The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
~Z__
ESTABLISHED 1S39
OivivtRs^jry
Reg. U. 8. Pat. Office
New York 7,
Number 5554
Volume 184
EDITORIAL
ir® See it
It
i
is
Members New York Stock Exchange
enough that both political
'parties will enter their election campaigns with-,
j out the aid of any outstanding record in Congress
<
to be
benefit when the
of much
voters
are
General Sarnoff says
Mutual Funds authority asserts on basis of the three ?
main influences
siderable risk.
ap-
{would have been definitely amusing
implies
that
serious
matters
it not
were
money,
{hopper. The "opposition" naturally did not parj ticularly wish to help the Administration "make
ization
normal
at
yields,
of Kremlin dictators
as
dare not rule out
the possibility of a surprise attack. Urges we remain
militarily strong, keeping ahead in science and technol¬
ogy, with adequate
supply of man-power. Asserting
Soviet structure of power is termite-eaten by chronic
fears, hatreds and oppressions; insists time is now
{
!
Maintaining
we even
propitious for clear-headed decision to fight and win
possibility of 25%
by the Dow-Jones Average.
y
decline to 390
record." It would have preferred to make one
{of its own to which candidates for office might
honored guests.
cun¬
of security. Cites
sense
democratic countries' reception
over-valuation.
current
into false
many
:•
con-
System, facilitating deflationary poli¬
analysis of "sentiment" fluctuation
Maintains
Kremlin's latest tactics have
.
senti-
Anticipating some
shading in earnings and diridends, and their capital-
in the
were
prices, namely
ningly lulled
Emphasizes non-political character of
Federal Reserve
cies.
fact
stock
on
ment, and profits, present market level embodies
,
'proached. The behavior of the present Congress
I for the
Corporation of America
Chairman of the Board, Radio
Senior Partner, Arthur Wiesenberger & Co.
■} this year, and so far as can be determined at this
\ time of any new policy or program which ought
Copy
a
By DAVID SARNOFF*
By ARTHUR WIESENBERGER*'
evident
now
Cents
New Look in the Cold Was
Today's Stock Maiket
is
40
Price
N. Y., Thursday, July 26, 1956
sees
the cold
Cvv...-
war.
a
'
The factors
affecting the stock market
under three
main
By money, I
point with pride. The trouble, or one of them,
that what the Administration proposed was
was
mean
of
level
interest
frequently what the Democratic politicians them¬
selves would have proposed, or actually had pro¬
The
net
effectively.
of
it
all
was
a
^
series
.
:
.
f
the
market.
maneuvers
Arthur Wiesenberger
larger part, of what he asked for, but with modirelatively minor changes of no
basic significance. There were a few exceptions,
MyVJ
-
The school bill which the Administra-
so-called, the Democratic
'
{
Continued
;
SECURITIES
dealers
/
•
mean
yield
:
Municipal
among
is
ness
unpleasant facts.
It
on
seems
to
me a
telephone:
the
experts,
to
seem
"new looks"
.
and
\
that
{ f Continued
y
NOW IN REGISTRATION
are
afforded
a
I ;don't
understand.
by Mr. Wiesenberger before British
Investment Trust Ltd., London, England.,
—
to
security.
Too
&
,
Liberty is not a set of laws and documents. It is a
of life based upon deep-rooted political, spiritual
Liberty is to our spirit what oxygen
way
and moral values.
i
39
General
}
*An
investors in
dealers and
now
registered with
v
Continued
STATE
and
SEC
"'Hi/:
State, Municipal
AND
MUNICIPAL
BONDS
,
(
.
"POCKET GUIDE FOR
*
TODAY'S INVESTOR"
PUBLIC
&
UTILITY
FOREIGN
Burnham
MEMBERS
NEW YORK
and
ON
Company
•
Dl 4-1400
Bond Dept.
Members
THE
Net Active Markets Maintained
To Dealers,
T. L.Watson &Co.
CANADIAN
Debentures Due May
American
Stock Exchange
1956
Orders Executed On All
CANADIW
STREET
BROAD
NEW YORK
4, N. Y.
DIRECT WIRES TO
DEPARTMENT
MONTREAL AND TORONTO
Goodbody & Co.
Price
103%
to
&
yield 4%
DoHi?no7i Securities
Geporatio?i
BRIDGEPORT
•
*
PERTH AMBOY
115 BROADWAY
1 NORTH LA SALLE ST.
NEW YORK
CHICAGO
40
Exchange Place, New York 5, N. Y.
Teletype NY 1 -702-3
WHitehall 4-8161
•
Analysis
Canada
MfcMBEKS NEW YORK STOCK EXCHANGE
COMPANY
Doniger, Inc.
our
Payable New York
Canadian Exchanges At Regular Rates
Teletype NY 1-2270
25
McGregorJ
1,
Non-Callable
Commissioh
Exchange
BANK
:
YORK 5
Commission
414%
Members
New York Stock
Chase Manhattan
Montreal Metropolitan
SECURITIES
the
Exchange
$75,000
1832
ESTABLISHED
Stock
Banks and Brokers
INVESTMENT
SECURITIES
York
34 offices from coast to coast
TB.rrVR« NY t-22M
CMUl COSUKNMAM
New
120 BROADWAY, NEW
Teletype: NY 1-708
DEPARTMENT
BOND
REQUEST
Harris, Upham & c2
EXCHANOES
ANO AMERICAN STOCK
YORK 5, N.Y.
OF NEW YORK
r.
NOW AVAILABLE
ARE
THE FIRST NATIONAL CITY BANK
'
^
Bonds and Notes
RAILROAD
SECURITIES
DAltAS
r
LATEST
15 BROAD STREET, NEW
■
Public Housing Agency
...
COPIES OF OUR
department
^OilUuoedt
26
cor¬
the
H
UNDERWRITERS
BANK
FIRST
page
Gen.
and
CORN EXCHANGE
<£oidJuve4t
on
Sarnoff at Department of Pennsylvania,
Legion Convention, .Philadelphia, Pa., July 21, 1956.
by
address
American
issues
leaders of
of nearly
forty years of Soviet manipulations, are again accepting
Communist change of tactics for a change of heart.
(
and potential undertakings in our "Securities in Registration" Section, starting on page 32.
CHEMICAL
of
nations are
many
a
pro-
DEALERS
ST.,N.Y.
even new,
today lapsing into a drowsy mood of
Sarnoff
David
false
It's
on page
Isles
Underwriters,
complete picture of
INDUSTRIAL
bond
not
are
slogans which have
weaken the free world in
the past. .Too many free
■>/.'
markets.
cun¬
soporific
served
business activity, consum-
talk
HAnover 2-3700
30 BROAD
complacency
ningly induced by the enemy through
everything that
highly important to modern
y;
porate securities
BROKERS
Securities
the recent
peril and
I am disturbed by evi¬
complacency, of a readi¬
tp substitute wishful hoping for
U. S. Government,
State and
of
sense
our
of
dences
subject everyone talks about, but one that few, even
a
28
on page
a
urgency.
demand, costs, profit margins, etc.
(cer-
party
prevailing
of
decline
cant-nary to the
Money and the Federal Reserve
'-
Money
*A
|
er
am
free-world opinion, in defiance of the lessons
got entangled with the segregation
issue and faded from view. In the field of social
security,
therefore deeply concerned, as I
mean
stocks.
as
critical stage.
it
I
know all of you are, over
moves
the
has entered
that
has to do with the profitability of
corporations, and this includes -such
factors
tion wanted,
t
it
By profits, I
might be described as a sort of jockeying
position and which usually ended in giving
President a considerable, perhaps even the
course.
is
common
of
.
or
.
Best expression of such sen¬
timent
fications and often
of
prices,* that make it
something in be¬
investors, businessmen,
corporations, and people generally,
for
sometimes
which
>for
bond
difficult
that intan¬
gible feeling pervading the people
who buy and sell stocks. Generally,
it fluctuates with stock prices, hut
{'js
J
and
By sentiment, I
opponents of the Administration to object very
or
rates
I welcome the
to borrow money.
suggested measures were not quite so ex¬
actly copied after Democratic models, they were
'so utterly in ^keeping with New Deal and JTair
Deal ideas that
really ^was not feasible for the
strenuously
money, sentiment, and profijts.
all the things that go to make for the
easy,
these
v
opportunity to voice some thoughts and
feelings on the worldwide struggle between freedom
and tyranny in which our country unavoidably plays a
key role. There is a spreading opinion that this struggle
'* —the Cold War, so-called—is taper¬
ing off. I believe, on the contrary,
be grouped
heads:
tween
posed at various times in the past. And when
may
■
upon
'
■
request to
Unlisted Trading Dept.
IRAHAUPT&CO.
Members
and
New
York Stock Exchange
other Principal
111 Broadway,
WOrth 4-6000
Boston
Exchanges
n. Y. s
Teletype NY
Telephone:
1-2768
Enterprise
2
The Commercial and Financial Chronicle
(378)
The Security
Dealers only
For Banks, Brokers,
participate and give their
in
Combustion Engineering Inc.
inquiries
investor
quickly answered.
in Chicago
1920
Member
Exchange
120 Broadway, New York 5
Teletype NY 1-40
WOrth 4-2300
BOSTON
PHILADELPHIA
Private
Wires
CHICAGO
•
SAN FRANCISCO
•
to
Principal Cities
which
outlets
convertible into
stock
shureat
any^e,
throug.i the filth day
Specialists in
call
date.
A
RIGHTS
&
SCRIP
w
Joseph
19524
Chairman
Santry,
Executive
Officer,
re-
j TfoPONNELL&fO.
cently
11
||
™Knts^'? approximate $180S?Qi nn^nn1C,last year.
compare with
$136,000,000
fl
!J
120 BROADWAY, NEW YORK B
•.
.7
stated.
/We
confidently
expect that for the full year total
Members
New York Stock Exchange
American Stock Exchange
■■
-
,
.
■
_
Unfilled orders
TEL. REctor 2-7815
of April
on
the books
budgeted
tjiert_Upe"^tures
for 1956." The
ment
states
two
American Furniture
years
merits for
Bassett Furniture Industries
during the
estimated.
Camp Manufacturing
The
gram
Life Insurance Co. of Va.
(1)
STRADER, TAYLOR & CO., Inc.
TWX
LY
a
ap-
mini-
at
plant
,
the
(2)
maifi
dlesigned
vessel™
77
Trading Markets
The
,
7
new
particularly
for
reaCtW
completion,
of
a
also
at
mechanized
E. 1. Korvette
Permanent 3 Cement
Profits
cauti0n.
,ivities
from
not
are
reaiizat)ie
are
to
but
1
ten
that
it
ac-
Net
Specialists in
12
NORTH and SOUTH
CAROLINA
in
(a) 1956
(a) 1955
1955
1954
1953
(a) 1952
1951
its
of
earn;ng p0Wer over
period ahead.
,
.
in
higher
than
commercial
high.
as
steam
of
.
comes
___
(a) Four
,:7
Co., Ltd.;
Established
7"!
1897
Home
Office Tokyo — 70 Branches
Brokers & Investment Bankers
,
111
■*
y
Broadway, N.Y. 6 COrtlandt 7-5680
was
the
at
use
Indeed, the
BOUGHT
SOLD
—
QUOTED
over¬
of higher steam pres-„
temperatures, have been
magnitude that the cost
of
kilowatt-hour
a
.
the
labor
fuel
and
77 ;7
.:
consumed
0f
in
progress
sale
equipment
of
been
;'7:7'-':
Protective
the
wheels
turn in this country?
''.,,>7-.:
30
we
;;
hasten
must
is .engaged
.
7.7;,777''
$46,339,000
<
7,;7'
7
along.
in
other
in " other
lines
related
fuel
of
MOREUND & CO.
Members
burning and steam generation. Its
marine
boilers
suitable
are
for
type of vessel from
ferry¬
boats to battleships. Smaller boil¬
every
for
industrial
applications
Midwest
Stock
Detroit
1051
Stock
Exchange
Exchange
Penobscot Building
DETROIT
an
oped a highly successful unit for
burning the black liquor residue
of the pulp-making process of the
;
1055
Information
Request
on
increasing portion of the
company's business. It has devel¬
>/..,/
Hospitals
activities which afford it effective
ers
you.
and
♦
Diversification
Combustion
,
Why
electric bills have been
steadily reduced over the years?
i;)r><;
Schools
in
Offices,
'
to
has been
Offer
Lines
Development
in the past
77; 7/77.7; 7J;
Latest
Other
But
,
New
Movable Partitions for
company's
the
making
Well, I'll tell
L A. DARLING CO.
Unusual
resi¬
has
costs
than cut in half
more
25 years.
the
to
in spite of increased
26, MICH.
Woodward 2-3855
Branch Office
•'
!
De 75
-Bay City, Mich.
industry, thereby recover¬
ing valuable chemicals for re-use,
paper
and, at the same time, generating
$2,145,000
158,000
large
amounts
from
this
$1,989,000
3,141,357
■The
the
$0.63
company
foremost
ranks
as
producers
of
one
of
coal
power plants and
and its pulverizers
mills,
material
extensively
End of Period
than
other
coal
are
$4V1NC£
214,000,000
125,100,000
109,700,000
170,300,000
132,400,000
218,100,000
216,000,000
v
Its
Home
which
has
Equipment
Division,
long been engaged in
the production of gas and electric
hot
water
developed
Ended
266,300,000
used in the chemical
industries.
$205,100,000
149,200,000
air
and
280,400,000
ideal
heaters, has recently
combination heating
a
conditioning
for
small-
wet
and
system
III
A
<B)
Net After
Net
Shares
Taxes
Per Share
Outstdg.
soil
new
course
double
of
Over-the-Counter
medium-
sized homes.
(Expressed in Thousands of Dollars)
Taxes
year
Unfilled Orders
$182,400,000
Net Before
Sales
last
$7,500,000.
cement
During Period
Table
steam.
alone
pulverizers for
II
New Orders Received
of
source
Quotation Services
pipe foundry
completion
is in
that
will
the present capacity.
for 42 Years
It is
the world's first
$48,895
___
Yamaichi
use
such
for
Profit
7
For current information
7
Call or write
% :v,'7'77>
Securities
and
dential user,
from
generating
the
to
sures
: of
,
„
mately 7 60%
business
Table
Operating
77y::;
the
times
ten
twice
indef-
an
3,183,744
$0.69
Net Sales
7;7-/
of steam generation 30 years ago,
and
the
steam
temperature is
Utilities
share
1
reached
pressure
a
years
be stirring due 7
improved Japanese economy. -,';f
to
appear
time Combustion entered the field
60% of Company Business With V
outstanding
Earned Billings
Tear
of
known
virtually
$2,204,000
April 30,1956
VIRGINIA—WEST VIRGINIA
has
of
practically
at
The pressure used at Eddystone
jnjbe
income
Mos.
'
guarantee, along with the activi- all
gains in power generation ef¬
Ues of the company in convenin large measure,
tional lines, the prospect oX growth ficiency,4 due,
$48,895,000
1953
to
developed for the Eddystone
totaled
per
through
the
is
five
deem it
activities
these
now
Philadelphia Elec¬
tric Company by Combustion En¬
gineering.
7; •_i7" ■
stress the probabil-
,mp0rtant to
uptrend
and
remaining
stationary levels for three
The
peak
Station
from
profits
years off.
branch offices
our
S TO CK S
after
continued
has
years
were
immediate
in
-
I APA N E S E
soon
highest " pressure
and
conditions projected
7.
anywhere
in
the
world.
They
impor-
these
these
are
jt is the consensus in
prospeet;
_
Net
boiler field and
temperature
company's nuclear
offer this word, of
I
activities,
the
$2,360,000
; 156,000
Tel. HAnever 2-1850
0£
.■V;,;7/7,7-77';
stress
Four Months to April
Period
RH 83 & 84
7
X
$41,000,generator,
Balance before interest
1929
Telephone 3-9137
,ance
cost
boiler
2,312,000 ;;
^reeue^Gompanu
RICHMOND, VIRGINIA
will
the
4,457,000
Shares
-
Bell System Teletype:
and
2,574,000
*
CRAIGIE&CO.
reactor
000
4,934,000
0. A. Sutton
Direct wires to
6,000 pounds per square inch and
a
temperature of 1200F. These
Table I
Interest
F. W.
The
taxes—___________
•
the
present
$9,000,000 'for ?research,
eluding
NY 1-1557
,
•
temperatures, such
temperatures.
in ;,
the
in-
$54,000,000
Income
North American Coal
MUNICIPAL BONDS
be
Net before taxes
Lone Star Steel
Since 1932
will
Exchange
Birmingham, Ala.
Mobile, Ala.
neering has for years specialized.
the middle '20's, Combustion
entered
and
at Windsor places the company in
a
position to assume a leading
role in the atomic power industry,
cost
Stock
New Orleans, La. -
The enlargement of the nuclear
thereafter began developing de¬
facilities at Chattanooga, and the
signs for higher steam pressures
completion of the new facilities
The
York
In
form
sales
New
that in which Combustion Engi¬
as
lowering protective diversification. The
fa- the cost of the electrical energy company today is a major factor
Chattanooga
nU
and
pressures
.
Leading Role m Atomic Power :
.
Development.
;
.
-
\x-..-,
Net
established
..
.
Chattanooga,
31 Wall St., N. Y.
.
,
the electric utilities.
.
,
The completion of
cilities
39
as
Windsor,
company's expansion proincludes the following six ".
What do y°u suppose
important projects:'
the principal factor in
Commonwealth Natural Gas
*
will
Members
Members American Stock Exchange
719 Rector St.. New York 6. N. Y.
,,
are
I am deeply impressed by this
*
nixt Prospect of growth for approxi-
disburse-
facilities
new
Steiner, Rouse & Co
'
HAnover 2-0700
'?•"/7 77'•>
;
;
_
manage-
that
proximate $20,000,000
LD
as
1, 1956 totaled $250,000,000—a record high,
r
.
Approximately $6,000,000 was
spent last year for new facilities,
Trading Interest* in
Lynchburg, Va.
Andrews, PosRothschild, New York
City. (Page 13)
,
7 7
:
&
ner
i
the industry that any worthwhile
.
V.
Chief
and
and
sales
and. 1955 is given in
1.
v
^
Although
the first four months
in
r
lable
Since 1917
||
Arthur Marx, of
•
manufacturing
Development Center in
Conn.
$14,000,000.
to the
Bought—Sold—Quoted
—
>
$30
prior
Corporation
plant, and
It has
been the constant
and
(6) A Nuclear Engineering and unremitting 7 research in
boiler
are
at
Rockwell
Marlin
'T
-
^
—
Dealers,
Inc., New
(Page 2)
7
;
v
or if called,
of
comparison
earnings
t
II
double-
the fastest growing indus-tries in the country, and (2) on
the
prospect' of j eventual
and
worthwhile additional profit from
its atomic energy activities. Combustion Engineering, Inc., is one of
the two largest domestic manufac-,
turers of steam generating equipment.
