,
and in¬
$25)
stock frqm 500,UUU shares to
Bank
Union
Trust Co.,
&
Los Angeles, Calif.
July 9 it was announced stockholders of record July 22
1955, are to be given the right to subscribe on or before
Aug. 15 for 95,000 additional shares of capital stock
(par $10) on the basis of one new snare for each five
shares held. Price—$33 per share. Proceeds—For capital
and
Underwriter—Blyth & Co., Inc., Los An¬
surplus.
geles, Calif.
of
Co.
Electric
Missouri
reported company expects
Jan. 24 it was
to sell about
30-year first mortgage bonds late in 1955.
Proceeds—To repay bank loans and for new construc¬
tion.
Underwriter — To be determined by competitive
$30,000,000
Halsey, Stuart & Co. Inc.;
Probable bidders:
bidding.
(jointly); White. Weld & Co. arm
(jointly).
Bids — Expected to be received
Stearns & Co.
&
Co.
October
November
or
United Aircraft Corp.
.
April 26 stockholders approved a new issue of 500,000
shares of preference stock (par $100). Proceeds—To re¬
5% cumulative preferred slock (233,500
outstanding), and for working capital. Under¬
writer—Harriman Ripley & Co., Inc., New York.
deem
present
shares
(9/13)
Utah Power & Light Co.
March
28
it
was
sell $15,000,000
ceeds
—
reported company plans to issue and
of first mortgage bonds due 1935. Pro¬
and for construction pro¬
To repay bank loans
Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Smith, Barney & Co. (joint¬
ly); Kidder, Peabody & Co.; Salomon Bros. & Hutzler;
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); The First Boston Corp.; Lehman Brothers and
Bear, Stearns & Co. (jointly). Bids — To be received
Union Securities Corp. and
Sept. 13.
Utah
Light Co.
Power &
March 28 it was
(9/13)
reported company plans public sale of
177,500 shares of common stock. Proceeds — For con¬
struction program. Underwriter—To be determined by
bidding.
competitive
Probable
bidders: Lehman Bro¬
Smith, Barney & Co.
thers; Union Securities Corp. and
(jointly); Kidder, Peabody & Co.
and Merriil Lynch,
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.; Tho
First Boston Corp. Bids—To be received on Sept. 13.
•
Warren
Brothers
Co.,
Cambridge,
Mass.
stockholders approved a plan to refinance the
outstanding 40,665 shares of $2.50 cumulative preferred
stock (par $50).
It is proposed to issue not more than
$2,500,000 of notes, bonds or debentures which may be
in whole or in part convertible into common stock at
not less than $50 per share.
Proceeds—To retire pre¬
July 19
to pay off a $225,000 loan and for working
Inc.
i
9
fc
*
t
<
Mass.
York County Gas
29
June
issuance
it
was
and
Co., York, Pa.
announced
company
sale later this year
of
contemplates the
a new
series of its
mortgage bonds, in an aggregate amount not yet
Proceeds—To pay for new construction
first
determined.
and
probably to refund an issue of $560,000 4%% first
1978. Underwriter—May be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
mortgage bonds due
sey,
reported company plans to offer $600,debentures and 60,000 shares of common
was
,
Electric Co. (10/18).
The company proposes to file a registration statement
with the SEC early in September with respect, to sale
of $8,500,000 first mortgage bonds, series D, due 1985,
Proceeds—For payment of bank loans and new con¬
struction. Underwriter—To be determined by compe¬
titive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane, Salomon
Bros. & Hutzler and Stroud & Co., Inc. (jointly); Coffin
& Burr, Inc.; Kidder, Peabody & Co., Blyth & Co., Inc.
and White, Weld & Co. (jointly); Blair & Co. Incor¬
porated and Baxter, Williams & Co. (jointly): The First
Boston Corp. Bids—Tentatively scheduled to be received
on Oct. 18 at company's office, 441
Stuart St., Boston 16,
Worcester County
Stuart & Co. Inc.; A. C. Allyn & Co. Inc.; White,
& Co. and Shields & Co.
