Full text of Commercial and Financial Chronicle : July 25, 1957, Vol. 186, No. 5658

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

o>/^,

ESTABLISHED 1S39

'

/,

RH. U. B. Pat. Office

Volume 186

Number 5658

New York 7, N.

Y., Thursday, July 25, 1957

Price

40

Gents

Copy

a

EDITORIAL

Undeviating Inflation in
As-We*See It
Thanks to

certain

fortuitous

some

France:A Perilous Menace

receipts much larger than originally

expected, to

able to report

financial

juggling, and

By DR. MELCIIIOR PALYI

to

circumstances, the Treasury is

a

'•

last month. If all the

be

sound central

bank, the upper chamber were restored,
people replaced their :"near complete fatalism"
with realistic insight into the
tragedy and delusion of

to

the

continuation

and,

of which if not all of which
or

the

are

the

for

been

France

action.of the sort. The fact

of

the

abandoning

mult'farious

enormous

or even

activities

tic

self restraint

to

without

or

is

a

which

a

serious crisis.

very

find,

on

itself,

remedies

a

newspaper

has

and

offer.

it

special significance in view of the fact that
political parties are laying plans for the
Congressional elections which take placi next

course
no

she

mean

drawn

inflation.

a

they

situation which has

the

Continued

.

on

an

for

for

it.

SECURITIES

the

The

was

Bureau

million

ely

in

of

changed in a short 10 years. As a
only a little over nine years ago
the

Census

1975..' The highest

publication

a

Melcuio#

Ur.
;

'

Algerian

■

'

rai»<

■

>

situation

is

size

I

On the other

by about

hand, the author pointed out

cite

1970, and then decline,

these

figures, not to embarrass

the field of demography, but
torical interest and

partly

partly to give

'

The

problem in France's most important single col¬
ony—considered by the French as an integral part of

Continued

"From

address

an

page

Income,
Meeting.

24

by-Mr.

Harvard

as

reaching

Eckler

warning against

a

Business

the

at

School

friends in

my

on

Seminar

un-

30

page

Population
Alumna
Day

oi»

Association

NOW IN

afforded

State, Municipal

in

U. S. Government,
Stale and

Municipal

STATE

and

Securities

AND

/

MUNICIPAL

p

DISTRIBUTORS
of

IIAnover 2-3700

BONDS

INVESTMENT

CHEMICAL

s

■

I

Housing Agency
*,
r

I

•

.

'

r

'

i

Bonds and Notes

NOW AVAILABLE
ON

BOND

DEPARTMENT

REQUEST
the

BANK
BOND

-

"MARKET REVIEW"
ARE

THE FIRST NATIONAL CITY BANK

DEFARTMfNT

30BROAD ST.,N

v

R

SECURITIES

CORN EXCHANGE

v\

'

,■

Public
COPIES OF OUR

telephone:

and

.

&

UNDERWRITERS

^

Y.

Burnhamand Company
MCMBERS MEW

YORK

AHO

OF NEW YORK

•

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TELETYPE NY

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Dept. Teletype: NY

To

Active

Dealers,




Stock

Exchange

Exchange

Chase Manhattan

Canadian

Banks

from

coast

to

4, N. Y.

BANK

coast

Maintained
and

for California

Brokers

Orders

Executed

On

AH

DEPARTMENT

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OIRECT

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YORK

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York

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Members

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AMERICAN STOCK EXCHANGES

15 BROAD STREET. NEW YORK 5, N.Y.
CABLE: COSURNHAM

BANK, AND

Harris, Upiiam

WIRES TO

MONTREAL AND TORONTO

Goodbody

a

Co.

Domoooti Securities

MUNICIPAL BOND DEPARTMENT

(ORPORATIO?!

?8mtk of Atttmnt
NATIONAL

xicnrtdERS NEW YORK STOCK EXCHANGE ' *

BRIDGEPORT

•

PERTH

AMBOY

115 BROADWAY
VF»A

YORK

1

NORTH

LA SALLE ST.

CHICAGO

40Exchan?ePlace, New York 5.N. Y.
Teletype NY 1-702-3

a

matter of his¬

a

Continued

,

and

on

as

large

as

151 million in 1975.

i

a

forecasts, regarded

possibility that the population would reach its maxi¬

REGISTRATION—Un lerwriters, dealers and investors in corporate
a complete picture of is ues now registered with
the SEC and poten¬
undertakings in oUr "Securities in iUgisti ation" Section, starting on page 37.

tial

are

issued

that the 1915 population might be

-veie

185 million.

mum

inevitably
inflation, or

more

excuse

fact, it

level of only

But

28

page

securities

DEALERS

make

areas.

The medium forecast presented in this
report indi¬
the total population, would increase to about

.

in point.

case

constantly before the country and before
politicians, paiticularly, the members of the
1

sion.

the

from,
or
have
indirect
only
with,
the
long (

provide

underdeveloped

accustomed to the orojecgrowth that we forget how

cated that

do

connections
out

to

temporary phe¬

a

by one of the nation's best known demogra¬
phers, whose views regarding the outlook were shared
by most, if not all, of the leading members of his nrofps-

problems

not

stem

have

so

population

'

either, which

can

longer refer

no

prepared

be

166"

has Other

ones,

if

it optimistically called "Forecasts of the
Popula¬
tion of the United States—1945-1975." The
forecasts were

as

Of

popu¬

which

unfil

and

rapid

of

when

YEARS OF INFLATION!

expenditures inevitable. All this takes

in 1960. We have here

of

matter

ble, which is in four words, FORTY *

these

been

tions

one analysis
points out the gist of the trou-1

The Algerian Blind Alley

that trends

warns

still lower than that of
have become

us

much the situation has

or

would

one

considered

advantage of anticipated popula¬

Mr. Ecklcr also

are

Most of

or

analysis

no

But

to take full

be

must

In

either side of the Atlan¬

to

another,

to

and from

area

and observes that growth rates in developed

nomenon;

equally difficult to find
that

observable in¬
seriou-ly curtailing

and for the Presidential contest which is to

component

to

area

sharp changes in direction; notes we
our
11-year high birth rate period as

a

Algeria's pacification.

on

come

but

requires

trend, from

tion growth.

rich and

bring the situation

both

year

very

is not mentioning the situa
which the "Grand Nation"

in

finds

any

make

that

tion

to

is, though, that

which

in

is

to

magazine

the politicians of either

nor

have shown

parties,

terest in

the

President,

of

France

country

fact, it is the
financial crisis in her history, which has been
punctuated by such crises since Philip the Fair started
the systematic tinkering with her
money.
It would be

impressed with the popular demand

neither the

departures from

lation

worst

good deal
even the
seems

that

contrcl—with

difficult

^bout reducing the budget, and
President, despite much protestation,

a

countries

in,fact,

offspring of

There has, of course, cf late been a

fact

amount

under

as

frustrating, according to Dr. Palyi, is

self-evident

modest

the Fair Deal.

of talk

have

business is

Most

the Bank of France operated

fundamentally healthy

expansion of the function of government, most
the New Deal

the expected

inflation.

very

attributed

statisticians,

and the

its

large deficit wduld have to be re¬
ported. There has probably been a good deal of
tightening up of Federal machinery since the
Eisenhower team took over. The continued
large,
even
increasing, volume of expenditures are to
a

Aware of the interest population and income
projections
hold for market: analysts and business

Census Bureau official, in
depicting significant changes
over the next
decade, warns that marked

could be solved if:

agencies were included and if accrued liabilities
were
fully taken into account, not a surplus at
all but

France, delineates

creating a serious crisis in the
and indicates that most of the trouble

French economy,

ex¬

penditures of the Federal Government and

By A. ROSS ECKLER*

Deputy Director, Bureau of the Census

Well known economist, writing from
the enigmatical problems

"surplus" of $1,645 million for

the fiscal year ended

Significant Population
Changes Over Next Decade

WHitehall 4-81

n'vVsc'i ASSOCIATION

300 MONTGOMERY STREET
SAN

FRANCISCO,

CALIF.

2

The Commercial

Financial Chronicle

and

...

(374)

For Bunks,

The

Brokers, Dealers only

Security I Like Best

A continuous forum in which, each

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

Try "HANSEATIC"

In the investment

Because you can

participate and give their

1.
2.

sure

of

reasons

Speed

they to be regarded,

are

Experience

II.

5. Primary

THEODORE

Coverage

and

President

as an

JR.

BIRR,

Chairman,

New Yoik Hanseatic

Wl

Member

Stock

American

which

Exchange

a

120 Broadway, New

York 5

Teletype NY 1-40

WOrth 4-2300
BOSTON

CHICAGO

•

PHILADELPHIA

SAN

•

Wires

to

r\

V»/X

TVinrtlTIAMft

I

WX

VY>

KA*Kf<

sales department) an amus

our

FRANCISCO

Principal Cities

girl

like

RIGHTS & SCRIP

our

H.

read

copy

T.

Birr, Jr.

•

1

one

c

7

kind of

New

American
120

Stock

Exchange

Stock

York

Exchange

placing

made

of

total

is

common

now

shares.

our

than

Bank

of

$1.80

America

,

,,

,

„

For current information

cite only the ^following

t

our

as

Paying

secure

as

a

be.
Yielding inves5%, highest in a long
Get yourself a good steer."
can

tors around

Industries

Furniture

..

plpal.lv

whv

continue

T

to

Quite cleatly why I continue to
as a very good

investment by

p*

income

same

earnines

1956

earnings

1956

_____

to

say.

lately.

This

in

maceutical in-

But

so.

STRADER and COMPANY. Inc

created

ance?
of

BofA

43 V2

has

in

to

an

all-time

October

-

high
It

1955.

a

that

lead

Korvette,

Inc.
the

suit

in

Minerals

one

There would

38.

three

to

seem

be

wi1C)

has

guarantee.

manufacturer's

advertising

"sold"

him

to

come

realize

Products, Inc.*
Associates

Microwave
Orradio
*

Industries

Prospectus

on

Request

&reet\eoaComp<m\^
ESTABLISHED

37 Wall St., N. Y.

Orders Executed

1930

Tel. HAnover 2-4850

on

Salt Lake Stock

Exchange

/ Riddle Airlines"V
.

Cataract Mining
TMT Trailer

Ferry

price which includes the regular
not seen the
Korvette operation to realize the retail markup. They know if they
fu*i potential, I shall outline the do they are paying for all the servvarious factors that lead to my ices and frills that they neither
found some weak holders who had conclusions.
use nor want.
(On big ticket apto be absorbed: and
finally, and
Korvette is believed to be the pliances where delivery is a physof
course
most
important with world's
largest
chain
discount ical necessity, Korvette provides
respect to short-term prospects, house.
Slightly over nine years for it, but bills the customer septhe increased interest rate on sav- ago the company was not yet in arately for the service.)
the general apathy
"money" stocks; the 1.6
rights offering by
the bank in 1956, which
inevitably
reasons:

ings deposits, which for BofA
to 3%

CAPPER
1

Salt

Lake

report total sales of over $70 million this Year with estimates for
nex* year of over $150 million and
ov.er $210 million in 1959. It is
this excellent growth potential
worth.
Time deposits are highly that has aroused my enthusiasm
desirable
because
tvey
require coupled with the prospects for
roughly one-third the reserve of revolutionizing methods of merdemand
deposits;
by the
same chandising
hard and soft goods
token, when you raise your interas Jhe supermarket so comest rate you pav a healthv short- Pletely changed the retail distriterm penalty for tMs long-term bution of food.
On this basis, it

barely
old, is not only far and
away
the biggest bank in. the
world, but it is especially bi<* in
savings accounts—over $4 billion
years

Oil

Exchange)

Exchange PI., Jersey City, N. J.
Teletype JCY 119
N. Y. Telephone
Dlgby 9-3424

OlrecfprivPte wir* to Salt Lake
City




For

the

BofA

esti-

mated 1957 cost of t^e raise is $33

stand
seemed

VcO.
Stock

business but despite this relatively
short span of years is expected to

Reflect: This institution

50

It

is

not

hard

to

under-

why
this
prospect
has
li^e e»rly winter to the

bearish in habit.
Rnt

'Members

went

last Jan. 1.

advantage.

Alaska Oil & Minerals

<

73

-

J
rr

COMPANY

AND

LIMITED

f;

Toronto, Canada

King St West

EMpire 3-8204

Tratting Dept.

Burns Bros. & Denton
INC.
37 Wall Street,

;

; :

New York 5, N. T.

(Jnder writers—Distributors

Dealers
Investment Securities

million-share

million.

Baruch-Kenilind

LINES

it is senseless for them to pay list

Morton Globus

,

Guardian Chemical

WiSENER

that

toward
Carter

—

Limited

has

the

have

sumers

of

Securities

the

The

radio, he has the
cash to pay for it, and he certainly
can carry it out of the store with
very little effort.
Intelligent con¬

sharp

and

Advance Industries

manufacturer's

expansion,
While it is
difficult for

36

Take the customer purchasing a
name
radio carrying
the

brand

characteristics
that wU1 re~

by May 1956, improved, receded again, and to June
this year has ranged between
34V2

Trading Mathets

&

it

but

number of fac-

possesses

hit

bid

declined

Oil

side

Why this dull market perform

TWX LY 77

Alaska

buy

great opportunity, espe-

a

cially in BofA.

Lynchburg, Va.
LD 39

the

on

All

have proved

and

s>;

Markets'Maintained

Trading

PIPE

vj. :■!
the small appliance >dealer and. the
department store was ;inefficient
in the distribution of goods. Korvette and other discount, hnv,

are

'

TRANS-CANADA

commit
h|s funds in growth stocks norrnally
thinks
in terms
of
the
chemical, nuclear, electronic, phar-

The investor seeking to

like,

7-5680

-

Firm

E. J. Korvette, Inc.

there

Bankers

<'-i

MORTON GLOBUS

the

Investment

111 Broadway, N. Y. 6 COrtlandt

y:2.8o

V

well

means

Commonwealth Natural Gas

Tokyo, Japan
Pra1te*i &

0.9:

"""

sion that E. J.

needless

done

.

700

to the conclu-

stocks,

not

.

:

24'J

Sutro Bros. & Co., New Y ork City
Members New York Stock Exchange

dustries

Inc.

of

:

1942

earnings

York,

15,350

__

—____

tors

have

New

S3,75J

nothing to us on the sell
side, because we never sell a client

Bank

Life Insurance Co. of Va.

of

Affiliate

December, 1956___—

investment in

sharG

pV. .
Per-sttare

(

Yamaichi Securities Co., Ltd.

Diviuenct income too snares in 19^2
dividend

write

Securities Company

steer..

100 shares BofA in January, 1942
same

or

Yamaichi

regard Bank of America common

why

reason

dramatically that by
eliminating the frills in retailing
they can effect substantial savings.
These frills include credit, deliv¬
ery, large sales forces, time-pay¬
ment plans, fancy packaging, elab¬
orate counter displays, etc.

time.

Call

investment

out of BofA unless requested to do

Bassett

STOCKS

„

BofA can

The

stock

Growing

now.

dividend

dividend

Furniture

American

.

To my mind these figures show

readersnip will at-

we've

And

faster than the West.

even
a

right

ever

JAPANESE

on

many

has proved such a good steer over
the years. And it's a better steer

Trading Interest In

remarkable perI have no doubt the

thousands of friends,

many

because

2-7815

the

stock of Bank of America with

millions

BROADWAY, NEW YORK 5
TEL. REctor

For over 20 years we

The

s0

an

Value

follows:

as

,,

than

have

clients.

statistics

5,698.009
population increase__'__'
$li,2^6
California population increase, 1957-1965 (Census projection)* 4,000,001

good steer.

inducers

think

....

T

Value

.

fftPONNELI & CO.

do

I

California population net increase (Census Bureau estimate)

is more

been

*'

growth tend to become tiresome,

very

as

branch offices

our

of

BofA earnings increase per 1,000 of

the

There

number

attitude toward the stock:

a

NY 1-1557

Mobile, Ala.
Direct wires to

15-Year Period 1942-1956

and

inside

X-

time-demand

take

the

HAnover 2-0700

New Orleans, La. - Birmingham, Ala.

its deposit accounts by about 427,000, and now has over 6.6 million
(in a state with 13.4 million peo-

„

pie).

deposits

increased

American Stock Exchange

In

this, I think, is quite simple:
branch banking in a tremendously

you

steer?",

it

branches.

600

over

Stock Exchange

Yortc

New

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

which are basic to

firm.

good

a

card

Since 1917

of

has

1956

do

was:

"Would

now

$I0-billion bank

50-50

a

_

7 7

growing state (though a less aggressive
management might let
the growth pass it by). The bank
takes fullest advantage of this. It

and $3.25.

The

caption

about

bankers in my

soda-fountain

Specialists in

between $3

formance,

a

table.

.

/

,

watching

nd

at

.

composition

ngly
awaiting h i s
best

Steiner,Rouse&Co.
Members

.

interest-cost rise in stride you are

h i

u s

36

rate and will con-

When you see a

and

b 1

w

with

steer, dressed

bonbons

her

into 1958.
Earnings for 1957 should be in the
range of $2.75 to $2.85 (vs. $2.89
for 1956), but for 1958 could rise
to

in
Sunday
best, bearing
a

and

tinue to increase sharply

showed

bouquet

Bought—Sold—Quoted

Morton GIo-

Bros. & Co., New
City. (Page 2) «

York

pickup is hard to get exactly, but
we think that by the end of this
year it will be running at a $50million annual

,

ingly drawn
greeting card

1920

Established
Associate

..

Our Company recently mailed to
clients (after much soul-searching

of

Louisiana Securities

.

E-J;J«>
bus, of Sutro

and

effect is
felt). The timing on this

still to be

by the more traditional members

Corporation

'

T

scheduled sisters, whose

Bank of America Common Stock
.

Stock

Common

Birr, Jr., President and

»rr.

"Erma"

electronic

of

American Stock Exchange (Associate)

_

America

T.

Tr

_

nothing

say

Alabama &

Chairman, First California Co.,
San Francisco, Calif. (Page 2)

estate

"Timeplan" loans (to

Pacific Coast Stock Exchange
Midwest Slock Exchange

than 400 OTC Issues

real

bank's

the

ice

of

—H.

bank automation, as typi-

gram of

Members

more

Bank

to

fied by the IBM 702's which serv-

Company,
San Francisco, Calif.

Markets in

particular security.

a

intended

not

are

Participants and

Their Selections

.

be, nor
offer to sell the securities discussed.)

First California

Reliable Executions

Private

for favoring

(The articles contained in this forum

3. Nationwide
4.

be

Week's

This

Forum

Thursday, July 25, 1957

what

rmr

appears quite plausible that even,

^

Korvette outlets will blan-

i*

harm^n

rnntinniiXr Hi-rnSinnl

to

with

compete

houses they would have to radically alter their present services,
But to do so would place them in
jeopardy with their many customers who want to keep the traditional services and frills,
However,
pressure

the

has been

department

discount
so

stores

items.

But

cddly enough, the retailers
whom the discount houses are

on

have

en-

t

-a

been
on

as

defensive. This immobility

,

mm

house

long as department stores remain "department stores," they will be on the
many

s

intense that

into price competition

forced

i"oe

-

discount

on

meantime

KorvGtte

Over-the-Counter

the

het the nation in much the same part of conventional retailers apmanner as thev have achieved pears to have left the whole counsuch prominence in the metropoli- |ry wide open to Korvette.

taT\,New Y°r* retail market. And

apfnaiKr

In order for conventional retail
ers

Canadian and Domestic

Quotation Services
for 43 Years

w

meantime, Korvette has
broadened its activities far beyond

S^anvthlnfahn"?0? h™lpleSrf t0 Se"ing °"Iy aPPliances and otllcr
to believe tW th* $33 million
i^hl
^ '
under- hard goods. Using its price cutting
ihrobu1hg increased £*7 aTe7 the reas0° for
reputation in hard goods as a

with various BofA executives lead
us

Zoulh
of

increased servi-e

many

economies

sorts,
of

through the
expanding pro-

and

an

c7r^es

the discount houseThe
cause

ZZ rtZZT hasf. g0"f. heavily

discount house arose bethe conventional retailer,"

s?

? f ^
Continued

^-

V n0^

on page

27

National Quotation Bureau
Incorporated
Established

46 Front Street
CHICAGO

1913

New York

4,N-Y.

BAN FEANCI900

?

Volume

186

Number 5658

.

.

.

The Commercial and Financial
Chronicle

(375)

Making Economic Assumptions

INDEX

i

In Pension Fund Investments
-

Investment Counsel,

Dismissing the two

Bernstein-Macautey, Inc., New

suming excessive risks

or

securities, investment adviser Bernstein finds even
gerous the in-between course of
doing what is

-

i.e.,""faddism" and "follow-the-leaderism."'
formable

assumptions
the

cusses:

equities;

future

the

accepted

certainty

In

bonds

and

and

—A.

perity; and the long-run yield of stocks

dan¬

Advises investment

.

v

-Cover
Fund

;*

•

4

6

Obsolete Securities Dept.

The
.

,

Coal

Business

_

id

special-factors which cannot help
but .influence the>choice of secu-

}•

'•

I

'

'

'

•

r

■

•

•

•

/

•

.

13

Si-cwi'd!

■

SebT>fdsWudtj" an^lasyMief

come—and the

not

>

•'

be

UNITED

W. Babson 17

finally,

shifted.

assumption that
are

J.F.Reilly&Co.,Inc.

-

Members Salt Lake City Stock
Exch.
Spokane Stock Exchange

.

of

WESTERN

MINERALS

:

-

_______

adminis-

trators

„

,,

.

the

wrong, but that he may be in pursuit of objectives which are

program,
responsible to the

beneiiciaries,

the

high places

.

•And

ultimate

on

~

•

consideration,

•'the
Peter L. Bernstein

course

Economic Void for Youns People-Roger

16

Edwin J. Schlesinger, Pioneer
Investment Counsellor, Dies____ 21
always
right, when experience has taught :'w' Even So, Will It Work?
(Boxed)
29
us
that
they are all too often
wrong.
It ignores the very real ''
;
;
possibility that what the other, fel—.
^.r.
Rc&ular Features
low is doing
might not only be
•
/.

primary

a

policies^,should

people in

necessar-

ily

O

i

when

It is based

on

current—is

!

TMT TRAILER FERRY

_

-above-average -that others know' more than voii'1':.'-'
bove-average that
know more than
you
current in- do bnd
will give you the
signal
^emphasis is

O.

,

„

Trea.s-^ :

^ lemi?
•

while of

„

PRODUCTIONS

14

these

.

NORTHWEST

,

World Consumption Pattern of
Lead and Zinc—R. Hendricks__
abdi- "''■/v.
:
*

First, cation of responsibility than
going j -"More Yankee Trade: Less Foreign Aid"
Eugene W. Castle-_
pro- hog-wild in the choice of
securigrams are, by ties or
digging in behind the MagiPreserving Three Basic Elements in Our Free Enterprise
\System—George Meany
^ their very na- not; Line of a portfolio of
______j:

~

CARIBOU MINING CO.

12
;,

•

fashionable

greater

rities.

^

\

CATARACT MINING

11

_

What Antitrust Means to the
American Businessman
Cn—Victor R. Hansen
i'f..

4-6551

and

_

In (a

NEW YORK

9

Economic Determinants of
Foreign Policy
—Hon. C. Douglas Dillon

\

WALL STREET,

Industry's Resurgence Poses
Challenging Problems

—Hatfield Chilson
The

99

Telephone: WHitehall

on

"follow-tbe-Ieaderism'V

for

3

.

Our Reactive Metal
Resources and Industrial
Development
—James Boyd

-

sense, doing what is
is perhaps an even

offer

we

obsoletes!

your

v

investment proing, namely, what I call "faddism"
grams are-characterized
by certainor

fund

specifically, cash,

what

Investments
•_

*

upon

more

is

(

headed analysis and testing at ail
^times," rather than on
mechanical projection of current trends into
indefinite future.

^Pension

Or

...

__

.

pros¬

be based

programs

Eckler_

Lilly of the Vaccine—Ira U.
Cobleigh__

"assumptions objectively established and put
through hard-

.

Ross

"Look Out: Better Business
Ahead"—John C. Hall

uncertainty of

and bonds based

SOMETHING OF VALUE

Cover

Making Economic Assumptions in Pension
V;—Peter L. Bernstein

fashionable,
deflating con-.

inflation, and

wage

"___

r\

•''

AND COMPANY

in France: A Tedious
Menace

Significant Population
Changes Over the Next Decade

uncritically, the writer dis-

of

of price

course

past experience.

York City

more

Page

M

Undeviating Inflation
■;
;—Melchior Palyi

extremes in

pension fund investing of as¬
investing solely in U. S. Government

iicHTtnsTfin

B. S.

Articles and News

By PETER L. BERNSTEIN*

~

neverthe-

If

a

own.

:

program

simply

*

See

It

•

•

.

(Editorial)

1

and

Busings

Insurance

Man's

Stocks

:

can-

Exchange PL, Jersey City
1160

44
———

44

Cominir Events in the

Dealer-Broker Investment

HEnderson 4-8504

Teletype: JCY

Bookshelf

Field'
'
^Comine Events m the Investment Field——
^vestment

of^ gumptions
concerning the charac-

DIgby 4-4970

24

;i;r^sill®ss Man s Bookshelf-

is

1

^______Cover

.__

.

Bank

not avoid the unpleasant
necessity
arriving • at' certain basic as-

yith;t>eneticiapes ^and this art s
turn gives; the administration

,,

,

-

/

satisfactory and consistently

•lfss:;have j.0 equityrthemselves m SUeCessflil investment
vtjl^ securities : beldf;oidr dq-they,t6;be Established, you
direct contact,

•

.

.

OAs We

very

different from your

8

8

__________

Recommendations.i._«.

Equity Oil
Radiation Inc.

■

yr

.'-v
<must be continuously re-examined
term nature..of pension funds, ioan(i tested against the
facts, or the
gether
with
the
secondary iminvestment program will become
portance of high current income,,
-

obRol(iRr(mt

excessive
.

i-isks, hpth"

because ^ dangerous

administrator is not dealing with
bis: own Stunds and because the
expectation is that all will come

l

„

in

the

n e r a

e

\;!

Pacific Uranium
*

r

Indications

of

Current

Business

Activity
Activlty.

IndicaUons ot Current Business

to

most^strategicNews About Banks

area df determining the basic

eco-^

'

;

nomic assumptions for an investwent program.
;

.___

and Bankers....
•

,w.

Observations—A.

: -

,

:

•

/

:

:

Singer, Bean
& Mackie, INC.

■;

—_.—

'

the bestviir the long run
'For e x a m p 1 e, it is now very ,Vr °ur Reporter on Lrovernments_.._______-_
growing and dynamic econ-f- fashionable to conside r JJ: 'S.
Our Reporter's Report
omy.;At the-other extreme, I have Treasury bonds a highly undesirseen a stubborn refusal to invest
able..investmentr Indeed, the adin anything other than U. S. Gov-' visor who recommends
Public Utility Securities
Treasuries
in

McRae Oil & Gas

36

18

-

r

,

Wilfred May-*

i;''

for

out

h 1

HA 2-0270

31

40 Exchange PI., N.Y.
Teletype NY 1-1825 & 1-4844

a

41
-

.

Direct IF ires

.

to

26

ernment

securities, in the belief for anything e x-c e p t windowthat
this would
adequately and cu essing or wi cover possible - ceds
safely ^discharge the responsibility for liquidity is now considered a
with a minimum of worry and effuddy-duddy, a scare-cat, or a
fort, and, 'also because the man¬ boob.
Possibly the characteriza¬

Philadelphia
Railroad

Securities

*

Los Angelas

Chicago

'

Dallas

*

Securities

Now

in

Registration

37

-

agement of "other people's money

tion .is

all too

But

sive

frequently leads to

conservatism

tion.

in

exces-

administra-

y"'.;

A

it

understand

and

accept,

the

Security'Offerings-.-

Prospective

appropirate at this time.i
is equally appropriate to

•*

as-

Security

Salesman's

Corner

J

40

L_:

Epsco, Inc.

17

..vC' sumptions which underlie this

More Dangerous

widely, accepted fad

Course

r*

/

:*

The Market

.

and

.

.

You—By Wallace Streete__

16

Strategic Materials

"t-

However, between these two
tremes

there

lies

frequent, but, to
ing, perhaps

f

,

a

far, far

my way

even more
-

more

of think-

dangerous
.

•

.

.

approach to pension fund invest♦An
the

address

New

York

Conference

on

by

Mr.. Bernstein

University

Tenth

before

The

The most certain economic
prewe can make is that the

•

diction

P-

poverninent < will
interest on its

securities

these securities

If things

ture.

Annual

'

Labor, June 14, 1957.

are SO

as

pay. * th6
and

they

Security I Like Best

The

Certainty of Bonds

ex¬

State of Trade and Industry

Washington

and

2

!

re*

i

"Column

bad that the

not

available

this

Quinta Corp.*
Twice

Weekly

1

25

Members New

25

BROAD

York

Stock

Exchange

/

Park

TELETYPE N. Y. 1-5

•

•

Boston
•




•

Chicago

Schenecttdy

r

•

•

Glens Falls

Worcester

New

York

Publishers

7,

London.

&

N.

25,

as

1942,

issue)

the

July

25

(general

Subscriptions
Possessions,

in

corporation

Offices:

Chicago 3- 111.

ad-

every Monday (comissue — market
quotation
news,

bank

clearings

and"city news, etc;).

Other

135

.

South

(Telephone

La

STate

Union,
Canada.

Other

and

Salle

St.,
2-0613);

office

Prospectus

on

Request

Febru¬
at

New

of

Countries,

Other

*
»

Bank

and

;$40,000 per
Note—On
the

rate

of

Rates

United

Territories

Pan-American

1957
news

*

matter

post

Subscription

and

statistical

records,
state

Thursday

Pacific Uranium

Eng¬

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

Y.

SEIBERT, President

Thursday,

C.

•

second-class
at

Dominion

Every

E.

Smith

by William B. Dana

Company
Reentered
ary

SEIBERT, Editor & Publisher

WILLIAM DANA

vertising

Nashville

Place,

COMPANY,

1957

'

,

HERBERT D.

plete

Albany

DANA

Gardens,

Edwards

REctor 2-9570 to 9576

.

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

B.

c/o

Copyright

Reg. U. S. Patent Office
WILLIAM

Diapers'

land.

FINANCIAL CHRONICLE

QTflPKC

II L T LB II Lll ul UullO

Spencer Trask & Co»

•

week.

nnrtfjvvprl nri mrjp 99
^OUUUUea O71 page 06

DDCCCDDCI1
I

specialized in

Universal Transistor*

44

ma-

Published

have

Topp Industries

5

You

The COMMERCIAL and

For many years we

3

$60,000

$67,000

per

U.

S

Members
per

WM V. FRflNKEl & CO
INCORPORATED

of

in

$63,000

year;

per

year

39

WHitehall

*

of

Direct

—

the

3-3960

Teletype NY 1-4040 &

Record
Monthly
(Foreign postage extra.)

account

BROADWAY, NEW YORK 6

year

Publications

Quotation

year.

States,

and

fluctuations

•.

Wires

PHILADELPHIA

in

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

SALT

LAKE

4041

to

DENVER
CITY

and Financial Chronicle

The Commercial

Thursday, July 25, 1957

...

(376)

4

privilege is absent

voting

Lilly of the Vaccine

ing in Lilly

noticeably

U. COBLEIGII

lltA

By

Enterprise

Economist

(

sustained earning power of
enterprises, and, in particular, some factors sug¬
Eli Lilly <4B" common may be a good selection
few notes abcut the

a

ethical drug

gesting that

in

The
vides

a

ance

to

just

industry
inaustiy

Hrue

ftthipal
ethical

Tu.

diug

pio

considerable resist-

very

get

(people

depression

as"in

good);
also

it

and

built

has

in

-

growth
characteristics due
to

rising

• a

popula tmn

canha

and per

high-

income

standard 3
and

er

health

of

and

hygiene,
d

f

lor

age

old

-

the

portfolios of

for

our

not

uct line, Lilly has been able to
sell its output through wholesale
druggists, a method which has

de-

nu

ant ana expaiming, aa-uu

Tn the

18 times 1

1956 total

sales

mowhonH

c

rase

there

1954,

no

was

years

significant

for 19a6 and, of more significance,

$32 million

Lilly

research.

woefully incomplete; for Lilly is
major
sulin,
take

is true

It

those

that

Wilfred

the

before

May

no^

Senate

Ful- side. For appraisal based on fig-

chairman

per

in-

insistent disclaimers,

ures and formulae, he
used his
"Central Value" figure, arrived
at by capitalizing 10-vear average

well-bring

may

ness) I

youno°expert

tell

tetter thanm fonuer

1955 vs. 1929

-

at

J

•

therapeutic
drug
for : diabetes,
Liny has, ior some time, been.the
leader.,, Lilly has turned
out a

Statistically and

.

.

-

.

vitamins

line of

broad

has.

and

indicated
in the treatment of anemia. Many
drugs
and
items
conducive
to

speciaHzed

in

products

mental

serenity appear on the
Lilly product list, including sedatives

and

the

elude

barbiturates.
well

and

Atmospherically

x
.

.

The

a

^ncitmhfmn

onrl

consumption and
also

moving

ucn

use,

ahead

*

lllxr

T

4-

but Lillv is

rapidly

with

shares

...

over-the-counter

and

„wv.

We hope

not

we may

not. be accused

and 4,846,161 shares of Class

mon,

"B."

These shares differ only in
fact
that
Class
"A" stocks
carries

money

so

impreswith 4% Fed-

sion

upon us—even

eral

money

s

ation

Lester

1

.

stocks

_

the

Lester, Ryons Adds
Calif

ANGELES

Mitchell is

York

Calbe

now

Ryons

&

connected with
Co.

and

623

Coast

South
Stock

With First California

Complete set—1929-1957 inclusive

.MrtPTPo

5,?

.

Bliss

A.

FINANCIAL CHRONICLE

Co.

is

with

™

First

1-

x

?

California

Inc., 647 South Spring Street,

Joins Merrill

Lynch

(Special to The Financial Chronicle)

Further Information

Call

to

of the

the

as

1950's

former's
econ-

the

period's similar
increase in the stock
"the same sharp fall in
yields," the repeated divergence
of
share
prices to book values,
and kindred accompanying spec-

"

(Extension 8114)

"

'"

LOS

Commercial & Financial




or

write Box 723,

Chronicle, 25 Park PI., New York 7

B.

ANGELES, Calif.—Robert

Hicks

Lynch,

is

Pierce,

the market—whether
400

™

the present

520'

*

'Daniel Reeves Adds
(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.—Berer.

.

.

.

1

,

JhQOadded,
to^the staff otD^iel Reeves
Lo., 898. bouth Be\ei^ L,11V^
membeis of the New York and
Raciiic Coast btock Exchanges,
With Paine, Webber
(Special to The Financial Chronicle)

LONG

of

now

with

Fenner

523 West Sixth Street.

&

BEACH, Calif.—Hale D.

Since 1932

NORTH and SOUTH

ulative psychology; leading him
to
Ibis
forthright
conclusion:
"while it would be

geration
that
seem

to

to

me

gross

CAROLINA

exagMUNICIPAL BONDS

that there has
from reality
1929, it does
that enough has hapsay

same

there

a

escape

was

F. W.

in

pened to indicate that we have
not yet lost our capacity for spec-

Merrill

ulative

Beane,

should

Specialists in

VIRGINIA—WEST VIRGINIA

CRAIGIE U CO.
,

DIgrby 4-4400

on

then

the

decisively

become

present

"

been the

1929 to

date, bound quarterly
(no supplements)

highlights the fact that
the various danger quite
signs.
pointed out

omy>s decreased
vulnerability, Cissell is now affiliated with
rather likening the instant situa- Paine, Webber, Jackson & Curtis,
tion to late 1927"early 1928- *?ut Locust at Fourth.
tempo

(Special to The Financial Chronicle)
T

For

booms

averages,

MOODY'S MANUALS

&

Pacific

Exchanges.

For Immediate Sale

COMMERCIAL

the

1928-1929;

lesser magnitude and the

(Special to The Financial Chronicle)

Hope Street, members of the New

AVAILABLE

Galbraith noted for^his
hook The Great Crash dealing
with the 1929 em broglio, not only
by his appearing but through his
testimony brought forth ghoulish
reminders of that Great Unpleas-

and

i_

where

discomforting reminiscences

between

LOS

was

author!

J fntmre ^o WW
^^ Ww the imnnssi •
Sf*
-^hty of tivung market changes. .

takingly point out the differences

_

"here

nntness. The Professor did pains-

rates!

the

vote; and is
closely held by Lilly Endowment,
Inc. and persons associated with
the family management. The New
York Stock Exchange has a rule
is
•
r ?
against granting listing to"corporcommon

and pay dividends for

many years did make an

of

wlien

at

of "1929." Thus, the Harvard
Professor of Economics . John

•

<!

siffnifimnee

course,

operative

-

with

7'

tnat is none

*

average). Rather it

would

they

.

.

of the intrinsic values afforded

are

991,723 shares of Class "A" Com-

alone

fpregoing relate to human

Lilly

the Big Board. The best answer

the

moderate tran-

Eli

of gilding the Lilly, but the visible
to that is probably found in the current evidence about this comcorporate structure. There are 2,- pany, and its capacity ? to earn
on

in-

vertised Sandril, a reserpine prod-

uct, and Ultran,
quilizer.

traded

ad-

These

accepted

that

*

.

,

here.

Some have wondered about the
fact

*

record'

dast.

at the rate of $10 million a year 6. The character-of recent buying - The impression of misgivings
antibiotics.
are
(about 5% of sales) and gives "
inLilly "B" both by individual . stemmed equally from /the marinvestors, and some of the ma- ket level after its-six-year 150%:
streptomycin and penicillin, in-; considerable assurance that the
jor * investment " trusts,
gives rise to 400; and fromv the • sureluding penicillin V, which can be favorable trend of earning power
some indication of the solidity
rounding speculative - attributes,
taken orally. In insulin, the major at Lilly can be sustained,
*

*

is good this top-level experts "bull ses-

of the Korean hostilities in 1951

n?±Lr?£l

*

uitimatp

market's decline midst the hear- "atively
digs including the widest single- whereas
^ taction since the outbreak were, of

will substantially enlarge/the
base for future earnings;

signifi-

profits he makes beyond

too good."

the above

new

lighten

SZFZ SM

sisterrt questiomn* ^

pro liability
to
profitability. .to

to

holdings of common
His [the speculator's]

the current level [400], we should

of

largest maker
The leading items

the

is

.

to the

'

Lilly

his

the pul1 markets—and

closed

who

excellence)

spec-

convinced

chance of eventually holding on

for

rent^delvmg ^Jo curative^for
diseases,

him

require

Mr. Baruch (former short-seller
Var

4. LiHy research has been richly
rewarding; and extensive cur-

the preceding five
Current research outlay is

years.

auests

are

js now at hand
Hence the principies of the prudent investor will

stocks
Senatorial

ux.

xiitt

characteristically!

a

lllati®e' stLe,we

door on the legislator's insistent
Queries for light on he market's

time when many

prestige
and
Prestige, and.

l

-This

market forecasts; as the venerated

ful//ear 1956)!

a

upociixxxg

_

warily

witnesses

the

sidestenned

against

vear

•

extension of the bull cantly

of

Many

squeeze'68 316 feehng a profit

duced within

\

closer look.

a

price
a p praisal
and
forecasting.

jn further
market.

41% for the first

this

the

.

_

and. barbiturates. : Let's

sedatives

of

areas

of the stepping-up of the rate of
the market.s rise during the pre.
ceding closing months of 1954, (3)
similarities to 1928-'29 markets,
and (4) potential dangers inherent

45% of
products 5. The important capital additions

For example,

welUn antibiotics,vin-i 1956 sales derived from

as

of

for

And this at

per

name

vfas

(it

ouarter

34%

share net. almost, doubled,
in this vaccine, consideration of from $1.48 to $3.82.
This notable
the value of Lilly common solely change
-in corporate dynamics
by results in this field could be stems, in the main, from effective
a

in

the

.

^

derives

piece

—

evidence

bight's

ethical

But eminent as is the

on

interesting

of Tallv "R".

x^ xux

n-f

^r^oun^fo^boSS
of

Also on the cautionary side, but
quantitative criteria of value
appraisal, were the convictions
expressed to the Committee in
characteristically clear fashion by
Benjamin Graham, an authority
doubling over the years as author-teacher, recognized dean of
the
security
analyst
fraternity,
and market-operating head of a
highly successful investment company.
He told the legislators that
from the historial approach the
market was distinctly on the high

some

The+answerJo dhat question^ a

sales advance,' and per share net
from the fact that Lilly turned out did not vary for these three years
more
than
70%
of all the re- by more than 14 cents. From 1955
nowned Salk vaccine produced in on, however, the story has been
both 1955 and 1956; and this polio different. Sales moved from $122
this

of

reveals

were

Why is Eli Lilly B so desirable

tn minil

above $200 million a year.

title

From the Scientific Corner

assumed

Banking and Currency Committee,

the query

—

The

Average
d at its

o o

august

17% of the 1956 total. Lilly sells ticular time would seem to be
its ware in 120 foreign countnes among the following.
manufacturers
a
companv that
and in countries where internal i. per share for 1957 is expected
has risen from a modest familv
policies restrict or Penalize lmto rise from $3.82 to $4.40 or
proprietorship (founded in 1876 ports from the U. S., Lilly has
better.
by its namesake Colonel Eli Lilly)' manufactured locally often bor- 2. This leaves room for a cash
extra (above the $1.80) of posto become an international comrowing capital funds, within the
sibly 50 cents per share.
pany
manufacturing over 1,200 subject country, to provide the
biological
and
pharmaceutical facilities.
been rising for the ^ast two
products, and grossing (1957) at a
During the years 1952, 1953 and
rate

t

touched
market drop,

peak of 400—

A.

regarded as
drug

now

largest

s

a

equally

J.

D.

warnings,

On this count the Lilly or- at 70 when it only pays $L80, and, tended to be concerned with the
ganization shapes up well.
Be- on that basis, yields a meek 2.6%.
Jowly question of stock prices,

mny

mi

today's topic,

Company,

world's

the

,

anti-speculative
off a 6-point

issue

Exchanges

the

when

—

vital.

UwiorHVi

and

be

should

margins

that

But the first words of his own earningsat twice the"'interest rate
multiple one. First, if one seeks opening statement cited the mar- for high-grade bonds Such aphigh current yield he should ket>s comparative price action in praisal justified the then-existing
existing
never even look at ethical drugs. 1929 and 1954. And the Commit- 400-level- but he also called at*
Hed £
leading kept distribution costs within rea- Almost all of them sell from 16 to teJ»g
preliminary
questionnaire tentionto
™
son,
and assured continuity and 25 times earnings. (Lilly sells at asked for information concerning depression unsetUng the basis of

investment trusts.

lected

are

sales techniques are

tive

broad investor acceptand they are widely found

veloped
in

excellence

business,^ shares^ of cause of thediversity of: its prod-

leading companies here have
ance;

Now we have trundled out quite
few statistics about this comcorporate pany but perhaps we have not yet

productive

mere

and

in March, 1955
in

Hearings, held

Profitability and progress. Effbc- completely answered

Because of

hnking of depressionresistance to growth, found in t e

this unique

drug

and

is^ no funded debt

bentures!).

enough, alone, to assure

t5

degenerative diseases.

ethical

Naturally
breadth

gestion

.

only

cultural chemicals.

elopment
remedies

e v

o

Cobleigh

U.

Ira

,

$2.4 million of preferred
cf cattle. There's a new antibiotic, standing ahead of the two classes g
hyg-omycin, which attacks effec- of common. Current position is •
tively a whole range of animal exceedingly strong with $92 milparasites; and the new element lion of net working capital at the
Cibberellic
acid
which
gives 1956 year-end. Even though about
great promise as a stimulant for $85 million for plant modernizaplant growth is being tested and tion and expansion has been proresearched by Lilly. Development grammed for 1957/1961, it would
in this area is being accelerated appear that the company should
by the present construction of a be able to finance it all from innew
$3
million
laboratory at ternal sources, (although imagine
Greenfield, Indiana, which will how the public would eat up an
specialize in the research of agri- issue of Eli Lilly convertible degrowth

and accelerates the

vances

constant

the

...

TOO HIGH?

HIGH IS

HOW

Re-examination of the testimony

Financial position of pxrellent given experts in the so-called Ful- raisedof tu 70upward of resumpEli Lilly ment1 by the nation's top invest- t7™^ luS, TiT i tion G to the
1 100% in case v
a
trbriitionallv
movement,
There
is
no
funded
debt
and bright Stock Market Investigation and that the Government and the

Stilbosol, a chemical vvhich ad- There

ti mes

bad

By A. WILFRED MAY

4,600 stockholders—rather an im¬
portant tribute to the quality of
this equity.
Financial position of Eli Lilly

Division. Lilly has p

in

ill—perhaps more s

as

Industrial

and
*

Agricultural

its
us

oro-

.

a

sional public offering of blocks of
shares has since then added over

selective market.

a

Observations

1950 Lilly

Until

family company
only 209 shareholders. Occa¬
strictly

was

with

Containing

deal¬

"B" however, has not
inhibited its distribu¬

breadth.

in

tion

re¬

or

Over-the-Counter

stricted.

self-delusion.

look

This/with an

So

we

defenses."
accompanying sugto

our

RICHMOND, VIRGINIA
Telfetypet RH §3 8c

Bell System

Telephone 3-9137

b4

Volume 186

Number 5658

I
.

.

.

The Commercial and Financial Chronicle

(377)

R. G.

Murphy V.-P.

Of B. J. Van

from

The

Ingen

Richard G. Murphy,
Manager of

B.

J.

Van
&

Inc.,

and

of

this

bond

under¬

writing
ganization.
Mr.

^

_

Co.

Inc.

of

Murphy

the

B.

j.

Ingen

Van
1936.

He

is

&

member

a

Municipal Bond Club of
Investment Asso¬

New

York and
ciation of New

York.

A

of true warning,
arguing for moderation, emanates
"Monthly Business Review" written by Henry H.
Heimann, Executive Vice-President of the National Association
of Credit Men, and is
worthy of repetition in this column, viz:

N. C.

—

Mar¬

Johnson, managing part¬
McDaniel Lewis &
Co.,
Jefferson Building, has
announced
that E. Neilson Beard
Jr. has be¬
come

a

general

partner

in

that

firm.
Mr.

"On
not.

are

future

became

associated

Pierce,

Fenner

&

Beane.

McDaniel Lewis & Co. has been
in the investment
field in
North Carolina since 1922. In
active

ad¬

to

Mr.

Johnson

and

Mr.

Beard, other general partners in¬
clude
McDaniel
Lewis,
senior
partner, and Edward R. Lowry.

Barbour, Cleland With

Dempsey-Tegeler & Go.
(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—Jack

Barbour
have

and

Karsner

become

M.

Cleland

associated

with

merly
&

highway of economic prosperity, warning signals
generally accepted. Because we have such a fabulous

ahead

of

us,

many

people

that

assume

we

disregard

can

object to them.

or

fabulous future does

of

not

When is it suggested that the
speed at which we are moving along
the highway of
prosperity is a bit on the dangerous side, such
observations are attributed to prophets of
gloom and doom. Those
who issue these warnings are labeled
pessimists. It is an incon¬
trovertible fact, however, that a measure of

and

excessive speed.

in any economy.
is helpful.

the

danger that

Moderation is

While

a

a

"Perhaps it

goes

even

in the

with constant

virtue in any language or

plea for moderation

be popular,

may not

Street.

Both

partners in

were

for¬

Barbour, Smith

he

has

investment in

no

plans

to

new

leave

the

New York reported
yesterc a r. The increase was all but
offset by a decline in
acceptances drawn to finance the domestic
storage of readily marketable
staples, largely cotton.
The net result of these
and minor
changes in other acceptance
classifications was a small net seasonal
decline of $4,830,000 in
bankers' dollar acceptances
outstanding in the United States dur¬
ing June, to a month-end total
of $918,925,000. The net decline
last
month compares with a
decrease of $34,125,000 in
and

odd

seems

to

say

we

be

may

moving too fast

Major steel
mills
and

"All
the

in this country is true
throughout the world.
are

agreed that the future of

long-range period

our

in

which

it

over

of

can

operate

to

check

radical

a

Many of these are reflected, in legislation but
reflect the attitude, conduct or the condition
Even

a

reduced tax load

start wheels
he

or

turning if the

is

consumer

holds onto his dollars and

is scared.

frightened,

checks his buying.

"Perhaps there is a lesson here for business. It may be well
to attempt to become more
efficient "with your present volume; to
try to produce better and to manufacture more
economically your
present product, rather than to move out on a
program that you
believe necessary to
keep up with the hectic pace that is being
set in this day and
age.
The future is a long road and we shall
be
to
we

better off

to

travel

at

a

a

more

run

evenly sustained speed than

out of breath

reach its end.

can

"Moderation in
to

it

sprint at its beginning and

.continuation

.

any

of

or

Even

in

according

to

"The

collapse before

optimism

usually-cautious

sales

tail

sheet

end

of

demand

August

will

is

be

Age,"

national
j

near-working levels

for

second-haif

managers

see

hot-

—

upswing.

Some steel men foresee
November and December.

in

These forecasts

and

steel

definite

a

cold-roiled

says

steel

one

a

expected buildup in demand

an

He

adds

that

demand

from

appliance

begin to strengthen in September-October.

"The Iron

sheets

than July.
But
beginning of the
relatively tight sheet market
mark

automotive

as

maker.

should

on

better

to

and appliances.
"Tne auto
operating at capacity in the last quarter,"

companies can't miss
makers

based

are

users

little

expected

Age"

to affect

says

steel

expect increased demand for

men

the

availability of light plate in the near future.
been rolling light
plate on sheet-strip mills. But as
demand strengthens, the
rolling of these plates will be

have

shifted to the regular plate mills.
its acceptance of orders for

One mill already

light .plate

is restricting
August-September

for

delivery.
The mills

are

warning their customers of the expected shift

in market trends.
to

But so far there is no sign of a concerted rush
This may come later, as the pattern for last half

place orders.

of the year takes

definite shap :.

more

The real push for tonnages

not materialize until November.

may

"The Iron

steel

find

Age" reports this week that fabricators of structural
supply problem a little easier. Wide-flange

their steel

structurals and sheared plate are still hard to

ib.

.m»

Iron

,

sight for the "easier" products

August
the

sheet

can

individual.

When

be touching bottom on inventories. The
delicate balance between inventories

growing

demand.

them

of

the

of

needs,

a

The apparent reduction
of steel stocks to
just one reason for

Mills

none

of

metalworking weekly.

readjustment.

synthetically low interest rate won't

a

users may

indications

from such major

nation is fabulous

time, but many sound and progressive
people believe that we are moving along too fast.
They believe
the speed at which we are
going is not conducive to safety. They
are not too
impressed with the fact that the government has many
ways

see

production

sheet.

suggest that we might be on a sounder basis if we slowed
just a bit to catch our breath and get a
slight rest, and so
be in better condition to
presume our forward march.
Also, may
we repeat that it does not
jibe with all the Pollyanna talk that
we just can't stub our toe.
What is true of the
move

year

$41,007,000 in June last year.
was $294,889,000
greater than
acceptances outstanding a year
ago. ".-."r
■'
Except for brief periods at the
begining and! .end of June
demand in the market
kept pace with supply. Dealers increased
rates by
one-eighth of 1% per annum on June 6

or

down

we

May this

a

contra-seasonal increase of
The total at the
end of last month
the amount of

upturn

to

Dempsey-Tegeler & Co., 210 West
Seventh

that

business

exchange increased materially
during June, the Federal Reserve
Bank of

speed with which

Beard

the Lewis firm in
March of
this year,
having previously been
an account
executive with Merrill

dition

the
so

They do not realize that even
necessity preclude a readjustment
that, though short in duration, could be temporarily
very injurious.
a

with

Lynch,

the

casionally in mindfulness of

of

cf

During June

word

from

it

shall H.

rate

Bankers acceptances drawn in
Latin America to create dollar

greatest of prosperity, is helpful to a continuation of real
pros¬
perity. It is much better to take your foot off the throttle oc¬

Admits E. N. Beard Jr.
GREENSBORO,

Production

Business Failures

caution,

McDaniel Lewis Go.

ner

Auto

Industry

Index

J

warning signs

Murphy

joined

.

in

or¬

record

a

Federal Reserve Bank
Reports Latin America Increased
Bankers Acceptances

Index

Price

\i=

municipal

Richard G.

Trade

Commodity Price

York

dent

and

year

Cabinet.

Wil¬

City, has been
elected a
Vice -Presi%>

Retail

Food

In¬

Street,

New

Electric Output

State of Trade

C o.,

57

liam

Production

Carloadings

tne
trading
department of

ge n

Steel

last

plant and equipment.
Secretary Weeks stated

come

by.

Continued

But lighter

on

activity is one of the elements essential
business, good health and a sound

32

page

good

economic condition.

■r».

Co.
Robert

with

H.

First

Desbrow,

California

Dempsey-

Tegeler.

Joins Daniel Weston
(Special to The Financial Chronicle)

BEVERLY

HILLS, Calif. —'

Nathan Himot has joined the staff
of Daniel D. Weston &
Co., Inc.,
9235

Weeks

recently

Company,

has rejoined the staff of

Wilshire Boulevard.

Expects 1957

Will

Be

Our

Best

Year

Speaking before the National Press Club in Washington on
Tuesday, Secretary of Commerce, Sinclair Weeks declared that

HOW TO

1957 will wind up as "the best
year ever in the history of our
economy" although "spotty" conditions persist in several industries.
The Secretary said the total
output of goods and services

reached the record annual rate of
$431,000,000,000 in the first half
of the year, up 6% from first-half 1956.
On

strictly domestic matters, Mr. Weeks said inflation
tinues to jeopardize the
country's prosperity.
"The expenditures of government are a factor
in this
they must be controlled," he said. "Prices and
wages

chasing each other
Mr.
are

ing

Weeks

referred

to

pushing the economy to
a

record rate

of

and

still

are

The word .<speculate lias

and that is not healthy."

up,

a

number

new

personal

of

buoyant factors which
high levels of prosperity, includ¬

income;

a

5%

gain in retail

,ESTAB

SPECULATE

con¬

sales

Yet

CARRISOI

are

pleased to

announce

that

American
can

in

In

is

of

MR. LOUIS C. McCLURE

now

associated with

us

as

Municipal Bond Adviser

No need, for

stocks.

is

way

this

make

to

can

he

example, to buy

a

done

big

sum

with

of

out

a

surprisingly

but large, well-known

any

(Leave unknown "cats and dogs" to

those who

charge of

practice,

the odds

well be

on

a

his side

For

can

speculator.

may

example,

a

take fewer chances than
man

hardly he called reckless—though he

So long

as

a

who bets apvays with

he spreads his risk

among

out

a

may

suffi¬

on

top

our

and

To

/

show you

you a

9f

as

Vice-President

•

330 HANNA BUILDING

our

Florida Gulf Coast Offices
TAMPA

Telephone
Street

2-4628




how this principle

make steady,

revealing

new

Principles," plus the

M. SAXTON

charge of

sensible speculator

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

nients—to

LOUIS

a

approach absolute certainty.

Corporate Investments Div.

Madison

fact

afford the risks.)

cient

as

617

the

"conservative" investor.

Vice-President

in

among

WARREN D. WILLIAMS

announcing the

us

MR.

"dirty" word

a

pleasure

association with

in

sum—and

small risk.

We

INC,
takes

speculating is the quickest

modest

WULBERN,

unfortunately become

investors—largely Jbecauep. jt is too often, qsgd, to mean-•reckless
gambling—of the double-or-nothing variety.

&o:, tyfoc.
CLEVELAND 15, OHIO

Members, New York Stock Exchange

Telephone: CHerry 1-5671

Teletype CV 34.9

can

he applied to

your

invest-

low-taxed capital gains—we will gladly send

48-page hook, "Stock Market Analysis: Facts &
next 3

weeks of regular service. This includes

strength ratings of 500 stocks, together with specific buy, hold

or

sell recommendations.

Send $1,

together with

your name

and address,

AMERICAN INVESTORS SERVICE

to

CF-101.

Larchmont, N.Y.

5

Financial Chronicle

The Commercial and
6

said
gue

the

From

Washington

publicly that they can't ar¬
with the fact that a jury, in
fondest American traditions,

of

five

trial

He

Washington the one industry
around which all life revolves is

Our merchants,
doctors, lawyers and dentists

that

of

our

politics.

off

Live
That

although

th

are
not
1 i t i cians
emselves,

their

custom¬

and

billowing
do

not

trag¬

we

of

edies

not

a

closing

plant
o w n

Carlisle Bargeron

and

throwing

charge of

-

a

thousand men out of

politicians

employment.
last place a

in these

engaged

obstruct

to

harmless

justice,-

to

so

in
the

able

President makes

nation¬

a

the

Hoffa

have

into

entered

investigator
—

fascinating

spec¬

these

weal
of

Keuther

that

it

fore

the committee and

increase

his

the

cocktail

salons

the sub¬

labor

years

have

Green

American

the

as

Fed¬

lead

him

reform

to

in

labor

lights

the

has

This

is

the

been

the press as a

sportsmanlike or
gamesmanlike,
as
the
British
would say, about it.
It is saying

the

very

misinterpreted

intends

Dave

Beck

call

to

It has

that it would have

so

palpable

hard time in

a

court proving that its purpose was

merely

to

get

information about

the labor movement for purposes

.

the

and

press

and

up

by

confident of

to

do

about

this

Meany

and

The
This

mature

shouldn't

He is

a very

'•market

unhappy man.

is

it

is*.this.

remind

was

strong;

anyone

The

mortg

This was true not only m

Wbole wide

capital ex-

of

area •

Pension.

^

v".

-In other words, we; were using
a big waj)- as a sup-

*;
'

bank credit in

plement for savings to finance our
houses, our shops, and our fac-

to

1

"

guaranteed unconditionally as to payment of par value and dividends by endorsement
by The Pittsburgh and Lake Erie Railroad Company

fields would not be in
we are today.
As it is

be

trouble

ahead.

Sooner

made to

the

with
It

MATURITIES AND YIELDS

t

have

ment

7 year.

to

back

into

Irinrl

rnOT

move

Not only do< we
slowly until the

savings and: investment situation
is brought into better balance; but
we have virtually to sit back until it comes into such balance that
a still submarket
rate of interest
begins: to -be more widely attrac¬
investors.

to

tive

.

V

\

Coitimiced the Worst Is Over

be

cap-

balance

At,

to

or

growth of real savings.

/ivrintlTf

o

is

has

bring the growth of

expansion

ital

-

adjustment

j.an

economy."7

the

'

Tt

(accrued dividends to be added)

e

*u*ht

th

|home financing. Similar activity we faCe double- the adjustment
5WuSi
on throughout, .the ^at has to be maderelsewhere in

We were borrowing sho.rt
and,-lending long.
Whenever a
country does that there is bound

inclusive

action
but to
the effect of a rigid interest rate
ceiling
in
an
otherwise free
money market. It is to the credit
of the Federal Reserve officials
due not to the desire of the
of the monetary authorities

money

tories.

$148,000 annually on each August 15, 1958 to 1972,
•

to

need

crippling was

the

But

crippled.

of

year

a

accounts receivable, and

on

later

To be

at

1957

did in those years.

we

; means

'

look

story is different. This part, which
made'up "more than 50% of the
to+^1 ?n lPnfy, has been seriously

that they alone in the government
was'had the courage to point out the
easy; and;-,when we couldn't^ get
real problem and boldly to urge
I all the money we could use from freeing the rate on FHA and VA
the saving' institutions we got it mortgages.
; ' ;!
•
-j ~
ifiom the commercial banks in,the v jjad. their advice been followed,
form of warehousing credits, loans
e jn the homebuilding and home
.what

Equipment Trust Certificates

1

I

of

way

year

the

mortgage ^financing,

9nteed

i

economic penance. It
which we are paying

that

there won't be any American

Federation of Labor.

..

dependent, upon insured and guar-

ahead.

.

out

: has ' been
it has not been

part of activity that is

With the

be

can

Economic Penance

(Philadelphia Plan)'
To

we

time

better

a

Never-

over.

that

sure

is a year in
the penalty
erring union.
Meany avows he
vfor overinvestment and undersavintends to kick them out, when
ing last year and the year before
he knows that to kick them all and; the 7year • before
that.
I
tends

Pittsburgh and Lake Erie Railroad
Third
Equipment Trust of 1957
1

slowed in pace but

crippled.

not-all

are

theless I feel

him as to what he in-

$2,220,000

4Vi%

Hall

'

problems

•

the press

applaud

senators

C.

either that our

*

' activity

investment,
John

question

no

movement to clean

movement

and

be¬

give him

treatment.

intentions

its

Hoffa

the

a

t-jjr ouMous

move¬

Reuther.

of

in-this
present difficult year.
In other
words here, as in other types of
likely to be reduced even

time.'7 .There's

pressing

keeps

Reuther

is not

peak level and

its

close to

that

life that Green did,

the easy

Walter

by excess commitment in
1955,
remains pretty

and

1954

been

through

a

Conventional

created

no

have

we

being able to

instead of

but

more

is

question

eration of Labor. He accomplished
this

free;interest rate,
remained at a high
mortgage
lending, in spitemf the problems

mpany.

There

is

has

level.

he in or^er

Bill

this

oFhome financ¬

activity

to

eo

area

of*

absorber

need

we

to

old
of

President

m ore

miserable
than

the

in

is 7 con¬

"

evidence ' of

The

ings where it was possible to roll
with the1 punches with the shock

ke, our¬

the ambition V of

cherished

succeeding

that

George'"- for

circles,

itself

monetary T policy
cerned.*

may

we

selves

George

Prominent in New York

State

in

succeeded

of

figure

tragic

Meany.

"getting'* of legislation.
Members of the committee have
Beck only to pave the way

parently
Dave

acting

made

ject of conversation is what a
pickle • the McClellan investigat¬
ing committee is in. It has ap¬

m a

the

effect of monetary policy on hous- /
ing. ; Actually there has been no
discriminatory ;effect,7 so far as

t i m es

s o m e

think

is

''

*

maneuver¬

.

and

to

is

ington callously looks at it, there

acquitted

committee

not

power.

In

McClellan

the

these

of

all

in

ment

of the efforts of

Hoffa, and

Walter

and

it is easy to conclude, thatf. it
likely to stay bad or get worse.:
They! say that iriisery.loves companyuand I
good,

•

ings and battle of wits, as Wash¬

by

was

into consider¬
in the last few

got

He

But

■

Beck

the
Hill
the

days is to watch
maneuverings
on
Capitol
against organized labor, of
efforts to "get" Dave Beck
Jim

-

his start as legal
adviser to the late Joe McCarthy.

ridding
only to
succeed him, readily
a
plot with lawyerCheasty
to
entrap
two birds with one

public

Teamsters

radio

In this light a

tacle

the

prominence

years.

gained

nothing

see

get
speech. The interest Hoffa
here is how it caught on, whether stone, so to speak.
he advanced his prestige or not.
Well sir, Hoffa

wide

of

feelings

bar who has sprung

enterprise.

could

which

interested in a vicepresident being elevated to the
presidency of the concern.
be

The

-'
'

speak,
but to
get
ammunition
against Beck,
It was funny to
see
him get
caught in such a

issues such as another community

might

.

the

The cocktail
circuit said that Hoffa, who was
Washington is the
used to getting what he wanted
depression hits.
By the same token, Washington through strong arm methods, was
is largely unconcerned about the not so bright in matters of this
great political issues of the day kind. For example, another in¬
that arouse the country, particu¬ dictment pending against him is
larly with respect to their merits that of. wiretapping to get infor¬
and pros and cons. We are con¬ mation on his own employees.
cerned ' in
the rise and fall of
But
the McClellan committee
the

"5

1957 as a
- V
year of penance.for the overinvestment and undersavings inthe past few years, praises the monetary authorities; for their
courage and for urging the freeing of VA and FHA rates,
and calls attention to the increased volume of savings. Mr. ;
Hall declares homebuilding is on its way back to* last year's <'■>?.}+
level in view of the sharp jump in housing starts from 800,000 i
Mortgage Bankers' nominee, for President views

throughout the trial.
v
It is no secret that this ruffled

-

smokestacks,
have the

He continued to

his "old friend."
sit

;

•

We have

are.
no

a

7

.

the official

'

clients
patients

ers,

from

i

Convinced that the worst in homebuilding is over,

-

they
p o

free

scot

goes

•"

;

Government
prosecutors and they gave con¬
keep him advised of what the sideration to having Louis cited
committee planned to do.
When for contempt of court. But the
4
'he FBI seized Hoffa in the al¬
V
fact that the jury returned with
leged act of passing money to one its verdict so quickly arid that
i
:C
Cheasty, a New York lawyer and there were five whites on the
in March to 940,000 in April, and claims that next year we
investigator, who testified that it
jury
has
now
dissuadedthem.
vas
for the purpose of his get¬
:I
Instead, they are wondering just VM!' should reach 1.1 million or more* Refutes charges that the
ting on the committee and.instead what was
% monetary authorities discriminated against- housing and conv
wrong with their case. ;
he told the committee all about
One thing that was wrong, of
;
v demns the Government's unrealistic attitude toward the house
it,
why
the
cocktail " circuit course, was Hoffa's defense,4, led
laughed and laughed, and allowed by Bennett Williams, a young and
jf' v*:
r. V;. mortgage interest rate question. 7.
.7!'^ V'';.,
that what Hoffa had in mind was
highly respected member of the
When ff.business V dqesn'A look! lately 7about ^the5;4is^imjnat6ry'i

is to say

that

thought they had "gotten" Hoffa
too.
But lo and behold,
Hoffa

Hall Mortgage Co., Inc.
Birmingham,' Ala.
J;- 'J
.T * ■
Allen &

President, Cobbs,

jury

the

as

America

Vice-President, Mortgage Bankers Association of

quite ostentatious.
into the courtroom

was

was returning
from lunch and shook hands with

having attempted to place a man
on
the
McClellan committee to

it.

Louis' appearance at

walked

just

Well, all of us frankly

for Hcffa.

By JOHN C. HALL*

and

Negroes

seven

whites.

the

jury was

The

trial.

the

at

composed

By CARLISLE BARGERON
In

Business Ahead7'

pointedly about Joe Louis' pres¬

the News

Ahead

"Look Out—Better

acquitted Hoffa but they remark
ence

d

.Thursday, July 25, 1957

..

(378)

Severe as these handicaps have

j
6

.aatiict.

exactly, that kind of adjust¬
we
are
going through this
'
.
•
••;.'
.

heavy as they still lay

and

been
on
-

'

am

•

*

-

the

not djstressed or disiY

#

,

I am convinced
is overt and, that

couraged.
worst

i

that
our

4.10%

I960

4.25

1961-72

4.375

the adjustment
relatively pain-

knowledge that our troubles have
been due to artificial obstacles and

ply, the Federal Reserve authorities have been able to get the situation under control in time and

not to any

policy,

monetary
been

has

Issuance and sale

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

The

.

to

slow

alert

to

Thanks

4-35%

1959

though gradual for the
mentioned, is none
the less certain.
We can take
SOme
satisfaction at least in the

lessly. By putting a tight rein on
the expansion of the money sup-

1958

made

down

and

the

effective

speed

recovery,

We
see

HALSEY, STUART &, CO.

Inc.

the economy

with

tion.

DICK &.

MERLE-SMITH

R.

W.

PRESSPRICH

& CO.

HUTCHINSON

&, CO.

i

FREEMAN

& COMPANY

a

single excep¬

-

a

don't

that

we

strong

come

need

housing.-

look hard to

have the makings

demand,

effective

mortgage

to

as

machine

soon

is

of

will be¬

that

our

as

again

in

good working order. The income
situation is favorable.
Fach new

brings a fresh high point
personal income. The average
family inc0me is higher this year
We have heard a lot of loose talk than last, and the proportion as
well as the number of families
*An
address by Mr. Hall
before the
annual inc0meS of more thail
Finds

No

report

Discrimination

,.

McMASTER

serious weakness in the

underlying demand for

the

of

capital
boom
without
actually
contracting
capital
investment.
This has been true everywhere in

I have

reasons

The exception is

■

in

housebuilding.
•

July 25, 1957.




26,Clls7?

Birmingham, Ala., Ju„e

^ greater ^ yem_

^

Volume

186

Number

5658

The

Commercial and

Financial Chronicle

7

(379)
last.
in

Thus

fhn

l^es,
in

even

ahvointp

wc wmrld

the

far

effective

as

than

without
numiw

growth
nf

"e^nore

ha

income

housebuying is

of

fami

of them

range

new

concerned

on

was

Sees
,

,

,

,

from

of

the

...

trough

ing

..

two

„;nsf0Vor
million or
The

years

to be sure,
but enough to
remove this factor
as a
negative influence.
Moreover,
baby production continues in recnumbers.

not'fn

is

nevertheless

is combiner!

levei

oi

with

the

FHA

could

it

inJ Jmt Ina l

seriously
We have

ket.
*

-

"

dickering

loan-to-value

;

The

As

latest

cf

of

report

of

the

available

the

ratio
at

third

first;

21%

ciuar'er

2.8%..

was

the

end

of

fewer

seen

^»

been

this

What

the

were

building

of

ratios

With Bennett-Gladstone

piuviue

(Special to the financial chronicle)

aids£^

up

as

f^wols over nous
individually

businessmen

through

their

LOS ANGELES, Calif.-Medar^

a

one

great

a

No

has

wHh

trade

associations,

Cq

previously with J. Logan
Edward Cronin Adds
(Special to The Financial Chronicle)

_

_

.