It
has
just successfully
completed a long-term financing
program
with
an
offering
of
$15,000,000
of
3%%
subordinated debentures, dated June 15,
1956 and due June 15, 1981. They
per
I
a
growth based
the expanding needs of
historic
are
tlfinilllllllllliiil
g
producing
>, r
Louisiana Securities
Inc.
capacity at Monongahela, Pa.
j
Raising Temperatures and •
^ Expansion at the St. Louis >i:sPressures 7;^7> 7^,/,; ;
in-
current
among
Corporation
Stock
affording
in association with
upon
its
New Yoi1( Hanseatic
American
as
reasonable
a
verizer Division.
the
(4) Additional
Alabama &
Selections
Engineering,
Securities
j
for the Raymond Pul-
Engi-
barrelled prospect of
(1)
Associate
Inc.,
neering,
come
Established
of
Thursday, July 26, 1956
Charles T. Greene of All States
(3) The purchase of a new plant
promptly
>
Combustion
nor
more than 100,000 tons annually
on practically an automatic basis.
"
I recommend Combustion
Your orders will be
capable
foundry
T. GREENE
New York City
Over-the-Counter securities.
executed and your
be,
to
offer to sell the securities discussed.)
as an
All States Securities Dealers, Inc.,
than
more
be regarded,
CHARLES
nationwide net¬
markets
to
particular security.
a
intended
not
are
Their
.
Week's
Participants and
York City.
private wires, maintains
primary
400
they
are
large trading department, sup¬
a
for favoring
reasons
(The articles contained in this forum
Try "HANSEATIC"
work of
week, a different group of experts
field from all sections of the country
in the investment and advisory
Looking for'^Market
plemented by
This
Forum
A continuons forum in which, each
Next Time You Are
Our
I Like Best
.
.
$4,442
$4,778
3,183,744
fully mechanized
foundry for the production of soil
4,114
4,301
$2,204
1,989
$0.69
46,339
0.63
3,141,357
pipe and fittings. Pipe will be
trifically
has
estimated, will be 20%
135,778
10,114*
11,374
5,625
1.78
150,462
12,969
13,744
6,611
2.11
120,625
16,354
16,690
7,361
2.54
3,164,994
3,129,384
2,903,391
137,846
13,265
13,637
5,935
2.05
2,896,323
2.08
cen-
2,896,323
113,897
months
ended
14,887
April
30.
15,925
<b)
Adjusted
6,025
for
3-for-l
split,
April
27,
1956.
cast
taken
perfect.
by
more
a
than
Production
process
a
that
decade
National Quotation Bureau
Incorporated
to
it is
less than
Established 1913
costs,
46 Front Street
CHICAGO
Continued
on
page
13
New York
BAN
4, N.Y.
FRANCISCO
Volume
184
Number 5554
:
.
.
The Commercial and Financial Chronicle
3'
(379)
The Financing of United States
I
■
v
r
*>/•'
t
■
i
By AUGUST MAFFRY*
Vs:-'-
f
:•
;
ing how U. S.
:
our
exports;
1.
Bank
pays for its imports, and rest of world pays for
and second, the method of financing trade in
International
and
/under the American
Bank loans
aid
loans
with
and
/■ i"
our
'
:
>
Articles and News'
j
******
;
.
New Look in.the
Cover
.
.
-
.
■
.
.
two
are
rather,.'
obivous approaches to my subject.
One would deal with the financ-
in
in
and v
sense
■
would revolve
around
two
\
Wm&^
does
tries,
for its miand
'
ports?
does
rest
of
world
jyrffl
the
for
United.. States
second
ap.
deal with
me
other
the
are
the
!
services,
and
loans,
:
.
4
how
the
United-States
its imports. This is a
question which rarely arises in
the United States today because
exports from the United
regularly exceed imports into the
United States.
In this sense, the
United States has no problem of
paying for its imports as uoeuun-
the
tries
of
imports
to
outrun
of
saying
which
tend
Another
exports.
Somary
LITHIUM CORP.
7
•
D. Orrick__
9
McLEAN
since
American
the
last
aid
ten
has
years
way
Let
Stock
International Finance Corporation Beginning Operations_____
period
to
meeting
dollar requirements of the
ing
United
and
hence
States
same
thing
which
that
is
the
J.F. Reilly&Co.,
f As We See It
Business Man's
♦
Coming
the
rest of
exports
in
,4
■?; 44
.
•' ;.'.y
;
43
4'4"'
v.;-4;
Event^ in the Investment Field-.
Dealer-Broker Investment
8
Recommeridations_-._____i.________
I
Ultrasonic
8
15
From Washington Ahead of the News—Carlisle
a
Teletype NY 1-4643
15
Bookshelf___
Einzig: "Britain's Autumn Prospects"
financ-
to
Stocks->--___i____________^^.__
Inc.
Broadway, New York 4
DIgby 4-4970
__Cover
,i'.4
•
42
/
(Editorial)
} Bank and Insurance
Indications of Current Business Activity./
1
Bargeron_
Hoving Corp.
11
Pacific Uranium
.42
____^
'V..
Mutual Funds
40
4 NSTA Notes
0f the
|or
Rights
25
(Boxed)
Regular Features
balance-of-payments sense. Dollar
payments for
imports into
the
united States met more than 50%
goocj
United
&
16
It's the Individual That Counts!
aggregated
discuss briefly how each "
principal sources of dollar
SUppiy
contributed
during
the;
World
14
The
me
the
RARE METALS
^Richard B. Johnsomi—
;
^
pOStwar
HYCON MFG.
12
pro-
war.
INDUSTRIES
Dynamic Forces in Operation Affecting Our Economy
,
requirements, and payments
arKj services, the latter ;;
consisting chiefly of ocean trans.r r"
States tenders in payment for its
poration
and
tourism, - together
imports are universally acceptable accounted for
65%." Economic aid
because they command goods and
from the United States Govern/*
services
everywhere or may ha. ment
through its grants and loans
used freely,; to acquire dollar astG foreign countries provided 25%
the
dollars
the
6
World Trade: Gateway to Peace,
Prosperity and Real Progress V
excess of dollar supply over doljar requirements during the last
„
August Maffry
financing of United
for
pays
Cherr____
MATERIALS
on the Dangers of the Present Economic Situation
4/ -—Nicholas J. Campbell, Jr.
ing of United States foreign trade ican goods, that is, demand rea balance-of-payments point
stricted by import and exchange
of view and pose, first, the ques- controls.
'
4
/
to
5
Economics^ for Teen-Age Students—Thomas
world's
from
as
STRATEGIC
"
A—-
Enforcing the Securities Acts—Andrew
counhas ex+v
means
nearly
States trade in the sense of terms,
$n billion.
The result has been
instruments, and techniques, with an accumulation of foreign dollar
particular reference for present assets,
predominantly at short- ?■
pui poses to banking techniques. I term and
mainly on official acpropose to take both approaches count/ This has
occurred, to be
even at the risk of being diffuse.
sure, Sunder
conditions
of
reLet me begin with the financ- stricted
foreign demand for Amerr ";
tion
Reflections
—Felix
dollar
requirements, as we
using the term, arose in large
JHH;grams
would
proach
grants
the 4 various
The
exports?
Bierdemah
Our Rosy Outlook—Samuel
||I| 'part because the dollar supply was
jjjfj available, as has been clearly the
i|y| case with grants and loans under
M
the
pay
R.
J.'Shelly—10
requirements
for, or utilization of, dollars by 4-.Will the Bubble Be
Pricked?—Roger W. Babson
j
11
a -considerable
margin.
Indeed,"
the
Haw
and
ceeded
States
pay
^-William
vate investment in foreign
■Bl'*
How
United
government
and
■
military expenditures abroad^ pri- <•'
mainquest ions:
goods
]
Telephone: WHitehall 4-6551
4
/ Trust Investors'./Viewpoint in Managing Individual Accounts
fact, the amount of
supplied, during the post¬
period by the United States
imports' of
Dept.
NEW YORK
1
to the rest of the world by way of
,
payments
-.
Supplied >
actual
war
balance-
a
of
of Dollars
WALL STREET,
Canadian Cement: Grinding Out New
Capacity
dollars
ing of United States foreign trade
4
Excess
a
99
,
.
4;Ira U. Cobleigh
there
Obsolete Securities
' /Today's Stock Market-*-Arthur Wiesenberger
V
Cover
>I '■ *< •' ;• . • >'.
V
•
.•••..'•4
•
■
.The Financing of United States Foreign Trade—August Maffry
3
surplus agricultural products. > V:4''%V
suppose
*•
picks 'em up!
,' Page
Cold War—David Sarnoff
^
'
I
cash
-
-
grants
for obsoletes. The easier
INDEX
and the sale abroad;of
programs,
THE HARDER THEY FALL
-r
>
sense
;;
i. '■
'">4.
-
of terms, instruments, and banking techniques. Analyzes
in detail financing techniques in connection with Export-Import
•5^>
'»
V
Prominent international trade expert exhaustively explores subject of foreign trade financing from twin approaches of analyz-
•:
4'
f
Vice-President, Irving Trust Company, New York
-
4___—
8
...
News About Banks and Bankers*.
Observations—A.
Wilfred
Lone Star Steel
17
May
Singer, Bean
5
Governments..
23
'
Our Reporter
on
&
-
-
sets.
.
in
addition.
more
familiar and presently
4
~
41
Public Utility Securities.
27
23
Securities Now; in
Mackie,
HA 2-0270
32
INC.
40 Exchange PI., N.
Y.
Teletype NY 1-1825 & 1-4844
:
pressing question is how the
V Sources of Dollars
pays for United
There were three other imporexports.- During the
ten tant, sources of dollars for for-
more
'_/_
Railroad Securities
.
The
Our Reporter's Report
IFires
Direct
to
rest of the would
States
years
1955),
since World War II (1946- eign countries during the period:
payments
to the United (l) Military expenditures abroad
goods and services and consisting of troop pay and of pur-
,
States for
certain
Securities
other
payments;; totaled chases of goods and services in
This aggregate utili- foreign countries for military use,
zation of dollars by the rest of the which
amounted to 8%* of total
$176 billion.
shall
dollar requirements; (2) New for-
take bv definition to represent tne
take by definition to renresent the
s
the period
requirements
during the period.
we
dollars
for
;
.
and
Offerings____L______i
I
28
You—By Wallace Streete___
16
4.
;
Murphy Corp.*
2
The State of Trade and Industry
4
Philadelphia a Chicago • Los Angeles
36
Corner_^___________
The Security I Like Best___l__.
,
account> which am0unted to 5%
requirements; and (3) Private
The question remittances
Security
Salesman's
(■ The Market.
ei%n investment abroad on private
-world during
world
Prospective
4
Registration^__;____^___________i
Washington and You
4
Gulf
/
44
j
Sulphur
and
pensions, which
is:'Where did the dollars come amounted to 3%. Thus,Vas we
qHpnuatp
ih<>
from and how adequate was the have already noted, the dollar requirements
of
the : rest of
the
supply to meet the requirements. worid were
over-supplied through 1
;
Pan American
Sulphur
.
""TT/per
by Mr. Mattry, delivered beinternational
Banking
Summer School, Rutgers University, New
Brunswick, New Jersey, July 16, 1956.
fort
the
Ninth
Revlon*
imports of goods and services into
the United States, government aid,
"to
J
COTlZlTltlCCl 0Yi p(LQ6 lO
.
•«
Published
PREFERRED STOCKS
have specialized in
;
Weekly
-
"
*
1
Drapers' Gardens, London,
land, c/o Edwards A Smith.
CHRONICLE
FINANCIAL
»
25
COMPANY, Publishers
Park Place,
REctor
Members
TELEPHONE
Albany
BROAD
HAnover
•
Nashville
New York
Stock Exchange
"
:
WILLIAM
Boston
•
TELETYPE
•
•
Chicago
Schenectady
•
•
2-9570
9576
to
N.
Glens Falls
Y.
1-5
;
*Prospectus
on
request
25, 1942, at the post office at New
York, N. Y„ under the Act of March 8, 1879.
state
SEIBERT,
July
26,
President.
>
1956
corporation
city
news,
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bank
clearings,
etc.).
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Other
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hi.
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of
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and
per
$63.00
year;
per
year.
Note^-On
rate
of
—
Monthly,
(Foreifen postage extra.)
account
of
exchange,
the
39
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Publications
Quotation Record
$40.00 per year.
the
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8.
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Thursday
and
Rates
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in
United
States,
U.
Possessions, Territories
and
Members
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DANA
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second-plass matter Febru¬
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(geiieral news and ad-vertlsing Issue) and every Monday (com¬
plete statistical issue — market quotation
Every
records,
^
Capsule*
ary
-
-
.
as
New York 7, N. Y.
HERBERT D. SE1BERT, Editor A Publisher
ST., NEW YORK 4, N. Y.
24300
General
Rng-
Copyright 19S6 by William B. Dana
Company
Reentered
"
25
C.
.
Reg. U. 8. Patent Office
WILLIAM B. DANA
Spencer Trask &. Co.
R.
COMMERCIAL and
The
For many years we
Twice
•
fluctuations la
remittances
for for¬
eign subscriptions and advertisements mast
be mud* in New York run a*.
NY 1-4040 &
Direct
PHILADELPHIA
j
4041
Wires to
DENVER
SALT LAKE CITY
'
The Commercial and Financial Chronicle
4
.
.
.
Thursday, July 26, 1956
(380)
i,
A
Js,
Canadian Cement—
Economist
Enterprise
and
topical look at cement production
St. Lawrence, with some notes
A
urgent
and-persistent construction de¬
mand for cement that new, and
Thus it is
in the
1920's
(which
led
dreary 30's,
cement
with
selling as low
a
bar¬
and
sev¬
50c
as
rel,
eral
com¬
Co.,
from
American
projected
of
plant
advanced
the
commodity
supply.
'
,
been
The
sales
barrels
3
it
sales
1929
14
sion in the
output
for
'
$27 million
plant at
3 million ca¬
pacity expected to be ready by
January 1957. Out West, the In¬
land Cement Co. Ltd. has 900,000
1955.
with
expan¬
(In
a
lbs.; it is 376 lbs. in the U. S.)
foregoing
will
serve
to
point up the perennial shortage
Canada
in
ness
is
the post¬
,
Canadian mills.
This latter will be our topic for
today.
of
new
of
Canada
capacity
But postwar economic
lation
in
where
is
subsequently,
(and
in
A further decline was noted
will
Supplies of gypsum, needed
finishing the cement, and coal
plant, will be brought
economically by deep water
firm.
for
in
•
say
Cement.
Portland
Limited
a
newest one
very
Ontario
Ontario
Company
and
on
was
incorpo¬
functional
It is only
150 water miles from Toronto and
advantages.
this
of
cost
Ro¬
chester, is to be $16,300,000. When
is
and
ing
spectus,
51/£%
in
deben¬
curities.
and
■
This
panoramic
.
favorable
factors
extraordinarily
for
plant con¬
struction, operation, and sales.
.First, the Picton property is on
Ontario, and well situated
the building of a deep water
dock.' The land itself (700 acres)
Lake
for
Complete
W
of
not
it
did
barrels
million
2
over
meet
to
its
a
The
7
extensive
1955
such
floor
Members
New York Stock
Exchange
•
we
a
term
future
market.
price,
careful
of
SAN FRANCISCO
•
PORTLAND
LOS ANGELES
«
HONOLULU
•
•
NEW YORK
AND
•
OTHER
CHICAGO
PACIFIC
•
•
CITIES
SEATTLE
even
principle.
on
more
relish
not
the
thought of a long steel
on industry is growing
And the pinch
this
.since
journal.) ■'*'..7*
in serious
help to
will be slow to fill
of steel's customers
week
would
be
not
steel* supply* pipelines
of
are
much
in
its
fourth
week
and
production losses
the effect on industry will be
away as December, or early
1957, it notes. Among
will be short of steel by October or November are
construction steel fabricators, wire and wire product
users,
Each
the
.
demand.
Some
of
such
as
ones,
too.
It
may
vestigate them.
pay
you
above
since
the
mention
matter
of
which
problems of
customers
get
5% in June, in accordance with the
a
a
postwar record was established; the toll mounted
year
ago
to
reach the highest level
for
any
June
1940.
Failures occurred at the rate of 49.2 for each 10,000 businesses
listed
in
the
Dun
&
Dun's Failure Index.
annual basis and
was
Bradstreet
"Reference
Book,"
according to
The index extends monthly mortality to an
is adjusted for seasonal fluctuations.
Exceeding
month since May 1942, the June failure rate compared with
failures for each 10,000 listed enterprises last year. But it was
any
41
considerably less severe than the
the
Liabilities
involved
in
this year,
prewar rate
tl)ie
June
of 64 in 1940.
casualties
fell 28%
to
exceeded in February and May
it is larger than any month of 1955.
$43,013,000. While this volume
Le¬
to in¬
this year,
21%
the
Lone Star, Penn-Dixie or
Dragon.
Canada has some good
to
Business failures dipped
of
American market
of the past, decade have
stocks
Not
usual seasonal downtrend. However, as in the previous five months
most rewarding
cement
of the strike compounds the start-up
day
mills.
priority once shipments are resumed. It will take no less than
two weeks, and probably three weeks, before steel production
and supply lines are back to normal once the walkout ends, con¬
cludes "The Iron Age."
So
high,
BOSTON
COAST
appar¬
7
customers, warehouses and auto and auto parts makers.
on,
future
been
—-****">-* Private leased radiotelegraph circuit to Honolulu
that
tinplate
,
t
as
those
not by whim or ca¬
but only after the most
research, and calculation
equities
leading commodity exchanges
an
hit 9,000,000 ingot tons,
far
the
longpromise of
capacity,
gives
demand
decided
Honolulu Stock Exchange • Chicago Board of Trade
and
money
the day, continues this trade
walkout
the
to
dramatic upturn in cement
keeping pace.
Each one of
plant expansions mentioned
San Francisco Stock Exchange
days after
production is resumed.
felt
witnessing, in Can¬
are
productive
lot Angeles Stock Exchange • Midwest Stock Exchange • American Stock Exchange
and other
to
ada,
■
on
probablv 30%
consumers
With
walls,
(replacing
the
sions
Co.
this week,
compromising to end the strike, since the
labor are still far apart, perhaps as
does
settlement
A
certain
roof and
steel and
materials) add new dimen¬
while
Dean Witter
after
panels,
slabs
other
PRIVATE LEASED WIRE SYSTEM
com¬
steel
cents
election year.
serious by
these
highway
pre-stressed concrete, and
as
precast
DISTRIBUTORS
the week end totaled 178,366,000 bar¬
most
UNDERWRITERS
DEALERS
lot of
and
12
As of now,
require¬
while technological improvements
BROKERS
to
an
trouble.
as
building
in
Provinces, heavy plant and
housing construction, and the new
industrial impetus stemming from
the
Trans
Canada
Pipeline, all
project
new
cement
demands;
a
Administration
more
The St. Lawrence Seaway,
ments.