(jointly). It is also
Weld
possible that issue
may
be placed privately.
;
'
.
.
in
1955.
capital.
bonds.
U. Commission for ex¬
emption from competitive bidding. Bids received on
last sale of bonds were from Halsey, Stuart & Co. Inc.;
$40,000,000
100,000 shares
1,000,000 shares.
ferred stock,
Southern California Gas Co.
Feb. 28 it
$17,5U0,UUQ.
York-
Unexcelled Chemical Corp.
May 25 stockholders approved creation of
of 5%
non-voting preferred stock (par
sey,
San
bonds later to finance cost of new
bidding.
mature in 40-years.
tions
plans to sell addi¬
reported company
was
gram.
(8/22)
approved an additional
stockholders
10
bidders:
to $25,000,000 of first mortgage
is planned to
to
bonds..
Morgan Stanley & Co.
Louis-San Francisco Ry
St.
it
construction* which is estimated at about
Underwriter—Dillon, Read & Co. Inc., New
should deem it in the best in¬
to issue bonds, the board will
determine the amount of the issue and the terms and
the
of
terests
15
Blyth & Co., Inc. and Union Securities Corp. (jointly);
The First Boston Corp.; Lehman Brothers arid Bear,-
a public offering is soon
shares of common stock, of
which 100,000 shares will be sold for account of com¬
pany and 150,000 shares for selling stockholders. Under¬
writer—Bache & Co., New York.
Feb.
capital stock.
Registration—Expected on July 25.
Union
$50,000,000 and would be issued at the discretion of the
directors any time within the next 12 months.
Under¬
of Production
thereafter own 80% or more
Pure Oil Co.
April 9 stockholders approved the possible issuance of
a
convertible debenture issue. This would not exceed'
the tender of at least 263,402
that Transmission will
upon
shares of Production Company so
Underwriters—May be Morgan Stan¬
(par $100).
ley & Co., Drexel & Co. and Glore,
is contingent
offer
tional first mortgage
July 11 it was stated that company may issue and sell
late in September 250.000 shares of cumulative preferred
stock
^ Texas Eastern Transmission Corp.
July 20 it was announced directors have authorized an
offering of shares of capital stock of this company in
exchange for shares of capital stock of Texas Eastern
Production Corp. in the ratio of one share of Transmis¬
sion stock for each 2.6 shares of Production stock.
The
March
Securities Corp. and Equitable Securities Corp.
was
ceeds—For
Electric
Service
Southern Co.
Pennsylvania Electric Co.
Feb. 15 it
(EST)
to 11 a.m.
up
Public
(10/5)
sell
30,000 shares of cumulative preferred stock (par $100).
was
(10/4)
Electric & Gas Co.
Public Service
July 11 it was reported company
Stuart & Co. Inc.;
of first mortgage
$10,000,000
,
by stockholders.
July 6 it was reported company
•
was
conditions
Pacific
July 5 it
it
authorized
of first preferred stock (par $10),
of which 300,000 shares (to be convertible into common)
are to be publicly offered.
Proceeds—For working capi¬
tal. Office—Buffalo, N. Y.
Wash.
30
Instrument Corp.
issue of 500,000 shares
Reading Co.
Ohio Water Service
March 28
Sterling Precision
of Washington, Seattle,
Peoples National Bank
Under¬
New York.
June 6 the stockholders voted to approve an
program.
Boston Corp.
June
King, Libaire, Stout & Co.,
Offering—Expected in July.
Previous bond financing was ar¬
ranged privately through Drexel & Co. and The First
struction
Corp.
Nuclear-Electronics
writer—Eisele &
19, Charles E. Oakes, President, announced that
company plans this year to issue and sell $15,000,000 of
first mortgage bonds and use the proceeds for its con¬
April
Broadway, New York City.