LOS

„

Form Seaboard So. Sees.

V.

(Special to The Financial Chronicle)

ATLANTA,

Ga.

—

ANGELES,

Peterman

I

Seaboard

formed with offices at

548

South

1211

in

Robert F. Camden passed away-

a

year

,

■

—

of

is not an offer of securities
for sale or a solicitation
buy securities. The offering is made only by the Prospectus.

announcement

offer

an

to

-

>.

$100,000,000

seems

«

1

C.I.T. Financial

Corporation

Series Debentures

view
and

factors I have mentioned,
to

to

me

be

It

is the

Corporation's intention (i) to offer the Series Debentures by way of a continu¬
period of time, (ii) to make available maturities suited to tlie requirements
of various types of
prospective purchasers and (iii) from time to time to vary the Series being
offered and tlie
offering prices of tbo several Series being offered in the liglit of market con¬
ditions and the Corporation's
requirements for funds.

-

ing offering

in

position to absorb all the credit
that is likely to be made
avail-

able to it.

over a

.

•,

Increased

•?What

Savings

the prospects.

are

"

Interest will be
For

The Debentures of

one

thing the volume

of savings is in¬
Compared with the first
quarter of 1956, the annual rate
4 of savings was 9.6%
higher in

The

creasing.

in

more

Corporation has created and offers the following four additional Series of Debentures:

Maturity
Scries

Offering Price

Date

1967

4% %

9814%

July 1, 1967

1968

4%%

98

July

1969

4%%

97%

July

1,

1970

the

investment
stream than there was a
year ago.
This gain is certain to he reflected in an increased
rate of asset
.

payable on all Series Debentures on January 1 and July 1 in each year.
the following eleven Series will not be redeemable
prior to maturity.

-

the first quarter of 1^57—.he dif¬
ference amounting to almost $2
billion

4%%

97%

July

1, 1970

accrued interest to date of

delivery.

'

growth in the savings institutions
of the
country which

*Plus in each

case

supply the

housing market'with
funds.

Moreover,

its mortgage
the
forward

The

the

amount

vanced

on

of

bank

credit

warehouse

Corporation initially created and continues

to

Scries
1960

a;

/have
trend

since

tunities

a

'

■

private

even

year.

placement.

we

?

*

We

■

The

term is

...4%%

99%

July 1, 1964

4%..%

99%

July 1, 1965

...

...

99

...4%%
....

case

July 1, 1966

accrued interest

date of

to

delivery.

amounts

previously sold

being offered directly by the Corporation and

are

defined in the Securities Act of 1933,

as

amended.

proceeds to the Corporation from the sale of the Series Debentures will be used primarily to
refund other debt and to furnish additional working funds to its subsidiaries.
!'
'
net

Copies of the Prospectus
any

i
■■■.,
_

.

may

be obtained from the Undersigned in

State in ivhich these securities

may

lawfully be offered.

'

.

point has

are

'

'

i

'

.

•

■

•

'

i

we
we

Agent:SALOMON BROS.

of last
now on

& HUTZLER

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

Expects
may

.

Series Debentures, less

The

the way.
,

1,. 1968

..

'

back to the level

Nevertheless

1, 1962

July

down¬

only barely been reached, and
have a long way to
go before
are

•*'

beginning of the
sign of increasing oppor¬
for

July

99%

also through one or more Agents and in certain States
exclusively by the Agents as principals. The Corpora¬
tion has initially entered into an agreement with Salomon Bros. & Ilutzler
appointing the latter as Agent,
hut has reserved the right to designate additional Agents. Each such
Agent will he an "underwriter" as that

the

Obviously, the turning

99%

4%

The Corporation reserves the right at any time or from time to time to reject
any offers for any of the
Series Debentures and, by appropriate amendment of the Prospectus, to vary the price at which any of such
Series Debentures are being offered. The Corporation also reserves the
right to terminate the offering as to
any or all Series and to add or substitute Series Debentures of other Series which may hereafter be created.

The

since De¬

continual

%

...4%%

*Plus in each

Offerings to Fannie Mae

shown

year—a

Expansion

Telephone: IIAnover 2-8700

safely

expect the rest
of this
yeai^ to be a period of ex¬
pansion rather than
tion and one of

of

1, I960

...

_

housing starts made
jump from'. 800,000 in

month

July 1, 1961

.

1966 ..'.

940,000 in April. FHA
applications have been
gradually
cember.

99%

.

1965

to

rising month by

...4%%

July

..

1964

private

sharp

Series of

Date

100%

..

1968

seasonally adjusted annual rate of

March

4

% %

...

...

re¬

As the year
develops, the avail¬
ability of mortgage funds should
gradually increase.' Already the

.

.

1962

duce the competition which
mort¬
gage
borrowers have felt from
this source.
•

new

.

1961

few months ago. While
the
demand for corporate funds so far
this
year
has
been
very
high,
there are definite
signs of a level¬

signs point in this direction.

.

Offering Price'

-

even a

ing off in volume, which will

seven

Maturity

ad¬

accounts

getting into much better shape
do
business than they were

1969

Y

has been
drastically reduced. All
this means that these
institution?
are

1, 1968

offer the following

to

Debentures:

commitments of these institutions
are
about at a postwar
low; and

contrac¬

hope rather than




July 24, 1957

Co.,

Robert F. Camden

Fair-

engage

surplus

in

asso¬

Spring Street.

say,

wouldn't

up a

Calif.—Lester
become

Southern Securities, Inc. has been

the

on

has

ciated with Edward T. Cronin

——

about>

He

a

it free.

ad-

connected

^ Beverly Boulevard.

>

was

agains
1 .
free market only if we
are resolved to make it and keep

have

can

become

Bennett.Gladstone.Manmng

just

Y

a

l

next

can

words,

income

favorable

,

to

will bring no securities
business.
Officers
are
suddenly July 16th at the age of
though we can. be
Harold
G
Dempsey,
president; 60. He was proprietor of R. F.
that. with an election
ahead, ho
g
Han.y p> sh,elow. vice_president; Camden & Co., Chicago, dealer in
P
oiitrpr TT
TTine sec
a more popular legislative topic and Oliver H. Hine, secretarv
ta y.
municipal securities.
one

In fact I think it indi¬
that at the present time we

growth

oe

view Road, N. E., to

1956, the

other

months

completed.

the market

bfeeenmaqe

vacan¬

2.?%.

underbuilding; and,

of

Umits

free mortgage market,
Qn the other
hand, it has not
great victory for those who

fast.

very

cates
are

reasQnable

the

Quarter
of

In

six

houses

was

and

Yy^nthfield

distort the mar
seen -how- many

at the beginning, in
spite of the fact that
during that
period about 500,000 new houses

say

eliminated

WOuld put government more firm-

"with

market than

had

will

sharp decline in

a

1957, the vacancy ratio
In

^

This

number

have

we

the lower ranges, it
nowerful push to hous¬

a

Census shows
cies.

been

result

The vacancy situation is favor¬

the

Whiile

efforts

t

ing demand.
able.

have

ac-

pa$e°havf learned'

ticularly in
give

^

toward the
interest
question has practically wiped out

general upgrading 01
income, palcan

tition

tude

faprkfous

mar-

Thls yeai
better ten we

FNMA activity has been restrict-

good.

the future

m^gage

of fronts

score

mands than formerly. Most of the
new forms of government compe-

this year how an unrealistic atti-

of

when

is

a

than it has

with FHA in somewhat better tinuing trend and should
strengthshape to meet current market de- en their defenses

unpreaicxapie .inmg

future

on

private

up

»

tion of government. We have

risinp average

a

mmiiy

our

the

we
shall get off
might have hoped

pretty certain to do

more were pretty
more
y
y

must

we

A^^guaraSor

tse

prosperity,

While

ket

pace. Right now,
chances of reaching 1.1

most

about

upward—slowly,

ord

turned its back
increase in the VA interest

somewhat lustier

Since then it has been
point-

ago.

with

^around llo'l

peak postwar level of
information reached the

bottom

prospect

Congress

we seem

Congress ure willing
government competition

to set up

Next year we should see the
continuance of the revival at a

decline

family

an

in

were

members of

we

or more

000.

teasing" The declTne
IL
incieasing.
the

is

"thai

rate,

Underbuilding

fs

lies

While

not make the million

before

so

true a year ago. But the
growth situation Is also favorable,

_,

discouragement,

mav

and Financial

The Commercial
8

(380)

Chronicle

&

Also available is a

Detroit 26, Mich.

Co., Buhl Building,

memorandum on Brown

McLaren Manufacturing Co.
Company—Analysis—Sutro Bros. &

COMING

Brunswick Balke Collender

Dealer-Broker Investment

Co., 120 Broadway, New York 5, N. Y.
Burmah Oil Co., Ltd. — Analysis — New York

It is

understood

that

send interested

to

firms mentioned

the

will he

4,* N.

Y.

'

ses

&

Manhattan Bank, New York 15,

N. Y.

Broadway, New York 6, N. Y.
,
— Current information

Company of New York, Inc., Ill
New York.

.

—

pany,

Broadway, New York 7,

Review—Study—Harris, Upham & Co., 120 Broadway,
N. Y. •
y'u
"" :r
or Else—Highlights No. 33 on "research-rich
companies" with particular reference to American Research
& Development Corp., Collins Radio, Electronic Associates,
Electronic Specialty Co., Lithium Corp. of America, Metal
Corporation

of America— Troster,

York City Bank Stocks—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y..
\V\
Northern New Jersey Banks—Comparative figures as of June
30, 1057—Parker & Weissenborn, Incorporated, 24 Commerce
'■Street, Newark 2, N. J.

Omaha Club).

Gypsum

data

Jones Averages and the 35 over-the-counter industrial stocks

Calif.)

Corp.,

1

Also available are re¬

Y.

Fla.)

Also available is

zation, 120 Broadway, New York 5, N. Y.
report on Koehring Company.

of

Quebec.

Corporation, 111' Broadway, New York 6, N. Y.
a report on Miami Window Corporation.

Also

the Broadmoor.

'

.

Analysis: Facts & Principles—Plus three weeks

Capital Gain; High Income; Safety—Bache
Co., 36 Wall Street, New York 5, N. Y. Also available is a

Benjamin Lewis Adds
(Special to The Financial Chronicle)

CHICAGO, 111—Paul L. Westfall is now with Benjamin Lewis

Lone Star Cement,

Chrysler Corp., and Atlantic

NSTA

&

Notes

Co., 135 South La Salle Street.

Refining:.

Walter Adds to Staff

Uranium—-Ccmnarative table of contract holding companies—
Nationwide Securities Ltd., 100 Adelaide Street, West, Tor¬

(Special to The Financial. Chronicle)

onto, Ont., Canada,

DENVER, Colo.
*

•

BOND CLUB OF DENVER-ROCKY MOUNTAIN IBA

0

American M. A. R. C. Inc.—Study—Manlv-Markell
11 West 42nd
Street, New York 36, N. Y.
Seal

Associates,

Company, 15 Broad Street, New York 5, N. Y.

Anchor Steel «&

Conveyor Co.—Memorandum—Wm.

C. Roney

ated

&

2nd

Printing

\

—*

Only

,

'

.

chairmen

;

Reservations—A1

.

|

Golf

-

Highlights #3J

-

'

...

Tickets—James

Conklin,

A.

Invitations—Eaton

Or Else"

'

Tournament—Neil

With Geddes,
-

»

GRAND

*

W. Alton Jones, Chairman of Cities
Sendee, recently said:
"The United

States will spend

plant and equipment
alone"
It

.

.

means

search

.

.

.

1962 for

staff

Ormsbee

or

industry must spend

more

and

compelling.

more

for

Bosworth,

Sullivan

&

FLORIDA

Jr., Peters, Writer & Christensen, Inc.

Smith, Calvin Bullock, Ltd.

Charles

Warren,

Merrill

Lynch,

SECURITIES

Pierce,

Bank, Insurance Companies,

Fenner & Beane.

,i

DEPENDABLE MARKETS

Northwest Production

\Si

Florida's
GoldertSf Triangle

Three States Natural Gas

TROSTER, SINGER & CO.
74

TRADING

Special Reports

/

Request

I ALFRED D. LAURENCE
&

Western Securities Corp.
One

Teletypes NY 1-376-377-378

DEMPSEY-TEGELER & CO.



on

Exchange Place, Jersey City, N.J.
Telephone HEnderson 2-1000

Open-end

phone to N. Y. C. HA 2-0185

DEPARTMENT-

TELETYPE MM51

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Industrials

Invest in
re¬

Big Piney Oil & Gas

York

& Co.,

TRADING MARKETS

Delhi-Taylor Oil

Neio

Geddes, Andrews

Co.

King, First National Bank.

else.

Members:

of

Colo.—

has joined the

201 North Fifth Street.

new

the result of research made in 1957

The significance of this statement is

that
.

as

$20 billion in

—

JUNCTION,

-

Publicity—William J. Garrison, Denver National Bank.
Entertainment

Andrews Co.

(Special to The Financial, Chronicle)

Hill, Boettcher & Co.

Prizes—Gerald Peters,

"More Research

the outing are:

Chairman—Robert M. Kirchner, Kirchner,

Wiesner, Inc.

Company,
Building.

&

Walter

First National Bank

Theodore H. Royer

,

for

with

Kenneth H.
become affili¬

—

has

Jr.

Aug. 1 and 2 will hold their

and golf tournament at the Albany Hotel,

Bosworth, Sullivan & Co. i
Committee

•'

on

Denver, and at the Columbine Country Club, Littleton. Tariff
for non-golfing members is $22; for golfing members $25; and
guests $30. Hotel reservations may be made through A1 Conklin,

General
For Financial Institutions

Fairchild,

The Bond Club of Denver and Rocky Mountain Group of the

Investment Bankers Association
annual summer frolic

Kap Corporation of Delaware—Report—Burn¬

SUMMER

OUTING

M.I., Inc.— Progress report—Hay den, Stone & Co., 25 Broad
Street, New York 4, N. Y.

ham and

Traders Asso¬
Convention at

Annual

ciation

regular service including strength ratings of 500 stocks
recommendations—$1—Dept. CF 101, American Inves¬
Service, Larchmont, N. Y

American

(Colorado

National Security

available is

.

1933

Springs, Colo.)

Weyerhaeuser Timber Company—Analysis—Shearson, Hammill

Co., 14 Wall Street, New York 5, N. Y.

3,

29-Nov.

Oct.

Securi¬

Corp.—Bulletin—Aetna

Richelieu/Murray Bay.

Manoir

a

Three Portfolios, for

A.

(Canada)
Association
Canada annual convention at

Investment Dealers'

tors

on

Shamrock Hotel.

at the

with

bulletin

v

June 9-12, 1958

Co., 61 Broadway, New York 8, N. Y.
x
Vitamin Corporation—Report—De Witt Conklin Organi¬

&

;

Analysis—Newburger, Loeb

U. S.

Products

•

April 23-25, 1958 (Houston, Tex.)
Texas Group Investment Bank¬
ers Association
annual meeting

Co., 15 Broad Street, New York 5, N. Y.
Corporation—Analysis—Arthur Wiesenberger &

Transistor

Convention

wood Beach Hotel.

Transamerica

ties

Association
at Holly¬

Investment Bankers
Annual

Co., 50 Broadway, New York 4, N. Y.

Universal

at

1957 (Hollywood Beach,

Dec.; 1-6,

Corp.—Bulletin—Security Adjustment Cor¬

—

(Hot Springs, Va.)

Annual, Convention

the Homestead.

poration, 16 Court Street, Brooklyn 1, N. Y.„
Inc.—Report—Eiselc & King, Libaire, Stout &

&

meet¬

Hotel.

National Security Traders Asso¬
ciation

Securities

Exchange

Stock

of

Nov. 3-6, 1957

N. Y. Also available in Ihe same bulletin are
Lone Star Cement.
»

Kobertshaw-Fuiton Controls Co.

-

ing at Beverly Hills

Company—Analysis—E. F. JIutton & Com¬

Production—Report—Western

*

Firms Board of Governors

Resort Airlines,

in the National Quotation Bureau

Averages, both as to
yield and market performance over a 13-year period —
National Quotation Bureau, Inc., 46 Front Street, New York

&

'

(Los Angeleii

1957

Association

61 Broadway, New York 6, N. Y.

on

10-11,

Oct.

Witter & Co., 45

llobbins—Memorandum—Dean

Punta Alcgre Sugar

Over-tlie-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

of

by a

New York 6,

<•

New

4. N.

Club (to be preceded,
cocktail party, Oct. 9 at the

Country

Ont.,

Toronto,

Hollow

day at the Happy

field

ports on Three States Natural Gas, Delhi Taylor Oil, and
Big I'iney Oil <fc Gas.
Pemi Dixie Cement—Data—Joseph Faroll & Co., 29 Broadway,

Singer Ik Co., 74 Trinity Place, New York 6, N. Y.
Bank Stocks—Second quarterly analysis of 13

Stock Market

West,

Street,

King

50

Exchange Place, Jersey City 2, N. J.

New York City

used

&

Northwest

...

and Vitro

Ltd.,

Hopkins Hotel.

(Omaha, Neb.)
Nebraska
Investment Bankers
Association annual frolic
and

Oct. 10, 1957

Oppen-

—

of

ing at Mark

&
\

Francisco, Cal.)

Stock Exchange
Firms Board of Governors meet¬
Association

.

New

Hydrides Inc.

Biltmore.
Oct. 7-8,1957 (San

Montgomery Street, San Francisco 6, Calif.
National

Yamaichi Securities

Market

York 5,
More Research

Company,

McKesson

Japanese Stock Market—Bulletin—Nomura Securities Co., Ltd.,
61

Corp.—Analysis—Amos Treat

Electronics

&

Corporation—Analysis—Parrish & Co., 40 Wall
Street, New York 5, N. Y.
Maryland Shipbuilding & Drydoek Company—Analysis—Auchincloss, Parker & Iledpath, 52 Wall Street, Nov York 5, N. Y.

Industry—Study—The Chase

Japanese Stocks

Radio

,

Meeting at Santa Barbara

Fall

Also available is an analysis

Marine Midland

-

-

;-.•■

Association

Investment Bankers

Canada.

Street, New York 5, N. Y. Also available is a report on West¬
Co.

(Santa Barbara,

Sept. 25-27, 1957
Cal.)
•
'

Broad Street, New York 5, N. Y.
Life Companies, Inc.—Report—The Milwaukee Company, 207
East Michigan Street, Milwaukee 2, Wis.
Loblaw Companies Limited—Analysis—McLeod, Young, Weir

able: is current Foreign Letter.

Pacif ic Railroad

•

heimer & Co., 25

Canada—Survey with particular reference to British American
Oil Co., Ltd., Canadian Industries, Ltd.,. Dominion Steel &
Coal Corp., Noranda Mines, Ltd., Price Brothers & Co. Ltd.,
and A. V. Roe Canada Ltd.—Thomson & McKinnon, 11 Wall
ern

Wall

Analysis— Dean Witter & Co., 14

—

York 5, N. Y.

Co., Inc., 79 Wall Street, New York 5, N. Y.
- - - Hudson <& Manhattan Railroad Co. — Memorandum

—

Future Growth of the Natural Gas

'

Broad¬

■

Herold

View
Monthly investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬

Columbine Country

ment at the

of Bullock's, Inc.

Also in the same issue is an
and Cott Beverage Corp.,
Coro, Inc., Holly Corp., Creole Petroleum Corp.

frolic and golf tourna¬

summer

Club.

Inc.—Analysis—G. A. Saxton & Co., Inc., 52

Wall Street, New

IBA annual

Mountain Group of

York 5, N. Y.

Fibreboard Paper Products

Industry,

Denver-Rocky

of

Club

Bond

New York 6, N. Y. Also in the same bulletin are analy¬
of Michigan Seamless Tube Co. and Cascade Natural Gas

Co..

1957 (Denver, Colo.)

Aug. 1-2,

1

a

way,

Trinity Place, New York 6, N. Y.

Burnham

^

Street, New York 5, N. Y.
— Analysis — McManus
& Walker, 39

of "American Investor"— American Stock Exchange, 86
Textile

"

Ex-Cell-O Corp.

jet-General Corp., Daystrom, Inc., N. V. Phillips and Topp
Industries, Inc.—Atomic Development Mutual Fund, Inc.,
Dept. C., 1033—30th Street, N. W., Washington 7, D. C.
Atomic Power—Not If but When & How Much—In current is¬

the

■

Corporation—Annual report—Cosdcn PetrolCorporation, 617 Petroleum Bldg., Big Springs, Tex.
Petroleum Corporation — Analysis — Harris, Upham &

Dunham Bush

Report about the beneficial use of atomic energy in medicine,
increased earnings and dividends on its shares of
South African uranium companies and comments on Aero¬

on

■

Co., 120 Broadway, New

University of Michigan

reports

article

,

Cosdcn Petroleum
Creole

sue

4, N. Y.
Broadway, New York

Inc., 30 Broad Street, New York

Field

Investment

& Co.,

Chrysler Corporation—Dreyfus & Co., 50

leum

Atomic Letter (No. 28)—Comments on

Hanseatic Cor¬

In

pleased

parties the following literature:

EVENTS

,

poration, 120 Broadway, New York 5, N. Y.
Canadian Husky Oil Limited—Analysis—W. C. Piti'ield

Recommendations & Literature

,

1957

Thursday, July 25,

...

-

%

COMPANY

|
j|

INVESTMENT SECUXITIES
I
wmmmmmmmmmmMmmmmmmM
.

201 S.E. 1st Ave. Miami, Fla.
Phone: Miami, FRanklin 3-7716

Volume

186

Number 5658

.

.

.

The Commercial and

Financial Chronicle

(381)
find

Oar Reactive Metal Resources
And Industrial

of

Development

(Exploration) Kennccott Copper Corporation

Boyd

describes

the

various

reactive

metals,

established price was instituted.
Within four or five
years
new

an

problems of reactive metals

than those faced

by oil, iron,

almost all of

needs

our

are

available either

friendly countries. Calls attention
uranium

to

domestically

and columbium measures;

close

pos-

and

free

a

economy

mountable problems. Concludes that the location of reactive
metals will benefit our industrial

to

wish

first, before discussing
geographical aspects of re¬

active metal resources, to do what
I

to

can

explode

some

policy

have

been

propounded
often that

have

become

fact.
of

so

they

accepted
The

as

first

these

that

is

the

great
industrial na-

worried

the

United

States,

have

reached

eminent

posi¬
tion primarily

they

mineral

p r e-

possessed

resources.

abundant

Some

of

our

mineral economists, echoed by the

politicians, have taken this posi¬
tion

often

so

theories

mineral

resources

to

van

developed

as

sine

a

I

qua

submit

country the reverse is

our

case—that

the

based

are

greatness.

our

that in

of their

many

policies
presence
of

the

upon

that

and

under

social

a

tain

the

of its

initiative

and

that

have

fallow

lain

veloped

into

otherwise
have

to

tional

industrial

de¬

Once

economy.

incentive

proper

would

been

productive
enter¬
benefit of our na¬

the

prises
the

creativeness

fur¬

was

nished, other countries have also
able

been

mineral
years;

establish

to

enterprises

in

that

resources

dormant for lack of

a

valuable

recent

long

were

proper eco¬

nomic environment suddenly have
I

think

that

productive.

and I
several

you

•immediately
where

and

valuable

become

can

base

active
a

metals,

moment

Only 10
cal

let

tration

workable

deposits

may

deny that

Stdtes, Great Britain, France and
Germany
materially
influenced
'the rapid development of their

economies.

dustrial

similar

a

exists

in

in¬

Nevertheless,

association

of

minerals

Russia, but it has taken

much

time
to
take
under
a
less
stimulating political system.
An
outstandingly interesting and
favorable example of my thesis is
demonstrated
by
the
dynamic
longer,
advantage
of
it
a

growth of the oil and iron ore
industries of Venezuela, stimulated
by the enlightened policies of her

government.
known

have
ment
'

oil

In

contrast,

resources

languished

of

under

the

Mexico
govern¬

expropriation, and potential
address

Southern

before

the

California Section of AIME,

Los

by

Mr.

Boyd

Angeles, California.



that

illustrate

economic

life

ap¬

metals

field

deposits

of

and

reactive

opened

to

the immediate requirements
the crash program
were, with

meet

As long as the total columbium
l-equirement
remains
small,
Nigerian
and
other
by-product
mines

satisfy the markets for
a few years, but
they cannot meet
the
full
requirements
of
the
can

atomic

pyrochlore

age;

deposits

will

be required for this
purpose
this will involve the solution
of difficult metallurgical and eco¬
and

and

quantities
have

been

columbium

produced

metal

from

these

The

mining
await

already experimental
of

sources.

development
and
these deposits must

of

the

demands

of

market

a

the

form of pyrochlore and such
occurs
in large deposits

material

many

found

in

parts

the

United

States,

that shortages

as

in

and

the

We

Congo for

with

the

confidence

that

they have learned to

the

some

"have

a

This

announcement

action?

emergency, when some
are
cut off by enemy

This is the

national

bium

be

effectively,

use

and

colum¬

have

pro¬

made

available

for

their

pur¬

program,
if continued in its present

which,
form, provides the
guards

ality.

against

necessary safe¬

such

for purchasing and
storage are by
no

prohibitive.

means

Before I refer to other reactive

metals, I wish to avoid in

Supplies

in

Friendly

Countries

action
I

by way of illustration, that
necessarily advocate a continua¬
of

these

columbium.

curi-ently

within

our

no

Although there
known

borders,

deposits

supplies

are

available in the hands of fidendly
countries

fact

has

not

inhibited

for

sary

A further lesson is to be learned

is not

not

were

policies.

is

tive and

price support programs.

normal

laws

of

supply

columbium,
ments
From

the

defense

have been
now

more

They reasoned that, given the in¬

centive,
the
people would
tion.

A

ments and the requirements of the

Continued

our

on

ingenuity

of
our
this situa¬

correct

guaranteed

market

at

ISSUE

July 24, 1957

Pacific Gas and Electric
First and

Refunding Mortgage Bonds, Series BB, 5%
Due June 1, 1989

Today the Atomic Energy Com¬
tells

us

self-sufficient
needs

for

There

are

for

some

still

all

foreseeable

to

years

vast

nearly

are

we

come.

this

of

areas

available for future ex¬
ploration and,
based
upon
our
growing knowledge of the geology
of uranium, I predict that we shall
country

be able to find additional
of

reactive

metals

Price 100.798%
Plus accrued interest from

River

as

the

In

of

area

June 1, 1957

sources

they are
meantime,
the
largest known soui'ce is the Blind
needed.

Company

a

price in a short 10
changed the entire picture.

mission

largest coming

us

Copies of the Prospectus may be obtained from any of the several under¬
writers only in States in which such underwriters are qualified to act as

Canada, the second
as a by-product of

Stockpiles

take

within

from

of

dealers in securities and in which the

Prospectus

may

legally be distributed.

Filled

The First Boston

the

example
pei-tinent group

ago—eight

Less

be

to

than

vital to

our

defense

Equitable Securities Corporation

Bear, Stearns & Co.

A. C.

American Securities Corporation

Allyn and Company

available

use

even

in

Schoellkopf, Hutton & Pomeroy, Inc.

L. F. Rothschild & Co.

Clark, Dodge & Co.

all

columbium not
immediately re¬
quired for military jet engines. It
withdi-awn from

Dick & Merle-Smith

Incorporated

Havden, Stone & Co.

was

Wertheim & Co.

needs that

the government, thinking in terms
of the old have-not theory, de¬

stockpile

Salomon Bros. & Ilutzler

LadenbUrg, Thalmann & Co.

cided

to

Ilallgarten & Co.

more

precise
(this
was
before
we
thought much of columbium as
being of use in the reactive metal
field)—the metal was considered
so

Halscy, Stuart & Co. Inc.

Corporation

another

metals—columbium.
years

Company

Wceden & Co.

Incorporated

Baxter &

Coffin & Burr

Incorporated

Francis I. duPont & Co.

Estabrook & Co.

Bache & Co.

G. II. Walker & Co.

applications of considei'able mili¬
tary
Yet

industrial

and
the

px*ojected

quirement demanded
bium

by

available
sources.

several
from,

To

all

importance.
military re¬
more

fold

continue

a

colum¬

than

known

was

more

certed

so

E. F. Hutton &

Company

Incorporated

First of Michigan

Corporation

McDonnell & Co.

Wm. E. Pollock & Co., Inc.

stated

re¬

Ball, Burge & Kraus

Alex. Brown & Sons

Fahnestock & Co.

Goodhody & Co.

far

columbium
to - produce
efficient
weapofrs, a con¬
effort

Hirsch & Co.

R. S. Dickson & Company

world

in excess of
reality was "Stupid!" and "Ridicu ¬
lous," according to the statisticians.
Wiser and more experienced heads
insisted that if the military re¬
quirement

page

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

$60,000,000

worthwhile
years

require¬

than met.

industrial develop¬

on

an

in

should

be

made

to

Gregory & Sons
Stroud &

Company

Incorporated

Ira Haupt & Co.

II. Hentz & Co.

Swiss American Corporation

and

demand are still our most effec¬
tive guarantee of efficient and ef¬
fective production. In the case of

not"

some

neces¬

pxxrposes, there
need for government incen¬

no

The

Except

are

defense

defeatist.

so

every

leaving the impression that
because I have used governmental
way

where crash programs

future and perhaps

Fortunately,

authority

eventu¬

an

Specifically applied to the

tion

poses.

The

NEW

for the

reason

stockpiling

un¬

our

ma¬

development. Here I anticipate the
question: what happens in case of

when

vided the designing engineers with
the necessary data, the metal can

but This

were

in

guar¬

terials need not restrain industrial

position.

Congress,

were

our

lives.

our

a

pated tonnages are not large and
required government expeditures

pi'ocess

through a complex metal¬
lurgical treatment. However,
physical metallurgists can proceed
ores

the

of

acts

ciently economical to

and, therefore, we
world, should not worry about self-suf¬
notably portions of Africa, Brazil, ficiency. Always remember that
and Canada. So far no important never in all of our
history have we
pyrochlore
deposits
have
been been self-sufficient in all metals.
in

px*oduce

interdependence

nations

reactive metals, stockpiling should
be really effective because antici¬

are

containing columbium is in

antee

we

This

sufficient to warrant the construc¬
tion of commercial plants suffi¬

from

terial

between

national

tensive

that

abundance.

supplies

The

ma¬

countries, which in turn
to depend upon us for

had

materials

that

problems. We know today
pyrochlore reserves are ex¬

exception, in foreign countries
—in this case primarily the columbite deposits of Nigeria. The
important exception is in Idaho.
type of mineralized

of other

have

nomic

one

new

industrial
development.
Neither
has the lack of metal sources in¬
hibited the industrial development

nation dependent upon the Belgian

quired
An

to assume

for

crying the blues about the
availability of uranium within

ten

juxtaposition of coal
deposits in the United

iron

reason

countries.

its texritory.

I should be the last to

to

other
the

The

no

gold in South Africa, both friendly

the fortuitous
and

re¬

countries

productive
country is no indica¬

within

metals.

is

12 years ago our politi¬

or

borders.

channeling into

serve

of

leaders, both in the adminis¬

Columbium

that

as

review

us

uranium

our

Let

exist

well

closer to questions of

decade. The absence of

tion

sound

a

reasoning

our

No Uranium Shortage
To get

developments have had favorable
within
the
last

not

with

start

we

and

opportunity
as
geology or geography.

repercussions
mines in any

indus¬

economic

domestic

such

name

further

upon

people, many hidden mineral

resources

that

and

political system granting free rein
to

the

become

we

trial development of the United
States, based upon the location of
presently known resources of
required materials, let us be cer¬

their

present

about

premise

facts

to

of

before

the

tions,
and
particularly

because

similar

reasons.

Therefore,

pre¬

developments pertaining

in

erroneous

theories that

James Boyd

Argentina

for

markets,

for lack of supply

The

minerals

of Brazil and

undeveloped

years

atomic

plicable

resources

remain

the

up

columbium

other

field of atomic power.
I

the

Recent

growth, especially in the

some

in¬

six

new
requirements
age have not yet.
developed sufficiently to support
these mines in renewed
operation.

of

seemingly insur¬

overcomes

the

the

in

Within

size

all

stockpile, had turned to sub¬

stitutes.

are

lus of need" in

of

absorb

result of the

a

the

beryllium; notes that new ion exchanges tech¬
changing and improving the methods of extracting
separating rare earth elements; and shows how the "stimu¬

niques

because

viously dried

sibilities of

,

could

future.

was

such

world

ended,
and
many
mines
that
opened under the program had to

as

refers to intriguing

it

deposit
in

occur

the

new

stockpiles were more than
filled, the procurement program

in

or

to

a

the

of governmental

success

and

columbium

definite

and aluminum, and that

copper,

opened,

assure

metal

of lesser magnitude

are

to

as

metals, and discusses economic pos¬
sibilities, degree of sufficiency, methods, and incentive philos¬
ophy to overcome economic and technological problems. States
that the

of

discovered

the esoteric, rare earth

the

were

there

they do not exist here.

passage
of the
Defense Production Act in 1949 a

mines

including

sources

program of guaranteed markets at

form

Mr.

additional

metal.

Following

By JAMES BOYD*
Vice-President

and

new

the

9

Reynolds & Co.

Van Alstyne, Noel & Co.

28

and Financial Chronicle... Thursday, July 25,

The Commercial

10

(382)

is

coal

The Coal

Industry's Resurgence
Poses Challenging Problems
By HATFIELD

Encouraging demand prospects

j

million tons

631

Association

country

was

lishment

of

at war. The estab¬
this organization re¬

in
national defense, its part in the
massive
productivity
necessary
for victory.
Today, four decades
later, coal is still of the greatest
importance to the American peo¬
ple, by virtue of its enormous con¬
tinuing contribution to our na¬
tional security, to the strength of
the free world, and to the ad¬
vancement
of
this
country's
the significance of coal

flected

peacetime economy.
Looking ahead, the coal indus¬
try's view of the future is, I know,
optimistic, enthusiastic. And with
good reason. Coal is the world's
greatest source of heat and pow¬
er.
It produces more Btu's per
dollar spent on it than any other
fuel.
Nearly 40% of the world's
known supply is under American
soil. And this coal represents by-

billion

consumption

million
lion
to

363

from
to

433- mil-,

1956 should

continue

in

tons

tons

in

1954

The

increase.

should

demand

evident in the
steel industry.
As steel produc¬
tion and coke production expand

particularly

be

to meet the need for both consum¬

industrial equip¬
ment, coal requirements will in¬
crease
correspondingly.
Within
and

goods

er

the next decade the steel industry
should
to

20

require

million

tons

several

And

additional

an

of coal

weeks

a

10

year.

Roger

ago

Food Requirements

65%

increase

by 1975

Somewhat

we

shall have

it

of

less

little

a

—

than

three-

quarters—will be in steam plants,
which are now 75% fueled by bi¬
tuminous coal.

Now, it's not possible to be sure
that these forecasts will turn out
be

to

correct

decimal.

to

down

the

last

indication is
load to supply
our
growing economy will in¬
crease
phenomenally during the
next few decades. The generation
of
electric power
has increased
But

the

that

every

energy

construction

under

are

and

in

planning to meet the almost ex¬
plosive demand for electric power
for homes, farms and industries.
I've
coal

70%

mentioned that bituminous

supplies

now

the

of

fuel

approximately

used

at

electric

far the

greatest part of the United

States' fuel

reserve-

capacity more
than one-third by 1975.
As the
steel industry works to supply a
growing nation's need for auto¬

utility steam plants. If it should
supply no more than this percentT
age in the future, within the next
will require a great deal more

its

crease

annual

the industry revitalized.

ships,
machine
tools,
buildings, and a host of other
products, the producers of coal

All these facts are known. It's not

will be called upon to keep pace.

surprising that the industry is
eager to get on with the job, to
seize the opportunities before it.

According

Moreover,
have

seen

in

recent

years

we

They exist in abundance.
I.

'

Future Need for Coal

Just consider the growth of our

population. Not long ago it passed
the 170 million mark.
there
And

will

as

be

our

200

Before long

million

of

us.

numbers increase, we

shall produce more and more, and
♦An

Mr. Chilson before the
Association
Convention,

address by

National

Coal

country

estimate,

one

need

may

the

much as 160
19757* %

as

million tons of coke by

Overseas, too, the prospects are
bright.
Energy demands are in¬
creasing abroad, and indigenous
fuel production cannot meet them.
There are, of course, uncertainties
in

the

market.

reasonably

say

Of coal which

But

we

that

can

is likely to be very substantial for
years

ahead.

For example,

power

generation

bi¬
tuminous coal per year than it
does now. But the percentage will
probably increase: one estimate is
that by 1975 the electric utilities
will be using as much as 600 mil¬

lion tons per year:
and

gas

boiler
uses.

Moreover, oil

being diverted

ijrom

other

to

higher priced
The stronger this trend be¬

comes,

mand

are

use

the greater will be the de¬
for

coal

for

electric

power

generation.
Adequate Supplies

in for¬

be sold

can

still

electric

decade

amount

the

eign countries, including Canada,

some

Washington, D. C.

to

the

the next

Despite

these

all

quiiernents,
worry about

gigantic

re-

don't
have
to
shortage of supply.

we
a

offering

an

buy
.

any

of

these securities; for sale

or

a

solicitation

of

an

as

offer to

of such securities.. The offering is made only by the Prospectus.
t

.

•

But

let's

now

I recognize that the
picture I have drawn is

problems.
happy

Corporation

a

good way to go to equal its all-

production record of 631 mil¬

time

The bright pos¬

lion tons in 1947.

in

sibilities

the

do

future

not

that suddenly, or even con¬

mean

and downs in response to va¬
in total energy demand

ups

riations

be obtained from the undersigned only
undersigned may legally offer theSe securi¬
ties in compliance with the securities laws of the respective States.
may

in those States in which the

the

energy

Space Corporation

the

of

mine

a

fine

one

and

credit both to

a

problem:

will have to be
modernized. This
expansion, it has been estimated,
will
require enough capital to
finance not just a 100% increase,

worker

and

the

of

mechanization.
be sure,
of

lems

of

roof

of

the

at

certairj

I feel

But

in¬

and

dust

problems will eventually be

solved.

There

is

economic

an

humanitarian

as

a

as

for

reason

and methods, one of the key¬
of economic production is
labor force.
Although

trained

and

decades
the

to turn out virtually

ago

annual

same

production, the
employee is many
The coal miner is

investment per

times

greater.

skilled

artisan, difficult to re¬
the highly competitive
These facts .help
underscore
the
great necessity,

a

place

in

attracting investments is
biggest jobs. Its im¬
portance
cannot
be overstated.
Capital means productive capac¬
ity.
Productive
capacity
must
keep pace with energy demand. If
it does not,
our country's
eco¬
nomic progress will be retarded.
This is a major reason that the
era
which we are entering will

labor

market.

which

I

increase of 150%.

an

ingly,

of your

one

be

of

one

challenge—one

which

am

is recognized,

sure

combating these

new

of

hazards.

Department's Role
I

glad to be able to

am

the

Interior

that

say

Department ^ has

important part in many
of the advances already made in
played

an

American

coal

mining,

in

both

the : test all of coal's
inventiveness,
imagination,
and
competitive drive. The industry
will have to do many things to
meet this challenge.
But one of
the most important things is to
add as much as possible to the

human

safety

Without

partiality,

fine program

that the Department has carefully

will

put

to

of technological and

research which

economic

the

in¬

dustry has begun.

and

I think the coal

interested

to

coal

the

considered
of

tribution

industry

more

make

must

efficient the

min¬

ing, preparation, transporting, and

can

we

plan to

that

of

data

dis¬

the dis¬

on

bituminous

coal.

this work

available

the

and

request

Mines collect

resume

become

industry will be
for example,

know,

seminate factual

and

of course, we

properly do to assist the progress
of the industry.

Bureau

Research

technology.

shall continue to do what

for it.

We

funds

as

The De¬

partment will continue

marketing of its product. It must
try continually to find new uses
for coal in substantial quantities.

its inves¬
tigations on our country's mineral
reserves and on the mining, prep¬
aration,
treatment
and
use
of

It

must

low-

mineral

fuels; it will continue to

coal

concern

itself

more

and

the

production
synthetic liquid fuels.
activities

these

all

about

carbonization,

learn

fundamental

and

research—

applied—is

key. Such research, which is
less

traditional, must

with resolved

be

the

more

pur¬

drive.

a

To the scien¬

fascinating mineral
can

put

turned

into

to countless
countless

Many
come

new

coal
from

be

products.

thousands

from

and

uses

and

coal

which

more

methods

new

gases—

in

that

found for processing

byproducts, the
ties

your

more

industry

new

turn

can

The
be

coal and its

industries.

It will continue to

will

have

In

these

and

government
try

will

other

many

and

the

continue

coal

to

ways

indus¬

work

to¬

gether. But the major part of the
coal
industry's future effort to
challenge must be under¬

taken by the industry itself. In¬
creasing research, attracting capi¬
tal, increasing efficiency — these
are

primarily the industry's tasks.

As you work at them and thereby
contribute to the growth of,the
American

economy,

we

in

government shall do whatever
to help.

the
we

can

for

markets.

And the more opportunities for
interesting prospective investors.
fear

co-¬

operate with the industry in dis¬
seminating information,
and in

opportuni¬

Attracting Investors

I

con¬

safety con¬
ditions, efficiency, and economic
development within the mineral

meet its

chemicals

of

resource

and

stimulating research.

types of research must

new

with

servation, health

With First of

Michigan

Wilson, Johnson & Higgins

•

ventila¬

increased

an

exposure

evolution

creased

well

of

control and

roof

tion, resulting from

these

in

advances

Some

these, to
have brought new prob¬

Accord¬

but

finding

Willis, Kenny & Ayres, Inc.

em¬

ployers and employees. Think also
of the increase in productivity per

is to have its

equipment

expanded

been

miners'
working conditions, in labor-man¬
agement relations.
The record is
in

the
industry employs less than
in 1975, its plants, half the number it emploved two

coal industry

billion ton year
and

have

safety,

stones

Moreover there is this
If the

that

advances
in

made

ery

Capital Needs

economic source, of gasoline.

Shearson, Hammill & Co.

Incorporated




laboratory, as well as about the
place of coal in electric power

searching vigorously for solutions.

explosives, medicines, fer¬
tilizers, paints, plastics.
Coal is
also a source, though not yet an

Van Alstvne, Noel & Co.

'July 24,1957

know
in the

Notwithstanding the technological
advancements in mining machin¬

come

Morgan & Co.

people

adjustments in

and

tern.

chemicals

Scott, Horner & Co.

Don't

letting

to

and consumption pat¬

shifts

to

and

which, through processing,

Bingham, Walter & Hurry, Inc.

and

the in¬
be back¬

on

developments

working face.

tist, coal is

The Johnson, Lane,

the

steady markets. Even as the trend
upward, there will be

continues

But

H. Hentz & Co.

about

rate

also be undertaken.

Johnston,. Lemon & Co.

future.

ward

about

sistently, it is going to have un¬
restrained growth and unlimited,

sued

share

a

De¬

spite coal's resurgence, it still has

or

Common Stock

Caution' is

good companion to optimism.

To

Blair & Co.

exist

all

back to the

come

perhaps too happy'.

from coal of

Copies of the Prospectus

dustry's

most

present time again and face some

gasification,

250,000 Shares

Price $5.50 per

be

will

at
the

by electrical util¬

consider

you

temperature

Altamil

coal

use

It has been found thai in the easi-

circumstances to be construed

is

States

that

try to focus attention

And

decades.

the

But

to correct any

production. There is a good story
to tell. People must become famithese
facts together, you can see why, liar with it if there is to be wide¬
spread public confidence in the
some forecasters predict a Pillionindustry.
ton year for the industry in 1975.
The way ahead does indeed look
It is a story with many brilliant
bright.
chapters. Just think, for example,

The

no

which

in

needed for

more

This advertisement is not and is under

demands for

two

United

eastern

area

greatly in recent years, and addi¬
tional
large new plants already

the steel industry will have to

in¬

hydroelectric • plants.
may be in atomic
But the great bulk

more

mobiles,

.

least

come

now

misconceptions

adequate to supply the entire

country's energy

esti¬

plants.

energy

President of the United
States Steel Corporation, said that

Blough,

in

alone

reserves

problems.

time has

,

The

to 80%.

Commission

Power

be

these

costs;

management

ities.

national energy requirements

will

bitu¬

raised

that

demand

re¬

to spend $96,048,000,000 for new
generation, transmission, and dis¬
tribution facilities.
A small part
of our new generating capacity

sifying the need for coal.
The

indeed

are

economy's expanding need for

mates that

year,

per

figures

Federal

upward thrust is inten¬

minous

are

our

National

Gross

of $500

this

may

rent

will

We're

more.

a

for

Product

and

and

more

heading

coal

of

possibly come to 90 million tons

Energy

'

consume

shipment

overseas

Energy experts estimate that in
the
next
two
or
three decades

problems as plant and equipment expansion and modernization,
technological and economic research, must be successfully
handled to attract enough capital to finance a 150% expansion
increase to meet anticipated future energy demand.
the National Coal
was
founded,
our

By 1967 the total

the next decade.

When

and

In 1917, when

downs,

electric power.

produced in 1947, and that such pressing

it
has had
its ups
and
and it has had powerful
turned on its labor-

years

searchlights

our

soft coal production from 363 million tons in 1954 to 433
million in 1956, and to forecasts made which predict a billionton bituminous coal year in 1975, the Government resource
official tempers this "happy picture" with caution. Mr. Chilson
is mindful that current output is still considerably below the

are

quality which can be mined under
current conditions, and which are
available at approximately cur¬

demand for coal in the figures on

by Mr. Chilson in agreeing with the industry's optimistic and
enthusiastic view of the future. Referring to the jump in the
I

United States alone there

ern

entire energy consumption within

of

assuring.
But there is an even
clearer indication of the future

commented upon

are

for

extensive coal reserves of present

These

Interior

for coal

used

Canada's

one-third

than

more

or more.

CHILSON*

Under Secretary of the

be

to

expected

1957

many
uninformed people
today think of coal as a sick or
dying industry. Over the past 20

(Special to The Financial Chronicle)

DETROIT,

Mich.

Meyerhoven^s
Michigan

Corp.,

members

of

Exchange.

—

now

the

Melvin L.

with First of

Buhl

Buildiilg,

Detroit

Stock

Volume

186

Number

5658

.

.

The Commercial and Financial Chronicle

.

(383)

this

The Business and Economic

the U. S. is

program to

approximately $150 million
than* one-fourth

less

cent of

Determinants of Foreign"

,

•

Federal

our

Proposed

Explains Financing

now

a year

of one pgr?

budget 4

1

Deputy Under

addition

to

the

need

Department of State

supplied

Former Board Chairman, Dillon, Read & Co., New York City

veloped

to

countries

advance.

Former Ambassador to France

enable

Of

the

the

greater part of the necessary cap¬

Former

Wall

Street

investment

observation of how envious

concludes

banker

Europeans

of

are

our

with

ital must

the

tries

Government's

the observation of the great
ness

and! economics in

Soviet

less than $150 million

the

*

During

of

meats

years

my

tremendously

was

the great and

of

our

for

American

long periods of time

It

economic

France I
impressed by

growing importance
and

business
in

foreign re¬
Many

of

powering

drive to better their
status.
They are demanding of
their
governments
that prompt
idly to

habitu¬

ing of foreign

them

apart from the
current'

of

flow

mundane

matters.
found

C.

Douglas

Dillon.

been
the

'

do not

I

and

ness

true

in

past, it

to say

mean

this

have

certainly is no longer the
the post war world.

case

sures.

in

mands

our

of

other

forces,

nations.

such

And

emotional

some

needed

and

in

and

Nevertheless, I found that busi¬
ness

relationships were
cably interwined into the
wcof of

foreign policy.

this

war

has

recognized
of

the

knowledge

now

warp

and

Since the

increasingly

administration

Foreign Service.

our

ing

been

in

inextri¬

of

A

work¬

economics

required for all young

desiring

to

Service.

During the

enter : ti#e

•

is

men

Foreign

early

years

of their service

thej' are required
complete at least one tour of
duty devoted primarily to eco¬
to

nomic

good,
the

matters." This
and

I

can

professional

not conscious of

life

ness

has

is

all

assure

to

you

the

that

diplomat who

is

the facts of busi¬

become

a

rare

and

rapidly disappearing phenomenon.
Foremost Economic Problem
There is
which

has

ticular

is

economic problem
become of par¬

now

importance to

the situation

all. This

us

in the less

devel¬

oped countries of the free world.
There

are
approximately a billion
people in these countries, most of

whom

Points

Out

living under conditions
misery. There
is nothing new about this state of
affairs

as

it

has

been

prevalent
The differ¬

throughout
ence

of

history.
today is that modern

communication

other

methods

of

—

means

radio

leaders.

will

the

labor

ples the realization that there
other

greater

are

people who
live
in
far
comfort than they.
This

has created among

them

an over-

S.

govern¬

extract

by force, the
necessary
to

money

build their economies.

have

the

community,

recent

has

years

been

its

with

operate

ability

serve tours of
duty in the gov¬
ernment, usually at great personal
sacrifice to themselves.
This sit-

the

estab¬

$750

million

two

assured
twauica

following fiscal
of
Ui

can

years.

also make it possible for the fund
production. The need
to work with the less developed
development' assistance will

increasing

the

major

of private enter¬
-

.

Many
Paris

a

time

.

while

I

was

in

did

Frenchmen, Britishers,
Europeans comment on
what to them was this peculiarity
and other

0P XI

rlnselv

f/kpU^ThT'will

ingTources

of

one

free system

our

prise.

American
.

«5v<dpm

Tn

pvprv

erican sJsiem» -■«* every

.

e^dSTas to:
ablT^obtaS^cheup^

MS Bb"

w»h

own

each

continuity, the
wiiuuuj,^,
lilt

fund will he able to work

and

through savings out of their

borrow

Thus,
j-iiLio,

ad¬

they

to

of the

fund

channels

fund

from the U. S. 'Treasury in

emerg¬

to

is

guarantees for the continuation of

h«d teen
j
portfrom the business community.;

by

say

only by adopting

doubt

no

their

up

fensive

the

ginning

to

cians

offer

scale,

during the past decade.
There, economic progress has been
moving at a faster rate than in
any
other
area
of the world.
Though a goodly portion of the
capital necessary for this devel¬
from

come

abroad,

largely from the United States, it
has

been

private

in

the

convenional

dollar

countries

is

This

in

is

not

a

areas.

true for many
in

few

in

on

such

capital is feasible. This

yet

countries
for

reliance

where
of

Asia

of

and

the

Latin

less

of the

Africa,

or

fortunate

America.

Two With Foster, Marshall1
J
■

World

the

Bank

most

and

effective

this
use

to
of

the

as¬

Johnson
now

sistance.

■

(Special to Thb Financial Chrqnjcl6;)

EUGENE,

ensure

our

and

Oreg.
John

—

W.

Arnett
Roth

.v

••

connected with Foster & Mar¬

Stimulate Private Financing
It

is

also

our

view that wher¬

Sellers, Doe Branch

possible, development should
carried on under private aus¬

ever

be

ATLANTA, Ga.—Sellers, Doe &
Bonham
office

in

have
the

opened

a

Fulton
,

through governmental chan- Bank Building, under the direcTherefore, provision has been tion of William Callaway,
made to empower the new De¬
velopment Loan Fund to join with
WUL
private enterprise in carrying outr
lNow With Hodgdon
development projects.
We are
(special to the financial chronicle)
hopeful that this will accomplish
BOSTON, Mass. — Thomas P.
two important objectives—stimuKehoe, Jr. is now with Hodgdon
nels.

late

American

business

to

enter

p

foreign field in areas where & Ca' 10 State Stieet. He
the
capital
risk
might
have formerly with Bache & Co.
the

•

$50,000,000

song

temptation.
also

are

trained
on

be¬

Sears Roebuck

something

Acceptance Corp

techni¬

relatively

a

5% Debentures due July 15,1982

like

$700
It is
vitallv important to us Americans
that these underdeveloped coun¬
million in the last two years.

tries remain free. Their loss to the

Communists

strengthen
render

sible

would

the

Price 100%

immensely

Soviet

Bloc

and

(and accrued interest from July 15, 1957)

it difficult, if not impos¬
maintain the prosperity

to

and

cohesion

frep world.

of

the

Such

remaining

might

success

a

well embolden the Communists to
undertake
would
our

threaten

Prospectus describing these securities and the
within any State from any
Underwriter who may regularly distribute it within such State. The
securities are offered only by means of the Prospectus, and this announce¬
ment is neither an offer to sell nor a solicitation of any offer to buy.
Upon request,

which

liberties

explains why it is in

business of

and

our

our

peace.

national self interest for

own

do

adventures

new

all

reasonably

we

these

can

us

to

a copy

of

a

the Company may be obtained

to help

countries

develop the eco¬
nomic
growth which they must
have if they are to remain free.

Goldman, Sachs & Co.

Lehman Brothers

Halsey, Stuart & Co. Inc.

It is to meet this need for tech¬

nological
the

less

knowledge and to help
developed

tain the

necessary

workers

that

embarked
ance

the

eight

is

core

U.

S.

to

for

program

years.

designed

of skilled
has been

technical assist¬

Four

This
share

which

in

the western

primarily
stration

have

a

been

A. G. Becker & Co.

with

It is

_• *From
a talk by Mr. Dillon before
the
Advertising Club of New Jersey, Newark,

and

nomic

Blyth & Co., Inc.

Eastman Dillon, Union Securities & Co.

Incorporated

Glore, Forgan & Co.

Kidder, Peabody & Co.

Harriman Ripley & Co.
Incorporated

pro¬

devel¬

world.

Kuhn, Loeb & Co.

The First Boston Corporation

ob¬

Lazard Freres & Co.

peonies the skills and tech¬

niques
oped

the
our

Point

or

past

these

on

countries

Merrill Lynch, Pierce, Fenner & Beane

Stone & Webster Securities

Corporation

As such

American Securities

it has

in increased capacity for eco¬

development.

The cost

of

July 24, 1957.

Smith, Barney & Co.

White, Weli L Co.

teaching and demon¬

program.

branch
National

..

out

There

siren

B.
are

shall, 55 West 10th Street.

fective than that which is carried

general
reached the stage in their devel¬

sources

r>

char¬

of

pices. We know that private de¬
velopment is apt to be more ef¬

loans.

have

nho

has

operations

direct

of

and

possible because the Latin Amer¬
ican

Vine?

,

the

ordinary

form

investment

careful and
h

that

*

acterized

the rapid

ideological of¬

Soviets

credits

and

large

this

considerable

back

To

America

has

same

manner

the Com¬

assure

that

mean

take the situation in Latin

can

we

thorough

example of what I

an

these less de¬

can

veloped countries

contains

As

-

the

Soviets

The

growth of their economies.
is

countries in the

thus not prove unending.

This is the

advocated

munist formula

N.




should

effectively. We have asked
Congress to provide an appropria¬
tion of $500 million for the com¬
ing fiscal year and to authorize

capital needs through

paid great dividends in good will

J.~

to

business

work

some

of this

newly

countries

financial

opment

they will

to

seek

peoples

and

gram

disseminating

in

Alternative

Totalitarian
then

these

from

and

news—have brought to these peo¬

is
U.

the

under the control of extrem¬

ist

are

of dire poverty and

that

The alternative is that

This
one

growth—

wish to help these
countries to remain free.

that

Asia

this

are

we

dependent

of

eco¬

particular

fields

two

must act if

Union.

nations

for

supply of capital. It

a

these

Soviet

often far stronger than
pure economic factors.

purpose

obtain their

opment

being

are

they can
to the de¬

peoples

achieve

to

course

Africa,

of

many

increased technological knowledge

strong anticolonial feeling of the
newly in¬

the

as

if

way

their

things

ments

military
have a vital bearing
foreign policy and on that
and

in

Two

fall

on

are

growth.

always determining in matters of
foreign policy, because that is not
Political

peoples

governments,

of

nomic

are

also

the

to the point where

normal

fund

these -

for

Development Loan

needy

and

vance

governments.

,

governments

respond

that busi¬

economic influences

case.

free

newly established, are op¬
under tremendous pres¬
They can only survive as

the

factors

these

by

these

free

I

that al¬

though
may

con¬

and; erating

diplomacy as
something

a

ing

government

,

But

policy

of

for

Fortunately,
governed

ated to think¬

|

improve their living

ditions.

have

us

been

proposing

will be to assist the

factors- and effective action be taken rap¬

lations.

is

The

the

support and understanding of the

to

The

to help supply this need
effectively that the Admin¬

Fund.

where

cases

beginning must
sources

istration

govern-

in

necessary projects.

is

more

even

One of the unique qualities of the
United States Government during

divert

development,
the

foreign
their capital.

of

underdeveloped countries to survive.
in

to
in

to

true

responsibility of the recipient

living of
deliberately

order

is

at

and

to call on the business community
country and help to ensure that for help. Businessmen have gone
by the funds are used for
really to Washington in large numbers

method

is

in

of

resources.

of

lishment

self interest in helping free

own

down

look to

Development Loan Fund to assist newly emerging and needy
point where they can obtain their capital needs
through normal internal and external sources; and (3) at the
time, aid

population

enterprise in, t;he newrjand dev^ioping countries, thus providing

it becomes
necessary to make the
loans
on
unusually
generous
terms. Loans increase the sense
of

coun¬

form

carried

the soundest possible' bulwark for
the cause of freedom,
In order to carry out these programs effectively, it is essential

to avoid the

are

standard

countries

a

the

local

and

resources

countries to the

same

the

driven

per

to the free world's less developed countries; (2) create

year,

in

these

Communist

which

In between these two

observations, the State Department's economic affairs head
explains why we should: (1) continue to supply Point IV
technical assistance, amounting to

labor

However, if they

and growing importance of busi¬

foreign relations.

themselves

local

ability to obtain business community support, and begins with

from

come

be

development assistance in
the form of loans than as
grants,

their

far

by

great, to

This

underde¬

start

to

course,

too

extend

for

"know-how," capital must also be

Secretary of State for Economic Affairs

seemed

alone, and also stimulate private

low rates of interest. Experience
has shown that it is far better to

Development Fund

over

In

By HONORABLE C. DOUGLAS DILLON*

.

Tbe proposed Development Loan
Fupd wfll be empowered to make
lhahs that may either be repaid
in;!local currencies or in dollars

11

Corporation

was

The Commercial and Financial Chronicle... Thursday, July

itiative— to

j

-

»

•

Government discusses such

as

ance

businessman's

tiality

has

As a result, antitrust
cornerstone
of
our
free

regulation.
is

a

society.
Let

what

explain

me

market

competitive

mean.

responsive > to

remains

business

I

to insure that all

Antitrust seeks

pressures

This means that resources are

al¬

located, goods produced, and wares
distributed in response — not to
Government fiat—but

ers' desires

as

to consum¬

expressed in

free

a

market.
When markets cease to be com¬

cisions

mori major

of

Sherman

the

under

de¬
and

Clayton Acts. This guide to what
the law is should be of real help
to those who consider what the
be.

should

law

that, the

Beyond

report sought to aid antitrust en¬
forcement
by creating a
useful

and their
counsel who seek in good faith to
guide

businessmen

to

and, of neces¬
sity, must first know what it is.
live within the law,

have

repeatedly assured
the business community such data
would remain within the Depart¬
ment.

flaunt

lied

of submission

faith

be

to

assurances

re¬

by parties voluntarily cnthese

turn,

would,

assurances

debase

n"o

that

integrity
the operation of a law

to

enforcement

under

agency

our

represen tati ve govern m ent.

Perhaps for these reasons, from
program's
very
beginning,

this

Assistant

Attorney

General

court.

to

As

sion's most important

fidence

the

involved

of

names

details

the

and

the

notice to
and

pro¬

the latest available

submitted.

other

guide

growth. In a
then, antitrust is Gov¬

economic

our

real sense,

ernment action aimed at avoiding

necessity for Government control.

relative
after

to

turn
guidance the

antitrust

what

Department

is

prepared to

offer

American

the

businessman

faith to live within

the law.
years

the

there is

late

Mr.

observed:

"If

ago

Jackson

thing that the people
entitled to expect from their

are

one

lawmakers, it is rules of law that
will

enable

whether they
so,

individuals
are

whom."1

to

quite

married and, if
Almost, but not

important,

as

tell

to

are

guides in

the antitrust field.

The

same

Jus¬

tice,

somewhat

less

commenting

euphemistically
observed
of

that:

litigation

on

antitrust laws,

"One-half

and

century
judicial inter¬

pretations has not made the
either

understandable

or

law
re¬

spected.'^

trust

Division

honor

the

involving this

hazards

of

uncer¬

tainty and increase public

resort

for

imum

by Mr. Hansen before the
Management Association, New

City.

1 Estin

v.

2 Jackson

find

Rev.

the

Estin, 334
and

U.

S. 541,

Dumbauld,

Courts," 85 Univ.
231, 25b (19381.

this

evenhanded
tion




L

re¬

In

justice

of

administra¬

fair

and

required

pre¬

have

merger

clearance.

plained

our

dilemma to the com¬

mittee.

We

expect

will

Congress

We

ex¬

and hope
recognize and

the
re¬

spect the validity of our position.

merger

fied.

business

would

the

shun

clearance pro¬
and this entire enforcement
merger

adjunct would collapse.
you

will

maintains

Congress.

mergers,'

at

This

pro¬

the

Anti¬

instituted

and

recall,

Division

to

ends;

unlike

ment,

a

private

any

decree

consent

agree¬

once

en¬

tered embodies the essential force
of

litigated judgment. As
Supreme Court put it in the
ond Swift
case:
"We reject

the

a

argument

.

.

that

.

sec¬

the

decree

a

en¬

tered upon consent is to be treated
as

contract and not

n

act."

The

tinued,

as

judicial

a

effect,

"is

the Court con¬
one
whether the

all

decree has been entered after liti¬

gation
tuate

by consent."3 To "effec¬

or
.

.

the basic purpose of the

.

original
may

consent

approve

entry.4

decree,"

courts

modifications

after

But if the party onposing

modification can, in the language
of the recent Ford case, show

"ac¬

tual

disadvantage" or "the per¬
of an inequality" stem¬
ming from change, the terms of
the original decree must stand in¬
sistence

tact.5
With this in mind, the Division,
fashioning consent judgments, fre¬
quently consults with those in the
industry, both as customers and

suonliers.
IBM

Negotiating the recent

judgment, for

met

with

others

in

example,
the

we

industry

first, a full understand¬
ing of industry problems, and in¬
companies seeking pre¬
dustry views on effective relief,
clearances to be identi-.
and, second, aid in understanding

Division's

ah-n

Bui here all likeness

to secure,

Protected

Are

compromise.

not

our

identifying the firms seeking

vision's

Penna

arose.

instance, however, I felt the

553.

"Monopolies
of

interesting is¬

program

information.

to

access

trust
"An address

already given.

successful operation of our
representative processes demands
legislative committees have max¬

gram,

American

to

that

tee

York

failed

Committee

Congressional

gram

Study the Antitrust Laws.

prac¬
Anti¬

quested from this Department the
identity of firms seeking merger
clearance.
I realize, of course,

antitrust, Attorney General
Brownell, soon after his appoint¬
ment, set up a National Commit¬
to

a

no

has

head

Sometime ago, an
sue

Were

Study
ease

however,

clearance

a

As

successor.

Confidences

National Antitrust Committee

To

his

on

matter,

A

Some
Justice

change

clearance,

tical

who

seeks in good

situation

market

or

the Department
reserves
the
right to
proceed.
Finally, even absent factual in¬
accuracy
or
market. change,
a
clearance granted by one attorney
general need have no binding ef¬
fect

This broader issue aside, I

industry

the

suggestion

of

supplement the Di¬
own
investigation
of
To

clearance
courage

voluntarily and

procedures

businessmen

on

—

their own in¬

technical

complications of tabu¬
lating and electronic data process¬

machines.

recent

entry

in

one

judgment

clined

Indeed,

could offer
3 United
286

U.

the court
de¬
until the Division

assurance

States

S.

106.

v.

U

S.

5 Ford

States,

&

v.

.

U.

Company,

United States,

556, 562.
Motor
C->mnany

335

had ob¬

114-115.

4 Chrvsler Corporation
316

we

Swift

S. 303,

322.

v.

United

antitrust

needs of each

Judiciary

Committee

1955

more

trust

particular decree.

Emphasizes Joint Stake

let

decree

consent

this

In

the

the

decreasing

atiens
the

current

for

comforting glare of journal head¬
lines.
For example, in the recent

appro¬

Tennessee

on

oihov

band,

have

day of. the
lined

alleged

consent
real

mean

there was,

one

this

one-half

had

In

So

this

—

the

between

settlements

application
erations.

Shirt-sleeve

conferences

formal

trials;

court

replace

«tar»riard" not applicable to'

"dual

Cartels Hamper Business Freedom

unquestionably, the Sher¬
a principle of com¬
petitive behavior which is appli¬
cable to our foreign and to our do-;
mestic trade. In a sense, this con¬
cern
is primarily with the effect:
But,

man

Act sets

affects
to

-

would
sible
the

be

in-

fact, proof of which
difficult if not impos¬

a

contested

Division

violations in

THis,

strike

may
areas

suit.

down

otherwise,

as

a

practical matter, beyond its reach.
From

view,

the

defendant's

encouragement

consent

judgments

point

to '

stems,

ma¬

part, from Section 5 of
Clayton Act.
That staHifo

mits

treble

the

as

prima

facie

it

of

freedom

take

all

advance

of

cartels

may

well prejudice the defense of

this:

at the least by hamper¬
development
of production
technology
in
the
United

country,
ing
and

States.
In

\

addition,

practices

world's

Department of.

strongly urged the end

has

restrictive

ness

-

•

•

our

international
as

a

part

busi¬

of

the

struggle for political and

economic

freedom.

For.

in

re¬

of the free
world's productivity and its stand¬
ard of living, such practice* there-'
the

tarding

bv

weaken

increase

resistance to Commu¬

nism.

Enlightening

business

croups

The NAM. for exa>™le, has

agree.

strongly

condemned

cartels.

It

per¬

plaintiffs to
introduce final judgments or de¬
crees,
rendered
in
Government

defendants,

t1""1

to

international

that

Continued

damage

antitrust actions a<minsf

as

goods'

of

foreign trade and investment op¬
portunities abroad as at home.
And, as in the wartime experience
with synthetic rubber, we know

enter

in

jor

of

Practice

availability

ana

Americans

of

solve issues of

the

imported for the American

be

State

re¬

trade

restrictive

or

ceeding.

mav

op-,

are

their foreign competitors.

bargaining supplants the
atmosphere of an adversary pro¬
disclosure and discussion

cartel

where

legal.
They argue
that antitrust subjects them to a

of

In this informal context,

busi-,
their.

believe

antitrust, particularly in'

to

countries

^rations

lower

the give- and

laws

business op¬

American
to

seem

those

Sine"

savings,
further
advantage stems from the infor¬
mality- of eonsent
negotiations.

antitrust

overseas

mune

less

cost

of

sketch

foreign operations should be im¬

liti¬

judgment entered.
And
more important, it means quicker
relief to the parties adversely- af¬
fected by the acts charged in the
complaint.

the

of

Many

nessmen

complaint

mean

brief

a

final aspect of antitrust

in American

we

—

for

settlement procedures.

pol¬
icy suggested for discussion is the

seme

for

the first

on

Ill

During

time

much

A

example,

for

headlines

In some instances, this pub¬

consent

costs per

take

on

licity, largely avoidable in a con¬
sent
settlement, may prove as
damaging as the remedy, decreed.

do

1954

judgment entrw

Beyond

months, and

probationary sentences. This
double

page.

savings in time generallv stmll
like savings of men and resources,
consent

two

year

problem.

during

cases

for

com¬

averaged onlv 29.7 months
gated

public press that the

more

60.2 months—over five years

filing and

com¬

continued the imposition of

the

23, 1956, fined defendents
$34,000 and placed eight on one-

from/complaint filing to entry
of final judgment. The time lapse
for consent settlements, in sharp

than

in fact, so much

in

sentence

—

contrast,

that

cases,

court

increased

the average litigated case endured
some

In

liquor

ment

on

settlements

period,

sample

abuses.

the

must

cost. cuts.

researched

in

head¬

staffs

prosecution
not only with

And

antitrust

city

each

trial

defendants'

the

of

March

Sliced

;

Contractors

journals

two-week

details

same

only slightly.
cope

Electrical

Chattanooga

case,

In

operation,

by

There a detailed pattern of
abuses may be exposed to the dis- *

the one
1952.
for example, the Division receive-*'
some
692 complaints, but during
the last calendar year, 1956. com¬
plaints jumped to 1.240 — an in¬
crease of almost 100%.
AporopriComplaints,

priations.

hand, have skyrocketed:

smooth

trial.

increasing complaints of
pud

brought

cases

worn

Consent settlements may, in ad¬

protracted trial. Initially,
Division is caught in a vise-

vjeWion

House

July of
75% of all

dition, avoid the possible adverse
publicity of a protracted public

judgments spell, first, effec¬
without'

path

a

the

in

than

antitrust

trod

of

Government victory.

of

between

that

had

process,

me

enforcement

Subcommittee

private

emphasize,
Government
and
business alike have a real
stake.
To the Government, con¬

.

ing

government

proceedings."*' Based on this esti¬
mate, we gauged before the Anti¬

^

the

con¬

private suits have followed

successful

*

should

estimate

Our practice, instead,
is to tailor the extent and form
of
consultation
with other than
defendants
to
the
enforcement
good.