11
as
strike in
of
year,
trade
The pressure from government and industry is hard to ignore.
import
to
Institute,
777: &.v77w '-w :7-'
indRistry, if the strike is not settled
companies
much
should, how¬
have
to
Petroleum
the past Tuesday, only three
It will take
present need, and the manner
in due
course,
steel
resumed
steel
to describe some areas
ever, serve
American
ently hopeless deadlock, adds this trade paper.
in which Canada proposes,
of
the
Neither side wants that to happen and that is why negotiations
were
supply
combination
gasoline stocks edged lower during the week
states
already strong, will be intensified, states "The Iron Age,"
metalworking weekly.
; v.7 -'
i =v"
sure,
necessarily
and demand factors is
swift and sketchy. It
a
13,
135,000 to 1,226,900 during the
bureau disclosed.
:777777777:'
national
se¬
treatment
cement
Canadian
certain
-7
...
^
April
its
Layoffs from vacation
was
the
In
for complete enlighten¬
respecting
Lake
Ontario
Co.
as
negotiators will be called to Washington, where government pres¬
1956
Cement
initial claims reflected the passing of the
the layoffs came from
workers ineligible for vacation pay filed to
country's
July
This
for
Portland
eligible
183,000 barrels under the preceding week and
pared with 158,822,000 barrels a year earlier.
$1,018.95 in U. S. cur¬
rency.
You are respectfully re¬
ferred to the prospectus of June
27,
down to 1,600—the smallest
directly reflected in the figures.
Motor fuel in storage at
rels.
unit
subscription
The
of $700
consisted
not
organization for the oil industry.
who offered, by pro¬
a
unique
investment
firms
INVESTMENT SERVICE
^
The
ended
underwrit¬
American
and
were
Insured unemployment rose by
recently financed
impressive group of Ca¬
an
not
are
was
week ended July 7, the
storage terminals in addition.
nadian
layoffs
shutdowns/ it said, were about 65,000 above the' level in late June,
before the shutdowns started.
V; t
1
**
The plant was
by
7
;
determine their rights to insurance benefits.
an
are
strike
shutdowns
the
out of line. And
aggregate plant
not
here there
V
While the drop in
going estimate of new cement mill
is $10 a barrel, the cost of this
facility
the bureau to the passing of the
by
peak.
vacation shutdown peak, it added, most of
standard
the
that
consider
you
dropped
for unemployment benefits,
But a
number of states, the bureau stated, noted effects of the strike on
other industries. However, it added, the onjy significant one was
Pennsylvania, where initial claims were up more than 5,300.
steel
new
and
Toronto
as
unemployment insurance benefits
attributed
was
strikers
Since
the
aggregate plant
(crushed limestone right from the
quarry),i^dock, plus the storage
at
not
was
weekly volume in three months.
mill,
elements
economy
bring about the decline.- In the seven major auto producing states,
silos for 100,000 barrels,
plus bagging facilities. (This, to
continue customer supply, when
winter closes Lake Ontario.)
overall
for
the agency reported, new
are
storage
The
the
on
It also said the fewer layoffs in the auto industry helped
;
plans to build, at each point, bulk
cement
claims
vacation shutdown
the company
and
markets
choice
These
Rochester.
from
90
strike
steel
decline
The
location enjoys certain
marketing
Ingot output
The impact
sharp as past
ago.
year
a
by 58,500 to 258,200 during the week ended July 14, the United
States Department of Labor's Bureau of Labor Statistics reports.
facilities just outlined,
the Picton
600,000 ton per year ag¬
gregate plant.
Why at Picton?
Because
it
has
there-a
unique
huge
the
Initial
probably
will
production plummeted below
walkouts.
supply the cement boats.)
In addition
to the completely
ment
Cement
23, 1956 to build
at Picton, Ontario, a 1,650,000 bar¬
rel
(376 pounds)
cement plant,
ura¬
&
of
employment front it is reported
at 15% of capacity, compared with 91% last year.
ing aggregates, and cement, onto
market-bound
vessels.
(Canada
Lines
the
Steel
was
which
equally well for load¬
Steamship
7:7' * -77:7V70'>
result of the steel strike/1: '7
a
that transportation,
mining and construction industries were largely responsible for
the layoff of roughly 100,000 workers. Compared with the overall
employment level of more than 66,000,000 persons these layoffs
are not too significant.
ferred, and 75 shares of common
1957
few
as
On
vessels; and moved from dock to
serve
as
closing of factories for the vacation period.
4%
plant by a conveyor system
will
the past week in total industrial
report from the Federal Reserve Board discloses the fact
that in the first week of July industrial production declined by
to fuel the
—all
for
Business Failures
A
efficient de¬
most
and
latest
the
sign; and constructed by an in¬
ternationally known engineering
Ontario,
up"
Industry
production due to the steel strike and to seasonal factors such
,
capacity
new
We'd like to
about the
Lake
rated
in
"revved
there—Lake
strike at Le Due
in
1947; vast
mineral expansion in iron, nickel,
nium,
being
words
1946).
and
Canadian
of
is
million
7
delivery.
growth, sparked by the oil
zinc, aluminum
demand
intense
and popu¬
copper,
built
the
1
itself, to be'
virtually astride the quarry,
have two kilns, and be of
tures, 25 shares of 5% ($10 par)
convertible (into 2 common) pre¬
%
roughly
Index
Price
Auto Production
and
mill
cement
The
where
cement is sold and used. The most
(11,690,000
total
it
the
of
most
Trade
Commodity Price Index
Food
option only
and shale land under
nine miles, away,,,,,
package.
Cement
Company
Ltd.
provided, together, a plant ca¬
pacity, more than sufficient to
all
that
seen
and
Output
Carloadings
Retail
Picton, the company
at
plants mentioned have been
located
in
Ontario
and
Quebec
lumbia
serve
finally, near¬
The last factor
important,
Production
Electric
State of Trade
700)
there's
to
new
In the period between 1928 and
>1946, three principal producing
companies, Canada Cement Com¬
pany
Ltd.,
St. Mary's
Cement
Company Ltd., and British Co¬
barrel
especially
be
and
and
markets.
to
will
and indicate some of
the reasons why
(1) there has
been a substantial import of for¬
eign cement from England, Bel-7gium and Germany and (2) there
is a large scale program for the
years,
building
to receive coal,
ship products;
The
of cement in
im¬
shale
and
limestone
of
transport
350
war
anywhere. There should be
good quarry supply of the right
mediately at hand; accessibility to
barrel is
a
a
kind
million barrels
Canada
into production
second unit doubling that
coming
just
of cement and the
25.1
new
output, ready in 1957.
Cement plants can't be located
that
its producers carried
to
up
1929
in
the dynamic
use
in process on a
now
expansion, with a
Clarkson, Ont., of
Moving
barrels
rating to¬
St. Lawrence Cement Co.
production in November
with 1 Vz million barrels; and
1933; and ; barrels
that
.
surpassed.
of
capacity
1954
dismally
in
1948
million
(1948)
year
*
barrels
2
a
started
is
experience
slipped
until
not
were
from
>
along the same lines.
figure of 12V4 million
in
was
still
cement
million
to
end—and
in short
year
is
'
Canadian
has
day.
has
barrel capacity
million
million
100
from
1956
small
a
and
1950
in
organized
1945, to reach 295 mil¬
the
at
Cement,
in
Newfoundland,
began
operations in 1952. It sold 400,000
barrels last year. Ciment Quebec
Inc.
at
St. Basile,
Quebec, was
pansion
gin¬
gerly.
At an increasingly rapid
rate, however, since 1945, cement
productive capacity in the U. S.
lion
mention.
plant
ex-
r
barrels in
to
Star
North
-
has
And
1957.
capacity in
like
we'd
pproached
problem
a
the
Cobleign
600,000 in 1946 to 3 million
there have been some newcomers
management
U.
Cement
Columbia
British
1957;
panies in re¬
organization),
Ira
that, since 1946, Canada
the dominant pro¬
ducer, has spent over $60 million
increasing its capacity from 10
million barrels in 1945, to about
24 million by the end of 1956. St.
Mary's
Cement
has
expanded
from 1% million capacity in 1946
to 3
million to be available in
Cement
tne
to
inevitable.
were
165 acres
77'i 77
The
,
has several hundred acres of clay
,
in pulp, paper and heavy
built expanded, plants
pacity
but
on
Steel
for
(of
tested by core drillings,
enough limestone to run
the new mill fori 43 years.
The
the
limestone
■
industry ha^e created such
up
and
cement
quality,
correct
composition,
chemical
clay, too, is a basic ingredient and
in addition to that overlying the
north of the
use
expansion.
on
upsurges
postwar expansion
production in the U.S.
has been repeatedly cited. Mind¬
ful
of the
substantial over-caThe delayed
of cement
;
vi-77^7:77
of
is
limestone
and
COBLEIGH
;
solid
virtually
of
plateau
f
limestone overlaid with clay. The
■ •
Grinding Out New Capacity
■By IRA U.
a
was
higher than in June 1955 in all industry groups
Some 24% more retail and service busi¬
failed than a year ago, while wholesale and construction
Mortality
was
except manufacturing.
nesses
Continued
on
page
30
Volume
184
Number 5554
The Commercial and Financial Chronicle
.
,.
(381)
5
between
Tiust Investors'
U
■
'
f
_
_la
•
1
i
By WILLIAM
Soviet Industrial Progress and East-West
; Trade Implications
The vast advance made
The First National Bank,
In
by the Soviets with their machine tool
industry, consistent with their great increases in engineering
harbors the
power,
broadest
implications
tripling of such facilities since World
the
of
and
West
f
'
War II is
"•
T.:
m
t
X
A
-
'-v'/ ' •'?/'
•
tool
x-
-
industry
granted by A. I.
of Machine Tools of the
weight
'
even
may
basis
than
that of
larger
be
now
the
United
on
4
tools
will
be
ume;
which
years
twice
at
least
might
double
give
the
Wilfred
May
as
;tool outnut
out!
as
four
much total tonnage of macnine
the U. S. tool industry now turns
At
the
risk
out
I
that
/•-///'/■'
of
being
would
there
/-';//'//:/: //
Plan.
West
the
accede
to
to
the
pleas
to
the
On
news
have>
portant
—
Split-lessly
Co.'s
such
success
materialize—without
demolish
empirically
will
the
benefit
of
Institutional Portfolio
and That Variable
In
an
will
I
a
of
a
let
me
no
the
to
about
in
tn
As is
avoid
-
■
;
/
that
in
the
one
letters
the
stage
—
of
Pliny
A. D.
divide
bonds,
growth
probably obvious,
the
in
the
the
on
of
operations. We
within
market
that
we
correction
envision
,//';>•
v*
.
v
y?*,
•.
»
Continued
;
" ■,
.■
say
—
has been appointed
on page
I
the
mean
•
is
Investments
39
of
cedure
-
our
predicated
are
we
,
on
pro-.-
institution
own
account.
officers
of
financial
im-,
J? pf01nJ
0j
jike
us^
you
as
individuals,
definitely seek aggressive manage-
aeiinueiy see«. aggressive manage
subject, of
r
management is stagnating with old
.
da
™
coniinueq on page dl
;
We
/
pleased to
are
the
announce
appointment of
»
/;;////mr.
frank a. wood
foresight;'
as
Manager of the Bond Department and
and we do not have a crystal ball
we
can
peer
and fore-
tell the future—we are human
that
do
./
(I
*
some
ogrrize basically the fact that there
'
ations V- that
///'■/MR.
i*
>•
*
V
'
-
f
...
as
r
..
'
a
1905
,
»
Exchange
♦
120 Broadway, New York 5, N. Y. V
and
there is
road to travel.
'
JAMES F. REILLY
-l
-
.
'
-
a-
•
•
•
'
•
* *
*
'
^
4
*
,
'
Manager of the Municipal Department
r
(*"
'•
if.
know; made millions in the
has told how easy it is
—he says "if you are ready and
able to give up everything else,
and
will study the market
and
•
-
r
ESTABLISHED 1891
'Members New York Stock
Exchange and
as you
other leading Stock
market,
the
by
Mr.
Bierdeman
Investment, Seminar.
Turner,
Investment
before
Eppler. Guerin
Bankers,
Dallas.'
"
f
.*./*'.■
of investments,
call it a science, is probablyT the
most
inexact
science
there is.- Bernard Baruch, whom,
and
4'
■\' b
no
you can
♦An, address
*-
•
oper-
simply
<
.
/
t.'*
,
f
complicated field
investment analysis
of
*
not
give us
credit for that at times).*-We rec-
*
* i
u
is
into which
*
.
institutions, it is obvious that all
That there are numerous ideas
as to the percentage distribution
•
//*•"--- Detroit—Asbury Park
,
,
_
the basic fact that
gifted with
not
The/science
.
w.
1S obvious, at least to those
■
\
*
Members New York Stock
Speculative
_
one
.Established
Not
course.t0 the needs- requirements,-ment — we desire to have no par,
and objectives of each individual ticipation in companies where the
/,/•//./-;>,
•
The investment policy and
-
"
move-
,1 contrary to public opinion, we are
not ensconced in an ivory tower
7;-
.
ap-
The Inexact Science of
is simply, in this
::/• Sales Manager of our firm
can
Management
investment
and
aU know that any so called
mediately^ w°ul<i
out that that policy
no
Aggressive
.
/
"
,/•
im-
have
we
—
r-
most recent illness*
*
.*
and
of ^ou who know me personally,
or who are familiar with other
1/3 in
professional wants to hedge
first;
timp
this
at
investments
our
correction prior to the President's
know
"
will
long-term cyclical
a
money
Immediately I should
y°u
Levels.
Business
American people
the
Mr. Harold s. mcgay, Jr.
.it
will
we
in money rate paper and
equities. / ",•,■/',:;/•/,■
order
;
/
we
industries
actually welcomed the recent stock
pleasure in announcing that
•
of
use
an/ ever increasing
living on the part of
and
standard of
J
**,'■<'. u*i,
'
produce
between
rate preferreds and
commons.
Broadly speaking, we
have a goal of approximately 2/3
and
possibly a modest reprobably are more
concerned about the potentialities
of
inflation
due
to
population
■
.
in
<
declining stage of operations,
substantial market
"it is safer
Diversification Formulas
and
cession
/
We take
as
80%
mediately grant you fully that
within the framework of a short
time lapse, some stocks of companies which are in a long-term
go-
—
100
year.
low
as
and
which appear to be stagnating or
which appear to be in a declining
we
well
diversifi-
of
new
in
yet
'iim-
sO
depression,
pro-
Policy, Risk J
Annuity■ /{ /•;/;
v/.
and
conservative in¬
companies within those industries
to test the uncertainties of fortune
/
touch
—
WV
broadly speaking
this space on July 12, we cited, on the basis
of the demonstrated performance record, the risk attending invest¬
ment in various types of non-equity securities, as well-as in the;
.
as
commons
article, "The 'Variable' Common Stock and the Institu¬
; ?
preferreds,
as
diversify investments
as
concerns
industries
companies within those in-
only
it
Q.iff™
tional Alternatives," in
'
35%
growth
issues,
and
because
of
various factors which I will touch
upon later, we have a preference
of
avoiding
cyclical
industries
such
as
amusements,
machine
tools, and liquor,
a gambler,
clairvoyant
lion — you
say
believer
doctrine
found this statement
;/:/;/////;/;/. //'';:///.
Economic
—
inconsistent.)
surely seems
back
Briefly,
not only
upfthese
Taking
through the daily press by Judge Goldstein, the split-crusader on
behalf of the Grand Street Boys, that he "is pleased" with the
arrangement,
;
equally
high
Wherever possible, we use a com¬
bination program of income and
care-
as
Certainly, this idea of di-
written
The actual objectives of the
(4)
named—
split haranguers, who persist in their contention that the public
simply will not buy stock at over $50 or so.
(The statement
offering
cation.
ing
of
of
courage
firm
as
and
commons
and
other
and the
there
nerve
versification is
The investment in specific
industries in specific issues.
;j,
the
to
(5)
banker
of
a
in
bonds
Chinaman's chance."
a
established
are:
individual account.
prospective
argument
are
van-
The legal, instrument,
(3)
per share seems to
be strongly welcomed by the stockholding
subscribers-designate—as confirmed by the rise in the outstanding
shares (which will carry the rights) to their highest price since
the 1935 depression days.
/■'//;
Should
pre¬
should be
bonds and preferreds.
sense
Basically,
my
moral requirements.
/1
large offering of 6 million shares at the subscription price of $100
selling—it
50-50
a
and
It
ment. We would prefer not to run
(1) Business—Economic—Marthe ris.-c of attempting to pick that
ket Levels.//'■>"
and
short-term cycle as far as our m(2) ' The Investment Policy of dustries, but also, as practically stitutional operations
are conour own institution.
^
every Trust Department does, we
cerned.
„
Telegraph
around
bonds
by a-Variety :of possessions." /".<*(>■/^reciaiion and/or profits, but it
bearing orFThe /iDvest-,j^ifpiuuli»,'^l.j. m .1 .iO-v/r r
/ ' would be hi a short-term cycle
a
These
is almost up to South Africa's. Should
this be true, the fillip to the Kremlin's imperialistic and satelliteacquisition and domination ambitions is obvious.
J
and
the
ment of funds in trust accounts.
the Soviet's gold production
Success
sixth
have
factors, which
now covered 25% in gold, and the
gold-plus-ti.e-dollar; and, furthermore, tnat
Telephone
in
commons.
recommended
65%
take it off till night; if you
all that, and in addition
and
these
around
clusion teat the Russian ruble is
American
vs
out, however, that some
seemingly
conservative v institu¬
medical student studies
a
the
problems
ous
this week, disclosed his decisive findings
in the value of the Iron Curtain country
currencies, in contrast to the worsening situation throughout the
rest of the world. Whereas the pound sterling is allegedly becom¬
ing "shakier and shakier" with a total dollar and gold covf rage of
only $2.3 billion, his surveys plus official data lead him to the con¬
ATT's Prospective
were most varied but
center
pointed
a
20%
listed
have the cool
primarily
about the
Picks Currency Yearbqok
The
to
ferreds
do
can
the
like
as
never
order
of
would
talk
of recent marked gains
in
expected,
distribution
anatomy, and will glue your nose
to the ticker tape at the opening
of
every
day of the year and
narrow
scope
currency
by 25%
fully
presentation, I
conference attending the launching olthe second edition of
satellites
In
stock
every
inves-
Another Front
on
be
seemed
trust objectives.
we so-
down
front, too, have the Iron Curtain.countries
emerged as a new. threat, if the currently revealed analysis of an
international monetary expert > are to be credited. Franz Pick, in
a
influ-
institu-
tors.
restrictions on exporting machine tools pursuant to some idealistic
mirages about "East-West" trade, it would not only help the Rus¬
sians to outstrip us in a vital area over, but as well enable toe early
turning-off of sucn "trade" by our newly-acquired "customers."