Office—160
stock.
Pennsylvania Power & Light Co.
41
page
on
t
:
Volume 182
Number 5448
...
The Commercial and Financial Chronicle
(307)
Investment
Banking Group Awarded
$100,870,000 New Housing Authority Bds.
An investment
banking group headed by Phelps, Fenn & Co.,
Lehman Brothers and Blyth & Co., Inc. was the successful bidder
on July 20 for $100,870,000 New
Housing Authority bonds sold at
bi.
sealed
ding by 15 local housing agencies located in 13 states.
Tie following six investment firms also are managers of the group:
The First Boston Corporation; Goldman, Sachs & Co.; Harriman
Ripley & Co., Inc.; Smith, Barney & Co.; Shields & Co., and
R. W. Pressprich & Co.
T
bankers
investment
e
specified
2%% for issues due serially in the
of 2%%
rate
issues
acquired by the group
1956-1996, and
years
for issues maturing in
rates of 2Vj>%
coupon
funds
of the local public
agency, will be sufficient to pay
principal and interest on the bonds when due. The United
the
New
Saginaw, Mich.; New York,
and Athens, Ga. and
N.
Y.;
range
2%
100.256
&
Co., New York, N. Y.; and Nirkenmayer & Co., Denver, Colo.
2%
100.699
2%
101.139
The net proceeds are to be used
to purchase
equipment, to pay for
16,075,000
2V2
100.116
drilling
2,400,000
6,645,000
1,695,000
2%
101.014
capital.
2%
100.421
2%
100.531
properties owned by Mesa
Petroleum Co. include 850.14 acres
11,755,000
6,640,000
6,320,000
14,060,000
1,875,000
4,880,000
2%
101.325
of
2V2
100.270
the Howard-Glasscock oil field, 18
2%
100.116
miles southeast of the
1,190,000
__L
J
York, N. Y
Cincinnati, Ohio
Cincinnati, Ohio
"Philadelphia, Pa.
Columbia, S. C.__
Norfolk, Va.
■-
;
2V2
100.431
2%
and
expenses
working
The
100.520
2%
101.035
oil and gas
Spring,
leases which lie in
Howard
Texas,
In
With Robert Hough
Norfolk, Va.;
in yields from
(Special to
The
Financial
Cooper., has
joined
Robert H. Hough,
yields from 2.60% to 2.65% for maturities in 1934 to 1994.
Joseph A. Bear
Chronicle)
ALAMEDA, Calif.
applies to bonds of agencies in Tampa, Fla.;
Trenton, N. J., and Columbia, S. C. and range in
and
Newark
Wichita, Kan.; Fenner, Streitman
100.110
%
City of Big
County
This property
(West),
now
has 15
producing oil wells thereon.
2%%
D
100.410'
2V2
Bid
apply to agencies of New
County, 111.
1.20% to 2.65%.
Scale
N.
Share
a
of
100.267
income taxes
7,680,000
Saginaw, Mich.
Newark, N. J
Trenton
issue
2%
,
1,255,000
Baltimore, Md.
yields from 1.20% to 2.60%.
La.;
An
75,000 shares of
common stock
(no par value) of
Mesa Petroleum Co., Inc. (a Kan¬
sas
corporation) is being offered
at $4 per share on a best-efforts
basis by Albert C. Schenkosky of
Federal
Coupon—%
$3,095,000
5,910,000
9,415,000
Madison County, 111
New Orleans, La
a
Conn.; Atlanta, Ga.; Baltimore, Md. and Cincinnati, Ohio agencies
Madison
Offered at $4
•
/
2%
Amount
tab¬
Scale C-l 2%% and Scale C-2 2%%
;
-
.
bonds is exempt from
Name
applicable to bonds of the Philadelphia, Pa. agency,
in yields from 1.20% to 2.55%.—,
Orleans,
payment of the annual contributions
by
Hartford, Conn.
Tampa, Fla.