'

Further,

Damage

cludes, "all of the movie litigation
and approximately two-thirds of

.Regarding
all
these
possible
procedures, our view is that any
rigid rule could do more harm

of Gov- 1 viding guidance is our pre -merger posed acquisitions submitted for plaints of violations but also with
clearance.
Thus,
disclosure
is higher evidentiary hurdles. Thus,
ernment conduct in countries like clearance program.
Since 1953,
made by the Department only for more and more of the Division's
Sweden, France, and the United pre-merger clearance has seem¬
the purpose of litigation or after resources
are
devoured
bv
de¬
become
increasingly
im¬
Kingdom bear open witness that ingly
the merging companies have pub¬ tailed market analyses required,
when a given industry becomes; portant.
Here some explanation
for example, by Columbia Steel
licly
announced
seeking clear¬
terms
so
concentrated that the public of
may
be
useful.
By
ance.
So much for this program p"-1
4l"0(C I1, ps well as lv rubloses confidence in its ability to "cleared" the Department means
aimed
to
provide guidance for stitute
products
sncculations
that
upon
the
i n f o r m a t i o n
express itself through free mar¬
which the recent Cellophane de¬
kets, government regulation, or, presently available, we
cto
not businessmen.
cision may be construed (improp¬
even worse, Government
nation¬ currently intend to institute pro¬
'n
'
■ •
erly, we believe) to demand in
alization follows.
ceedings if the transaction is con¬
Second, what about our
con¬
certain instances.
Against this
Such pressures for Government summated.
Thus, at the outset,
sent settlement procedure? Settle¬
background, results per enforce¬
control we in this country have, clearance is based upon the ac¬
ment of any antitrust cause is, of- ment dollar become a
prime con¬
with
few
exceptions,
resisted. curacy and completeness of •facts,
heavily freighted
with sideration in appraising alterna¬
Here credit is due, I would urge, submitted.
Should later investi¬ course,
True, a consent tive enforcement techniques.
to the major role antitrust has gation reveal facts supplied were public interest.
played in maintaining public con¬ cither inaccurate or incomplete, judgment is. like a private agree¬
Consent Cases Save Money
fidence
that
free
markets
will- clearance is of course withdrawn. ment, a product of negotiation and

In short, antitrust seeks
to insure that competitive mar¬
kets, not government regulation,

of Treble

a practical matter, avoidance
of treble damage suits may be a
rqal motive for defendants' enter¬
ing a consent judgment.
For as

At least in one
objector appeared, but
the court nonetheless entered the
as

fu¬

Suits

an

judgment

suits bv

plaintiffs.

As

ulation waxes. The course

persist.

damage

Avoidance

before the court
on
proposed judg¬

provisions.

instance

treble

appear

comment

ment

parties
of

in

re¬

a

sult, interested parties had ample

tive

good

crucial

announced judg¬
provisions well in advance

sent

(]-)/> clearance urogram.

violate

each

ture

approval,

on

t^rino

in

chances of successful

cost

would

all issues determined

of

prior

Division publicly

Thus, for us to specify
companies
seeking

merger

proposed

ment

of

names

the

adjudication.
Exempt
judgment prpvisions.
Carrying from its provisions, however, are
this process one step further, in- judgments entered by consent be¬
the various Paramount judgments fore trial. Thus, defendants agree¬
specifying divestiture details, the ing to consent decrees sharply cut

Attorneys

it

report, this Divi¬
tool for pro¬

this

General

dence

views of complainants

the

to the effectiveness of

as

•

•i

Beyond

Assistant

as

—without exception—had deemed
crucial to hold in strictest con¬

Pre-Merger Clearance Program

petitive, however, history teaches
that demand for Government reg¬

versions,

well

as

a

tive

as

In

sion.

vital On March 31, 1955, that group
rendered its report. Now gathered
stake in effective antitrust. Anti¬
trust, to my view, is the prime together for the first time in one
form of Government action
de¬ place are one authoritative view,
signed
to
obviate
Government and occasionally several alterna¬
business

American

parties submitting
for
Division
specify such confiden¬
prerequisite to submis¬
response, Division staff
mergers

approval

tained

than

most

proposed

welfare.

own

that

fact

overriding instances as national defense as in
of the Middle East Emergency Oil Committee; and

emphasizes why antitrust protects

>

Supporting this conclusion is the

except in such
case

such

the Department.

business defendants;

the

is to function, for
information within

program

keeping

of consent active to both the Government and
reveals importance of anti-cartel policy

advantage

until acquisition has been
completed. On the one hand, em¬
ployee morale as well as market
acceptance of merging companies'
stock may be at stake.
On the
other, business competitors may
be tipped off in advance of the
acquiring
company's
expansion
plan.
Thus, too clear for chal¬
lenge is the necessity, if our clear¬
plans

the extent of pre-merger clearance his
department is prepared to offer businessmen, problems and
mutual benefits involved in consent decrees, impact of anti¬
trust on U. S. overseas business operations, and the American
businessman's vital stake in effective antitrust activity. Mr.
Hansen explains why information obtained in pre-merger pro¬
cedures is held in strictest confidence; points out the cost
disparate topics

rea¬

may
prompt the business¬
man's desire to keep secret merger

HANSEN*

Department of Justice

Principal antitrust lawyer for the

business

of obvious

variety
sons

General, Antitrust Division,

Assistant Attorney

proposed

before
plans
have
ripened into final merger action,
or been bared to public view.
A

The American Businessman
By VICTOR R.

submit

acquisitions

What Antitinst Means to

'

25, 1957

(384)

12

same

evi¬

•

i

ncn

t

page

26

bv Private
Developments in the

Antitrust Enforcement

6 Sec

Parties:

Treble

on

Analysis of

Damage Suits, 61
i

i

Yale L. J. 1010,

Volume

106

Number

5C58

.

.

The Commercial and

.

Financial Chronicle

13

(385)

depends

ion Pattern

fare - in

ber-of
year

Of Lead and Zinc

has
to

The

Consolidated Mining

&

total

produced
the production
cars

not

the

tion

Sales

of

increased

73%

to

comes

Smelting Co. of Canada, Ltd.

of

any given

m

of

more

batteries

have

uses

batteries

complete
an

we

can

increase in the

in

p

the

i

To offset with¬

drawal into government stockpile, which is considered to be

The

unhealthy situation, Mr. Hendricks call upon industry to
do "practical, applied research designed towards
improving
present applications.
making them more economic and
developing new uses which will be competitive with other
an

.

.

United

Kingdom

substantially from

the

materials."

trend,

r

Since the end of World War II,
consumption of both lead
zinc

and

has

in

down

fluctuated

rhythm

with

and

up

increased

de-

varying

of inter-

grees

national

sion,

ten-

but

on

the

average

consumption
of

b

metals,

both

this

on

con-

tinent

has

increased

si.g-

nificantly. BeHendricks

of

cause

the

which

of

important

of

most

were

the

United

Strike

Steel

and

the

Middle

East

year

when

both

new

Crisis,

world
lead

level of the
it

ever

level

1956

from

tlio

from

a

de-

vor>r>vrl

the

preceding

still

was

zinc

new

record

year. How-

remained

measured by

as

and

consumption of

and

Hinprl
plined mndpsflv
modestly

States

Suez

at

good

a

anticipated

Lead

recent stand-

zinc

have

been

tions for

are

^metals

high

purities

available

new

applications.

u

During the ten year period beginning 1947, some very interestinsr

Hpuplnntrihnfc

consumption

have taken

of

i

•

__.r_

been

developments

_x_

_

terials, and in
lost ground

some

in

in

be

and

I

this

world

cases

basis

Ux-

_

of substitute

with

reason-

able

certainty, others were not
quite so obvious, but now that
they are known may be useful as
indicators

of future

trends.

is

of

world

lead

statistics
slab

of

zinc

the
pig

new

for

various

periods, and also figures showing
the

consumption of lead and zinc
various

my

United

industries

States

and

in

in

the

the

United

1

a

not

the

the

Prior to the last war, the United

33%

an

the

of

of

to

European

industry, the
consumption. of
lead

American

and

zinc

Increased

about

to

44%

and 42%

respectively of the world
consumption of these two metals,
During the past decade, with the
European
industry
increasing
consumption
in

other

parts

trend

in

has

recent

of

the

been

this

world,

reversing so that
this country has

years

consumed about 37%

and 38%

spectively of the lead and
used throughout the world.

re¬

zinc

technological

to

In

growth

of lead and zinc has been

various

new

age

In

1.6%
about

States

increase
for

aver¬

year.

this

was

compared

an

per

of about 4.4%

5.9%

the

consumption

lead increased at

United

as

increas¬

during

areas

world

1956

average

*An

aH^ress

the Joint
and

substitution

°£

of

that

i3/*

other

postwar
it

development

the

hand

of

wpThink that
nowevei, ve tnmk inai
™d„p3a_l T ipTl
Tfford to
P}°auMis oi ieaa can aiiora xo

working in close cooperation
with research associations to produce better alloys or better techis

is

somewhat

In

HnWPVPr

ran

w

pa

-

RnVhfpr 7ino Plrfiirp
_

.

tnaether

uses

to

annual

only
a

about

rate

of

Europe.

Free

by

Session
Lead

of

'""'"'c

M»*.
American

Industries

Chicago,




Zinc

Insti¬

Association,

ae-

This very great increase in domestic

the United States has and industrial building in the
despite the construe- postwar period
Since the war

lied prior to

the

war

the

Other

miscellaneous

uses

for

require constant attention by pro-

lead in the United States, although

_

This is under

during the
new

most

other

kept

basic materials

with

pace

or

has

no

States.

there
and

For

Lead

were

34

By the end of 1956
lines in operation

plated

or

under construction.

Continued

on

page

as

a

solicitation oj

an

as an offering oj these Securities jor sale, or as
offer to buy, any oj such Securities. The ojjer
by means oj the Prospectus.

an

ojjer to buy,

is made only
NOT

A

NEW ISSUE

500,000 SHARES

at

exceeded

many years,.the principal
for lead
on
this continent

were

for storage- batteries for lead

alloys,
in

for

and

INC.

CARTER PRODUCTS.

Uses

uses

cable

COMMON STOCK
•

f

($1 PAR VALUE)

•

V

■

covering,

recent

]ead

years
consumption of
tetraethyl fluid has in-

for

creased at such a rate that it

exceeds

lead

for

now

Price $22 per share

cable,

During the ten year period we
are
considering, the use of lead
batteries

for

has

constant- and

about

remained

represents

good

a

relatively steady market for

some

350,000

year.

of

tons

we

in

two

find

that

this

case

per

lead

has

During

the

consump¬

lost

the

decade

'Copies of the Prospectus may be obtained from such oj
the undersigned as may legally offer these Securities .in
compliance with the securities taws oj the respective States.

examina¬
out

to

advancements

counts.

of

lead

closer

upon

on

first few

EASTMAN DILLON, UNION SECURITIES &

the

pounds
battery remained
auite steady at about 26 pounds.

CO.

of lead used per

Then

starting

st»tictir«s

about

indicate

bv

DREXEL & CO.

THE FIRST BOSTON CORPORATION

1955-56

GOLDMAN, SACHS & CO.

technological improvements made

;

HARRIMAN RIPLEY & CO.

to reduce

weight
about

lead

of

20

21

to

the

battery

now

able

to

the average

par

pounds.

battery

batteries

are'
with

substantially longer life than fora

All

situation

of ths

has

where,

CARL M. LOEB, RHOADES &

Secondly,

manufacturers
make

to

resulted

although

SMITH, BARNEY & CO.
WERTHEIM & CO.

in

the

replacement market representing
the bulk of the battery business

KIDDER, PEABODY & CO.

Incorporated

•

it

possible

GLORE, FORGAti & CO.

the

1951,

that

last

,.

five additional lines contem¬

circumstances to he construed
or

-

the rate of population growth.
Principal

did not

Tach pTmfnenCe unt?l' the
.

other
on

in

During the same period, the
rate of increase in consumption of

merlv.

tute

the

in

the

tion.

tion

During the period

years.

rat°

the

too

power

of

On

tion of plants in Canada and m consumption of .lead for sheet and
de
j
there were less
fairly constant.
the United Kingdom, to meet re- pipe has remained fa.rivi.nnctnnt aecaae. in 1^/ tnere were less
Quirements formerly filled from Therefore the outlook for these than a dozen lines for continuous
Ampfipan rvrnrJnpfinn
American production.
applications is not bright and will f_
in operation in the
United

lead or for that matter total lead,
including secondary, has not kept
pace with the increase in popula-

years

to

of

threat

come about

In

only

consumption of

years,

pattern is further illustrated
by the rate at which consumption

1947

metals

wnc

advances,

the United States,

past 10

tion

war

oi

not

are

field

the

period.
seems

advantage of modern science
develop new uses for these

technological

last ten

ferrous

takes

The swing of consumption away
from tMs continent towards a pre¬

in

a

motion and research if further
ducer of the substitute material,
in
themselves, ground is not to be lost.
relatively
small
This isTnevrtable, and"too, Would collectively
are
important, rep- '"'The third most important use
j^e unfortunate unless the industry resenting about 45% of the total, of lead in Britain, storage
bat-

However,

Swing to Prewar Pattern

ing

™im

of

recovery

and

with

pace

three; times-that in 1947

developed oftentimes by the pro-

zinc.

Immediately, after the war, due
largely to the tremendous damage
done

^^ptionoTteadloPSleldiiu?

sheathing

kept

picture

States consumed about 27% of the

lead

cable

_

.

substitution has been

least

Kingdom.

world's

^would

metals.

showing

consumption
and

as

has

nrinrinal

ma-

price

unfortunate.
l±

In order to show trends, I have

appended

wovdd

we

Turning now to zinc consumpbrighter.
The
use
of
sheathed sume that the world consumption tion we find a somewhat brighter
power cable is definitely increas.lead i°r cable sheathing re- picture. Oveiall consumption of
ing and for many applications the mains at about current levels it nnc m thawmg, thhf
'inly satisfactory covering is a
this use will decline in the United of population so that per capita
metal sheath. At the moment lead
Kingdom as production facilities use is on the average a little
>appears to be the preferred metal,
increase in those countries which trtter than a pound per person
^ The consumption of lead for are
presently
importing
cable per year more than it was 10 years
tetraethyl -lead fluid has exhibited
from that source.
ago.
This is largely due to the
the most spectacular growth of
Consumption of lead for sheet increased use of zinc for galvanizany of the uses. In every year
still
of the past decade the consump- and pipe, while ...... the second in£ and ^or die-casting. These
........
,
cable

some instances have

basis

Mrrtr-lrl

predicted

^rSuU

tion in the United States has in- largest application in Britain, is ™o Principal uses rogexner ac
creased so that in 1956 the esti- estimated to be about 50% of
j" SdiV-diuAiiig, the Lntlnuous
„°[v'nizine tuc tuiiuimuus
mntort
punciimntmn
nlmncl
ni'PWflr cnnsiimtltinn. in
snitft of a
Jli
competition mated consumption was
almost prewar consumption, in spite of a
A"
iue cumumuua

_

could

as

•?? ®

cer-

power

rWplnn

-

this substitution has

the

011

metals

and

are

to these materials.

cases,

been

the

obvious

they
resulting

to

number

a

two

were

new

However,

subjected

from

in

Some of these

years,

are

and

will

sonrrps

iead and zinc in recent years have

in

place.

sense

wWch

any
new
applications
have been developed, both

which

lead

niques for the application of lead
sheaths in order to remain competitive. However, even if we as-

which
are

of

In

of

these

developments

ing

in

rapTdlv

the

conditions

forms and very

newer

ards.

they

in

service

applica-

some

sense

The

now

spite

one

great number of

a

another
metals.

in

used

in

use

nuolpar

severe.

have

and which

that

and

metals

tms

f

ris-

more

could

elsewhere.

old

by

be seri¬

tain that the production of

me 10131 111 recent yeais. About
the SR"\e amount of lead is consumed for cable sheathing as is

^nsumed

to

l.ie'e^+^oy J?eap P°wer, it is

Ahnuf

vpar<;

However, this competi¬

not considered

Pasties and other materials and >V£iajis.

ing living standards in Europe and

a

number

factors,

been

the

67%

of the totai in rpppnf

nickel

cost

col-

lectively accounted for about

the

In Britain, because of the high
of coal and the imperative

the

are

which

is

°*

of

one

a

The

order

uses

nfriSl

tho

buses,

,,

ous.

ing, and is being replaced by combination coverings such as Stabpeth
or
by plain
polyethylene
covering for applications where

United States is

which

misleading.

tion

country cable
and pipe, and

the communication field is declin-

place in the

trends

we

continent.

this

try* The cable industry in the
United Kingdom, which is effi-

com-

.

obvious

this

indicate

of

detailed study of this application,
which we have made, we have

rate of increase for lead and
in
Europe
and
elsewhere,

A

zinc

over.

differs

that

that

may

only 3.2%,

was

faster than has taken

and

abroad,

R.

the

for

about 5%, that in the

was

to

♦\
the

!'■

hi be expected to continue with

t

o

world

increase

annual

average

be

gain

but

year

taken

may

material

Similarly for slab zinc, while the

United States

if

a

In

.

hcaw

as

United States. However, this does LO"sumption or ieaa tor smeiaing.
not represent home requirements .
in^vfseems that
as
thp TTnitpd
ic
lhi-cp
lead, both on this continent and
growth in the Industrial Pro- as the United Kingdom is a large
in Europe,
has made the least
duction Index or with the produc- exP°rter of lead covered cable,
progress
of all the major nontion -of .cable.
From
a
rather. some of which comes to this coun-

use

:

world

previous

believe

>

showed

year

continent.

most .important

.

of lead for cable coverL
LOVe*

use

ing last

,

.

' /

mentiqned previously.

bat-

per

husPs

and

.

such

cadmium battery has replaced the
lead battery in Britain and on the

..

J?3 „j°nsu 1T}p t1011

tery, but this average will prob-- sheathing, sheet
ably not,, reach the 26 pounds, batteries in that

of lead

,

.

?nd

trucks

trucks

Consumption
Consumntion
rvun

be¬

soml

in

operation

special annlications

United Kingdom Lead
Kingdom Lead

regis-

car

teries
is small "bv American
standards 'becahse bf
the much
smaller number
of cars
trunks

aTbuse^S

'

United

Canadian mining-smelting executive expresses concern about

consumption lagging behind production.

or. de-

quantity of lead ^on-'.

average

zinc

exhibited

sumed.

In his review of changes in world lead and zinc
consumption,

amount

not

spectacular increases

creases m

As the t.ransi--

volt

probably expect

These
any

proportionately

increase in

twelve

a

number

rather than- the. mim-

trations since 1947.

By R. HENDRICKS*

Vice-President, Charge

the

on
use

July 24, 1957.

CO.

MERRILL LYNCH, PIERCE, FENNER & BEANE

STONE & WEBSTER SECURITIES CORPORATION

WHITE, WELD & CO.

DEAN WITTER & CO.

Be-

20

Commercial and Financial, Chronicle...

The

(386)

14

danger. There is no security, mu¬
tual or otherwise.
.-.v*

"More Yankee TiadeLess

Foreign Aid"

appropriate one single dollar
of
new
money
for foreign aid,
there will be spent not less than
$3.3 billion during the fiscal year
that begins July 1. Additionally,

Castle Films

Former President,

and

Founder

Author, "The Great Giveaway"

billion already ap¬

there are

of

lor

of "dollar diplomacy"
that day with what is said to be their blind acceptance of
present day new kind of extravagant—at public expense-

dollar diplomacy,
better and
at the

more

better

are

neutrals. Asserts our foreign
a substitute for firm for¬
eign policies and sound pronouncements. Outlines more effec¬
tive and less costly aid .program; reproaches our foreign aid
bookkeeping methods; and believes Congress has abdicated
much of its responsibility over appropriations.
then

President

velt urged

softly but carry
United

policy

a

which
be

to

came

known
"d

1

o

a

States

established

as

1

r

a

diplomacy." It
meant the

use

American

of

diplomatic
to

power

promote

Roose¬

nation "speak

our

rolls

our

Motive

that AmeriCastle

W.

Eugene

yell

with a minimum of
risk. However, "dollar diplomacy"
well with the liberals

decried the use
of diplomatic and military pres¬
sure
to
insure
investments, and
dollar diplomacy was roundly de¬
wicked

a

The

the

often

kind

confronted—and

confounded
of

dollar

involves

with

—

the

American

of

use

abroad, but today we are
dealing in billions instead of mil¬
money

nonchalance
bureaucrats

and
in

in

*An

has

sources

We
60

not stop there. Since
began, the Marshall

had

no
parallel in
spending
of
the

of

one

the
re¬

nation for foreign

sent

our

billion

dollars

strong

reaches

of

Mutual

Security. The

earth

the

in

world

is

-still

in

far

quest

prize,

will-o'-the-wisp, elude

address

by Mr. Castle before The
Managers
Club
of
New
York,

the

marching

over

ladle

Washington

of

years

our

way

a

Export

countries

aid.

ever-growing
the

events,

recent

self-interest.

own

1792 to 1950,

our

government collected $406 billion
in

taxes.

..

From

1950

through

1956,

our

government collected $433 billion
in taxes.
For

in

billion

$406

158

fought and won six
$433 billion in 7

we

years,

us.

turmoil

In

ple

India, too,

money

years

Tito

To

we

to

seem

War

that
we
in Formosa

even

and, more recently, with
in

our

allies

Great Britain.
to

support

who,
if the chips were
would not support us. We

cannot buy allies and

friends, but
spend ourselves into
bankruptcy and war.
could

we

not be

Atlas; it cannot, by its
sacrifices, carry all other

nations

of

an

shoulders

the
and

writing, is enroute to the Kremlin.
Tito is now playing coy about re¬
ceiving our free airplanes, while
he again makes goo-goo eyes at
the

Soviets.

Appropriation
time, the giveaway mania has be¬
come
a
non-partisan path to the
Every

offer

buy

to

these

offer

an

securities.

The

to

sell

nor

offering

a

is

solicitation

made

of

an

only by the

offering circular.

world
we

its

on

should

stop

who dare

question their activities

looked

are

upon

as

isolationists,

them.

The

qualified

to act

as

offering circular

a

may

may

money

we

like

more

good

we

The

to

relieve Moscow
overhead

enthusiasms

on

the

already

is

have

in

other

are

part

of

countries

which

210 W. Front

•

MUTUAL

St.

744 Broad St.

Plain field, N. J.

MArket 3-0190

AJew York Phone—REctor 2-9289




direct

have

would

We
to

saved

carrying and transfer charges.
the Polish Communist

The

lift

free,

half

in

resulted.

many

largely

costly Berlin air¬
half

slave

This fatal

responsible

for

Ger¬

error

the

is

pre¬

carious position we find ourselves
in today. This tragic mistake be¬

immediately

came

Stalin.

weakness

our

determined that

and

to

apparent

He detected

be

could

we

pushed around. The Cold War that
has cost

tens of billions of dol¬

us

resulted.

lars

We

still

are

fore friends and foe alike

in's

being
be¬

by Stal¬

successors.

Senator

Knowland,
e r,

membership

of

Atlantic

North

Soviet withdrawal from Hun¬

for

Norway, unlike Hungary, is

gary.
not

satellite.

a

friend and

is

It

Those

of

us

with long memories
the German war

lords

invaded

Norway

their

attempt

to

our needs" and the Moscow
errand boy adds
that President

Eisenhower's statement last Octo¬
to

offering aid to Poland "proved

be

a

sheer illusion."

Under-Secretary of State Dillon,

Republican,
has
become an
eager-beaver sponsor for the new
two billion dollar handout, with¬
a

strings, to be underdeveloped
nations of the world, Dillon, very
out

properly^, and

action

do,

on

thb

a

politely

calls

it

a

exporters will never
an export trans¬

similar basis. If they

sheriff

may

be

looking

lor them.

that

recall

in
all

first,

bottle

up

Scandinavia.

ing

ber

firm

our

independent nation,
own destiny.

an

which determines its

Chief, has already complained that this $100,000,000
is "very small consider¬

Party

handout

the

in

Norway

Alliance in return

will

The

These

are

•

but

few examples of

a

why perhaps we fail to hold the
respect

and

neutrals.
gances

support of allies or
foreign aid extrava¬

Our

will

never prove

tute for firm foreign

a

substi¬

policies and

sound pronouncements.
One month ago.

Senator Lyndon
Majority Leader of the

Johnson,
United

States

Senate

and

a

re¬

spected legislator, stated publicly
that
Congress would not write
any

and
to

"blank checks" for foreign aid
"will not surrender the right

annual

pram"

checkup

on

the

the

TUo+'

Continued

proSenate

on

page

Comptroller of the State of New York
will sell at his office at Albany, New

in

consider

us

a

few

was

(Eastern Daylight Saving Time)

many

$27,860,000
STATE OF NEW YORK

of

these

GRADE CROSSING ELIMINATION
recently announced that

United

States

has

given

that country's fishing

In the

no

a

Philippines

maturing

one

$13,500,000. August 1, 1958-1977

August 1, 1958-1967, maturing $1,436,000

annually August 1, 1958-1967, inclusive.

we

GRADE CROSSING ELIMINATION BONDS

section of that country where

the

backs

of

camels.

In Thailand we started to build

highway for $6.5 million that has
already cost us $18 million for half
of the originally planned stretch
and in a country which has fewer
than 9,000 automobiles.

MATURING

August 1, 1958-1977, maturing $675,000

is available.

Afghanistan we have pro¬
vided
expensive airfields in
a
country where most travel is still
on

follows:

GRADE CROSSING ELIMINATION BONDS MATURING

annually August 1, 1958-1977, inclusive.

In

done

as

(SERIAL) BONDS,

$14,360,000. August 1, 1958-196,7

indus¬

have pro¬
costly electronic micro¬
and technical equipment

power

York

July 30, 1957, at 12 o'clock Noon

Chinese soldiers.

Newark, N. J.

PLainfield 5-3700

all

not wanted.

vided

FUNDS

Americans.

have

Formosa, we have set up a
pension program for overaged

dealer in securities and in which the

BONDS

enemy

of rubble, our politicians and the
Miltary Comander of that day for¬
got to get a road out of Berlin for

com¬

projects:

for

•

so

sent.

it

try!

BERRY & COMPANY

is

it

Half of this
the way. The
be

our

been requested and,

the

be legally distributed.

of its

some

that

soon

sent

This

Moscow.

the

on

half will

other

foreign aid
representatives to stir up projects

scopes

STOCKS

of

anxious to get rid of.

million dollars to Pakistan to bol¬

undersigned is

in Europe. After vic¬
accomplished and the
lands were reduced to piles
war

was

wrong—very wrong. For the emo¬
tions which really influence people

and

It

he obtained from the

which the

tory

that the Canal. We paid for it. We own it.
give away the If we should ever internationalize
accomplish
is

more

Stock

states in

win the

assumption

of

In

Copies of the offering circular

short.

are

us

forget that our
Armed
forces fought,
bled and
died by the tens of thousands to
us

Congressman Roosevelt,
a Majority Leader said a month ago.
Democrat, seriously suggests that
But only a few days ago the
Neither individuals or nations we should internationalize our
powerful Senate Foreign Relations
are made friendly or even
grateful Panama Canal to please Egypt's Committee after reducing the
by handouts. Those who are given Nasser who has shown no desire White House multi-billion dollar
money soon think it is owed to to please us. We built the Panama aid
request by less than 6%, en-

ster

undersigned only in the

of

many

"penny-pinchers"
lacking in vision.

are

Let

share

Too

-

Offers Examples

(Par value lOtf per share)

fleet would be bottled up. The

short-sighted

who

100,000 Shares

Haydn Electronic Products, Inc.

our

memories of most of

Minority Lea d

Washington. For instance:

I nope

investigation. Those

Russian*

some

flying the Stars and Stripes could
nbt enter the canal. In time of war

in

to conduct

cases,

per

legislators

our

have

not

Price

for

loan.

emotional, intolerant

or

forbid,

could decree that ships

Republican
recently pro¬
pelled himself into the headlines
Senator Kennedy, a Democrat is
when he suggested on a TV pro¬
anxious to give away $100,000,000
gram that we barter Norway, for
to the government of Communist
Communist
dominated Hungary.
Poland.
This will not help the
The Senator, in all seriousness, of¬
people of Poland. It will only help fered the idea that we trade the
headlines

"Crusade"

f cjnitp

Common

at

year,

giveaway programs."
Our
foreign-aid careerists are
gripped
in
the
spirit
of
a
—

Heaven

shoved around and humiliated

ignored. It is also wrong
because it leads to frantic efforts

not

improv¬

are

it

iCprpttusgar

Gomulka,

continue

cannot

exporting

His Defense Minister, at this

should

Cold
be losing

still

are

with Moscow

lations

ing.

fighting

a

we

military jets and treasure despite
the fact that the Yugoslav dictator
repeatedly reminds us that his re¬

pletely
is

peo¬

them.

gift

national

advertisement

have 400

administer our giveaway
They can't spend the
as fast as
it is piped to

to

fought one war in Korea without
victory; we fought and are still

—pride, custom, race, religion and

This

we

program.

satellite

wars.

For

of criticism

world

Plan

And, since the billions are
public funds provided solely by
the American taxpayers, there is
amazing

our.

financial

was

told that $17 bil¬
would
do

were

four

resultant

lions.

an

and

But it did

diplomacy. It, too,

the

world

the job.

new

a

the

end.

Plan

war-ravaged

lion
are

But
an

Marshall

Europe. We

countries.
we

to

come

origi¬
nally offered to a skeptical Con¬
gress as a means of rehabilitating

meddling in the affairs of foreign

Today,

end.

an

does not

of

form

that

to

come

of that day. They

as

longer

no

to

heaven

•enterprises

nounced

is

worthy of

Congress
and
to
high
if they can't obtain
President
Eisenhower
once
all of the money they demand—
realized
this when
he
publicly
every billion of it, the world will stated:
"The United States can¬

overseas

did not set

profit

course,

our

From the year

those

Profit

motive. Instead the requesters

our

in

invest

Not

Is

of

light

matter of

down,

Of

could

c a n s

the

We

abroad

terests
so

around.

in¬

financial

for

taxpayer

therefore

are

In

When

overseas.

deal

holiest

more

support.

mistakes, waste and unwarranted
extravagances
result
from
our
big stick," the giveaways, no apologies for the
errors in public spending are ever
made. Instead, the demands for
foreign spending are increased, as
year
after year, particularly at
appropriation time, "new crisis"
and
dangers are brought forth
until the aid budgets are rammed
through the Congress. As soon as
this is accomplished the "crisis"
and urgency
to spend promptly
disappears until the
next year

Theodore

that

money

and

surely the time has arrived for all
Americans, both in and out of
government, to reappraise criti¬
cally our foreign aid spending as
a

the

out

dated, rests in warehouses in Cal¬
cutta and we are probably paying
the storage bill.
r. " •

discuss

to

determined to help themselves

and

prove

the

prefabricated
grain silosi The material, still un¬

what

and, at
Ihe same time, continue to support
those countries whose friendship
we
can
rely on — countries who

respect and support of allies or

Early in the century when

going

am

American

the

Republicans like Senators Kennedy and Knowland, to illus¬
what to him are examples of why we fail to hold the
never

provided $1,500,000

we

trying desperately to obtain $80,000,000 or more a year on top of
we are already giving India.

"Deal"

Better

a

briefly is the matter of getting a

trate

will

I

What

we can

aid extravagances

more

Wants

rely on. . .
The author criticizes many
Americans, in and out of Government, and Democrats and
friendship

than two years.

Mr. Castle critiques "the matter of getting a
honest deal for the American taxpayer and,

time, continue to support those countries whose

same

S7V2

India

They have a backlog of
propriated and in the Washington; $135,000,000 and the International
pipeline to continue foreign aid Cooperation
Administration
is

Comparing the liberals' denunciation
our

views

my

express

not

CASTLE*

By EUGENE W.

I

Before

further, let me make it perfectly
clear that even if Congress did

In

to build hundreds of

Thursday, July 25, 1957

Principal and semi-annual interest February 1 and August 1

payable at the Chase Manhattan Bank, New York City.

Descriptive circular will be mailed upon application to

a

•

ARTHUR LEVITT, State

Dated: July 23,

1957

Comptroller, Albany 1, N. Y.

35

Volume

186

Number 5658

.

.

.

The Commercial and Financial Chronicle

15

(387)

On

European Free Trade Prospects
Under Invisible Tariffs
mon

evaluates

Market scheme and judges those who

see,

as

scheme, the establishment of a United States of Europe
being guilty of unwarranted optimism. The methods of the
Belgians and French to impose an elaborate registration system
to refuse to

recognize foreign patents

participating governments is making good progress, and the chances
are

that,
the

as

original
t i

c

far

as

six
par-

i p a nts—

pared to

participate

in

is

due

in

ment for the

not

wealth

European

benefit of Common-

countries,

in

and

to

part

political

to

neces¬

On

is by far the

more

of

embourg—are

rates

adopted

has declined

will

sult

become

reality

in the

near

fu¬

ture. The ques¬
tion is, w i 1 I

of

the

preferential
Ottawa in 1932

at

considerably
rise

in

the

land
products,
so
preference today is
rather

than

as

re¬

a

prices

of

that Empire
a sentimental

economic

issue.

On

the

are

with

Britain.

Steel

itals.

It

scheme?

nitely

in

statesmen

European Free Trade would

join

Scandinavian
countries and Finland are
engaged
in

devising

Common

North

a

European

Market scheme

of

their

its

own

sign
political death-warrant.

Declaration Weakens Bargaining
Power

own, and Britain has put forward
the European
Free Trade
Area
scheme providing for limited free

spokesmen

trade between

that

Britain

more

by keeping aloof from Euro¬
free trade than by joining in.

all members of the

European Payments Union.
This

scheme

was

recently

It was rather ill-advised

part

re-

pean

christened by Mr. MacmiiJari who
referred to it as "European Indus-

of

Such

trial Free Trade Area"

scheme, to
emphasize the main difference be¬

tween it and the Common

scheme,

namely,

that

Market

agriculture

would be excluded from it.

British
to

necessary

declare

in

stand

public
to

were

of

made ior domestic

sumption, hut they produced

ly exchangeable between the par¬
ticipating countries, land products

true„

some

which

have

subject to the exist¬
ing arrangements.1
British official spokesmen have
made it nlain on manv occasions
that

Britain

would

only

be

prc-

the

con¬

more

effect abroad than at home.
hitherto

is

It

favor.

Indeed

of British Industrie® is
on

Federation
now

keeoor

European Free Trade than the

government itself.

in

Exchanges. Mr.
formerly a partner in
Upham & Co. and prior

was

Harris,

thereto in Hunnewell & Co.

by

Weir, Lincoln Adds
(Special to The Financial Chronicle)

COLORADO SPRINGS, Colo.—
Jamts

1VL.
Raymond
Las
been
added to the staff of Weir, Lincoln
&
Company, Exchange National
Bank Building.

pre-

With Inv. Service
Italy, there is

the

(Special to The Financial Chronicle)

indica¬

no

advantages

DENVER,
Silverman

Colo.

has

Hyman

—

become

as

be

such

Co., First

show

continental

He

that

was

Co. and

Inc..

With Stone, Moore & Co.

their foreign rivals.
genuine economic

no

Western Europe
a

state of

(Special to Tiie Financial Chronicle)

so

affairs

DENVER, Colo.—Frank J. Cook

is

connected

now

with

Stone,

iu

other

many

P.

associated

with Investment Service

se-

them considerable ad¬

over

can

diiuwcu

It

tuiiuijuc.

Aucie

similar

instances

those who believe

cue ]y[oore & Company,817 17th Street,
to

that

uu

„,QB

He

c^„riiiA«

previously with Securities,

was

Inc.

the adoption of the Common Mar¬

are

ket

scheme

would

tablishment of

Europe

other hand, in continental capitals

are

optimism.
in

the

came to choos¬
becoming
a
full

between

partner

or

gether,

the

keeping

with

It

the

mean

United

es¬

States

Nevertheless,

desired

(Special to The Financial Chronicle)

MIAMI, Fla.—Graham N. Shaw

progress

direction

is

With Bache & Co.

^

of

is with Bache &

un-

Co., 96 Northeast

Avenue.

Second

countedly gratifying.

alto¬
alternative

away

former

be chosen.

accordance

a

guilty of unwarranted

ing, and that if it

would

be

traditional

in

Brit

¬

This advertisement is neither
-

an

The

offer to sell

nor a

solicitation of offers-to buy

any

of these securities.

offering is made only by the Prospectus.

yriy

July 24. 1957

19th

century dies hard. There are
still millions of people in J3rilain,
who
would
cheerfully sacrifice
agriculture

at

the

altar

of

their

105,000 Shares

dogmatic free trade creed.
Resort To Invisible Tariffs

4

official

is

British

continent.
ics

much criticism
attitude

of
on

the
the

*

f

•

There

McLouth Steel

Italian and French crit-

•

Corporation

bitterly complain that, while

Britain

.

Beal

is

it is believed that Britain is bluff¬

the

opposed

the

effective

more

secures

long

the scheme unless she is prepared
to join on their terms.
On the

would

protection

and Boston Stock

Market, France and

unification of

bluffing when talk¬
ing about Britain's exclusion from

ing

in¬

industries

interests

scheme have become converted in
its

their

relinquish

There

religious belief in free trade that
developed, in Britain during the

campaign

industrial

is

vantages

counteract

to

Beaverbrook
newspapers against
British participation in the scheme.

They

the

that

it

this

wonder that the view is held

London

the

ish economic liberalism.. The quasi-

While
manufactures would become free¬

would -remain

lose

no

through

send, Dabney and Tyson, 30 State
Street, members of the New York

cured by her refusal to
recognize' National Bank Building.
foreign patents and trade marks
formerly with Carroll &
Italian industries are in a position
Continental Investments,
to "pirate" foreign inventions, and

considered

were

in order

the propaganda

the

Government

would

admissions

on

to

unity when it is defi¬
decided to have the Free

for

is

which

has become associated with Town-

tion that under the Common Mar¬
ket scheme she would be prepared

refusal to

Trade scheme without Britain.

retain

to

As for

European

agriculture

The

Britain's

to

tariff,

in Western European cap¬
would be a bad day for

countries
the

not

Community had caused much

concern

ish

of

committed

would

participate in the European Coal-

British Gov¬
ernment that would sacrifice Brit¬
sake

several

European countries
anxious indeed to ensure
closest possible collaboration

any

the

statesmen

Britain

Britain

lose

to

bound

venting the import of drugs than
the relatively moderate customs

Western

other hand,

Western

hand,

to

Common

ent

re-

very

European

Einzig

emphatically

other

terms

the

other
Paul

confined
are

of drugs by their elaborate
system
of registration of drugs. At pres-

in the matter of

was

to

(Special to The Financial Chronicle)

BOSTON, Mass.—Willis P. Beal

if the

even

Belgium would remain fully protected against unwanted
imports

the

admitted. The question is, which
if any of the two sides is bluffing?

significance

important. The

the

of

be

land and Lux¬

the

favor

the

on

the

scheme

is

Townsend, Dabney Go.

the

various "invisible tariffs." To give
a
concrete example, even under

determination

such

The

concerned,the

provided

Europe,

in

Willis P. Bea! With

criticisms

competition.
continental
countries

Moreover,
intend

Hence

themselves to declarations that

second of these two considerations

any,

and

be

of

continental

weak¬

way

continental

sity of ensuring the prosperity of
agriculture in Britain itself. The

m

that,

in

stand

tensified

to

access

Market

industries

would

asserted.

Italv,
Belgium, Hol¬

France, Ger-

its

position.

Britain's

give
agriculture

to the desire
preferential treat-

the economic and

would

former.

part

to maintain the

restore

to

bargaining

choice

free trade under such reservation.

This

action

Commonwealth

.

European
by the

Common

now

that if it should become necessary
for Britain to choose between the

dogmatic free trade creed."

scheme

They

benefits

Such

overlook the fact

Mr. Macmillan's recent declaration

trade than the imposition of
relatively moderate visible cus¬
toms tariffs. Doubts millions in Britain
would "sacrifice agri¬
culture at the altar of their

Market

Brit¬

freer

market.

be

take

and trade

The ratification of the

participate.

British

manufactures, there

ened

marks, are cited by Dr. Einzig to indicate the greater
effectiveness of these "invisible tariff"
practices in preventing

Common

to

which

on

agriculture

coun¬

attitude

including agriculture, would be
acceptable.
The British Govern¬
ment, realizing that it committed
a
tactical
blunder, hastened to

result of

a

this

drugs, and the Italians

their

the

Market, she is un¬
willing to pay the price for such
benefits
by allowing continental

governments

stiffen

industries

Common

insist that only full participation,

European Com¬

as

on

the

Common Market

is

the

ill

of the scheme

out

towards the terms

the

could

tries

PAUL EINZIG

economist

Britain

of the six
to

British

hand, the official

that

encouraged

ain

Well known British

other

afford to keep
has

By

the

declaration

is

anxious

to

secure

for

5% Cumulative Convertible Preferred Stock
($100 Par Value)

This

is not an offer to sell or a solicitation
of an offer to buy these securities and is
behalf of only those of the undersigned who are licensed or registered brokers or
offering is made only by the Prospectus/

announcement

published

on

dealers in securities in this State. The

NEW ISSUE

Priee $100 per

July 25, 1957

400,000

Western

share

Plus accrued dividends from date of delivery

Shares

Hemisphere'Petroleum

Cop-fa of the Prospectus
»

may

be obtained from

only in States in' which such underwriters
ui

securities

and

in

which

Ike

any

are

Prospectus

of the several underwriters

qualified to act

may

as

dealers

legally be-distrhmted.

Corporation
The First Boslon Corporation

Common Stock
(Par Value $0.50

Eastman Dillon, Union Securities & Co.
per

Goldman, Sachs Sc Co.

Share)
Kidder, Peabotly Sc Co.

Price $5 per

I.azard Freres & Co.

Merrill Lynch, Pierce, Fenner Hi Beane

Share

Cairpbell, McCarty Sc Company

Smith, Barney & Co.

Bear, Stearns Sc Co.

White, Weld St Co.

llornblower Sc Weeks

Incorporated

Wcrtheim Sc Co.

Copies of the Prospectus may he obtained in any State only from such
of the several Underwriters named in the Prospectus and others
us
may
lawfully ojfer these securities in such Stale.

American Securities Corporation

Spencer Trask Sc Co.
Hooker Sc Fay

Sanders

It. W. Pressprich St Co.

Tucker, Anthony St R. L. Day
Nauman, McFawn Sc Co.

;

Bache & Co.

Wm. C. Roney St Co.

Company

Bear, Stearns




&

Co.

Rauscher, Pierce

&

The Ohio

Co., Inc.

Company

Smith, Hague Sc Co.

Watling, Lerchen Sc Co.

Baker. Simonds & Co.

Ball, Burge Sc Kraus

&

Lester. Ryons Sc Co.

Manley, Bennett St Co.

Ch; rL's A. Parcells Sc Co.

Scherck, Richter Company

Harold F. Wood St Company

and Financial Chronicle

The Commercial

16

Thursday, July 25, 1957

...

(388)
Natural Gas Issues Hit
El Paso Natural Gas issues

THE MARKET... AND YOU

build

weathsr

to

first

blows:

some

STREETE

WALLACE

By

had

have

also

plan

a

to

Canada-Cabforn.a

a

Preseiving Three Basic Elements
In Our Free Enterprise System
By GEORGE ME ANY*

pipeline and second from gov¬
ernment attempts to upset its
The

rally remained

summer

isn't

by

clear that acquisition of Pacific North¬
west Pipeline. These do not

any means

Chrysler will have to have a
dawdled, with the "down" year as sharp as those

stalled for the most this week

stocks

as

1954

industrial average

of

ing a
high.

To

consolidat¬
bit under its all-time
Hopes were still high

there

that

would

newed thrust to

old

the

peak

be

a

re¬

forge through

give

and

new

the bullish element.

heart to

Mild Retreat

Despite the failure to make

grade on a vigorous push
couple of weeks ago, the
subsequent setback didn't
spur
any
important selling
a

so

far has still

however.

1956,

there

Chrysler followers

plenty of room in its low
Even

ment.

had

for

margin

profit

in

1955

alter the fact that El Paso
an

is

important gas supplier to
to

along at

run

have

been

National

important

the free enterprise system,

largest in the gypsum field,
steps taken to boost this mar¬
has had a placid market life,
gin and the issue could start
a
good share of the neglect
to iron out the rather violent
stemming from the fanfare
cycles that have afflicted it in
over
lower
housing starts.
recent years.
The shares have just about
managed to carve out a 10-

Individual Casualties

a range of half a
points. Volume, more¬
slid off into a rut typical

point range so far this year,
Despite the high standing
and lately have been avail¬
of the industrial average,
over,
of
of the summer doldrums. In some individual issues have able at a price a score
short, there was little evi- been harshly handled recently points under last year's peak.
if
if
if
dozen

d

of

e n c e

any

v/idespread

the

and

bargain hunters had

Earnings haven't been im¬
*
*
*
pressive,
and aren't being
Confirmation
that, the
prospects were not as bad as projected to any startling
money market would remain the market action would indi¬ levels this year. But National
chagrin.

scan for welldeflated items where the
a

long list to

Gypsum still is busily en¬
tight, provided by the govern¬ cate.
if
if
*
ment moving to a 4 % rate in
gaged in expanding—last year
its latest refunding operation
Easiness in metals gener¬ five new plants were put into
and a peak since 1933 —
ally, possible aviation cut¬ operation — with the current
—

failed to disturb the markets

unduly. The type and matu¬

rity of the securities offered
were in line with expectations
there

so

was

of

little

a

sur¬

prise nature in the operation.
if

s|t

carrying into 1959
ernment
to
offer
price before completion. Projec¬
tions of the earnings at the
guarantees to International
Nickel all conspired to make end of the program run to
it one of the more depressed double or more than the pres¬
of the quality issues, down ent level. Last year sales ex¬
below par from its all-time ceeded the $150 million level

backs and refusal of the gov-

defi¬ peak of 115. On the same
dividend it paid last year the
nitely was that the wishful
yield approaches 4 % at recent
thinking of a move toward
easier money wasn't at
all levels, which is one of the
all

About

it

proved

attractive

more

well founded.

fields

in

program

and the added

expansion now

potential
The
payment at recent price

has raised the sales

$200

above

to

cash

been

has

levels

million.

above-

an

4.V2 % with the im¬
#
«
*
is as assured as it is in the portant strides in sales and
The
market
also
largely nickel business. The aviation
earnings still in the future.
ignored some of the profits cutback threat was
largely
Dynamic Pepsi
squeeze items which in most
psychological because any of
cases
had
been
where

large potential growth

average

A dividend-increase candi¬
anticipated the metal not needed for de¬
feeling fense work would find
date, also enjoying a good
ready
is general that a pickup in fall
acceptance in civilian uses for profit year, is Pepsi-Cola
business will do much to off¬
which is heading for record
which there has been a short-.

advance. The

well in

set the slow first half.

age

for several

Chrysler Pros and Cons

Chrysler was able to show
superior action, including
some
pushes to new high
ground for 1 the

well in

year

advance of its first half

report which, it is

no

profit
secret,

earnings and sales this year.

years now.

Between' cool

Aircrafts Oversold
In
ness

fact,

g

i

n e s

have

in

late

easi¬

could

specific

cutbacks

in

anticipated

be

cases.

jet

en-

ing

1955

to

close to
equalling
full-year figure.

come

that

t-

The
is

that

year

shadow

*

over

Chrysler

its

good results this
have been achieved

largely at the expense of Gen¬
eral Motors and with GM
go¬

this

improved

year's

do

this

with

presented
of the author only.]

"Chronicle."
those

in

necessarily at any
those of the

not

coincide

time

as

expressed

views

| The
article

They

are
'

h

•

fervently

are

.

When

representatives of trade
and employers can work

unions

together,
together

live
at

together and get
sociable
affairs
it

Sptd.vs v/e 11 ox

free

our

terprise

In

o r

t

u-

d

o

TJ

i t

n

most

planes,

it,

basic elements—-free

of

the

others.

for¬

The

mula won't work unless the free¬

today to

free

our

way

of life. That

Communism.

from

The

philosophy of Communism is quite
simple and we owe it to ourselves
to understand it clearly. Freedom
place

no

in

Communist

the

scheme of things, because it is the
very

opposite of free government

and

therefore- cannot

permit
labor

could threaten Soviet Rus¬

spoiled

amputated

and

or

Under

tions

of

before it could

even

become self-

was

the threat to

sustaining.
Communism from

exclusively from

Solely and
little

word

could

not

exist

permit

free

a

so

of the

rulers

other dictatorial rule, the

Everything and

subjugated

is

Hungary and

ing military might.

the

to

There

be some people in
who do not or will
the significance
of the

may

this

country

not

see

lesson of

Hungary to
even

cannot

to the State, which
everybody.
Now, under ordinary circum¬
stances, we in America would .be
enslavement
owns

perfectly

to live and let
Soviet Rus¬

content

If the people, of

sia preferred Communism to free¬

would normally consider
Peaceful

business.

co¬

existence, after all, is fundamen¬
tal to our free way of life.
But the leaders of international

Communism, who do all the talk¬
ing about peaceful co-existence,
have never practiced it and will
never
conform to it.
They don't
dare.
In order to stay in power
they have to erect an iron curtain

'Bnec't.1 to The Financial Chronicle)

shutting off their people from any
real

knowledge

nication

with

or

us.

direct

behind the iron
the opportunity to
conditions

their

commu¬

if

Because

people
had

Soviet

crush the rebellion by overpower¬
un¬

ture. Yet

we

So

Kremlin.

troops and tanks and planes were
ordered to re-invade

exist, because
the State owns everything.
Free
labor
cannot
exist, because the
Communist system is a system of

their

to

was

Private ownership and pri¬

it

land

potentially
too contagious, too dangerous to
the
security of the compulsory
system of slavery enforced by the
by

near

to

profit

dom,

that

Russia

Soviet

free.

close to its borders. Free¬

so

dom

free Hungary?

a

to

everyone

live.

of

reconstruction

and

peace

afford

State is supreme.

State.

chunk

land which would require genera¬

freedom
either
to management.
Communist rule, as

any

der any

in¬

Surely not
Hungary had
no
fighting
of anv kind

Surely not economic competi¬
tion. Hungary was a starved, de¬

Where, then,

is quite clear that there is
overshadowing outside threat

Russia
and

sia.

dom of all is assured.

comes

army,

weapons

no

which

government, free management and
free labor.
Take away the free¬
dom of one and you destroy the
freedom

Hungary?

organized

no

the free enterprise system is made

of three

free

a

military aggression.
George Meany

see

Soviet

did
from

fear

to

dependent

should.
I

what

Now

have

pelling rea¬
sons why they
As

control

country.

d

e

e are com¬

vate

inspiring

surprise, and
of their

by

temporary

won

Yet

States.

forces

cupation

orevail

everywhere in

has

the

of

one

took the secret police and the oc¬

f

not

It

occu¬

labor-

m a n

one

oppres¬

Communist

agement

n

nious

up

intolerable

the

and

sion of Russian

Hungarian students and workers
soontaneously
revolted
against
their foreign masters last October.
Bv sheer courage and daring, they

relations

the

ship

episodes in all human history, the

-

nately.harmo-

thp

people wanted to be free
from the heavy ybke of dictator¬

en¬

s y s

te¬

ll

whose

pation.

Copley Adds to Staff

COLORADO SPRINGS, Colo.—
Douglas Aircraft has also
been hovering near its low, George W. Gear is now affiliated
with
Copley and Company, In¬
although first half earnings dependence Building.
showed a jump of about 40%
Here, too, the backlog predic¬ Joins Hathaway Inv. Corp.
(Special to The Financial Chronicle)
tions are unchanged and high
DENVER, Colo.
Edward L.
level operations are projected
Shelton
is now
with Hathaway
not only
through this year but Investment Corp., 900 South Pearl
through most of next year. Street.
The company's large commer¬

with

the

curtain
compare

those

en¬

.

by the people of a free
country, they wouldn't stand for
Communism very long.

isolationist

our own

fu¬

the most confirmed

cannot

ignore

the

warning uttered by Premier Imre

Nagy in his last broadcast to the
Hungarian people. With the elo¬
quence
which seems to inspire
leaders of men at great turning
points in history, Nagy said:
"I should

like, in these last

mo¬

ments, to ask the leaders of the
revolution, if they can, to leave
the

country. They should turn to
the

all

people

of

the world

and

explain that today it is Hungary
and tomorrow, or the day after

tomorrow, it
other

perialism
know
to

will

countries.

be the turn of

Because

Moscow

of

borders

and

is

the

im¬

not
only trying
does

play for time."
is

That

so

unmistakably

true

that the government of our coun¬

try is spending each year a terri¬

bly high percentage of the earn¬
ings

of

the American people for

conceivable kind of arma¬
strengthen our national

every

to

ment

defenses.

joyed

Internal Threat to Our Way of Life
what

But

all

of

us

in

civilian

—

cial

sales

indicate

that

Wayne Jewell Adds

any

ing into entensive changes for military cutbacks will be
its
50th
anniversary year, pretty much shrugged off.
Chrysler should be in for The backlog currently is half
some
stiff competition. It
military, half commercial.




lofty

inevitably, will
the comparisons

enhance
from

a

when the issue showed

the results
more

levels which,

not

one.

earnings of $11. The first half
of this year alone is
expected

from

far

were

recently outlook.

yet been noted for
thoroughly comfort¬ United Aircraft and
company
The ups and downs
predictions hold to a 20% in¬
from one year to the next,
crease in sales this
year with
however, kept the stock mara $2 billion
backlog still pre¬
ketwise from anywhere near
dicted.
the $101 tag it reached in

will be

last year,

strikes

general

aircrafts

in

overdone

The

the

and

weather

which the Communists

hoping for, and that friendly, cooperative, labor-management
climate helps prevent internal subversion.

second

Gypsum,

idea of trade unions and labor's fulfillment

obligations and responsibilities. Points out that the real
internal threat to our way of life is the possible collapse of

of its

if

if

.

head, this requires management's complete

acceptance of the

a

years away, moreover.
if.

AFL-CIO

the

to

the West Coast and will con¬
tinue

Meany prescribes cocperant rather than conflicting

approach to the sharing of output, "pursued with common
sense
and intelligent self-restraint," to avoid the pitfalls of
inflation and labor-management conflicts. In turn, according

high
improve¬ level. Any competition from
when it
Canada's gas fields is somev

good year, its 6% pre¬
tax margin was well behind
Ford's 17% and GM's 20%.

held inside

Labor Chief

a

There

the

and the retreat

is

and

President, AFL-CIO

DENVER,
staff
818

of

Colo.

Wayne

17th Street.

—

Frank

been added

Jewell

E.

to the

Company,

of

life

Hungary

This, of course, is not just the¬
The facts were made pain¬

ory.

fully clear to the entire world by
the recent tragic events in Hun¬
gary.

(Special to The Financial Chronicle)

Bauserman has

Significance

♦An

Here
address

was

a

by

Mr.

tiny

country

Meany

at

the

Chicago-land Fair, co-sponsored by the
Chicago Federation of Lab~r and the Chi¬
cago
Association of Commerce and In¬
dustry, July 9, 1957.

tary

have to consider is that mili¬

defenses are not enough to
the
way
of life we
and wish to perpetuate.
threat to that way of life

safeguard
cherish

The

comes

not

only from the outside,

but from the inside.
In

other

free

lands

today,

the

overriding internal danger is from

Continued

on

page

29

Volume

186

Number

5658

.

.

The Commercial and Financial Chronicle

.

(389)

shopping

Filling

Securities Salesman's Corner

In the investment business there
is

substitute

no

This

will

give

which

upon

you

investment

that

the

the

very

hire

even

some

and

are

training
go¬

you
spend in study
in keeping up with the ever
changing panorama of the invest¬

and

ment world is money in

will

It

give
in

the bank.

confidence

you

important,

confidence

it

you

will

and,

create

the part of

on

■those with whom you wish

to do
If you are able to dem¬

business.
onstrate

that

it

interpret

open

would

you

fund

a

know

or

and

going to

have

you

information,
get

much and I just wasn't

very

about

During

people

credit

on

enced

salesman

current

the

is

no

to

you

if

market

knows

he

price,

going
hard

it

up

it

this
a

friend

to

sell.

to

But it is
that

you

is

It

of

the

not

builds

it

day I

tired

couple

other

the

tamer's

will

you

is

the

build

confidence

of

calling on a re¬
that had answered

advertisements

them for

noticed

I

that

and,
few

a

the

hus-

trying to convince his

was

common

something

should not
me

give her

that he

which
He

concern.

had retired, that

he had sold some real estate,,and
that since he no longer cared for
the

of

trouble

properties,.,he

watching

had

.

his

over

bought

some

*

stocks.

common

spoke up

it

eco¬

return

essentials,

hard,

read

and

remembered

time

" Then

told

his

wife

that

me

1929, and that

she

some

friends had lost so much in stocks

it.

on

firm

member
now

and

exchange

was

ing
with
referred to
pnd
for

tion.

me

by

the

door

as

the

our

consumes,

open

people

times?

at

have

not

been

render

or

service.

Perhaps too

people

have

a

been

many

obtain

what

on

read between

are

was

going on, and he
appreciative.
If I had
was

mast

who
take

an

background

more

two

not

!

hence,

now

employed

interest

do

in' their

they

usual

is

not

an

who

men

what

know

who

among peoole who
bought securities for
and who have long memo¬

mentioned

understand

to her that

that

she

that peace of mind

could

I

correct

was

important,

was

they are doing,
conservative, deliberate,
informed, and willing to go all

NEW

Texas

stocks which included

oil

panies in the country,
ural

gas

L

chandising

stocks

possible for
dividend
ket

me

we

from

not

one

auote

to

it

without

reference

any

to

data:

relax

conversation

and
was

referring

for

As

we

nart

went

This

without

on

the last thing anv sensible invest¬

would

man

is

so

much

it

pU

came

continued

we

out

the

attempt—there

don't

but

know)

naturally

we

as

discussion.

result

opened.

gnnd-by

a

new

When

tbe

I

wife

account
arose

caid

to

as

was

to
me.

Digitized for much better now, you
FRASER
feel

so

solve

the

problem.

15th

for

local

supply

towns

and

free

more

•,<

attempt to
unless it

work; ing lot.
making

operate

Also, the

retail

a

a

of

verses

the

25th

offer to

BEVERLY

store

competi¬

has

With J. B. Hanauer

from

a

M.

Hanauer

Hanauer &

HILLS,

Calif.—Carl

is

with

now

sell,

nor a

solicitation of

an

offer to buy

any

of

by the Prospectus.
19,

1957

say

"I
see

Stock, Class A
$1.00

per

$19.50

per

Share

Share

firm

^

of

which

may

be obtained from the undersigned only

they

may

lawfully

offer

these securities.

A. G. Edwards & Sons

-in

for

years,

Carl M. Loeb, Rhoades & Co.

formerly

partner ill
Hudson, Stayart &

investment

in

the

was

the

States

banking

-past 28
W. Stayart

such

invest¬

Texas

Louis

Copies of the Prospectus
in

Hemphill, Noyes & Co.

a

Bankers,

Johnston, Lemon & Co.

Dallas,

Granbery, Marache & Co.

Bempsey-Tegeler & Co.

*

>

Texas.

R. S. Dickson &
Pac. States Sees.

Opens

(Special to The Financial Chronicle)-

.

Company

Loewi & Co.

Newhcrd, Cook & Co.

Incorporated

Incorporated
-

OAKLAND,
Calif.—Pacific
Securities Corporation has
,

j

Reinholdt & Gardner

Cruttenden, Podesta & Co.

Laird &

.

been

formed

gage

ficers

in

a

are

with-offices

Center

in

the

Building to

en¬

Company,

Corporation

States

Ellis, Holyoke & Company

Metropolitan St. Louis Company

Stix & Co.

securities business. Of¬
Thomas

F.

J.

Carroll,

Jr., president; John H. Bunce, Jr.,
vice-president:
an-*
wnUam B.

Acton, secretary-treasurer.

Smith, Moore & Co.

B.

'

July

Common

J.

Co., 140 South Beverly

Drive.

ISSUE

Price

in

Chap¬

(Special to The Financial Chronicle)

not

free park¬

more

community

to

closer

I would

close to

was

cities

parking

to their retail stores.

not

30

ter of St. Matthew.

compete with them,, therefore,

is

the first eight verses of the
Chapter of St. John and the

first

Free

(non-voting)

been

busings

Financial

The interview concluded and
a

the part of local retailers

Par Value

any

(certainly this would be

ment

of

use

to

-

Stavart,

has

ment

to

attempt to disolav knowledge
my

.the

mar¬

listen.

no

July

engaged

was

along I noticed that the wife be¬
gan

is

community being
shopping center?

22, 1957.

current

rates, annroximate

new

parking is the greatest attraction
of shopping centers. The best way

ef¬

Mr.

to

on

or¬

who

discuss#3

and

prices and certain background

information

their

State

know

a lot of
children and get them a free edu¬
cation! However, the duty of
pay¬

W.

fective

com¬

a

briefly

i

u

ganization

several others in this category. As
he continued I made a few favor¬

these

and

I

Sr.,

a

able comments. Tk#m

way

ting

your
a

of

s

o

with

an

great nat¬
large mer¬
organization,
and

concern,

only

will

to

the

Stayart,

the

company,

largest steel and automobile

The

—

It was an ex¬
cellent but small list of high grade
common

perfectly safe and
Federal

THE POLYMER CORPORATION

Municipal
Securities
Company,
First
National
Bank
Building,
has
an¬
DALLAS,

thfv had bought.

outstanding

taxes.

have

be
all

beat city taxes is to have

these Securities. The offering is made only

Stayart With
Municipal Securities

stocks

common

from

L. W.

association

the

should

free

70f000 Shares

to

of

and

If
at

help them do the best job
possible with their investments.

and with that I asked the husband
me

of

out to

nounced

tell

to buy turnpike bonds.
Issues
carrying 3 V2 % coupons can now
be purchased in the 70's and 80's

are

ries.
I

is

People want to

business with investment

do

them.

believe in Turnpike
The simplest method of
avoiding Federal and State taxes
you

about my business I
wouldn't jhave known about this

interesting item.

which

Bonds?

day

a

not

years

the city which educated

(6) Do

un¬

pattern

have
>

This

to

schools, and even churches.. Min¬
isters might more
often preach

that she still dH hot want to take

chances.

would

Cities

merchants

'

any

banks

return.

griping,
or
complaining,
about
new shopping centers.
Price-cut¬

an

be

risk

money

young

to

sell¬

profit.

a

in

people go for work
after
graduation—or
the
young
people themselves—will some day
be compelled to send
money back

banks?

more

the

re¬

community as work¬
producers after gradua¬

these

About Shopping Centers?

a

not

is

community, if they will

little
to

thing to do in

keep

the

Is
by

tion

will

there

.

con¬

Otherwise, the community '
has been put to great expense to '
educate them
and
has received

citizens
are
New York to

were

for

ing for schools, highways, fire and
police protection should be
preached
by
the
newspapers,

(4)

This advertisement is neither

four hours

and

What

is

white-collar jobs.
Perhaps there
tirely unofficial and that it was
are too many business offices and
just conjecture and rumor.
His
not
enough
factories,
services,
own
firm did not give him this
information, he had been trying farms, or fisheries. Perhaps those
to

local

demand

tion.

plenty to loan.

young

trained

to

wise

a

now

home,

these

than

more

from

the

in the

and

ers

low; but it is not the thing
today.
For those buying

There

trained

main

grad¬

difficult

now

many

money

would

we

out

people

Because

proctuce

the

gave

work

good

are

it

loss than chance for

a

Reasons for Unemployment

of

so

do

hurt

Why

is

been

stocks

pro¬

store

every

school

1930's when stocks

ing
to

and

more

it

(2)

stock

wide

it,

citizens

the

to the

can

satisfactory.

put into stocks, instead of in¬
it at home.
This might

have

find empty

cus¬

reliable member firm,
but underscored that this was en¬

source

Why do

rented.

this informa¬

mentioned

I

than

client

this

mentioned

left

a

of

another

by

we

and

As young people move"
a community and have chil¬
dren, usually only the father is a
producer.
Children are an asset

vesting

selling more
than they are buying. As soon as
the
community
produces
more

mentioned. In talk¬

to give him

me

in

rate

only

ducing

favorite,

involved

possible

prospective

a

he

he

a

rected

certain

a

.market

a

become

merger,

that

be

Because more money is
going" out of the community than
is coming into it. This can be cor¬

I read a brief coment by one
the statistical organizations of

is

high

too

sending

streets?

days

good,"

it

money

Because

business

don't

and

Several

Why

borrow

"

mind that stores the

a

o n

on

until

gone

into

properly

Reason for Tight Money

(3)

subject.

stores

be

uates!

live.

Regarding
Empty Stores

we

it

unsatisfactory

six

(1)

lation

If we buy a washer, or a
cleaner, or a TV set and

"does not make

let

this

and

not

than have wages or
Most town and city

veniences.

We should be able to do this with

of the

questions

clients.

Roger W. Babson

Cultivate

tomer,

small

very

they had made in certain

told

ex¬

me answer

fumbles.,

confidence.

might

J wife that The modest investment
stocks

vacuum

Therefore,

statistical department for
specialized help, but you must bt
the
focal
point
of
your -cus-,

stock,

was

our

was

trained.

they

who lacks poise that,

schools

to al-

the

securities.;

who

man

the

question

your

Then

savings.

to

the

communities have

any more

are
doing the best
they can to keep taxes down; but
they cannot buck the tide of popu-

I

every

answers

-most

the

reading and study you will
gain assurance. You can rely upon

a good job
have developed

after sitting with
band

young

taught

With

with

you

Comes Confidence

other

minutes,

These

been

important to your clients;
do know these things.

who evades,

of

you

of

have

place in which

a

do and say that bring
prospective client to you. The

one

graduations.

times

so high?
that the taxes of '

say

governments

money

high

nomics

hundreds

up

unemployment,

money,

or

local taxes

are

me

commodities.

for their employers. Some¬
feel that graduates who
cannot get jobs should be returned

many

held

cept

they

investment business.

Skill

Sometimes

a

before

to do

you

If you

successful

things

investment

entrust

earned

combination,

With

month

have

divi¬

the

tight

as:

most

turnpike bonds.

dend rates, the background of not

that

never

you as an

and

for them.

past

cities

part of any experi¬

are

accounts

now

of

where

it,

otherwise

on

their

the

and

school

there

topics

services,

WTiat About Taxes?

do

we

After

years

such

and

Every Day—Study and Learn
many

Covers

we

ago

are

..

lot better and

live."

on

sure

think

I

questions

towns

waste

advisor

•

Somehow

the extra income."

need

ally sold

"•

it.

will sleep a

Your customers must be emotion¬

-

in- stocks

farms,

„

(5) Why

provided answers by financial editor Babson
"The economics of the place in which they

also

are

time

more

invested

are

only 20 to 30 market leaders, but

that

women

ing out to represent them.
The

Young people
to

haven't

we

as

organizations

factories,

fisheries.

First let

Knowledge

carefully

they

classes

and

men

is

its

By ROGER W. BABSON

invest¬

are

Also,

smaller

conducting

It

more

today
the men

representatives.
of

foundation

make sound

can

firms

screening

background.
a

decisions.

encouraging
ment

for

you

center, the more that
community must produce from

Economic
Void for Young People

an

By JOHN DUTTON

The Value of

17

Blewer, Glynn & Co.

The Commercial and Financial
18

Chronicle... Thursday, July 25, 1957

(390)

Americas

between

N
The new office, therefore, will
be
equipped to provide every
banking service under one roof.
This new branch office, together
with the bank's new main office
Robert at 44 Wall Street — now under¬

News About

of

50th and 51st sisting

Streets.

Banks & Bankers

same

par

of

the

director of Chase Manhattan Bank,

1948, and Vice-President on Jan.

New York.

shares

350,000
value.

15, 1951.

#

tt

of

Munroe

Vernon

York

New

In

to the bank

Mr. Bennigsen came

Whytock

as

'

82.

#

He

! ink's Staten

offices

five

J.

Island branches. The
are
located at Port

Richmond, West New

Brighton, St.

York,

N.

Y.,

and Tottenville.
Formerly operated by the Staten
Island
National
Bank & Trust
Company, they became
paid of'

Mr. Heitzman

it

it

Morgan

P.

from the New

&

tive officer of Dollar

Co. Inc., New

received

approval

York State Banking

Department to increase its capital

George, New Dorp

stock

metropolitan
branch system when the merger
of the two institutions became ef¬
Manhattan's

Chase

was

it

from

$30,000,000 consisting

of 300.000 shares
of

$100

of the

par

value

each, to $35,000,000 con¬

of the City of New

W.

Bennigsen
and

President

has
a

Savings Bank

York, and Fred

been

Trustee,

was

announced.