The Soviet's Growing Threat
factors
tional
the
remove
five
called
to
were
point
the deci-
ence
(,
Thus:
to
sions of
/
ele-
about
major
which
out the current Five-Year
carry
too
like
are
vitally important revelation made by the Russian Minister/
a considerable portion of the-Soviet's current output is
allocated directly to her machine tool building industry
itself, to enlarge its capacity to
California, and included three
from Texas. These replies, as may
stitutions recommended
to check with outside sources,
cir¬
to
ex¬
including diversification formulas using
"prudent" rule, need
that
being
unusual
no
cumstances. Replies were received
from 26 institutions scattered from
Maine to Florida, from New York
tions
mentary,
Russia's machine tool production in 1958 also will apparently
A
beneficiaries and
correction
a.
deterrent to sound investment
no
individuality of
outstrip Britain's tool industry, at 150,000 tons; and that of West
Germany, at 160,000 tons.
was
a
new
fully discre¬
tionary trust fund of $100,000 in
cash, with no specific claims of
are
of
v
A.
levels
aggressive—but not speculative—management, research de¬
partments; and record of dividends, and properly financed
and capitalized issues. Delves into trust
principles, meaning
vol¬
Russia
and market
business
combination of income and growth issues of firms possessing
States.
within
decisions
vestment
a
prespnt
/.
-
Furthermore, Minister Kostousov claims that
by 1960 the USSR's manufacture of machine
•
y-
Fort Worth
change; and adopts neither a bullish nor bearish view in being
cautious, conservative, and in not striving for dynamic growth.
Mr. Bierdeman describes the factors influencing trust in¬
■/"/•■//.■//
recent interview
Republics, to Burnham Finney,5
Editor of American
Machinist, is of consider¬
able timely importance.
Total production of the Russian machine
m
and
investment officers of banks and
trust, companies throughout the
United invest
States asking how they
would
j
sees further buying opportunities;
quality—recession-prospect or not;
believes capital gains tax
question of East-
Union of Soviet
1
'
:
Officer,
companies undergoing
some
from their 1955-56 tops;
recommends upgrading in
well
as
ascertaining "economic,
favors the issues of
potential,
possibilities.
a
Kostousov, Minister
-M
war
progress;
the
on
preferreds,
article
an
the magazine "Trust and Estates"
■
generally at all-time peaks," Texan trust investment officer
man¬
Russians'
important because
industrialization
trade
Hence
h
••
The
us.
resulting benefit to her
to her
the connotations
as
_
for
A
BIERDEMAN *
R.
Vice-President and Investment
;
is most aptly illustrated
which appeared in
in
Managing Individual Accounts
By A. WILFRED MAY
v
bonds,
commons
Viewpoint in
.
•
Y
and Commodity Exchanges
X1S Broadway, New York 6,
*
I
J
Offices in 33 Cities/
y
N. Y.
-
^
,
6
The Commercial and Financial Chronicle
(382)
increased
Our Rosy
steadily. This backlog
probably is Jn the neighborhood
of more than "$285 billion today.
I say "probably" because there is
a difference of opinion about what
actually constitutes personal sav¬
ings. I happen to subscribe to the
economists' theory that personal
savings are those assets which
people put aside that are readily
Outlook
By SAMUEL CHEER*
of Merchandising
Senior Vice-President in Charge
Young & Rubicam, Inc.
•U
Mr. Cherr denies
possibility of critical depression ever again
shock absorbers
bitting United States. Cites new and effective
and stabilizers for our economy in the form of
dynamically
our
growing population, the Federal Reserve System, the
available
special
benefits.
prosperity.'
■
It
is
mean
crisis
a
in which business
so
;
falls
Y--.--.
■'
off
sharply that
there
mil¬
are
lions of
unem-
and
ployed
there is
se¬
a
;
j
.
r
<
you
providing
people with
enough food
be
may
Statistics
cite
life. That sitnation, in my
opinion, none
of you
will
in
interested
some
convincing
are
so
I
Product,
few
a
on
National
Gross
discretionary
spending
and the nation's backlog of per¬
Samuel Cherr
;.Yy
You
see.
will
sonal
Y'Y;Y/;
see
assets
to
substantiate
my
confidence in the long-term gen¬
business
eral business outlook.
swings, up and down. They are as
as your heartbeat.
Life
! pulsates and so does the economy.
Therefore, we are bound to have
some years which are better than
others.
Adjustments, or rolling
adjustments, as modern econo¬
mists term them, however,
are
not likely to become even mild
"depressions" because individual
1 businesses are not as dependent as
formerly.
•;.( ' ■;
:YY,Y
'
r
We
,
greater long haul prosperity than
any we have seen spring — not
statistics—but
irom
realization
found
ent
projecting
that
a
the
pro¬
pres¬
and spirit
people are
economy
American
from
exist
now
from
or
any
ever
of the
totally
others that
have
existed
ruled
outmoded
now
have
definitely
not
,1
r .
1
Our
dynamically growing pop¬
tr,ue. ~ •
■
ulation probably is the most im¬
In earlier days, for example, .we
portant shock absorber.
This is
heard a lot about the so-called so
because, unlike in China and
Malthusian theory — the theory
India, America's expanding popu¬
that population, when unchecked, lation is
comprised of individuals
goes
on
increasing in a much who want things. They are reared
higher ratio than the means of fiom infancy to strive for more
subsistence can be increased and and better
products and services,
that
the
inevitable result is a of
every conceivable kind, than
population that cannot be fed their parents had. Naturally, these
adequately.
almost insatiable desires make for
x-octay, of course, the Malthusian
greater and greater sales oppor¬
theory does not make sense here. tunities. Every year for example,
..
,
.
.
number of American mouths
The
has
be fed
to
since
the
the
of
than
so
much
population that
limiting the acreage plant¬
ed to crops, while shipping our
surplus farm products to the rest
we
our
to become
1955
Another
They
bales
than they did in
1954—and six
million more than they did, on
an
average, in the preceding ten
more
million
total
acre
reduction
a
in
of
one
of the truly remark¬
of economy which formerly
intermeshed so
thoroughly
type
their
was
that
which
possible
—and thereby upsets the formerly
type
ab¬
able phenomena of our particular
four
plantings.- Y;
Y. The
shock
economy
This is
performance
years—and all this despite
important
our
is inherent
in its very complexity and size;
for it has grown to a point where
individual businesses
no
longer
are as dependent on one another
as they were.1
)
of American cotton growers.
produced two million
destined
concerns are
enormously rich.
sorber to
of the world.
the
business
can
are
Witness
present rate of population
growth, there is brought into our
economy a new market the size of
Philadelphia.
That
means,
of
course, that many present Ameri¬
century.
Meanwhile, productivity of Amer¬
ican farms has increased
faster
the
at
than doubled
more
turn
economy
if anything happened to
one
the
others
were
thrown
out of
alignment.
This
is no longer necessarily so.
In
accepted 'Malthusian
dogma! of 194u Fora uad a long strike, and
economic
texc booKS—is not too
the entire steel industry was out
well understood today even in the
for two months. In the past such
all
segment
makes farm productivity
would
strikes
in
1950
one
a
tailspin. Then
the
of
the
thrown
have
United States into
serious
most
strikes in the history of organized
labor shut down Chrysler/second
automobile
manufacturer
one hundred
days. What happened? The na¬
tion's total output of goods and
services held steady in 1949. And
in 1950 it actually went ahead by
largest
this
in
no
country, for
American
it
where
economy,
developed
has
ever,
■
10.8%. vYYYY-Y' Y Y'-
less than
The
.
"
Thursday, July 26, 1956
.
Population Growth
come
Gross Na¬
United
States
where it has all
tional Product (the total spending anywhere else in the entire world. come to
pass. One reason for this,
Never, in the world's history,
of everybody in the United States
it seems to me, is that so many of
have so many people shared so
—business, Government and con¬
us were taught economics in terms
generously in the fruits of the
sumers) upwards to at least $513
of
such inanimate objects—pro¬
nation's productivity.
I do not
billion by 1965 and that estimate
duction statistics, earning figures,
mean to imply that everybody in
allows for the possibility of an
flow charts, trend tables, and so
the United States is getting his
intermediate
setback.
(In
1955
forth—without giving any weight
or
her just rewards—that would
Gross National Product was $387,to that one priceless and indis¬
be nothing short of Utopia!
Yet,
200,000,000 and this year is run¬
pensable ingredient in the whole
never
before
has
the
average
ning at an average rate of $398,formula' for our national success
citizens received so large a share
600,000,000.) There may be a pe¬
of the wealth which he or she —namely, the forward looking at¬
riod of gestation about 1959.
By
titude
of
our
Former Chain Reaction
people.
And of
/:'Y;YY /YY/YY
then we shall probably have had helps to create.
course that optimistic psychology
A quarter of a century ago a
I wonder how many of you re¬
five years of relatively uninter¬
is
the very
key to our whole
recession in one segment of the
rupted progress. Then, I think, alize that the United States liter¬ economy! Y
American economy usually pro¬
there is going to be a visible but ally is the only country in, theduced a chain reaction.
1 Nowhere else in the world, that
General
temporary settling down period world today where a capitalistic
business in the United States to¬
I have ever been or heard of, is
which may last about two years.
economy like ours—an economy*
day is not so dependent on all of
there such an optimistic psychol¬
free
from
undue
governmental
Bullish as this long-term pre¬
its parts.
For example, Detroit
ogy on the part of the people, as
diction of $513 billion gross Na-' control—actually is at work. Else¬
..department stores report gains in
that which we enjoy in America
most people have lived
tional Product by 1965 may ap¬ where,
sales as unemployment in automotheir entire lives under the dom¬ today.
iive and allied industries widens. pear, it results from a formula
"True," you may say, "but didn't
ination of the state or the church.
Such a situation results from new we have worked out, which is
we
have the same sort of econ¬
much
more
conservative
than It is not so many years ago, for
shock
absorbers
built
into
the
omy;
the same kind of people;
American economy or the more many others I have seen. Indeed, example, that it was a criminal
offense to loan money at a pre¬ and the same psychology among
efficient use of existing economic many accredited economists are
scribed
rate
of
interest.
The the people of this country back
even
more
optimistic about the
are
inevitable
.
predict that none of you will ever
again see a; depression in the
different
.
•
'
was
figures
and
thought
processes United States?
leading to the above conclusions. My reasons for predicting a far
necessities of
ever
—
savings
lower in 1955 than it was for sev¬
In view of this fact
of our clients.
of
and other bare
?
':T
eral years past, probably because
the: public felt more secure and,
,;\Y: '■
rious problem
:
future
some
'Y A"
therefore, believed that their sav¬
any other nationals because people ings need not be as large as in
in the United States are convinced the past. Even so, tne. cumulative
that they only have to excel iri total of personal liquid assets ap¬
their work to-become rich or proximating $285.4 billion was an
really enjoy a bright future.
all-time record, and a figure oneThese assumptions are basic to fourth higner than that of 1950
our beliefs in the long-term pros¬
—just five years earlier.
perity of the United States. For
Statistics, though convincing,
the
last
five
years
they have are
but
reflections
of
beliefs,
guided our agency in formulating thoughts, decisions and acts of
and preparing the merchandising, people.
advertising and promotion plans
Why do I have the temerity to
highly improbable that
anyone
ever
again will see a
■; depression in
the United States.
When I speak of a depression, I
-
at
use
The annual rate of
research, labor anions, insurance
Hence, anticipates many years of
Government's taxing powers,
and
for
time.;'Y '/"■
SEC,
the basis of those
,,
would
to
take
how¬
point
a
series
a
of
disasters to disrupt it. Witness the
that
fact
as
nation
a
we
wound
of the best year's
businesses on record, yet impor¬
tant industries, like textiles and
jewelry, were in the doldrums due
to a variety of reasons. In the past
their difficulties might have set
up
1955 with
off
a
one
which would
chain reaction
,
stabilizers.
^
long-term
States.,.
Some of these new economic
shock absorbers, which I propose
to discuss; include: a
dynamically
•growing population, each year we
:
are
}
•
;
adding
a new
United
investments;
the Government's constructive new
use of its taxing
powers; the sharp
omists
church
refer
to as "discretionary
By that, as you know,
they mean the amount of money
which people have left over, to
frowned
on
that
practice
Perhaps you remember that Old
Testament passage
in Exodus—
22nd Chapter—25th Verse which
,
for
the
basic
necessities
of
life
degree—but
economic
.
Y"' y Y
; : y
Y'Yp/v
to that is "Yes—to
we
...
certain
lacked
instruments
a
or
safe¬
interest
mobile.
my
take
from
him.
If
ever
you
your
pledge,
you
before the
sun
,
Health Services.
answer
guards then, which we are fortu¬
nate enough to enj oy today."
of
•
Uriemployment Insurance, Old Age
Insurance, Veterans' Pensions and
My
"If you lend money to any
people with you who is
poor, you shall not be to him a
creditor, and you shall not exact
says
neighbor's garment in
shall restore it to him
goes down; for that
is his covering, it is his mantle
save or to spend as they
please/ for his body; in what else shall he
after they have bought and paid sleep?"
' •:
•
• Y.<
income."
growth of applied product-service
research; and numerous compara¬
tively recent innovations; such as,
in
repercussions on
us all. For example, sales of De¬
troit department stores a number
1929—at the start of the last of weeks this year showed gains
big depression?"
called it usury.
and
Discretionary Income
market the size
American
the
particular significance also,
I believe, is the fact that along
with the rapid growth in popu¬
lation in the United States, there
has
a
been
disproportionately
rapid increase, in what the econ¬
giYeri the public confidence in the
of
of
Of
of .Philadelphia; the Securities and
Exchange Commission, which has
future
future
You /and
•
J*-who
are
fortunate
have had serious
.
These
economic
like shock
safeguards
absorbers
of
an
are
auto¬
just
imitations of horse-drawn
bug¬
gies, did not have shock absorb¬
ers.
A ride, in such early open
touring cars nearly broke1 your
back. If you hit the slightest de-.
pression in the road you nearly
bounced
Early
out
automobiles,
of
the
car.
Then
•
over
the
weeks
like
Such store sales in
year
a
months of 1956 were up 4%
the
same
ago.
the first four
over
period of 1955, thereby,
matching the
nation-wide per¬
centage sales gains of department
stores in the same months.
And
Detroit
department
store
showing took place despite
widening unemployment in that
city this year. -Today, however,
we keep riding along on a fairly
even
plane, oven .though one or
more 1 of
our
"wheels" may be
this
sales
.
hitting
some /rough
the way:
Y
;vf
;YY
spots
,
along
;YY;
—namely, food, clothing, shelter enough to
/ Shock Absorber AvY YY
enjoy the advantages Hartford invented a v shock ab¬ K
Existing economic safeguards of
and, of course, taxes!
of America's free enterprise—are sorber.
This ^■wa^vad./'enoniipus'
quarter century ago also are
A Another YY and more specific
Discretionary income of Amer¬ apt to take for granted -that- for advance. .However/ the shock ab¬
better understood and,
shock absorber in America's econ¬
therefore, ica's
165,000,000 people in 1955 the average man- to make -money sorber was hooked up to the two
mo;re efficiently employed as, for
omy, is the power of the Federal
front wheels as a single unit, so
approximated $1.41 billion,
The: through individual initiative and
Reserve System. As you know/the
example, 'the - Federal
Reserve
corresponding
figure
was
only daring is a universally accepted if one wheel hit a hole, the other
System. *
Federal Reserve Board controls
a
.
,
$107.5
Basic to the better use of exist¬
ing
shock
absorbers
and
the
,
utilization of the "many new Ones
arje
America's
philosophy * and
psychology. Individual initiative
is
encouraged more than in any
other place on earth. As a
result,
Americans enjoy free enterprise
and
all
of
its
advantages.
They
bave produced the highest stand¬
ard of
living ever known any¬
where.
billion
recently .as six1 and age-old practice. But it is
and eleven years ago in not. Free enterprise and individ¬
was only $91 billion.
As a ual initiative are relatively new.
matter of fact, way back in 192& Everywhere, until Comparatively
the nation's "total gross personal recently, the average citizen either
income before paying for the basic was under control of the church
as
years ago
1945 it
necessities of life was only $83.1
billion. Even though due allow¬
ance
is
made
for
the
growth of
of
or
he
some
reigning monarch—and
transacted business, under
the
Guild
system, or some other set
population and for the decrease in- of rigidly enforced controls.
the value 6f the dollar which have
taken place since then, thd aver¬
The
to
traditional
controls/
lead
wheel also
was affected.
Next we
the flow of: money in this country
developed separate shock absorb¬
---both credit and cash—by con¬
ers for each wheel, such as those
trolling the rates of interest at
commonly usedtoday.
If one which
wheel hits
a bump you go down,
still keep moving along
in comparative equilibrium., Then
one
car
maker /developed,
and
many other cars soon will have it,
a whole new system of shock ab¬
sorbers. A car so equipped rides
along on the level, no matter what
its wheel may hit.
but
you
point out that the rules Of
age
American, apparently,
has; the old school professional econo¬
Coupled with optimism, which' about as much money available,
mists—as some of you may have
In much the same manner, the
causes Americans to
buy on the to spend in any way he pleases studied—were not
predicated on business economy has had injected
instalment plan and risk the capi¬ —for the luxuries of life—as he
the type of economy which we into it a whole new system of
tal in promising new
ventures, is had to spend in total back in 1929. enjoy in the United States
Some of them
today. shock absorbers.
thq aggressive, competitive spirit
As a result of* the steady in¬ Those rules were laid
down, for existed before the bleak depres¬
of pur people. Americans compete
crease
in
discretionary income, the most part, on the basis of what sion days of the, early 'thirties, but
against each other more than do the nation's
backlog of personal had happened in the past, not on either they were not used prop¬
•An address by Mr. Cherr' before the liquid assets—that is of cash, plus what is happening, nor on what erly or used too late—so they are
E and other Government
xnerchand sH* str.ff of Yrune &
Rubicam,
Savings may be expected to happen. Most comparatively new. Let me enu¬
at the Yale Club, June 29, 1956.
Bonds and Life Insurance — has prognostications
undertaken
on merate a few of these.
me
money is
also
ficial
loaned. The Board
other bene¬
on
the nation's
exerts " marry *
influences
credit, through its supervision of
the 12 regional Federal Reserve
Banks and their 23 branches,
'
Some of you who have been
building or buying new houses
may have been directly affected
.,t
by this regulatory action. On one
occasion you may have been able
to get mortgage money very easily
—and on another you may have
had trouble in getting it. Recently
you
may have had
to pay 5%
interest as compared with 4% a
year ago. If you "asked whv, your
banker may have replied "Read
Continued
on
page
20
Volume 184
Number 5554 1
.
.
The Commercial arid Financial Chronicle
.mediate movement and not a precursor
a
depression. If
of
bti'sines^
the Dangers of
The Present Economic Situation=3=
on
•
•VOVMI
v
recession
UVVIIVAIIiv
By FELIX SOMARY
WIIUUUVII
little
should
threaten
doubt that the
serious
S
reserve
sys-
tern would take steps to check the
movement."