Atlanta, Ga.
Athens, Ga.
Scale B 2V2% and 2%% is applicable to bonds of the Hartford,
•
the
to
the
on
reoffered to the public in five price scales—
were
Mesa Petroleum Stock
amended, solemnly pledges the faith of
are legal investments for
savings banks and trust funds
in New York and certain other states.
Scale A,
and ranges in
States
as
The bonds
Scale A 2%%, Scale B 2%% and 2%%, Scale C-l 2%%, Scale C-2
2%% and Scale D 2%%—at prices to yield from 1.20% to 2.65%.
ranges
1937,
Housing Administration.
Interest
ulation.
The bonds
United
the Public
and
in the accompaanying
appear
the
States
Housing Act of
coypon
Details of the
1984 to 1994.
Harold
the
staff
Joseph
G.
of
933 Eagle Ave.
gear,
A.
Stearns
City, passed
77
Bear,
&
partner
Co.,
New
the
at
away
following
a
in
York
of
age
heart attack.
a
addition
'block of
leases
company
County
Oklahoma.
owns
of oil and gas
consisting of
Harmon
is
the
acreage
400
acres
This
particular block
acreage.
unproven
contributions
annual
issue will be secured by a first pledge of
unconditionally
between
Contract
Contributions
payable
will
be
in
payable
an
under
BEVERLY
Annual
an
the bonds.
gene
The contribu¬
Joins Robert Baird
Chronicle)
HILLS,
(Special to The Financial
Calif.—Eu-
Miller has joined the staff of
DIVIDEND NOTICES
Chronicle)
MILWAUKEE, Wis.—Robert F.
Sinclair is
with Robert
W.
Baird
Cantor, Fitzgerald & Co., Inc., 232. & Co., Incorporated, 110 East Wis-
amount which, together with other
North
Canon
DIVIDEND NOTICES
DIVIDEND NOTICE
Cantor, Fitzgerald
(Special to The Financial
the Public Housing Administra¬
tion and the local public agency issuing
tions
With
and thereafter at decreasing call prices.
The bonds of each
Drive.
consin
DIVIDEND NOTICES
Avenue.
DIVIDEND NOTICES
3"'
SUGAR
ALEGRE
PUNTA
ALUMINIUM LIMITED
Woopall Industries
Southern
|nc.
California
Company
CORPORATION
Edison
Public Service Electric
The
of Directors
Board
declared
dividend
a
of
has
DIVIDEND
share on the capital stock
of the Corporation, payable
September 1, 1935, to stock¬
WILLIAM
C.
On
Preferred
Stock
Fifty-five Cents
per
s'ofkholders
in U.S. currency was
no
14, 1955
declared
on
the
30^
has
been
holders
record
business
dose
of
'
declared
to
payable
stockholders of
M. E. GRIFFIN,
$1.04'/*
on
18
grossing
acres,
intersection
Near
two
opposite
highways,
Write lawyer owner.
ELECTROCHEMICAL COMPANY
Dividend Notice
Box C-67,
The
Place, New York
1955,
Board
of
declared
Quarterly
on
Stock,
the
business
of
Directors
dividends
July
follows:
on
as
the
30,
20,
red
Mark
leather,
15,000
Immaculate condition.
be
Private
Call
7-8
to
seen
be
owner
BE
28,
of
1955,
the
close
TOBACCO
the
dividend
of
the close
$.25
per
of business August 2,
WILCOX
'
CUMULATIVE
on
Dividend
the Common
on
or
close
of
Stock,
-
per
share.
r*
t
The above dividends
1955, all
are
holders
at
of record
August 5.
Checks will be mailed
from the
Company's office in Los Ange¬
v
les, August 31.
Secretary
p. c.
dPVBLIC SERVICE
Prince Albert
smoking tobacco
CROSSROADS
OF
THE
hale,
Treasurer
July 15, 1955
EAST
Quarterly Dividend
share
A
quarterly dividend of 70c per
share has
1955.