Catherine, who joined the
1936 as Executive VicePresident and a Trustee, was
elected President in 1941. He is a
Mr.

bank

many

ment

tively, in favor of a merger. The
announcement of the agreement,

named

an

which stockholders will

of the bank's

be asked

July 31, was made by
Charles W. Bitzer, President of
the
Bridgeport-City
Trust
and
Lewis O. Waddell, President of

to

appointed
Credit Depart¬
Assistant Secre¬

tary on June 17, 1939,

Conn., voted

Norwalk,

special meetings on July 17 of
the trustees and directors, respec¬

was

in

Bridgeport, Conn,
Norwalk
Trust

at

started his bank¬

departments, he
Manager of the

South

the

Company,

career

elected serving with
it

Trust Company,

and

with the Syracuse Trust
Company on May 10, 1919. After

ing

it

it

Officials of the Bridgeport-City

a

Vice-President since 1955.
'
will be in cnarge of the

ant

1944,

May,

in 1936, was made

of
today has $690,000,000.
Mr. Munroe joined the Morgan
Vice-President of going modernization and due for
%
it
it
the Chase Manhattan Bank, New completion late this year — will organization in 1920.
E. Robert Heitzman, Vice-Pres¬
#
#
tt
York, was announced on July 22 bring to 114 the total number of
ident of the Marine Midland Trust
by Gecrge Champion, President. A Manufacturers Trust Company
Robert M. Catherine has been Company of Central New York,
member of the staff for 30 years, banking
offices throughout elected Chairman of the Board died on
July 14 at the age of 59.
Mr. Whytock has been an Assist¬
Greater New York
and will continue as chief execu¬
appointment

The

,

Mr. Heitzman
Comptroller in completed 25 years of service and
was recognized for his service by
City, a former associate of J. P. 1942, and Vice-President in 1946.
elected
to
the
bank's
Dollar Savings Bank, which in being
Morgan & Co., Incorporated, died
Twenty-Five Year Club."
July 15 at Hanover, N. H. His age 1936 had $93,000,000 on deposit,
«

approve

South Norwalk Trust.

elected As¬

The

sistant Vice-President on July 16,

name

of the combined

in-

fective on July 22.

York

announces

C.

New
of

Company,

the promotion

H. Albert, Jr.
Schutt
from

Alpheus
Pam

it

it

it

Trust

Irving:

and WilAssistant

Vice-President to Vice-President.
Mr. Albert is in charge of the

(Mice.

Irving since 1951.
Mr. Schutt is in

questions about:

Lockheed Management answers your

He

with

Empire State Branch
been
associated

the

h?s

charge of the

Lexington
which
October.
lie

bank's branch office at

and

opened

was

Slreet

48th

last

Avenue

in 1946.

joined the Irving staff

operations of the
National Bank &
Company,
Staten
Island,

Consolidated
Trust

Manhattan
author¬
by George A. Mooney, New
York
State
Superintendent
of
Chase

the

and

Y.

N.

Lockheed's

Island

Staten

Bank, New York, began as
ized

Field

in the Jet

Banks.

month stockholders

Earlier this

voted their ap¬

of both banks had

proval of the merger at separate
meetings;
The merger joins the five offices
of the Staten Island bank, all in
Richmond, to the 94 offices of
Manhattan's metropolitan

Chase

The Staten Island
located at Port Rich¬

branch system.
offices

are

mond, West New Brighton, St.
George, New Dorp and Totten¬
ville; Prior to the merger, Chase

branches
York City boroughs

Manhattan: had
New

*!•

ment of Winfield Bonynge,

R. Coffeen,

Jr., El¬

Joseph Katrausky,
Lawrence IvI.;

Ernest J. Kocsis, and

Vice-Presi¬
I All formerly held the title

dents.

Second

as

Officer,-and con¬
association with the

Investment

of

their

tinue

bank's:

investment

-department.

promoted is Anthony J. Wil ¬
liams, to be an Assistant Secretary
in the foreign exchage and trad¬

Also

ing division.

New York, has

Exchange Bank,

appointed Herman

to its Thomas and
it
announced on July 17 by Har¬
Helm, Chairman.

old H.

it

2. Why is Lockheed building the Electro instead
of

a

for

Com¬

New York has signed a lease

nearly

15,000

square

feet

of

in the new 47-story Time &
Life Building.
space

Trust Company
approval from the
New York
Banking Department
and the Federal Reserve Board
authorities of its application to
open

received

a

branch office in the new

building.

the north¬
of the building to be
the Avenue of the

east corner

located
 on


an

interim airliner or

ment aircraft. It is

re-equipment cycle. To quote American

age

Airlines' President C. R. Smith, the

Lockheed

growing and

is "designed to serve a

and

short-range flights—a part of the business on
which it has always

don't think there's any

been impossible for most

5.

as

other airplane that will

well." Orders for the electra
the 1960's.

What airlines have

With deliberate

intent, Lockheed and several leading

airlines

problem. Drawing upon its

Air Lines,

Braniff International Airways,

National Airlines, Western

Air Lines

an

KLM-Royal Dutch Airlines. Orders to date:
133

prop-jet experience as builder of the C-130

experience unmatched in the

bought the Electra?

Customers to date: American Airlines, East
ern

airlines to make money.

hercules—an

job

should continue strong through

the immediate future —is in medium

6.

planes valued at $247,000,000.

Does Lockheed intend to

build

a

commercia

U.S.—Lockheed designed the electra.
cargo

How does the Electra compare

models of

with latest

piston-engine airliners?

Seat-cost-per-mile of the electra will be
much lower. Compared to

the latest piston-

engine transports—Lockheed's included—the

At

version of the Electra?

present the plans are indefinite—but Lock¬

heed is

fuel saving. In

ratio of payload to total weight,

the electra tops

all competitors, piston and

studying

a

commercial

of the electra's brawny

This

hercules.

cargo

version

brother, the prop-jet

is the C-130 combat cargo

transport that has been in production two
years

prop-jet electra will offer a 30% per-mile

at Lockheed's Georgia Division. Th
now

in service for the 18th Air Fore

and is being

evaluated by the U. S. Marin

C-130 is

Corps.

'

jet. Passenger appeal will come from these
electra

The Bank will occupy

just

major role for years?

volume—and more in

Manufacturers

has

a

prop-jet electra is not just a replace¬
fundamental to the jet-

The

do that

long-range turbojet airliner?

Two-thirds of passenger

3*

Manufacturers Trust

The
pany,

flights.

play

electra

C

:■>

Will the Electra be

will it

important part of air transportation, and I

Ruhm, Jr.

Church Streets Advisory Board,
was

hop-skip-and-jump

types are not competitive, but comT

attacked this

*

*

*

Chemical Corn

D.

ideal for the high-density

business of medium and short-haul
The two

4.

operates efficiently-the fast, high-

plementary.

5»'

Company
of
New-York announces the appoint¬

Pritchard

where it

Trust

Guaranty

mer

scheduled for first delivery in Sep¬

electra,

service).

prop-jet

altitude, long-haul flights. The prop-jet is

I

in

Lockheed is building one: the

faster
airliner now

larger seats; climate-controlled cabin;
flights (60 m.p.h. faster than any

June

Island National on

reported total as¬
sets of.$35,560,000 and deposits of
$31,759,000. Chase Manhattan at
midyear had $7,524,331,000 in total
assets and deposits of $6,693,722,000. 1

jet-powered

tember, 1958. The turbojet pays off only

of this year,

30

o

commercial airliner?

all
except
in

Richmond.
Staten

1. Why isn't Lockheed building

facts: quieter, vibration-free ride;

Powered by

4 Allison prop-jet engines, th

Volume

186

5658

Number

.

.

The Commercial and Financial Chronicle

.

stitution would be City Trust Com¬

offices

pany.

Both offices will be staffed
by

*

Directors

The

of

Pa.,

and

ertown, Pa., have approved
the terms

dent

Tradesmens

the assets and

and

National

will

As

purchase

chase price will be $1,604,250:

of

plan,

which
of

approval
The

is

the

Merchants

of

June

Thomas

to

?•«

supervisory authori¬
ties, provides for the continuance

A

*

❖

received
used

000

of

from

the

increase

to

five

each

*

sale

*

capital

The

Kan.,

*

*

CO.,

THIRI)

Va.,

increased

by

OHIO

June 30,'57

$

par

value $10) by sale

stock effective

July 12.

Deposits
Cash

——

and

U.

S.

rity

317,321,883 323,437,208

due from

banks

84,095,486

Govt,

88,218,362'

84,254,105

»!»

Loans

){♦

National

Bank

of

Youngstown, Ohio, announced on
July 16 that it was offering to its

*

stockholders the right to subscribe

&

Undivided

merged

163,283,396

154,983,026

profits-

4,705,307

3,941,539

*

By

a

increased its
from

(par $10)

the

on

basis

to

capital stock

$200,000

(2,000

$

charter

of

of

Kansas

Mer¬

City and

title Merchants-Produce Bank

effective July 1.
!K

common

$100,000

Bank

»!•

Si!

ton National Bank, Grafton, N. I).

ital

stock

sis

stock dividend The Graf¬

for 66,000 additional shares of
cap¬

and Trust Company, Pitts¬
burgh, Pa., will be opened this fall

under

chants

discounts

*

Merchants Bank of Kansas City,
Kansas
City, Mo., and Produce
Lxcnange Bank, Kansas City, Mo.,

new

Mahoning

$100)

par

.

87,001,504

secu¬

holdings-

of

stock dividend effective July

a

$

350,924,034 355,094,271

resoures

stock

increased from $100,000

was

il.

June 30,'56

its
Total

si:

capital

$200,000 ( 2,000 shares,

TRUST

UNION

CINCINNATI,

#

common,

The First National Bank of Ola
the,
to

FIFTH

19

shares, par value $100), effective
July 12.

*

W.

shares,

new

for

$24 per share.

and surplus accounts.

£

capital stock from $250,000 to $450,000 by a stock dividend
and from $450,000 to $500,000
(50,-

Bank

in
as

be

Price

Boulevard.

gantown,

office of Mellon National

new

Proceeds

Center

common

of Fidelity Trust
Com¬
Pittsburgh, Pa., according to
John A. Byerly, President.
Sji

shares

new

held.

The First National Bank of Mor-

pany,

Bank

two

THE

>

1

Shopping

*

E.

and the bank

the present banking offices
Ouakertown and
Sellersville

Park

of

shares

will

director

to

of

the bank.

Grand

on

iy57, Provident

Millsop of Weirton,
Va., President of National Steel
Corporation, has) been elected a

stockholders

National

of

Monessen

W.

•

subject

au,

Sji

excepting
pur¬

The

according

The office will be located in the

employ¬

Tradesmens.

had total deposits of $415,219,000, and The Merchants Na¬
tional Bank of Quakertown had
deposits of $11,538,000.

the deposit
of The Mer¬

Bank,

Provident.

pany

Provi¬

Federal income taxes and costs in¬
cident to liquidation.
The

the

Hills,

announcement made

an

Tradesmens Bank and Trust Com¬

plan

assume

other liabilities

chants

of

The

a

which

of

Monessen

man

will become officers and

Merchants National Bank of Quakunder

in

on July 17
by Frank R. Denton, Vice-Chair-

ees

Philadelphia,

Tradesmens.

The Merchants National Bank who

Provident

Tradesmens Bank and Trust Com¬
pany,

Provident

the
present officers and employees of

*

n.

of

(391)

The

'

:is

National

Bank

in

North

Kansas City, North Kansas City,
Mo., increased its common capital
stock

from
$100;000 to $500,000
(5,000 shares, par value $100) by

stock dividend

a

The

First

effective July

National

8.

Bank

of

Princeton, Princeton,
Ky., 1 with
capital stock of $100,000 was con¬
Hercules

develops 16,200 horsepower,

tions. Lockheed's airliner of the future
prob¬

pos¬

remarkable short take-off and swift

sesses

rate-of-climb

ably will be supersonic to

capabilities—enabling it to get

into and out of the smallest commercial air¬

ports, anywhere in the world. The

largely dependent

cruises at 340 m.p.h., and its cavernous
cargo

compartment (9'4"

10'3"

x

41'5")

x

and

be adjusted to truck-bed

to the ground to form

a

height

or

drive-up

new

powerful engines.
•

•

Now, in the jet-powered field, Lockheed is busy
building the Electra; the F-104 Starfighter

lowered

(world's fastest jet fighter)

for

ramp

loading. These features! plus two
proven

more

•

quickly loaded via its tail-ramp door, which
can

and continents at

the development of

on

be

can

oceans

speeds beyond sound. When this plane flies is

hercules

the T2V-1 Sea-

;

of

Star jet trainer; the UC-X, new turbojet

reliability and low operating costs,

utility transport/trainer; the C-130 Hercules

years

should win for the commercial hercules

prop-jet combat

as

a

title

Bank

First

Princeton,
July 1.

cargo

carrier; the turbojet

much favor with air cargo operators as the

C-130 has

tude

performing "feats of

won

hercu¬

research)

and developing

v

a

turbojet air¬

all

already building

a

pure-jet trans¬

s

types of aircraft and advanced missile

development has resulted in

a

backlog of

port—a 4^engine utility jet transport/trainer

$1,533,469,000—of which 51% is Air Force,

with both

20% Navy, 29% Commercial.

military and commercial applica¬

8

v

Walter

J.

Smith,

of First
National,
Manager.
Robert F.
Casey is Assistant Manager.

is

branch

Organized in 1865 with charter
No.

1595, the First National is the

oldest bank

in

Alabama.

!'c

»;«

Promotion

of

.

in Bank

Edvyard

J.

Mc-

of

America's Corporation
and Bank Relations department at
head

office

in

San

announced

was

Young,

by

Francisco

Frank

Vice-President

and

sonnel relations officer.

E.
per¬

.

,

Mr.

McGough is contact officer
foivcnrrrppondent banks in North¬
ern California and
is in charge of
transit

and

1929,

the

Mr.

first

statewide

Bank

v

"...

since

McGough received his
appointment in 1947

officer

head

as

collection

correspondent

throughout the nation.

With

of

the

Fe

ment.

Central

Collection

had

depart¬

charge

of

the

OTice Transit and Clear¬

ing from 1949 until

1951 when he

entered the Corporation and Bank
Relations department.

81 )

Pi \ss EN GE RS

Pratt Elected

Gov.

a

Of Inv. Bankers flss'n

-J

or

OL •

PROFIT-

P, \ss EN GE

BOSTON.

70

\ o

*

.

«•-:

partner

«

of

Mass.—Albprt
Paine, Webber,

Pratt,
Jack¬

„

son

&

Cordis,

Tnvestment

Association

4C

\

PI\ss EN GEI

a

gov¬

Bankers

of

America,

t

fleeted

was

the

of

ernor

\

it

has

been

an¬

nounced.

Mr.
yZr,/'
CO

ill 89

ill!

/.fls.

■

Wfi'd

■/,

ii

.

f|tff ft

•

V'.XS.
:

y///'
■///}■:■%/

■fl'///-'//.

is

y%,

\.<yv/y;y fl/y '%

iSS;

■t'&x-'y
5

mm

Pratt,,

formerly

'

0}0Z-

■

sistant

ffljt

As¬

Secre¬

.

CO

"■■U;

f

o
_J

/

t

1

I! 11 m il
■Ji

•

-

®t
if

V"

r^rr

4

f

'

i.

It

"Si ■ II

II

■;

m

T

il tn

1# Si

If

%/'<

;

•

II

V

'

fit

t

f'-'-j/

V-

ill il mwm

fi; %;.C-

m.
"

'

mm

II

si in

tary

.

ss,

V

mm
sss

.

'i

100

500

is

membe

a

the New
V.

mm>

•

1000

1500

2000

of

r

>:

ms-

•

s* ;li?i

2
'

'9-

•:

'
r"

2500

Eng¬

land Group of
the

Invest¬

ment

MILES:

the

of

Navy,

"

'

:

'y/.\ i

if

■

IS

As

Bankers
ociation

s

and

The above chart

illustrates the electka's profit-making capabilities

100 to 2500 miles—under three

different load conditions: 50, 60 and 80

on flights

of

served

its

Chairman

in

1952-1953.

as

,

In 1946, Mr. Pratt

Jackson

tion-wide
in

means

leadership

their

mitted

office

partner

One of a series of messages addressed to the financial community of America

From

Pratt

tary

the

in

&

joined Paine,

Curtis,

here.

firm

He
as

na¬

firm,

exchange

stock

to

corporate




r»a.t

.i

passengers.

Webber,

LOCKHEED

.

tjr

Gough to Assistant Vice-President

makjng all

Passenger Load Profit Analysis

Assistant

an

Vice-President

banks

ELECTRA:

of

*

municipality adjacent to Mobile.

arrangements with

LOCKHEED

Co.,

as'

Mobile, Ala., has opened its fourth
branch office at
Toulminville, a

radar

Lockheed's policy of wide diversification into

liner? If sor when?

Trust

effective

In line with its
policy of ex¬
panding
facilities
to
meet
the
growing needs of the
area
it
serves, the First National Bank of

the

Does Lockheed intend to build

Lockheed is

new

early-warning planes for the Navy and Air
Force.

7.

and

Ky.,

U-2 (a new type of aircraft for very-high alti¬

les" for the Air Force.

state bank under the

,

the world's

across

carry passengers

verted into

was

a

specializing

1950,

ad¬

general

in

underwriting activities.

1954

to

served

Feb.

as

1,

1957,

Assistant

of the Navy.

Mr.

Secre¬

20

The Commercial and Financial Chronicle... Thursday,

(392)

Continued

from

economic studies conducted in this
country indicate that three top industries which allocated 5.7% of

zinc to which is added controlled
amounts
of various impurities,
Whether or not this specific work

applications of zinc by the

future

13

page

industry is the only practical and
feasible course to be taken if this

July 25, 1957

sales to research and development
had a 52% gain in profits. At the
during the 1947-1956 period, while not be important. The important other end of the scale the three
zinc consumption in this country
thing is that some producers and lowest industries which allocated
increased at a rate of 3.2%;
per
consumers of zinc have recognized/only 0.2% of sales to research and
year the consumption
of alumi- the need for research and are -development showed a 3% decline
of
the
tightly
adhering, this continent.
Galvanizing is num increased at an annual rate willing to co-operate in its execu- in profits. It seems to me that it
of about 11.9%. This was brought tion.
•
is up to the Lead and Zinc Inzinc coating, the product the largest user of slab zinc fol-

World

problem of over production is to
be overcome.
As an illustration,

Consumption Pattern

will yield useful results, of course,

cannot be foretold and in fact may

Of Lead and Zinc

cause

ductile

of these lines lends itself to many

lowed closely by brass, with die

about

hot-dipped

casting a very poor third using
only a little better than one-third

and

applications
sheet

where

This

unsuitable.

was

has

contributed

use

zinc for

an ap-

greatly to the
galvanizing, despite

of

preciable reduction in tne pounds
of zinc

required

ton of prod-

per

of the slab zinc consumed by the
other two uses,
During the past ten years the
consumption of zinc in the United
Kingdom
has * remained
fairly

largely

through

extensive

intensive

research

and

what

-

dustries as a whole to decide now
which category we will be in.
If we are to-increase consumption to balance production now
and in the future, the producers

have said for zinc ap-

we

pro-

plies equally to lead. At the presmotion on the part of the alu- ent time lead is
being consumed
minum industry. Wb find that, to- a-j- a
greater rate than new remany people, the word research
serves are being, discovered, and
.

up a picture of a long
scientist, probably a little
working in a secluded
laboratory on some abstruse prob-

conjures

ag

haired

result

a

being

world

gradually

reserves

nf lead and zinc must engage in

are

extensive research individually, in

depleted.

Howthis situation coiild quickly

ever
co-operation with each other and
required for hotreverse itself
We-have heard 'a in co-operation with consumers,
dipped sheets. The estimated con-, steady, exhibiting an average anlem which even if he is successgreat deal about'the research work ■ not only to develop important new
sumption
last
year
for
all nual growth of only one-tenth of,
galvanizing was only about 3.8% one percent as compared to the ful, is of little interest to anyone, that the automotive industry is uses for lead and zinc but to imbelow the previous year as com- 5% per year for the world as a A certain amount of this type of, engaged in in connection with the prove
the natural advantages
pared to a decline of about 18%; whole and 4.3% per year for Free research is essential and provides development
of
a
gas
turbine which these metals have in presthe foundations upon which others
for die-casting.
In fact the zinc Europe
engine for passenger cars. These ent applications.
including
Britain.
Alconsumed for sheet
galvanizing, though accurate statistics are not may
have
the bulk of which is now produced available it is
apparent that the
rosear
on
continuous lines, was almost
greatest percentage increase in
the same in 1956 as it was in the zinc
'
111£ fW litf*
consumption since the war proving present applications pf3S^le^ifTIo%vt^t^&difeSy
record year of 1955 in spite of the
has taken place outside the United zinc, making them more economic WQ could:have a world surplus of
IlillM V!l«;UUi IllUa
and developing new uses which ieedk about
steel strike last year.
;
States and the United Kingdom.
equal to the present
f Philip W. Smith,: Jr.. member
•
will
be
competitive with other- world -!surplus-irof -jzinc.',
The American Die Casting InAlso,**'i#>:Esdiafrgetf
Turning back to consumption in
materials.
v
^: v; new> major
uses/for lead? have on Aug. 1 will become a .Vicestitute has recently issued a report Britain we find that consumption
for the year 1956 which reveals for
Need For Research
galvanizing has made the only
7
;V been developedA in recent years, president of Walston & Co.. Jnc.,
some very interesting information,
progress,
having increased at a

uct

from

that

untidy,

,

Easier J mentioned

of^zinc

Requirements

;

casting

in
tons

50,000

ceptional

less

for

although

1.956,

than

in

die

some

the

ex-

1955, were still
about 100,000 tons greater than in
the next highest year in the 194756 period, and 72% above that in
year

1947.

~
It

year

for

"
"
therefore,

was,

zinc

However,

in

die

find

we

good

a

castings,
in 1956

that

aluminum

rate of about 3.2% per year. As in. in which lead and zinc
this country continuous strio gal- available. I have here part Jpf.

vanizing has made rapid strides

by the end of this year, if
present plans are completed, there
will be four lines in operation.
The

job galvanizing trade in the
United
Kingdom
is progressive
and its technical

casting

galvanizing

than

1955

which

300%.
this

and

than

greater

gain

was

than

more

in

All

1947.

aluminum

in

has not
been made at the expense of zinc,
However, we know that in many
applications in the automotive and
other fields zinc base die castings

committees have

published and disseminated much

consumption for die
was
some
4.3%;
greater

in

so

that

information

is

galvanizing and
practices. One field
on

under

vestigation

is

active

very

in-

the

rLlLa!
pounds

of

TSte+t!' P^sttes
materials, the average
zinc used per car in-

creased

from

in

1956

duction

68.7 in

and

is

1955

modernization

and

elec-

British

Railways.

chosen

as

Should zinc be
protective material

the

estimated

7L3

at

77

other

f6

ut.cs

slah

-

-

h

brass, die casting, rolled zinc, etc.,
j)avc efther remained about stable
bavc

qj.

^ain

declined

ve"

c?ose1v

v

Here

dif castin??i^

'base

the sdnc

dustrv is

sliehtlv

Ued to the

"ths our*belief ThatPfbe automotive industry which

con-

pricewMehWmaiS!
suprty'were^palor foetorfcot
stability of

tributlng
tributing

vu

of

even part of one of the major
present/pses couldvmalcb: the fiityre of ICHd look vory slooMyr
nmv/of; the lead' and^zinc industries

some

The effects of minor lm-

feasible.

purities
too

sometimes have dis-

can

effects.

*

the

ago,

use

;

was

the

sistance

of

Branch

of

the

cue,

In

available

recent

technological

years,

advancements

have

produced

variety of relatively chean mate-

rials, which

are

sold at

a

compete

tions.

This is

In

order

to

e very body

to

reduce

in

compete

effectively,

to

nvrx
me nnVoj
priced

The

competitive

y.

JrX Z SvS
liana and New Zealand
bas been dose fo

prease

use.

In

are

for automo-

addition

to

this

the

industry in 1956 took
53 /c of the zinc base die
castings
produced by the job shops. Home
appliances
accounted
for
22%
from

these

going to a
cellaneous

sources,

the

balance

large variety of
uses.

quite obvious

It

that

is

zinc

y
"S"
in-

•.

the

of

tion

zinc

for

the

over

that

take

the

future

an

of

production

exists.

that
At

There

this

the

period

same

an

Miscellaneous (1)

....

"

Total
(1) Includes

SOURCE:

lead

some

being

withdrawn

from the market and absorbed by
the government stockpile. This is

during

lar

our base

period, except for
1949 when consumption
dipped rathdr badly. Other uses
have also remained fairly steady
year

From

program.

long

term

serious

is

only

solution

our

one

to

point of
practical

this

very

and

differs

sive research

that

is

to

increase consumption.

somewhat

from




that

on

How

Dlished?

can

this

We

best

believe
on

.*

British

,

.

/'
1953

1954

1955

43,888
96,756
15,224

68,060
43,783
24,382
122,181
44,472
97,667
14,744

59,311
45,046
23,687
123,421
39,967
91,515
13,727

382,105

328,712

340,203

376,193

415,289

396,674

367/499
incl.

96,124

Metal Statistics.

1

Slab Zinc by

Industries

1948

1949

1950

1951

1952

1953

1954

1955

1956

89,393
30,109

30,294
39,744

94,039
27,749
45,755
27,581
27,426

105,932
36,003
57,132
30,756
35,499

65,915
34,737
57,576
22,852
29,678

73,760
25,034
60,117
18,740
13,740

95,675
29,969
47,989
24,676
17,916

111,838
39,406
69,256
24,526
24,179

113,129
46,426
74,987
25,070
21,900

110,568
39,842
60,048
25,572
17,576

249,997

250,022

222,550

265,322

210,758

191,391

216,225

269,205

281,512

253,606

Alloys

Brass

Rolled

Zinc

Otlier
Total
SOURCE:

British

Bureau

of

60,482

Non-Ferrous

Metal Statistics.

STATES

UNITED

Consumption of Total Lead by Industries
(tons

Batteries....

Lead

Alloys
Tetraethyl
Cable

Pigments
Lead

Products

Miscellaneous

2,000 lbs.)
1951

1952

1954

1955

83,800
184,300
93,300
101,000
110,100

406,800
187,900
111,100
136,800
109,900
121,700
136,800

353,800
156,700
127,500
136,900
104,400
104,500
167,20fr

330,000
146,100
148,000
146,200
86,100'
103,100
141,500

356,500
158,8(50
158,300
151,500
85,200
99,500
141,200

337,200
168,600
160,700
127,900
95,300
102,700
102.500

375,000
199,300
165,100
121,100

1,129,000

868,000

1,211,000

1,151,000

1,101,000

1,151,000

1,094,900

1948

380,000
168,300
66,600
158,700
120,600
116,500
161,300

of

1950

280,600
130,600
101,700
130,100
' 69,200
82,000
73,800

1947

Storage

Total

1949

373,300
183,200 >
-

1953 "

1,172,000

Consumption of Slab Zinc by Industries

that

118,000
120,400

1,205,700

1,190,000

.

106,800

"

1956(1)

1947
Base

Rolled

Zinc

1948

1949

1950

1951

1952

1953

1954

1955

370,969
234,628
109,140
76,672
26,326

350,880
202,181
85,534
55,200
18,046

441,686
289,527
139,373
68,444
28,104

400,279
296,434
143,292
64,085
29,881

377,688
236,689
155,608
51,318
31,480

406,988
307,445
178,182
54,649
38,663

403,463
290,846
108,268
47,486
34,236

451,141
430,807
146,243
51,589
40,032

421,218
352,451
122,395
45,382
36,251

786,360

Alloys

Other.

be

1956 (1)

366,131
221,738.
191,990
133,924
115,225
116,938
44,054

361,327
214,469
112,347
70,680
27,537

Galvanizing
Zinc

817,735

711,841-

967,134

933,971

852,783

985,927

834,299

1,119,812

977,697

,

accom-

exten-

the present

and

Total
(1) Preliminary

U.

S.

B.

.

/
'

(2) Included in Miscellaneous uses.

1947
Base

.

>

Products

lead

8u,j19
43,048
65,614
29,232
31,584

Galvanizing
Zinc

!

1956

65,171
41,974
17,056

1957-1951

in

of Non-Ferrous

Bureau

,

58,057
34,997
8,093
102,022
39,756
85,786
11,492

367,963

Brass

problem

tendency to increase.
The pattern of consumption of
slab zinc in the United Kingdom
a

25.6

"

.

an expedient measure, but the in-

view there

/

• 100.0

2.«2,667

1952

381,506

used

indication

everv

cpntinue.
present time these world
are

100.0

.

33.8

•

„

.

'

dustry cannot base its future on
the continuance of this or a simi-

with

......

has

condition will

surpluses

,.

53,481
32,982
6,853
121,718
29,858
73,532
10,288

,

consumption

over

is

40,6 !

.

.*v,J

.20.4 ^ ,669,033

378^33

.w.ooo

M2,067

greater rate

even

brass and bronze, which is third,
after galvanizing and die casting,
has
remained
relatively stable
one

Products

Lead

substantial world surplus

a

%-,13.9%:

1,061,567:

1

i>51

1949

52,137
31,300
5,692
135,952
46,807
78,068
18,007

Consumption of Total

could

of

<

653,367 /,. 35.2_•..<■

57,314
69,141
42,570
43,521
6,007
5,991
96,503
102,674
56,325
61,081
89,686..
81,151
19,094
18,546

1948

g0%

increasing, zinc produc-

increased at
of

die

manufacturing.
consumption

has been

therefore
base

we

view

(tons of 2,000 lbs.)

355,308

Pigments

the zinc industry.
Although zinc
consumption throughout the world

so

this most important field of auto-

The

optimistic

mis-

castings must be kept competitive
by every appropriate means m
motive

circumstance

825,100 ,;/.; 44.4

5t.6

3&.i

y 995,400

1947-55 American Bureau of ••Metal Statistics./:

51,458
33,361
5,264
129,537
52,150
93,610
16,126

great bulk

of the total

tive

34.5

'

c

SOURCE; 1935-37^-'Metal' Statistics and.'.-American Bureau of Metal Statistics,

t

50,380 ,
30,992
(2 )
106,673
56,688
96,261
14,314

Cable

of the captive Japan, India and Africa the incasting facilities which crease has been most encouraging
represent approximately 33% to If it were not for one
important
3o%

;

. . 1C0J)

1947

^

die

zinc

858,233

^ 4r.6

% of *•'.
Total

[;■'."J: tri>n[XEi>; kj^goomT -;^

Lead Alloys
Tetraethyl

nattom

tuirj

aK„u,

572,366

^

\V3M

231,291

Storage Batteries.....

Canadian Pattern
In Canada .wWa thP

%S55;&

^

>

-

'% of f.'' Avg, Year ;
To^i^<'; 1953-55

Avg/Year

.TotaJI

1935.^37. ^

.

•

°S

1947.

■

Consumption of Total Lead by Industries

everv

make every
their products

that

see

fisail

!

all

of

Sfort ™nsumDtion' is not too different
'coTtfh.?f £SS5&

^s'makino

producers must also
effort

oH947" 1S

times that

^jlab Zinc.r

of

are

y in zmc consumption and

also true for lead.

Europe

;

research , :
a
y

casting,

of
Free
Europe,
Germany nas maae tne best
creimany has made the best

applica-

many

that

appears

:

t

states'

United

high purity commercial

on

/

/

.

: .l\lo.*;America (Incl. U.S.A.)

Oil

countries

West

relatively

stable price and with which zinc
must

the

it

which

<

,

based

statistics

.

37.2

44.4

: Avg. Year >' % of

of

piogiam

the

689,467

' Consumption

^

in
t

Surveys
surveys

27.3

Avg. Year

'

% of
Total

785,867

% of
Total

476,600

' P V

as-.

Department

Technical
lecnmcai

md
and

1953-55

Avg. Ycar

1947-49

%

Year

..

^

Mines ^^-

industry,' the

;

lbs >

of'

Total

States

United

,

With the

"

1935-37

A

piejucbc^j \ybieh;

have been built up.

,

B. Diamond has been added to the
staff of Mason Brothers, Financial
Building. *

(tons of 2 000

.

.

selling and promotion hi ' '

overcome

^

.

WORLD

/■%

';

;

the villain./Now it wi

Ottawa has undertaken a

From

.

rapidly falling into disrepute, because they were really not effee'
tive. Research, sponsored by. the
American Industry revealed !;'
the generally acceptable, ire
tent" of commercial grades,
arduous

^8...

Consumption of New Pig Lead "

of zinc
for cathodie protection was

long

^

,

For example, not

-...Mason..

_

to 1*111* financial chronicle)
' »■
SACRAMENTO, Calif/— Estelle

application.
Certainly metals of cannot afford to wait until this
comparable purity open up new
happens, in fact we have possibly
avenues for research never before,
waited too long as it is. Recent

Mines

this growth.
growth.

to

Zinc Applications

•/

only

Add

R*rU

MaW*™

have, special

may

opcrti.GS which hiskg
material suitable for

anodes

the

trification of many sections of the

it

pi

for

alu-

to

out

hand

other

astrous

facing stiff competition from^it should promote a considerable
substitute materials.^Despite this 'demand in
that country.
•
cmnpetition from

pur

protection of
overhead steel structures, required

are

continued

cr;

for

M.

SOURCE:

American

Bureau

of

Metal Statistics.

-

Volume

186

Number 5658

r

The Commercial and Financial Chronicle

.

(393)

Edwin J,

Aliamil Sleek Offered

Schlesinger,

.Pioneer Investment

At $5.50 Per Share
Van

Counselor Dies at 70
Edwin

in

the

J.

Schlesinger,

investment

250,000

company

common

shares

to

its

working

finance

he;

work in process.

was

ac¬

company

invest-

facilities

an

,ment

,

capital

to

additional

tively engaged
-as-

the

on

inventory and
In June 1957 the

obtained
contract

a

government

which

provides

a

and

used

by

the

no-charge basis in

manufacture

of

its

products.
through its
subsidiary, Alumi¬

Corp.,

wholly owned
num

constructed

or

government

Altamil

The Company intends to add the
net proceeds from the sale of the

Until July 7th

.

and
the

(July 24) of¬
shares of Altamil
stock at $5.50 per

share.

Hospithis city.

.tal,

and

the

acquired

Corp.

field,

clinic

,

Co.

equipment
by
company.
Such machinery
equipment will be owned by

be

associates yesterday

passed away at the age of 70 due
to a heart ailment at the
Poly\

&

Noel

to

fered

pioneer

counsel

Alstyne,

for reimbursement to the
company
by the government of up to $989,000 for
machinery ahd

Taper Milling Co. Inc., is

en¬

missiles.

Through highly refined
sculpture-milling techniques, used
conjunction with machine tools
designed by the company, inte¬
grally stiffened airframe compo¬

nents and

structures, such as wing
beams, spars, ribs and

sections,

bulkheads,

are

aluminum

bar

Sales

from

year

rose

ended

produced from

and

plate

$363,000

the

ended

31, 1956. For the eight-month

ponents ^or use in high speed mili¬

riod

tary and commercial aircraft .and

totaled

counsel

ended

April

30,

Rush

has

become

McKendrick,

East

1957

(Special to The Financial Chronicle)

NEW

Aug.
pe¬

sales

$7,696,000.

Hesch
State

Minn.—Anthon

ULM,

has

become

Bond

&

Mortgage

New

York

City.
Mr,' Schlesinger was one
of the

first

obtain
'•

invest-

ent

n

counsel

status,
Edwin

J.

Schlesinger,

and

active

was

„•

to

in

the

ment

Act

of
of-

develop¬
Investment Advisers

the
1940

sional

which

status

wrote

to

lications

Commercial
Chronicle.
He was

civic

Grand

■i

matters,

the

tive in

Jurors

affairs

Club,

Chairman

West

and

of

was

New

New

public

York

City,

schools

in

born

attended

New

a

York

County Prison Committee.
Mr. Schlesinger. who
was
in

&
ac¬

including the

Association,

Side Republican

former

He

pub¬

many

financial

on

Financial

•<

field.

extensively for

particularly

profes¬

gave

this

the

York

and

also

pursued
his
professional
studies at Cornell, Columbia
and
New York Universities.

First Boston

Group

Offers McLoulh Steel
5% Conv. Pfd. Stock
The

First Boston
Corp. headed
underwriting g-oup that yes¬
terday (July 24) offered for pub¬

an

lic sale 105,000 shares
of McLouth
Isteel

Corp.

vertible

($100

5%

cumulative

preferred

stock

con¬

at

par

share) and accrued divi-'

per

dends.
The

new

ble into

pany at any

tion

at

share

a

of

each

preferred

is

converti¬

stock of the

common

com¬

time prior to redemp¬
conversion
price per

common

share

of

stock

of

$46,

convertible

pre-1

ferred

being taken at $100. The
newly issued preferred is
subject
to redemption at $105
per share
before July 1,
1962; $103 per share
thereafter and before
July 1, 1967;
$101 per share before July 1, 1972
and $100 per share thereafter.
The

company plans to use the
proceeds from the sale to provide
a
portion of the funds for the
1957-58 expansion
program to in¬

volve

the

mately
ments

spending of approxi¬
$34,000,000 for improve¬
designed to cut production

costs and for

duction
the

increasing steel

capacity.
will

program

pany

an

about

give

annual rated

1,812,000 net

ingots

compared

capacity

of

pro¬

Completion
the

with

1,574,000

com¬

capacity of

tons
a

of

steel

the

Detroit

major

producer of carbon steel and stain¬
less steel in the Detroit
area, dis¬

motive

in terms of business

and constructive

principally to the

auto¬

35.1%,

tively, of the company's
lar sales.
eral

latter

nually
.

Corp.

company

at

ACF Industries, Incorporated

company's growth during recent

years

provides

through

May

the
an¬

31,

1967, 5% of its total steel tonnage

requirements for

use

in the United

States.




is due

1956

$9,033,000

$8,008,000

and

SHPX group of companies (not consol¬

idated)

$9,818,000

pointed toward maximum

$8,593,000

Combined earnings per share of common
stock*
•

accomplished by

development of important

•

of its talents and

use

facilities. In 1956-57 further internal
diversification has been

585,000

785,000

Combined

large part to carefully planned diversification

new

products.

$6.95

Based on number of shares outstanding at April 30,

$6.08

1957.
'

ACF

INDUSTRIES, INCORPORATED

and Consolidated Subsidiaries

Net sales

$294,592,000

$245,585,000

Federal, state and local taxes

acr,

10,958,000

56,507,000

53,650,000

Dividends paid per common

INDUSTRIES

Preferred shares
Common shares

INCORPORATED
30 CHURCH

13,414,000

Working capital

gross dol¬

will purchase

least

1957

development.

respec¬

An agreement with Gen¬

Motors

Fiscal Year Ended April 30

Net Income

Motors Corporation accounted for
and

58th ANNUAL REPORT

volume, net earnings

industry.' In 1955, 1956, and

the first 4 months of
1957, General

40.6%, 37.7%

SUMMARY OF THE

consolidated subsidiaries

The
in

a

ended April 30, 1957

outstanding in QCf history, measured

The"

area.

McLouth Steel Corp. is

tributed

was

present

tons.

company operates three plants all

in

The fiscal year

of

STREET

•

NEW YORK

8, N. Y.

share

...

outstanding......

outstanding

4.00

4.00

None

137,467

1,412,714

1,260,167

M.

affiliated with

North Minnesota Street.

42nd

'Street,

&

With State Bond & Mtg.

with offices at
41

connected

Haseltine

Wilson, Inc., 114 South Ninth St.

$4,-

1952

year

G.

with

the

to

Aug. 31,

of

for

(Special to The Financial Chronicle)

MINNEAPOLIS, Minn.—Donald

stock.

for

568,000

com¬

With McKendrick Haseltine

in

gaged in the manufacture and sale

large machined structural

21

Co.,

28

Ol

oi

-J

CO
to

to

s

I




or Pricef

2.75% 2.90% 3.00% 3.05% 3.10% 3.15% 3.15% 3.20%

Yield

100

1959 1960 1961 1962 1963 1964 1965 1966 1967

Due

3.30% 3.35% 3.40% 3.45%

1968

100 100 100

1969 1970 1971 1972 1973

1974* 1975* 1976* 197 * 1978*

.

C0$50, ALIFORN 3Vazn%d SMeris
OF

PMRataurtieess, Yrioiecledrss bitnaeoderes)
Amounts,

and

(Ac rued

V/4

VA

Coupon Rote

5%

5

5

5

5

5

3%

3%

3%

3%

V2 V2 V2 V2 3y2 3y2 3y2 3y2
3

3

3

3

tcasoubjel Apfnrteid hrin. G&C'DBlr-oaeoxnr•<e.kl,

CBTFoI&CBrpnishlaytocietnh.,

maturiy. 197m4a-tu8ri,ng intoeacrrused, deacribs

$2,0 0 2,0 ,0 2,0 ,0 2,0,0 2,0,0 2,0,0 2,30,0 2,30,0 2,30,0 2,50,0 2,50,0 2,50,0 2,70,,0 2,70,0 2,70,0 2,90,0 2,90,0 2,90,0 3,10,0 3,10,0 Yitoeld

Amount

&CForga.n

3.55% 3.55% 3.55% 3.55%

f

*Bonds

plus 1973,
par,

1,

Cali.'ornia

&nCIStuocar.t

3V*% 1956,
off

Halsey,

Act

5%,

BNaationkl

go

Chic
of

First HnriFri ct
The

j

t decison. baspumriochtnze.d
iTVCeatlifrons ADPur'l SCTtmfahooe,fncgudt,nbteoarpsrecgdihs.tly(I1bASi9un7haw,o3relfcddt9esoapcym0hpfbvelh-ul SFrtaodpexms YNfbifutaroneoswdkvksg,Cnelcciy VCDMe46thivarlspntoed,srSwcfaiyhbSCnditalohpoaurnerzg bHhpjvSVA&HDtuoraoehcnlrqleifyss,tg,'

i,n95c"l7'8CaofrNYetywk. hnp¬iPbCtoefsurmdcal, p¬ Californdepusbtc fCVor¬)etansh'pldgvc GBEdmuwCalicforsn.,

CBNaationnkayl

Yo
Newkr
of

First

'

The

Bank
biottnoyahhmeadterulns.g acresogentuualxntdiidsrn,g
S,bpd$tOI(iIhnAcopatfeoaspye)ibrmcn-aldsrullShtougoladfnzeicdrydbei1CnOI1oo,m0c9utaop5tf,b7sne.r tAI1hoap9sroepaudaib7mf,njrt4eecitlrdinteparyumfesnt,l3ftetahmownys0oaorneoerckkbICSLAancirfgomrsnesd.t, biSbointtsnthuaecdproyeusll, linebvtogshtamrnmwquideminlstsMfocsahatkvndregd (5BA1AVettran9rso'hFtciucnel6defdrthhogabopnuarienesfslfSTGFuttihootleueadff.bbinohaprrdirtncshftalbththooarwmoecmplhnuiecsisdfs, iuaowunfehdvsredn,bOMSCetarshloiaifcnoyerkd.,f, Company
LHFfFlooauamnnrnmdseds
Californ.

inmoneys

lenscaoletd

so

part

CMahnhatse

The

itnacxoemse

sonal

faramnds

pcaoyupblne

TBmkruesrst

quire

First

1A9ug57s,t and thoopteifn aomnatudring oanny brseedhmaptioln Franciso, opinf btehleisve coetrhtaeinr bisonudeds, inpurose, Ac19o56ft payment bonadres Geonralf
Dated

Is ue

New

Providng

Princpal the
at

Bonds

and

to)

of

San
of

the

In

We

and

These

ans

Bond

punctual

These

i.M.'T

At orney

A.Si
f S.,
of

me:ira

Bank

T.

N.

1

Intcoirdp
ted

Incorpor

ted

Incorpor

TCosamnprtadny (Itnceorpd)

IIIncno*rpated tnCfec*oorrpiopdtay.

drSS&CKGST5CRHM&ivor*mcubhlpts.sainy,yBNFTWekdOProetglanfd.WDSCrub;IiLRThohea.mmnplsdits:,yHkDFM'ecgkSNJviy!&CIdFB&CBTuroaPruas.nmwfncpikct'h.t,gyInciordpateDRLATHWMeo:ll;ECRzpvgracknFMIAK&Wrsmoaiodnmichp..,yCt&BCNBltcresyHYewainfdklSWRVAEC&u0'hh'obnig?s.e,,&LMILa"ruotvl:d.nHEIGBDNasmokpekyS&CP)'vur.,MKfgchwItnCrplicovCR&FTBiAWDScerahoidmoubngls.t.kn,syIWMMkASCT&Nhmmwpps.yHFGIar:neatd-bkBoncesrfilJP&'WTRoPiufhly:ck,,ICSHI&vSmtaupge.rntshALJDnysgbo.;3dwTFBDlTekpiarmouhin'adl,&CRNPC:rtmteofc.yAwvdMTJElSuoIroneprtg.b,a'lsuniic'e&CWLBF!HWNChghs.ptkay undobrwevfy
.

.

Newark

ti'pnolesf
oCgohicf f CVhaorlt'sfv.ie, hICUSL:aitk;ye.
'Chiocagf dIncorpat Intceorpd. Incorpated Ssoatlf;
InraNTCBNICJCoD&Clorrhientmtunvepesidn.kn.y B&FLPCMCES&ltiaeeoaociml,..sr,CSE!NBSoeqrapu-tFitonbr'skns &MJPWC&HRWB&aieeusrctioozpk.'se.c.h., DSC&DJ&BBA;m!/lal-adeiSonnwrgrx.t'st:hkh. FRMLMLH&Cigesoonsbl:rl., CBG&JABI&C&CAWneoaorodcxmacerknmt.hdplwa.rys,y TMMLH&EKCWouuemtoiapspl.sann,y CCNB&BWCB&BSarhoeatavichpocneosk.l.y.nl,, GHTIb&C&SGBiohmesungcn.opa.srynIcnocroprpataetdedBkCW&CGR&CBTWooaemcbukhnpaos.r.vdkittn,yQK&CMDTuinconprmugilk-.Ss,daafeny C&JISBhCC&&otrt:reroc)'.psn..,) GBLCHLG&WalaeicienlkwmLlonmbivh.brsosusnys &CSTYABNRohgaehtutupoioumnergrbwdb.aklc, TCNJBCFhmumiimly'nn"epsppdnak.aatsslyy HFFITNMCrnaohmrospsea.t.ry,, C&S1AIR&CSEBtnuotnakeyml'nphuocashepidrs..i.s,y CHGMRJH&Comnaolphay, D&S&L&CCIAPT&ocnteamiIrunnitabmobcgcnu.hrg..dsse,, CIEFNCS&BHlcsuhnimoieg■r-.Wt.taz,, JM&W&I&CMJMAO&CnccDvarmomeosnortyk.eteaanl NSNBSIRMonackhstiancdyg-fAel.dsr, C&TB&HS&FTtoruoamwontrnphiht'.esny,, PlICB&SS;Cn'ooucmsralkbmwicmpveaprn.sudstyh,,,yL&BIE&WD&LJM&nHaauhiuconttlcefa'nrsl.se.yoe,,r &TWRCSFMH&FDorvterly,nnxek.kdg, F&MHCFFA&CJBKuaorritcamzshsnoiotp'esn.azlfeyr WI&CDSWWHogtemaimnklrlpedasrtg,yy Abhocfienruasrtage
$

AC'ioty..
Kcnsas

WNYeoestrwkrn
of

Itnerpcod

2?

Incorp ated

Memphis

*

of

Boston
of

'•.

*

t
i

r- Incorp ated

Dell
s

Inc-orp ated

of

*

Incorp ated

,

EBxcahngke US&encuiroits NBationkl Salomn SCep:uorraolttiiesn N&CL*o'dyolaews. S&C&Ssrtoaoud. &CE.F&Huotc..n I&CInngocen. TUCornmuiopsnatny CGoogm'pafany Ce&Cmpsy-oTegl.r CScohwmafepoanry E&Sdowanrdss P&CInieorcce., A&PRueachdripnkcaelths, C&CD&Iltaomrak.r GR&aiprdnee fReC&Gn'notchide.r, NCS&Dewobonl.d's S&CIlnocoucm.b CIEAcnmpa..y, RCoboinmsp-Haumnphyre,y &CB&BSortoyo'csxe.. Camnpadny TCoerpxaatisn S&CISnacot?olte.,y, TS&Ctheoel.e &CColoke.t 1957
Newark

Corn Dilon, Philadephia We&olC d.

Chemical Eas'man

The

White,

II,
American Kemph WiR.al i m Estabrcok Van




J.
B.

Fideli'y

Trust

Oh
o
The

G.
A.

Rauscher,

Fahey,

F&oi.enh ldt

Fulton

H.
W.

Kalman
Brush, &

The

Stein

Zahr.er

of

First

V.
H.
'

Fauset,

Peni gton,

25,

July

24

The Commercial

(296)

Continued

Herman Bo:cBrcrdl

Bank and Insurance Stocks

Joins Sufro & Co.

By ARTHUR B. WALLACE

of

Week

This

—

Bank Stocks
in June, 1957, about
the time the issue of rights was

$2.80

tional City Bank of New York, we

announced.

look

can

the

into

holders

how

matter

the

of

of

the

in

Exchange Bank

1956, issued rights to

January,

stockholders

leading

New York banks have
recently. These rights were stock.

subscribe

to

to

new

The stock is higher today.
New York Trust in 1955 issued
National City
100%
stock
dividend.
It
is
stock at 60, and
after the an¬ a
that
New
York Trust
nouncement of the plan thus to rumored
increase capital, t^e market for will be merged, but the President

fared

to

buy

First

First

new

City

This in
negligible

points.

rights

several
gave
the

declined
turn

value,

the

and

the

of

first

E

changes,

x

the

bank

denied

has

The

it.

National

First

had

rumors

City Bank as the one to take over

scarcely muster

Herman

p

erience,

f>a<? ioined the

City

basis.

company
to
hea
its
ana¬

indications,

lytical and re¬
search departm e n f.
Mr.

•

In 1955, Irving Trust added to
a
quite general
subscribe; and why its string of dividend increases,
not, in view of the exceptional going from $1.30 (including a 10yield that the subscription price cent extra) to $1.70 (also includ¬
of

60

to

afforded

the

newly
nounced cash dividend of $3
nually?
Bank

on

have,

managements

an¬
an¬

ing

like extra).

a

for

the greater part, been fairly gen¬
erous over the past several years
their

Such

are

the earnings

of Bank
divi¬

a

Service, Inc., of Minneapolis.
43% of operating
Mr. Borchardt started his busi¬
earnings) relative to the dividend
ness
career
with Babson's
Re¬
that it is logical to expect at least
ports, Inc., Wellesley Hills, Mass.
an extra of, say, $2 at the end of

in

4% increase in cash for the old

stock.

But preceding

this, Empire

had paid several other stock divi¬

continue to sell at more favorable

earnings ratios; at higher
operating
earnings
to

price:

of

lates

dends,

getting
capital
to
up
equity; and they continue to show
$10,000,000 before the 4%, and in
lower pay-outs to operating earn¬
each case adhering to the $3 rate.
ings. A comparison with utility
This
resulted in

substantial in¬

a

in the cash payment of the

crease

stocks

fixecl-rate

or

non-conver¬

tible

preferreds favors the bank
And
market prices are
to
confirm this ap¬
and still Empire is disbursing less
praisal..^
than one-fifth of its
shareholder

through

who

these

the

held

capital

stock

increases;

shares.

beginning

„«

present fate"

of

operating earnings.
Guaranty in February, 1957, de¬
clared a 20% stock dividend, con¬
tinuing the $3.20 old rate on the
new

capitalization,

Hanover Bank disbursed

20%

a

stock dividend in August, 1956. It
had
only several years earlier
ordered
and

several

stock

dividends

two-for-one split.

a

split stock had been

The

on

un-

$4

an¬

a

nual rate; the split stock received

$2,

effectively, the

so,

McClure, Saxton With
Pierce, Garrison Firm

effective

an

20% increase in cash.

1956

20%

Diversified

Investors'

of

sion

Fla.

TAMPA,
Clure

and

Louis C. Mc¬

—

Louis

M.

associated

become

Carrison,

as

with

Wulbern,

sonville,

have

Saxton

Inc.

Pierce,
of

Jack¬

Vice-Presidents,

in

their newly opened Tampa office,
617 Madison Street. Mr. McClure

business

His

rupted

service in

When he returned

War II.

World

inter¬

was

career

four years

by

field

life he joined the

to civilian

The

low.

of

rest

to

be

could

they

Frenchmen

to

the

illiterate

-

>

(if

The danger is that the Al¬

any).
gerian

Whites

would

declare

an

-

independent Algeria, and that the
French

army

jolly well join

may

them.
If

:<

French

that

alone

France's

responsible

are

for

fostered rise of costs

.

budget,

tooling

purposes

and

to

of

sense

circles, and the most illusory of
all
illusions
with
Which
the

only;"" one.
in

the

word

•

the
are

expenditures

French people

Most of the

ex¬

the company's operations.
Any balance will be used
for
working capital and other corpo¬
pand

rate purposes.

Haydu was organized in New
Jersey on June 26, 1956, for the
purpose of acquiring
the major
Saxton in charge of the Florida portion of a business known as
Haydu Brothers of New Jersey, a
Gulf
Coast
offices.
Both
were
forhierly
officers
of
Stevens, subsidiary of the Burroughs Cor¬
White & McClure Inc.
poration.

will be in charge of the corporate
investments
division
and
Mr.

beet

farmers,

the

to

exporters,

plentiful, wages keep rising, pro¬

in the form of tax

Subsidies

etc.

viding

,

was

an

increase of that amount in

the cash disbursement.
J. P. Morgan & Co., Inc., have
just voted a 16%% stock dividend.
It, too, will retain the old $10

annual dividend

talization,
of

10

shares

$100, will
nually.

on

with

a

get

now

Manufacturers
one

the

new

capi¬

that the old holder

so

Manhattan

rights to purchase
basis

scribers have

located

and

a

1956.

Bank

new

in

seen

National
its

stock

1956.

gave
on a

Sub¬

their stock do

Three With King Merritt
(Special to The Financial Chronicle)

LOS

E.

cash

Langstaff, Jr.,

are

now

Analysis

BANK STOCKS

with King Merritt & Co.,
Inc., 815

NATIONAL
of

were pre¬

Request

BANK

INDIA, LIMITED

Bankers

to

the

Government la
Kenya Colony and Uganda

Head

Office:

West
on

H. A.

connected

Bank in¬ viously with H. L. Jamieson Co.,
payment from Inc.

13 N. Y. CITY

Bulletin

End

26

Bishopsgate,

London,

E. C. 2.
(London) Branch!

13, St. James's Square, S. W. 1.
In India, Pakistan. Ceylon.
Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Branches

Burma,

Laird, Bissell & Meeds
Members New York Stock
Exchange
American Stock Exchange

Members

120

are

Front

St.,

Plainfield, N. J., in a modern, onestory building of approximate 20,-

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
Bell

Tele'yve—NY 1-1248-49
(L. A. Gibbs, Manager Trading Dept.)

Specialists in Bank Stocks




fuel

Electronic

Haydu

is

Products

divided into three basic divisions.

The Precision Products Division is

land

Authorized

Paid-Up

Protectorate.

Capital
Capital

£4,562,500
£2,851,562

Reserve Fund
£3,104,687
The Bank conducts every
description ol
banking and exchange business.

Trusteeships and Executorships
also

undertaken

intricate
parts for

of

manufacturing
chined

component

ma¬

the

electronics industry.

is

the

Industrial

Burner Division which is

a

Gas
well-

accepted product line represent¬
ing the culmination of many years
of research and development work
in design and precision manufac¬

turing.
The newest phase of this corpo¬
ration
The

currently

has

a

prime contract with the U. S.
Army Signal Corps and is in the
of

process

prime

negotiating for
with the

contracts

branches

of

the

Armed

evasion

every

:

the

has

of

further

conse¬

of two ways

one

covering the deficit.

The other

not

burdened

with

on

vicious

into

high

the debt,

charges

and

spiral

is

interest
an

au¬

written

rich and funda¬

a

a

very

healthy

modest amount of

with

or

without Algeria's pacifi¬
Four

cation.

years

relative

of

put her house in order, she would
be offered short and long term
credit

Criticizes French

Central Bank

deficit

source

France.

is the Number
of monetary inflation
Number

Three

are

Two

not to

and

be for¬

raising their living standards, and

French consumers keep

only from New

and

Zurich,

but

York,
also

and elsewhere.
What then is wrong with France
and

Budget
One

not

Frankfurt

from

and

instruments.

and others, that

is

France

Toronto

it.

reserves,

electronic

again by experts
:

immediately

ufacture and overhaul of airborne

of

picture is the selfexpounded time and

inflationary, stability, from 1952 to mid-1956,
but is tending to be just that.
It have shown how little it takes to
consists
in
the Frenchman's
confi¬
selling
Government restore
Bonds at 5%% yield, or so, with dence in his currency, to lure his
additional premiums and escala¬ savings into bonds
and institu¬
tor features thrown into the bar¬ tional accounts, to discourage gold
gain. Thus, the budget is being hoarding. Also, if France tried to

is

their plant facilities for the man¬

section

French

evident fact,

inflationary in mentally

gotten either. Whatever happens
to the country's gold and dollar

dust-free

this

of Frustration

most frustrating about

is

country. With
self-restraint
quence
of ruining the Govern¬ —such as cutting out a number of
ment's credit "and causing more subsidies, reducing the cost-rais¬
inflation by detracting the savers ing and incentive-killing protec¬
from investment in Government- tionism, proceeding toward cur¬
paper.
Consequently, recourse to rency convertibility—the situation
the banks and ultimately tp the could be brought under control,
it

Number

and

by

Roots

The

What

book—and

deficit is

the

in

air

extreme

way.

pre¬

new,

unhealthy boom and to

rising prices.

age-old
the Frenchmen, any¬

of

con¬

ditioned

the

pastime

paring

completely

avoidance

and

in

Haydu Electronic Products is
a

The

ever-fresh impe¬

an

even

tus to this

by reducing the

revenues.

trick

other
other

Forces.

pour

complexity of the tax system and
the high level of taxation invite

tomatic

is the Instrument Division.

company

fire

Central Bank is

The second major activity of the
company

exemptions

and

the

on

fiscal

If

ANGELES, Calif. —Israel engaged in quality and precision

Boniske, Nate Krevitz and

City

Second Quarterly

1

corporation

West

1426

reductions

effect,

Roosevelt Building. All

creased

at

two-for-

better.

First

Production facilities and execu¬

000 square feet.
had

split in January,

favorable

tive offices of the

Jacksonville

Tampa, and is
dividend of
aiso on the John C.
Legg & Co.
$116.67 an¬ wire
system.

United States Trust had a fivefor-one split in the same month.

Chase

Pierce, Carrison, Wulbern, Inc.
maintains a private wire between

live, is the full em¬

ployment, or rather over-full em¬
ployment, arising out of this set¬
nationalized
industries are run¬
up.
A nation with 44.000,000 pop¬
ning at a loss.
This is true at ulation
and
with
hundreds
of
least for almost all of those run
thousands of foreign workers has
by the government—the Post Of¬ barely
200,000
unemployed
on
fice,
the
Railroads,
Electricity, record.
Full employment means
Gas
and
Coal, to mention the
good business, good wages and
most important ones.
Social Se¬
good profits, above al|, the illu¬
curity, which takes 6% out of the sion that everything is going well.
workers' payroll and adds an ad¬
Why
worry
about
such little
ditional
25%
to
the employers'
troubles as an Algerian guerrilla
wage
bill, is another deficit-in¬
war, a good chunk of deficit in
dustry. the gap to be filled every the budget and the prospect that
year by contributions from gen¬
before the end of the year there
eral
tax
revenues.
Then comes
will be no gold or dollars left in
the whole array of subsidies: to
the Central Bank?
Since every¬
the wheat farmers, to" the sugar
thing is going well and jobs are
damaging.

more

:

proceeds are to be used

The net

but

inflation-

incapacitates

the French exporter on the International Markets.
The most vicious of all vicious

.

expenditures are one
major cause of the deficit in the

even

Newark, N. J., are publicly offer¬
ing
100,000
shares of common
stock
(par 10 cents)
of Haydu
Electronic Products, Inc., at $3 per
share on a best efforts basis.

for

outlets, and because the

:

Military

broadest

of Plainfield and

Berry & Co.,

this monetary policy.
money
and the ex¬

producers from foreign

tracts the

national-

unprecedented

Welfare

Haydu Electronic Stk.

of

excess

rebels.
But the cost will be ap¬ pectation of further rising prices
r induces
people to import. France
palling: $1 million a day at pres¬
cannot export enough because the
ent. However, it is not these costs
n—oh,c
ro^^t.ic market dis¬

French

Berry & Go. Offers

that purpose.
outright

for

dollar crisis is an

The

The

out, they are likely to subdue the

Inflation and the Dollar Shortage

Co.

•

patience—or the
I-product
pocketbook—does not run

From,Keystone he went to Inves¬
tors'
Diversified
Securities and
from there to his present position
&

mortgage

printed

n

French

the

difficulties.

Sutro

banks and then repays
proceeds of the sale
bonds. But there is
no
market
for mortgage bonds
in an inflation, and the Central
Bank
is stuck
with its "shortterm" housing credits.
So is the
circulation with the money
of

and

outlook

their

in

was

short-term

a

thumb' of "the/central
people, out of the

the

indigenous

overwhelmingly

be

to

three

or

one

supposed
transaction.
The
National
Mortgage
Bank
(Credit- Fonder)s. borrows
from
This

construction.

while

determined

are

under

come

7,000,000

medieval

two

for

who

does

which' is an appre¬
in
upsetting
the

structure: vfor the last two
it
has financed housing

years

re¬

France

permit

business.

-

factor

ciable

living in that country,

generations,
not

the

of

million

1.5

them

of

most

such

no

because
the

of

of

thing

price

But

possible

sistance

lend;'to

B^nk

concession

is

to

banks

The

ap¬

investigation division of Keystone
Custodian Funds, Inc., in Boston.

with

supply the funds Wx.icn

the

more

dend only about

shareholders.
Empire
February of this year this year.
After all, the shares
paid a 4% stock dividend, main¬ once
paid $24, equivalent to $12
taining the new capital set-up on on the present stock.
the old $3 annual rate; in other
Despite all this favorable news
words, paying what in essence was
for bank shareholders, these banks,
to

Trust

financial structure,
products, markets, raw material
supplies, labor situations and the
corporation's position in the over¬
all industry of which it is a part.
For many years he was senior
analyst with the securities divi¬

of New York (it disburses in

15,000

than

more

peased by some concessions along
the lines of a partial self-admin¬
istration.

their

ments,

indicated

intention

k

of

holders

race

the colored population is sick and'
tired of the whole thing.
By all

in

large-size

morale

na¬

Berber

or

Their

their

fighting

That is what makes
for
perpetual full employment,
France had no serious unemploy¬
ment even during the worst days
of
the
depression.
The trouble
is
that
the
Central
Bank, the
Bank of France, does not seem
to care much either and proceeds
outlays.

its

military position is
extremely difficult, their losse$
pro-rata
excessively
high,
and

security ana¬
lyst of wide
e x

Arab

of

men.

a

,

of

The

that

Borchardt,

an

number

WHITES.

tionalists

them saw New York Trust. Other rumors, Borchardt
Herman Borcnaruc
opening quotation of 3 cents for which there has been no con¬ brings to his
bid, offered at 5 cents. Just before firmation, have been going the new associa¬
to
Sidney
L.
tion,
according
expiration the market was around rounds.
Chase Manhattan paid $2.25 in Schwartz, experience and training
40 cents bid.
A canvass by this writer of a 1956; now it is on a $2.40 annual in analyses of corporate manage¬
first day of trading

mother country, not a colony
—has shifted from the Arabs to

expanding

business keeps

French

the

Stock

Coast

page

France—A Perilous Menace

Montgomery

Co., 460

&

has announced

Corn

Chemical

just

of

stocks

to

Sutro

Street, members of the New York
and
Pacific

$3

With the expiration on July 22
of the offer of rights of First Na¬

senior partner

Schwartz,

L.

ney

from first

1957

Undeviating Inflation in

FRANCISCO, Calif.—Sid¬

SAN

Thursday, July 25,

and Financial Chronicle...

the

Frenchman?

them from

It is
the

long story, of course, but

essentials

out in
may

a

a

What keeps

"going straight?"

may

few points,

be

drastic

brought
as they

sound.

The

first

point has to do with

politics and the Constitution. The

Number 5658

186

Volume

.

.

The Commercial and Financial Chronicle

.

a
wholly-owned
subsidiary
of more than 780 calalog sales of¬
1945 time a legal three weeks at full
Sears,
Roebuck
and
Co.,
the fices throughout the United States,
(which it payr\with the usual one to two
world's largest general retail mer¬ its territories and
regrets now) of abolishing the up- weeks extra at half pay at the
possessions.
chandising organization. In March,
per chamber, the Senate.
As the Sickness Security's expense.
If '
1957, Sears increased its equity
monetary reforms of
1§28 and pressed for an answer about the
investment
in
the
Acceptance Parker, Connaway, Holden
1938 have shown, it was toe Sen- future, his answer is unalterably:
Corp. from $35,000,000 to $50,000,ate, and the Senate alone, that the government will have to take
.PORTLAND, Oreg. — Hunter
A nation-wide syndicate man- 000.
could and did put over unpleasant, care of us. And who takes care of
Parker, Connaway & Holden has
Proceeds from the offering will
unpopular measures—-being an as-. the government? Why, Uncle Sam, aged by .Goldman, Sachs & Co.,
been formed with offices at 430
sembly of financially independent of course.
Halsey, Stuart & Co. Inc. and Leh- be used to purchase customers in¬ Southwest Morrison-Street to en¬
stallment receivables from Sears,
men, each representing a larger
man Brothers placed on the margage
in
a
securities
business.
territory rather than a fairly small Craiff-Hallum Adds
yesterday (July 24) $50,000,- Roebuck and Co. under arrange¬ Partners are Hunter- C: Parker,
circle as the Deputy does.
The
™
000 of 5% debentures due July 15, ments similar to those under which Dean H. Connaway, and Glen A.

French National Assembly of
made

Bankers Offer Sears

terrible mistake

a

Roebuck

>

Acceptance

5% Debentures at Par

,

.

„

it

latter could tell his voters that

him the

on

r*i1982 of Sears Roebuck Acceptance

measures

of stabiliza-

tinn without regard

feelings.
Presently the Rand Tower,
poor deputy nun nOVv Axca. c, w vu
^^1
l
| i j
|
refuge and. the single Chamber,
v» JCharles Tabor Opens
the sole organ of sovereigntycon- hJLLSBORO, Tex.--Charles' E.
sistmg
largely of national and ipabor js
conducting an investment
local pressure group representabusiness from offices at 105 West
tives, is incapable of doing any- Ehft
thing that would hurt the vested *iim'
.

-

....

able prior to Jan. 15, 1970. On and
after that date, they may be re¬
deemed at the option of the com¬
pany

v

'

;

acclimatized

become

much

'

They
that

as a murmur.

Jan.

ended

was or^nizea last November as

31,

BEVERLY

HILLS; Calif.—LeA. Owens and Adolph E. Mora
have joined the staff of T. R. Peir¬
roy

year

Sears, Roe¬

1957.

sol

der

plants,

&

Co.,
9645 Santa. Monica
Mr; Owens was previ¬
ously with Walston & Co,,. Inc.

buck and Co. operates 11 mail or¬

Boulevard.

726' retail stores and

X

■

'/*

■

-

^

;v

XX4

all know, or should know,
/ V'
prices Will rise further, if X'X-X.
.

One. scarcely hears a
country which: is t XX

French do?

in. this

protest

literate

100%

articulate.

and

What

least

at

durable

-X';; X:

things

One of

H. P. DODGE. Awarded Shewhart

H. T. FRIIS. Awarded Medal of

AXEL G. JENSEN. David Sarnoff

three winners of the 1956 Nobel

Medal by American Society for

Honor, Institute - of Radio Engi¬

Gold

Prize in

Quality Control, for original

neers

WALTER H. BRATTAIN.

happens is that
,

semi-durable, if only
The rich go for oil
went up five-fold
in two years' time), or for houses.
So do. the wealthy from the North
African provinces who have re¬
patriated their capital. Real estate
or

on

bicycle.

stocks

f.

150%.

those who have money buy

<v

fiscal

the

•

without as
It is faseinat-

stride

ing to watclf them, at this writing.

.

during

X'j 'X.f>-/

so

.infla-

recurrent

to

them vin

take

♦£'

billion

("Special to The Financial Chronict&e)

v

tioiis and devaluations that they

l->j

8,587,764
accounts.
Total sales of Sears,
Roebuck and Co. were over $3.5

ac-

Sears Roebuck Acceptance Corp.
organized last November as

Two With Peirsol

in

lias to do With ^

The French have

tion.

.

$1,039,128,814

French,; people themselves— ?>%';' ':•
!with* Forty Years of Vlpfl^-^ ;

and

a

taled

,

?. Acclimatized
[The seconds point

the

at their face amount and

crued interest.

.

.

Holden.

_

voters')

interests.

Sears has sold receivables to banks

MINNEAPOLIS, Minn. —Clif- Corp. The debentures were priced since 1937. On Jan. 31,1957, Sears'
outstanding
installment
receiv¬
E- S?7e?°n bas b<r?n adTded at 100% and accrued interest,
ables arising from credit sales to¬
to the staff of Craig-Hallum, Inc.,
The debentures are not redeem-*

the wicked Senate that forced

was

,

of

the Transistor,

electronic

era

a

and Valdemar Poulsen Cold

MedaL Society of

Motion-,

Picture and Television- Engineers,,

Medal, Danish-Academy, ofTech¬

for technical contributions to tele¬

quality control—used by Western

nical Sciences for important work

vision; Hagemann Gold Medal for

in

Industrial Research,

.

the tiny

device which has created

con¬

tributions to the art of statistical

semiconductors and the inven¬

tion

(which

Physics for investigations

Electric

new

in communications.

items of

in

millions

making

of

application of short and ultra¬

short radio

telephone equipment.

nical

waves.