"
Doctor of Law and Political. Economy
tistics
include
"goods"
—which is
are
these
a
products
stance, the immense
as
"durable goods"
on .even
* on
mistake, since these
not assets but liabilities to the
national economy.
The inventions succeed
other
more
ing—which do not appear in the
budget — long-term credit for
cheaply built houses, extended al¬
one
an¬
most
rapidly than they
can
real test of creditworthiness.
be digested by
familiar—and
stances.
tunities for businessmen and their
ceived
from at least 15 brokers that "con¬
workers, but exert a severely de¬
structive effect on the productive
ditions
authority takes 'c. exception To the
serious crisis in the U. S. is preventable
by government intervention with inflation.
experiences
other
in
Cites
disastrous
system.
And
countries,
including France where
they were also excused as constituting a ^creeping" inflation.
Decries our excessive spending in the non-defense area, and
subsidies in housing. Insists America is living beyond its
means, and if the boom is - not stopped with the greatest
energy—even with heavy losses and some unemployment—the
result may be fatal to the economic system.
- >,
In
the
Summer
of
••
1955
the
At that
with
crisis
market and totai
such
that
as
of
again,
occur
1930
looked
could
nomic
of
a
t-eiix
numerous
in¬
remain
to
quiet in order not. to shake public
confidence. Three decades ago I
ignored
This
more
a
.
similar
,of the Prince
peace
time
? of
'v
then
and
But
in
que
been
threatened
be
one
remaining^twenty as
view of the strained
December,
in
depressions
I had
was
I
■,
'
1955, ; the
are gone
forever."
myself, but it
brought to my notice by nuAmerican
sometimes
acquaintances,
with
questioning and
with
Sarcastic com-
spmetimes
A declaration of such far-
ments.
reaching
demanded
scope
Whatever
the
a
consequences
the
tremendous dangers of
security. I have therefore
resolved to reject all counsel of
caution, and to discuss, here at the
citadel of American science, the
question: are crises a thing of the
past?" V
"
"
(1) We are not, as you know,
dealing with a ne'w problem. At
turn
of
the
century, when I
old, our seminar
group in Vienna struggled with:
the same question; many of my
colleagues
there— Schumpeter,
Mises, Lederer — later came to
17
was
teach
in
years
America.
our
thinking
the
French
was
At
that
time,'
dominated
economist
by
Juglar's
theory of regular cycles. Do not
fear, I shall not bore you with
antiquarian rubbish, but permit
myself
only. onex brief
glance
backward, which may perhaps be
of interest
If high military
expendi¬
indispensable, because
they are forced by the opponent,
elementary rules of economy
would demand that all other ex¬
penditures be drastically curtailed.
within a handful of years
than would ordinarily be the case
But precisely the opposite is hap¬
pening. Governments try. to hasten
the tempo of development in all
major areas.
Consider/ for in¬
oped
once
This is not
an.
them verbatim:
,
.
:
,
>*:'
/
..;
..
,
,
...
The stockmarket reflects noth-/
lr?g but technical progress; The victory of the Republican party
assures another four years of pros- •
Fe y*V Poverty i will disappear
from- the earth. All that needs to
be done is to extend consumption >
and satisfy the last consumer. One
caT. fori every household would
potential dangers inhere in
promotion of the
through guaran¬
and subsidies; their conse¬
Two
artificial
this
peace
tees
economy
quent development would depend
on the situation.
First, America's
financial advantage vis a vis Rus¬
sia is narrowing; and secondly, if
it should
ever
come
of armaments, it
to
to limitation
would not be easy
compensate for the curtailment
of war
industries by
stimulating
production.
;
r(8)j Even more dangerous to the
condition
of
the
market, than
peace
guarantees and subsidies is the
policy of cheap money. Low in¬
terest rates drive up the value of
securities and the price of real
estate. In 1955, common shares in
New York rose on the average by
25%—at loan rates between 3%
and 4%. Some singularly imperti¬
nent
ered
building speculators consid¬
these terms still not suffi¬
ciently low; they asserted
"right" to cheap credit.
taken up
ten years
on short terms. Today,
after the end of the war.
Continued
on
ISSUE
$30,000;000
and Chemical
3.80%
?ot su^f,ce; tb£ ?oal. sho+uld b,e
One ought to anvest one s
savmgs m stocks and never sell
them. To jprovide the^inexperienced^with opportunities for participation, mvestment trusts ought
two.
orJ?ed fJJ?-1:ort ord?r
n£
j?
Xl
i
to you,
*
Sinking Fund Debentures,
Due July
/
Trice 100% and
aPPeared*
15, 1981
accrued interest
^ecu^t^stocTwere
to
be
split
more
frequently,
To
maximize consumption* instalment
buying should be indefinitely
Copies of the Prospectus may be obtained in any State in which this
is circulatedfrom only such of the underwriters, including
ex¬
announcement
tended. '
the
Shortly after the crash, Frederic
Allen
humorously* de¬
undersigned,
as may
lawfully offer these securities in such State.
Lewis
scribed
this
boom:
/:„
„
"The, American, envisioned an
America set free from poverty and
toil. He saw a magical order built
on the new science and the new.
prosperity, airplanes darkening the
skies^-and
and
smartlv
dressed
spending,
money
lasting reiterated phrase
day was: Conditions are
mentally sound."
/
■.
of the
funda¬
Glore, Forgan & Co.
Eastman, Dillon & Co.
Harriman Ripley
Goldman, Sachs & Co.
Lazard Freres & Co.
& Co.
Incorporated
Merrill Lynch, Pierce,
Fenner & Beane
Smith, Barney & Co.
*
would remem¬
prediction of the-Harvard
Economic Society of October '29:
"We believe that the slump in
prices will prove an inter-
stock
The First Boston Corporation
,
i And some of you
ber the
Blyth & Co., Inc.
.
men
spending,
they had
won
by being farsighted enough
to foresee, way back in' 1929, what *
was going to happen.
The ever¬
women,
spending with the
Kidder, Peabody & Co.
Lehman Brothers
Stone & Webster Securities
July 25,1956.
their
(9) Whence then came this ex¬
traordinary expansion of the credit
market? Essentially from that park
of the national debt from the sec¬
ond world war which had to bo
offer of these Securitiesfor sale. The offer is made only by the Prospectus.
f
to
the level of the national debt
,
NF.W
in¬
Were
are
inventions
false
the
;t (7).
tures
.
several
of
for
may
reply.
of
warnings of impending crisis, they
seem slight to me when compared
with
write-offs.
ceives
re-..
not read it
merous
value; but it
one
one
our century; also sound
though written today> j quote
ag
New York "Times" in a prominent
place carried a kind of manifesto
by Sumner Slichter, in which he
said, "The days when this country
can
experience : anything worse
than moderate or possibly mild
*
re¬
forces all companies in their quest
for speed records, to premature
Here the inventive spirit re¬
unlimited subsidies. More
are created and devel¬
ery.
morning, this expensive
duction of his travel time by half
is without economic
deliv¬
and
eve-
#»arlv
If
/twenties of
proven
silent, to the disappointment of many
!
;
-
in the
times-become outdated in the in¬
between order
tne
pnd
unlimited, depreciation is
rapid, weapons are replaced as
soon as one or the other side dis¬
covers better ones, the products at
terval
leaving Europe in
nour,
only
And perhaps Jolv's criti¬
strike us as even more
theory.
without
And
all these extra-budgetary
guarantees, I would estimate—and
I dp not think this is an exaggera¬
tion—that they would approach
,
mained
Then
and
v
international;, conditions.
\
peace,
is
my
should
right, of the
well.
in
have
interests
startling to see how casually
are assumed.
Since already
today the transatlantic passenger
does not lose a single working
risks
sector; 1930 was
tjon
fun employment. These
attitude did were the
slogans which preceded
not stem from advancing age or
greatest crisis of the 19th cenmcreasing cowardice;
nor
from
tury—echoes of the past with a
having learned the price of frankstrangely modern ring,
ness: that one s cry of danger first
makes enemies of eighty men in
'
Old Slogans
a hundred whose peace of mind or
(3)
The siogans 0f the late ;
change
example of
is
add
,
international
de
silent.
The
now
mand is
had
Ligne, modern—that Napoleon was baswho was considered the wisest.
|ng his tyranny om an economic
nrian of the eighteenth century
boom resting on three factors: war
when you see a crisis coming, repreparation, large scale construcmain
must
in decades, because progress is not
we
have recently:-heard;'similar restrained by cost;
Official staarguihents propounded as a new : '
"" '
; •
warnings.
time I wanted to proceed
cautiously and follow the
adyice
we
,
whereas today the .war budgets of
the claims of
question being,
"what does the state owe me?";
this program to be financed by
debts, on the argument that the
public debt was not a liability but
an asset to the economy.
I believe
sources
drastic
corporations, one sector works ex¬
clusively, another 80% to 95% for
differences of tempo between -a
and a
program, reducing
the state—the new
Somary
:
public, since official
sistently
urged
me
.
£
war
masses;
replacement of the
liberal program by the new social
requests to discuss the matter in
had
To this
....
the
re¬
cite the
To
this
aviation: of the American aviation
And
curtain.
elimination of poverty; the rule of
plies. I reject¬
ed
as
In his pamphlet of 1847
proclaimed four guiding
^principles for economic policy:
tive. The pub¬
lication of this
of
personal handiwork.
HI.
he
affirma¬
flood
own
Washington and Moscow give the
y
(2) This crisis of 1873 had ended postwar
economy
its
dynamic
the "Grunderperiode"—the period
.impetus. ;/./ 1;;;y'-..y /y
of expansion initiated by Napo¬
J ; (5) In the war sector the de¬
leon
in
letter, caused
eco¬
as to expossibility of any repe¬
tition of such a catastrophe,
the
their
Lagging Again >
the armed services. The producers
precisely as was the are
at the top of the boom, the
case 25
years ago, agriculture is
carriers, in contrast, at the bottom.
lagging behind. My warnings in
(6) The hectic pace of rearma¬
1928, addressed to the Verein fur
ment is transmitted to the civilian
Sozialpolitik in Zurich, were coun¬
tered by the argument that the sector: a few weeks ago, all trans¬
cost of living had not risen. The atlantic airlines placed vast orders
tension between agricultural and for planes of a model which as
industrial development is growing yet does not even exist and whose
steadily, on both sides of the iron dangers are totally unknown. It
elude the
I answered the
the
paralysis of
had been gained thereby
publishers a
short private
hote, in which
question
1873,
stock
and unique; and
pos¬
sibility. At the
time, I sent
one
life,
one
of
of
reassurances
fundamentally sounds"
as
then, industrialists
Agriculture
the
crisis
destruction
unsolicited
are
just
(4)
something dreadful
it was generally
thought that so much experience
-
and seemed to
deny this
the
upon
its
as
time, around 1900,
"Frankfurter Allgemeine Zeitung"
raised
the
question whether
a
so
and labor leaders claim the trend
•
value
add up
All this sounds
monetary
full
to
in the past few months I have re¬
assumption that
expended
guarantees for veterans' hous¬
the civilian econ¬
omy; they provide unique oppor¬
,
Zurich, Switzerland
International
sum
7
(383)
4
Corporation
White, Weld & Co.
page
29
The Commercial and
(384)
I
American Smelting & Refining Co.
Memorandum
—
Financial Chronicle
—
Thursday, July 26,1956
.. .
Moore,
*
Lynch, Union Trust Building, Pittsburgh 19, Pa.
Leonard &
Dealer-Broker Investment
Bank
Recommendations & Literature
send
an.
"
Ltd.
Chattanooga
mentioned will be pleased
interested parties the following literature:
r-?.; //,>.•■
'"'v-
160 Broadway,
■
L. A.
Mississippi Industrial Development Association, West Point,
Also available is a report on Upholstered Furniture
Manufacturing in North Mississippi.
lithium, nuclear weapons program, etc.—Atomic
C, 1033 Thirtieth
General
Wall
;
Banks and Trust Companies of the United States—Comparative
figures as of June 30, 1956 on leading banks and trust com¬
panies—New York Hanseatic Corporation, 120 Broadway,
New York 5, N. Y.
^
Base Metal Stocks—Analysis with particular reference to Cold¬
stream Copper Mines,
Ltd., Consolidated Sudbury Basin
Opemiska Copper Mines (Quebec) Limited, and Sherritt
Gordon Mines, Ltd.—L. S. Jackson & Company Limited,
Life Assurance and Falconbridge
Planning"
—
Nickel in current issue of
(subscription $36
year)
per
—
way,
Co.,
Indian
Securities
Hamam
Bulletin
—
Harkisondass
—
—
Lukhmidass, 5
Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y.
New England Public Utilities—Analysis—G. A.
v
:1
Co.,
Club will
821
—
Bache
& Co., 36
Analysis
—
Seligman, Lubetkin & Co., 30
annual
115 Broad¬
C
—
Ira
Ding" at the Forest Hills Country Club.
-
Oct.
Co., Buhl Build-
:■/
Springs,
(Palm
Asso¬
Convention
Annual
at
the El Mirador Hotel.
Report
McKinnon, 11 Wall Street, New York 5, N. Y.
—
—
Association
Firms
meeting of Board of Gov¬
ernors.
(Hollywood
25-30, 1956
Nov.
Beach, Fla.)
zv.':
J
■ <
Investment Bankers Association
Thomson &
America
of
the
at
Inc.—Report—Harris, Upham & Co.,
Broadway, New York 5, N. Y. Also available is an analy¬
Co.
14, 1956 (New York City) v
of Stock Exchange
Nov.
Pfizer & Company,
&
1956
Calif.)
Inc.—Report—Cantor, Fitzgerald
Co., Inc., 232 North Canon Drive, Beverly Hills, Calif, j
^
R. Grace
v*
24-27,
ciation
National Telefilm Associates,
Poor and Company
Exchange
National Security Traders
Abraham & Co., 120
Inc.—Analysis—Eisele & King, Libaire, Stout
Co., 50 Broadway, New York 4, N. Y.
.:/.v-_
120
Stock
of
meeting of Board of Gov¬
ernors.
Oct.
Inc.—Analysis—Unlisted Trading Depart¬
Haupt & Co., Ill Broadway, New York 6, N. Y.
Chemical Corporation
(Detroit, Mich.)
4-6, 1956
Association
Mohawk Airlines,
Mathieson
(Rockford, HI.)
Rockford Securities Dealers As¬
McGregor-Doniger,
ment,
and
Hotel
the
at
Radisson.
Firms
Analysis
Broadway, New York 5, N. Y.
Bank
sociation seventh annual "Fling-
—
—
of
Convention
meeting
Sept. 27, 1956
.
Co., Inc.
■-
Association
34th
Women
Limited—Analysis—C. M. Oliver & Company,
West Hastings Street, Vancouver 1, B. C.,
.'
&
Vv
'r v. ;:
National
;
& Co.,
(Minneapolis,
1956
'
Turnpike—Bulletin—Tripp & Co., Inc., 40 Wall Street,
5, N. Y.
R. Mallory
Chas.
1-21,
Sept.
New York
Olin
precede the event on
22.'^.22^
Minn.)
.
sis of W.
Stocks—Comparative figures at June 30,
1956—First Boston Corporation, 100 Broadway, New York 5,
N. Y,
/V"
^ I.-,/;
v!;A'
Bulletin
Steel Corporation — Analysis — Dean Witter & Co., 45
Montgomery Street, San Francisco 6, Calif.
■
New York City Bank
—
Aug.
ing, Detroit 26, Mich.
&
Saxton & Co.,
New York City Bank Stocks—Comparison and analysis for sec¬
ond quarter—Laird, Bissell & Meeds, 120 Broadway, New
York-5, N. Y.:>
Baker &
Amott,
Kaiser
Inc., 70 Pine Street, New York 5, N. Y.
.
—
Ironrite Inc.—Memorandum—Win C. Roney &
&
Current information
—
Analysis
Analysis — Shearson, Hammill &
Co., 14 Wall Street, New York 5, N. Y.
Street, Bombay, India.
Japanese Stocks
day at the Omaha Country Club.
cocktail party at the Omaha
A
New York 6, N. Y. Also available is a bulletin on East¬
Associates.
:
Canada.
the
Provinces—Comparative con¬
densed statements for fiscal year ended March 31, 1955—A.
E. Ames & Co. Incorporated, 2 Wall Street, New York 5, N. Y.
—
Harnischfeger Corporation
P.
Canada and
—
Street, New York 5, N. Y.
Limited,
Maine
New York 5, N. Y.
Government of
Corp.
Dynamics Corporation
Granduc Mines
V/all Street,
1
Nebraska Investors Bankers As¬
sociation annual frolic and field
Heitner &
Analysis—Yates,
:
Gas & Fuel
ern
Kalb,
Voorhis & Cq., 25 Broad Street, New York 4, N. Y.
Earnings—Bulletin—Francis I. du Pont &
—
Gimbel Brothers—Bulletin—J. R. Williston
Street, West, Montreal, Que., Canada."
Canadian Portfolio—Analyses of Shawinigan Water & Power,
Minnesota & Ontario Paper, Aluminium Ltd., Great West
"Financial
Dynamics
Coun-
Aug. 23, 1956 (Omaha, Neb.)
Street, New York 5, N. Y.
Pine
Mining Corporation, Ltd., Merrill Island Mining Corp., Ltd.,
James
Corporation
Gillette Company
Mines, Ltd., Geco Mines, Ltd., La Luz Mines, Ltd., Maritime
St.
Contract
annual
golf tourna¬
Columbine
the
at
and
try Club.
Incorporated, 150 Broadway, New York 38, N. Y.
Companies—Quarterly comparison of leading
banks and trust companies of the United States—New York
132
ment
Moreland & Co., Penobscot
Woods, 320 North Fourth Street, St. Louis 2, Mo.
General
:
—
Investment
Group
Association
Bankers
summer frolic
A
Lines—Analysis—Sutro Bros. & Co., 120 Broadway,
York 5, N. Y.
General
Mutual Fund, Inc., Dept.
Street, N. W., Washington 7, D. C.
Hanseatic Corporation, 120 Broadway, New York 5, N. Y.
Information
—
Mountain
Richman & Co.,
New York 38, N. Y.
Darling Co.
New
Banks and Trust
Aug. 2-3, 1956 (Denver, Colo.)
Bond
Club
of
Denver-Rocky*
Eastern Air
(No. 19) with comments on competitive atomic
Development
v,.
Buildihg, Detroit 26, Mich.
Miss.
power, boron,
:
corporated, 120 South La Salle Street, Chicago 3, 111.
Appliance Manufacturing in North Mississippi—Report—North
Investment Field
In
& Co. In¬
Becker
G.
Company—Study—A.
Gas
Columbia Pictures Corporation—Study—Bond,
Atomic Letter
EVENTS
Co., Ltd.,
Toronto, Ont., Canada. Also avail¬
analysis of Hiram Walker-Gooderham & Worts,
Scotia—Analysis—Ross, Knowles &
Nova
able is
understood that the firms
to
of
25 Adelaide Street, West,
..