Common
2nd, Secretary
declared
been
and New Class
the
on
B Com¬
mon
stocks of the
able
September 6, 1955 to stock¬
Company,
pay¬
holder! of record at the close of
miles.
Must
business August
Half
a
Century of Chemicals
W.
J.
15, 1955.
CONRAD,
RICHFIELD
rf
From the Salt of the Earth
appreciated.
asking $1,800.
7-5936
Winston-Salem, N. C.
July 14, 1955
1905—1955
between
The Board of
P. 51.
SOUTHERN
COMPANY
The Board of Directors has de¬
clared
22!/£>
must carry on (
quarterly dividend of
cents
per
share
outstanding shares of
stock of the
on
CROSS
a
ers
record
business
on
the
THE SOUTHERN COMPANY SYSTEM
at
the
to
hold¬
close of
share
meeting held July 11,
on
stock of this Corporation for the
of the calendar
September 15, 1955,
to
year
1955, payable
stockholders of record
the
Cleve B. Bonner, Secretary
Georcia Power Company
RICHFIELD
Gulf Power Company
Mississippi Power Company
Oil
Corporation
Executive Offices: 555 South Flower Street, Los Angeles
Southern Services, Inc.
at
August 15, 1955.
Alabama Power Company
August 1, 1955.
L. H. Jaegkk, Treasurer
per
at a
regular quarterly dividend of 75
a
close of business
Serving the Southeast through:
Company, payable
September 6, 1955
of
on
common
cents
third quarter
(INCORPORATED )
RED
Directors,
1955, declared
THE
IYoup
dividend notice
Secretory
"*>
pay¬
able August 31, 1955, to stock¬
August
on
STOCK,
Dividend No. 31
30'/a cents
before September
business
PREFERRED
4.88% SERIES
F. Milton Ludlow
cigarettes
to
of
with
—
$1.40
Makers of
Stock, payable August
stockholders of record as of
to
STOCK,
25 V2 cents per share.
fj Camel, Cavalier and Winston
VII,
silver
as
share
JJ COMPANY
Common
1955
ANSLEY
1952
September
record
a
payable
September 2, 1955.
Quarterly
on
Sedan,
the
31, 1955.
dividend
of
$1.0625
per
$4.25 Cumulative Preferred
payable
stockholders
—
on
30, 1955 to holders of record
i
share
4-Door
the
Stock, 35 cents
share
R.J.REYNOLDS
Niagara Falls, N. Y.
7, N. Y.
Jaguar
share
a
ending September 30,
It
restaurant.
FOR SALE
on
have been declared for the quarter
Commercial & Financial Chron¬
icle, 25 Park
share
the 4.18% Cu¬
a
HOOKER
main
PREFERRED
Dividend No. 22
a
on
cents
$20,000.
of the
4.08% SERIES
Preference Common Stock, and 40
round motel
year
DIVIDENDS
mulative Preferred
Secretary-Treasurer
Secretary
kills and Poconos, beautiful 27
modern
of Directors has
authorized the payment
CUMULATIVE
QUARTERLY
Dividends of $1.02
$20,000 down. Foothills of Cats-
unit
The Board
\i\A
m
4.08% Cumulative Preferred Stock,
JAMES A. DULLEA
July 12th, 1955
record
August 12, 1955.
July 29th, 1955.
Montreal
MOTEL FOR SHE
the
at
dividends
ill
SI
regular quarterly dividend of
per
share on the Common
Stock
August 31, 1955,
record
of
1,
following quarterly dividends:
payable Sept. 5th, 1955 to share¬
of
September
Company
NEWARK, N. J.
August 12, 1955.
value shares of this Company,
par
to
and Gas
f
been
share
A
DOUGLAS.
has
:
quarterly
a
payable
1955,
1955
12th,
July
dividend of
15, 1955.