Royal Tech¬

College, Copenhagen.

prices, in... Pfiris' .and ,.pn the Ri-,-vi
yiera hav^ reached. unprOcddent0d/\.^^- J, • ■
levels rand

keep' going.:

up.

'The

implements, feftil-"
;
M other tangible '
thing—but no more .-gold.
They
...:
keep the gold coins-they already
have, but- do not /add to this
"liquid" reserve, having been dis} courage#, by the trick of the Bank ;
of France that buys gold bars end
sells freshly minted; gold coins,'

farmers; store
izers'and

every

;

1

iX
-

.

bringing down

the premium

the latter.

on
•

'

What about the

majority with¬
out excess, money for investing or
hoarding? They ask for higher
wages
and get them, too.
The
shopkeepers pronto start raising
their prices. A new price inflation
is threatening France—one that is
not likely to be held back by the.
moderate "counter poison" in the
form

credit

of

restrictions

with

which Monsieur Baumgartner, the
President of the Bank of France,

tries

to

et

the

offset

outpour to

money

effect

cover

the

of

;

R.

WARREN A.MARRISON. Awarded

Physical Society of

amplifier
long
ways

to

it

makes

This

carry

conversations

for

more

and

ican

Metallurgical

work

City of London, for pioneer
on

quartz crystal oscillators

precision standards of

as

high¬

covery
in

time.

of

Mining

melting.

This

the extraordinary

of

needed

same

voices

over

germanium

by

comprehensive theory
This

communication.

how

new

greatly

understanding of

communications

systems

It

points to

handle

in the

manufacture of transistors.

telephone line.

a

illuminates our

purity of silicon

and

the

simultaneously.

butions to

provides

is used to send many

programs

Medal

the Franklin Institute for contri¬

and

Engineers for dis¬

of and pioneering research

zone

Stuart Ballantine

the

Amer¬

This control of electrical vibrations

telephone

TV

Institute

shipful Company of Clockmakers

new

possible

microwave

distance

Gold Medal, Wor¬

of the

England for his original work on
the traveling wave tube.

hewson Gold Medal by the

CLAUD? E. SHANNON. Awarded*

W. G. PFANN. Awarded the Mat-

the Tompion

KOMPFNER. Awarded Dudell

Medal by the

information.

ways to

improve service.>.

i

the budg¬

deficit.

Responsibility for Demoralization
The

the

true tragedy of France is
near-complete fatalism with

which

her

people take

flation-wave

"on

bother

to ask

leads.

For

the

where

a

new

chin."

this

in¬

Partners and Pioneers in

Few

process

Progress

the

moment, the na¬
tional
gold reserve
(the $1,000
million left of it) and the coun¬
try's international credit—an ad¬
ditional

$200 million from the
European Payments Union—are
being squandered. In a year or so,

the

new

export premiums and im¬

port restrictions
balance

will

restore

the

of

trade, so the French
figure. Beyond that, they do not
even
figure either nationally or
individually.
How

times can the
franc still depreciate? What will
happen to the average French¬
man, his business or job, to say
nothing of the fixed income recip¬
ient, and the
(some
9
million
of) Social Security beneficiaries?
many more

On this page are some

of the Bell

For

Telephone Laboratories scientists and

and

engineers who have been honored

ness.

re¬

Growth

begets growth. Research

vistas. The words

cently for outstanding achievement in

reveals

the sciences that bear

years ago are even

We

are

on

telephony.

proud of this fine recogni¬

new

of thirty

more true

"The future of the

telephone holds

forth the

tions of the many

always greater and better and of a

scientists

who

are

telephone dreams

helping

come true.

to

make

progress

promise of

a

service growing

the end of which

ecy

no one can

Never have there been

portunities for wholly
ments

much

no

greater headaches than

the

arrangements for their forth¬
coming vacations — for the first




Working together to bring people together

...

BELL TELEPHONE

in

the

as

greater

well-rounded

many op¬

develop¬

research

to

so

put

All that has been done

just the beginning.

SYSTEM

so

new

telephone service and;

behind them.

On the surface, the Parisians seem
to have

has been, there is still

progress to come.

is

foresee."

of that proph¬

has been fulfilled. But great

progress

today.

tion of their work and the contribu¬

other engineers and

A considerable part

always there have been dreams

high hopes in the telephone busi¬

26

and Financial Chronicle

The Commercial

(398)

P. F. Hartung 50 Years

islative

With Harris, Upham Go.

sanctuary from

tion, this principal
business

Public

Utility Securities

freedom

will

and

tailored

problems, strict
at
on

Power & Light Company

the
our

competi¬

guarantee for

is

undermined,

eventually be

emptions

By OWEN ELY

Delaware

Thursday, July 25, 1957

...

lost.

as

immediate

they

may seem

threaten

moment,

inroads

fundamental economic lib¬

erties.

Only

by cherishing these

liberties and the laws which

Delaware Power &

Light

serves

Wilmington
and
vicinity
electricity
and
gas,
and

with
three

counties

tricity.

with

Delaware

of

elec¬

subsidiaries,

Eastern
Shore Public Service Co. of Mary¬
land

Its

Shore

Eastern

and

Service

of

Co.

Public

Virginia,

provide
electricity in most of the rest of
the "Delmarva" peninsula.
The
population served with electricity
is 557,000, and about 232,000 re¬

distribution system in
the
Wilmington
area
is
being
strengthened in several areas to
meet future demands. Application
for increased quantities of natu¬
ral gas wex'e recently made to the
pipeline supplier, and it is ex¬
pected that an additional 4,000.000
cf of
natural
gas per
day will
The

Major industries in the Wilming¬
area
include
shipyards and
carshops and the manufacture of
ton

group which dominates his
particular area of endeavor. Anti¬
trust, then, re-emphasizes Amer¬

dynamic

only

bonds

of

return (after Federal in¬
come
taxes) of about $1,300,000
per year
on
the investment of
$22,000,000.
At the end of ten
years and at five-year intervals
thereafter, Tidewater has the op¬
tion to purchase the plant at its
a

amortized value.

System

A.

derived

electric

from

operations, 14% from gas and 6%
refinery service operations.

from

The latter
annual

which

expected

are

revenues

would

increase

of

refinery

of

have

19%

had

During the five

yield

to

$8

million

reflected

in

1956

an

if

the

for

operated

months instead of

12

one.

years

and three

months ended March 31, 1957, the

System
on

spent

about

$87

construction and the

million

company

expects to spend over $100 mil¬
lion

in

the

next

last year, when
12%
fewer
shares.

earnings for calendar

1957

were

this

year,

forecast

which

five

Ex¬

years.

penditures for 1957 and 1958

are

Delaware

which

will

consist initially of two 80,000
steam units.

lew.

The first unit is

ex¬

pected to be completed in the late
this year and the second by
the end of 1958. By that time it is

fall

planned to have the Indian River
the

connected
area

year

$2.88 early

amount
on

Electric
and

revenues

17%

gas

months

in

were

the

March

12

and electricity to Tidewater Oil
Company's
new
refinery
com¬
only on Dec.
1, 1956,

menced

earnings from such service
tributea to
and

both

increased

holders

higher

net

con-

revenues

income.

Stock¬

advised

by President
Plank at the annual meeting that
the long range outlook continued
optimistic. "We are experiencing
were

increased

interest

by

concerns

looking for new plant sites in this
area," he stated. "We believe that
cur

location with respect to mar¬

kets, living conditions and climate
is

favorable to

a

continuing high

Vienna
with

Stations
the

this year's range of 51

At

this price it is

selling at 17.8 times
earnings, and 16.4 times
estimated
earnings loir the

the March
the

calendar

year 1957.
v
,
.
Paying $1.80 currently, the stock
yields about 3.8%.
.

inter¬

—Common Stock Record-

Wilmington

Revenues

U. Harris (left), and
native

A

Mr.

of New York

City and resident of Teaneck, N. J.,

——~f—.1

——

'

Continued

from

Approx.

we

serve

offers

so

much

industry.

has,moreover, campaigned against
restrictive
practices
which

the

cartelization — price
allocation of markets and

accompany

fixing,

customers, production limitations
and
restriction on technological

improvements
the

which

as

—

of

freedom

repugnant to

enterprise

upon

is based.

our economy

Overriding Considerations
Of

Other

commerce.

considerations,




FREE
COPY
Box 899,

Dept. K

Production

Defense
certed

to

industry

Act

for

action

necessary

although such
ar¬
must be strictly su¬
pervised by the Attorney Gen¬
eral.
An example is the recent
Middle East Emergency Commit¬
tee acting to maintain the oil sup¬
defense,

rangements

ply to Western Europe.
Other
statutes, such as the Webb-Pomerene

Act, provide limited immu¬

nities for concerted action in spe¬

1.48

34

2.32

41-30

cial circumstances. Even where no

31

2.08

1.40

34-27

29

1.84

1.30

27-24

1952

26

1.75

1.20

26-23

1951

23

1.68

1.20

26-21

statutory
immunity
exists,
the
Department
of Justice
consults
other
interested
agencies before

21

1.95

1.20

24-19

1949

19

1.95

1.20

22-17

1948

18

1.86

1.00

19-15

15

1.60

1.00

25-16

ments

14

1.82

1.00

27-19

abroad.

cases
which might affect
relations with foreign govern¬

filing
our

ited

to

to it.

with

Kerr & Bell, 210
Street, members of

interests

defense

our

or

exception must be lim¬

the need which gave

rise

Basically, the antitrust phi¬

losophy is paramount in our for¬

Its

operation
in

inconvenient

be

may

instances.

some

City 10,
Utah

the Pacific Coast Stock

Our

All

Salt lake

has stated that procurement over¬

were

previously
Lambert Co., Inc.

Exchange;
with Akin-

seas

in

JUNCTION,

ated

with

have

Harry

•Main Street.

become

Colo.—

W.

411

one

areas

by this policy

where

restrictive

the rule, but .it af¬

are

The

abroad.'

made

or

corporate
is

a major
States of

strip and tubing and
important producers of

in

semi-finished

shapes.

The principal uses of nylon are in

le¬

whether

be

not

or

agreements intend
effect

such

industries

where

a

material

re¬

or

sub¬
imports,

our

upon

and

commerce.

Antitrust enforcement is

an

im¬

portant step in promoting inter¬
Where Americans

national trade.

prevented by our laws from
agreeing to exclude themselves
from trade in certain markets as

are

a

condition of trade in others, or
invest

patent

technological

know-

where

Americans

rights

and

how abroad

the condition that

on

(with right to sub-license) for the

a

trade

domestic

or

acts

have

or

United

States

from

the

firm

of

Knapsack - Griesheim of Frank¬
furt, Germany, for a new coating
process which is called the "Whirlclad" process in this country. The
process consists essentially of dip¬
ping a preheated article into a
fluidized bed of finely powdered,
dry thermoplastic material. The
properties thus added may be re¬
sistance to wear, low surface fric¬
tion, anti-galling,
chemical and
corrosion resistance, or color.
For

the

three

months

ended

future capital
March 31, 1957, the company had
markets,
net sales of $1,378,938 and net in¬
trade is definitely restrained
in
come of $162,786, equal to 28 cents
the long run.
Private restrictive
agreements in international trade, per share. In the like period of
as
at home, prevent natural ex¬ 1956, net sales totaled $1,051,476
and net income was $101,519, or 19
pansion and continual growth of

they do

not make

investments

trade and

those

in

commerce.

cents per share.

It would be

i

anomalous to attempt the promo¬

Joins Harold Wood

bility in the free world, while at
the same time
allowing private
restrictive

agreements

to

(Special to The Financial Chronicle)

ST.

Minn.—Frank
H.
joined the staff of
Harold E. Wood & Co., First Na¬
tional Bank Building.

under¬

IV
In

sum,

then,

businessman has
in the antitrust

protect

his

the

a

very

laws.

liberty

dom to act like

a

American
vital stake

(Special to The Financial Chronicle)'

his free¬

businessman

COLUMBUS,

—

and

has

Three With Paine, Webber

These laws

and

they seek to keep him free from
artificial restrictions imposed by
group

PAUL,

Winsor

that policy.

mine

veniences.

,

rod,

of the

"Teflon"

Finneran,
and

and
monopoly
power—free from state regulation

Jane

pressure

come

control.

Jr.,
P.

Ohio—J.
LeRoy

E.

Mykrantz

Edward

Freter,

have

be¬

associated with Paine, Web¬

ber, Jackson & Curtis, Huntington

'

i

...

Let
that

*

.

Small

affili¬

Peters,

new

the

benefits far outweigh those incon¬

Dwain T. Jackson and John E. Te-

Grotenhuis

those

Defense

firms its belief that the long term

(Special to The Financial Chronicle)

GRAND

is complicated

practices

Join H. W. Peters

Department of

own

Polymer Corp.

nylon

for the main¬
enterprise sys¬

pay

eign trade policy. Admittedly, it
raises many problems as yet un¬
resolved.

other

for

producer in the United

tion of economic strength and sta¬

But any

Seventh

a

gal test of whether antitrust laws
quiring "non-sticking" properties
apply to any particular act or
is required. The company also has
practice may generally be said to
acquired
an
exclusive
license

con¬

47-37

West

construction of

standard

exports

policy in special situations.
Thus, provision is made by the

Range

associated

of

subsi¬

gears, bearings, valve seats, cams,
main, the antitrust
rollers, washers, wear surfaces and
requires only the same
electrical insulators. Among other
competitive conduct abroad as at
uses, "Teflon" is widely employed
home. It has been recognized that
by the electrical industry as insu¬
the United States has the right to
lation for high temperatures and
protect itself from restraints upon
as
coil and cable wrapping, by
our foreign trade even though in¬
the chemical industry for gaskets,
volving acts and agreements per¬
seals and valve parts and by other

In

tem.

trust

Paid

ANGELES, Calif.—Bryan
B. Odom, Milton B. Sheftall and
Roy E. Warnock have become

price to

stantial

$1.58

LOS

small

principally questions of national
security, may override the anti¬

$2.50

(Special to The Financial Chronicle)

Write for

advance

English

formed

and

The

tenance of the free

formed

antitrust, though im¬
portant, is but one aspect of Gov¬
ernment
policy toward
foreign
coure,

Earned

Three With Kerr & Bell

for

and

purposes.

The Ameiican Businessman

opportunity
to

machinery, the

ratory

$33

1946

loans

additional funds to the company's

What Antitrust Means to

(Mills.)

•

ment

diary, the

Year

1947

to retire

company

Research and Development Labo¬

1350

area

by the
bank

.

12

page

1953

explains why the

■

proceeds from the sale of
70,000 shares will

additional
used

recently

1954

AREA RESOURCES BOOK

•

■

.

,

70,000 shares
Corp. common

capital,
including
the
purchase and installation of addi¬
tional
production
and
develop¬

—1———————•—————1—~————-

-■■■'

■

■

July

on

offered

Polymer

existing
working

New York Preparatory
School and Cooper
an engineer.
He joined
Harris, Winthrop & Co. as a runner and was promoted through
various positions to head cashier.
Mr. Hartung was admitted to
partnership in Harris, Upham & Co. on December 12, 1929.
was

1955

lines.

be

graduated from
Union College as

Hartung, 64,

Group

Sons

&

underwriting syndi¬

an

which

Net

the

Henry U. Harris, senior partners.

1956

by high voltage transmission

be¬

freedom

stock, class A (par $1 per share—
lion-voting) at a price of $19.50
per
share.
This
offering
was
quickly completed.

of Harris, Winthrop & Co. He was presented with a gold
cigarette box inscribed with the names of all partners by George

9%

While deliveries of steam

Edwards

The

of

Hartung

zation

first

up

G.

cate

(center), partner and floor member of
Harris, Upham & Co. on the American Stock Exchange, has com¬
pleted fifty years with the nationwide investment brokerage firm,
starting at the age of 14 in July, 1907, with the predecessor organi¬
F.

Philip

seems

the

rate of growth."
The stock has been selling re¬
Generating Station in cently around 47
compared, with

southern

and

at

conservative—based

estimated at $52 million including
about $23 million for the Indian
River

the

in

74c

of

were

Share

to

for
the
12
months
ended March 31, 1957, of which
was

quarter

with

compared

political

18 headed

quarter results.
amounted

revenues

$41,554,101
90%

and

first
there

like

ft. G. Edwards

-

plus

free

a

Polymer Stock Sold by

,

,

a

secure

longs only to the vigilant.

approximately

is

1987,

follows:

that

rests

the foundation of

on

dom

paint and chemicals and rubber,
Millions
y
steel, paper and fibre products. Long-term debt
$82
50
Du Pont is, of course, an impor¬ Preterred stock—
32
13
tant customer and is represented Com.'stock equity (2,091,000
shares)
- 52
31
on the board. Food processing and
100
$166
poultry raising are of importance
in the peninsula area.
As indicated in the table below
On Dec.
1, 1956 the company share earnings did not show much
began to operate a plant to sup¬ net
change in the first half of the
ply electricity and steam for a
postwar decade, and declined in
new major
oil refinery of Tide¬ 1951.
Since that year, however,
water Oil Company about 15 miles
they have increased steadily and
couth of Wilmington.
Under-an
gains since 1953 have been par¬
agreement with Tidewater,
the ticularly good. For the 12 months
company is reimbursed for all ex¬ ended March
30,1957, they reached
penses incurred in operating this
$2.64 compared with $2.43 in the
plant, and receives amortization
corresponding previous period. In
payments at the annual rate of the first
quarter share earnings
3Vz% of the cost of the plant, of 79e ran ahead of the
budget,

belief

democracy

economy—and that economic free¬

first mortgage and collateral trust

as

fundamental

ica's

capital struc¬
forma
sale of $15 million

the recent

for

pro¬

businessman

trade

of Dec. 31, 1956, pro

as

the

can

regulation, either by gov¬
ernment, or by a monopolist or

consolidated

The

them,

avoid

next heating

for the

available

be

tect

season.

ture

ceive gas.

gas

Ex¬

to

me

the

Price

to

-

*

Businessmen, for their own wel¬

1

Pay

emphasize,

fare,

however,

inconveniences

are

-

;

Liu

a

role

Bank

must appreciate antitrust's
safeguarding freedom for

initiative.: By

pressuririg for leg¬

Building.

previously

in

,

with

Mr.

Freter

Merrill

Pierce, Fenner & Beane.-

was

Lynch,

Volume

Number 5658

186

.

.

The Commercial and Financial Chronicle

.

(399)

27

A

Continued

from

2

page

Bosfon-Halsey,
Stuart Group Offers

A

account .for about 50% of the total

&

volume.

(July
the next

call

the

lor

stores

opening

with

about

one

about

the

of

plans

10

floor

total

a

million

of

feet,

square

pres¬

Revenues from

units

new

new

area

tripling the company's

store space.

ent

months

18

expected

are

Electric

to

Inc.

Gas

BB,

Co.

Electric

funding

due

of

the

July 23

and

bonds,

June

1,

issue

at

series

at

award

competitive

sale

bid of 99.92%.

on a

sale

to

bonds
retire

be

Gas

of

applied to¬

additions

of

and
to

its

Following the sale of
the

company

ob¬

tained for temporary financing of
such additions.

the

bonds

option

also

terest.

1962,

of

the

the

for

105.80%

to

redeemable

are

at

and

company

sinking

fund

at

plus accrued in¬

par,

However, prior to June 1,
none

the

of the bonds

may

be

company

or

for

the

sinking

fund, through

any debt refunding
operation which has a lower in¬

terest cost to the
company than
the interest cost of the Series BB

bonds.

proposes

approximately $60,000,-

of short-term bank loans

000

redeemed, either at the option of

between $10 million and $25

range

the

will

cost

properties.

The

1989,

won

the

Pacific

re¬

and accrued interest, to

yield 4.95%. The group
of

Pacific

first

mortgage

5%,

100.798%

yesterday

$60,000,000

24)

&

offered

from

of

and

the

ward

headed by The First
Corp. and Halsey, Stuart

Co.

funds

ury

group

Boston

proceeds

the bonds will be added to treas¬

Pac. Gas & El. Bonds

I Like Best
Over

Net

First

v.

•

Gross

operating

company

had

customers

and

1,761,997
electric
1,483,371 gas cus¬
tomers; approximately 88% of the

r

'

Gas

and

Electric

is

also

electric

"."
f

\

t *,

.■

Flock, Long, Poole

ing the 12 months ended March
31, 1957, were $479,042,476 while
net income was $75,644,256.
Pacific

were

customers.

dur¬

revenues

customers

gas

i

And Vanadore
NASHVILLE,

an

Tenn.

Open

—

Truman

operating public utility engaged F. Flock, Hubert Long, Frank
principally in furnishing electric Poole and William L.Vanadore are
and gas service throughout most
conducting a securities business
of

northern

nia,

and

Califor¬

central

territory with an estimated
population of approximately 6,250,000. On March 31, 1957, the

from offices at 311 Church Street.

a

Mr.

Poole

was

formerly with R.

S. Dickson & Co.

million annually. One of the new
stores will be built in New York

City, another north of it in Scars-

dale, two in Philadelphia, three in
New Jersey
(one «'with a super¬

market), and one each in Poughkeepsie, N. Y.; Hartford, Conn.;
and Harrisburg, Pa.

How

from steel

cutouts
•••.'.

..."

.

(

But why out of

houses does Korvette appear des¬
tined

to

eral

'

■

1

::

.' ' /'

Sears,

There

coils

Roe¬

are

sev¬

down

cut

car

costs

reasons:

It has gotten

(1)

is off

and

the

become

of its field?

buck

' "■

all the discount

to

difficult to

a head start,
big lead—always

a

No

how your new car

matter

in any eco¬

overcome

is styled,

nomic sphere.

steel in continuous

Management has the good
of not being schooled in

(2)

lengths

fortune

means a

saving

the "old" methods of merchandis¬

the top people

all

ing;

grew

up

.•

•

•

'

'■

•

>

..

■

.

■

•

,

..

,

with the company.

begin

Stores

(3)

to

•piWMif II;'IlllitfllIIIII v

show

II II

a

profit at opening or shortly there¬
after, with profit and sales po¬
tential improving for a number of

thereafter.

years

Lastly,

the current expan¬
is expected to cost
approximately $28 million and
(4)

sion

program

should be available without resort
to

stock

common

'The

gradual

Korvette's

convertible

or

equitv financing. "

i

.

of

appreciation

common

stock may be

expected as earnings increase from
the profitable reinvestment of in¬
ternally generated cash. By limit¬
ing cash dividends (none are cur¬

the company makes

rently paid)
available

large and growing pool

a

funds.

of

These

factors

to

seem

indicate that future expansion can
be

accomplished without

lution of the
Korvette

has

any

di¬

stock.

common

1,242,000

shares

outstanding of which management
is understood to hold

about half.

In

addition, there are warrants
outstanding expiring Nov. 30,1959

purchase of 75,000 shares at
$11 each, and employee options
expiring Dec. 31,1959 for the pur¬
chase nf 51,800 shares at $10 each.
The shares are listed on the New

for

Clothes and

lished last .year.

V'^T;

In

conclusion, it appears that
approaching the posi¬
tion of one of the 50 largest mer¬
Korvette is

cars.

Milady

—

chic

of steel that add up to the
she now drives are processed.

today's manufacturing tecliniques play
an

important part in making possible,

taken to. And

1957
period of

earlier by over 32 % while
earnings increased to 70 cents per
share from 49 cents reported in
Earnings, for the fiscal year
end Sept. 30 are expected to
about $1.60 per share compared

1956.
to

be

with $1.26 for

the

comparisons

are

earlier.

year

excellent

These

year-to-year

expected to con¬

one

of the most impor¬

modern automobile

very

aggressive

Separate parts of the whole—roof,

purchase of the shares is

recommended

by

those

desiring

capital appreciation.

Hayden, Stone & Co., members
of the New York

have
at

17

Stock Exchange,

opened two offices in France,
Place Vendome,

at the Carlton

Paris, and

Hotel, Cannes.




Strength, Ductility "Musts"
After the

coils,

pieces

they

blanked out of the

fed

into

stamping

curvature and
of the separate parts. Every

for the

formation

are

are

proper

the finest

it must work

quality steel from coils—
the case, from
sheets. Result: an appreciable saving
and not, as was once

in

manufacturing time and costs which

means
cars

more

for your money

in the

buy.

you

It's

the forming

dies. And for long die life,

is

required,

too,

for

the best

paint adhesion and appearance.

of a hood blanked
Its angled shape is such

reversing the
pattern, the hoods can be cut out
of a continuous length, or coil, of steel.
alternately

Hoods

can

that

Milady, and

in her family, looks forward
eager anticipation each year.

everyone
to with

With

facilities

ideal

wide sheets,

coils of the maximum
be readily

for

Great Lakes

National's Role

National

Steel—particularly through

Detroit—is

a

Corporation in

deliver

weight that

can

handled by present trans¬

portation facilities. This means exten¬
sive savings to its customers through
continuous processes,

production effi¬

ciencies and reduced scrap losses.

Through the skilled engineering
manufacturing of the automobile

and

industry, this nation each year enjoys
more economical cars.
goal—through research

safer, stronger,
Our constant

and

eoojxiration with the automobile

industry—is to make better and bet¬
ter
steel
for
still
greater safety,
and

and

in the cars
and tomorrow.

economy

trucks of today

SEVEN GREAT DIVISIONS
WELDED INTO ONE

.

COMPLETE^'{

STEEL-MAKING STRUCTURE

Steel

Company

•

•

Welrton

Si run-Steel < Corpora tion •

llunnu Iron Ore Company •

its Great Lakes Steel

making

can

Product* Company • The

National Steel

Hanna Furnace

Corporation • National Mine* Corporation

major supplier of the

be blanked out side by

side from the full length of the
no

manufacturing the beau¬

automobiles

Great Lakes Steel Cor|H>ration

simplicity. For example, take

by

tiful

strength

and stresses of deep
drawing operations demand careful
The pressures

the cutout pattern

with

properly to the limits of

it must also be uniform.

face

saving that's almost primer-like

a

in its

automobile
parts takes strong and ductile steel, for

steels used in

processing and control if the steel is to
flow true to form. A well prepared sur¬

Greatly Curtails Waste

that

Two Branches in France

of

step of the fabricating of

from steel.

Hayden Stone Opens

as scrap

thousands of feet; the
maximum practical length of steel in
sheets is about eighteen feet.)

-lengths

side and deck panels,
fenders and so on—are blanked out of
doors,

hood,

and

For this

dynamic management.
reason,

fragments

(Steel in coils is obtainable in

presses

tinue in the future with the aid of

Korvette's

a

the advanced

production is this:

the year

stead of

styling
concepts that the ladies have Teally
economically,

point of sales in the U. S. For the
same

used in¬
single coil. And each sheet

great many sheets must be

waste.

But whether she knows it or not,

panels

blanked out of steel in sheets, a

car

tant advances in

sales exceeded the

are

loses its two end

chandising firms from the stand¬
six months ended March 31,

other odd-shaped parts or

or

the parts

York Stock Exchange and are cur¬

rently selling at around 19 down
from a high of almost 26 estab¬

—

style-conscious — knows what
she wants in both, although it's likely
that she neither knows nor cares how
and

coil,

waste other than a fragment

of steel at each end. But

when hoods

NATIONAL STEEL
GRANT BUILDING

CORPORATION
PITTSBURGH, PA.

Financial Chronicle

The Commercial and

as

moment is

convic¬

American people. Real leaders with

minds of the

Continued from first page

and the ability to lead popular thought
good Americanisms will be required to undo the
mischief that has been done.
It is disheartening to observe that despite dissatisfac¬

tions,

We See It

As

Republican party for a long time, and most
ished traditions of the American people.

of the cher¬

courage

was

in 1934 at a

then Chairman of the Republican
early date made it clear that
he understood at least something of the task that con¬
fronted his party. But. by proposing to set up a committee
to "make a study of current economic questions, so that
their reports may furnish the basis of a constructive and
forward looking Republican legislative program," he also
made it clear that he was not prepared to proceed with
Henry P. Fletcher,

that

vigor to get rid of the New Deal nonsense. It was at
time that we felt obliged to warn that "if what
Fletcher and his associates and allies have said thus
is all that the

country

Senators and

Republicans

elect more Republican
Representatives next November, the result,
inducement

an

as

Mr.
far
intend to offer to the

disappointingly small."
.
favor a repeal of
the processing taxes and a discontinuance of Federal
payments to wheat growers, cotton planters and hog or
cattle raisers as inducements, reinforced by discriminating
taxes and other penalties, to reduce acreage or production
and bring higher prices," we then pointedly asked. "There
is equal need of clarity regarding such important matters
the return to the gold standard, silver purchases and
credit or currency inflation, price fixing and wage fixing,
government loans to industry or in aid of housing and
mortgage relief, government control of banking, and the
securities and other markets, and the invasion of the in¬
"Does the

Republican party

.

of

Tennessee

the

Valley

operations
added some

by the expanding

Authority"

we

20-odd years ago.
But the

grips with these basic questions, and the results in
both 1934 and 1936 are well known. And essentially so
matters remained when the time came in 1940 to elect a
They had not changed

in any important par¬

1944, and in 1948 even though the Democratic
candidate was at the time rather widely regarded as weak

ticular by

Republican party again was unable to gain the con¬
fidence of the electorate. By 1952 the Democratic party
the

had

begun to feel the handicaps
prolonged political success

and the impediments

is apt to bring. There
was a "mess in Washington," and the people were aroused
by a leader who personally appealed to them. Technically
there was a change. A member of the Republican party
entered the White House, and for a time had a slim
majority in Congress. Congressional support for the party,
however, soon slipped away, and the Republican Presi¬
dent soon proved to be nearly as New Dealish as his
predecessor had been. Now, further elections are ahead of
which

Republican party and it is no more nearly ready to
to grips with the basic issues of the day than they
were in 1934 or any of the other years in which they suf¬
the

come

fered

No Real Two Party

so

far

as

System

a

programs,

political philosophy or economic

and only one party
that one of
devoted to the American sys¬

programs are concerned there is one
here. If there is any good reason to
the

suppose

major parties is more
other, we are unable to find it, President
Eisenhower and his immediate associates are more mod¬
tem than the

erate in their

than

were

approach to current matters of public policy
and his chief advisers.

President Roosevelt

They may be more moderate than President Truman and
most of his advisers, but that is about all that can be said.
The truth of the matter is that President Roosevelt

only initiated programs which would have made the
fathers gasp and stare, but he popularized
doctrines which would have been anathema to all the
elder statesmen of former times. Much of this, thanks to
the influence of these false leaders, has now come to be

not

founding

&

without

the develop¬

price

incentive,
avail¬

is

assistance

considerable

able from the government

for the

asking. By this I refer to the vast
amount of metallurgical research

out

granted by younger elements in the population
have never known anything else. And with deep

regret be it said, it may well prove that the vast popu¬
larity of Presid°nt Eisenhower, along with his obvious
tendency to think along much the same lines, will fasten
for FRASER
these unfortunate ideas more firmly than ever in the

Digitized


pyrochlore

lum

a

of

Reactive Metals'

high price to warrant the kind
investigation which led to the

supplies of columbium
Fortunately, colum¬
bium
can
replace
tantalum in
many applications, and about half,
by weight, of columbium is re¬
quired to do the same job that

potential

and tungsten.

tantalum would do.

Beryllium As An Exception
There

of

do not want

I

to

to be "Pollyannaish" about

inherent

to

some

of the

Future

far

splurges of excitement are'
by the desire to use

stimulated

as we can

it in

the problems

moment,
metals

are-

are

lesser

of

city

quantity, but each time hopesdashed by its apparent scar¬
nature. Many geologists'
longingly and hard,;
without success, with the ex¬
in

have searched
Put

there are difficult
problems to be solved.

Bernardino,

economic

of

gambles to

long

certain

In

*

~

analyze

specific prob¬
to self-suffi¬

prospecting tools). For the time'
least, if I were one en¬
gaged in the research or develop¬
being at

not count

should

may

minerals,

reactive

the

of

ment

small

in anything but

lium

I

using beryl¬

on

quan¬

This condition may change,

tities.

however.

They

future.

For

are:

potas¬

sodium,
vanadium,
hafnium,
uranium

zir¬
and

given mineral

boron. These metals at the moment

present no problems of discovery
or
of a serious extractive metal¬

put its chips on a

(e x c e p t
spectrographically or
microscopically — both expensive

seeable

be

The

beryllium oc¬
constituent are low grade'
which

in

metal;" they are difficult to
and difficult to detect

in

'

metals require

regard

to.

pessimistic,"

tools.

prospecting

curs as a

of

States, and this should guarantee
self-sufficiency for the fore¬

conium,

company

proper .
minerals

our

sium,

one

production

launched

too

possibility of finding'
beryllium if we can find the

more

ciency, large reserves of many of
these metals are known to exist
within the confines of the United

taken in each step of the program.

instance,

the

individual

comment.

approach the problem
on several fronts, and it becomes
necessary to tackle simultaneously
physical
and
extractive metal¬
lurgical research, marketing, and
exploration development methods.
are

San

near

not

am

the

about

discovery" of

paper.

of

lems

necessary to

There

this

However

is

it

dilemmas,

the

I

it.

be

could

campaign
find

power—but that is not the subject

To

and

plant

or

in

used

are

and
be held

by lack of immediate mar¬
resolve such technologic

kets.

cannot

Signal Hill. The impact of these
metals will be felt where they

time exploration

extractive metallurgy may

steel

Kaiser's

example, research on a given
metal may be inhibited by lgck of
immediate ore availability, while
same

California,

Southern

possibly have an economic impact
upon the area similar to that of

For

back

reactive

in

re¬

metals,

collateral

at the

Recur¬

pectation that somehow, some¬
will be smaller and where, there may be large con¬
consequently the mines, metal¬ centrations of beryllium minerals
lurgical
plants,
and
marketing in the earth's crust. If a large-scalefacilities will be on an ', entirely
indispensable (meaning irreplace-i
different scale. A
tungsten, zir¬ able) use were developed, where'
conium, or columbium mine, with cost was not a serious factor, per-,
its metallurgical facilities located
haps
an
extensive
high-priced

obvious optimism
the future. True, while there
tremendous economic possibil¬

active

cAcv^pkiuiis.

in^^.

rently, metallurgists are intrigued

magnitude than those to be faced
by oil, iron, copper, lead, zinc,
aluminum, etc. The tonnage re¬

all of this in my

ities

the

at

see

Problems

Solve

How to

are

every

quirements

Furthermore,

for

exceptions to

are

rule; the metal, beryllium, may be

great

for them. The
curtain
of
secrecy
surrounding
this
research
is
rapidly
being

appear

quan¬

discovery and development of our

place, it is important

to remember that as

need

legitimate

required in large

those who search for it
require a stable market at

would

topic

In the first

carried out by and for the
military and the A.E.C. The re¬
sults of such work are generally
available to those who can show
being

a

columbium

program

weie

tities,

without pointing
specific aspects of - the

the

notoriously

are

.should
also
have brought forth tantalum, but

Development

some

ores

tantalum. The

in

by the potentialities presented by
problem that have an important the metallurgical characteristics
bearing upon the future of re-, of this wonder metal. It is light,;
active metals.
sjropg, fatigue and corrosion re¬
sistant, and it has a low nuclear,
Specific Aspects Affecting
cross section.
From time to time

is invested somebody else
lias discovered another deposit of lurgical nature not already solved,
similar material that is cheaper, but some of them will require the
and
easier
to
mine or process; construction of plants as the needs

Rare
•

Earth

point

this

At

Metals

we

the

that

may

or

rare

these

earth

metals

not have
metal field—•

may

in the reactive

uses

.

a

Box" of ele¬

veritable "Pandora's
ments

,

to

come

metals. Four of
cerium
(the

are:

most
plentiful), gadolinium,
materialize.
may have de¬
lanthanum, and yttrium. As will
There
is currently a
shortage
metallurgical process
become apparent, it is difficult to
only to find it is made obsolete of molybdenum for other than
discuss
these
metals separately;
through a new method developed reactive uses. A large part of its
The term "rare earth metals" is
by a competitor; another company supply is dependent upon copper
used to designate a group of ele¬
may invest in one metal only to
production, and the capacity of
ments originally known as "rare
find that research in the mean¬ the largest single mine source at
time has proved another metal to Climax, Colorado. Other smaller earths." They were misnamed be¬
be more suitable or superior to deposits are known but currently cause they are in some cases far
rare
and
although
their
the need. This, however, is one of undeveloped. Rhenium occurs only from
the hazards of a free enterprise associated with molybdenum in a oxides resemble those of the alka¬
line earths, the nomenclature is
system, and also a source of its few of the copper properties. Any
weak. The group consists of more
strength. A free enterprise svstem substantial long-term use would
than a dozen elements (there are
ensures
and guarantees -efficient be limited

another

company

veloped

a

by the

competition by the greatest num¬
ber and puts a premium on brains
and ability.
Up to now I have discussed by
way

of illustration only,one metal;
be one in which my

it happens to

<•

taken for
who

incentives for
of the metal.

Even

miss

money

political sense a two party system in this
country, but the fact is and has been for a long time past
that

resources
high tantalum, low columbium
could not support a greatly
increased demand: the large new

it failed to do so. Hence, if tanta¬

deposit only to find that after its

ignominious defeats at the polls.

We have in

ment

.not really come

to

President.

sary

should provide the neces¬

by-product of colum¬

a

of

v***,,

market

raised.

Republican managers could

as

ores

from page 9

And Industrial

in

quantities

greater

bium. The known world

Our Reactive Metal Resources

.

as

dustrial and utilities fields

Continued

in

Tantalum, with few exceptions,

'

to

compelled to think, will be

we are

,

publicanism," but when it comes to seriously undertaking
to place the party on record as favoring sound and tested
national policies, whether by one or the other faction in
the party, there is little to bring much cheer to the heart
of the voter with the good of his country at heart and'
with a real understanding of what needs to be done.

that

to exist

deposits

be visualized for current

incentive

Eisenhower's insistence upon "Modern Re¬

President

far

in

can

comes

low

things which must be done if much saving is to be
effected. There is much resentment among certain groups
at

economic

use.
:

the

National Committee, at that

...

than

political preferment, there is next to no indication that ■
dissident elements have the courage or the understanding
to formulate a really sound program and to make it an
issue in forthcoming campaigns. To be sure, there is de¬
mand for reduced expenditures, but no willingness to do

special dinner arranged in com¬
memoration of the foundation of the Republican party
It

River

Blind

Canada

for

Early Hesitation

an

known

is

Thorium
the

jockeying

Republican party, and a good deal of

tion in the

essentially

question.

back to
■

Thursday, July 25, 1957

...

(400)

company

Other

has

problems

in

duction and

enough

been

or

each
use.

interested.

present

metals

phase

similar

of

pro¬

be

their

hence

experienced enough to
would

sufficient
individual

should be unwise,

time

to

review

problems.

I

however, to dis¬

sale of copper,

molybdenum, in these

particular mines. Its current suoply and known uses are small, but
if it were required on a large
scale
for

we

new

of

Most

rently

ample

would have to

our

titanium

imnorted,
sources

and

but

is

there

cur¬

are

to meet foreseeable
for

known

scramble

sources.

Even were I wise

treat them separately, there
not

and

rnetal

developed

already

within the

confines of the United States and
Canada.

Whether

the

ore

is1

sup¬

plied from Australia, Indira, Flor¬
ida, New York or

Canada at the

actually
which

two
groups
involved
historically
have
been

the

called

"yttria"

and

"ceria"

groups). They are for the most
part
past
the
middle of
the
Periodic Table and carry atomic
numbers

This

ranging from 57 to 71.*
group

another

of

elements

has

there

are

distinction:

unpronounceable jaw-break¬
ing names in this category of
substances than exist in all the
remaining list of elements. The

more

names

and their origin of nomen¬

clature are a

nightmare. Thus we

Volume

5658

Number

186

have yttrium

.

.

The Commercial and Financial Chronicle

.

their intrinsic

(Swedish), Lutitium

properties and their

(named from the old Latin desig¬

possible industrial application.

nation

Therefore, the existence of the de¬
posit at Mountain Pass may have

for

samarium

the

lanthanum

(named

of
Paris),
Russian),

City

(named for

a

(Greek),
thulium,
the ancient designa¬

for

industrial

fornia's

in

implications

important

Cali¬

history,

even

earth metal produc¬
barely makes a notice¬

tion of Scandinavia). Some of the

though

tongue-twisters in this group are:
preseodymium,
yttebiurn,
neo,
cb mium dysprosium and prome-

tion today

able dent in our minerals economy.

thium.

I have contributed can be summed

The

delirium
is

that

does

list

and

include

not

pandemonium,

through

error

no

but

the

on

part of chemists.

Taken

in

up

Found

metals

each

in

and

half-dozen

a

of these

Monazite

ments.

portant

with

as many

as

strange ele¬

sands,

the

im¬

Monazite

sands

are

widely scattered geographically,
productive deposits are lo¬
cated
in India, Brazil, Union of

and

South

Africa, and in the United
Montana, California, the

States,

beach sands. There

azite

in

known

other

are

which

about

sources

Florida

in

and

Carolinss

two

mon¬

less

is

Ceylon, In¬
donesia, Malaya and Korea; some
of them may constitute important
future

Australia,

earth metal

rare

Experimentation and

sources.

of the

uses

been

have

metals

earth

rare

in¬

hibited in the past because of their

chemistry and the ex¬
difficulty encountered in
making separations of one element
complex

treme

from another

constituent.

presents

few

extracting

or

metals

The

from

a

to

In Our Free

subversion. Fortunately that is not
the

in America.

case

with

Let me say,

the

that

pride,

some

free

of

our

movement

union

trade

has virtually eliminated
possibility. We have exposed
driven out the
Communist

country
that
■

from

J

At this time,

movement.

our

'

~

"

'

"

"

and

judgment for all time,
the American labor movement, as
in my

and

AFL-CIO, is

the

by

represented

influence
and
immune
from
Communist
subversidn.
No other free nation
Communist

from

free

enjoys such built-in

the world

in

of

uses

rare

er

earth metals

in reactor
have still to

applications.
We
their potential.

learn

This is matter of direct interest
and

advantage

American
well, as I

the

to

business community, as
shall explain

first

But

shortly.

let

me

internal

real

few years ago

Scandinavia
the

as

India,

localities

and

Travancore

demand.

future

foreseeable

these conditions have

were

for

adequate

be

to

of

sands

Bahia, Brazil and

or

assumed

an

source

elements.

such

as

for these esoteric
Historically they came

important
from

the United

considered

not

was

all

Now

changed. Al¬

though rare earth metal require¬
ments have not currently ap¬

those of base or alloy
metals, their use and application
are
increasing, and here again,
under the stimulus of need,
we
proached

appear

to be meeting our require¬
and

finding new and im¬
portant sources of rare earth min¬
ments

erals here

in the United

At Mountain Pass in
in

1949

very

there

was

discovered

a

of

the

rare

earths.

This

point out that
threat

to

These two problems are

our

resource

that

was

system, is
supply.

that through
by a

stimulated

no

longer in short

technology of the rare earth
metals is still in its infancjr but
of

elements excite the

every

They offer

research
a

investigation

the

at

French

gone

of

concept

far

in realizing the
local administration

self-rule
The

in

French

British

West

like¬

are

wise.

They deserve great credit

ing denounced as they fre¬
quently are as 'colonialists.'"
—Adlai E. Stevenson.

are still business people in
country, who feel that the
whole country would be better off

this

if the trade union movement

be

to

destroyed—and

ployer

Britain,

were

some

been

em-

organizations

employer

tion from

ing

expect

can

Labor's

much the better.

The

so

the

responsibility.

union movement

big question,

the present

Responsibility

or one

of them, is whether, in

world situation settled conditions

be restored and maintained in the presence

side. Labor must bear its
of

the trade

interest

metallurgist.

fascinating field for
both in respect to




If

creditable job in most of her

a

foreign domains,

coopera¬

Naturally, the blame is not all
on one

en¬

union when he is aim¬

a

Assesses

Adlai E. Stevenson

long

an

France, too, is doing

knife at its back.

a

has

as

administrator of backward regions.

lightened

are
still
working overtime to bring about
that very result. I don't see how

an

anyhow,

recognized

the semi-colonialism

As

of

can

even

existing.

now

grows

bigger and bigger, it must realize
that it has

obligations to fulfill—

obligations to clean out racketeer¬
ing as well as Communism, obli¬
gations to make it possible for a
fair employer to operate his busi¬
ness without fear of being caught
in the middle of a jurisdictional

(Mimofb

dispute, obligations to temper col¬
lective bargaining demands to the
realistic ability of business to pay,
Human nature

being what it is,
to happen
overnight.
But I am convinced
that employers and trade union
don't

I

expect all this

leaders will be willing to should¬

greater share of responsibil¬
they realize that our

a

er

ity

once

whole future—the future

people—is

management want more. On
the other hand, labor wants more.
Both want more constantly.
and

desires

these

Now

are

and

healthy

As

restraint.

this dynamic

econ¬

of ours keeps going, it keeps
growing and greater rewards are

omy

available for those who contribute

of production. But
cannot make progress at the

to the processes

labor

of the rest of the econ¬
omy and
business cannot make
progress at the expense
of the
rest of the economy. Neither can
take out more than they put in.
expense

put

me

Labor can't put

business

who

the

must ask themselves
question — what is the long
range percentage in carrying on
an
endless fight against a
free

envelope.

the

The employer can't
customer beyond

his customer's means and still ex¬

pect to have customers.
Both have
a
responsibility
each

the

nation

as

a

whole.

only

that

falls

of

in

inflation
the

of

conflicts

can we

which

and

eliminate

plagued

us

the past.

to

the

it

and

protects

$ 5,602,709

4,617,731

3,262,789

Percent of sates

8.4%

!L3%

15%

Per share of stock

$2.55

$2.12

$1.51

Before income taxes

our

was

In

AFL-CIO, insofar

simple

as

I

SHAREHOLDERS

which
up the

Shares

will live up

in

its

Cash dividends

It

pv«rv

per

with management, with com¬
munity groups and with tne puolic authorities. Above all, it will

way,

its

do

part

to

defend

safe¬

and

guard our free, American way of
life

against

and all aggressors.

any

.

Herbert Evans Adds

greater

labor - management
co¬
It can be achieved, in

operation.
my

there

considered
judgment,
once
is complete acceptance on

W

$32,551,769

$20,047,391

$17,301,650

$2,251,012

$1,573,982

$979,783

$1.00

$.75

$J5Q

100%

5%

25%

$71,921,997

$55,612,848

$58,187,453

68,627,419

53,151,719

47M260

3,294,578

2,461,129

2,299,193

$16,764,698

$5J52J74

$ 3,129,193

12,528,542

9J02337

8J517333

1,472,731

1,021,639

932,414

23,444,026

20,262,620

11514,390

.$ 4,918,420

$ 3,951,776

$3,410^91

paid

Stock distributions

,

SALES

Dollar volume

products and services

Crude oil and gas

(Special to The Financial Chronicle)

ST. PETERSBURG,
S.

Smith

with
31st

J.

has

Fia.—Frank

Herbert

&

Evans

He

Co.,

90

previ¬

C.

Stringer, Jr.
Fulton

is

Reid

Union Commerce
of

the

Eugene
affiliated
Co.,
Inc.,

Building, mem¬

Midwest

produced—barrels.

M M M

—

now

&

processed—barrels

Payrolls

(Special to The Financial Chronicle)

Ohio

properties.

Crude oil

Crude oil reserves—barrels

With Fulton Reid Co.

with

GROWTH

Additions to

Crude oil

was

ously with Bache & Co.

CLEVELAND,

ANNUAL

affiliated

become

Street, South.

Stock

Ex¬

•Adjusted ter 2 for 1 stick split and stock

If

you

dividends.

would like to receive

a copy

of

our

Annual

Report and future Quarterly Reports, please write

change.

With G. L. Sommev & Co.
CLEVELAND, Ohio—Marvin T.
Filiar

of trade unions.

L. Sommer &

is

now

connected

with

Co., Tudor Arms.

COSDEN PETROLEUM CORPORATION
bl

(Special to The Financial Chronicle)

the part of employers of

the idea
Strange to relate,

2,16<tf76*

3,769

share of stock...,

Refined

J.

2,176,268*

6,785

Year-end equity

purpose,

Constitution.

in

coooerate

2,371,787*

outstanding—year average

Number of shareholders

workers.

it
to the high principles
of that

pursuance

will

build

American

of

embodied

for

purpose

founded—to

standards

bers

Obviously, the best antidote to
labor
management
conflict
is

$ 7,927,731

6,046,190

INCOME

After income taxes

is

direct its policies, it will stick

can

avoid the pit¬

have

.$10,761,190

NET

instrumentality

labor

As for the

Only

labor-management

which

movement

defends

through the exercise of such re¬
sponsibility

1955

1957

ended April 30

right to stay in business?

other, to the community and

the

to

to

union

trade

velope and then still have a filled
pay

1956

for fiscal year

this

en¬

pay

one

This is the time when American

it another way.
the fellow out of

fills

in

up

employers

natural

possible of at¬
tainment, if pursued with com¬
mon
sense
and intelligent self-

and

right

tied

of labor

-

The

these

system,

production is geared to a basic in¬
centive. On the one hand, capital

some

search

enterprise

free

the

closely

In the very nature

inter-related.

list of materials in the

free

most

a

moving rapidly, more
rapidly than some people think

there

Cooperative Division of Output

over-price

Cate¬

exercising
in

bundle.

deposit is extensive and
coupled to other domestic sources
is capable of supplying all of the
foreseeable raw material require¬
ments for the ceria group of rare
earth metals to American industry
for years to come. Again we have
the example of a resource that un¬
til recently was on the nation's
scarce

no

how

have

atomic

of

power.

and labor.

Let

California,

have

of

goals

field

the

are

and business and all the American

States.

large deposit of bastnaesite, a

fluocarbonate

gory—a

home

tion, what used to be called boom
and bust; secondly, the purported
clashing interests of management

of

Discovery in the U. S. A.

States

"We

the most
beneficial effects upon the indus¬
trial growth of the United States,

share

insurance.

to be indicated

a

location

but

Enterprise System

by

tions within the atomic pile. O

Until

their

that

nothing

Europe

responsibilities

for their efforts instead of be¬

the

purity permits us to make a safe
glass through which the scientist
and technologist can view reac¬

appear

have

of Western

colonial

advanced, responsible and enlightened manner.

Preserving* Three Basic Elements

pure

used

extracted

extensive

will

we

African

wise

methods of fractional precipitation
followed

conclude

can

Hence,

sources.

their

from

or

16

page

thr o u gh tedious
way of life is the possible collapse
of
the
free
enterprise
system
electrolysis at high
under which we operate.
In fact,
temperatures to reduce the com¬
the leaders of Soviet Russia for
pounds to metal—a time consum¬
years have been playing a wait¬
ing and often an expensive pro¬
ing game in the fervent hope and
cedure. Today, however, new. ion
belief that such a collapse is in¬
exchange techniques are changing
evitable.
and improving our methods of ex¬
Their thinking is
based upon
traction and separation.
two apparent weaknesses in our
These elements have suddenly
become of importance in the re¬ economy—first, the constant dan¬
actor field.
Cerium oxide of high ger of inflation followed by defla¬
be

nearby

Reactive metals especially in

individually

Continued

earth metal with

rare

elements.

safe

colonial nations

available

are

and

familiar), is also
important source of this series

of

them

Africa.

which many are
an

of the

Each

of

source

radioactive

little

of

either in the United States

mineral'"

single

a

contain oxides of

may

very

ail

So, Will It Work?

aFor the most part Britain, France and the other

earth

rare

associated

found

are

other,

all, the

Even

supply, compared to the
steel, lead, copper and aluminum
required in the construction of the
plants and the distribution of the
energy
and
useful
by-products.
Almost

29

*

insoluble problems from the point
of view of

Combination

these

rule,

a

in

all

few short sentences.

a

taken

As

rare

(401)

G.

i

Petroleum

Building

Big Spring, Texas

The Commercial and

30

Financial Chronicle..

the 25-34 year group.

In the older

(402)

Continued

smaller than, the effect of changes

from first page

biritr Tates.

the

in

classes moderate increases are

age

indicated in the next decade.
effects

Comparisons of Current Growth

The

rate

of

the

birth

higher

Significant Population
Changes Over Next Decade

of interest to note
that the present rate of natural
increase (i.e., excess of birth rates
over death rates)
in this country,

will not be reflected in these age

later

ages.

although extremely large by com¬

above

65, relatively large percent-

and equipment

parison with that in the '30s and

age

early '40s, is not particularly high

tween

critical

which

of

acceptance

form 1 y

optimistic

we

featured

see

the uni¬
projections

the past

in

to

©.bout

demographers

that

say

are

well united today on the

as

jjrojections of
large
population
growth as they were 10 and 20
years ago on the projections of
declining rates of growth followed

toy

slow decline in actual num¬
bers.
We have certainly learned
that demographic trends can have
sJiarp changes in direction, and
that it is important, therefore, to
allow for the possibility of an¬
other change
in direction.
The
widespread dissemination of
knowledge regarding methods of
limiting population is a significant
a

factor

in

bear

to

mind

past

10

notable

for

those in

the field

have

been

have

years

many

of

We

been

changes, but
demography

11th

our

of

year

high birth rates, and demograph¬
ers
have
ceased
to
explain the
high levels as a temporary phe¬
nomenon
to be explained by the

projections

figures

forecasts, in order to

the fact that they re¬
mathematically from apply¬

They do

ing certain assumptions.
take

not

into

sharp

account

might

that

changes

result

from

developments like the outbreak of
war

prolonged period of sub¬

or a

stantial

unemployment.
not

shall

I

de¬

to

particular assumptions
have
used,
but will
indicate merely that the projec¬
tions
for
1965
range
from
186
to

193

12%

to

17%

(Table

million,

increases

respectively

over

By far the most

I).

important and most uncertain ele¬
in

ment

these

of

course

8

next

projections
birth

the

Chart

years.

is

the

in

rate

the

indicates

I

the

considerable

for depression losses.

took

place between 1945 and 1947,

sets

after which the

effects of the

of

and

because

birth

making

the

of

fact

that

$o

high

remained

rate

up

Repeatedly,
have become

projections

obsolete

the

war

that

increase

changes have been

relatively small. Most population
experts have been chastened by

that the actual population was ap¬

the abrupt

preciably above the highest of the
series of projections.
The rapid
growth
of
population
and
the
prospects for further substantial

and would hesitate to rule out the

change in the 'Forties

possibility
which

of

another

change

would

greatly affect the
we
have made.
The

projections

increases have received much at¬

concentration of attention

tention

rates

from

economists

and

so¬

ciologists, as well as from many
business analysts. There is little
«3oubt that confidence in the pros¬

pects

for

increased

most kinds of

been

an

markets

consumer

for

goods has

important element in the

substantial

expenditures of busi¬

should

on

birth

not

be

taken

ply that there is

no

possibility of

im¬

to

significant changes in death rates
and

in

the

gration.
the

death

amount

of

net

immi¬

It is clear, however, that

effect, of

components

variations

in

these

is likely to be much

birth and
available

since

possible

figures

not

are

for analysis of the components

of
population change in that period.
It
appears,
however,
that
the
present rates of natural increase
about

are

19th
of

high

as

since

rienced

century,

the

During

considerable part

a

rapid

our

expe¬

any

as

1900.

growth

due

was

to

the large flow of immigrants from

European countries. After allow¬
is made for this element, it

ance

in¬
higher
but not

likely that the natural

seems

than

still

was

the

somewhat

current

rate,

When

ulation

rates of pop¬

current

our

(including
net
compared with

growth

immigration)

are

those of other countries for which

comparable figures
that

find

we

growing
than

at

rapid rate
highly indus¬
of the world,

more

a

the

of

most

trialized

countries

but

at

lower

the

countries

a

referred

to

available,
currently

are
are

we

than

rate

that

of

most

commonlv

are

"underdeveloped."
Our annual growth rate of about
1 -/:)% in the last 6' years is much
as

Our

Western

and

also

rate

Europe.
that

exceeds

the

satellite

countries

ern

Europe,

except

Albania.

and

1955

On

in

Poland

for

the

for

East¬

basis

1.—AHHUAJ, tilMUER OF BIRTHS IN 7KH UNITED STATES:

1930 TO

1956

Million*

Millions

5

5

increase

of

about

the

the

for

same

required in addition to those

births, deaths, and net immigration. The Census Bureau has
recently prepared four new sets of

years
will
continue,
projections show quite wide
differences in .rates of change over
recent

decade.
increases

two-fifths

other

the

South

and

countries

in

and
in

the

1955

tion in

to

of

Asia

N»t»:

Plgurea

are

•4Jurt»d Tor ;a*J«?r»gistr«tlon.

force

tim Nrtlontl Offlos

of 911*1

StrtUtlc*,

fro.

1909-1962, • Vital St«tUtlej--Spsoi«l Raporti. Vol. 33. No.'
report, of th. NrtWt OTi'le* o? 71U1 SlatUtlo.

and Birth Ir.ti
19501.

8

la th» Sntira
lo/n

'

...

ing

will

of

is

2—KSnWffJD'Arro FatWSCTO CHANGES -IN-THE fOPHIJCION OF THE
1965 TO

1955 AND 1955 TO

3T

A3

OC'IPS-

'

charge from

age

one

All ages—high
low

growth for

tween

10

and

the

\
5 to 9

(AA)
(C)

20

14

low

(C)—j

.

17,151,000

:

■

20 to 24

years

45 to 49 years...

51) to 54 years

55 to 59 years.—
years

65 to 69 years
70 to 74 years
75

and

years

Labor
Beth

—

over

low

(IV)__

I

low

and

+11.5

6,047,00U
3.033.000
8.357,000
5,557,000

+29.0
+14.5
+17.5
+11.6

(lV)__j
of Census.

"Current Population Reports,"

Series P-25, Xos. I2S

Series P-2h, No.

14(»;

birth

place after 1945.
low

high

by

two

sented

for

the

years

years

Individuals by

Number (thousands)

Family personal income
taxei*1

ai.er

t»

Percent

\

$3,0C0 to $3,994

60.500

100.0

15.764
8,091

Under $3,000

companies con¬
goods sold largelv

.«

52,200

Total

of age.

14.278
7.381

30.2
15.5

be

S4.000

to

S4.999

8.300

8,168

15.9

well advised to give careful atten¬

95,000

to $7.499

12,737

tion to the prospective changes in
the different groups.
On the one

Si-39

$7,500 to $9,999

17,181
7,623
5,869

24.4
7.6
6.4

age

groups

will

-2CS66
In a'.llicrj

Age

-2

0

Por-i'stlon ohaaga

2-6

programs

On
Source:

V. 3.

Bcrwi of to.

Oosroa, C-.:rr«at




gyiatlga Haports. Series

and

?-25, tics. 93, 123, m*t 166.

the

1955-65

in

most

other
decline

communities.

hand,
in

there

;i«

numbers

a

for

homes, and

the

national
^

•

+

-

the

-

13.5

28.4
12.6
9.7

money

income

as

defined

hv

items such as wages in
on
farms, the
net

consumed

unlike

i

23.6
12.2

:

the Bureau of the Census plus
kind, the value of food and fuel produced
inpulcd .n* n"-ne^'->ecnn'ed
lmpu4ed interest. Moreover, ibe fara'ly personal income estimates,
Census Bureau estimates,
are
a^jus.ed lor consistency with the

^Includes
nonmoney

.100.0

$5,890

$4,930

Mean income

need for large school construction

la aVZicna

3,967
3,341

810,000 and over

hand, there are in prospect ex¬
tremely sharp increases in
the
younger school-age groups, these
changes creating, of course, the
Poyilaticn c'-ar-s

and 1965

(In 1955 dollars)

re¬

is obvious that

centrating on
to particular

Tl

Family Personal Income After Taxes, for the U. S.: 1955

of b^rs pre¬
"0" fo "4"

sets

Senes P-uii, No. «k*.

TABLE

groups

and "5" to "9"

(»i); and

Estirnaied Distribution of Families and Unrelated

and

assumptions for births is

flected

It

the

(
}

took

The considerable

between

variation

that

rates

+15.3
+ 12.4
+ 9.4

26,906,000
23,892,000
47,788,000 j 56,145.000
I 53,345,000

(IV)

Vi'rpio

10,543,000
8,547,000
4,496,000

) 53.554,000 ' 5,514,000

4

20,359.000

Households—high (I)

S.

+

*

'TTJ

explained by the sharp in¬
in

]

(IV) ———.—J

IT.

.

+17.0
+12.7
+11.5
—11X
+18.1
+ 1.1
+43.5
+33:7
+24#
— 3.4
—12.1
+ 1.6
+ 9#
+12.6
+ 21.5
+18.5
+ 15.6
+16.8
+18.3
+33.3

/*

68,899,000 f 79,442,000
I 77,446,000
48,040,000 j 52,536,000

)

_.

Male (II)

SOL'KCE:

I 16,265,000 —2,040,000
j 20,252,000
3,101,000
t 17,345,000 ; V 194,000
19,152,000 < 5,810,000
17,199,000
6,008,000
•' 13,461,000+ 2,686,000
11,355,000
—39.7,000
10,900,000 —1,5001)00
11,791,000 183,000
12,327,000
1,110,000
11,369,000
1,273,000
' 10,714,000
1,899,000
9,307,000
1,453,000
7,735.000
1,041,000
6,354,000
1,005,000
4,813,000
746,000
6,204,000
1,551,000

Force—\

sexes—high (II)

Female

,

11,191,000
10,775,000
11,752,000
12,400,000
11,608,000
11,217,000
10,096,000
8,815,000
7,854,000
6,694,000
5,349,000
4,067,000
4,653,000

years...

60 to 64

+.

' 13,342,000

years.

to

crease
1955-1965

.

15 to 19 years..

iof

vear<=

Percent.

Amvunt

{ 165,271,000 J19S,346,000 28,075,000
4186,291,000 • 21,020,000
18,305,000 j 20,413,000V 2,108,000

35 to 39 years.

course,

1965-1955,

___

—

years—high (AA) |
low (C)V_ i

to

10

be¬

groups

With 1955 for

j
yrs.—higa(AA) j

Under 5

to call

class

executives
responsibilit is worth.

Population—

another is to look at Chart 2. The

rapid

later years,

lib. 5

1955

Item

many

simply projecting the survivors
a group already born.

of

in

ities

the

for heavier

Fo^ulafion, labor For^e and Households, for the United States
(1'opulation
and households relate to July
1.
Labor force figures are
annual averages.
See appropriate sources for explanation of series listed.)
Number
Change, 1955 to 19G5

attention to the differences in rate
CNIT3D STATES

1965

train

to

High and Low Projections for 1965 and Comparisons

expected

way

if ""^les
old a

prime source of young

the

in

For example,

from 25 to 34 years

TABLE I

whether

the

Perhaps the easiest
Chart

participate

40 to 44 years.

according to

groups.

have

regarding

.assumptions

groups

ror ^ 10 l?5°

r

Force

projections

25 to 29 years.

projecting

are

not appear likely that the
distribution of work to be done
will be at all out of line with the
new labor force distribution. The
situation
may
be
unfavorable,.
however,
in
certain
age - sex
does

rates at which various population

number of births in future years,
or

Figure for 1930 •» 1939

9%

to

composition of the

labor force and its suitability for
certain kinds of pursuits, but it

the added complication of requir-

Africa.

and

change in the

for

greatly from State

vary

Labor

Change for Individual

another

we

Sourca:

7%

from

Labor

projections
which have been prepared show
widely varying rates of charge
for different
age
groups of
the
population. To be sure, the de¬
pendability
of
the
projections
varies greatly from one age group

Vol tod Stahaa,

those

and

past years, the population

prospects

It is important to bear in mind

1950

level,

to State.

that all the population

GAS

vari-

the

higher. Clearly, if we are to judge
by the record of interstate migra-

American

great

a

to

level,

1955

extreme,

Massachusetts

Age Groups

1965

the

projections for Oklahoma and
Arkansas show a population decline as high as 10% to 15%. As
examples of intermediate changes,
the projections for New York are
between 10% to 16% higher than

In

own.

Thus, growth rates of 2% or more
be noted for such countries
as
Brazil, Ceylon, Turkey, and
Egypt. The growth rates for three
of the British Dominions, Canada,
Australia, and New Zealand, are
also over 2%^ but the influence
of
immigration
is
considerably

Kates

I960

one-fourth

of

above

ous

the rates of growth are
considerably higher than ours in
countries

age of

states like California and Florida
show

general,

Central

a little and the percentfemales increases, the in¬
crease for the latter being particularly sharp for those 35 years
old and
over.
Our projections
suggest that in the next decade
the number of women added to
the labor force will be about as
great
as
the number of men
added, roughly 5 million each,
This will represent an important
creases

growing

Rapidly

making it
3o to get
.

these

the

have limited the sup-

jobs.
In
most
of the projections
which we have made for the ye^r
1965, the percentage of males 14
and over in the labor force de-

population projections for States to
1965. Reflecting assumptions that
the
extensive
population
shifts
in

years

war

ply of younger workers,
easier for women past

of

USSR

our

as

ployment has furnished attractive opportunities to many who,
under other conditions, would r?~
main at home. Low birth rates in
the '30s and high rates in the post-

com-

for

30 to 34

1935

the

available data, it is likely that the
rate

On the other hand, for many years
the percentage of women in tne
labor force has been increasing,
Recently there have been particularly sharp increases in the percentages of women 35 years ana
older
who are members of tne
labor force, since high level em-

population

States,

1957

to decline in the case of teenagers
and of men near retirement ages,

tions regarding internal migration
are

the United States.

,

for

Thursday, July 25,

labor force. Most of us are familiar with the long-run tendencies
for labor force participation rates

plications increase, since assump-

greater in those countries than in

1930

to

turn

we

may
Chart

be-

1965.

and

projections

above the rates for most countries
in Northern

groups

age

Areas

At

sharply higher.

the

In

increases will take place

When

comparisons

19th century experience

the
not

are

we

million

historical

Precise
with

groups, until the cohort born in
the 1945-54 period reaches these

compared with rates of in¬
in the 19th century.

crease

undertake

the

which

1955

in

now

upon com¬
different as¬

to future birth rates,

as

rather than

of

are

projections of

emphasize

We

most

useful
of the

based

these

call

sult

dra¬
matic and most widely discussed.
the

among

a

crease

rates, and net immigration.

death

scribe

studies population projections.
The

sumptions

is

Bureau

several

of

1863

for

it

prepare

population

binations

one

as

to

Census

the

of

function

the

that

believe

We

it is safe

I believe

reviews.

Projections

Our

ly in technical journals and busi¬
ness

few years.

be

may

when

general¬

so

for new plant

ness

It

.

4

:neome

accounts.

SOI'RCF.j. Unpublished

Office

of

Business

«»imat«s orepaifd by If.vman KaUz,
Dcpai.tocni of commerce.

Economics,

formerly of

.Volume 186

Number

5658

.

.

.

The Commercial and Financial Chronicle

(403)
noting

that

class

will

1965.

the

number

'decrease;

in

Until

1955

this

dollars) is expected nearly to
' \ tv

double during the decade.

about

r

v-T*

"■

.

••

,

'.-9

*«

Households and Families ; ;

^?,

Summary *

„

V In

of

desirable

particular

interest

and to others

to

builders

producing goods that

sold to families rather than to

individuals.

Such

projections de¬

ahead.

to

and

at¬

tention
must
also
be
given to
changes in marriage rates and in

ment.

the average age at first
marriage.
From 1955 to 1965 the
range of
increase in number of households

The
the

according
from

to

12%

same

the

as

projections

our

to

should

contribute

greatly

18%

is

about

or

the

pattern

of

persons

have

that

seen

become

plex

we

tions

of

proceed

survivors

more

from

projec¬
people

among

of the numbers in the hi*

finally

When

to

force,
rates.

or

marriage

undertake to make pro¬
of income, we need to

we

jections
make

series

a

of

assumptions

re¬

garding the level of economic ac¬
tivity,
the
demand
for
goods,
changes in the price level, changes

productivity, and changes
length of the workweek,

mention

points.

made

about

ernment

programs, etc.
have engaged in

people

gov¬

Various

making
and, for¬
tunately, the differences among
their
assumptions
are
small
enough so that the conclusions
reached

of

for

income

the

present purposes

largely independent of the set
assumptions used.
Obviously,

no

great

is justified

assurance

such

areas

claimed

as

by

these, and
those

the projections.
I
should like

to

has

economic

been

are

with

made.

Gross

based

that

consistent

In

that

this

For

many

as¬

have

model

above

personal income
40% above 1955.

1965

a

upon

others

37%

at

was

share.

stock

This

Carter
to

sor

and

a

started

which

laboratory
Brunswick, N. J.
the

are

and

net

sales

has

dividends every year since

A

correspondence

the

Investment

course,

it is

of

The

interesting to look at projec¬
tions of the distribution of income
in the year 1965. For this
purpose

able

America
School

in

mates

prepared

Kaitz,

formerly

Business
of

Economics,

Commerce

figures
to

(Table

the future

that

Department
II). These

prepared

were

according
simple formula.
projected into

relatively

a

The 1955 data

tion

by Mr. Hyman
of the Office of

on

the

were

the general assump¬
annual rate of in¬

in average real income that

crease

prevailed
would

in

the

postwar

period

continue, although slightly
On
this
basis,
the

dampened.

income

mean

lirnits

for

each

at

creased

and

the

interval

income
were

in¬

a

compounded annual
rate of 1.7%.
Over the decade,
this resulted in a 19% increase in

family

average
after

taxes

in

the

about

$5,000 to
1955 dollars). It
a
sharp decrease

proportion
individuals
with

$3,000

and

a

income

personal

from

about $6,000 (in
also resulted in

of families

income

marked

and

under

increase in

a

training

mentals

The

program

of

of

corporations;

securities

icy.