It is
COMING
American Telephone & Telegraph Company—Analysis—Laird,
Bissell & Meeds, 120 Broadway, New York 5, N. Y.
(Dallas, Tex.)
April 21-23, 1957
*
Texas
Analysis — Boettcher and Company, 105
East Pikes Peak Avenue, Colorado Springs, Colo.
Bankers
—
convention
annual
Hollywood Beach Hotel.
Group
of
Investment
Association
annual
meeting
Hilton
Statler
the
at
.
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
vield and market performance over a
13-year period —
National
York 4,
Quotation
N. Y.
Bureau,
Inc.1,
'•
■
Front
46
<■<,/;,
;;;
Street,
New
;:<f,y
Over-the-Counter Securities—-List, price grouped and industry
designated—Troster, Singer & Co., 74 Trinity Place, New
York 6, N. Y.
.
Pocket Guide for
todays Investor—Harris, Upham & Co., 120
Broadway, New York 5, N. Y.
;
Road Building Program—Analysis—Edward A. Purcell &
Co.,
50
Tax
Southland
80 Wall
BEVERLY HILLS,
Calif.—Irwin
Lauder has become
B.
with Bache & Co., 445
—
connected
North Rox-
bury Drive.
Young, Weir & Company, Ltd., 50 King Street, West,
Toronto, Ont., Canada. Also available is a bulletin on Asbes¬
tos Corporation Limited, and a brochure on Canada's Char¬
f
Joins T. R. Peirsol
(Special to The Financml Chronicle)
U. S. Vitamin
Corporation—Bulletin—DeWitt Conklin Organi¬
zation, 100 Broadway, New York 5, N. Y. Also available is a
bulletin on American Tractor Corporation.
served—Utah
area
With Bache & Co.
(Special to The Financial Chronicle)v
Securities Dealers, Inc., 79 Wall Street, New York 5, N. Y.
Union Gas Company of Canada Ltd.
Analysis — McLeod,
Growing West—Booklet describing re¬
Power & Light Co., Box
899, Dept. K, Salt Lake City 10, Utah.
the
Traders Asso¬
ciation Annual Convention.
Telechrome Manufacturing Co.—Card memorandum—All States
/
(Hot Springs, Va.)
National Security
Corp..
tered Banks.
Individuals-Circular—Park, Ryan, Inc., 70
Pine Street, New York 5, N. Y.
of
Investing
•' '
:■-Y<;.,; '£< v ■,;
3-6, 1957
Nov.
Eastman, Dillon & Co., 15 Broad Street, New York 5,'N. Y.
Treasure Chest in the
sources
Racing Corp.—Report—General
Street, New York 5, N. Y.
Hotel.
Speer Carbon Company—Study—Aetna Securities Corporation,
111 Broadway, New York 6, N. Y.
Sun Ray Mid Continent Oil Company—Review and forecast—
Broadway, New York 4, N. Y.
Exempts for
V/
Sayre & Fisher Brick Co.—Study—General Investing Corp., 80
Wall Street, New York 5, N. Y.
|:
i:: BEVERLY HILLS, Calif.—Wil¬
liam
R.
9645
Dolan
with
iated
T.
Santa
affil¬
become
has
R.
Co.,
Boulevard.
Peirsol
Monica
&
The Woman and
Hull
Her Money—Sidney S. Ross
Company, 3070
Avenue, New York 67, N. Y.
*
Daniel Reeves Adds
NSTA
BEVERLY
;
Notes
ley
A.
Daniel
■
Dealers
to
Staff
(Special to The Financial Chronicle)
;
v--'
HILLS, .Calif.—Fin-
Narmore
is
with
now
&
Co., 398 South
members of the
New York and Los Angeles Stock
Exchanges.
v
Beverly
Reeves
Drive,
,
BOND
Are you
interested in
a
list of Over The
CLUB OF
DENVER
;
The Bond" Club of Denver and Rocky Mountain Group of the
Investment Bankers Association will hold their Annual Summer
:
.
Counter stocks
—or
selling between 10 and 25?
Frolic and GoH Tournament at the Columbine Country Club Aug.
2 and 3.
i
'
•'
:
\ " '
Orville
the
Our list of 425 securities is
cording to price and identified
grouped
as to
General
Neeley, Vice-President of the
Chairman
Denver
Bond
of the Summer Frolic.
ac¬
v
•
Monica Boulevard.
-
Two With Aronson Co.
'
WILMINGTON, N. C.—Paul A.
Allen has become connected with
Troster, Singer
74
York
HAnover
& Co.
New
2-2400
Teletypes
-Private
CHICAGO
Wires
DETROIT
CLEVELAND
York
NY
6, N.
Y.
With Green,
1-376-377-378
To
"
LOS
DALLAS
HARTFORD
PITTSBURGH
ST. LOUIS
CLEVELAND,
PHILADELPHIA
SAN FRANCISCO
.Erb Co.;
(Special to The Financial Chronicle)
HOUSTON
GRAND RAPIDS
.
(Special to The Financial Chronicle)" '
LOS
ANGELES,
-
^
Calif.—Doug¬
lass M. Hodson and Willard Leab-
Investments, Insurance. man have become associated with
Building. He was formerly local Aronson &
Co., 426 South Spring
representative for Kirchofer &, Street. Both were formerly with
Arnold, Inc.
Shelley; Roberts & Co., and Marache, Dofflemyre & Co.
Security Dealers Association
Trinity Place
'
Selected
Members
New
HILLS, Calif.—Geo.
Kieffer has joined the staff
of
Shelley, Roberts & Co., 9486 Santa
Club is
(Special to The Financial Chkoniclb)
(Special to The Financial Cheonicle)
BEVERLY
S.
Selected Inv. Adds
DEPENDABLE MARKETS
business.
•
y
•
5 and 10?
With Shelley, Roberts
:
J
ANGELES
McCormickAddsto Staff
(Special.to The Financial Chronicle);
i
LONG BEACH, Calif. — Abra¬
has been added to the.
staff of. Green, Erb & Co., Inc., ham
Kaplon
and
Ernest
W.
N. B. C. Building, members of O'Loughlin are how with McCormick and Co.. Security Building.
the Midwest Stock Exchange.
Pobiega
DEMPSEY-TEGELER & CO.
Ohio—Henry T.
Volume
134
Number 5554
.
.
The Commercial and Financial Chronicle
.
r
issues
Commissioner,
Securities and Exchange
Commissioner Orrick
securities acts
it
notes
is the
Commission
the Commission to prevent
nor
rities
specu¬
#
active
__
...
,
discussion
a
.activities
of
to
Telephone
difficult
to
view
with
with
Commission
Cnmmiccinn
Exchange
con-
By
of
icdsuu
reason
Dy
sidering
.
the
me
W
the
American
economy,
ment and
the
est. The Com¬
mission, as an
independent
agency
the
en¬
with
of
the
securities
acts,
performs its
but
criminal
It
ecutive and administrative respon-
sibilities,
in
enforcing
the
W\
K
/%1»
y-v
£
of
/i+l
****
n
Where
seven
more
the
for
4*l*%
Tl A
b
also
A
*
be
the
4.
vt
.
i
A
J
Commission's restricted list.
~is freqi^ntly
intended
vie-
^
by
"maiL
the
fusions is essential to the proand salesmen.
ers
In
considering the functions of
the Commission, it is well to be
mindful
that
by the fuil disclosure theory
the
of
securities acts
its
and
cannot
"protect the public from
should
cupidity "to get rich quick"
gambling in untested promo¬
tional
ventures.
The
securities
own
by
,
acts
designed to prevent nei¬
ther the popular pastime of specu¬
are
lation
the
nor
then receiVe
receive
a
series of teletele-
If
exercise
of
of
its
by
of securities
personal
flint
of uninformed
area
miiSr
a
nnmhpr nf
reauiring
no
fuel
wick
or
„
.
they
buying promoters' stock,
are
and their money goes straight into
the promoters' pocket without the
rich legendary mine.
The
pro-
seeing it.
ever
The^e
types
difficult
uuu^uu
more
mvne
iems.
of
frauds
little
or
suspicion
the
investor.
securities
on
a
or
row
containing
large
Z
pieces
of
gold-bearing ore, an old, rusty
rifle, and the skull and bones of
a
human being, all of which he
lous^mine
to
or
He falselv
investors that the
^renresented
^rooertv
wa<?
investors that the property was
mission learns of the deceit, long,
careful and painstaking work may
be
in
required to
a
develop
the
others ™ust be examined and dis-.
crepancies detected and explained..
invest0rs must be interviewed and
vjl
to,
^
Md
prevaUed
t0 reveal ihe ^
no
sources
of
information.
investigation
freauentiv
not
pur-
cam
Paigns
are
conducted by salesmen
located in Canada where they operate behind a wall of jurisdic-
ally parted with his
money
portedly
before
-
anti-fraud
provisions
of
manufacture
a
.
wingless aircraft capable of flying
the Commission is able to enforce
the
could
-
.
the 4,000
persons
non-stop around the
that
a
complaint
or
This
announcement
is neither
offer
an
The
to
sell,
nor a
solicitation of offers to buy,
any
investigators
must
careful
of these shares*
July 24, 1956
125,000 Shares
REFRIGERATION CORPORATION
(A Michigan Corporation)
national securities
exchange does not denote that the
Commission
considers
such
ternalism, in the
traded
securities
Pa¬
.
Par Value $1.00 Per Share
*
of cloaking
sense
distributed
publicly
Common Stock
secu-
publicly
or
with
a
seal
Price $15.50 per
of
share
governmental approval as to their
quality, is as alien to the philoso-
-
Copies of the Prospectus
phy of the securities acts and to
our
administration of the statutes
would
as
be
a
mandate
>
v".
underwriters
may
may
only in states in which such
the securities laws of the respective states.
be obtained from any of the several underwriters,
legally offer these shares in compliance with
the
by
government that an individual had
to
buy particular securities.
most difficult and persist¬
enforcement
problem
7.
;
The
'
ent
i
Baker, Simonds & Co.
^
with
which the Commission is currently
concerned
involves
the securities of
of
ing and oil companies, from both
Canada
and within, the. United
*
States.
of
'
the^ sales
The distribution of many
these
issues has
are
^
high
*
j
pressure
sales
campaigns
address by Commissioner Orrick
Investment Securities Dealers
Portland, Oregon, July 17t 1956,
*An
.
before, the
of
First California
.
been, and
being, * made .in 'violation of the
registration provisions of the Se¬
curities Acts of 1933 and through
'
The Ohio Company
Bache & Co.
promotional min¬
.
'
Company
Incorporated *
•;*!.•
?
*
-
:"
Ball, Burge & Kraus
The First "Cleveland1 Corporation
.
Clark, Landstreet & Kirkpatrick, Inc.'
'
'
.
:
Blair & Co.
Incorporated
Schwabacher & Co.
r
Courts & Co.
is
to
investigators must oe careiui to
Continued on page 22
NEW ISSUE
C0PELAND
in-
shows
suspicion
be
offering is made only by the Prospectus.
the listing of
Not
unfounded, and. consequently, our
risk-
rities to be safe investments.
facts
form which will stand up in
The books and records of
court.
J*
-
the
Once
suspicion is aroused and the Com¬
^ad
inv~estine'nromDt"lv""theV can"dou-
assessing the work of the Com¬
mission, that the clearance of a
offering
may
arouse
.
securities
uiUUprob-
there
nothing to
of
present
enforcement
CiuWii,Cniwi t
On the surface,
"prospects" are" assured
,*v taking.
\ It should not be overlooked, in
\
_
„
mention such interesting facts as
the insolvency of the company,
Investors are led to believe that
they are Pr°viding capital for a
promising enterprise when in fact
nrftmi<5inpf
wh^r, in tw
J®®®1be
re-
thatTy tapossibfeTo^ulate ^"advance wafmerelv 1°" '.Zetelnned^nLj.Zf
was merely an undeveloped pros
commercial
^tTZ orally or ta wri^TSatSS PeCtmg C'a'm W'th promoter of a
Lvlstment
;np e
,1eir invesiment say
in written material ore. Recently, the
that has
been filed with the
W'm" oHh^e tellhone
^mSi^th^^h^uS6 California company, which PUr'
Ca"fornia C°mpa"y' Wh'Ch
The
of specified
ore
w,^c
company
'
,
bSfMS
free-wheeling "pencil bandits"
and the
miclnr!
unusual promotion successu1 ^ P7^*M
by, 1 A?eatt!e
Regional Office involved the al-*
.
made
are
contact
presence
poor
responsibilities, the Commission
effectively reduces the operations
of
sa?e
orally
enforcement
law
'lighter
rette
Hnnp' anZi«Lra
r
judgment by individual investors.
However,
through the vigorous
conduct
in the
h*
0f which would* enable the blind
^
VAXVrf
MlillU
TJ!
This
Commission
federal
a
American
operating within
the
system of free enterprise and limIted
portunities afforded by purchasing
its securities.
Prospective investors
Jtirh
minions JwtrnniP
descrjbes the wealth of ore con- be illegal.
extravagantly
tations that engineering tests have
"«*«< engineering icsi» u«vb
„
accuracy
cnPPPcefniiv
turine and marketing
serves as a warning
trading in such securities may
touting
moters and dishonest broker-deal-
*
sentpd
mission and
The
vigorous discharge of each of these
literature
pom:„nv
of
cently reactivated, is distributed
periodically to all brokers and
dealers registered with the Com-
The initial contact of the "stock-
their
which
/.
contrivances, the Commission!en~^
counters fraudulent activities in% A;
more conventional enterprises. -'
Securities of mining promotions
are bein§ sold uPon oral represent
.
sue
fraud
up
In addition to such imaginative
,»ac
sales
instituted.
jure
n „
an
which has not been registered
with the Commission, the name of
the issuer would be added to the
con-
Literature From the "Stockateers"
with
nlnA
would
willing to
their money on any
type of enterprise that the ingenuity of crafty promoters can conaway
_aco
fraud.
pressure
pro-
when no
made—some•
i.i_
Watlnn'"nf
one has simply duS a hole in the
nnnfh._ rasp
fVlJ L.Si„ invpn ground «"u found a trace ut some
and wUuu a u«t.c of suiuc
annthpr
thp cnnrinnc
firm rnr,qjQto!x
QiwJtIfii mineral. Salesmen talk glowingly
lp(?c.
ePif_PnPr«i7incf
n^it of dividends and stock splits by
,
1
Promotional companies which in
npnn1fl ali.„
? fact are iosing money. Assets are
P
pie diive IOrever,
XtecenLiy,
iw, a written up and manipulated, and
*?nsrthere is a calculated failure to
fnnS
tho
prosecuting
of
protecting public
f™6 lar^e Quantities of
J° ITr Teal tests have been
VeStOrs as assuring 100%
Upon learnu^uu icdiii-
nrneohn+inrf
high
a
mannfantnrinrt
v
in
job
/ ®°~ disclosed the
inves-
criminal
qPrilHtipt S
rmmnrwn
the securities being sold are part
of a distribution of a Canadian is-
difficult.
ateers"
such
H
tion
list,
statutes under its jurisdiction. The
istered
«
If1 nnSp"
with
-
ac-
proceeding to revoke the registra-
investor, they make
prosecution
for
T
nectJon
campaigns are conducted by broker-dealer firms registered with
the Commission, an administrative
with
victims
tr»
to
and
salesmen
through this meBy avoiding the use of writ-
tact with
has
quasi-legislative and quasi-judicial powers, in addition to its ex-
curities
effort
ten material and face to face
A. D. Orrick, Jr.
capacities.
1
number
least
dia.
duties in three
interrelated
*
greater
the
distinct
piiritipc
"stock-
of
defrauded
of
rL
full
the
a
throw
have
ass.ets ^.
„
a telephone
campaign, an investigation is immediately started with the view to
enjoining further sales of the se-
promising miraculous
Unprincipled,.salesmen
make their sales pitches by telephone because they can reach a
adminis¬
tration
inducements
with
even
who
-nmriomr wWo
bp:nf?
hawlfpH
PftnJL«nn
nec-
ing of the existence of
pushers"
profits.
regulatory
trusted
high employ-
public
vocative
and
not ccthj to csictuuaii.
nut easy IU establish.
apparently has sufficient funds to speculate in such
nrnmntinnal
promotional £>ntprnricpc nnrl has
enterprises and hat;
been readily susceptible to the pro-
protecting the
public inter¬
th
to
tors, legal proof of dishonest praca:n
i_
n;__
tices hT the sale "of"securities "is
record national income,
job in
Commission
great extent, it
a
cooperation
expanding
effectiveness
;
tivities,
CAycUiuing
of
our
To
the
mation about such fraudulent
,
.
conducted by telephone, in which
pertinent information about the
and'securities being offered is frauduthe
thr» Ipntlv misrepresented.
lently mkrpnrpQpntpH
*
campaign^are most
for
schemes
own follies.
sad but true tbat
many mem_
bers of the public are
*
essarily must rely on the complaints of investors for its infor-
enforcement
Securities
the
customarily make their
by a hood or
insure privacy
salesmen
outrageously
these
success
investors from their
a-
Inventions
In recent years, the Commission
has successfully prosecuted many
as
protected
are
cover
.
the
of
to
of
marked
difficult
T„._
*f-
<
peddling such securities
gullible public, it is evident
the Commission has a most
that
cheated the public of large sums
of money through the use of fan-
calls
1
,
My remarks will be directed to
referred
to
ring many malpractices.
Spurious
public out of
the
moters in
immeasurable
an
which they
enforce¬
America.
constitutes
the
nature
the
protection to the public by deter-
cam-
directed
are
and
dishonest
control.
to prosperous
telephone
fanciful
wrongdoers in the securities business
cheated
Considering
"hoods" because the cubicles from
ment, investor confidence, and needed flow of capital necessary
■
Other
are
telephones
regulatory authority's difficulties in coping with them.
between
to
and
Salesmen pushing the sale
securities through the use of
of
making fantastically fraudulent misrepresentations. De¬
tailing numerous fancy schemes, including spurious intentions,
Concludes there is close correlation
border
States.
men
notes
about $200,000.
by "hoods"
running boiler shops in the United
paigns
lation, or to protect it from its cupidity and get-rich-quick
gambling in untested promotional ventures; but rather to
reduce the operations of "free-wheeling pencil * bandits,"
"Stockateers," and "hoods," who contribute to uninformed
risk-taking. Cites work of SEC in prosecuting dishonest sales¬
lf
world,
Nevertheless, the threat of inves-
back the funds paid for the
securities.
public's
the
across
carry
of neither the
function
securities acts against the crooked,
is.
.commonly / effected by, tigation
and
of administrative,
so-called "bagmen" who use little civil or criminal
proceedings inblack bags to transport the secu- stituted by the Commission
against
By ANDREW DOWNEY ORRICK*
x
i. "v
tional immunity. The physical distribution of unregistered Canadian
Acts
Enforcing the
Jk
(385)
Goodbody & Co.: Saunders, Stiver & Co.