Chairman
July
vertible
declared
holders of record at the close
business August
regular quarterly dividend of
31*4<t per share on the 5% Con¬
NOTICE
per
of
A
$.80
in
(Southwestern)
The bonds will be callable ten years from their date at 104%
and accrued interest,
43
17, California
/
(308)
Washington...
A
gJ
jLjLI wvw
Belund-the-Scene Interpretation*
from the Nation'*
Capital
Administration
is a private enterprise Admin¬
istration—so the Benson idea of
insured Farmers Home produc¬
tion loans got turned down this
Eisenhower
the
^
year.
production loans
to direct Treasury
Farmers Home
JL
limited
are
with one notable excep¬
exception
is
that
money
This
tion.
extending the pro¬
Congress in
Out of its kit will come
regimentation of the farmer,
reducing Federal subsidies on
agriculture, and generally going
the conservative way, this fel-
making
card.
.
it
when
And
-
..
bold
to
comes
daring imagination on how
and
to do
•
good things, this Farmers
Mr.
Home Administration under
<
ribbon
wins
really
Benson,
;
at
blue
the
bureaucratic animals.
'
column
standing comparable to gov¬
a
evading real
estate loan limits on banks, and
<or
dipping directly into the
savings people put in banks and
insurance companies to enable
ernment bonds, for
-
-
scheme
a
"reduce
to
was
tor
accepted
Federal
proval of Ezra Taft Benson.
Before you can
tell
one
story,
another.
first
cording
Ac¬
with jealousy.
the
to
agen¬
successor
announced is
a
the
farmer. Let's say it is grass and
cattle.
Farmer Brown has 320
acres in former grass land that
a
beneficent government dur¬
just
scheme to make
agricultural economy
of the arid plains states, using 1
all
of
the
multifarious loan
tools of its ample kit. .
over
the
areas of
Texas,
Oklahoma, Col¬
orado, Kansas, Wyoming, and
maybe parts of Nebraska (not
the entire states
but just the
arid
the
dry
Mexico,
So
,
of
'
be
all the
land and
course,
use
Or,
the
is
SCS
the
What
the
it
another
.
way,:
^•^jsince the land is normally too
dry for
plowing and putting
into Wheat, it should be put into
many
other. things..
.
large
money
for
:
or
getting
for
going
•
of
to
Olin Oil & Gas
practices
Anheuser Busch
,.
,
.
Miss. Valley Gas
Texas Eastern
(Portland, Oreg.)
Securities Dealers
July 22, 1955
scheme for direct
bank
a
is
Portland, Oreg., annual sum¬
party at the Oswego Coun¬
mer
try Club.
Aug.
18-19,
(Denver, Colo.)
1955
lacking
to
Home resources
make
virtu¬
unlimited is for govern¬
ment
guarantees
of ' Farmers
Home "production loans."
The
water facilities, soil conserva¬
tion, pasture improvement, and
reforestation loans are not sup¬
posed to be used strictly for
nancing farm production.
Benson
Mr.
idea
the
should
also
production
locally as
there
are
was
ing at Park Hill County
be
National Security
loans.
a
Traders Asso¬
Sept 16-17
(Chicago, 111.)
Association
Board of Gov¬
Investment Bankers
of
(Philadelphia, Pa.)
Bond Club of
Annual
don
Philadelphia 30th
Hunting¬
Field Day, at
Valley Country Club, Ab-
ington, Pa.
Sept. 21-23, 1955 (Denver, Colo.)
Association of Stock Exchange
Firms
ernors.
»
Y.)
Exchange
Nov. 16-18 (New York, N.
Association
of Stock
Firms meeting
of Board of Gov¬
ernors.
Nov. 27-Dec. 2, 1955
(Hollywood/
!
Florida)
Investment Bankers Association
Convention
annual
at
Holly¬
wood Beach HoteL
for
guys
'
New Views
on
RIVERSIDE CEMENT CO.
,
.