The

and

New

Bankers

Association

Home

may

ber

the

of

families

number

level

is

slightly.
of

expected
In

families

incomes

over

of

the

contrast
and

to

decrease

the

number

individuals

$10,000

or

more




with

(in

as

as

Rowley

but what the

for

the

of

joined

It is

the

held

will

Trust Com¬

Cincinnati.

Ryan,

Co.,

with the Provi¬
In

he

1939

Sutherland

&

Co.,
asso¬

ciated with Prescott & Co., Cleve¬

land, later joining Ball, Burge &
Mr.
been

has
recently
advertising and
work; prior thereto

Freiberger
in

engaged

promotional
was

with the

Cleveland Trust
,

by the

accounts.

Forms Fleet Co.
SAN

DIEGO, Calif. —Reginald

S. Fleet is engaging in a securities
business

from

offices

in

some

obligations

certificates

and

Broadway,

the firm name

under

of Fleet & Co.

the

'

Forms SuJan Company

pay

DALLAS,

Texas

business

from

Burt Building.

certificate

order

in

to

530

at

accept the

believed

maturing

four-month

SuJan.

The

—

a

securi¬

offices

in

the

Jesse E. Flick is

obligation

maintain

their

liquid
to be considerable

Morrison Opens Branch
HICKORY,

N.

C.—Morrison

Company has opened
511

Fourth

Street,

a

S.

W., under

the direction of Roby W. Long.

date

can

no

doubt

Aug. 1, 1959.

on

easing or
little if any

is

at the

optional

U. S. GOVERNMENT

easier by the late summer of 1959, there will be very
redemptions of the 4% note at the optional due date.

reported that

as

lias been put to work in the

from savings banks,

well

Government

that of certain pension funds,

as

and

FEDERAL ACENCY

Going for 4% Rate

money

savings bond redemptions,

the

sizable cash-ins

On the other hand, should interest rates

Investors
It

be

Specialists in

have to pay more for bor¬

investors

Securities

.

refunding issues, with indications that

the bulk of it has gone into the 4%

note. There has also been,some

of

trading out of corporate bonds into the 4% issue.

With McMahon & Hoban

Coburn & Middlebrook

be made with

(Special to The Financial Chronicle)

Opens New Branch

CHICAGO,

Conn.—Coburn &
Incorporated, have
opened
a
branch
office
at
30
Park Row, under the direction of
STAMFORD,

Middlebrook,

Greene.

is

now

—

Joseph

the

staff

Hoban,

was

rities Company

Atjbrey G. Lanston

of Chicago.

8c Co.

With J. J. B. Hilliard
J.
M.
of

M.

SIOUX
Dain

&

Dain

a

Locust, members of the New York

Building

and

Donald

branch

Branch

office

under

M.

in

the

have
the

opened
Amherst

direction

Anderson.

INCORPORATED

(Special to The Financial Chronicle)

FALLS, S. Dak.—J. M.

Company

Dempsey-Tegeler & Co., 10th and

Midwest Stock Exchanges.

Frank

J.

105 South La Salle Street.
formerly with First Secu¬

Inc.,
He

111.—John

with McMahon &

of

LOUISVILLE,
Partlow

staff
419

bers

of

has

J.

West

been
B.

New

added

Hilliard

Jefferson

of the

change.

J.

Ky.—George
to

&

Street,

20 BROAD STREET

L.

-

NEW YORK

the

Son,

mem¬

York Stock Ex¬

☆

CHICAGO

☆

&

branch at

unusual feature in that the

an

a

principal.

out in this very large refunding operation.

Dempsey-Tegeler

has

are

investment

latter holders

holdings

both

non-Government

be

from

Street,

Mo.

career

&

Company,

turn-ins, into the two shortest maturities of the

rowings there will
pay

-

LOUIS,

of

pany

of
be¬

part¬

a

Williams

dent Savings Bank &

turn it in for cash at the end of two
If interest rates should continue to rise and the Treasury

well

(Special to The Financial Chronicle)

ST.

Baxter,

began his

he

Government

four-year note contains

Herbert E.

Joins

and

Federal

in

four-month

years.

Ex¬

Chicago 37, 111.
Check to cover tuition, $60, must
accompany the enrollment.

decade,

in the lowest income

the

holders of this

pol¬

Study
Department,
University of Chicago, 1375 East
Sixtieth

he

as

Williams, formerly

in

ner

time

The Two-Ycar Optional Feature

Thirteenth

time, and

desire.

so

4% obligation.

The

marketing

America,
Street,
N.
W.,
Washington 4, D. C.
Registrations are
accepted
at
any

the

Treasury will have to

banking.

obtained

System

doubt

turned

country

regarding
be

may

one-year

position. If this should be true, and there seems
opinion to this effect, it should cut down the amount of cash the

Educational Director, Investment

the

that

be

the

to qualify indi¬
registered representa¬

Information
course

Mr.

Stef-

G.

registered representative.

a

ties

to

and

act

charge

Company is conducting

tives.

425

is little

necessary
as

taking either the

Of the $9.3 billion of the maturing issues in the hands of the
public, about $6 billion is held by corporations, and other non-bank
investors, with the remaining $3.3 billion owned by commercial
banks. It is expected that corporations will be attracted mainly

will accept the course in
partial satisfaction of the require¬
ments

choice of

a

Small Cash Pay-Out Seen

change

viduals

such

until

comes

joined

balance of the maturing issues

lefunding issues.

Associa¬

Stock

sales

in

division of

in in¬

investment

York

financing by the Treasury

Warren

Vice-President

customary for the Central Banks to take a one-year
certificate, but due to the fact that their holdings in such an issue
(in this case) would be so large, it is felt that there will be a

financing of business enterprises;
security analysis; problems in fi¬
nancing

new-money

year.

It has been

study of the

a

some

the four-year 4% note with an optional payment

or

The

in the funda¬

investment
includes

course

the

the

sizable attrition in the refunding,
should not come up to
expectations,

revenues

Reserve

one-year

cooperation

of

of

with

coordinate

fen,

way,

will

current

quarters
will

paid

of Business

parts

for the balance

exchange offer and will not ask for cash.

Home-Study Department of
University of Chicago. The
course is designed to make avail¬
all

this

a

1959, if they should

public.

There

1883.

the

proportion at the highest in¬
come level.
Despite an expected
16% increase in the total num¬

Aug. 1,

Federal

The

in

in

Williams

Mr.

Kraus.

the

the

I should like to invite
your atten¬
tion to
some
unpublished esti¬

course

Bankers

Government financing

and,

refunding, while involving in total about $24
billion of maturities, is not quite as large an operation as it seems
at first since only about $9.3 billion of the total is in the hands of

Education

with

Government

The

the

banking is being offered
Committee of

the

operation

one

Only $9.3 Billion Held by Public

Corresponding Course
In Invesiment Banking
by

into

par at the option of the holder
Aug. 1, 1959, on three months' advance notice. The owners of

on

Net earnings for

Carter

billion

of

stock¬

$4,473,131, equivalent to $1.74 per share
on
the 2,565,000 shares outstand¬
ing, compared with 80 cents per

vestment

$8.1

the October maturities had

New

1957,
$41,835,609, compared with
$22,748,873 for the corresponding

1956.

of

decks

Building.

as
municipal bond adviser. Mr.
Freiberger will be assistant to
Fred Leustig, Vice-President, and

obligation would be redeemable at

were

in

a

Lloyd S. Freiberger

Toledo, and in 1948 became

on

fiscal year ended March 31,

share

a

Warren I. Williams

The Treasury offered holders of the August maturities an
option
exchange their holdings for a four-month 3%% certificate, a
one-year 4%
certificate and a four-year 4% note.
The latter

re¬

for

Hanna

appeal to corporations and
certificate will most likely be
as some of the 3%% obliga¬

to

holders, and no financing by the
company is involved.
Consolidated

Inc.,

well

as

somewhat of a surprise, the
Treasury decided to
August maturities of $15.8 billion with the October

there might have to be
before the end of the

portion

a

holdings of certain

Banks,

was

4% certificate

The shares offered
of

at

are

Co.,

have

However, if there should be

tranquilizer and
muscle relaxant; Arrid, a deodor¬
ant;
Rise,
an
aerated
shaving
cream; Carter's Little Liver Pills;
and Nair, a depilatory.
- -v
search

will

one-year

1957, except for the refunding of the 3%% certificates which
due on Dec. 1.
(The $24 billion operation was probably re¬
sponsible for the 4% rate.)

a

Carter's principal plant and

certificate

come

1880,

Miltown

are

the

year

marketing of ethical, proprietary
and toiletry products, the most im¬
of

that

combine the

succes¬

in

&

certain pension funds and Government
agency accounts.

as

clear the

Products, Inc.,

Murch

four-year 4% note, optional redemption at the end of
by the owners, evidently will find favor among savers

maturities

is engaged in the manufacture and

tion

of

purposes,

short

The

well

move

per-

is the first public of¬

business

a

with

By making a three-way
maturing issues, and a two-way
October maturities, it is believed that

ing August and October obligations a choice of securities, with
4% rate being used for the first time in more than 24
years.
In

Products, Inc.

(par $1) at $22

refunding operation by

a

First 4% Rate in Past 25 Years

fering of Carter stock.

the
pro¬

1955

projected at

was

000 shares of Carter
common

October

CLEVELAND, Qhio — Warren
Williams and Lloyd S. Freiberger have
become
associated

D.

The Treasury in a move to keep the attrition in its
refunding
operation as low as possible decided to offer holders of the matur¬

underwriting

1956 fiscal year.

reasonably

National Product

jected

tion.

as

the 1957 fiscal year were

the

this,

taken by the Central

Committee,

developed

model

sumptions

an

Join Murch & Co., Inc.

enough securities made available to meet the needs of
owners
of the coming due
obligations and, because
it is indicated that cash-ins were kept at a minimum.

The

a

is

prepare

mention

of the Joint Economic
who

made

August and

deposit banks, while the

Securi¬

in

none

who

projections
of
national
income
made by Dr. Grover
Ensley, who
until recently was Staff Director
and

of

which yesterday (July 24)
secondary offering of 500,-

group

household

formation, tax policy, other

projections

ties & Co. headed

(meprobamate),

If the problem is extended

be

Dillon, Union

portant

of the most obvious

some

Eastman

Governments

on

the

of

Common Stock Ottered

to

projecting income size distri¬
butions,
additional
assumptions

of

Williams, Freiberger !

a

:

was

most

Garter Products, Inc.

in

to

must

there

two years

com¬

already born to projections of
births, and then to the projection
and

i

and

area

portunities that lie before it.

the

over

projections

progressively

as

to

area

attention, if business enterprise is
to take full
advantage of the op¬

Income

are

.

offer to the August owners of the

one
population component
another will require particular

to

period.

We

from

combined

Treasury will be

offer to the holders of

projected increase in

number

same

in

yh'

successful one, according to unofficial re¬
ports, with the attrition well within the limits of what is
usually
termed to be a favorable undertaking.

from

the

>,

By JOHN X. CHIPPENDALE, JK.

it

nation's economic develop¬
The marked differences in

our

-Reporter

many

find

components for the years
The prospective large in¬

creases

growth,

as

will

to

study carefully the
projections of population

its

total

well

as

statisticians

various
and

Our

'vv> ■:

confident that

am

analysts

business

pend upon assumptions regarding

population

I

summary

market

the

•>V *'

'

•

1

Projections of the future num¬
bers of households or families are

are

'!

i'

.

i

31

☆

BOSTON

and Financial Chronicle...

The Commercial

32

•

r-

.

;■

t

f

v

'

Continued from page

; _' *

..

,

.

t

i

' ,r

,

it

3

is

What I am saying

unlikely.

Continued from page

5

'

'

;

•

.

;

:

is that this consummation devout¬

ly to be wished is most certainly

In Pens'on Fond Investments

then surely no

Obligations,

infla¬

indefinite

about

sumption

Federal Government of the United
States has insufficient tax revenue
and credit standing to cover its

tion should turn out to

mon
row

of these assump¬
shows that we too easily for¬

acceptance

purchase tions
obligation of the United States, get that

an

when we

Thus,

either.

so

the inflation of recent
has been associated with two

hope for the future as some

much more
institutional

be more certain

can

that

the

follow-the-

which

leaderism

has

led

to

get.

However,

be

least

at

A

steel

.

worth par on Feb. 15,
it is very probable
that the Atchison 4s of 1995 and
the New York State T h r u w a y
Guaranteed 2.40s of 1995 will be

financing of rising costs

part of the economy result in
corresponding deflationary pres¬
sures in other areas? Furthermore,

short, the further we down¬

In

uncertain

as

fact,

in

first

and

the

labor and to the

to successful

to the supply of
upward pressure
level in just a few

is

opinion,

my

essential

most

investing in

anv

the

of

we

can

be

capital equipment in the face of
a heavy tax load,
inexorably ris¬
ing labor costs, and a rapid rate of
obsolescence?
Can they finance

-

Steel Output Up to

expenditure, even if willing to

continue
high proportion of

make it? Will consumers

to spend such a
their

much

income—so

higher

a

proportion than that suggested by
the prewar relationship between
income
and
spending? With so
much consumer expenditure denot

.edged upward for the second straight
year's low point in the first week of July,',
reported July 22. With operations up a half .
point to 81% of capacity, mills turned out 2,073,000 net tons.
Tne weekly metalworking publication said July is going to
be a better month saleswise than some people had expected.
The
Steel ingot production

"Steel"

improvement comes not from any one

There is

the

one

people

in

now

of

follows

fact

from

I have just discussed. Most

believe that inflation

will continue
ture

additional assump¬

an

which

tion

the

as

a

permanent fea¬

economic

scenery.

Again, I must emphasize, this is an
assumption, not a promise. Most
people

Will

assume

stock

mon

rise

as

flationary
also

a

further that

prices
a

and

result

pressures

guess

and not

of
—

an

com¬

dividends
these

in¬

but this

is

automatic

result of inflation, even if the as¬




industry but from a wide

of consumers.
Sharing in the upturn are widely used products like hot-rolled
and cold-rolled carbon steel sheets, hot-rolled and cold-finished

group

the

;■"%%,!%'v'%V
not as strong as it-was early this
year,
but it still exceeds the supply and is expected to do so
through ti.e fourth quarter. Strip mill plates are not as easy to
get as they were a few weeks ago, due to expectations of increased

carbon bars.

step

field

-

Demand for heavy plates is

,

demand

auto makers

by

equipment, .c

for sheets—also produced on t.ie same

/V;

;

and the need for

been easing,

steel demand has

Structural

structurals and reinforcing bars is

being shrunk temporarily by a

cement industry strike.

'-v;''v.

Orders

August

for

...

are

shaping

up

..'.r

7.7

V

•

for even a better

.:

month

.

Demand for steel for the 1958 models
better than August.
! The publication noted that optional equipment on automobiles5
is gaining in popularity.
Automatic transmissions, power brakes „
and power steering show a 6% gain this year.
Air conditioning ,
installations are going into 22% of the luxury cars, compared with
than

"Steel" said.

July,

should make September even

16%

a

ago.

year

'

'

.

At

located

are

32nd Street,

at

49

Steel prices

West

New York City.

bond

this

will provide an

Forms R. J. Baker Co.
MENLO

Calif.—Roland

PARK,

of
more
than $450 for J. Baker is engaging in a secu¬
$1,000 invested. A common rities business from offices at 1110
stock yielding
3% today would University Drive under the firm
have to
raise its dividend at a name of R. J. Baker 6c Co.
Mr.

compounded annual rate of over
7%—that is to say, at least double
its dividend over the ten year pe¬
riod—in order to provide the same

you that the
Dow-Jones In¬
halved between 1929

remind

would

I

dividend

on

the

Baker

was

on

A

previously with Irving

Lundborg & Co.

'

.

almost

today,

even

thirty

James Ortasic

the

double

DALLAS, Tex.—James J. Orta¬
sic is engaging in a securities busi¬
from

ness

offices

1165

at

level.

1929

Park-

crest.

common

stocks

failed

to

double

in every ten year
1871

extreme
I

1929.

and

period between
Indeed, only the

inflation

resulted

in

than doubling

the

of

Alan Russell Opens

longer

A

World

dividend

Alan Russell has opened offices
at 309 West 57th Street, New York

City to conduct
ness.

all other

Donald
17th

at

Scott

the

passed

age

long illness.

Prior to

ment he had been

to

war.

United

not

rities

denying the possibility
rapid rise in divi¬
payments in the years to
I am not even saying that

am
a

continued

dend
come.

States

July

turned

fourth quarter, of last year.
The American Iron and Steel Institute announced that the ;
operating rate of steel companies, having 96.1% of the steelmak-,
ing capacity for the entire industry will be an average of 81.2% of capacity for the week beginning July 22, 1957, equivalent to *
2,079,000 tons of ingot and steel for castings, as compared with.
79.3% of capacity, and 2,030,000 tons (revised) r. week ago.
The industry's ingot production rate for the weeks in 1957 is
based 011 annual capacity of 133,495,150 tons as of Jan. 1, 1957.^
For the like week a month ago the rate wTas 84% and pro-;
duction 2,159*000 tons.
A year ago the actual weekly production
up

for the first time since the

placed at 419,000 tons.

higher

away

;•

manufacturing employment in June

operating

than

based

rate

on

an

is

not

comparable

because

capacity is

1956. The percentage figures for
annual capacity of 133,495,150 tons as of

capacity

in

1957
Jan.-

1, 1957.

of 71 following a

twenty year periods ending prior
I

'

"Steel" noted that

The

Donald Scott

the Air Force shift in

being felt: North American

pected.

are

dend failed to double in

of

emphasis from aircraft'
Aviation Inc. will lay
because further development of its Navaho missile
was canceled.
Lockheed is looking for a civilian market for its
C-130 cargo transport. And declining use of subcontractors is ex-'
are

off 15,600 men

was

more

in the twenty year

an

missiles

to

War

period ending 1929 and the divi¬

the

securities busi¬

a

consumption is lagging. Copper demand Aluminum sales are disappointing, but producers t
upswing in demand.

of last year's, but.

weak.

First effects of

years

perspective tells us that
dividends per share on industrial

ahead

report

Opens

later the cash dividend is still not

historical

$54.33 a gross ton in the week ended July 17, "Steers" composite
steelmaking grades was down 84 cents fro™ the previous week.'late summer pickup in buying is anticipated.
In the nonferrous markets, zinc and lead production continued

stays

pull in their horns rather rapidly dustrials was
and decisively if concerned about and 1939; that the enormous ex¬
Arthur Primack Opens
their future incomes or if unwill¬
pansion and inflation of the war
ing to pay higher prices? I am not period following the relatively
B R O O K L Y.N, N. Y.—Arthur
suggesting that these questions depressed levels of 1939 was re¬ Primack is
engaging in a securi¬
have unfavorable answers, but I quired to double the dividend be¬
ties business from offices at 44
am
arguing that,; if the answers tween 1939 and 1949; and that Court Street.
favorable, the fashionable trend
away from Treasury bonds could
be dangerous in the extreme.

magazine

.

be

years

ess

Should in fact turn out to be un¬

after hitting the

week

income

quality corporate bond today
purchased to yield better
than 41/2%.
During the next ten

can

$450 per $1,000. That is rather
which fancy going from the very high
essential to the sheer proc¬ level upon which we stand today.

of existence, isn't it as least
conceivable that consumers might

Will Exceed

Expectations

best

Voted to goods and services
are

81%; "Steel" Says July

every

is what I mean. The very

Here

that

the

Offices

sure

corporations will continue to
sink billions of dollars into fixed

month the number of new concerns

continue to be adjusted upward. The publication's .
base price index for finished steel moved up 45 cents.
At $146.19
a net ton
in the week ended July 17, it was, $145.74 the previousweek and $140.24 a month ago.
Warehouses are beginning to ;
mark up prices to pass on increases from the mills'.
7 . * *
•
Pig iron is up. Northern producers marked up prices $1.50
a
ton, restoring a $4 differential • between northern and southern
prices prevailing earlier this year.
Scrap prices edged downward for the third straight week..

Dividend Records

example,

For

Incorporations Decline Moderately
moderately below
previous month and June 1956. For the fifth
incorporations in June fell

was below the
At 11,154 in June, new charterings were 6.7%
11,952 of the similar 1956 month, and 7.0% less than the *
11,986 of the prior month.
;
•
- v
New business charters during the first six months of 1957 ..
totaled 71,211.
This was 6.6% below the record high of 76,257
filed during the corresponding 1956 period.
•
*

years

Today, the

a

Age." They probably;
temporarily! '

below of

the future is as
ever.
Recognition of

that

prices

Pre in

companies

level.

year-ago

—if not, indeed, to successful liv¬
wage
from now, say, after 1960, ing as well! The most imprudent
an
investor can take is to
when the fabulous number of kids step
movement away from Treasuries
born during the 1940's and 1950's make a mechanical projection of
is based upon the assumption that
current business trends into the
start hitting the labor market?
this country does hot face a seri¬
These questions suggest that indefinite future—yet this is being
ous depression in the foreseeable
there is no firm assurance that all done all the time. It turned out to
future.
I am happy to share that
of today's fashionable assumptions be a mistake on the bullish side
assumption. But it is absolutely
can
be accepted uncritically. Yet, in the 1920's, on the bearish side
essential to recognize that it is an
in the 1930's, and it could just
my impression is that their accept¬
assumption or an educated guess,
as easily be a mistake today. The
ance is becoming more uncritical
and by no stretch of the imagina¬
future is always uncertain.
all the time. I shall not dwell at
tion is it a guaranteed promise of
length on this, but my point is no¬
things to come.
As an assump¬
where illustrated better than in
tion, it must be subjected to con¬
Now First Republic
the current institutional enthusi¬
tinuous,
objective, and critical
asm
for blue chip growth stocks
The firm name of The Sands
analysis and testing.
virtually regardless of price.
Company has been changed
to
Uncertainty of Stocks
The First Republic Corporation.

economic environment.

the

both

of

consecutive

is that

message

what will happen

grade our investment selections,
greater the importance of
making correct predictions as to
the trend and nature of the future

the

business

and

one

1995.

equipment

Foundry

customers.

highly-competitive market, says "The Iron
will absorb the steel price boost, at least

that

,

supply contributed

money

can say

users

New

to the are nevertheless accepted without
a ris¬ question by such a large majority
ing price level as well as to an of investors.
That is why I have argued that
expanding volume of production.
no
investment
program
can
be
Now, however, that the output
worth par in 1995. But I can make
consistent or successful unless it
no
prediction as to the value of of goods and services has grown
is based upon assumptions objec¬
General Motors common stock in up to the money supply, to what
tively established and put through
1995, and I cannot even
guess extent is the general price level hard-headed
analysis and testing
whether General Motors will still likely to continue rising? Won't
at all times. For the burden of my
be in the automobile business in the pressures of rising prices in
I

1995.

some

June New Business

from Treasuries to

1995 will be

;

of foundry equipment makers indicates that
are finding it hard to pass along higher steel

survey

their

to

as

we

as

mills offer.

the

this

bright as the
quent shortage of labor, and that
move away
shortage in turn is due to the ex¬ present. I repeat—this may well
other types of
traordinarily low birthrates of the be so, although a future which is
debt obligations and ultimately to
1930's.
Second, we emerged from bright but not so extraordinary
equities, we are shifting from the
World War II with a money sup¬ as the present might make some
highest degree of certainty to a
ply which had expanded very of these investments look a little
lesser degree of certainty, and, ul¬
What really disturbs me is
much faster than the physical vol¬ sour.
timately/ to a rather large area
ume
of productio n—in other the inflation of security values on
of uncertainty. Thus, if I can make
the basis of assumptions which
words, with both consumers and
any prediction, I can predict that
business firms in a highly liquid are not God-given and not neces¬
the U. S. Treasury 3s due Feb. 15,
condition. This abnormally large sarily valid for eternity, but which
will

capacity will

mills predict that new

balance supply with demand by the middle of 1958. t
The shortage of cement due to strikes is slowing down con- .
struction in some areas. But this is having little or no effect on ,
demand for structural steel.
Builders are taking in everything .
them

help

than we years
unusual and by no means perma¬ state of affairs has occurred with¬
Can in the case of any other in¬
nent developments. First, a good out regard to arithmetic and with
vestment as to the exact number
of dollars we shall have at some part of the so-called inflation of very little regard to reality. It is
the 1950's is the result of rising based more upon hindsight than
specified date in the future. In a
most uncertain world, this is as labor costs, which in turn reflect foresight and rests upon the com¬
uncritical acceptance of
close to a sure thing as you can the inadequate growth in the size pletely
the
of our labor force and the conse¬
assumption that the future

we

market for
put to take care
But there's some

easing soon in the

of an

chance

heavy structurals and plate. The mills are hard
of orders on hand. And the pressure continues.

Mechanical Projections

submit

I

sticking closer to •

promises.
little

is

There

unquestion¬ growth stocks.

widespread and

The

government, corporation, or
vidual
is
likely to be solvent ing

yielding

are

than the most popular

And the mills are

relatively easier.

are

their delivery

deny

can

one

margin for error in com¬
stock investing is very nar¬
indeed ,when high grade

bonds

local
indi¬

No

besides.

that the

be correct.

Deflates Other Assumptions

sizes

cussion—and to many other ques¬
tions

Industry

The State oi Trade and

dependent upon favorable answers
to every single one of the ques¬
tions I have raised in this dis¬

Making Economic Assumptions

t

1957

Thursday, July 25,

(404)

an

and

his

retire¬

Ward's Reports

officer of the

Foreign

Secu¬

That Auto Sales Will
20 Days of July

Rise During Last

Chrysler Corporation "stole the thunder" from
and Ford Motor Co. as early July new car

both General

States and International Securities

Motors

he was
associated with Dillon, Read & Co.

poured in this week, "Ward's Automotive Reports"
Chrysler accounted for better than one of every four

said July 19.
new car sales

Corporation

Corporation.

In

and

United

the past

sales results'

186

Volume

Number 5658

.

.

The Commercial and Financial Chronicle

.

the first 10

days in July, said the publication. Its market share was
27% during the period contrasted to totals of 42% for GM and 28%
for Ford.
"Ward's" added that American Motors' Rambler sales

and

and Studebaker deliveries continued at

noticeable

healthy

expectations,

also.-<
Slumps by GM and Ford the early part of this month, however,
dragged July 1-10 industry sales (141,200 new cars) to the lowest
iu-uay level since last October. The performance apparently was
a

beachwear,

stocks dwindled.

as

Although bookings at furni¬

ture shows in New York and Los Angeles were

pace

they

rise

equaled
the

in

wholesalers reported

those

of

a

somewhat below

There was a
housewares. Textile

year

buying of China and

slight rise in transactions in cotton print
to that of the prior
week.
Buyers increased their orders for rayons and acetates.
While trading in fresh meat, fresh produce, and some
dairy prod¬
ucts advanced, sales of poultry and canned
goods were slow.
a

June

of

one

series of brief sales storms enjoyed this year.

a

deliveries

dealer

21-30

(213,500)

the

were

highest

in

15

months.

Liphardt Joins

Goldman, Sachs & Co.
(Special to The Financial Chronicle)

cloths, but volume in woolens remained close

t

ti.e lull after

E. W.

ago.

CHICAGO^

111. — Edward W.
Liphardt* has become associated
with Goldman, Sachs &
Co., 208

INDUSTRIAL OUTPUT STEADY
The Federal Reserve
Board Index of Industrial Production stood at 143
(1947-49 = 100)
in June unchanged from April and
—

Despite the early July decline, "Ward's" predicted that sales
rise during the last 20 days of the month to provide a total

will
of

nearly half

million

a

new

car

sales for the entire month.

the record level

Meanwi.ile, production continued
pf 118,834
•

strong this week.
Output
6.2% increase over last week's 111,943 total.

cars was a

The

so far has been running at a rate that
provide 500.000 units for the month.
Original schedules
.call for 510,000.
Truck production will hit 22,749 units this week compared
to 22,610 last week.

output in July to be close to that of June; the cement workers
strike and reductions in steel and automotive
output may prevent

will

Electric Output Last Week Increased

-

EMPLOYMENT

ably

The

/1957,

of

electric

was

Electric Institute.
of

work-week

the

over

week

.

totaled

revenue

691,991

nounced.

This

was

an

corresponding week
12.9%

below

1956,

of American

of 72,003

but

cars

Railroads

11.6%

or

decrease

a

29,3%

an¬

week which

preceding

cars

holiday and

[July 4

Coal

a full week of
amounted to 99,975

loading

affected

was

the coal miners'

or

cars,

.of this

the

70,449

above the

cars

week

preceding

this

Bank

of

9,592

corresponding

the

above

cars

increase of 41,715 cars above the

last

and

year,

less than the

an

Commercial

and

400 for the

for Week Ended July 18

failures

industrial

rose

266

to

in

the

the week

week

A

week

of

1939.

;

227

small

»to

39

from 216

on

below

On the .other hand,

held- at

toll

;from

37,

20.

-functions
-occurred

Rising for

week in

Mrs.

—

Valere

Justin

B.

Potter

with offices at 4106 Hillsboro Road
to engage

Mrs.

Year Ago

a

of

in

Potter

securities business.

a

previously

was

with

Paul Frederick & Co.

New

Krensky Officer

CHICAGO, 111.—On Aug. 1 Ida
M. Krensky will become Secre¬
tary of Arthur M. Krensky & Co.,
Inc., 141 West Jackson Boulevard,
members
Midwest

of

the

Stock

New

and

York

Exchanges.

the

corresponding week last year.
$22,526,225,431 against $23,238,973,-

1956.

At this center there is

a

loss for

detailed

districts

statement

for various

the

fourth

successive

week, the Wholesale Food
Bradstreet, Inc., went to $6.35 on
July 23, from $6.31 the week before, to set a new high since June
28, 1955 when it stood at $6 42. The current figure represents an
increase of 4.4% over the $6.08 for the corresponding date a
year
ago.
%
hams

failed than

[wheat,

except wholesaling.
manufacturing.

year

a

in all

ago

Higher in wholesale price this week were flour, corn, barley,
bellies, beans, eggs, hogs, and lambs. Lower in cost were

The sharpest year-fo-year increase

in

-

1

-

were

major geographic regions.

oats, lard, sugar, cottonseed oil,

rye,

and

cocoa,

The Dun & Bradstreet Wholesale Food Price Index

the

reported during the week in five_of the nine
Failures in the South Atlantic States
/climbed to 18 from -9, while milder increases lifted the Pacific
States to 77 from 68, the East North Central to 25. from 24, the
Higher tolls

Potter and

have formed Potter Securities Co.

Price Index, compiled by Dun &

of $100,000 were

141: More businesses

146 from

Form Potter Securities
NASHVILLE, Tenn.

Wholesale Food Price Index Up for
Fourth Successive Week

Among manufacturers, failures edged up to 40
wholesalers to 22 from 20, and among retailers

among

Reserve

.

Manufacturing and trade accounted for the week's rise, while
construction toll held steady at 38 and the commercial service

*the

•.to

as

Mr. Lip¬
Vice-Presi¬
of the Milwaukee Company
in charge of their Chicago office.

JCoutSe*'of Bank Clearings."

liabilities

involving

same

Street.

formerly

-

40, but remained above the 34
excess

set in

Salle

ending Friday of 3.3%.

of $5,000 or more increased

189 in 1956.

previous high

the Down Side Over

those

comparative

Federal

under $5,000, dipped
of this size last year.
incurred by 23 of the failing
compared with 19 in the previous week.-rthose

failures,
from

•Liabilities in
'concerns

week ago and

a

was

dent

7

...

Business casualties with liabilities
to

hardt

of clearings for all the
periods is given weekly in
the Monday edition of the "Chronicle" under the
caption of "The

ended July 18 from 256 in the preceding week, reported Dun &
Bradstreet, Inc. The toll was moderately heavier than the 223
last year, while it exceeded considerably the 172 in 1955.
Also,
failures edged 6% above the prewar level of 251 in the compar¬

able

second

1956.

Our preliminary totals stand at

Business Failures Continue Up

La

about 4% higher than the comparable 1956 period.

Clearings

3.1%

■

South

underway.
the

year ago.

•^vilL be

preceding week.

3%

was

was
was

clearings this week will show a decrease compared with
Preliminary figures compiled by us based upon tele¬
graphic advices from the chief cities of the country, indicate that
■4ov the week ended Saturday, July 20,
clearings for all cities of
the United States for which it is possible to obtain
weekly clearings
a

year.

week

a

Bank

6,575

Miscellaneous freight loading totaled 325,212 cars, an increase
of

was

PRODUCTION

year was

vacation.

decrease

a

by

...

below the corresponding week a year ago, but an increase of

.cars

UP—There

ADVANCES—In spite of some shut¬
downs for vacation periods and flood conditions in
Detroit, auto¬
motive, output expanded, and slightly exceeded that of the similar
1956 week. Total output of cars and trucks from Jan. 1 to July 13

above the

of 102,147

record; it

on

AUTO

the

above the

EDGE

Edward W. Liphardt

_

slight increases in hourly earnings.

the first six months of

-

corresponding week in 1955.
Loadings in the week ended July 13 which were affected by
days of the coal miners' annual vacation were 156,657 cars

two
or

Association

increase

in

highest

freight for the week ended July 13, 1957

the

cars,

mid-May. At $82.59, weekly earnings of fac¬
1% higher than in mid-May, reflecting a longer

sharp rise from a year ago when the steel strike
Steel ingot production for the first half of 1957

Loadings Up 11.6% Over 1956 Week

Loading of

were

and

coming orders in August. Steel output was set at 81.0% of capacity
this week, reflecting a slight increase from the
prior week and a

ended

July 9, 1955.
Car

JUNE HIGH—Employment rose notice¬
mid-June, the highest for any June on

slight rise in new
orders for flat rolled steel this weekend
bookings were higher
than anticipated.
Steel producers expect a noticeable rise in in¬

342 000,000 kwh. above that
the comparable 1956 week

kwh.

1,686,000,000

in

STEEL ORDERS

•

kwh. and

1,181,000.900

AT

million

tory workers

energy

The past week's output increased
the previous week; it ro.-e above

66.5

of the increase from

distributed thy the electric
power industry lor the week ended Saturday, July 20,^
estimated at 12,306,000,000 kwh., according to the Edison

amount,

light and

to

record, according to the United States Departments of Commerce
and Labor.
Students and college graduates accounted for most

312,000,000 KWH

Over Prior Week

r

increase in over-all industrial activity.

any

^

■

May.
Although it was below
December, it exceeded that of June 1956.
output increases in June were reported in
and television industries. Officials expect total

of last

noticeable

the electric power

July automobile production

^

most

of

total

sum

the

price

per

pound

of

31

raw

potatoes.

represents

foodstuffs

and

meats in general use.
It is not a cost-of-living index.
Its chief
Junction is to show the general trend of food prices at the whole¬
sale level.

•

,West South Central to 21 from

above

'There

'

•

Retail

trade

in

volume

New

York

City

advanced

6% to

8%

reported.

was

no

18, and the Mountain, to 10 from 7.
change in the New England and East South Central

78\from

'States, while the Middle Atlantic toll- dipped to
'tue

North

West

'.year's level in

Central

to

13

14.

from

92 and

Casualties,..exceeded

last

corresponding

Weather

was

period

seven

year

store

ago,

executives

generally favorable, though not hot enough

As

a

result of heavy

promotions, sales of furniture

during the week than they have

North Central States.

a

to

stimulate sales of fans and air conditioners.

regions, remained even with 1956 in the
North Central States, and declined moderately in the East

West

the

were

This

better

man

is looking into

been for some time reports the

"New York Times."
•

Total Dollar Volume of Retail Trade Week Ended

i

4% Higher Than
FURNITURE

SALES

a

Year Ago

HIGH—Dun

view of the week stated that consumer

and

interest-in

'stimulated
.'in

&

Bradstreet

Trade

Re¬

purchases of furniture and

women's

Summer

a

;
,

apparel

and

climbed

floor

coverings.

with

somewhat,

gains

apparel. Another rise in sales of passenger cars occurred
this week, and volume was slightly higher than a year ago. Dealer
inventories in the first two weeks of July ran somewhat higher

:

those

the

of

comparable -1956

period

for

the

men's

wear

and

BEVERLY

first

time

HILLS,

North

Roxbury

with

formerly

Calif.—Luis

Drive.
Waddell

Harris, Upham

(Special to The Financial Chronicle)

Miguel del Camino-Royales is now
affiliated with Bache & Co., 445

He was
& Reed,

BEVERLY

HILLS, Calif.—Alan

C. Weinberger has joined the staff
of Harris, Upham & Co., 9860 Wil-

shire

Boulevard.

ended this

total dollar

Wednesday

was

volume

of retail

FALL

year

ORDERS

men's and women's Fall apparel

centering primarily
in

BEVERLY

ago,

APPAREL

on

UP

—

An

upsurge

in orders for

occurred this week, with interest

women's dresses, sweaters, and sportswear;
appreciably. Retailers

men's slacks and suits advanced

again stepped-up their reorders for women's Summer sportswear




Carroll Adds

BEVERLY

(Special to The Financial Chronicle)

unchanged to 4%

according to estimates by Dun & Brad¬
street, Inc. Regional estimates varied from the comparable 1956
levels by the following percentages:
New England, West North
Central, and South Atlantic -fl to +5; Middle Atlantic and West
South Central +2 to +6; East North Central, East South Central,
and Pacific Coast —2 to -j-2; Mountain —4 to 0.
a

future

How does it look?
of cancer?

You

Rosy? Free

hope! But

E.

Fest

staff
North

of

has

H.

HILLS, Calif.—Paul
been

the

Boulevard.

Carroll

&

Co.,

324

Nance

John R. Lewis
John R. Lewis

July
18th at the age of 70. Mr. Lewis
prior to his retirement had been
a partner in Benjamin D. Bartlett
& Co., Cincinnati.
passed

away

He

was

Investment

California

Camden Drive.

year,

formerly with
Co.

and

First

Company.

Cortese

to

Admit

A. J. Cortese & Co., 40 Wall
Street, New York City, members
of the New York Stock Exchange,
on
Aug.
1 will admit Vincent
Constantino to partnership.

this

3 will die because science

still has

no cure

for them. It will

take lots of research to find that
cure.

Pitch in and

to

help. Send

check right

"Cancer" in

care

a

now

of your

local Post Office.

HILLS, Calif. —Leo

D. Bartelme, Jr., is now with T. R.
Peirsol & Co., 9645 Santa Monica

to

added

Americans who get cancer

generous

Now With T. R. Peirsol

Inc.

H.

ESTIMATES—The

the week

higher than

volume

Joins

With Bache & Co.
(Special to The Financial Chronicle)

.

REGIONAL

in

Lingerie,

and children's

(Special to The Financial Chronicle)

year.

trade

showing.

up

hoping isn't enough. Of every 6

in

boys'

than

good

was

Volume

dresses, sportswear, lingerie, and some fashion accessories.
There was a slight year-to-year increase in the call for men's and

.'this

fairly

a

Shoe volume

sportswear sales were disappointing in many stores."

cotton
•

made

wear

better lines.

a

housewares

your

"Ready-to-wear sales were generally below last year's volume,
except for the

high level this week, and volume
year ago. Sales of air conditioners,
major appliances lagged, but clearance sales promotions

'bedding were sustained at
:was moderately higher than
•fans

July 17

American Cancer Society

*

34

The Commercial and Financial Chronicle... Thursday,

(40C)

Broad Street Funds Report

Shareholders of

\

,A.

Managed Fds., Inc.

-j

Featured with the July issue

i

itj

»'

By ROBERT R. RICH

of

History

Next Year To Be Best in U. S.

Profile," being mailed

15,175 mutual fund share¬
holders of the $54 million Man¬
the

Funds, Inc., is an actual
sample of Anaconda's "ElectroSheet" copper which plays a vital
role in the efficiency of the na¬
aged

tion's radar

warning system.
The text of the publication ex¬

plains the uses of this important
material and the processes used in
manufacture, in addition to a

its

brief

analysis

Cop¬

of Anaconda

In its

mid-year review and

PHILADELPHIA,

Pa.—Pening¬

the

in

and

forecast, distributed this morning

and

according to Mr. Randolph,

with

this year "once

ap-

between

evenly

\

tt

4

i>.

i

stated

He

i

that

Amato has become associated with
them

as

representa¬

registered

a

tive.

important
been able
$10 billion. Now, homebuilding has begun to turn up,
automobile sales have been better the last couple of months, and
inventories in a good many lines are approaching the point where
they will need to be built up again to support present sales
truly significant fact is that, while these
proceeding, Gross National Product has

orable

Federal ex¬

review forecast a $5 billion rise in

MUTUAL

INVESTMENT

"despite

year

a

consumer

a

a

/•TWdSM

Na/mwf.

creased

York 5, N. Y.

DIVIDEND NOTICE
ATOMIC

Start Their Own

Lightens Transport
Share Holdings

Association
the growing

forth

set

To

benefits
of managed portfolio investments
by U. S. investors in Canada and
other foreign countries, four of
the largest Canadian investment
significance

nomic

and

Committee's member com¬

panies comprise Canada General
Fund, Ltd.: Keystone
Fund of
Canada, Ltd.; New York Capital
Fund of Canada, Ltd. and Scudder
Fund of Canada, Ltd. Other simi¬

FUND, INC.
Quarterly Dividend
Investment

Income—.

Year-end

12ft per sliarfc
Capital

Gains Distribution

pef share

Both payable on August
to

12, 1957
stockholders of

record

July 8,

1957

larly new companies in the field
Canadian International

are:

Growth Fund, Ltd.; Investors

Group Canadian Fund, Ltd., Tem-

Canada,
Canada,

pleton Growth Fund of
Ltd., and United Funds
Ltd.

ada

incorporated

been

registered

and

under

regulating investment

laws

S.

U.

com¬

panies organized to distribute se¬
curities to U. S. investors.

public informa¬
delineating
the

and

activities

tion

constructive

role

of

private for¬

by

investments

portfolio

eign

coordinate

will

Committee

The

educational

in
other nations of the Free World.
U.

Inc.

investors

S.

Canada and

in

pointed out that

other countries have

Canada and

"increasingly

welcomed portfolio

investments by U. S. citizens be¬
cause

such

indirect

investments

supply essential capital in a man¬
ner

does

that

,

not

and

cannot

constitute

intrusion

tional,

corporate affairs, since

or

in

their

EATON

&

or

HOWARD, Incorporated

individual

foreign

or

in

domestic

corporate enterprises is limited by
the

24 Federal St., Boston, Mass.




company,

reports

for

the

total net assets of $1,156,024,565
\vas

°in- with 97,645,594 shares outstanding,

The Fund

1/2,642 shareholders,

c^vned by

^ are frccord highf figures
t.?.uarte£(yf periocl

Act
of

U.

S.

Investment

of 1940 to

assets

at

not

cost."

more

Gas and

Gas &

Company
than 5%

Republic

of

shares each

800

f ho

„

Electric.

Reductions

consisted of the sale of 500 shares
of

Minneapolis-Honeywell Regulator,' 400 shares of U. S. Gypsum
300 shares

and

of National Lead.

1,1

Ti

a gain payment of 14 cents
i'], n0G uaiT» 1S equivalent to
$
anf* compares with a per
~ a1 e
ass1G|'r£,va e
$11.69 on

Ju"e 30, 1956.
Ihc

Broad

Street

Investing

$21.37 at March 31

Corpo-

report calls attention to the

Trust's

continued

in

growth

the

$100,061,360 number of its shareholders. Shareat
June 30, a new quarter-end holder accounts have increased by
ond common stock mutual fund high.
This compared with $94,- 13,228 since the first'Of this'jtear
in nisiory to reach this size.
518,508 at the start of 1957.
and have nearly doubled
from
Assets of the fund, at June 30,
Per share asset value was $21.95 88,000 to over 172,000 in the past
totalled
$406,555,415, a
gain of at the mid-year as compared to live and one-half years.

Net

value

asset

vanced

than

more

share

per

dollar—from

a

Shares

ter.

24,039,337

outstanding

to

rose

shareholders

and

to

all

the

thousands

corporations,"

of

according

U.

S.

the

to

fund's

quarterly report now in the
mail to shareholders, "Fewer than
50

have

now

sharehold¬

many

as

Fundamental Investors,

as

ers

March

Investors

has

31, Fundamental
materially reduced
in transportation is¬
Railroads, which represented

its holdings

6.5%

the

of

been

fund's net

assets

on

tive,

were

In¬

eliminated.

completely

creased

holdings in automo¬

building,

chemical

and

oil

popularity with shareand, at mid-year 5,023

holders,
plans

were

one out of every four
Corporation's 21,590 share-

in

meant

This

use.

about

of the

holders
of the

availing

was

themselves

facilities and services pro-

Common

stock

holdings

Although

American

the

was

only

Marietta
stock

common

newly added to the fund's port¬
during the quarter, substan¬
increases

vious

were

holdings

made

of

in

pre¬

American

Broadcasting-Paramount Theaters,

with

77.3%

TAr

>

nAffi. ^
of Safeway
conversion
that

of

More

stock

oL

important
41111

ngf included°mi2 700 share*
Power

of

Middle

Oil

South

Utilitios

&

lSl share

Marine

Corp.;

Timlcen

Roller Bearing Co.; and Trane Co.

shares

4 000

nf

9 9AA

2,200 shares of

The

Amerada

of

completely holdings

Petroleum.

important decreases in

more

included

Pacific Ry. Co.; United
Airlines, Inc. and Western Pacific

of 5,000
Electric,
Oil, 3,200
shares of Union Bag-Camp Paper,
2,100 shares of Sunray-Midcon-

RR.

tinent

Common stocks

ings

from

during

the

the

fund's

quarter

hold¬
were

Northern

in

Co.

Reductions

were

made

holdings of Atchison, Topeka &
Fe Ry. Co.;
Boeing Air¬

Santa

shares

3,300

of

Pacific

shares

of

sales

Gas

&

Shell

Oil, and 2,000
Kennecott Copper.
National

plane Co. and Illinois Central RR.

new

Co.

$10.76

Investors

quarter-end
at

June

shares

shares

record

30.

in

insurance

bank stocks, reports

were

This

aS comPared with $22.05 OH

W,097,030.

Including the

eC ^pital ( gains distribution of 78
pG1^ a1G paid last Jan* ol»
represents an increase of

trie, 3.900 shares of Atlantic City
Electric, 3,400 shares of I-T-E CirBreaker, onH
and

specializing

company and

DeC- 31' 1956 when total net assets

7

of

Inc.; Avon Products, Inc.; Chesa¬ Krqger. Holdings were eliminated
peake & Ohio Ry. Co.; General by the sale of 10,000 shares of
Motors Corp.; Gillette Co.:
Out¬ American Natural Gas and 1,200
board

fund

4 300 shares

Powp!

FmUiiTn

Rrpalrpr

dis-

share
represents
per

r0tal net assets oi' *50>347>3«4 on
Jane 30' 1957' eciual to $2311 per

shares

shares of OkhdiomGas

Pllit
cuit

gains

of

12 000

SkSly

of

capital

the

an

preferred

.

shares

broad

total net
$50,£5, 1ton
30, 1957, equal
nf°r SJ!?areo?S
^ $22-05 on Dec. 31, 1956 when

<!frn^°?'UOn ti-ibution of 78 cents
8,600 shares pai(1 iast jan 31 this
received upon
in(.rpa~0
qq^

!T
if
Stores

American^

?

Including

...

,

4

company.

.

low cost,

total net assets were $47,097,030.
'

'

management at

-diversification of risk, ready marketability, and convenience of
ownership are attracting more ancl
more individual, fiduciary and
institutional investors."
Century Shares Trust, a mutual
^und company specializing in in-

three

months earlier
a

such advantages as professional

made

78.4% of Broad Street Investing's net assets on June 30, as
compared

The trustees note that, "This
continued gain demonstrates that

surance company and bank stocks,

vided by the Plan.

Montana

shares.

tial

in

gain

,>.n

March 31, are now down to -5.0%.
Investments in air line shares have

Co.

The Broad Street Investing AcPlan
continued
to

cumulation

up

Inc."

sues.

$21.85 at :

and

beginning of 1957.

that

86,132.
"Of

the

ad¬

$15.67 to $16.91—during the quar¬

na¬

the extent of such investments

Dealer

'

Trust,

ration net assets were

eliminated

Investment

™

a cap

shares

1,000

000,000 mark during the quarter
ended June 30, making it the sec¬

folio

The Committee

your

.

Investors

Tlusts 33-yeai history
Thc"%\ ass.e* va}ue
share
^
?.,
which, together with

$400,-

the

passed

Since

have

AH

since 1954 under the laws of Can¬

Prospectuses available from

T

three months ended June 30, 1957

over
the figure on
March 31, end of the first quarter.

public information source.
The

MUTUAL

i!1 was of Safeway ment
®steblished

Total net assets of Fundamental

Investors,

central $36,689,641

vestment Companies, as a

From

eco¬

of

DEVELOPMENT

-i

l\CW A\CC01*(IS

cific

Fundamental

companies
announced formation
a
Commitee of Canadian In¬

4

UTolr^c

lTlctl4.Ua

•

y-*

of American.Natural Gas and Pa-

Canada Funds

Established 1930

Broadway, New

of

Electro-

nation's oldest mutual invest-

1,200 shares of National Cash Reg-

YOUR INVESTMENT

120

rP

Massachusetts

shares

by 800 shares

Natural

RESEARCH CORPORATION

t\t

..

..

eliminated holdings by the sale of

FREE INFORMATION

NATIONAL SECURITIES &

T

4TA* A. J.

portfolio

Monta^ P^er

inv

istciv

PROSPECTUS TO
DEALER OR

TIT

,UPOn

?ng

sales

Hooker

of National Lead<

and

u

.

,

-+kCWi n/wf
1,000

WRITE FOR

FOLDER AND

Ran-

bond

stock

common

with

Industrials have closed higher
on Sept. 30
than at their June low in all but one of the last 33
years, the Slayton bulletin said:
"The statistics of the 'Summer rise' plus the general business
outlook add up to a sound argument against waiting until this
Fall for the commitment of investment funds."
Pointing out that the Dow-Jones

A*?1

the

..

the

included

of

shifts also

some

issue market

T

In

4

spending.

consumer

should also
$13 billion increase in

income after taxes

resulting in

Mr

return.

of

within

shareg

preferred stock category to take
advantage
of
opportunities
for
improved income provided in the
new

said

bulletin

The

continue upward next year,

rates

made

were

billion in 1958.

FUND

issue

new

dolph added that

growing desire to limit them,
both in the Administration and Congress," with state and local
government spending also due to increase.
It predicted that
total spending by all governmental bodies will climb another $8
next

penditures

on

of

chcmical, 3,600 shares of Shell Oil,
2,000 shares of American Airlines
2,000 shares of Eastern Air Lines
2,000 shares of Minnesota Mining
& Manufacturing and 1,600 shares

bonds which
^cause of current money market
placed

holdings

5 0()0

and that within this category
investments
emphasis
was

ance,
of

shares

4.900

and

f0jj0

bal-

this

maintain

to

securities

were

rise

to

senior

in

Cup,

u. S. Vitamin. Reductions in port¬

conditions, offered relatively fav-

declines

The interim

A

Tulip

port-

the

lor

Holdings

Purchase

during the past

purchases

quarter

folio were concentrated

"The

Stores.

of 5,400 shares of common stock
°£ Skelly Oil, 5,000 shares of Lily-

*.

4u

•

j

volume."

ton, Colket & Co., 123 South Broad

Street, announces that Michael A.

ACI-Wrigley

stocks, the chairman re-

nnrfpr3

to keep

again" demonstrated the ability of the postwar economy
declines localized by industries, and adaed:

distributed

fixed-income senior securities and
common

New investment positions
established with the pur-

?Q7£mp<l£ Corp. debentures, 5%,
,warJ;
s attac^d and
30,600 shaies ot common stock of

have

investments

be

to

proximately

$460 billion in actual

review noted that the first half of

were

chase of $500,000 principal amount

fund's

continued

services of

total 1958 output of goods and
dollars.

a

stocks.

compared with $7,942,047 six

The

year,

stocks held

months earlier.

According to the report, the Federal Reserve Index of Indus¬
trial Production could reach a level of about 150 by the Summer
next

increased in value

period but prices of bonds

preferred

year,

1.957.

and

The Slayton

Colket

totaled $73,379,011 at June 30. This
also set a new high, up $6,969,635
in the from $66,409,376 at the beginning
portfolio were depressed by tight of the year.
money
market
conditions.
Net
National Investors continues to
assets totaled $8,265,590 at mid- be
fully
invested
in
common

$56 million

shareholders of Managed Funds, Inc., Slayton Asso¬
ciates, Inc. said it sees no signs of a change in the pattern of the
expansion movement which began in mid-1954 and successfully
underwent1 mild "slowdowns" during the first halves of 1956

some

With Penington,

a

the 15,250

to

of

Co..

per

stock holdings

mutual fund flatly
predicted today that 1958 will be the best year in the history of
American business for the fourth consecutive 12-month period.
of

The investment counselors

•

<-"■

lier,
^reflecting
the
fact
that
was
reported by .Francis F. growth stocks in the investment
Randolph, Chairman and Presi- portfolio over-all fared considerdent
of
this
balanced
mutual ably better in the market than
fund.
This compared with $11.55 stocks in general,
three
months
earlier.
Common
Net
assets
of
the corporation

'

;

i

y' *-*' * «• *

■

lf% from'$9.69 three months ear-

at $11.64 at June 30,

shares stood

■

'h\

,

*

.

of Whitehall Fund

value

Asset

?

•/!,,/'

*

,

Can Feel Anaconda
"A Product

t-'' "

•

i,

to

July 25, 1957

of

set

level
was

a

of
up

/o •
Commenting
.

on

recent

results

fo msurence and in banking, the

^lus^ees observe that:
."Premium volume and investment income for the fire and
casualty insurance industry continue to increase and are expected
to establish new records in 1957.
All the fire and casualty insurance
companies
nnrtfniin

represented

hiw

in

the

o

portfolio have paid the same or
gfater dividends than
l!«G.

T"e underwriting experience lor
the

industry

was

mixed.

Higher

Volume

186

Number

5658

.

.

The Commercial and Financial Chronicle

.

(407)
insurance
and

rates

writing

experience
in

in

now

been

Continued from paqe 14

eral

be

under¬
the year

of

progressively

the

results

force

"More Yankee Trade-

re¬

expire and

are

is

ance

reported

1957

in

the first

29%

were

similar

good

period

the

based

life

five

in

insur¬

months

1956.

1957

indicated

insurance

r\

;

irivestments.

t•

n

.,

.

Quest,#ns B##kkeep,n*

.

^ tlm four items contained in
this overall aid authorization,.

mortality
experience
higher rate of earnings on

a

American people. In the end, it
will cost the American taxpayers

industry

favorable

and

to reduce the overall foreign aid
budget in the eyes of the public—
to conceal $2 billion annually from
both the Congress and from the

rising premium volume.

on

'

which I

about to detail briefly

am

"Most of the banks

represented-were adopted by the responsible
have, reported officials of any publicly held
higher earnings in the first six United States corporation, these
months of 1957 than in the similar officials would, very likely, face
in

the

portfolio

period
for

of

1956.:

loans

As

the

interest

Here

rates continues strong the outlook
is tor a continuation-o( this imfor
continuation of

provement
of

during tile
year.'

the

(1)

The budget of

remainder

ncxt

years, which certainly
be added to the total for-

&
at

trouble
the

mutual

for

because

us

it

means

interference in the internal bank-

two

ing affairs

funds

of other

countries

through
and
high of $267,146,922 ,fu ugn lending ana relending
reienaing
1957
1957, nomn.rpH with large sums of money within their
compared with.

new

no
3f>
on June
30,
$243,071,203

at present.

as

currency re¬
ceived from these food sales
spells

of

Howard

not

fr7m"the°America"n

concealed

Moreover, foreign

Gain in Half
were

Depart-

three

people

Fund Assets

Eaton

the

eign aid bill. This item should
be

.

„

year

a

~

..

p

„

country. Only 10% of the

ago.

soft

Eaton & Howard na.anced Fund

-L'uiiencies received from food aid

semi-annual report, issued to 26,-

sjdes 1S used *or the maintenance
our own overly~P°Pulated gov-

228

shareholders, shows assets of
$180,348,933, 'an increase of $3,574,557 during past
12
months.
Shares outstanding on
June 30,
1957, totaled 8.070,559, compared
with 7,833,594 on June 30, 1956.
Value
per
share was $22.35 on
June

30,

$22.57

a

1957,
year

for the

ment

eminent

establishments

within

a

given

country.
The balance
of
90% puts us in the foreign bank¬
ing business with foreign
cur¬

obviously

rency,
„,

.

.

normal

conduct

threat

a
„

of

the

to

the

__

Furthermore, it dumps

ago.
After adjust¬
distribution of real¬

volume

of

af-

large

a

held

government

A

billion

two

new

"blank check" with

without

Line

of

have

hoaxed

its

food

assistance

and

—

the world by destroying our-

save

We
is

folly"

if
expand

and

I

gram.
.

.

do

we

assure

it

you,

.

.

continue

giveaway

our

can

not

"it

-

pro¬

is the

substitute

a

firmness

Behind

our

foreign-aid

in

a

Maginot

billions,

ourselves

we

with

the

have purchased

we

security.
And

told repeatedly that

are

given
deceptive

is

and

conviction that

selves.

dollar

these

why

added

The

reasons

more

are

need

we

traders.

Yankee

ability to trade

mands

respect,
prevents wars.

War.

com¬

wins

friends

and

The

foreign

aid

The sterile hand of state is

To

strings. The

no

me,

of the most alarm¬

one

aspects

of

foreign

our

aid

proposal cal1? program is that
well
I"!' h",authorization of ^efni
pe0Die have be"n
,, f r'f
«S™
sPent at
,]d
tjlat
vast
0f
rate 0f $500 000 000 for the suaded ^hat ttus ™st array of
so

manv

nnn nnn

first year and $750,000,000 for each
,e1?? S^years. No

^

spendfn^This^af/sumVill'be

tlmre
we taw'aot
k°u§ht one i°ta of protection in

given

at

away

the

discretion

of

seaCuritPe dmg W,U bUy

Thp

of

case

istration

called UP""
tducu upon

^POPTinhinal

no

spread has been defined. It is im
ted
k importantto
hl
bl

,

f

great

will

nnn_

necessity in spite of the

sacrifices

have

we

been

to IIlctlAe. ACUTIH
tU make. Recent

news
news

dispatches from Japan, Formosa,

t th

.

t

hilars

lion

tion to American tourists. This has
been shown in country after coun-

hundred

the

million

dollars

two

succeeding years.
The only problem will be to see
that the money is
fully spent and
never mind how!
T,

,

It

This

is

happening
Happening

'»

and
ana

more
more

both our Domestic and
Foreign dealings.
Never before, at a time when
more

£e g«ns ?re not, booming, have
the American
people

jected
from

to

.

more

been

sub¬

"brainwashing."

Washington than at present.

Never

before

Executive

has the

been

will- of the

forcefully

more

,

_

Europe, according to the United
Press, is extending a cool recep¬

five

and demands and. the private ini¬
tiative which can
supply them. »

nfoe'the inperan" and other countries report numer- imposed upon both the Congress
P~ ous manifestations of anti-Ameri- and the American people. Never
tg f. t
sentiment.
Even
Western before have we been confronted
wfll become the
SK
with
a
more
bloated

centive, the urge and the itch to
get rid of the additional one bil¬
over

now

wants

recos

.

biiii0n

shnwfi nnH

H

Department of State and the
International Cooperation Admin¬

the

and

interposed between, human

arrav

,

should

„.

be

_

recalled

.

that

the

Jast Congress flatly refused to give
£vnnk£nSn!?nnt a Dlank check for

$160,000,000
Now under

that have been the recipients
bounty.
Not being satisfied with giving
aid. to our friends and allies, we
have
given billions to the socalled
"neutralist"
nations,
totry

of

per year for ten years,
a new authorization

Federal

budget

,v

ow-

gether
with vast quantities
of
military supplies. No thought has
been given to the stark peril that

$71,800,000,000 — the
danger to inflation that

—

greatest

kas ever been forced
American people.
These

our

UUVv

.

fiscal

Tairs of any country.
with

compared

War.

strength

has

and

money

Cold

ing

Agriculture includes
$750,000,000 of foreign aid for the

Eaton-Howard

assets

V

that

for

-

It

course.

comfortable

.

(4)

items:

of

ment

should

Combined

the

are

States

policy

a

belief

35

»®re billions because the visible
S lf we do contmue program is today supplanting the
private investor and in a large
Pa*t °f the aid budget will go up
P
&•
and the defense budget already
The present policy of weaken- measure competing with the sound
Plagued by inflation, will become ing this nation's economy and cle- expansion, of foreign trade. The
a militaiy secret,^ and a more fenses by giving ourselves away dead hand of the government
This
nr,u*~ is a dishonest makes it inevitable that we will bureaucrat cannot take the place
technique. It should be con- be forced again to send our sons of American initiative
it can
to fight and die in a third World
only dry it up.
domned and rejected.

Federal prosecution:

demand

favorable

at

eign
us

doing, the United

so

bankrupting the American people.
One thing is certain—we cannot

sP°nsors.

Another

is

in¬

or

of

dorsed, by an almost overwhelminS majority, an aid program for
the new fiscal year which Senator
Johnson now both supports and

of

the

of

excess

of

for

year

for

life

sales in the United

company

States

that

resources

would be able to achieve its
goal
without insulting the beneficiaries

Less Foreign Aid"

re¬

newed.

"It

In

policies

as

natural

as

dustrial potential.

unsatisfactory

should

flected

have

beihg instituted after the

are

generally
1956

which

factors

are

reappraisal.

Several

the

upon

that

compel

months

ago

Congressmen got the surprise
of their lives. The people rebelled

our

against the

excesses of the sunerspenders in Washington and their
protests descended upon the legislators in an avalanche,, the like
of which they had never seen before. For a time, Congress took

for- the same
President boldly de- in some future time these very
renre--cign countries receiving them, mands another "blank c^ec^"
arms might be hurled against our
it™ nVl
"/ nhove thereby restricting the normal hls appointed, not elected, global own sons.
notice and took out the economy
the
Tune
1956 figure
Common procedures of foreign trade. This spenqers to lacue out tv»o vx.i.uii
vVe
have
already
seen
Tito, knife.
Then the people stopped
has led to an ever
growing number dollars over a three year interval. Nehru, Nasser and others visit and protesting and the
stocks totaled 69.8%
of fund on
spending went
+
Siowmg numoer And to toss out thc^c billions ^u ^sser ana otners visit j
into high gear again, spurred by
June 30, 1957; 9.9% was invested' ?f
5°^iaintLfr?^U* S' exP°rters where thev oleLe when thev 1
h°" toJh.e Communists m the
in
ized

profits

Decern her

tenK

of

the

$0.42

«hare

share

a

supplies, at less than cost,

in

on

^

—,

value

nn

.

-

-

*

preferred stocks; 11.7% in

nn(:nfp

hnnrH-

G^verni^-rrt
Iinipc

1

ings

in

s

r-a^h

f: i

wore

billion dollars of Please ana as tney please, it con-

a

"defense

support"

is

another

Eaton

&

'Howard

Stock

semi-annual report, issued
942

increase

1957,

totaled 4,013,781 compared
3,157,084 on June 30, 1956.
Value per share was $21.62. com¬
pared with $21 a year ago. After
adjustment for the distribution of
with

f

?

profits of $0.35 a share in
December, the share value repre¬
the

increase

an

June

1956

of

4.6%

figure.

totaled

stocks

87.7%

above

Common
fund

of

on

June

30, 1957; 12.3% was in U. S.
Governments,
short-term
notes
and cash.
Largest stock holdings
by industries were oil (16.6%);
insurance (8.6%); power and light
(7.9%); chemical (5.9%); natural
gas (4.9%).
''

a

dunli-

.J constitutes a dupli
aid funds, regaidless of

highest officials and
the

H.

Ncvvbold's Son & Co., 1517 Locust

after

the

year,

argument is that

we

principal
spending

are

Mr.

_l

•

Beardsley

—

for

on

at

the

least

„r.

.

^

..

annual

appropriation

for

all

for-

&

Co.

more,

has

Square

offices

in

Building,

the

Ard-

ventures. It would end the bureau-

the

case

of

this

plan, the "defense support" funds
to

are

be

reallocated

the

to

In¬

ternational

tration,
in the
not

in

so

Cooperation Adminis¬
that it ends up as before

economic

aid

pipeline and

the

percentages that are
given to stimulate the superspend^

Now it

is

planned

to

hide

foreign military aid from the Congress by incorporating it in our

that

through the catacombs
of the Pentagon!
If Congress allows this to hapruns

and

economy
of

creeping
There

it

that

means

the

will

so-called

be

sepa-

This

global giving

our

less

and
_

the

many

costly

A1

further

spread

Joins Sills Co. Staff
MIAMI,
now

the

overall

billion

budget.

will

be

Actually

hidden

from

Congressional supervision, so that
it will be almost impossible for

legally constituted legislators
to know how much is beirg spent
for military aid and whether or
not it is
being u-.ed exclusively
for military hardware and training

Fla.—Arthur P. Green

with

Pills

&

Company,

Ingraham Building.




The purpose

of this is, of course,

single year are

a

ap-

their

be

con¬

may

soon

inflation that not

an

effective

of

assisting

ways

*

a

•

other countries

u

in

•

i

their

.

economic

development than direct handouts
—

~

-

from the Federal Treasury,
We need more Yankee traders
less

of

Lack

more

foreign aiders to stimu-

coordination is
nL

4ii«*a

n

a

true index to the

o

character of the foreiSn sid program that the Congre^s is being asked to continue.

nature and

With

the

difficult

world's

problems

varied

and

and

the

so

derful

to

simple and

easy

fast

away more

without firing a shot and our own

politicians
their

write-offs,

such as are
now granted to industries engaged
in defense production,
Another
pand

the

Bank

to

interest
upon

way

would

capacity
make

loans

to

of

be

to

the

long-term,

ex-

World

low-

worthy nations
the security of such collat-

or

is

it

to

a

would

fiscal

lem

both

than

has

when,

as

it is

to

hit

upon

and sounder methods of

surer

Yankee

own

(Special to The Financial Chronicle)

BOSTON,

eral

Street.

many
*

Mass.

—

Alfred

R.

years

Mr.
was

become

we

than drift

ar*1

in

more

to the

downer

our

an

officer

for
of

of the Boston office.

Real Property
BEVERLY
p

r 0

p e r

t

y

Associates, Inc., 208

for-

Drive> is
L
...

SaSmS in a
are

Assoc.

HILLS, Calif.—Real

Beverl

ident*

us

Stembridge

Distributors Group, Inc., in charge

ficers

more

our

traders.

Alfred Slembridge With
W. E. Hitton S Co.

so

out—give

wav

opiate which blinds

little

....

...

problem now before us is
get politicians and their ap¬

pointed global givers out of for¬
eign aid and substitute the safer,

won¬

continuous drain upon

appalling fact that

and

prob¬
we put

One

the

an

for

any

Nation,

a

lem at hand.

American taxpayer. It has become

a

home

at

surmount

can

.

aid

us

minds and hearts to the prob¬

our

harmful?

Foreign

blame

madness.

Americans
abroad

money! But is it good,

tax

to find,

able

the
win

would

so¬

lution

be

Moscow

so

capital
into
needy and underdeveloped
nations through the incentive of

hard

in

else

anyone

information, with W. E. Hutton & Co., 74 Fed-

specific

general vagueness and absence of
va

or

Then

Stembridge has become associated

spent for the purposes intended,

inflation.

are

~

pen

dollars.

propriated for economic aid. Concratic
superstructure
that
the gress loses control of the purse
American people must now sup¬ strings.
port to keep the giving in high
Congress has been handing to
gear.
It would stop our policy- the
ICA,
and
its
predecessor
making politicians from creating agencies, billions of dollars of the
their mmioi
^ho5i« annual cry r\t "crisis," «ri,jnVt npnnlp's mnnpv without, anv nre,
>> which people's money without any preof
immediately disappears as soon as vious determination of how the
the appropriation is made. And money is to be spent, and without
most important of all,
it would audit or accurate check to deterstop
the
threat
to
our
overall mine
whether the money was

in the spending stream

our

Pa.

carrying out its foreign policy
programs of foreign aid.
Perhaps the answer lies in the
fact that Congress has abdicated
much of its constitutional respon-

latest

in

ever,

billion

one

$2

Suburban

we

ourselves

world.

agreements

be spent in

to

Newbold's

Son

favorable

secure

extravagance in

aid.

tary,

late the flow of American

H.

not

would stop the present waste and

military aid funds

Co.

ganda rather than the application
of our own reasoning" and logic?
One wonders why this country,
with its reputation for ingenuity,
organization and production, can¬

and

eign aid, both economic and mili-

and

W.

and, maintain

concern

our

How-

economic

&

Parrish

their

protests

fronted with
for

in

„

What Our Aim Should Be

in

Philadelphia,

is

aid must go

rated from the economic aid funds

with

coun-

quarter for

formerly

was

of

addition to its main office in

associated
In

7

Communist satellite

tries of Eastern Europe.
What
is
the
reason

sibility over appropriations. When
larger amounts than can possibly

Defense budget where it will for-

-*-»

we

the

to

three-quarters of all aid funds for
military purposes and only one-

ever repose

rr

of

possible, told a
Congress that for-

Our aim should be to reduce the

Year

Street, members of the New York

i

eign

supervision

is

as

committee

tions.