The Commercial and Financial Chronicle
10
.
Thursday, July 26, 1956
.
(386)
-
1
#!■
m
m
TAAlt. lirO :M11nPTIK
ilCOZIOmiCS lOI
;
'
.
■
*ec«
By THOMAS J. SHELLY
which
,
<
.
•
-
{
decide which system is
best.
they
believed
free
entitled
as
became
school students Economics for over 27
years, and appalled by non-free enterprise views of high school
students revealed in economic literacy surrey polls, Mr. Shelly
suggests high schools better their Economics program and
explore the possibility of offering Economics as a "special
subject." Agrees students must be informed so they can
their
belief.
-
__
-
.
..
■-
..
may -
their
economics
suit
of
As
course.
thought which I now wish to leave
with you, not only to meditate
such
discussion,
uoon, but also to do something
about, provided you are of the
belief that schools need a still bet-
re-
a
both
-Zi'j teachers and students will,
ter economics
program.
v\".
Jf
Mr. High School Principal
than likely, have an increased in--and his faculty are not entirely
terest in the following description satisfied with that program, I sug0f SOme recently made surveys.
gest that the possibility of offermore
r
The
war
their inde-
and
over,
.
pendence having been established,
g
what would these
f?;y"
\
teachers
these
12
their senior stuprogress through
with
they
dents—as
.
~
_
economics
t>" discuss
questions
this
of
because
y
.
*
and seller. It means the
freedom to make other economic
especially significant question at decisions of a similar nature.
It
economics be taught in
Should
men.
lot
or
want
studies
to
they were
In fact, war
Keeping the Fruits or Une s Labor
now?
do
buyer
secondary schools? This is an
their
Americans
new
else
How
been?
had
colonial forbears
Yes!
>'
they
could
Lawrence
Mr.
/;
con-
be free men?- Were they
tinue to
economics
of
summary
in -his
entitled
"Job
a
It
could
for haP of
special subject
be
week,
per
preferably
during the senior year. If a principal were to do this, I believe all
for
would be very
trying to make
up their minds
to
the
wher,:ier
American
economic
tem,
or
other
sys¬
system
isting
ex-
pro-
or
posed
—
n
.
perience of 27
tporhyears':
teach
J.
i
-
nomics in
I
n
of
g
eco¬
secondary schools.
telligent
the
than
is "no.'
answer
?■
when
1787
in
these
I mean the ac-
,;:•//> '
prominence because Americansbeginning with the early colonists
made
_have
effective
more
use
other
quiring of an adequate under- people on the face of the globe—
standing of such components of anywhere or at any time. Howeconomics study as:
production, ever> oniy an individual person
capital, labor, the corporation, the can generate human energy! Only
free market, money and banking, an individual person can control
profits, taxation, socialism, com- the energy which he generates,
and fascism.
of
human energy than
Tndividnil^
*
^f^nprate
any
Bner2v
onlv
of
i
^
tne
States
experienced
a
greater incentive to work and to
property
own
stitution
ment
because
states
that
t.:e
seize
cannot
™onertv^fthout
this
with the problems confronting the
producer—problems such as taxnil
+
ation, inflation, and other forms
of governmental interference with
productivity; problems, however,
r»
^
~
which
to
the
virJ
t*n
«
any
goods
there
if
solutions
and
Cf
have
producers
find
to
to
be
are
services
for
the
to consume.
consumer
when
do
to
uously most productive when govt
leaves
freest
us
to
pro-
Of
:
;
;
America did not be-
course
"the
come
breadbasket,
the
fac-
tory, the bank, and the hope of the
world"
happen
when
the
on those days in 1619
Jamestown
colonists,
a? c,,vfw»+
L
iSli th?
It,
merged.
become sub-
therefore,
receive the time and
does
not
study which
its importance deserves.
Its imDortancp dp^prvp^
Why Economics in High School?
Economics
should be taught in
high schools because, in my
opinion, the principal function of
cur high schools is to give young
Americans
an
adequate under¬
standing
of
Americanism.
function of the high school is to
equip young Americans with such
knowledge and understanding of
cur
basic
facts and
enable
them
to
principles as will
adapt themselves
to thp pnvirnnmprii in uuhinh
the environment in which
are
to
destined to live and help them
the problems of life with
intelligence, self-reliance, and the
part of
provide
ing
Thi<?
This
of
Trade
an
An essential
such an education is to
adequate understand-
heritage
our
of
that,
that
hiuh
high cphnni
school
the
the
freedom,
its students an ade¬
quate understanding of our system
of private capitalism, because it
is such an important part of their
heritage of freedom.
give
Americanism
includes,
among
the
the fruits of one's
4TXXaAnf
labors, i.e., the
niMirotn
freedom of private persons to
property.
It
of individual
at
prices
means
the
persons
the
Acts
Navigation
b^^sdbaskct,
difficult
one
In
for
?5S
^
er^r£y*
*
}
•
r+
*
i
the
f actlor^ to get their energies
,
..
was a revolt by
ptnrens Gf Boston, and New EngaSamst the attempt by
the
British Government to control the
price
"some
of
tea.
It
must
have
been
party," because the colon¬
in throwing both
ists
(5)
tea
and
the
British
American
"O.P.A."
colonists
were
determined to get and to maintain
a
1
A
J
_
free market—i.e.
l
_
a
^
x
market
V*
A+
t+rt
trA
believe
£
not only in tea but in other things,
both
as
well.
Therefore,
on
said
fr0m
in:
the
of
most
(6) 60% said
July
4,
because
mine
than
more
best of
mv
t e
knowledge and belief
Si
of
to
nomic
;
/
«>
coming
Mr.
Survey
als0
Fertig
ac¬
mav
a'nleasant'time
into
sav
whil^
timp?" vP5
nparlv all
nf
nlpa^urp
possession
mv
from
^
the
nf
of
basic facts and principles of the
.
,
if I
and
svstem
thev had
r
.t,
students
reasonably good under¬
of the American eco-
a
standing
owners
thele
a" °*
quired
'
^
the
was
pleasure of having
4,000 students study
^"^^ w'ththe subject. To the
me during the 27
years I taught
industry,
machinery
new
j:
.:
economic system
.
which they
in
I
that a
u. S. Chamber of Commerce suf-
rl
/S*-s
+
Mtt
«
aU
a
that
reports
the
the
tQ
LO
to
States
war
create
"
inflation
.
Is
mm,
highly
for
-
Schools"
0£
of
in
in
the
and
gradua¬
Fertig
says:
"Judging by the
interesting
for
the
letters
we
this
column
(i.
about
June 6,
public
mind,
a
sore
and
Continuing,
wages?
"Courses
Is the profit incentive nec¬
for the survival of freedom
a
in
in the U. S.?
(7) How does private capitalism
free
economy)
make
the
-
course^
tivity the only
way to increase
everyone's standard of living?
(g)
why is the doctrine of tak.
ing, by compulson, "from each ac¬
■
him,
liberal
asked
can
human
bring
event
education
."
!
humanists
concerning
other
any
liberating
with
are
The
study
clas-
be
so
this?"
as
•
would
the
'_'y'
*'
no
Bache Adds
I, of
to
Staff
/Special to The Financial Chronicle),
com-
ST.
PETFRSBURG,
Fla. —
Charles A. Cbilds is nowassoci-
me> as j write, a
of
an
editorial entitled:
"Don't Schools Teach Any Basic
ated with Bache & Co., 556 Cen¬
tral Avenue,
pletely.
j
ha^e before
copy
Economics?"
peared
in
Journal"
This
the
editorial
ap¬
Joins Curtis Merkel
Akron
"Beacon
Ohio on June
of Akron,
12,
1955.
Like Mr. Fertig. the
according to his needs" writbr of this editorial is disturbed
good plan of compensation by the results of similar surveys
in industry?5
" of'the economic literacy of high
each
not
smallest
Renaissance
have
(Special to The Financial Chronicle)
cording to his ability," and giving
"to
the
a
sics,
says:
Studies'
with
agree
in
tute
parents
ing program in economics."
(the
can
Question rather will be, what the
sound basic train¬
a
we
think to ask whether the study of
civilization can consti-
the
spot in the
Fertig
'Social
or
can
we
antiquarians
sociology and ethics and history.
if We do the latter, no one will
many
in
smattering of economics
substitute for
of
received American
e.
that
Mr.
civilization
minds
annalists,
and
want something done about it."
(5) Do labor unions really raise
the
can see in the blade of grass
chemistry and biology and poetry,
1955 issue) we would say
it touched
that
458
who
.
"Economics
was
New York "World-Telegram," Mr.
(
Arthur
Arthur
nafes
the disciplined imagination of men
pubMshed
27, 1955 issue of the
June
on
Learning," "To the study
American
bring
a
,
article:
which
frotessor
Professor
favs
and 459 of hls book «The Restora_.
tlon
im¬
be
•
witn
with
agree
agree
X3esi^ wnen.ne says on pages auo
aiso,
training
should
pre-reauisite
another
In
(4)
Is the fixing of prices by
government good for the poor?
(6)
is
basic
a
economics
in
been
prosper-
'
good
I
discipline which
call economics.
men
Bestor when he
tion from high school."
poor?
essary
witn
"It
says:
that
prime
as
it
(3)
he
sound
,
Does
^gree
portant
solved?
/2\
scholarly
nnffht
it
eooH
as
the tools of thought
are
in the intellectual
s Js agree with as: it ought
" » |s Sood him, also,
I
,
be.
ue«
when
not
.
United
ciples that
under-
1 aKree wlth Mr- Fertig when he
'
studen+s
(1) Has the problem of produc¬
in
teaching
says that the understanding of the
following:
tion
properly
r ' standing of American economy."
a
their answers to such questions
I
_
were
secondary
our
-
_
b^ei that our secondary
01
a
ST.
PETERSBURG,
Fla. —Jo¬
a
(10) Why
to
the
savings-important
are
survival
(11) In what
of
taxation,
Suggests High School Course in
Economics
'If
our
6
.
Y*'
What
is
inflation?
13 llliAtuluu:
^
R.
^
Keyes is
^
^
^
now
^
connected
vvith Curtis Merkel Company, Inc.,
school seniors. That.editorial con- 601 First Avenue, North,
sav-
ines?
(12)
seph
^
-eludes with these words.
freedom?
ways are
and, inflation, destructive of
r
to buy and
know,
privilege and
U. ;S. Chamber of Commerce
scnoois exist ror tne purpose
free
from governmental interference—
to
acmtrH.
;
An Adequate Understanding
into the waters of Boston harbor.
The
76%
business."
understanding of Americanism.
succeeded
the
this question is an emphatic "yes."
I
(originated
„
released
from
governmental
chains.
In 1773 came the Boston
.
doctrine
compensation
factory,
stymied. It was not long, consumer King.
.
f10JveveL before they began to
(8) Why is increased produc-
Party. 'This
the
the °wfier.
Jhey
^
a
ca-
Pable of understanding the basic
facts of economics? My answer to
and the fundamental principies
-° hlS nee.bS' aS-a g°°!j plan nearly'
°£
fact
standard of living declined.
JTi*
should
That question
my answer.
Are high school students
39,000 high school students rcon0m'r system - somethfog,
made this achievement possible? 0f 12 states revealed the followOf course not. And if any school jng facts: "(1) 50% felt that steel however, which they could not
'
even begin to do
intelligently un¬
does not give its students such a coal and Gil industries should be til they first acquired a knowl¬
course, how can it claim to be regulated by the government. (2)
edge of those basic facts and prin¬
giving itsi students an adequate Only 37% felt that; the schools
Acts
follow.
a
to
of
freedom
agreeable
path
as
government, placed so many
f
Way °ti ^ colon~
sble-to gen-
,
n
own
the
and
colonists
J
other things, the freedom to keep
*
measures
made that
an
means
means
should
strictive
Question
awii*v
toddling colonies to being "the
set
they
face
st nf keen interest.
of iroan inioroci
own
Thus, the colontheir feet in the path of
freedom and a higher standard of
living.
Later on, however,
the
British government by such re¬
said
said
to have
is:
,
the fruits of his lsbors i.e. to
ists
said
hJ? abl1'?' t0 each a?c0Fd"
no
i
private property.
best
their
fruits of their labors helps us to get too much 0f
profits of Ho'inff
"A
u"'stand t.he amazing^ gpo^i production, while 82% said we t hqvP found that
?
Se United States from 13 jiave practicaiiy no competition in fd t dprivpd
Plymouth colonists in the
1623, set their feet in the
SerWaf? J^ud'he for'foefr>oT
^LftoTllowetchonefo k^p
'" f uTo !I"
l Z
the
raise
to
Karl Marx) from each accord.
b
af
If economics tends to
the
endorsed
and the
wretched than they had been before- So they decided that the
whqt
of the company income.
°n
helping their students become
year
g°°d citizens. As a result of such
path of a free economy.
Their training, high school^ seniors
PmWamc
n0mm,rdpv
ThoHif
communistic
experiments
had should, in my opinion, be able to
Hcultv
about
quch
a
"combina" only made them P°orer and more gve . mtelhgible explanations of
n
cf
workers
more
*dea 1fchat :gains
overnight.
It began- to
long, long ago. It began
happen
for
Before I close, however, there is a question which
may be on your minds at this moment, and to which you might ike
worker produce all he can, 62%
said n0;, (4) s5% of the students
^out just compensation. This
/^/\rtr<
A
duce?
get
^nd
reamn
ary schools.
resurts-
the
of
some
avee;tinri
governneonle's
the
good
are
standardS) oniy 43%
produce more, while 56%
orodSce more.:/while 56%
them
to
seems
so
^ear.after
ernment
to
economics I do not mean
studies," either, which in
manv high schools is a "combina¬
tion" of World history, American
history, Economics, Sociology, and
By
"social
»
Here
th~
Con-
bank, and the hope of foe world."
worthwhile. Are we not—all of
Can young Americans under.r
ject has to do, primarily, with the us —most likely to generate the stand this amazing achievement
shopping activities of consumers. most energy—day after day and without an adequate understand-
economics I do not mean
"consumer economics.''That subBy
A.Z
'
a) 61% said that the profit |n:
centive is not needed for tve
survivai o£ our SyStem. (2) On
c
^tates, the people of tne
United
world
Constitution
^
United
achieved
has
the
v[sed
tt
In America
...
America
By economics I mean, of course
study of the basic facts and
the fundamental principles of our
—
Corp. of Princeton, N. J.
High School Students
questioned hig.i school seniors in^v
Capable?
8c schools scattered throughout the
I hope I have succeeded in mak4
u. S. about the free enterprise ing a case for the importance of
system.
1
•
study of economics in second-
short, they believed they had
—
Again
foreigners.
Individual Energy Generating
-
the
mtinism
in
^mes, Madison, colleagues tor
Alexander
ufon and their
de-
because Americans are-moie m
I believe eco¬
be taught in our
economic system.
to
for themselves and their families?
sequently,
that
should
als0
high a place among the nations .of the duty. to acquire property.
the; world?-,: Some persons think They believed that property was
tbat our is the reason. It ire- an extension of their lives. ConPo^ession of ilatuira isn t..
sources
high school classroom
a
say
nomics
so
—both
glad he
search
frohi 0thers believe U's becausf Am.?n' forefathers 'of. ours - George way
own
ex- ca"a
haveft? IsTt fashinf,t05-' Ben^min Franklin, Uvfn
my
when
'is
reached
America
has
Why
to- defend thei£
human enemies
foreign and domestic—but
WOrk to pro.uce a living
only
not
lives against their
Lnk
r
1 nciii.
life, the practice of which has
made America /the breadbasket,
the
factory, .the bank, and the
hope of the world.
/, ;
some
either
philosophy ,; bility
Americanism is that
0f
taught
school year, with five
a
recitations
.Fertig gave a
of these surveys
one
article
be
as
explored.
■
Opinion Poll Survey of High
V
School Knowledge
much
private enterprise as
Would they be as
interested in
our
freedom
economic
the
them
Having taught high
!
is
inde-
pendence from England.-, By this
declaration, however, did not give
Economic Education, Inc.,
Irvington-on-Hudson, New York
The Foundation for
rf
inflation harmful^ to persons tem, or some other system—either
living on, ."social security"' pay- existing or proposed—is best?"
act
the
colonies
became
the ments?
That is the thought with which
United
States of America.
This
it is, possible that some social I
began this essay.
It
is
the
their
declared
they
0
tAV
PiiAiiAiMilir
What
vvlliU
1S ^
role played by government
in the inflationary process? Why
profits,
surveys
can
young
people
With Eastern Sees.
(Special to The Financial .Chronicle)
are
as
and competition as the
indicate, on what basis
they decide whether our sys-
ORLANDO,
Fla. —Richard
B.
Elook has become associated with
Eastern Securities Corporation 01
Jacksonville, N. C.
Volume 184
Number 5554
.
The Commercial and Financial Chronicle
(387)
Will the Bubble Be Pricked?
By ROGER W. BABSON
market ha re been upset by the sudden occurrence of
Karris, Upbam Appoints
From
Mr. Babson traces history showing how business and the stock
Washington
Ahead
unex¬
Sharp As Analyst
Harris, Upham & Co., 120 Broad¬
way, New York City, nationwide
investment brokerage firm with 35
the Newso
pected events, running the gamut from Lincoln's assassination
offices
By CARLISLE BARGERON
to the
panic of 1903 to the post-1329 European banking and
business ccllapse. Concludes while there is nothing now in
v
V
collapse;
cause a
"unexpected event"
some
once
t:\ -r
members
'A President
again
about
statistics;
ote
n
and
and
H i
s.
conclusion y is
that if we will
build
should
Stock
an
Roger W. Bab son
h
o
the
The
Up
indefi¬
:
"un¬
change,
next
very
of the "Greatest
Show on
Earth." Certainly these were un¬
expected events, although perhaps
npt great enough to disturb stock
son,
However,
interested
me
these events
in studying
aftew the action of the stock
ket for the past 100
time
this
to
with
the
and
the
when
1920
stock
to
had
market
another
high
very
until 1869
saw
come
it
sudden
reached
an
-
-
in
several
years
of
perity when, in late 1871, the Chi¬
cago
Fire
occurred.
This
was
fallowed by the great Boston Fire
ih November, 1872. These caused
The
had
another panic.
•
market had just about
The
when
covered
the
failure
of
for
;
re¬
the
acquainted.
for four years
in
ment
severe
1945
and
short
the
great banking house of Grant and
Ward,
plus
the
two
leading
"bulls,"
namely Henry
Viilard
and James R. Keene, announced
their
failures.
Depression,
as
usual, followed these, unexpected
Events. Business began to correct
in
a
"
few years,
corded
as
however.
ninety-two
Eighteen
a
year
of
was
great
homes.' ''
_
'.y'
y
is
cause
a
■
with Burton Crane that
nothing now in Sight to
coll anser but some "unex¬
pected event" may prick the bub¬
ble as it has done so many time*
'
before.