CALIFORNIA
Transmission
CLASS
Mallinckrodt Chemical
B
(Common)
Copies
STOCK
on request
Pacific Northwest Units
Pan American
LERNER & CO.
Sulphur
Investment
10
Wagner Electric
Bought—Sold—Quoted
,
Harl Marks & Co. Inc.
FOREIGN
SCHERCK, RICHTER COMPANY
Member
Bell
Teletype
SL 456
Midwest Stock Exchange
320 N. 4th St.
St.
Louis 2,
Mo.
SECURITIES
50 BROAD STREET
TEL: HANOVER 2-0050 ""
GArfield 1-0225
:■■■ v-
■
\
•
SPECIALISTS
NEW YORK 4, N. Y.
TELETYPE NY 1-971
*
meeting of Board of Gov¬
fi¬
who
*
ernors.
Sept. 16, 1955
However,
couple
•
ciation annual convention.
guarantee
available
around the Budget Bureau
particular type of
Club.
(Mackinac la-
Sept. 11-14, 1955
land, Mich.)
agreeable to
the
that
'/
Club annual out¬
Denver Bond
ally
management
recognized
best for their
\
,
that
All
will be required
farm
loans,
of Farmers Home to
Farmers
made to
processing of each loan,
follow
irriga¬
and other sources of
private credit, through the guise
of a guarantee.
"carefully-developed Farm
part
the
and
deposits
en¬
Home Plan" will be a
and "borrowers
provides
access
•
.
also may be
water
for
Like the new mortgage
it
fertilizer, feed, insecti-'
cides, farm supplies, and for the
payment of interest and taxes,"
Secretary Benson stated.
j
A
Eagle Oil
■
farm to a family-type
;
"Loans
and
White
to
loans
whole new scheme
a
tion, soil improvement, refores¬
tation, and pasture loans.
seed,
in
Colorado Oil & Gas
of
voted
Congress, with
of Secretary Ben¬
blessing
Field
Investment
Fall meeting of
adjournment.
son,
and
equip¬
ment, farm equipment repairs,
irrigation
what have you.
needed
program.
Then last year
the
purchase livestock, farm
1
fruit,
a
size.
the dry land could
be irrigated and made a fruit
farm. The technique is similar.
systems,
determination on,
Farmers Home will take over.
say,
Or maybe
is
land
additional
"bingo," and up comes the loan
money from Farmers Home.
There
that
Just
by E. T. Benson.
designated by
and
other
improved
conservation
and land use practices including
soil and water erosion control
measures; development and im¬
provement
of
existing
farm
buildings, and the purchase of
pro-
expected to approve it be¬
fore
establishment of grasslands
loan to make an
Both Houses
new
are
areas
be made for reseeding
will
in
usefulness
the
was
the
Secretary of Agriculture, loans
"In
well,
new
a
cattle, for instance.
From
a
credit
program
operation.
He
new fences,
this
for
barn
needs
is to determine to what
land can be best put.
putting
-
of"
doing,
the
adequate family unit. However,
the farmer needs a new cattle
is drawing up
county by county, plans for
better use of the land.
with
loan)
direct
a
ferred mortgage
mapping out
of Farmers
explained in
announcement of the new
usefulness
The
last
expand
greatly
Home
Farmers
Home
scheme,
column
this
in
will
week,
The new
"insurance"
mortgage
described
That is
qualify.
the law.
savings account, it may
of your
duction and mortgages.
it is his own
A farmer with credit of
fault.
loans for pro¬
direct
for
funds
failure,
a
Tools
has a
considerable
kit
of
tools
to
achieve
the
remaking of the
arid
country.
It already has
not
or
In
of
Farmers Home already
avail¬
make plenty
can
of govern¬
is identified
Investment
Has Many
to bank de¬
his own cannot
from
dough
access
new
whether'
(it may be out
Home
Farmers
the Soil Conserva¬
Department
parts)
Agriculture is
unit."
comes
up
views.)