Stock Exchange and other

leading
Exchanges, announce that Richard H. Bearasley is now associated
with them as a registered
representative.

spending

Executive Departments plead
larger foreign aid appropria-

for

(3)

Pa. —W.

Congressional

ten years more. This means $50
lobbyists for to $60 billion dollars more!

ing.

With W. H. Newbold
PHILADELPHIA,

constitutes

any reason given for it
Year after year, the President,
the
State
Department
and
the

realized

sents

^ 2 * S°lemnly prf«
begin a program of "aid"

„
that

powerful propaganda from the

President, his assistants and lob¬
byists. Unless thO people reassert

„

degree

of

$20,nod
19
tvmn+hc
past
12 months.
outstanding on June 30,

Shares

times

many

Western demonstration.

...

,

shareholders, shows assets of

,797,989, an
'mo' ^ rin„
501,162
during

very pos-

wll( orgies of fnendship.^nd anti-

attempt to justify the. two billion dollars!
only will curl our hair hut may
Secretary of "policy of panic"?
expenditure of this vast sum in
result in the tragedy of our losing
countries where we already have State Dulles, pleading for bigger
Why
must
our
policies
be it, as well as our shirts. If that
v-military aid programs. This, to a f°reign spending
and as little governed by crudg Russian propa- happens we will be unable to aid
18,-

Fund

to

tyye billion dollars but
sibly forever and for

insm-anceP(48%Vbanking (4o%]:"scheme.to

^femicaf fStfA '^

SnSXntoxS

cates economic aid. The sum of. lally tne: Ameiican taxpayers are
aie
$900,000,000 now demanded for stuck.not only for thrfee years and

ctock hold-

common

indimtric*?

Nearly

"<™ense support-largely dupli-

bonds and short-term

**

by

^

^

IT

where they Pl^_when they

affected.

cor-

now
•

en™

securities business. Of-

Robert P. Alford, pres-

Nathan

M.

Dicker,

vice-

presiaent; and George W. Jackson,
*

treasurer.

The Commercial and

Financial Chronicle

...

Thursday, July 25, 1957

(408)

The following

Indications of Current

latest week
week

Business Activity

or

or

statistical tabulations

month ended

Latest

AND

"
■ '
ingots and castings (net tons.)—

Equivalent to—
Steel

■

Crude

gallons each)

42

July 28

——

INSTITUTE:
oil and condensate output—dally average (bbls. ot

AMERICAN PETROLEUM

Crude

___________July 12

_

output (bbls.)____——

Gasoline

output (bbls.)
Distillate fuel oil output

July 12

—«*;

Ago

*{ujy \2

—-——

July 12
July 12
July 12

Kerosene

(bbls.)

in

or,

of quotations,

cases

Ago
17.0

84.0

*79.3

*2,030.000

of that date:;

ACCEPTANCES

FEDERAL

—

Imports
Exports

-

Year

Month

Ago

$227,394,000

$264,465,000

501,029,000

251,236,000

15,111,000

15,061.000

12,334.000
21.780,000

OUT¬

RESERVE

BANK

of June 29:

,

——

Previous

$219,798,000
501,593,000

DOLLAR

OF NEW YORK—As

419,000

2,150,000

are as

Month
BANKERS'

STANDING

§2,079,000

either for the

are

Latest

.

stills—daily average (bbls.)

to

runs

....

Week

that date,

on

Year

581.2

July 28

—

,

Month

Week

STEEL INSTITUTE*.
Indicated steel operations (percent ol capacity)—.
IRON

AMERICAN

Previous

production and other figures for th«

cover

Dates shown in first column

month available.

_

6,882,050

6,952,000

7,294,050

7,083,950

Domestic

<7,972,000

7,840,000

7,127,000

8,028,000

Domestic warehouse credits—

43,264.000

58,008,000

26,861.000

25,876.000

27,254,000

27,196,000

Dollar

21,459,000

5,259.000

8,924,000

177,700.000

177,004.000

125,297,000

$978,925,000

$933,755,000

$684,036,000

179

205

1,752,000

1,743.000

1,722.000

12,446,000

11,846,000

exchange

Based

2,265.000

13,000,000

12,606.000

shipments

—

goods

on

______

—

stored

shipped

and

between

foreign countries

7,739.000

7,730,000

7,645,000

7,893,000

181,973,000

185,920,000

191,317.000

178,366,000

29,253,000

28,597.000

26,187,000

27,415,000

125.564.000

119.592.000

106,171,000

104,521,000

47,020,000

46,248,000

42,870,000

40,926,000

691,991

535,334

746,125

619.988

481,118

523,987

612,560

18

$386,363,000

$325,465,000

$370,829,000

18
18

202,280,000

111,090.000

184,083,000

214,375,000

185,157,000

157,068.000

Wholesale liabilities

18
Ju]y 18

141.904,000

124,359,000

136,014,000

121.059,000

Retail

42,179,300

90,016,000

49,143,000

36,009,000

—July 13
Pennsylvania
July 13
DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1941-49 AVERAGE = 100 —
July 13

7,500.000

1,500.000

10,335,000

7,306,000

77,000

69,000

612,000

441,000

Residual fuel oil output (bbls.)

terminals, In transit, In pipe linesunfinished gasoline (bbls.) at—
—■— July 12

Stocks at refineries, bulk

and

Finished

(bbls.) at

Kerosene

Distillate fuel oil (bbls.) at———
Residual fuel oil (bbls.) at

Jujy }2

•

——

———

—July 12

.

July 12

■

.

,

cars).——
.—July 13
freight received from connections (no. of cars'—-July 13
freight loaded (number of

Revenue
Revenue

CONSTRUCTION

ENGINEERING

construction

Private

Public construction

—

_____—

__

and municipal

State

Federal

OUTPUT

COAL

•

■

lignite (tons)
anthracite (tons)—

—

185,672.000

(COMMERCIAL AND

BRADSTREET,

INC

129

99

July 20

12,306,000

12,337,000

July 18

266

256

INDUSTRIAL)

241

;:

'

5.967c

5.670c
S64.56

$54.50

$56.17

$46.50

28.750c

28.775c

31.100c

39.600C

26.900c

27.350c

28.775c

35.175c

,

and

at

in

millions

14.000c

16.000c

Total consumer

13.800c

15.800c

Instalment

10.500c

11.500c

14.U00C

Automobile

10.000c

11.000c

13.500c

25 °nOc

?4 OOflc

Repairs and

96.750c

98.250c

96.000c

Single

93.69

93.23

103.97

Charge accounts

96.54

96.85

107.80

94.56

95.77

92.50

93.23

94.41

103.80

85.59

99.04

104.31

93.08

93.52

93.23

105.34

3.69

3.61

3.72

3.00

4.28

Jujy 23

UCTS—DEPT.

Stocks

Stocks

3.40

4.19

4.11

3.52

Refined

4.66

3.81

4.39

4.28

3.60

Stocks

4.09

3.49

4.17

4.19

3.43

Consumption

428.3

422.6

408.6

238,939

254.633

220.607

158,025

287,444

202,972

54

94

70

488,517

446,373

419,664

528.096

110.21

110.22

110.22

103.97

227,670

277,620

219,690

1,134,930

1,228.100

1,043,990

Stocks

253.850

246,100

June 29

„

211,520

Produced

Total

248,190

288,900

234,320

'452,091

562,635

371,930

465,644

84,090

93,460

102,450

80.650

445.372

641.606

387,990

483.273

Railroads

529.462

735,066

490.440

563,923

Utilities

June 29
June 29

2.005,501

2,360.575
391,380

1,832,440
337,940

1.915,064

340,960

—June 29

1.799,292

2.138.306

1,650,500

June 29

2,140,252

2,529,686

1,988,440

2,028,393

of members—
—

Odd-lot

sales

Number

SPECIALISTS

AND

SECURITIES

by

dealers

ON

EXCHANGE

N.

Y.

278,760

887,430

8,895

7.490
879.940

$47,024,644

$57,518,106

$44,688,041

ACCOUNT

MEMBERS

ON THE N.

Y.

207,870

297,550

237.090

253.030

207,870

297~550

23~;ot;0

253,030

4.84

4.77

4.41

2.97

2.91

3.19*

4.05

4.05

4.01

$115,813,200

$313,420,450

$239,162,900

Exports

$1,862,200

$2,142,700

$1, 511,700

Imports

1,117,500

1,130,300

901,100

$278,000,000

$278,000,000

$281, 000.000

270,527,171

*•"
275.233,787

272, 750.813

107,137

103,223

LABOR

—

536.590

.

469.070

354.260

349.540

=

SERIES

Farm

—

U.

S.

DEPT.

405,140

465,170

428,110

10.968.610

8.802,590

9.194,310

9,876.960

11,434.380

9.230,700

9.544.170

MARKET
S.

U.

S.

GOVT,

Total

92.7

SI.5

90.7

EXPORTS

I

CENSUS

OF

IMPORTS

AND

Month

—

of

April

STATUTORY

LIMITATION

DEBT

(000's omitted

30

that

amount

may

be

»:

outstanding

time..

Outstanding—
Total gross public debt
obligations

not

owned

by

the

'

73.888

*106.*4

105.2

102.4

97.1

92.6

gations not

face

*125.4

125.3

121.3

July 16
July 16

125.4

114.0

UNITED

STATES

barrels

of

463.485

$274,889,417

$272.361,21G

3,110,582

8,638,783

$270,634,309

GROSS

$275,337,011

$272,824,702

5,589,952

DEBT

GUARANTEED—(000's
As

of

June

General

§Based on new annual capacity of 133,495.150 tons
Bs of Jan.
1, 1957, as agaiqst Jan. 1, 1956 basis of 128,363,090 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan., IPrirr.e Western Zinc sold on delivered basis at centers where freight'from East St. Louis exceeds
one-half cent a pound.
;
* i r
1,154,000

outstandings
amount of obligations,

447.594

7,811,678

total

$275,337,011

445,988
$270,188,321

outstanding public debt obli¬
subject to debt limitation

5.839.874

6.546,183

$265,044,357

$269,497,137

$266, 278.519

$272,824,702

issuable

ijnder above authority

81.2

Meats

117.3

$270,634,309

obligations
Deduct—other

'

public debt and guaranteed

90.3

107.2
99.2




June:

I

of June

face
any

Ea lance
*117.7

118.0

July 16
July 16

^Includes

DI¬

SECURITIES

GUARANTEED

of

IN

3.82

omitted):

Grand

July 16

foods

figure.

TRANSACTIONS

A.—Month

STATES

(000's

OF

100):

products

"Revised

(24 »

1

AND

U.

349,860

9.471.820

All commodities other then farm and foods

,

Tel.)

tlOt

Treasury

June 29

commodities

Processed

Tel.

Amer.

(199)

Guaranteed

June 29

(1947-49

:

inch

(15i

Commodity Group—
All

1

purchases

at

June 29
;

NEW

OF

June:

_i

(SHARES):

Short sales

PRICES,

of

5.35

—As

STOCK

Total sales
WHOLESALE

YIELD

AVERAGE

STOCKS—Month

Total grcss

sales

1,566

4.68.

round-lot sales—

Other

613

933

3.82

ROUND-LOT STOCK TRANSACTIONS
OF

3.760

835

1,347

_

$43,198,565

June 29

T

SALES

____

.

4.69

UNITED

869.987

dealers—

STOCK

AND

—

6.34

125

TREASURY

5,513

1.090,387

June 29

ROUND-LOT

2.738

582

BUREAU
1,099.282

4,958

June 29

EXCHANGE

(a)

(a)

1.973

....

(1,000 pounds)—

3.79

875.500

918.676

913,718

June 29

Round-lot purchases by
Number of shares

584

231

373

971,034

$50,851,492

sales

Other

FOR

1.040.077
$58,590,113

sales

Short

Total

1,321.026

$71,218,077

sales by dealers—
of shares—Total sales

Number

TOTAL

1,243.296
$67,174,539

June 29
June 29
June 29
June 29

total sales
:_

Dollar value
Round-lot

658

4.96

Net

other sales

Customers'

109,481

6.31

OF

June 29

short sales

76,314

88.480

(a)

...

_

__

Insurance

purchases by dealers (customers' sales)—

Customers'

84,940

(at

.

(not

RECT

June 29

Number of orders—Customers'

_

..

^

WEIGHTED

Average

STOCK

Dollar value
Odd-lot

.

..

_

COMMON

KM)

purchases)—t

(customers'

31.

-

COMMISSION:

shares

of

-

_

Industrials (125)

•TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

—

164.626-

bales)—

..

Shipped

Banks

purchases

DEALERS

70,958

216,921

1,749,633

sales

EXCHANGE

58,780

61.363

233,550

Total sales

LOT

60,474

60

.

Produced

12,000

221,550

MOODY'S

*

125,993

53,359

_

_

_

....

Stocks May 31

228.850

15,800

218,520

June 29
June 29

Other sales

135,760

75.372

67,855

— _

Shipped

20,300

——

sales

123,115

69,534

_

..

-

(1,000-lb.

May

268,600

purchases

Short

245,736

135,735

120,255

218,600

—

Produced

29.200

Total sales
Total

Stocks

June 29

Total round-lot transactions for account

125,619,000

279.436

51,325

__

May 31.

(tons)

Fiber

218,990

i

Short sales
Other

Hull

1,230.920

transactions initiated off the floor—

Other

112.797,000

73,338

_

(tons)
(running bales)—

Linters

June 29
June 29

.—

—

Total sales

384,109.000

90.323.000

100.139,000

.

(tons)

(tons)

June 29
June 29

sales

Other

r

1,263,680

277.876.000

74,543.000

98,247

May 31

Motes, Grabbots, etc.

Short sales
1

1,505.720

1,362,600

transactions initiated tm the floor—

74.437.000
91.144.000"

Hulls-

1,044.810

1,220.570

120,866,000

112,023

s

(tons)

Shipped

186,110

June 29
June 29
._

(tons>

Produced

1,248,990

96,151,000

293,212

—

Meal—

and

Shipped
1.544.090

99.742,000

106,940,000

.

(pounds)

Stocks May 31

June 29
June 29

—

Total purchases

(pounds) May 31
(pounds)

Shipped

1.307.310"

116,696,000

Gil-

Stocks

July J3
Jul-V }■}
July 13

Total sales
Other

.

Produced

A53.861

285,057

245,087.000

(pounds) May 31

4.19

Cake

19,474

257,523

53,744

81,446,000

Shipped (pounds)-

4.72

10.132

278.391

107,760.000

Produced (pounds t

Crude

427.7

,

11,115
319,714

79,033,000

3.29

4.02

Produced

,

2,197

Oil-

3.51

3.95

198.1.59

sales

3.701

224,145

_

4.19

4.20

July 23

stocks In which registered—

sales

Other

(tons)

May 31

3.97

^Jhly 19

purchases

Short

3,258

2,260

of

(tons)

4.10

BERS, EXCEPT
Total

3,536
3.687

2.280

PROD¬

COMMERCE—Month

OF

(tons)

'

REPORTER PRICE INDEX—

Transactions of specialists lu

9,156

Seed-

Received at mills

TRANSACTIONS FOR ACCOUNT OF MEM¬
ODD-LOT DEALERS AND SPECIALISTS:

MOUND-LOT

-

3,785

:i___:

SEED

COTTON

4.25

4.74

ASSOCIATION:

1941)

9,483

7.401

May:
Cotton

4.21

July 23

,

AND

4.42

Jujy 23

(tons)
Percentage of activity
Unfilled orders (tons) at end of period—

6,626

3.741

—

____

4.24

July 23
July 23

—

——_

4.01

Ju >'23
Ju y23
July 23

—

__

-

4.12

JuJy 22

——

PAINT AND DRUG
AVERAGE =

SEED

Crushed

Production

OIL

COTTON

102.46

94.71

—

MOODY'S COMMODITY INDEX

1,677

7,442

105.86

91.91

Group

1,760

9,806

Joans

Service credit

86.65

Group

7.671

7.535

.

loans-*-—

payment

85.98

92.35

85.85

—

14,059

7,731

-

_____

87.11

90.34

Baa

29,763

14,659

31:

modernization

95.92

93.23

A

$38,919

31.532

RE¬

credit

Othcr consumer goods

86.32

89.92

Aaa

$41,015

31,901

1,783

term

__

Personal loans

02.93

Aa

128,617

SERIES—Esti¬

_

25.000c

—July 23

UATIONAL PAPERBOARD
Orders received (tons)

May

credit

96.000c

YIELD DAILY AVERAGES:

Government Bonds

597,135

341,285

$41,707

FEDERAL

THE

credit

10.000c

y 23

Group

895,828
725,752

712.252

■

J»ly 23
*!u!y i??

Average corporate

OF

of

as

14.000c
13.800c

92.91

Group

Utilities

$1,621,580

803,194

1.053,537

145,403

___

intermediate

and

25.000c

—-July 23
— July 23

Group

Industrials

$1,856,731

685.777

Noninstalment credit

Baa"—"——"———————

Public

3,588,000
$43,013,000

831.180

_

SYSTEM—REVISED

short

July 23

Group

4,728,000

$52,552,000

OUTSTANDING—BOARD

GOVERNORS

mated

10.500c

Aa

Railroad

8,598,000

730.187

—

;

94.26

U. S.

7,331,000

12,812,000

10,820.000

of

:

-

__

■.

CREDIT

13.800c

July 23

BOND

$10,684,000

6,430.000
15,686.000

EN¬

—

Month

—

municipal

14.000c

—July 17
July 17
July 17
July 17
July 17

at

Aaa

Industrials

$14,888,000

7,156.000

$1,561,367

CONSTRUCTION

—:

CONSUMER
OF

July 17
—July 17

—

DAILY AVERAGES:
U. S, Government Bonds
;
Average corporate
————

MOODY'S

$12,966,000

$60.61

5.967c
$64.95

MOODY'S BOND PRICES

Utilities

1.105

14.852

construction

Federal

5.179c

$64.76

.

July 17

—

-

——*

(delivered) at—
Zinc (East St. Louis) at
Aluminum (primary pig. 99% ) at—

Public

93

1.200

3,551.000

NEWS-RECORD

construction

Public

223

$54.17

July 16

fZinc

Railroad

82

1.084

$51,454,000

___.

(000's omitted):
Total U. S. construction

SERVE

(New York)

163

10,066.000

liabilities

ENGINEERING

State

refinery

tin

181

17,715,000

liabilities

Private

DUN &

—
——

—

—

at__—
Ekport refinery at——
Lead (New York) at

Straits

_____________

liabilities

GINEERING

Electrolytic copper—

Louis)

Total

CIVIL

—

______________________

liabilities

Construction

115
551

93

—

liabilities

132

600

164

,

___

Manufacturers'

11,125,000

ton)——
———————July 10
Scrap steel (per gross ton)
July 16
METAL PRICES (E. & M. J. QUOTATIONS):

(St.

number

Total

234,219.000

94

Pig iron (per gross

Lead

,

183

95

553

-___

—..1——______—

_____

June

COMPOSITE PRICES:
Finished steel (per lb.)—

Domestic

—

number

number

Construction number

$391,347,000

11,964,000

AGE

IRON

484,050

104

ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)

EDISON

FAILURES

Retail

BRADSTREET,

June:

Commercial service

BUREAU OF MINES):

(U. S.

Bituminous coal and

of

&

Commercial service number
1r>

—July
July
—-———July
—July

construction

S.

U.

INC,—Month

Manufacturing number

ENGINEERING

—

NEWS-RECORD:
Total

._

FAILURES—DUN

Wholesale

ASSOCIATION OF AMERICAN RAILROADS:

CIVIL

Total

BUSINESS

30

funds

DIRECT

AND'

omitted»:

balances

foreign crude runs.

Net

debt

Computed
(a)

__j

annual

Not given to

rate

:

2.730%-

•

2 746%

avoid disclosure of figures for individual companies.

2.576%

"Volume.186

Number 5658

.

.

.

The Commercial and Financial Chronicle

Securities

Now

★ Abbott
Laboratories, North Chicago, III.
July 18 liled 800 participations in the
company's Stock
Retirement Plan, together with
32,000 common shares
which may be
acquired pursuant thereto.
All America
Expansion Corp., Pasadena, Calif.
May 3 filed 184,000 shares of common
stock, of which
02,000 shares are to be offered to public and 92,000 shares
issued to promoters.
Price—To public, $1 per share; no

proceeds from sale to promoters. Proceeds—For
general
corporate purposes.
Business—Purchase and resale of
oil fruits grown in Brazil
and other countries. Under¬

writer—None.
President.
★

LeRoy R. Haynes, of Pasadena, Calif., is

Paper Corp., Chicago. III.
July 15 filed 21,000 shares of common stock
(par $8) to
be offered in
exchange for outstanding common stock
of
Allied-Albany Paper Corp. on the basis of 5/22nd of
share of Allied stock for
each, share of Allied-Albany
stock; offer to expire on Sept. 6.
a

Alsco, Inc., Akron, Ohio
June 28 filed
200,000 shares of common stock (par $1).
Price—-To be supplied by amendment. Proceeds — For

expansion,

repayment of loans arid for working capital.

Underwriter-—To be

named

by amendment.

★ Alumjnum Co. of America
July 24 filed $30,000,000 of interests in the
compariv's
Savings Plan for Salaried Employees, together with
300,000 shares of common stock which
may be acquired
thereto.

pursuant

American income f
und, inc., New York
>
May 24 filed 500,000 shares of capital stock
(par $1).

Price—At

market.

Proceeds—For

writer—None.,Burton
ment Adviser

—

York.

H.

Securities
.

•

investment.

Under¬

is President.

Jackson

Invest¬

Cycle Research Corp., New

•

American Provident investors
Corp.
Feb. 15 filed 50,000,000 shares of
common stock (par one
cent).'Price—-$2 per share. Proceeds -— For working
capital and general corporate purposes.
Tex.

Office—Dallas,

Underwriter—Peoples

Securities

Co., J. D. Grey,
of New
Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
American Trailer
Co., Washington, D. C.
July 11 (letter of notification) $120,000 of
10-year 6%
first mortgage bonds
(in denominations of $1,000 each),
120 warrants for

mon

common

stock and

stock

1,500 shares of com¬
has detachable

(no par). Each $1,000 bond
warrants tor 10 common shares at
$15

per

share exercis¬

able at any time
through June 30, 1959. Price—Of bonds,
at par. Proceeds
For construction and
improvements,
payment of debts and
working capital. Office—5020 Wis¬
—

consin

&

Ave., Washington,
Coe, Washington, D. C.

D.

C.

1958.
Price—$10,000 per unit. Proceeds—To ac¬
quire, develop and operate oil and gas leaseholds; and for
Underwriter none; sales to be

through corporation and APA, Inc., its subsidiary.

^Associates Investment Co. (8/1)
July 24 filed $50,000,000 of senior debentures due Aug.
1, 1977. Price—To be supplied by amendment. Proceeds
—For

&

it Casware, Inc.
July 17 (letter of notification) $150,000 of 7% convertible
sinking fund debentures due July 1, 1962 and 150,000
shares

working capital, etc.

Underwriter—Salomon Bros.

Hutzler, New York.
-Bankers Fire & Marine Insurance Co.

—

—

312 N. 23rd

St., Birmingham 3, Ala.

Underwriter—None.
Bonanza Oil & Mine
Corp., Sutherlin, Ore. ;
(letter of notification) 71,710 shares of common
(par 10 cents).
Price — 75 cents per share.
Pro¬

Feb. 11

ceeds—To go to
selling stockholder.
Friedman & Co., Inc., New

Underwriter—L. D.

York, N. Y.

C & D

mon

28

Batteries, Inc.
(letter of notification) 14,000 shares of

'*-•

—

For

machinery, equipment, inventories and
Office
Washington and Cherry Sts.,

Conshohocken, Pa.

—

Underwriter—None.

Calidyne Corp., Winchester, Mass.
May 1 filed $1,250,000 of Limited Partnership Interests to
be offered first to
present limited partners at the rate of
one $1,000 unit for each
$1,000 of his present

then

to

investment;

public.

construct

Price—$1,000 per unit. Proceeds — To
plant; to purchase machinery and equipment;

and to reduce outstanding demand notes. Business—Pro¬
duces electro-djmamic shaker and other vibration
test

equipment.

Underwriter—None. Robert C. Lewis, Philip
C. Efromson and Thomas
Gouzoula, all of Winchester,
Mass., are the general partners of this Massachusetts
Limited Partnership.
Cameron

Industries, Inc., New York (8/2)
filed 300,000 shares of common stock
(par 10
Price—$1 per share. Proceeds—For exploration
and development
program.
Underwriter—R. G. Worth &
Co., Inc., New York.
June

cents)

to

be

offered

Second

National

Bank, Bldg., "Wilkes-

Underwriter—None.

Central

Telephone Co.,

Lincoln,

Neb.

(8/15)

properties

and

to

make

vestments in stock of subsidiaries.

advances

to

in¬

and

Underwriters—Paine,

Webber," Jackson & Curtis, New York; and Loewi & Co.,
Milwaukee, Wis.
Charter Oil Co. Ltd.
(Canada (8/1)
July 11 filed $2,250,000 of 15-year subordinated convert¬
ible debentures due Aug. 1, 1972. Price—To be supplied
by amendment. Proceeds — To repay bank loans, for
exploration and development of properties and for gen¬
eral corporate jmrposes.
Underwriters — Lehman Bro¬
thers and Bear, Stearns & Co., both of New
York, to

handle

in

sales

the

United

States; part to

be

sold

in

Canada through Canadian underwriters.
Chess Uranium Corp.
(8/20)
May 14 (letter of notification) 600,000 shares of common
stock
(par $1—Canadian). Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
.

fice—5616 Park Ave., Montreal, Canada. Underwriter—
Jean R. Veditz Co., Inc., 160
Broadway, New York.

Coastal Chemical Corp., Yazoo City, Miss.
May 1 filed 150,000 shares of class C common stock to
be offered for sale to farmers and other users of fertilizer
materials.

Price—At

($25 per share). Proceeds—
construct and operate facilities for manufacture of
anhydrous ammonia. Underwriter—Mississippi Chemical
par

To

Corp., Yazoo City, Miss.
Colonial Aircraft Corp., Sanford, Me.
July 5 filed 248,132 shares of common stock (par 100).
Price—At market.
Proceeds—To selling stockholders.

Underwriter—Glick

&

Co., Inc., New York.

Comico

Corp., Memphis, Tenn. (8/1)
May 2 filed 750,000 shares of common stock. Price—$2
per share. Proceeds—To construct mill; for payment on
mining leases and royalty agreement. Underwriter—
Southeastern Securities Corp., New York.
Consolidated Fenimore Iron Mines, Ltd.
stock

and

notification) 150,000 shares of common
Price—At market (closing price on To¬
as of June 14, 1957 was $1.82 bid

(par $7).

ronto Stock

Exchange

$1.85 asked, per share). Proceeds—For mining ex¬
Office—c/o Roy Peers, 9 De Casson Rd., Mon¬

penses.

treal, Canada. Underwriters—Thomason, Kernaghan &
Co., Ltd., Toronto, Canada, and R. P. Mills & Co., Ltd.,

Montreal, Canada.

(par $1).

7

cents).




extended.

and

N.

Dealer-Managers

Spencer

Exchange

Agent

REVISED

Trask

Fidelity

—

—

Union

First

The

Co./ both

&

of

Trust

ISSUE

Boston

New

Co.,

York.

Newark,

J.

Florida

March
the

Trust, Pompano Beach, Fla.

filed

4

Trust.

acquire

850

certificates

Price—$1,000

by

purchase,

of

lease

beneficial

certificate.

per

or

interest

in

Proceeds—-To

otherwise, and

to

hold,

own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real
property.

Underwriter—N one.

Fluorspar Corp. of America
May 28 (letter of notification) 30,000 shares of common,
(par $1) to be offered for subscription by common
on

shares held.

Price—$8.50

the basis of

ing operations.
Ore.

one

per

Office—433

new

share.
S.

E.

share for each four

Proceeds—For min¬
74th

Ave., Portland.

Underwriter—None.

★ Fore.gn Inclusive Tour Experts, Inc.
July 12 (letter of notification) 585 shares of preferred
stock (par $500) and 585 shares of common stock
(par
10 cents) ot be offered in units of one share of each class*
of stock. Price—$500.10 per unit. Proceeds—For
corpo¬
rate revolving fund for charter arrangements for
groups
($250,000) and for working capital and other corporate
Office—223 East 74th St., New York 21, N. Y.

purposes.

Underwriter—None.

Frigikar Corp.
June
stock

6

(letter of notification)

(par

50

cents).

Price

9,000 shares of common
At market (estimated

—

$5.50 per share).

Proceeds—To go to Daniel D. DillingCochran St., Dallas, Texas.
Under¬
Investment Corp., San Antonio, Texas.

haini1 -Office-—1602
writer—Muir

Ge^al

ft Film

Corp., New York

Jan. 14 filed 426,988 shares ef common A stock (no par)
and 1,537,500 shares of common B stock (par $1). Pro¬
ceeds—To the Attorney General of the United States.

Underwriter^-To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton

Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
Glore, Forgan & Co. (jointly). Bids — Had beer*
scheduled to be received up to 3:45 p.m. (EDT) on May
13 at Room 654, 101 Indiana Ave., N. W., Washington 25,.
D. C., but bidding has been postponed.
and

General Automatics Corp., Atlanta, Ga.
May 23 (letter of notification) 100,000 shares of

common

stock

(par $1). Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and assem¬
bly of controls; and for other corporate purposes. Ad¬
dress—c/o Positronic

Atlanta,

Ga.

Corp., 2572 Ridgemore Road, N. W.y
Underwriters—Armstrong & Co., Atlanta,.

Ga.

'

.

,

General

Credit, Inc., Washington, D. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants
to purchase
160,000 shares of participating
preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—
For expansion and working capital. Underwriter—Nona
named.
Offering to be made through selected dealers.
Application is still pending with SEC.
General

Conticca International Corp., Chicago, III.
March 13 filed 558,100 shares of class A common stock

Price—$5

per

share.

Proceeds

—

To discharge

notes

current

unless

Corp.

PREVIOUS

ITEMS

stockholders

15 filed
$1,750,000 of convertible subordinated
debentures due July 1, 1972. Price—To be supplied by
amendment.
Proceeds—Together with other funds, to

purchase

AD DITION S

SINCE
•

37

stock

July

payable, including bank loans, and long
sum of approximately $1,030,000;
for new equipment; and for working capital.
Under¬
writers
Allen Shaw & Co., 405 Lexington Ave., New
York 17, N. Y.; and Shaw & Co., San Marino, Calif.

Parking, Inc.
/
:
(letter of notification) 240,000 shares of common
stock (par $1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬
poration and for working capital. Office—c/o Edwin
F. Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.
June 18

—

Continental
June
mon

Mineral

Resources, Inc.
(letter of notification) 300,000 shares of com¬
(par 10 cents). Price—$1 per share. Pro¬

11

stock

ceeds—For

mining expenses. Office—c/o Registrar &
Transfer Agent, Nevada Agency & Trust Co., Cheney
Bldg., Reno, Nev.
Underwriter—Birkenmayer & Co.,
Denver, Colo.
Continental Mines & Metals Corp., Paterson,

N.J.

April 24 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and

com¬

(par $10) to be offered for subscription by
stockholders and employees.
Price—$12.50 per share.

working capital.

50

$50 of debentures and 50 shares of common
Price—$100 per unit. Proceeds—For working cap¬

Office—700

Barre, Pa.

development of properties.

M. Lister &

stock

Proceeds

(par

in units of
stock.

stock

March

stock

common

term debt in the total

April 25 (letter of notification) 19,854 shares of common
stock (par $5) to be offered to stockholders of
record
May 30, 1957 on a basis of two new shares for each 11
shares held; rights to
expire July 30, 1957. Price—$11
per share. * Proceeds
To increase capital and
surplus
accounts.' Office

of

June 26 (letter of

gram

other corporate
purposes.

Registration

it Caramba Mokafe Corp. of America
July 12 (letter of notification) 120,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—For
machinery, equipment, inventory and working capital.
Office—701 Monroe St., Hoboken, N. J.
Underwriter—
Garden State
Securities, Hoboken, N. J.

Underwriter—Mackall

ir Apache Oil Corp.,
Minneapolis, Minn.
July 22 filed 200 participating units in
Apache Oil Pro¬

made

it IN DICATES

in

ital.

Allied

(409)

Underwriter

—

Leward

Co., Boston, Mass.

following outstanding securities on a share-for-share
basis, plus, in each case, cash equivalent to the redemp¬
tion premium for each such share offered in exchange:
5v2% and 6% cumulative preferred stocks of Durham

Telephone Co., the 6% cumulative preferred stock oC
Georgia Continental Telephone Co., and the 5V2% cumu¬
preferred stock of South Carolina Continental
Telephone Co. and of Southern Continental TelephoneCo. All shares not surrendered for exchange will be re¬
deemed in September, 1957.
lative

General Telephone

Cougar Mine Development Corp.
March

it General Telenhone Co. of the Southeast
July 18 filed 120,000 shares of.5.80%, cumulative pre¬
ferred stock (par $25) to be offered in exchange for the

15

(letter of notification) 560,000 shares of com¬
mon stock (par one cent).
Price — 50 cents per share.
Proceeds
For diamond drilling on company's lands,

Corp., New York

May 24 filed 1,480,787 shares of common stock (par $10)
and 170,000 shares of 5.28% convertible preferred stock

Continued

on

—

page

prospecting expenses, working capital and other corpor¬
ate purposes. .Office—83 Campfield St., Irvington. Ttf
J
Underwriter—Roth

&

Co., Maplewood, N. J. Offering—

Extra Results!

Expected this month (July).

Daybreak Uranium, Inc., Opportunity, Wash.
May 7 filed 631,925 shares of common stock (par 10
cents). Price — At market (approximately 53 cents per
share). Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash.
Federal

June 7

ing

offered

Life
on

Insurance

in

the

Co.

basis

of

Offer

will

holders of 90%

capital stock (par $4) be¬
shares of Colonial
America capital stock (par $10)

exchange

Insurance

Share.

Co.

filed 400,000 shares of
of

four

for

Federal

become

100,000

shares

effective

for

upon

of Colonial stock, or, at

each

Colonial

acceptance by

option of Fed¬
eral, acceptance by not less than 80% of the Colonial
shares.
Offer will continue to and including July 26,

Financial advertising in

and sells both the

the Chicago Tribune reaches

professional buyer and the general

public in multibillion dollar Mid America. For the full
story on how you can put the Tribune's circulation and
sales influence to most productive use with both investor
groups,

call the nearest Chicago Tribune office.

CCljicaoo CTribmic
America's most

tvidcly circulated market tabic pages

38

38

The

(410)

Continued

from

page

International

37

June

being offered in exchange for common and
of Peninsular Telephone Co. on the
1.3 shares of General common for each share

(par $50)
preferred
basis

of

stocks

and one-half share of General
preferred share for each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred. No exchange
of preferred stock will be made unless at least 80% of
the Peninsular preferred
stock
is exchanged.
Offer
of

Peninsular

common,

1<U Dealer-Manaffers—Paine, Web¬
Webster Securities

will expire on Aug.

ber, Jackson &*Curtis and Stone &c

Corp.

and

10

Washington, D. C.
June 28 (letter of notification) $150,000 of 10-year 6%

subordinate convertible debentures.
Price—At par (in
denominations of $100 each).
Proceeds—To discharge
short term obligations and for working capital. Office—
1022 18th St., N. W., Washington, D. C.
Underwriter —
Whitney & Co., Inc., Washington, D. C.
if Geonaufics,

July 18 (letter of notification) 10,000 shares of capital
stock (no par). Price — $1 per share. Proceeds — For
working capital. Office—1346 Connecticut Ave., N. W.,
Washington 6, D. C. Underwriter—None.

Georgia Casualty & Surety Co.
May 10 (letter of notification) 10,000 shares of common
stock (par $5) to be offered first to stockholders and
agents, then to the public. Price—$30 per share. Pro¬
ceeds
To expand and finance the company's regular
Ga.

Office—70 Fairlie

Underwriter—None.

Dan D.

St., N. W., Atlanta,
Dominey is President.

Getty Oil Co., Wilmington, Del.
17 filed 100,000 shares of common stock
be

offered

for

sale

from

time

time

to

on

(par $4)
the

units

in

to

buy

(par $1)

additional

354.420

offered

be

bac'«

Inc.

of

shares

one

of

common

three common

shares

holder tc
Proceeds
—To acquire stock of fire insurance unit and for general
unit.

per

Each

entitles

warrant

share at $2.75 per share.

one common

corporate purposes. Office — Englewood, Colo. Under¬
writer—American Underwriters, Inc., also of Englewood.
Colo.

Steamship & Salvage Co., Miami, Fla.
(letter of notification) 300,000 shares of com¬

stock (par 10

mon

Exchange. Certain private placements may
be made. Price—Either at the market or at a price not
lower than the bid price nor higher than the asking
price quoted on the Exchange at time of such offering.

of

—To

purchase

a

writer—Anderson

cents). Price—$1 per share. Proceeds
ship and for working capital. Under¬
Cook Co., Inc., Palm Beach, Fla.

if Lee Telephone Co., Martinsville, Va.

reduce short-term bank loans. Underwriter—None.

Finance Corp.,

Ardmore, Pa.
$250,000 of 6% renewable subordinated
debentures, due upon demand May 1, 1967, without de¬
mand May 1, 1972. Price—At par (in units of $100 and
$500 each). Proceeds—For working capital. Office—17
W. Lancaster Ave., Ardmore, Pa. Underwriters—Walnut
Securities Corp., Philadelphia, Pa.; B. Ray Robbins Co.,
New York; and Berry & Co.. Plainfield, N. J.
March

23 filed

Mascot
June 3

Mines, Inc., Kellogg, Idaho

(letter of notification)

stock.

Price—At

(11V2

par

800,000 shares of

cents

share).

per

common

Proceeds

Idaho.

•

July

filed

18

debentures due

tion

by

(J. Rav)

& Co.,

Inc.

(8/6)

$20,292,000 of convertible subordinated
Aug. 1, 1972, to be offered for subscrip¬
stockholders of record Aug. 6,

common

1957

011

Y.

New York, N.

Mercast Corp.,

shares of capital stock (par 10
cents) being offered for subscription by stockholders of
record July 18, 1957 on the basis of two new shares for
each three shares held; rights to expire on Aug. 2. Price
420,778

filed

24

June

Proceeds—For expansion program, to
Corp. and for working

outstanding notes to Atlas
capital. Underwriter—None.

repay

Co.

Merchants

•

(letter of notification) $300,000 of 6% converti¬
subordinate debentures due 1972 being offered to

June 10
ble

stockholders of record of July
basis of $125 of debentures for each
18 shares of stock held; rights to expire on Aug. 5, 1957.
Price—At par in units of $125 each and multiples thereof.
Proceeds—For working capital.
Office—300 East Pine
St., Hattiesburg, Miss.
Underwriter — Lewis & Co.,
preferred

and

1.957,

11,

the

on

Jackson, Miss.

Minneapolis-Honeywell Regulator Co.
of common stock (par $1.50)
being offered for subscription by common stockholders
of record July 16, 1957 at the rate of one share of new
for each 20 shares held; rights to expire on Aug. 1, 1957.
Price—$85 per share. Proceeds—For expansion program.
Underwriter—Eastman Dillon, Union Securities & Co.,

June 24 filed 331,237 shares

New York.

Co.

Mississippi Valley Portland Cement
Dec.

capital stock (no
subject to an offer of

26, 1956 filed 1,600,000 shares of

par) of which 708,511 shares are
Price—$3

rescission.

if McDermott

10 common

each

of New York.

Kidder, Peabody & Co., both

—'For

mining expenses. Office—Sidney Bldg., Kellogg,
Idaho, Malcolm C. Brown is President. Underwriter—

25, 1957

expire on Aug. 20. 1957. Price—±0
be supplied by amendment. Proceeds—For expansion of
enprauons.
Underwriters—Dominick & Dominick and

common

July 16 (letter of notification) 24,950 shares of common
((par $10).
Price—$12 per share.
Proceeds—To

stock

for

debentures

of

$100

Thursday. July

...

shares held; rights to

—$4.25 per share.

Isthmus

New

York Stock

Proceeds—To J. Paul

Investments,

Standard Securities Corp., Spokane, Wash., and Kellogg,

June
to

purchase

to

three warrants

Price—$3.75

purchase

—

line of business.

to

stock

Marion

Inc.

Insurance

118,140 shares of common stock

warrants

common

share and

May 21

Genie Craft Corp.,

filed

Commercial and Financial Chronicle

tion of plant, provide

Proceeds—For comple¬

share.

per

for general creditors and for work¬

Office—Jackson, Miss. Underwriter—None,

ing capital.

offering to be made through company's own agents.

Getty, President, who is the selling

stockholder. Underwriter—None.

Gibbs Automatic Moulding Corp.
May 22 filed $1,000,000 of 6% convertible debentures
due March 31, 1967.
Price—At par. Proceeds—To in¬
crease
company's activities and for working capital.
Office—Henderson, Ky, Underwriter—Cook Enterprise,
Inc., Ill S. 7th St., Terre Haute, Ind.

July 25
(Bids

Price—$34.74 per share. Proceeds—To repurchase or re¬
deem outstanding 6% cumulative preferred stock. Office
—Pennsylvania Station, New York 1, N. Y. Underwriter

Precision

EDT)

$6,000,000

&

(Albert

&

Co.,

July 30

Inc.)

National

Tea

(par 50

cents) to be offered for subscription by common stock¬
holders of Great Lakes Oil & Chemical Co. on basis of

Norfolk & Western Ry.
(Bids

exoloration

costs, improvements, expansion, etc.
Office
Los Angeles, Calif.
Underwriter
DempseyTegeler & Co., St. Louis, Mo.

August 1

Feb. 27 (tetter of notification)
100,000 shares of common
stock. Price—At par ($3 per share). Proceeds—For in¬

Underwriter—Benjamin

market.

Proceeds—For

investment.

Distrib¬

utor and Investment
Manager—Horace

(Lehman Brothers

Comico

Springfield, 111.
•
Ignacio Oil & Gas Co.,
Denver, Colo.
May 20 filed 650,000 shares of common stock
(par 50
cents). Price—$1 per share. Proceeds—For
drilling and
completion of test wells; for acquisition and
exploration
of additional
properties; and for working capital. Office

—1749 Pennsylvania St.. Denver
3, Colo.
None. W. Clay Meredith is

President.

August 2
Cameron

(R.

Underwriters—Lehman Brothers; Goldman, Sachs
Corp.; all of New York.

&

Worth

&

to

Co.,

Inc.)

Sanders

and

$300,000

', (Bids to

&

Associates, Inc

ment.

International Fidelity Insurance Co.
March 28 filed 100,000 shares
of common stock
for

subscriDtion by

(no par)
stockholders at the

rate of one new share for each
seven shares held.
Price
—To be supplied by
amendment.
Proceeds—For work¬

ing capital, etc.
Dallas, Texas.

Underwriter—Franklin Securities Co.,




(Bids

*

Debentures

Peabody

$60,000,000

Bond#

(Lehman

Brothers;
First

(Bids

to

be

Common
400.000

invited)

110,000 shares

(Wednesday)

$100,000,000

Boston

August 12
Walter

Columbia

and The

$25,000,000

/

v.

-Bonds or Preferred
to $50,000,000

Commonwealth Edison Co,

Bonds & Common

(Bids, to

Inc.)

$2,425,000

August 13

invited)

October 8* (Tuesday)

.

and Prescott, Shepard & Co.,

to. be

Debentures

Inc

System,

(Bids

.

(Monday)

(Jim) Corp

(Carl M. Loeb, Rhoades & Co.

Gas

$6,000,000

Corp.)

(Thursday)

October 3

Preferred

—

Sachs & Co.;

.Debentures

Telephone Co

Bell

Southwestern

sharej

(Tuesday)

October 1

Class A Common

Goldman,

$15,000,000

invited)

$20,292,000

Co.)

Indianapolis Power & Light Co

Preferred

& Light Co

Utah Power

Dominick

by

be

to

(Bids to.be invited)

August 7

•.

(Tuesday)

$8,000,000 to $10,000,000

invitpd)

be

be

.

invite^)

$25,000,000

(Tuesday)

October 15

vtv

Bonds

Indiana & Michigan Electric Co
(Bids 11 a.m. .EST) $20,000,000

(Tuesday)

'

________Bonds

Utah Power & Light Co

(Tuesday)

Kidder,

-

Northern Illinois Gas Co.______Bonds or

-Common

&

bfe .invited )

Bjds: to

September 24

stockholders—underwritten

common

Dominick

(

(Friday)

McDermott (J. Ray) & Co., Inc
(Offering

...

-

Northern States Power Co.
(Bids

.

Thompson

10

CDT)

a.m.

Products,

Bonds

(Minn.)

Debentures

(Offering to common stockholders—bids noon
'

IT,-

i.\

•

■

r

August 15
Central

Telephone

(Paine, Webber,

(Thursday)

Co..

Jackson

&

October 21

Consumers

-Debentures

Curtis

and

Loewi &

:

$1,750,000

Co.)

August 2G

v

(Tuesday)

~

EDT) $35,156,760

-

..

t

■

.

(Monday)

Bonds

Co.:.i___^-L—_

Power

*
Debentures

Co

Consumers; Power

common stockholders—underwritten by Smith,
Earney & Co. and McDonald & Co.) $19,729,500

(Wednesday)

16

October

$18,000,000

Inc

Co.;

International Duplex
Corp., San Francisco, Calif.
Dec. 21, 1956 filed
500,000 shares of common stock (par
one
cent). Price—$1 per share. Proceeds—To
equip and
establish five super launderettes
and for working cap¬
ital.
Underwriters—Names to be supplied by amend¬

offered

G.

Bonds
$20,000.000

be invited)

Bids, to

Public Service' Electric & Gas Co

$1,500,000

(Offering to

and The First Boston

be

Corp.)

Industries, Inc

Underwriter—

Statement effec¬

* Indianapolis Power & Light Co.
(8/7-8)
July 18 filed 60,000 shares of cumulative
preferred stock
(par $100). Price—To be
supplied by amendment. Pro¬
ceeds—To repay bank loans
and for new construction.

to

Securities

^

2.7-

Common

(Southeastern

$4,260,000

EDT)

Pacific Power & Light Co.;

$2,250,000

Bear, Stearns & Co.)

-

(Wednesday)
-Equipment Trust Ctfs.

•:>: •(BidsfJiobn

•

Debentures

and

CoJ-ij.—-.Debentures^

Norfolk & Western Ry

$50,000,000

Corp.

Mann Investors,
Inc., Des Moines, la., of which Charles F. Martin is also
President.
Office—216 E. Monroe St.,

tive July 15.

Debentures

__

Ilutzler)

(Kidder, Peabody & Co.)

] Horace Mann Fund, Inc., Springfield, III.
June 27 filed 100,000 shares of capital stock (par $1).
Price—At

&

August 6

Holy Land Import Corp., Houston, Texas

,

Bros.

(Tuesday)

EDT) $25,000,000

a.m.

September 18

/.

Charter Oil Co., Inc

—

etc.

(Thursday)

V(Bdd§: 11:3.0

*

*

•?; f

■

$40,000,000

invited)

Consolidated 'Natural' Gas

$4,320,000

Associates Investment Co

—

ventory, working capital,
& Co., Houston, Tex.

...Equipment Trust Ctfs.
EDT)

noon

be

to

;

Bonds

./September 17
.

one-fourth share of Natural Gas stock for each share of
Oil & Chemical stock. Price—$1.25
per share.
Proceeds

—For

(Wednesday)

-

"

Co

Electric

Philadelphia

$12,000,000

■

stock

'

(Thursday)'

September 12

Debentures
&< Co.)

Noyes

July 31

(Salomon

common

••

Debenture#

Co

(Bid? to.be invited >'$30,000,000

5

(Bids

July 15 filed 779,393 shares of

.

(Wednesday)

New Jersey Bqll Telephone

(Tuesday)

Co

(Hemphill,

Great Lakes Natural Gas Corp.

be invited v $50,000,000

to

September 11

/

'

—None.

if Gold Medal Studios, Inc.
July 19 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
For capital improvements and to exercise option to ac¬
quire property. Office—807 East 175th St., Bronx, New
York City. Underwriter—None.

^

Bonds

(Bids

*

'.

.....Common

$206,250

~

Power, Co.

Duke

Co., Inc.) $290,380

Seminole Oil & Gas Corp.......

"

.

(Tuesday)

September 10

(Friday).
Debentures

...Bonds

Gas & Electric Co
.(Bids to be invited) $15,000,000

.

Corp

Boland

(Wednesday)

September 4
Louisville

Equip. Trust Ctfs.

noon

Transformer
(John R.

CALENDAR

(Thursday)

Southern Pacific Co

July 26
if Gibbs & Hill. Inc.
July 10 (letter of notification) 1,050 shares of common
stock (par $5) to be offered about July 24 for subscrip¬
tion by selected officers, employees and stockholders.

ISSUE

NEW

(Bids-1130 a.m. EDT)

$35,000,000

October 22 (Tuesday)

y

Consolidated Edison Co. of New York, Inc..-Bonds
"

Chess

Uranium

Corp

(Jean R.

Common

Veditz Co.,

Inc.)

EDT) $50,000,000

a.m.

October 29

Debentures
-

invited)

(Bids 11

$300,000

Pacific Telephone & Telegraph Co
(Bids to be

-"

$90,000,000

(Tuesday)

American Telephone & Telegraph Co.—Debentures
;
./ (Bids, to be .invited) $250,000,000
-

August 27

(Tuesday)

November

El Paso Natural Gas Co.__Debentures & Preferred
(White,

Weld

&

Co.)

$70,000,000

to

be

invited)

September 3

Bonds

$40,000,000

19

ami.

Bonds
EST)

(Offering to stockholders—no underwriting)

$28,000,000

Preferred

Ohio Power Co.i_L.w_i;
11

a.m.

EST)

December 3

Common

(Tuesday)

L._i_.

(Bids 11

-(Bids

(Tuesday)

Cincinnati & Suburban Telephone Co

Co.

Power
•S

Southern California Edison Co
(Bids

Ohio

$7,000,000

-

(Tuesday)

Virginia Electric & Power Co

.Bonds

'

.

Volume

186

Number

5658

.

.

The Commercial and Financial Chronicle

,

Mon-O-Co Oil Corp., Billings, Mont.
'
July 11 filed 22,474 shares of class A common stock and
539,376 shares of class B common stock to be offered in
units of one class A share and 24 class B shares, which
shall not be separately transferable until May i, 1960. Of
the units, 14,474 are to be issued in exchange for or con¬
version of working interests in joint lease acreage oper¬
ations, etc., and 8,000 are to be offered for subscription
by existing stockholders, on a pro rata basis. Price—$75

Oxford County Telephone & Telegraph Co.
April 18 (letter of notification) 6,000 snares oi common
to present stockholders on the basis
of preemptive rights, thereafter to the public.
Price—

<

unit.

per

Proceeds—For

development

Underwriter—None. :

costs, etc.

Monticello Associates,

stock to be offered
'

At par ($5 per share).
change at Turner from

matic

•

Inc.
For

share.

including

Mount Wilson Mines, Inc., Telluride, Colo.
24, filed 400.000 shares of class A common

June

•

"

mill:

Underwriter
Colo.r ^ :c

•'

•<4 Mountain States Telephone & Telegraph Co.
June

5

filed .584,176

shares of capital stock

the basis of

on

shares*' heki; rights
par

($)0d

per

one

to expire-

new

on

July 31;

?

'

-•

Sponsor—Ira

■"..*"/)

stock1 (par

'-'•JV

$10-Canadian) to be offered in units

of $250 of debentures

$500

unit.

per

ment and for

and

25 preference* shares.

acquire1 plant and equip¬
working capital. Business—Entertainment.

Office—Room 2200, 25

Mutual

Price—

Proceeds—-To

•

King Street West, Toronto, Out.,

[Canada.' Underwriter—None.

"

-.

Investment Trust for Profit

Sharing-

Retirement Plans, Inc., Richmond, Va.
19 filed 50,000 shares of capital stock (par
$1),
to be offered trustees of profit sharing retirement
plans.

-T* Coleman Andrews.

Office

5001

*—

A: v v

"*

.

V

:7

,
•

Mutual

Investors

Corp. of New York

May 17 (letter of notification) 295,000 shares of
stock

•

(par 10 cents).

Price—$1

per

share.

Power &

shares

Light Co.

common

per

(par $6.50)

held;
share.

;

rights to expire on August 1.
Proceeds—For construction pro-

Securities & Co., Bear, Stearns & Co. and Dean
(jointly). • ; *
.

stock

par)

•
Pepsi-Cola Mokan Bottlers, Inc.
^
April 11 (letter of notification) 60,000 shares of common
stock (par 50 cents).
Price—$5 per share. Proceeds—
For general funds of the
company.
Office—207 West
8th St., Coffeyville, Kan
Underwriter — G. F Church
& Co., St. Louis, Mo.
Offering—Expected today (July
25).

5

filed

writer

market.

shares

of

Proceeds—For

(par $1).

investment.

Under-

Plymouth Bond & Share Corp., Miami, Fla.
Joseph A. Ray vis, also of Miami, is President.
• Precision Transformer Corp. (7/26)
June 12 (letter of notification) $294,000 of 6%
of

in

units

at

$510

of

stock

debentures

common

of

at

June

(par 20

of debentures

$500

unit,

per

due

stock

$102

or
per

1,

1967

cents)

and 50

10-year

and

Harland W.

National Tea

Co., Chicago, III. (7/30.) \
?
28 filed $12,000,000 sinking fund debentures due
Aug. 1,' 1977:: Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and other indebtedness and

June

for

other

corporate

Underwriter—Hemphill,

purposes.

•

to

be

offered

shares of stock

$100 of debentures and 10 shares
unit. Proceeds — To repay out¬

Brunswick

of)

rill

be

advanced

Commission

to
to

and

The

New

repay

bank

Underwriter—Halsey, Stuart & Co. Inc., New York
Chicago. Offering—Indefinitely postponed.; "

Northern States Power Co. (Minn.)
(8/13)
July 3 filed $18,000,000 of first mortgage bonds due Aug.
1, 1987.
Proceeds—For construction program. ' Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co." Inc.; Merrill Lynch,

.

Pierce, Fenner and Beane, Kidder,'Peabody & Co. and
White, Weld & Co. (jointly); Lehman Brothers arid
Riter & Co. (jointly); The First Boston Corp. arid Blyth
&

Co., Inc.

(jointly); Equitable Securities Corp.; Kuhn,
Bids—-Expected
to be received up to 10 a.m. (CDT) on Aug. 13.
Loeb & Co.; Harriman Ripley & Co. Inc.

,

Oil

Ventures, Inc.

May 13 (letter of notification) 2,500,000 shares of com¬
mon
stock*
Price—At par ($10 cents per share). Proceeds—For development of oil and gas properties. Office
—725 Judge Bldg., Salt Lake City, Utah. Underwriter—
Mid America Securities, Inc. of Utah, Salt Lake
City,
"Utah.
• /
'Y * • ;

,

'

★ Old American Life Co., Seattle, Wash.
July 22 filed 15,825 shares of class A stock (par $10) and
3,165 shares of common stock (par $10) to be offered in
units

of

one

common

share

and

three

class

A

shares.

"

Price—$260
and

per

unit.

Proceeds

other corporate purposes.




State¬

Inc.;

for

and

vision releases.

working

capital.

Underwriter—E.

Business—Tele¬

L. Aaron

& Co., New

Offering—Date indefinite.

York.

Fund, Inc., New York
shares of common stock (par $1).

—
For working capital
Underwriter—None.
r.

Proceeds—For investment.

Under¬

D. John Heyman of New York

is Presi¬

market.

writer—None.

Investment Advisor—Resource Fund Management

Proceeds—For working capital. Office—2621
2nd Ave., Miami, Fla.
Underwriter—Floyd
Cerf, Jr. Co., Chicago, 111.

• Seattle-Toledo Oil Co., Inc.
(letter of notification) 1,000,000 shares of com¬
stock (par 10 cents). Price — 25 cents per share.
Proceeds — For oil development expenses.
Office—714
Securities Bldg., Seattle 1, Wash. Underwriter—None.

July 17
mon

•

Seminole Oil & Gas Corp.,

mon

24

St. Louis, Mo.
March 27 filed 1,250 shares of class C cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Underwriter
Yates, Heitner & Woods, St. Louis, Mo.
Offering—Expected in the near future.
—

St. Paul

Fire & Marine

Insurance Co.

shares of capital stock (par $6.25)
exchange for the outstanding capital
stock of Western Life Insurance Co., Helena, Mont., at
June 25 filed 417,000

rate

offered

of

1.39

in

shares of

Western stock.

St.

Paul

stock for each share of

The offer is condiitoned upon acceptance

by holders of not less than 240,000 shares (80%) of the
outstanding Western stock. Exchange Agent—First Na¬
tional Bank & Trust
•

St.

Co., Helena, Mont.

'
April 1 filed 850,000 shares of common stock (par $5)
being offered in exchange for common stock of St. Paul
&

Tulsa, Otda.

(7/26)

(letter of notification)

275,000 shares of com¬
Price—75 cents per share.

stock

Proceeds

(par five cents).
For development of oil and

—

Underwriter—Albert & Co.,

gas

properties.

Inc., New York, N. Y.

• Sire Plan, Inc., New York
July 18 filed $4,000,000 of nine-month 8% funding notes.
Price—At par (in denominations of $100 each). Proceeds
—For working capital and other corporate purposes.
Underwriter—Sire Plan Portfolios, Inc., New York.
Southeastern

Fund, Columbia, S. C.
$2,000,000 of 6V2% sinking fund subordi¬
nated debentures due June 15, 1972, of which $1,500,000
principal amount are being offered for subscription by
stockholders; rights to expire on Aug. 1. The remaining
June

3

filed

$500,000 principal amount, plus any unsubscribed de¬
bentures, to be publicly offered. Price—To stockholders,
95% of principal amount; and to public, at 100%. Pro¬
ceeds—For working capitla. Underwriters—Smith, Clanton & Co., Greensboro, N. C.; Powell & Co., Fayetteville,
N. C.; and Frank

S. Smith & Co., Inc., Columbia, S. C.

Industrial

Southern

Corp., Jacksonville, Fla.
(letter of notification) 150,000 shares of com¬
(par $1). Price—$2 per share. Proceeds—To
added to the general funds of the company. Under¬

June
mon

be

25

stock

writer

Pierce, Carrison, Wulbern, Inc., Jacksonville,

—

Fla.

Inc.,

N. J.

May 10 filed 100,000 shares of common stock (par $1)
to be offered in connection with merger into this Fund

Regis Paper Co.

Tacoma

Lumber

Co.

on

the

St. Regis stock for each share
The offer,

of Fund

of Fortune,

Inc., Fortune II, Inc., Fortune III,
IV, Inc. Underwriter — William Allen
Co., East Orange, N. J. Offering—Expected

Inc. and Fortune

early in July.
Stratford
June

(John G.)

Film Corp.

27

(letter of notification) 199,999 shares of com¬
mon stock
(par 25 cents). Price—$1.50 per share. Pro¬
ceeds—For production of films, working capital, etc.
Office—113 West 57th St., New York.
Underwriter —
Joseph Mandell Co., New York.

Strato-Missiles, Inc.
(letter of notification) 300,000 shares of common

(par 10 cents). Price—$1 per share. Proceeds—To
develop Hatfield propulsion system, and other projects;
for purchase of additional facilities and for working
capital.
Business—To produce machinery and equip¬
ment.
Office—70 East 45th St., New York, N. Y. Un¬

which will expire

basis

of

56%

New York.

it Super Food Services, Inc.
July 22 (letter of notification) 55,000 shares of class A
stock (par $1) and 27,500 shares of class B stock (par
one cent)
to be offered in units of one class A share
and one-half class B share. Price—$5.10 per unit. Pro¬
ceeds—For working capital,

etc. Office—c/o Donald B.
Vice-President, 400 Walnut Ave., Bronx, New
York, N. Y. Underwriter — Wm. T. Tegtmeyer & Co.,
Chicago, 111.

Davis,

Tax

Exempt Bond Fund, Inc., Washington, D. C.

shares of common stock. Price—$25
share. Proceeds — For investment. Underwriter—
Equitable Securities Corp., Nashville, Tenn.

June 20 filed 40,000
per

14

June

St. Louis Insurance Corp.,

be

offered

Price—$5

Telestudios, Inc.

Co., Inc., 60 Broadway, New York, N. Y.

to

to be

unit.

derwriter—Kesselman & Co., Inc.,

Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock (par $1)
of which 200,000 shares are to be offered to public and
20,000 shares issued to underwriter. Price—$5 per share.
Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union Produc¬

dent.

Power

loans.

(par $1)

class of stock.

stock

withdrawn.

tions,

stock
each

June 7

Co.

Lynch, Pierce, Fenner & Beane, New York.

ment

amendment.

Proceeds—To

Gas

filed 250,000 shares of cumulative preferred
(par $100). Price—To be supplied by amendment.
Proceeds—For construction program. Underwriter—Mer¬

Price—At

Electric

&

March 29 filed 100,000

.

14,

Brunswick

Electric

29

1956, filed $12,000,000 of 25-year sinking fund
debentures due Jan. 1, 1982. Price—To be supplied by

Dec.

Service

Resource

(Province

Boland & Co., Inc., New York.

stock

Noyes & Co., New York.
New

Public

May

Corp., New York
"
Feb. 19 filed 3,120,000 shares of common stock (par one
cent). Price—$1.25 per share.
Proceeds—For acquisi¬
tion of properties; for ore testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc. Under¬
writer—Gearhart & Otis, Inc., New York. Statement ex¬
pected to be amended.
1
National Lithium

.

D.

29,400

writer—John R.

Nassau

common

share of

Northwest

Steadman &

market.

—

per

one

East Orange,

stock

standing indebtedness and for general corporate pur¬
poses.
Office—2218 W. Lake St., Chicago, 111. Under¬

St., Princeton, N. J. Investment Advisor
Hoisington, Inc., same address.
:
•-*'
i'

units of

Steadman Investment Fund,

capital

-

Office—10

in

—

shares
*'

500,000

Nassau Fund, Princeton, N. J.
'
"
May 8 filed 250,000 shares of common stock. Price—At

investment.

shares of

50,000

•

common

to be offered for subscription by emiployees. Price—$25 per share. * Proceeds—For working
capital. Underwriter—None.
*
(no

convertible

Proceeds—To

acquire real estate properties and mortgages. Office—550
Fifth Ave., New York 36, N. Y. Underwriter — Stuart
Securities Corp., New York. -.
* 1
*'

Proceeds—For

cumulative

June

gran^ Underwriters—Lehman Brothers, Eastman Dillon,

Price—At
,

West Broad St.,

'.>'

10

Feb.

Proceeds—For investment. President

Richmond. 'Va..•[/ .*:•: %■

current

Sareze, Inc., Miami, Fla.
(letter of notification) 50,000 shares of 30-cent
convertible preferred stock
(par $2) and

June 27

Plymouth Fund, Inc., Miami, Fla.

March

Price—At market.

other

Pancal Oil Corp.
May 13 (letter of notification) 299,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For oil drilling expenses.
Office—27 William St., New
York, N. Y. "Underwriter — Bush Securities Co., New
York, N. Y.

■
.

July 111 (letter of notification) $100,000 of 6%;-debentures
due Nov. 30,; 1963 and 10,000 shares of'
ho'ri-voting pref¬
erence

To public $27 per unit.
debt and

• Packer Publishing Co., Kansas City, Mo.
(letter of notification) 2,000 shares of

'

'

Hau(jt & Co.,

,

common

July 17

..'

\

★ Music Fair Ltd.

one

Witter & Co*-

i Municipal Investment Trust
Fund* Inc. (N./ Y.)
•May 9 filhd 5,000 units of undivided interests'in Municipal Investment Trust Fund, Series A. Prices—At market.
•

$25 note and

a

—To stockholders $7 per share.
Proceeds—To repay short-term

Union

Price
At
advances

New York.

interim

remaining 34,000 shares of stock are being
fop subscription *.by common stockholders of
July 1 on a l-for-3 basis (with certain oversub¬
scription privileges); rights to expire on July 30. Price

Price—$28
v

'

Proceeds—For investment.1

subordinate

record

each

repay

x-,

6%%

of

83,000 shares of common stock (par
notes and 49,000 shares of stock are

being offered for subscription by common stockholders
:i-of record July ;10,71957 on the basis of one new share for

(par $100)

"v-a

Proceeds—To reduce bank loans and for working capital
and other corporate purposes. Underwriter — Kidder,

r

n

from American Telephone & Telegraph Co., the parent,
which owns 86:74% of the presently outstanding shares.

LmuerwriMir—i\one; .»-/■'

and

The

Pacific

share for each five

share).; Proceeds —To

$1,225,000

1963

June 4 filed 376,600 shares of common stock

being offered for subscription by stockholders of record
June 20, 1-957

filed

.

Investment Service Co.; Denver,-

—

• Sanders
Associates, Inc., Nashua, N. H. (8/6)
July 12 filed 110,000 shares of class A common stock
(par $1) of which 100,000 shares are to be offered pub¬
licly and 10,000 shares are to be offered for subscription
by employees. Price — To be supplied by amendment.

Co.

vliabilities and for, construction program. Underwriters—
White,. Wjpjd & Co., . New York; Wm. P. Harper & Son
Co., Seattle, Wash.

stock

(par 50 cents)., ;Price—$1 per. share. Proceeds—For ex¬
ploration and related purposes, including construction of
a

dial auto¬

a

Underwriter—

coffered

roadside restaurant and gas

/

28

Gas

$1), of which the
being offered in units of

shares of common
—

For converting ex¬

39

Peabody & Co., New York.

notes due

Proceeds

—

manual service to

Office—Buckfield, Me.

Pacific Natural

May

construction of motel,
station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa..
;
~
expenditures,

exchange.

Proceeds
a

None.

exploration

\

Feb. 18 (letter of notification)
300,000
stock.; Price—At par ($1 per share).

capital

and

(411)

shares

of

of Lumber company stock
July 31, will be declared

on

effective if 95% of the latter stock is deposited for ex¬
change (and may be declared effective at option of St.
Regis, if not less than 80% of the stock is deposited).
The Bank of California, N. A., Tacoma, Wash., is depos¬
itary and exchange agent. Statement effective June 21.

mon

(letter of notification) 180,000 shares of com¬
(par 10 cents). Price—$1.50 per share. Pro¬
To purchase and install two Ampex videotape

stock

ceeds

—

recorders, for equipment and working capital. Office—
1481 Broadway, New York City.
Underwriter—Joseph
Mandell Co., New
Texam Oil

York.

Corp., San Antonio, Texas

May 29 filed 300,000 shares of common stock (par $1),
to be offered for subscription by common stockholders
a basis of two new shares for each share held. Price

on

To

be

supplied by amendment.

Proceeds—To repay

indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and
other corporate purposes.

completion of wells, and for
Underwriter—None.

it Texas Eastern Transmission Corp.
July 22 filed 1,000,000 shares of common stock (par $7)
to be offered in exchange, on a share-for-share basis*
capital stock of La Gloria Oil & Gas Co. of Corpus
Christi, Tex. The offer is conditioned upon deposit of
at least 81%
(810,000 shares) of outstanding La Gloria
for

stock prior to

Sept. 6, 1957.

Offer may be extended from
Dec. 5, 1957.

time to time but not beyond

Texas Glass

of which

Tex.
of common stock (par $1),
to be offered to public at

Manufacturing Corp., Houston,

May 28 filed 3,000,000 shares

2,700,000 shares are

Continued

on

page

40

40

(412)

The Commercial and Financial Chronicle... Thursday,

July 25, 1957

i

Continued

from

page

ferred stock series A (par $20).

39

Underwriters—Emch &

Coastal Transmission Corp.
July 1 it was reported the company plans to offer pub¬
licly about 191,000 units of securities for about $20,000,000 (each unit expected to consist of a $25 debenture or

Co. and The Marshall Co., both of Milwaukee, Wis.

$2

share.

The

remaining 300,000 shares are under
option to original stockholders at $1 per share. Proceeds
«—For expansion and working capital.
Underwriter—T.
J. Campbell Investment Co., Inc.,
Houston, Texas.
per

ic Thermo-Form Co., Inc.
July 17 (letter of notification) 2,500 shares of common
stock (par $10) to be offered in accordance with the com¬
pany's Employees' Stock Purchase Plan. Price—Not less
than $15

or

more

than $20 per share or a maximum ag¬

gregate price of $50,000.
Proceeds—For working capi¬
Office
122 Eucalyptus Drive, El
Segundo, Calif.
Underwriter—-None.

tal.

—

Thompson

Products,

July 24 filed $19,729,500
Aug. 1, 1982 (convertible
1, 1967) to be offered

(8/13)

Inc.

subordinated
into

common

stockholders in the ratio of
14

shares of stock held of record

expire

Aug. 27, 1957.

amendment.
general
ney

due

until Aug.

subscription by common
$100 of debentures for each

to

on

debentures
stock

for

Aug. 12, 1957; rights
To be supplied by
working capital and other
on

Price

Proceeds—For

—

corporate purposes.

Underwriters—Smith, Bar¬
& Co., New York; and McDonald & Co.,
Cleveland,

Ohio.