COMING
tration.)
government,
economically
is
,
is,
"farm family
J. B.,
precisely with Mr. Tugwell's
original Resettlement Adminis¬
able—only provided the farmer
it goes. But 320
perhaps, not enough
for a grass cattle operation: He
needs another 320
to make a
tion Service of the
;
posits,
for
Back into grass
SCS Determines Land Use
In
best
ing the war with high prices in¬
duced him to put into wheat;
acres
New
and the farmer
is
what
decide
its
with
form
paternalism
ment
thing
the
because
tant,
(This
land."
is not
the money. The important thing
is for Farmers Home to remake
the
agriculture of the region
the way the government knows
best.
The money is not impor¬
"Farm and
a
:
Farmers Home
imagination, Rex Tugwell
looks just like a piker.
cy's
What Farmers Home has
gets
Plan."
Home
the meeting a bit early today,
'yes' you in advance!"
I'll
Important
important
The
and Home Plan"
and
people
own
EVENTS
Money Not
Next, the dry land farmer sits
down with the Farmers Home
paternalistic agency
on
its bureaucratic life, if he
Icnew about it probably would
green
so
'
"Farm
Gets
Administration, who
Capital
not coincide with
"Chronicle's"
necessarily be a
beneficence.
started this
turn
"I'd like to leave
part of every farmer's forth¬
coming benefits of government
Rex Tugwell, the
Administrator* of the Re¬
settlement
the
debt
that
follow
forgiveness will
that
daring
scene" inter¬
a
doesn't
It
Farmers Home with
Incidentally, it is so,
comes
and may or may
Farmers Home
committee, he would
stand a
chance of getting cash.
spending," too.
This, incidentally, had the ap¬
up
an
by
suggested
on
3%.
to
pretation from the nation's
If the credi¬
"adjustment"
too high.
had
rate
interest
flect the "behind the
mortgage
a
it
Farmers Home,
of
the
(This column is intended to re¬
loan, but might think that the
existing private loan the farmer
All this and
of Farmers Home.
make
to
cut
broad
loose for the
reduced
-
At
Congress
time
same
them
loans.
drought
purposes
-
requiring,
at
5% interest on
pay
these loans
circum¬
given
under
ready
stances
activities
mortgage lending
the
the
help him.
will re-activate
adjustment" commit¬
tees of the 1930's. Debt adjust¬
ment means debt forgiveness by
the creditor.
Farmers Home is
to
emergency
"debt
the
Incidentally, the Con¬
rebelled
gress
farmers
are
appropriations
limited to direct
Home
Farmers
reported the latest scheme for
turning the legally poorest agri¬
cultural credit risk's paper into
'
Drought loans, however,
debt or if he
will
Home
Farmers
i
credit.
better life, then
wants to live a
^
this
week
last
Just
them
part of this kit for making
over the arid country with easy
go
is in
if he
But
drought
to use
as
debt.
gage
of the
showing
any
use
intends
therefore.
He can
help.
Farmers
now
can
and
loans
broke peace¬
fully, or he can be sold out un¬
der foreclosure, if he is in mort¬
is quite a
tary of Agriculture,
Home
given
a
some
them.
of the limits off
farmer has been
in wheat.
The SCS says the
land should be in grass for cat¬
tle.
So in grass it goes, if the
farmer
wants
any
help.
A
farmer doesn't need to take this
So
drought
emergency
two years, took
loans for
those
in
agriculture
of
gram
areas.
Ezra T. Benson, the Secre-
low,
just the
the trick of re¬
loan tools to do
straight
temporarily,
So,
m/ JT\"WM
WASHINGTON, D. C.—When
it comes to cutting down on the
that
operate on the theory
still
BUSINESS BUZZ
♦
July 21, 1955
Financial Chronicle... Thursday,
The Commercial and
44
Securities
Post Office Square
Boston, Mass.
Phone HUbbard 2-1990
Teletype BS-69
@FedFRASER