May 6 (letter of notification) 6,000,000 shares of
(par

and

sell

& Telegraph Co. (10/29)
that company plans to issue

announced

was

$250,000,000 of debentures to be dated Nov.

common

$35

1,

1.957 and to mature on Nov. 1, 1983.
Proceeds—For im¬
provement and expansion of system. Underwriter—To
be determined by competitive bidding. Probable bidders:

Stuart & Co.
^Inc.
on Oct. 29.

is

•

(jointly); The First Boston Corp. and
(jointly); Eastman Dillon, Union Securi¬
ties & Co. and Smith, Barney & Co.
(jointly); Lee Higginson Corp.; Blyth & Co., Inc.

iK' Truly Nolen Products, Inc.
July 19 (letter of notification) 100.000 shares of common
stock (par 50
cents). Price—$2 per share. Proceeds—
For plant and
laboratory expansion, advertising and
working capital. Office—6721 N. E. 4th Ave.,
Miami, Fla.

Underwriter—Alfred

D. Laurence &

tive

plans to issue and

company

(par 10
Price—To be supplied by amendment
(expected
to be $1 per share).
Proceeds—For exploration purposes.
named

by amendment. Graham Al¬
Portland, Ore., is President.

bert Griswold of

* Walter (Jim) Corp., Tampa, Fla. (8/12)
July 22 filed $1,250,000 of 9% subordinated bonds due
Dec. 31, 2000, and 50,000 shares of
common stock
(par
50 cents) to be offered in
units of $25 principal amount
of bonds and

one

share of stock.

Proceeds—For working capital.
Business—Construction
cf "shell'' homes.
Underwriters—Carl M. Loeb, Rhoadcs
& Co., New
York; and Prescott, Shepard & Co., Inc.,
Cleveland, Ohio.

(par $1)

to

be

offered

Gas

shares of

$50 of notes and

seven

in

units of

shares.

common

Hudson Gas

&

Electric

Woodland Oil & Gas
Co., Inc., New York
May 28 filed 700,000 shares of common stock
(par 10
cents), of which 600,000 shares are to be offered for
account of company and
100,000 shares for account of a

selling stockholder, Ralph J. Ursillo, General
Manager
of the
company.
Price—$1.50 per share. Proceeds—To

drill and complete oil wells on
the company's
Pennsyl¬
vania and Kentucky
properties and for two "deep tests"
on
its Pennsylvania
property, as well as for

working

Underwriter—Name to be supplied
by amend¬
proceedings ordered by SEC on

"Stop order"
July 23, 1957.

per

Airborne Instruments
Laboratory, Inc.
May 16 it was announced company plans to issue
vertible

debentures.

unsecured

American

Research

&

ment

Aircraft,
to

up

and sell
con¬

Develop¬

$12,500,000;

common stock, following
Eastern
Aviation, Inc. of its
Land-Air, Inc. and Air Carrier Service

craft, Inc., a new company.
Podesta & Co., Chicago, 111.
All

stock

spin-off

by

subsidiaries,

Corp. into Air¬

Underwriter—Cruttenden

Freight, Incorporated, Akron, O.
was announced company plans to offer public¬
of

warrants).

lo-year 6%

debentures

Proceeds—Together

(with

with

common

funds

from

private sale of 425,000 shares
of common stock at
$4 per
share to pay part of
cost of purchase of an
operating car¬
rier truck line.

Cleveland, Ohio.

Underwriter—Fulton,

Reid & Co., Inc.,

Underwriter—Probably

program.

Illinois

Public

Kidder,

*f?irCih~ inn1shares—?'ed
uas
lo,000
of
$1.20




convertible

—

Expected to

Co.

Edison

New

of

York,

Inc.

Delafield, Financial Vice-President, on July 8
has tentatively decided to
and refunding mortgage

this

Proceeds—From

issue

and

bank

loans,

to

part of the cost ol: the company's 1957 construction
program which is expected to total about $146,000,000.
Underwriter—To be determined by competitive bidding.

reduce bank
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:

Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬

Together with $4,500,000 of 4%%
placed privately, to be

convertible

debentures

bank

repay

loans

and

for

construction

v

Morgan

(9/17)

was

pected to be received up to 11:30 a.m. (EDT) on Sept. 17.
Consumer Power Co.

Un¬

program.

and White, Weld &
Co. about the jniddle of last year
arranged the private
placement of an issue of $5,000;000 series G first mort¬

Inc.;

(10/21)

July 9 it was announced company plans to issue and sell
$35,000,000 of first mortgage bonds due 1987. Proceeds

to

derwriters—Kidder, Peabody & Co.

Co.

&

12-year
used

&

Halsey, Stuart & Co. Inc.; White, Weld & Co. and Paine,
Webber, Jackson and Curtis (jointly); Morgan, Stanley
Co. and the First Boston Corp. (jointly.
Bids—Ex¬

Central Louisiana Electric

—

Stuart

announced company plans to issue and sell
$25,000,000 25-year debentures. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:

Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane
(jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957.

Proceeds

Halsey,

Consolidated Natural Gas Co.

May 9 it

rities &

Co., Inc.
April 8 it was announced company plans to issue and
sell late this year $6,000,000 of first
mortgage bonds.

bidders:

Probable

Stanley & Co.; The First Boston Corp. Bids—Tentatively
scheduled to be received up to 11 a.m. (EDT) on Oct. 22.

Halsey,

3

it

reported

was

—To
.

repay bank loans and for construction program.
Underwriter—To be determined by competitive bidding.

Probable bidders: Halsey, Stuart & Co. Inc.;
&

Co.

Inc.

plans

early registra¬
$3,500,000 of 5V-2 % collateral trust sinking fund

of

company

bonds due 1972 and 350,000 shares of

$10 of bonds will
of

common

stock.

common

pre¬

stock. Each

warrant to purchase one share
Underwriter
Van Alstyne, Noel &

carry

a

—

Co., New York.

and

Shields

Co.

&

White, Weld
(jointly); Morgan Stanley &

mon

Probable bidders:

Bros. & Hutzlei\

Halsey, Stuart & Co. Inc.; Salo¬

'

* Cincinnati & Suburban Telephone Co. (9/3)
15 it was reported company plans to offer to its
stockholders of record Aug. 27, 1957, the
privilege of
subscribing for additional common stock on a l-for-10
None.

rights

to

expire

on

Oct.

3,

1957.

Underwriter—

American

Telephone & Telegraph Co. owns
proximately 30% of the outstanding common stock.
Cleveland

Nov. 12 it

Electric

ap¬

tion program.

Underwriter—To be determined by com¬
bidding.
Probable bidders:
Halsey, Stuart &

Corp.; Blyth & Co., Inc.; Dil¬

liams

&

Co.

Weld & Co.

(jointly);
,

'

,

Glore,
-

and Baxter,

Forgan
,

»

&

Co.;
-

Wil¬

White,

Oct. 21.'

on

was

announced that the company plans, in addi¬
financing, to offer to its common stock¬

holders the right to

the

basis

(10/16)

Co.

Power

tion to the bond

subscribe for $35,156,760 convertible
1, 1972, on

maturing not earlier than Sept.

of

$100

debentures

of

for

each

25

shares

of

Proceeds—For construction program.
Un¬
derwriter—To be determined by competitive bidding.

stock held.

Co. Inc.; White, Weld
(jointly); Morgan Stanley &

Probable bidders: Halsey, Stuart &

Co.

and

&

Shields

Co

Co.; The First Boston Corp. and Harriman Ripley & Co.
Inc.

(jointly); Ladenburg, Thalman & Co. Bids—Expect¬
(EDT) on Oct. 16.

ed to be received up to noon

Cook Electric Co.

July 15 it

was

reported that company is planning

some

equity financing. Underwriter—Probably Blunt Ellis &
Simmons, Chicago, 111.
Detroit

was

Proceeds—To repay bank loans and for construc¬

petitive

July 9 it

Illuminating Co.

reported company plans to issue and sell
$25,000,000 of first mortgage bonds in the Summer of
1957.

(EDT)

Consumers

&

July

Bids—Expected to he received up to 11:30

(jointly).

a.m.

debentures

Chesapeake & Ohio Ry.
July 15 it was reported company plans to issue and sell
in August about $5,000,000 of
equipment trust certifi¬

lon, Read & Co. Inc.; Blair & Co. Inc..

C0™P™y Plans to issue and
cumulative

Bids

(probably with a 30-year maturity). This may
$60,000,000, depending upon market con¬

ditions.

Service Co.

reported company plans to issue and sell

was

Co. Inc.; The First Boston

Aluminum Specialty Co.
eell

& Co.

pay

Central

basis;

States

f^nce
it
ly $2,2o0,000

(2)

issue and sell $50,000,000 of first

bonds

cates.

reported company plans to issue and sell

California

(jointly).

Co.

Co.; The First Boston Corp. and Harriman Ripley & Co.

Inc.

was

&

Forgan

announced that the company

issue and

Chesapeake Industries, Inc.

Corp., owner of 31,500 shares or 15.8% of Airborne's stock, propose to
purchase $320,000 of the new
debentures.
Proceeds—Together with $4,000,000 to be
borrowed from institutional
investors, for a building and
expansion program.
July 9 it

Under¬

be increased to

tion

subordinated

deter¬

yet

not

(10/22)

year, probably in the fall, approximately $7,500,000 of sinking fund debentures. Proceeds—To finance

June

.

$2,000,000 of 15-year 5%%

Glore,

and

Consolidated

Corp.

gage bonds.

Prospective Offerings

(kind

For construction program.

plans to sell not less
than $20,000,000 of first mortgage bonds, possibly this
Fall, depending upon market conditions. Proceeds—For
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass.

this

April 9 it

ment.

Corp.

Charles B.

announced company plans to

was

securities

new
—

For any preferred stock, may be The First

Connecticut Light & Power Co.

$100 of bonds,

Prices—$164

(10/8)

Feb. 18, it was reported company

—Cruttenden, Podesta & Co., Chicago, 111.; and Odess,
Martin & Herzberg, Inc.,
Birmingham, Ala. Offering—
Expected in August, 1957, with registration about the
middle of July.
Central

Co.

Boston Corp.; Glore, Forgan
be received on Oct. 8.

Proceeds—For construction program. Underwriters

April 22 it

Edison

bonds, to be determined by competitive bididng.
Probably bidders: Halsey, Stuart & Co. Inc.; The First

Co.

stock

common

of

$50,000,000

Boston

$10,000,000 of 1st mtge. bonds.Proceeds—To

•

raise

plans to

company

For any

July 2 it was reported company plans to issue and sell
$1,600,000 of first mortgage 6% bonds, $800,000 of 6%
subordinated sinking fund debentures due 1977 and 112,-

of the
company and its subsidiaries

writer—None.

this

stated that it plans to offer $25,000,000

mined). Proceeds

writer—(1)

common

officers and employees
pursuant to an em¬

Under¬

loans.

bank

term

Refining Co.

reported

was

Commonwealth

to

financing.

Natural

ployees' stock option plan. Price—At market on
day the
particular option is granted ($11.12V>
per share on Julv
18, 1957). Proceeds—To general funds of
company. Office
-1301-35 Burlington
St., North Kansas City, Mo. Under¬

capital.

it

10

June 25 company

Peabody & Co., New York.
19,870 shares of
to

cumula¬
determined later.

be

of

Tire & Rubber Co.

sell

short

reduce

construction

Whitaker Cable Corp. '
July 22 (letter of notification)
stock

Registration—Expected in about

Underwriter—Dillon, Read & Co.,
Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General

Price—$48.50 per unit.

Price—To

$64,000,000 to finance construction on a proposed
refinery and for other corporate purposes. The major
portion will consist of first mortgage bonds which would
be placed privately, and the remainder will include de¬
bentures and common stock (attached or in. units). Un¬
derwriter—Lehman Brothers, New York. Offering—Ex¬
pected in August.

& Rubber Co. in 1956.

unit.

stock.

about

a proposal to authorize a
100,000 shares of cumulative preference
(par $100) and to increase the authorized out¬
standing indebtedness to $15,000,000, in connection with
its proposed recapitalization plan. There are no
specific
objectives involved. Control—Acquired by General Tire

000

announced it is planning to sell publicly

issue of $8,000,000 par amount of

an

Commerce Oil
June

stock

Carolina

cents).

company

preferred

Proceeds—To

so.

class

Bids—Expected to be re¬

3.

Columbus & Southern Ohio Electric Co.

in October

Byers (A. M.) Co.
May 7 stockholders approved

new

Co., Miami, Fla.

Uranium Corp. of
America, Portland, Ore.
April 30 Bled 1,250,000 shares of common stock

Underwriter—To be

or

Under¬

$84,000,000.

by competitive bidding. Prob¬

writer—Dillon, Read & Co. Inc., New York.

a

middle of August.

common

par

(10/3)

approximately

cost

Oct.

on

July 22

$100,000,000 of convertible subordinated debentures.

week

to

White, Weld & Co. (jointly).

Drexel & Co.

the

expected

ceived

and Shields & Co.

Tripac Engineering-Corp.
! ~
Feb. 27 (letter of
noiuicauun; 100,000 shares of class A
common stock
(par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine
tools; equip¬
ment and
proprietary development.
Office — 4932 Sf.
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &
Co., Inc., Washington, D. C.

Underwriter-

$1

6, company announced

writer—To be determined

Proceeds—To retire bank loans and for expansion pro¬
gram and working capital. Underwriter—Smith, Barney
& Co., New York. Offering — Expected sometime after

Denver, Colo.
Wayne Jewell Co., Denver. Colo.

of

able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
&
Co.; Merrill Lynch, Pierce, Fenner & Beane and

struction program. Underwriter—May be determined
by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co., American Securities
Corp.
and Wood, Struthers & Co.
(jointly); White, Weld & Co.

sell

shares

that it plans the issuance
and sale of $25,000,000 debentures later in 1957.
Pro¬
ceeds—To help finance 1957 construction program, which

con¬

Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties. Office — 704
First National Bank
Bldg.,

cent).

one

five

and

Columbia Gas System, Inc.

June

Atlantic City Electric Co.
April 9, Bayard L. England, President, announced that
later this year the company will probably issue about

$5,000,000 of convertible debentures. Proceeds—For

note

Proceeds—Together with other funds, for con¬
Underwriters—Lehman Brothers and
Allen & Co., both of New York.

(jointly). Bids—Expected to be

opened

interim

stock).

struction program.

Morgan Stanley & Co.; The First Boston Corp. and Halsey,

it Atlantic Refining Co.
July 23 it was announced

Titanic Oil Co.
stock

American Telephone

July 17 it

Co.

Edison

June 27 company announced
has authorized

issue and

Michigan P. U. Commission

sale of, $70,000,000

general and
refunding mortgage bonds, series P, due 1937. Proceeds
repay bank loans and lor construction program.
Underwriter
If determined by competitive bidding,
probable bidders may be The First Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly); Coffin & Burr, Inc.,
—To

—

and
in

Spencer Trask &> Co. (jointly).

August.

.

•

•

-

Offering—Expected

Volume

186

Number

5658

.

.

The Commercial and Financial Chronicle

.

(413)
Duke

Power

Co.

(9/10)

:

April 22 it

was reported company plans to issue and sell
$50,000,000 of first refunding mortgage bonds. Proceeds
—To repay bank loans and for new construction. Under¬

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Morgan Stanley & Co.; Stone
& Webstei

Securities Corp.
ceived

Bids—Tentatively scheduled to be

re¬

Sept. 10.

on

Eastern Gas

Underwriter—For any bonds to be de¬
termined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co. (jointly).
Eastern Utilities Associates

15

it

sell

was

announced

$3,750,000

Proceeds

For

—

of

company

25-year

advances

proposes

collateral

to issue
bonds.

trust

Blackstone Valley Gas

to

&

Electric

Co., a subsidiary. Underwriter—To be deter¬
by competitive bidding. Probable bidders: Hal¬
sey,- Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).

mined

it El Paso Natural Gas Co.

(8/27)

July 17 directors authorized filing early in August of
a registration statement with the SEC
covering the pro¬
posed issue and sale of $60,000,000 convertible deben¬
tures and $10,000,000 first preferred stock; It is planned
to offer the debentures for subscription by common and
B stockholders of record

common

To

Aug. 26, 1957.

Price—

be determined later.

Proceeds—Together with funds
private sale of $60,000,000 first mortgage pipe line
bonds, for current expansion program.
Underwriter—
White, Weld & Co., New York.

from

Employers Group Associates
July 1 it was announced company plans to file
tration

statement

issuance

with the

sale of

and

Idaho

a regis¬
covering the proposed
88,761 additional shares of

SEC

to

up

Power Co.

May 16 it
Fall

next two years.

and

(jointly); Lazard Freres & Co. and Blyth &
Co., Inc.
(jointly); Kidder, Peabody & Co.
was reported
company plans to issue and sell
200,000 to 225,000 shares of common stock in the

around

& Fuel Associates

April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the

April

Underwriter—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Equitable
Securities Corp.; Lehman
Brothers, Eastman Dillon,
Union Securities & Co. and
Salomon Bros. & Hutzler

in

addition

first mortgage

to

between

$10,000,000

bonds after Nov. 1.

to

$15,000,000

Underwriter—To be

stock

holders

to

shares held.

be

offered

basis

the

on

of

for

one

subscription
share

new

for

by

stock¬

each

four

Price—To be supplied by amendment. Pro¬

ceeds—For working

capital and general corporate

pur¬

poses.
Underwriter—Morgan Stanley & Co., New York.
Offering—Expected in late August or early September.

General Telephone Co. of California
July 10 it was announced that the company has been
granted authority by the California P. U. Commission to
issue and sell 500,000 shares of 5% cumulative preferred
stock (par $20). Proceeds — For construction program.

Underwriters—Paine, Webber, Jackson & Curtis, Boston,
Mass.; and Mitchum, Jones & Templeton, Los Angeles,
Calif.
•

General

Tire &

Rubber Co.

common

stockholders.

Proceeds—For

working

capital.

Underwriter—Kidder, Peabody & Co., New York. Offer¬
ing—Expected in the next few months.
Goodman

Manufacturing Co., Chicago, III.

June 21

it was announced company plans to issue and
150,000 shares of capital stock (par $16.66%), fol¬
lowing approval on Aug. 5 of 3-for-l split up of present
$50 par stock. Proceeds—For general corporate purposes.

sell

•

/Gulf interstate Gas

May 3 it,

was

Co.

announced

company

plans to issue

some

additional first mortgage bonds, the amount of which ha®
hot

yet been determined.Proceeds — For construction
program. Underwriters—Carl M. Loeb, Rhoades & Co.

Hutzler

and Eastman
Dillon, Union Securities & Co.
(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
The First Boston Corp.
(jointly); Kidder, Peabody &
Co. and White, Weld & Co.
(jointly); Equitable Securi¬
ties Corp. (2) For
stock—Kidder, Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres &
Co. (jointly).

Indiana & Michigan Electric Co.
(10/15)
May 20 it was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds
—For

reduction

of

bank

loans

and

for

construction

Underwriter—To be determined by
competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Harriman Ripley & Co. Inc.; The First Boston

program.

tive

Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to be received up to 11 a.m. (EST)
on

•

Oct.

sell $16,000,000 first mortgage bonds in November. Pro¬
ceeds—To repay bank loans and for construction
pro¬

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner and Beane and
White,

Southern

July 17 it

Utilities

Co.

was announced company

plans to offer $5,000,mortgage 30-year bonds. Proceeds—To repay

000 of first

bank loans and for construction
program.
To be determined by

Underwriter—

competitive bidding. Probable bid¬
& Co. Inc.; White, Weld & Co.;
Kuhn, Loeb & Co.; Lehman Brothers and Bear, Stearns
& Co. (jointly); The First Boston
Corp.; Dean Witter &
Co.; Shields & Co.; Equitable Securities Corp. and Salo¬
ders:

mon

Halsey,

Bros.

Stuart

&

Hutzler

(jointly).

Offering—Expected

latter half of August 1957.

&

Co.

(jointly);

Salomon

Bros.

&

Hutzler

and

Eastman Dillon, Union Securities & Co.
(jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Stone
& Webster Securities Corp.; Lee Higginson Corp.

Gulf States Utilities Co.

April 6 it

was

Issue and sell

—To
be

reported

some

finance

company

preferred stock this

construction

determined

by

tentatively plans to

program.

Proceeds
Underwriter—To
year.

competitive

bidding. Probable bid¬
ders: Stone & Webster Securities Corp.; Lehman Bro¬
thers and Equitable Securities Corp. (jointly); Lee Hig¬
ginson Corp. and Carl M. Loeb, Rhoades & Co. (jointly);
Kuhn, Loeb & Co.; Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
Hanna Steel Co.,

April 8 it

Birmingham, Ala.

reported company plans to issue and sell
120,000 shares of class A common stock. Price—$5 per

share.
cago,

was

Underwriters—Cruttenden, Podesta & Co., Chi¬
111.; and Odess, Martin & Herzberg, Inc., Birming¬

ham, Ala.

Offering—Expected in June.

Hathaway
June 24 it
to

its

stock.

(C. F.)

was

common

Co., Waterville, Me.
announced company plans soon to offer
stockholders

some

additional

common

Underwriter—Probably H. M. Payson & Co., Port¬

land, Me.
Houston
Feb.
Fall

13

it

★ ianaf,

,

reported company plans early registra¬
tion of $10,000,000 of debentures and
100,000 shares of
common

Lighting & Power Co.
reported

company




be

to

offered

in

units

of

$100 deben¬
ture and one share of stock.
Price—$100 per unit. Pro¬
ceeds—For general corporate purposes.
Underwriter—
Mason & Lee, Inc., Lynchburg, Va.

may

offer late this

Loeb

&

Company; Salomon Bros. & Hutzler; Eastman
Dillon, Union Securities & Co., and
Wood, Struthers &
Co.
(jointly); Lehman Brothers; The First Boston
Corp.;
Equitable Securities Corp.; Merrill
Lynch, Pierce, Fen¬
ner &
Beane; Kidder, Peabody & Co., and
White, Weld
(i°in^y)« Offering—Expected in first half of
1957.

New

Jersey Bell Telephone Co.

Jefferson

was

(9/11)

announced company plans to issue and
sell

$30,000,000 of debentures. Proceeds—Together with

pro¬

ceeds from sale of
900,000 shares of common stock
(par
$100) to parent, American
Telephone & Telegraph Co.,

will be used to
pay for expansion program.
be determined

—To

Underwriter

by competitive

bidding. Probable
Inc.; Kuhn, Loeb & CoMorgan Stanley & Co.; Shields &
Co.; White, Weld &
Co.; The First Boston Corp.
Bids—Tentatively expected
bidders:

Halsey, Stuart

to be received

&

Co.

Sept. 11.

on

a

Lake Sulphur Co.

Jersey Power & Light Co.
Sept. 12, 1956, it was announced
company plans to issue,
and sell $5,000,000 of first
mortgage bonds. Underwriter—
To

be

determined by competitive
bidding. Probable
bidders: Halsey, Stuart &
Co.; Kuhn, Loeb & Co., Leh¬
man
Brothers and Salomon Bros, &
Hutzler (jointly):
Eastman Dillon, Union Securities
& Co. and
White, Weld
& Co.
(jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill
Lynch, Pierce. Fenner & Beane.

Dec. 27, 1956, Eugene H. Walte, Jr., announced
company
plans in the near future to sell an issue of convertible
debentures. Proceeds—For expansion program.

Niagara Mohawk Power Corp.
April 22 it was reported

Long Island Lighting Co.
April 16 it was announced company plans to sell later
this year $40,000,000 of rist mortgage bonds, series J.

Probable

Jan. 1,
—To

issue

and

$12,000,000 of series C bonds due
1958 and for construction program. Underwriter
determined by competitive bidding. Probable

Halsey,

Stuart

& Co. Inc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co. (jointly).
Louisville Gas & Electric Co. (9/4)
May 14 it was reported company plans to issue and sell
$15,000,000 of first mortgage bonds, Proceeds—To repay
bank loans and for construction program. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and

American Securities Corp. (jointly);
Kidder, Peabody &
Co. and Goldman, Sachs & Co. (jointly); Harriman Rip¬

company tentatively plans to
sell this fall about
$40,000,000 of bonds. Un¬

derwriter—To
Boston

be determined
by competitive bidding.
bidders: Halsey, Stuart & Co.
Inc.; The Firsfi

Corp.; Morgan Stanley & Co.; Kuhn, Loeb & Co.
Dillon, Union Securities & Co. (jointly).

and Eastman

refund

be

bidders:

Norfolk &

Bids

Western Ry.

expected to be received by the
company up to
noon
(EDT) on July 31 for the purchase from it of
$4,320,000 equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Norfolk & Western
Ry. (9/18)
are expected to be
received by the company up to
(EDT) on Sept. 18 for the purchase from it of
$4,260,000 equipment trust certificates. Probable bid¬

Bids

noon

ders:
'

Halsey, Stuart & Co. Inc.; Salomon Bros.

Northern

Illinois

posed financing, but

on

No

decision has

been made
no

sale of common stock

Sept. 4.

Co.

& Hutzler.

(9/24)

announced that it is planning to
$8,000,000 and $10,000,000 early this fall.

Securities & Co. and

—Tentatively scheduled to be received

Gas

July 1 this company
raise between

White, Weld & Co. (jointly). Bids

(7/31)

are

ley & Co. Inc.; Lehman Brothers and Blyth & Co., Inc.
(jointly); The First Boston Corp.; Eastman Dillon, Union

or

as

to

the form of the

consideration is

pro¬

being given to

securities convertible into

com¬

stock. Proceeds—For construction
program. Under¬
writer—For any bonds, to be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
The First Boston
Corp.; Glore, Forgan & Co.; Blyth &

mon

Nashville

RR.

are expected to be received
by the company some
time in the Fall for the purchase from it of
$14,400,000

of

equipment trust certificates. Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Hal¬

Co., Inc.

sey,

1

Mangel Stores Corp.
June

19

expected
bentures
New

it

was

of

an

due

reported early registration statement is
issue of $3,000,000 of convertible de¬

1972.

Underwriter—Lee

Higginson Corp.,

York.

Bids—Expected

Ohio Power Co.

May 15 it
issue

and

Manufacturers

National

Bank

of

Detroit

July 11 stockholders were given the privilege of sub¬
scribing for 156,600 additional shares of capital stock
(par $10) on the basis of one new share for each seven
shares

held

as

Price—$35 per

of

July 9; rights to expire on July 26.
share. Proceeds—To increase capital and

surplus. Underwriters—Blyth & Co., Inc.: First of Mich¬
igan Corp.; and Watling, Lerchen & Co.
Middle South Utilities, Inc.
May 8 it was announced company may consider an offer¬
ing of new common stock within the next year or so.

Proceeds—About $19,000,000, for investment in common
stocks of the System operating companies during the

three-year

period

1957, 1958 and 1959. Underwriter—
offering was to stockholders, without
underwriting, with oversubscription privileges.
Previous

stock

Molybdenum Corp. of America
16 it was announced company plans to offer its
stockholders the right to subscribe for about
196,851 additional shares of common stock (par $1), plus

July

common

warrants to

basis

of

of

purchase

one

new

an

additional 196,581 shares, on the
share and one warrant for

common

shares presently held. The holders of record
be the fifth day following the effective date

seven

will

registration with the SEC. Proceeds—For expansion
Office—Grant Bldg., Pittsburgh, Pa. Under¬

program.

writer—None,

was

sell

to be received

on

Sept. 24.

(11/19)

reported that this company now plans to
$28,000,000 of first mortgage bonds and

70,000 shares of $100
ceeds—To
termined

date

approximately $25,000,000 first mortgage bonds, but
amount, timing, etc. has not yet been determined.

exact

was

stock

Co.

New

Inc.

July 22 it

each

was

Electric

Underwriter—May be determined by competitive bid¬
ding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn,

in

\

gram.

Weld

Haverhill Electric Co. and
Amesbury Electric Light Co
into one
company.
This would be followed
by a $20,000,000 first mortgage bond issue
by the resultant com- '
pany, to be known as Marrimack-Essex

May 1 it
Iowa

approved the merger

following subsidiaries: Essex County Electric
Co.; Lowell Electric Light
Corp.; Lawrence Electric Co.;

15.

Louisville &

plans to issue and

construction

Underwriter—To be determined
by competitive bidding.
bidders: Halsey, Stuart & Co.
Inc.; Eastman
Dillon, Union Securities & Co.;
White, Weld & Co.; Kid- "
der, Peabody & Co.; Smith, Barney &
Co., and Blyth &•
Co., Inc. (jointly); Merrill
Lynch, Pierce, Fenner &
Beane and Stone & Webster
Securities Corp. (jointly).
Probable

&

Bids

Gulf States Utilities Co.
4 it was reported company

For

^

,

company may issue and sell in
of debt securities. Proceeds—
program and to reduce bank
loans.

$20,000,000

New England Electric
System
May 23 it was announced SEC has

and Merrill Lynch, Pierce, Fenner & Beane.

March

the fall about

of the five

by competitive bidding, probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.

Proceeds—To

May 10 it was announced that this company is consider¬
ing an issue of $15,000,000 to $20,000,000 convertible sub¬
ordinated debentures (with stock purchase warrants at¬
tached) which may first be offered for, subscription by

.

determined

,

capital

Montana Power Co.
May 20 it was reported

41

repay

by

par value preferred stock.
Pro¬
bank loans. Underwriter—To be de¬

competitive

bidding.
Probable bidders:
(1) For bonds—Halsey, Stuart & Co.
Inc.; The First Bos¬
Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬

ton

curities &

Co. and Salomon Bros. & Hutzler
(jointly).
(2) For preferred stock—Eastman
Dillon, Union Securi¬
ties & Co. and Salomon Bros. &
Hutzler

(jointly); Harri¬
man Ripley & Co.
Inc. and Stone & Webster Securities
Corp. (jointly); The First Boston
Corp.; Blyth & Co.,
Inc.; Kuhn, Loeb & Co.; Lehman Brothers. Bids—Ex¬
pected to be received up to 11 a.m.
(EST) on Nov. 19.
^ Pacific Power & Light Co. (9/18)
July 19 it was reported that company plans to issue and
sell $20,000,000 of first
mortgage bonds due 1987. Pro¬
ceeds—To repay bank loans and for construction
pro¬
gram.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Eastman Dillon, Union Securities & Co. and
Kidder, Pea¬
body & Co.
(jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly).
Bids—Tentatively expected to
be received on Sept. 18.
PacifTc

May 24 it

Telephone & Telegraph Co.
was

stockholders

announced company plans to offer to its

the

right to subscribe for

1,822,523

addi¬

tional shares of

common stock on the basis of one new
share for each six shares of common stock and/or
pre¬

ferred stock held.

Price—At par ($100 per share).

Continued

on

Pro-

page

42

Commercial and Financial Chronicle... Thursday, July 25, 1957

The

42

(414)

ceeds—To

ceived

advances from parent. Underwriter—
Telephone & Telegraph Co. owns

repay

89.6% of the voting stock

Offer¬

of Pacific T. & T. Co.

on

March 12 it

Diego Gas & Electric Co.

San

Power &

Utah

in August.

American

None.

scheduled to be received

Brothers

Lehman

was

on

Sept. 24.

\

A

(9/24)

Light Co.

Tentatively

—

\

^A

.

also announced Company plans to offer

Under¬

of common stock.

the public 400,000 shares

to

Bids

& Co.

(jointly); Kidder, Peabody

Boston Corp.; Kuhn, Loeb & Co. and
(jointly). Bids—Expected to be re¬
Sept. 18. Registration—Planned to be made

The First

Inc.;

41

Continued from page

ing—Expected some time in August.

April 23, E. D. Sherwin, President,

writer—To be determined by competitive bidding.

(8/20)
May 24 it was announced company plans to issue and
sell $90,000,000 of new 23-year debentures due 1980.
Proceeds—To repay advances from parent, and for im¬
provements and additions to property. Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Bids—Expected to be received on Aug. 20. Registration
—Expected in the latter part of July.

pany

able bidders:,

announced that com¬
will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth
& Co., Inc., San Francisco, Calif.

Telephone & Telegraph Co.

Pacific

Siegler Corp.
June

May

was announced company,
Natural Gas Co., may issue

to

noon

(EDT)

to its common

parent)

in New York up

its

Gas

it

Co.,

and

to

common

stockholders oi

$2,500,000 of common stock of Valley
is to "receive as part payment of certain

the

latter

the

July 25 for the purchase from it of

on

stockholders (other than Eastern Utilities

Associates

(7/25)

Pacific Co.

Salomon Bros. & Hutzler.

.r

Southern Union Gas Co.

Blackstone

properties. Dealer-Manager-^-May be Kidder

'A^r.r.'//.i:f/■■■?[

Peabody & Co., New York.

i

■

March

...

A/A/AvA.; AA/

kyA

&

Underwriter—To be determined

..(10/1)

Hutzler; Eastman Dillon, Union Secu¬

Salomon Bros. &,

program.

Southwestern Bell Telephone Co.

ft was announced company plans to sell $20,-••

,

Underwriter-May beyBlair
Co. Incorporated, New York. //';.<A.A,AAjA,,
construction

8

000,000 of first mortgage bonds. Probable/bidders for
bonds may ^include: Halsey, Stuart & CoA lnc;; .:Kuhn .
Loeb &;Co./and American Securities Corp.A(jointly);

May 16 it was reported company plans to; issue and sell
$10,000,000 of debentures this summer. Proceeds—

For

Virginia'Electric & Power Co.' (12/3)k%-..ir

•:

about

(9/12)
July 22 it was announced company plans sale of $40,000,000 additional bonds to mature in 1987. Proceeds—For
program.

preferred stock to its parent in ex¬
change/for $6,000,000 of notes to be issued in exchange
for certain' assets of Blackstone., The latter,
in turn.;
proposes -tb dispose by negotiated sale' the fihsf thfee
new securities mentioned in this paragraph. ; ' AY AAA/A
April 15 it was also announced Blackstone plans to offer

'

(

,

one

$900,000 of

and

$6,000,000 equipment trust certificates, series XX, to be
1957 and to mature in 15 equal annual in¬
stalments. Probable bidders: Halsey, Stuart & Co. Inc.;

Philadelphia Electric Co.

construction

Aug. 27.

was announced company, a subsidiary oi
Valley Gas & Electric Co., plans to issue
year, $4,000,000 of bonds, $1,100,000 of note?

it

dated June 1,

Co., New York.
•

on

Bids will be received by this company

subsidiary of

a

about $25,300,000
of new securities, in the following form: $15,000,000 of
mortgage bonds, $3,700,000 of preferred stock and $6,600,000 of common stock. Proceeds—To repay advances
of $9,300,000 from parent, and the remaining $16,000,000
for new construction.
Underwriter — Glore, Forgan &
Northern

within

1982.

Southern

it

20

ceived

15

Blackstone

(8/27)

Co.

Edison

Co-JAY'Ia'-1':^

Valley Gas

April

Proceeds—For construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp. and Dean Witter & Co. (jointly); Blyth &
Co., Inc.; Kuhn, Loeb & Co. Bids—Expected to be re¬
series J, due

Pipe Line Co.

Basin

Permian

October of this year a maximum of

California

Southern

Loeb & Co.

Kuhn

ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Sept. 24. .A A y'^ A AA,

announced company plans to issue and

was

July 23 it was announced company plans to issue and
sell $40,000,000 of first and refunding mortgage bonds,

announced company plans to issue
and sell $6,000,000 of first mortgage bonds. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.; Harriman Ripley &
Inc.;

it

sell in September or

Sept. 12, 1956 it was

Co.

25

200,000 additional shares of common stock. Underwriter
—William R. Staats & Co., Los Angeles, Calif.
;
v;

Co.

Electric

Pennsylvania

Prob¬
Kidder, Peabody & Co. and Merrill Lynch
Pierce,A Fenner & Beane
(jointly); Eastman Dillon
Union Securities & Co. and Smith, Barney & Co. (joint¬

•

rities & Co.; Stone: & Webster Securities Corn.;
Weld & .Co.; .Bids—Expected to be received on
*v

Halsey, Stuart
Boston Corp.;
& Co. and Drexel & Co. (jointly). Bids

by competitive bidding. Probable bidders:
& Co. Inc.; White, Weld & Co.; The First

Underwriter—To

.v'-vd/ ."•>

new

Morgan Stanley

>!■,£'v '
Wisconsin Public

White,
Dec. 3.

May 24 directors approved the issuance of $100,000,000
debentures.
Proceeds — For /(expansion program.

—Expected to be received on Sept. 12.

first

of

series

announced that it is expected that a new

was

bonds

mortgage

to

$25,000,000

(about

Utah

(jointly):.
White, Weld & Co. and Stone & Webster Securities Corp
ly); Lehman Brothers and Bear,/Stearns & Co.

should

Treasury's

huge

new

cor¬

Gas

funding

taken

hue

on

in

little

a

the

cheerful

more

corporate

issue

new

market place.

True,

the

5%
4%

is the highest on

the

early

30's.

set

coupon

Government's

the

for

four-year issue
U. S. debt since

that this

But

de¬

best

The

by banking

$100,

or

rate.

which

the

wake

of

the

news.

priced at 100.798
indicated yield of 4.95%

Reoffering
for

in

a

an

was

attract brisk
demand and to stir up interest in
appeared

to

preceding fortnight or so issues, that had been lagging.
the market for securities carrying
Other Issues Move Well.
an
AA rating had backed off a
While not quite as impressive
bit. But in so doing, it appears, it
as the foregoing operation, it was
had been engaged in discounting
reported that good demand made
pretty
much
the
type
of
an¬
its appearance for the $50 million
nouncement which came from the
of 5% debentures brought out for
Treasury.
Sears, Roebuck Acceptance Corp,,
In the

From

market

the

issue

is

terest.

and
are
as

a

conjecture

place

it

projected
great

to

it

Treasury
of

end

no

is

regard

reported,
this

issue

good "hedge" against eventu¬

alities

of

the

next

two

to

and

for

Tennessee

Gas

Trans¬

realize

a

good

rate of

return during the life of the issue




New

-

Underwriter—The

Milwaukee

the

Hemisphere. 'A A : '/•

of

AAA' 1,000,000 shares.
will

ry^'AA^CrvAAiA J

July 8 it was reported company plans tq offer up to,,
$300,000 of additional, common stock to its.stockholders.

up

Prospects AAk'M; :,V:;The

AAy;AAA ./

business

consist

of

Of
the

the

company

evaluation

of

Co., Milwaukee* • Wis.. - /

clude:.

Bankers v: Trust Com pan y,; v
The Chase Manhattan/ Bank; Ti)c
First National Cityi Bank pf;>New;

.York; The First National. Bank of'
Chicago; Halsey,. ASihart & Co,

Inc..; Blyth & Co.. .Inc.; The-First
Boston ACorporation; A HarrimanA
Ripley & Co/Incorporated; Harris
Trust and Savings Bank; Smith/,
Barney & Co.; Lehman Brothers;

American
Trust
offerings
Company, Sarr
oil and mineral prospects in va¬
continued to build up during the
...Francisco;,t;•/AA''""V;'a">AjAr; V;;A ;*' A,
rious./ countries;
organization * of
week with several additions Jiff^
Security-First; National Bank of
joint ventures with mining com¬
ing substantially the prospective'
Los Angeles; California Bank, Los
panies; to explore for and to ex¬
pull on the money market over
Angeles; Drexel & Co.; Glore/
ploit commercial deposits of valu¬
the next two months:
/A'AY
Forgan & Co^; Chemical Corn Ex-;
Atlantic Refining Co. disclosed able minerals, the evaluation and
change Bank; C. J. Deyine & Co.;/
testing of various methods of ob¬
plans for $100 million of con¬
Continental Illinois National Bank
vertible, subordinated debentures, taining commercial production of and Trust Company, of Chicago;
during the final half of August, oil, and the acquisition, evaluation The Northern Trust Company; R.
to obtain funds for retirement of and sexploitation /'of
any
lands H. Moulton &
Company; Gold¬
which seem to offer prospects for
bank loans.
v
man, Sachs & Co.; Kidder, Pea¬
the commercial production of oil.
And Southern California Edison
body & Co.; Eastman Dillon, Union
Other members of the under¬ Securities &
Co., proposes to sell at competitive
Co.; Bear, Stearns &
bidding $40 million of first and writing group include:v Bear Co.; Merrill Lynch, Pierce, Fenner
refunding mortgage bonds to help Stearns & Co.; The Ohio Com¬ & Beane; Blair & Co.
Incorporated;

of

new

.

finance its constructior?. program.

Bankers Offer Western

Hemisphere Petroleum

The Sears offering

while
was

Tennessee

made

better

than

at

99

6%

was at par,

Gas's
for

offering

slightly

a

yield to the

pur¬

was

indicated that

Sanders
Pierce

current

namely

stock

McLouth

offerings,

Steel's

105,000

&

&

Co.

Co.

Inc.

and

Rauscher,

jointly manage
underwritingA group which is

an

publicly offering 400,000 shares of
Western
Hemisphere
Petroleum
common

&

stock

at

$5

per

$1,675,000
will
be
Canada, Colom¬

used for work in

bia,
e

Cuba,

Haiti

balance is i

and

Honduras.

tended to be used

for the

purchase of producing oil,
and mining properties in the

United
the

States

purpose
*

or

of
i

and

for

investigating

oil,

Canada

f

'

ft'

&

Co.;

The First National Bank of Bos-

Ion; The First National Bank of
Mead, Miller & Portland, Ore.; The Philadelphia
Lane, Space Corp.; National Bank; Seattle-First Na¬
Investment Corp.; and Stein tional
Bank; Equitable Securities

Turner,

Muir

Inc.;

&

Boyee.

Corporation;
Stone
&
Webster
Securities Corporation- Dean Wit¬
ter

$50 Million Issue of

Bank .of

The

A.

and

offered

America

associates

on

T.

July

Bonds, due April 1, 1959 to

1978, inclusive.
from 2.75%

to

(Special to The Financial Chronicle)

PORTLAND,
is

now

Me.— Sidney
with

Coburn

R.
&

yield

to 3.55%, according to

rMiddlebrook, Incorporated. He was
formerly with King Merritt & Co.,

maturity.
Associates

Co.;

With Coburn MicHlebrook

Gordon

scaled

&

&

erans'

are

Fenn

24

$50,000,000 State of Cali¬
5%, 3V4% and 3y2% Vet¬

bonds

Phelps,

Co.; Ladenburg, Thalmann & Co.'
N.

fornia

The

Co.;

&
Hutzler; R. W. Pressprich &
Co.; Paine, Webber, Jackson &
Curtis; Mercantile Trust Company ;
Shields & Company; Reynolds &

Bonds Marketed
S.

&

White, Weld & Co.; Salomon Bros.

State of California

the

proximately

Weed en

Co., Inc.; Eppler, Guerin

Co.; Johnson,

_

proceeds to be received
from the sale of t^ese shares, ap¬

gas

the

&

Bros.

T

Meanwhile, it

livan

Common Slock Offered

Of

^

Dempsey-Tegeler &
Co.;
Co.; Bosworth, Sul¬

pany;

I. M. Simon &

share..

years.

can

*

offering price.

backlog

Corp.

three

Consensus seems to be that the

taken?

-Western

1-for-:

Registration—Of bonds/in Sep¬

':l? Wisconsin Southern Gas Co.,. Inc.

upon

the

above

tures.

chaser.

buver

jointly);

tember; and of stock in August.

Outstanding
capitalization/, of
the company, after giving effect
opening;- of
tlieA to this financing/ will consist of
books. AI1 went to premiums, with
666,500 shares of; common stock
Carter quoted some eight points; out
of a total authorized issue of

quickly

mission's $25 million of 6% deben¬

in¬

institutions

many

corporations,
inclined

the

that

4%

attracting

A

around

indicated

is

new

shares

been

*

a

.

.

est

Treasury

markets

99.92 for

rate. The bid of the
only 32 cents per
$3.20 per $1,000 bond

lower and named the same inter¬

apparent from the behavior of the

corporate

groups was

coupon

runners-up was

velopment had been discounted is
and

of two bids submitted

100,000

had

common,

The

Market

Pacific

offerings,

porate

Electric's

Sol

Fenner

Carter Prod-;*; gas and mining properties in

500,000 common*'and Tung-

Several

&
operation now effected, Electric Co.'s new issue of 32involving some $24 billion of ob¬ year, first and refunding bonds
ligations maturing currently and encountered brisk demand when
through
October,
things
have brought to market yesterday..
re¬

ucts'

security

Shaking off the lethargy which
the

shares of preferred;

stock (first to stockholders on

basis); The First Boston Corp., Merrill Lynch, Pierce,
& Beane, Robert W. Baird & Co. and William

Blair; & >Co«

had marked the last few

With

For any common

Underwriter—To be determined by competi¬
Probable bidders;- Halsey, Stuart & Co
Inc.; The First Boston Corp. and Blyth & Co., Inc
(jointly); Salomon Bros.•/& Hutzler; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬

market, except for its weekly bill
rollover," unless,
of
course,
it
should decide to raise funds by a

Ready

to issue and

bidding.

be able to stand clear of the Fall

Finds

Pierce, Fenner. & Beane; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & CQi (jointly); Dean'
Witter & Co.; Lehman Brothers; White, Weld & Co. (2)

program.

tive

Lynch,1

Peabody .& Co.; The First Boston Corp.; Merrill

of nev
-'/A

10

Meanwhile the Treasury

Report

$5,000,000. common: stock. Proceeds — For construction
program and to repay bank loans.
Underwriters — (1)'
For bonds, to be determined by competitive bidding^
Probable bidders: Halsey, Stuart & Co. Inc.;Kidder,-

sell about $15,000,000 of first mortgage bonds due 1987
Proceeds — To repay bank loans and for construction

degree of liquidity which this type
of security affords.

different type of

$6,700,000

j

(9/24)-A

Light Co.

&

Power

and, at the same time, enjoy the

Reporter's

AY''A:Ay/.;A A;' A
plans a public offer¬

March 12 it was announced company plans

Halsey, Stuart & Co.'

Our

A

sell about

of California )>

May 21 it was announced company
ing of securities to provide about
working capital. vA-.;
"
AA.'• A "A '

^ Public Service Electric & Gas Co. (9/18)
July 19 it was reported company plans to issue and sell
$60,000,000,. of first and refunding mortgage bonds due
1987. Proceeds—To repay bank loans and for new con¬
struction.
Underwriter—To be determined by competi¬

bidders:

Co.

May 29 ittwas announced company plans to issue and '
$7,000,000 of first rrfortgage bonds and about

bid¬

A.A'

':•//• y;

Service

,

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston CorpV, Harri¬
man Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb
& Co., Salomon^Bros. & Hutzler and Eastman Dillon,
Union Securities & Co. (jointly).

Probable

1.

Oct.

on

Transocean Corp.

(amounting to $25,000,000 at Dec. 31, 1956) and for new
construction. Underwriter—To be determined by com¬

bidding.

received

be

$30,000,000) will be issued and sold by the company
during the year 1957. Proceeds—To renay bank loans

tive

competitive

Probable bidders: Halsey, Stuart & Co.'- Inc.;
Morgan Stanley & Co. Bids — Tentatively expected to
ding.

Public Service Co. of Indiana, Inc.

Feb. 11 it

determined A by

be

••

,

in

the

offering

in¬

Inc. and Jay W. Kaufmann & Co.

The Commercial and Financial Chronicle

Number 5658

186

Volume

new standard-gauge
railroad
equipment estimated to cost

by

Halsey, Stuart Group
Offers

$2,847,500.

Equip. Tr. Ctfs.

members

the

of

offering

Dick & MerleInc. and group', .include:
associates are offering $2,200,000. Smith;;»R..f W. Pressprich & Co.;
of
Pittsburgh & Lake Erie RE. •Freeman & Co.; and McMaster
4*4% equipment trust certificates Hutchinson & Co.
maturing annually Aug. 15, 1958
to 1972, inclusive. The certificates
Prescott Adds to Staff
are priced to yield from 4.10%
to
Stuart

Halsey,

4.375%,
and

according

tive
bid

sale

at

won

was

has

become

yesterday

Prescott &

competi¬

(July

24)

Building,

oil

of 98.539%.

These

CLEVELAND, Ohio

York

certificates

secured

are

DIVIDEND

vester

AMKIIICAN OAS

members

of

Midwest

and

Sept.

Dividend

the

3,

record

A regular quarterly dividend of thirty/ \ six cents ($.36) per share on the
Common capital stock of the Company
issued and outstanding in the hands of the
public has been declared payable Sep¬
tember 10, 1957, to the holders of rec¬

with

on

Ex¬

ord

at

w> j

VANDERSTUCKEN, JR.,
Secretary.

preferred stock payable
1957, to stockholders of
the

at

of business

close

on

United States Pipe and Foundry Company
New York. N.

August 5, 1957.
GERARD

J. EGER, Secretary

Y., July 19, 1957

The Board of Directors this day declared a
quarterly dividend of thirty cents (30«) per
share
this

the

on

outstanding Common Stock

of

Company, payable September 16, 1957,
August 31, 1957.

to stockholders of record on

The transfer books will remain open,

RQSE SeCfetary

United States Pipe

July 24, 1957.

DIVIDEND

E. F.

per

close of business August 9,

the

1957.

•

quar¬

the

•

New

divi¬

a

standing and entitled to receive dividends,
payable September 16, 1957, to stockhold¬
ers of record at the close of business August
23, 1957.

dollar

one

seventy-five cents ($1.75)

share

Victor A.

Stock

Company have declared

terly dividend No. 156 of

COMPANY

AMI ELECTIUC

TEXAS GULFSULPHUR COMPANY
dend of 50 cents per share on the 10,020,000
shares of the Company's capital stock out¬

COMPANY

NOTICES

43

NOTICES

The Board of Directors has declared

HARVESTER

The Directors of International Har¬

Co., National City Bank

and

changes.

—

affiliated

INTERNATIONAL

INTtftMAHONU.

Common Slo«*k
;

Ptak

Award of the

Commission.

certificates

a

maturity

to

DIVIDEND

DIVIDEND NOTICES

With H. L. Jamieson
FRESNO, Calif. — Thomas M.
Kennedy is with H. L. Jamieson
Co., Inc., Bank of America Build¬
ing.

(Special to The Financial Chronicle)

being offered subject to
of the Interstate Com¬

are

approval
merce

Co.

&

(415)

MERCK & CO. INC.

NOTICES

and

t

Foundry Company

JOHN W. BRENNAN, Secretary & Treasurer

RAIIWAY, N. J.
TgaasassBBE Quarterly dividends

ALUMINIUM LIMITED
j

MERCK)!

the common stock,

(incorporated)

35^^

DIVIDEND
The Board of Directors lias de¬
clared

THE SOUTHERN COMPANY SYSTEM

quarterly div idend of
27l/> cents per share on the
outstanding shares of common
stock of the Company, payable
on September 6, 1957 to hold¬
ers

of

record

business

on

L. H.

at

the

stock, and $1.00
ferred

Georgia Power Company
On

July 17, 1957,

'

Gulf Power Company
Mississippi Power Company

August 5, 1957.

22Vii

of

dend

1957, to stockholders of record

declared

currency was

the

on

value shares of this company,

Jaeger,
Southern Services,

Treasurer and Secretary

Inc.

U. S.

the

at

no par

payable

close

tember 9,

September 5th, 1 957, to shareholders
of

record

of

close

the

at

on

October 1,

of business

JAMES

Montreal

Sep¬

1957.

quarter

Railway

a

Company

meeting held July 9, 1957,

regular quarterly dividend of seventy-five

share

MANUfACIUMNO.COWANY, WCD,v,l^"d °'ot Forty-five
Dividend No.

to

on

stockholders of record

August 15, 1957.

at

<*tSI

Cents

the close of business

New York, July 13, 1957.

A dividend

Common

A

ihare

•

RICHFIELD

LOEB,

^

shares

the

has

surplus

record

of

Secretary

One Broadway, New York 4, N. Y.

ber

|

sc

.

business

per

Common
declared

profits

15,

J. J. MAHER,

regular

quarterly dividend of
share on the Common

per

of

the

Stock

been

has

August
of

31,

record

NOTICE

Board

of

Directors

declared dividends

the $4.25

payable
holders
ness

August 15, 1957.

M. E.

GRIFFIN,
Secretary-Treasurer

1957.

Secretary.

on

29,

July

on

as

COMMON

24,

follows:

STOCK

share

per

DIVIDEND

Cumulative Preferred Stock,

September
of record

as

1957

27,

No. 107

stock¬

to

of the close of busi¬

On

July 17, 1957 a regu¬
quarterly dividend of 75
cents per share was declared
on
the Corporation's Com¬
mon Stock, payable Septem¬

September 3, 1957.

Quarterly
the

dividend

Common

1957

of

Stock,

$.25

per

payable

ANSLEY

WILCOX

lar

share

August

stockholders of record

to

the close of business August 5,

as

of

1957.

ber 14, 1957 to stockholders
of record at the close of busi¬

II, Secretary

ness on

calling...

its 3%% Convertible Debentures

August 15,1957.

Southern
Edison

of 1967

dividends

The Board of Directors has

the

following quarterly divi¬

dends:

A Great Name in Oil

October 14, 1957 at 106.65%

CUMULATIVE PREFERRED STOCK.
'

4.08% SERIES
Dividend No. 30

Niagara Falls, N. Y.

25'/j cents

4.24% SERIES

IOWA SOUTHERN

and they will no longer

UTILITIES COMPANY

relating

to

convertible

into which these debentures are

SOUTHERN

I

GAS j

NATURAL

Birmingham, Alabama

•

from

the

office of

may

!

the Treasurer.

DIVIDEND NOTICE
The Board of Directors has declared the

following

AMERICAN TELEPHONE AND




TELEGRAPH

,

regular quarterly dividends:

35% cents per share on its

■

•

•

;
■

4%% Preferred Stock ($30 par)
•

COMPANY

4 1 cents per

share

on

$1.76 Conv. Preferred Stock

its
($30 par)

i
•

32

share

its
Common Stock ($15 par)

195 Broadway,
New York

7, N. Y.

Vi centi

shore)

per

30% cents

per

shore.

•

Common Stock

Dividend No. 74

a

obtained

26

CUMULATIVE PREFERRED STOCK.

Dividend No. 39

;

r.s.u.Co.

Dividend No. 7

4.88% SERIES

COMPANY

and of a
the stock of A.T.&T.

Copies of the notice of redemption
Prospectus

shore)

per

CUMULATIVE PREFERRED STOCK,

1957, interest on these deben¬

be convertible.

California
Company

authorized the payment of

SINCLAIR
HOOKER ELECTROCHEMICAL COMPANY

After October 14,

payable

stockholders

to

NEW YORK 20, N.Y.

Notice

Quarterly dividend of $1.0625
on

tures will cease to accrue

declared

1957,

600 FIFTH AVENUE

The

on

A

30^

HOOKER

1957,

redemption

Stock has been

September 3,1957
of record August

stockholders

to

ended Decem¬

year

August

on

Preferred

declared payable

31, 1956, payable on September 13,
to stockholders of record at the
of

quarterly dividend of
share on the 5% Con¬

per

1957,
close

Dividend

A. T. & T. is

(70<)

of

been

net

Angeles 17, California

REDEMPTION

regular

31

vertible

of Southern Rail¬

today

of

Company for the fiscal

President

N. Y.

Brooklyn,

of

Oil Corporation

Executive Offices: 555 South Flower Street,
Los

13,

°f

6,491,000

on

Company

way

tockholders

OCt°berrd^''September
recor

Norman F. Simmonds, Secretary

of Seventy cents

stock without par value

p.y»"le

been

Stock has

^

be

Stock

15, 1957.

DIVIDEND NOTICE

out

for

Common

Aug. 16, 1957, who on that date hold
regularly issued Common Stock ($1.00
par) of this Company.

A

stock of this Corporation for the third
of the calendar year 1957, payable September

14,1957

of

holders

Southern

The Board of Directors, at a

per

dividend of fifty cents

a

($.50) per share payable Sept. 6, 1957,
to

woopall i n pus tries

RICHFIELD

cents

of

payment

DULLEA

A.

Secretary

dividend notice

declared

The Board of Directors has authorized the

WALTER E. FOX,

Secretary

August 5, 1957.,

July 17, 1957

Stock

DIVIDEND

Carl M. Anderson,

business

July 23, 1957

■'"■in..

de¬

clared, payable

share in

per

Common

pre¬

been

have

stock,

quarterly divi¬

a

Company

on

share on the

a

$4.00 convertible second

Alabama Power Company

close of

share

a

$3.50 cumulative preferred

the

NOTICE

Serving the Southeast through:

a

United States Lines

of 25a share on

^ WU

SOUTHERN COMPANY

THE

cents

per

on

all dividends
to

payable September 1, 1957,
stockholders of record August 15,1957.
EDWARD L. SHUTTS,

Ju'y 18, 1057

Chairman

:
.

■

j

The above dividends

able
A

regular quarterly divi-

dend of 50 cents

per

declared

share

the
Common Stock of Southern
has

been

on

August

31,

stockholders of
gust

are

pay¬

1957, to

record

Au¬

5. Checks will be mailed

Natural Gas Company, pay-

from the Companys office in
Los Angeles, August 30.

September 13, 1957 to
stockholders of record at the
close of business on August

July 19, 1957

able

30, 1957.
H. D.

McHENRY,

Vice President and Secretary.

Dated: July 20, 1957

p. c.

hale,

Treasurer

44

(410;

The

Commercial and Financial Chronicle

cumvent

ding.

Washington...
/j y| /|
.zX I MX

from the Nation'* Capital

proclamation to cir¬

emergency

BUSINESS BUZZ

Behind-the-Scene Interpretation*

Thursday, July 25, 1957

...

the

competitive bid¬

open,

He

confidence

expressed

will pass.

measure

fThis column is intended to re¬
flect the "behind the scene" inter¬

JL

pretation from the nation's Capital
and may or may not coincide with

14/

the "Chronicle's"

views.]

own

-

'

WASHINGTON, D. C. — Al¬
though the National Convention

question of depletion allowances.

is

the way from sand and gravel to
oil and natural gas.

three

years

President

M.

The

Vice-'

away,

Richard

Nixon

is

tax

concessions

the leading candidate
for the
"Republican presidential nomina¬

branches

tion.

from

the

"old

roc.mbers

Congress

sections

try. While there is
members

among

*md

House

the

spur

gas

ance

oil

on

he

should

minority

leader, is definitely
"running" in No. 2
position in the informal discus-/
sions on Capitol Hill.

and

study

wliqt

he

in

lie

The

While it has been overlooked
beneath

gress

to

came

a

when

close

Knowland

take up the civil
Senate

sider

voted

the

18

to

to

bor continues at

Prior to that there had existed

for

generation

a

High

informal

an

traditionally

The

conservative

been

an

Tuft

A.l

of

iiad

let

never

civil

the

tinue

generation of de¬

for

Money

petition

rights

certain

bill.
to

comes

a

the

1958
be

pass

However,
vote

either this year

will

to

before

it

or

national

greatly

eral

more

into

going to inquire
asserted "monopoly

efforts

most

be to

of

the

of

the

e

million

The

and

pars

'complaints cf various kinds that
thev plan to probe. Some of the

ficus.

insisting
that the price increase recently
•was
not
sufficiently
large to
cover
rising costs in their in¬

ducers have been fighting for a
long time to get the Eisenhower

administration to tighten up on
the imports of
foreign crude oil
in this country. As a
result, they
feel that

they

won a

first round

victory in view of the study bei ^g
initiated by Secretary of
*

Commerce Sinclair Weeks.

Meantime,
bility

that

there is
the Senate

*

possi¬
Finance

a

Committee may study the broad




s.v

l

Central

Washington:,

However,.his hill

all

on

National

a

of Review to

proposals
well

as

He

for

Board

including

land aeouisi-

as

"A

similar

a

is

one

man

on

than any ether in Congress. Fie
is a slam-bang inquisitor who

"lets

the

chips fall

where they

may."
He

ward

is

Nation

Truman

proclamation.
The

cannot

•

-

«

emergency

Representative

Hebert

Congressman, who is

ing blind,

says

titled

a

to

full

disclosure

spending of

newspaper

what

the

private

of the billions that the

spends,
UinVs

that

should

and

the

Pentagon

Louisianian

be

some

of

the

are producing in com¬
petition and price reduction.

be spending, fantastic

as

it

for

Industry

Competition

Senator

cf

Huey Long.
After
scandals, be was elected to
Congress
from
New
Orleans

restored

the

and until

other day

a

colleague

said

Hebert

had

saved

ducting

hearings

production

is

con¬

the

on

of

in

that

outside^ the

for

his

Subcommittee

and

chasing out in tue cpeu."

Stanford

bulletin,

July issue containing articles on
'"Weed Killers" for Cancer ;Rocketsounding

Research

the

Upper

Atmos¬

Institute, Menlo Park,
'
■

Calif./
Stock

Market

Analysis:

Facts

&

Principles—Plus three weeks of

regular

service,
ratings

strength
ican

including
of 500 stocks
Amer¬

—

Investors

Service,
Dept.
CF-101, Larchmont, N. Y.—$1.

The

Profitable

Enterprise
Economic
America

as

Partner

a

The

Private

States

in

the

Development of Latin

—

American

Street,

Partnership:

United

Story ot

United States

Inter-

Council, 60 West 55th
York 19, N. Y.—

New

paper.

Usurpers

—

Hamilton

Foes of Free

Man

—-

A.

Long—Post Print¬
ing Co., 18 Beekman Street, NewYork

en¬

gines.

38, N. Y.—paper—$1.

-

Would Restore Competition

Sealed

The

has

been

tee

policy of the

to

purchase

by

in Korea, open

bill that would restore competiI tive buying for the armed forces,

i The committee

The

was sus¬

President Eisenhower has
the

act.

hold

hear-

Korean

Joins

Pentagon will have avail¬

CLEVELAND.
W.

Voigt

Stiver

&

\

Chairman Vinson, who iiam°i
Hebert originally to the special

Therefore, the

secrecy continues to a great ex¬
tent at the Department of De¬

investigating subcommittee, de¬

fense.
Hebert, a conservative,
charges that millions and mil¬

clared that the main purpose
the

bidding

Defense

from

now

Co.,

—

with

i

Travcrs

Saunders,

Terminal

Tower

Building, members of the Midwest
Stock Exchange.

to

prohibit

is

Ohio

of

the

being wasted

Saunders, Sliver

(Special to Tue Fin.vncj\t. Chi: our cue

some

834.000.000,000
to
spend-during the current fiscal
year.
The stakes are high.

pended.

revoked

will

CLEVELAND, Ohio—Donald W.
is
with
Paine,
Webberr
Jackson
&
Curtis, Union Com¬
merce Building.
Riouw

! ings soon.

war

able

emergency

the Hebert

;

competitive

bidding

Paine, Webber Adds
(Special to The Financial CuponictjO

on

son of
the House Armed Serv1 ices Committee has introduced a

its

sea'ed bidding. When there was
a
National emergency on Dec.

16, 1950, at the outbreak of

commit¬

report, Chairman Carl Vin¬

Based

Competitive Bids

v=.

traditional

United States Government since

never

competition

may

Congress to compel "public pur¬

cost

airplane

the

of the National

Investigating Subcommittee. The

and

unless

repeal
Emergency pro ¬
vision, the most important thing

taxpayers "untold millions"
since he.Fas headed the Special
currently

they

He said

the

is

business

rightfully ex¬
pect to participate, he maintains.

the House Armed Services Com¬

mittee

of

which

on

be

never

competitors know the

nature

The

will

prices reduced in
in
the
American

nor

competition
way
of doing

duiing the reform and has been
here, continuously.
-

—

news

and recommendations

free

are

and

open

proposed

legislation

is

Department
using

the

of

TRAD3NC MAPKETS

1939

Botany Mills
A.
For financial institutions

S.

Campbell Co. Com.
Fashion Park

'

•'
.

'

''

.

1

'

Indian

The Ecuadorian
BOUGHT

•

SOLD

Corp. Ltd.
*

Head Mills

United States

Envelope
Morgan Engineering
National Co.

QUOTED

Riverside Cement

Flagg Utica

Carl Marks
FOREIGN

SECURITIES

doors

opened.
During the
rwrent fiscal vear, the Pentagon
will

ne¬

siana "scandals" after the death

A-

some

International

of

,

of

gotiations

his

city ed¬
broke the

Bear) from New Orleans. There
is a great cloak of secrecy sur¬

rounding the

go¬

the public is en¬

whether competition does in fact

itor,

Ed¬

F.

(pronounced

Post

phere; Message Transmission by
Meteor
Trail, etc. — Stanford

--

.

:

Capitol

Hill that the powerful
Pentagon
is
probablv more
"afraid" of
'

this

the

under

and

in the Pentagon main¬

that

because

Slam-Bang Inquisitor"

There

waste

on

longer conducted because
Pentagon still is operating

lions cf dollars

introduced

bill last year.

dustry.

pro¬

Democrat

in

nrwi-'e

disuosa1

are

attack

requirements

I and Study

—

Leith-Ross

in

Frederick

Banking Studies,
Secretariat General, 119 - Coolsingel, Rotterdam, Netherlands

i.is

no

the

average.

story that touched off the Loui¬

;

the

is

exist and

1865

*

that

local tax roRs.

his colleagues have re ceived

petroleum

one-fifth

the Continen¬

States.

Louisiana

mwH

Independent

or

mil¬

that

in this country and taking it off

up

Drplo'ion Allowances Being
Scrutinized

has

through its various agencies, is
buying i n too mu»h of the lard

prices.

smaller steel firms

policy

acres,

Government

Committee

Democrat

Long

re-examination

a

.■if is apparent

inquire into the steel

Tennessee

B.

his

Congressman

government's holdings of

tal United

fore¬

industry's methods of setting
The

com¬

proposed new Fed¬

cf all'the land in

the Anti-Trust Sub¬

One

a

lard-holding

408

are

some

Russell

would call for

Once the civil rights bill is out
the way, Senator Estes Ke-

tendencies."

coming

will; continue b r i s kthe money borrowers.

introduced

It

"Monopoly" Study Next

committee

not

are

period.

matter of fact

a

Senator

elections,"

softened.

in

at that!"

go

A onetime New Orleans

reiterat¬

are

the

on

$93

have security by trying to do a
lot of hiding behind closed doors.

.

Federal "Land Grab"

certainly be¬

of ti

fauver and

As

among

right-to-vote bill.

a

,

day,

tains

alive

be

final passage,

on

could turn out to be little
than

civil

a

still

indefinite

an

rales

down.

Slates

is

will

Fiscal authorities

'.{
a

It

than

more

tall, imposing Louisianian.

secrecy

side

appears

ing once again in the Nation's
Capital that the so-called tight
money situation is going to con¬

come

vote.

Now after

will

extend

coverage

extension

bate, the Congress of the United

of

to

seem,
a

The

in

4

right \

proposals of various kind

it

•

Congress returns in Janu¬
ary for the last session of the
85th Congress.

Ohio, Senator Kenneth
of Nebraska,
Senator
Styles Bridges of New Hemp.shire, and leaders before them,

fore

lion

when

Wherry

a

may

continue

tne workers

want

wage

session.

Senate " Leaders
Senator Robert

have just handed

Research Institute

tracked for the remainder of this

Republican

to

unions

wage

one.

like the late

could

Sil

—paper.

for
about 7,500,000 people, including
farmers.
However,
minimum

effective!

had

also

means that

minimum

that had

•existed

Foodie

me

Research

have money to spend.

Southern Democrats in the Sen¬
ate. Thus the coalition

this

ana

coalition and understanding be¬
tween Conservative Republicans
■and

to

seems

resignation and let it

marked rate.

a

Control
—

Institute

"It

rates

wage

Credit

W.

is brought

that the competition for la¬

say

—

War Conditions

Department and other
departments of the government

measure.

Anniversary Celebrations for

Orthodox

inquiry

Labor

con¬

C

Pennsylvania Bankers
Association, Box
152,
Harrisburg, Pa.—paper—$1.

Minimum Wage Drive

rights bill. The

71

&

Banks

into this country.

to

;

—

Open House, School Student Tours

from

Senate Finance Commit¬

ing foreign oil that

Minority

moved

allow-,

into the tax concessions involv¬

headlines, a signifi¬
thing took place in Con¬
the other day. An era

Reader

York

about right.

tee is currently making

the

tumult and
cant

Press,

personally lie
thought the allowances now per¬
were

In¬

Pageant
101 Fifth Avenue, .'New
3, N. Y.-^cloth—$3. ;

■

knew

mitted by law

Turn

Ferd Nau-

_,_V;

_

Irving I. Aekerman

year

said

—

Guide to Some Pitfalls of Business

M.

Congress

depletion

End of An Era

smothered

the

that

$4.95.

That

Sales

Prentice-Hall, Inc., EnCliffs, N. J. —cloth—

—

glewood

15%.

George

Letters

quiries Into
heim

allow¬

to

gas

earlier

thought

However,

a nee.

as

depletion

Secretary

Humphrey
said

Business

already pending that

are

reduce

Treasury

Senator William F. Knowland,conservative
Senate

ond

Bookshelf

for the future.

reserves

Bills

his nearest rival.

regarded

pro¬

is badly
needed to
the search for oil ana

on

would

the

.

gas

allowance

Senate

just how high
the
Vice-President's
political
stock is, there is a prevailing
opinion he has a substantial lead
over

and

to the industry.
Indus¬
try spokesmen maintain that the

unanimity4

no

of

oil

27\z %

coun¬

to

as

Man's

Congress, who hail

non

states,
are
grumbling
depletion allowances of

the

over

from

—

the

of

of

the

ducing

pros"—Republican

in

scattered

Business

Many of the members in both

This is the conviction of many
of

all

range

20

BROAD

STREET

TEL:.HANOVER 2-0050

•

&

Co. Inc.

SPECIALISTS.

NEW

«'•

YORK

5,

N.

TELETYPE

Y.*
NY 1-971

LERNER & GO.
Investment

Securities

10 Post Office Square. Boston 9, Mass.
Telephone
HUhbard 2-*990

Teletype
BS 69