;
group.
-
turn
would
tinuing
after
told
thiSi sort
will become associated with
Securities Corporation,
Street, New York City,
Sept. 1 as General; Manager in
Charge of Sales. Israel and Com¬
pany will be liquidated. : "1
pany,
McGrath
Wall
70
Two With Walston Co*
y'
,:(Special to The Financial Chronicle)
Strike
following year the great
Pullman
Strike occurred.
This
was
the first serious strike and
he
was
campaign
ness
managers
caucussed
were
not
and
cockiness
a
which
at¬
it. I suppose, too, that he
always catch on as the presi¬
dent of a university.
tends
just muddying
can
told
(Special to The Financial Chronicle)
Nixon
is
drawback
a
to
back
he
has
been
to
the
Eisen¬
Stassen
wards
him
ceivably
is
Kimbell
such
that
if
?
These Wotcs were
was
added
been
staff
pany,
D.
Filosa
of Filosa Securities
407 Main Street.
Joins King
con¬
Colo. —
joined the
has
/ (Special
BOSTON,
Mass.
Tornoe
cepted it.
is
now
Merritt
—
Christian
with
purchasing them for investment,
$8,200,000
Walter E Heller & Company
:
Promissory Notes
'
Due July 1, 1971
.
V
,
B.
of
Company,
King Merritt Adds
ATLANTA, Ga.
—
F.:Eberstadt & Co,
Bobby I.
accom^
panied by a series of crop failures
and mortgage foreclosures.
become connected with King Mer¬
ritt &
Co., Inc., 849 Peacht^ee St.;
Northeast.
July 25, 1956
Com-
to The Financial Chronicle)
ritt & Co., Inc.
-
the
JUNCTION,
GRAND
Ernest
had
placed privately through the undersigned with institutions
to
(Special to The Financial Chronicle)
"peace" as
these senators would not have ac¬
y;yy&yy
it cast great fear and gloom over Moore and Donald A. Smith have
This
has
With Filosa Sees.
{
worked
out
"Secretary of Peace,"
he
•
staff of Wayne Jewell Company,
818 Seventeenth Street.
the
national ticket, it is not a circum¬
stance to how much of a draw¬
,
: DENVER, Colo.—Mrs. W. Kate
,
But he won't catch on with any
Republicans. When he tells of how
they hower Administration; The feeling
going to be "delivered" among Republican senators to¬
and
Wayne Jewell Adds
y
(Special to The Financial Chronicle)
.
■
.
too,
upon
'
Serious
country.
a
Eisenhower
the
him
of
With Allied In v. Co.
The
the
to
over
.
*
I
he
*■
corporations and its stock would Allied
Investment
today be included in the "Blue Walton
Building.
.First
Mc&rath Securities
Ivan Israel, of Israel and Com¬
re¬
prps-
H.
Ivan Israel to Join
I agree
there
Old
G.
,
steel?
perity, when suddenly the failure
(Special to The Financial Chronicle)
of the National Cordage Company
; ATLANTA, Ga. — Richard
was announced in May, 1893. This
was them one of the ten
largest Langley has joined the staff
Chip"
with
readjust-{
1952
strike, our country has enjoved
unexpected failure brought on the prosperity - for about 19 years,
great depression beginning in 1873 with full emoloyment. This lhas
and extending for some years.
been due to the growth of the in¬
.Suddenly,
on
July
2,
1881, stallment business, price and wage
President Garfield was shot. This increases and guarantees, gener¬
started a chain reaction of selling. ous pensions, and the easy terms
During
tbi<?
e*»pond
tbrv for building and purchasing
itself
got
excep-
tion of the
the
with
York
Walker & Co. and Wood, Struthers
& c°.
v
what could
Stassen to
attempt it. The only answer that I
know of is his perpetual youthful-
Eisenhower. He insisted upon con¬
partial rebound up to 1937,
a
New
in
This
weeks.
several
Was really just running
You- wonder,
that any delegates have prevailed
for Eisenhower,
he
Beginning in 1938 there was a by anybody, that they were for
definite
recovery
in
business-' Eisenhower period.
throughout World War II, but this Notwithstanding this clear evi¬
did
hot help the stock market
dence that Stassen had, lost what
much until 1942. With the
great banking house of Jay Cooke
and Company was suddenly an¬
nounced. Then, for the first time,
the leading Stock
Exchanges
closed
a
of
stock market
associated
and
yyy,
the
pros¬
'Roger R. Sharp
d
Colony Trust Company in Boston,
family;
with
Europe
withdrawal
quickly rebounded, and
again investors were looking for¬
to
been
themselves to the attention of the
the continued
"the waters. 'Tf ;
Jgold, climaxed by
Very" likely he has told the
very
sudden failure of the
Austrian Credit-Anstalt with President. that he delivered the
Minnesota delegation to him at the
startling repercussions throughout
convention but nearly
the
world.
Then followed sev¬ Chicago
eral
years
of depression,
with every observer at that convention
knows
that the delegation had
which readers are well
suddenly due
the gold market.
: Stocks
ward
is
he
that
in
Collapse
European
a rv a r
DENVER, Colo.—Ivan G. Dollar
Eisenhower will be forced to take
and Charles A. Both have joined
obligated to him. His contribution
somebody else. His undertaking at the staff of Walston & Co.,
to the 1952 Eisenhower campaign
Inc.,
this stage is really an undertaking
Mile High Center. Mr. Dollar was
was annoying. He was running for
against his benefactor,, the Presi¬ formerly
with
Merrill
Lynch,
the Presidential nomination him¬
dent, You can, imagine how that Pierce, Fenner & Beane; Mr. Roth
self and when he saw he was not
will .set withj the President.
; y;
was with Bosworth, Sullivan & Co*
getting anywhere, he announced
prices,
high
H
College with a Bachelor of Science
degree, Mr. Sharp had previously-
run.
y,'.-.-;; -y
President, but no one ever seri¬
within the party— ously runs for the vice-presidency.
doesn't like He is a man of the President's
squabble within the choosing.
iy;:
y^'- •>
—
It
into
A;;.
;•
the famous "Black
on
of
Aspirants,of
course, try to get their names in
the newspapers, develop political
strength with a view to bringing
Carlisle Bargeros
that.
rates,
This was
the stock
all-time
1929. V■
Lincoln, how¬
very
corner
don't
analyst.
A. graduate
the«President
of depression followed. ,!>1;; : ;:The unexpected events of this
Again business began to boom time were the business collapse
to the
dents
He has. got-,
controversy
a" year
Friday"
must understand that Vice-Presi¬
and
market continued to advance until
ever, caused stocks to tumble and
:
- c'h em i eu 1-
: *
in controversy
.
death of President
-
as
petroleum and
is what* he
peace
Research
•
To
ten himself in
interest
collapse.
corrected and
quickly
"Business was prosperous during
the Civil War and started to boom
The
because
friend¬
*
national
entrance
our
due
afterward.
is
he
ship and court¬
World War I. All went well until
This
>y-y Historical Shocks
directly
t
has
Roger R.
Sharp
has
j o ined the
Harris,
Up-*
Department
appreciate the gravity of
what Stassen has done now, one
official
sitania
mar¬
years.
is what I learned.
•
popular.
very
came
n
x-
announced
ham
Mr* Eisenhower y Eisenhower has said
Suddenly in
the
early
many times
1900s it issued a decision forbid¬ hasn't tolerated anything like this over that he likes Nixon and pre¬
in the past and it is not to be
fers him to be again on the ticket.
ding
the
consolidation
of
the
Great Northern Railroad and the expected that he will tolerate it Naturally he has said that it will
Northern Pacific Railroad.
This in the future. The expectation is be up to the delegates to the con¬
that the country will shortly be vention. But it would be an amaz¬
came out of a clear sky and took
the zip out of the stock market without the services of a "Secre¬ ing upset if, the President having
until the First World War broke. tary for Peace"
which is whati expressed
his
preference,
the
After the closing of the New York Stassen's job has been called. :;y- delegates should do otherwise.
Stock
Exchange for more than
Notwithstanding that Stassen is
So what Stassen has now under¬
four months, there followed some now approaching
50, he* is ap¬ taken
to do is to put the heat on
years of prosperity, then a series
parently destined to always be a the
President, to arouse so much
of surprise business failures, along1 bumptious
"young; man." Eisen¬
c o m m ot i o n
about Nixon that
with the sinking of the S. S. Lu- hower was not in the slightest
in
New
York. City,
which
crippled its subway system. The
following day Ringling Brothers
announced the suspension at Pitts¬
burgh, in the middle of its sea¬
made
crash
states.
fire
markets.
that
then
were
final-
side
r e
jeopardizing
government has been friendly to
business, with no commissions or
Wanamaker
great
-Nixon,
■
day after I read this book, there
occurred
has been trying to accomplish.
period.' other
retarding factors. The Su¬
does
not, preme Court had been content
w e v e r,
to decide questions between the
mention
expected events."
Dulles
P
San Francisco earthquake which
ing political
dragged prices way down. ?yy;y;:y disaster. :
;
an
nite
He
a
of
E
that
post of. "Secretary for Peace." In
that position" he has. been getting
jn the hair of" Secretary of State
against? Vice-
The
occasional dip
how and then,
for
lead
and
g ;t o
revolt
n
which
•
con¬
tinue, with
ek i
pected; cause of "undigested se¬
curities." This: panic resulted in
'to
keep the
world safe,"
prospe rity
s e
the investigation of large life in¬
surance
and
traction
companies
for¬
markets
up
eign
traces
large security offerings. Sud¬
denly, in 1903, there came another
panic due to the still more unex¬
s
-
the New York
the
,
1
coast
to coast and
v Lisenhower
is
just political strength, he had ever had,.
only influential: friend Eisenhdwer made him the director
that Harold Stassen can claim in of foreign aid. Stassen so rubbed
's
hmay prick the bubble. '
■yy;
y,y.y,'
Republican, official circles which, Republican senators the wrong
Last
night I finished Burton
Again in 189,7 business steadily o f course, i s
\
\ ~
' ;
way, that Eisenhower had to get
Crane's Guide to National Eco¬ improved
rid of him to continue, to get any
and" permanent pros¬ enough.
B u t
perity
was
nomics,
entitled
now, in break¬
"Gettingand
foreign aid. But still clinging to
-prophesied, accom¬
him, Eisenhower then created the
SpendingIt contains valuable panied by stock splits, mergers, ing over " the
sight to
11
King
Mer¬
The Commercial and Financial Chronicle
12
.
.
Thursday, July 26, 1956
.
(388)
-■V
and
economic
Peace,
World Trade: t Gateway to
achieving
-
;
-
JR.*
Director, Creole Petroleum Corporation
ly
tion is that the reciprocal trade
agreements act, as passed, includes
have to sell. Dollar grants
lasting solution to this imThe solution is a higher
level for two-way trade."
why our
to
many
ments, some of them quite impor-
tant, had been reluctantly accepted
should
I
like tb give
by the bill's advocates as a way
of getting it through and on the
TTT
American Jobs Depend on Trade
Here
amendments. These amend-
ume we
are no
passe.
have said that we could or should,
amendments to the recent reciprocal trade
act
Mr. Campbell takes issue with those who "believe in
world trade but
school of thought, deplores the recent
decline in U. S. investment abroad, and questions whether
work-r
„
period and progress for the entire
world.
One reason for the ques-
rapidly-expanding population cannot hope to hide, ostrich-like, in
its own economy. After all, some
ing the disquieting
and which we think we are
Instead it arises
for these goods.
of
desirability
the
assert
to
ing
for
tomorrow
is
actually
sufficient to promote pedfce, pros-
out of an inability of these nations
pay—in dollars—for the vol-
enough mere-
freer trade. So let us ask
which is whether the world trade
which ^we think we have today
us. The inability of many foreign
countries to buy our goods in the
volume .we would like to sell does
not arise from any lack of desire
be-
•
11
In taking
i
will
peace
- "
It is of course not
stock of our vital stake and basic advantages in
international trade, in terms of promoting peace, prosperity,
and economic progress, Creole Petroleum official assails pro¬
tectionist efforts to "sterilize" this country's trade policy includ¬
7.
world
.
NICHOLAS J. CAMPBELL,
Vice-President and
produce and sell more than the
rest of the* world can buy from
political ways of
accomplishments in
evident.
come
Prosperity and Real Progress
By
real
life that
books.
always well to put things
It is
you
the
Among
amendments
providing
officially
those
were
■
perspective, and it would new channels through which "into »me a mistake to assume dustries which felt they were be¬
an
excitedly that the debate now go- ing injured could apply directly
periences of my own organization, ing on over foreign trade is some- f0r relief through the facilities of
the Creole Petroleum Corporation, thing brand new.
The argument the Office of Defense Mobilizagrowing population standard of living requirements can
met
You must forgive me for talking is an old one, and perhaps we tion.
"behind an effective set of tariff curtains."
about our own affairs, but I am could see some of the present
jn a|j the excitement
a good
/
I
:
'' * If all of us could keep remember¬ reminded here of the remark made problems more clearly if we recall many people may hav4 missed
ing this word, I suggest our ap¬ by another in the same situation at least the highlights of the his- two points. The amendments made
One of the problems with the
he
.
proach to the complex trade prob¬ in which he pvnlainpH that he tnrv
in which
explained that he tory.
it clear that an unusual amount
familiar phrase world trade is not
lems and
opportunities we face would have to talk about his own
of protectionist sentiment existed
that it has no meaning; the prob¬
Free Trade vs. Protectionism
T
might be much more logical.
experiences
because
after
all
lem is that it
'
.,
throughout the country. And, perThis is a sophisticated audience, they were the only ones which he
has
far
too
J^.^3ubaps more important, the bill as
an
not
.
.
example with which you may
be altogether familiar. It is
example drawn from the ex-
into
seem
be
:
,T
■
and
differ¬
many
meanings.
ent
To
businessmen,
people in
nations,
any¬
the
in
world
some,
has
trade
Jr.
J. Campbell,
an
almostre-
"export" of intangible
services, such as insurance, ship¬
ping, aviation and banking facili¬
ties. To still others, world trade
means
the
export of American
"know-how"
a
/
Tariffs
■■■;
for
these
All
need
about
people will need
that
things
economists
our
food
—
the
talk
clothing
and
and
quisites is even now not a simple
job, and it has been pointed out
by others even more familiar with
world conditions than I, that many
millions of people in many differ¬
I
like
to
and thus
to
I
be
."
,
agreeable
an
man,
agreeably inclined
am
all such
meanings, so
far as they go. But often I feel
that they do not go very far or
that they do not mean very much.
Some of these concepts sometimes
support
to be little
more
than intel¬
lectual cliches. As the
scholars in
seem
parts of the world have lived
to maturity without ever having
had a good meal in their lives.
These millions of new people, I
suggest, will also need something
for
think
of
the
are
same
and
than food
clothing and
shelter. Increasingly they cry out
psychology have pointed out, we
are in
danger when we come to
that' words
Providing these basic re¬
ent
more
and
security, security against fear
security against the ravages
war.
cries I speak
These
of, I
things as the facts they are supposed to represent. A map, for ex-
need hardly point out, are not in
ample, is not the country it
sponsible for much of the trouble
we read of every day in the head¬
lines.
'
1 "
sents.
Thus
world
with
the
repre¬
of
cause
trade, it is sometimes
pos¬
sible to conclude that
we have it,
advancing it, even
when the facts do not support the
thesis. A typical trap, for example,
into which some have lamentably
fallen is represented by the "I be¬
that
or
lieve
we
in
school
that
we
are
world
of
thought.
"but"
into
are
that the
"
get
we
conversation
the
sometimes
heard
to
precepts of Cordell
fine
were
When
...
hazardously close to those
are
who
but
trade
for
—
say
Hull
businesses
all
except, of course, their
own.
Now Cordell Hull was not naive.
He did not believe in
taneous
abolition
of
all trade barriers.
which
in
the
all tariffs
He
lieve that it would
achieve
the instan¬
or
did not be¬
be possible to
future
world
a
in
all tariffs could be forgot¬
ten and in which the citizens of all
nations
one
could
another
Baltimore
with
which
word
as,
and
say,
3
we
freely with
citizens of
Cleveland
another.
one
•^"l^^sed
trade
W°£d
often
so
"reciprocal."
This
trade
is
why
mining^of,
the
forget
It
—
was
reci¬
procity he had in mind, a kind of
quid pro quo in the trade world.
*An
World
address
Trade
by
Mr.
Luncheon
Campbell
at the
commemorating
World
Trade Week, New York City.
academic. They are re-
any sense
In view of this
which
in
to
>
live
we
speculate
these people
good many impor-
a
heavily
Q£ Congress to an already
loaded administrative agency,
Qinr<* that time
much ha« ban-
hSets
/e eonSnuinTthe^^effOTte
reaching
War,
as
—
in
behind
their
an
to
whether
all
even our own peo¬
standards
effective
set
of
living
of
tariff
curtains, I suggest that the answer
is in the negative/ But I suggest
also that this negative fact is
often
too
become
lost sight of as we
preoccupied with
diate problems.
If
economic
by a professional
us
if we could
statistical group, to see
pinpoint some of the areas of the
in
which
Venezuelan
was
of significant importance. When the survey was done,
country
trade
we
able to locate by name
were
and location some
which
companies
in
4,000 American
were
of the 48.
out
states
cated
in
Their
exports ranged from pack-
aged foods
in
many of the
look
exactly
-
Caracas
supermarkets
here — to
earth-moving equipment.
stores
like
giant
here will be interimportance of Ventrade to New York. We
Most of you
in
ested
ezuelan
the
New
that
found
York
State
ac-
counted for about JL8% of all U. S.
our own
V
imme¬
.
shipments
totals
some
electrical
graphic
equipment,
flCe
equipment,
machinery,
equipment, auto parts and acces¬
sories, medicine and, of course, a
host of other products. Most of
these products flow through the
Port
of New
York, which last
harmonious relation¬
ships among the people of all na¬
tions.
This, to put it somewhat
colloquially, is simply a matter of
"getting to know the other fel¬
low." To me, one of the most im¬
portant benefits of world trade
handled
the exposure people
have to each other
—
meeting and
dealing with individuals of differ¬
lion of shipments to Venezuela.
The survey supported our thesis
rather
significant
of Venetoday, although efforts are
being made in the direction of
diversification, rests very largely
on the sale of oil.
Any interrupfact
well, for it is
that
the
respect
for
cases
invoWing nahonai
3e-
there ,.may
be justification
for special consideration; but often
the thread of reasoning by some
fense
S.
industries
revulsion against
seems
when
trived
somewhat
con-
they go about provrole to national
vital
Three successive acts of ConAlarming Decline in U. S. '
raised
high
tariff, walls
Investments Abroad
against imports and no doubt con- J Another
cause
for
alarm, it
tributed
to
the
breakdown
of seems to me, is the recent decline
gress
trade which deepened
the world-
wide depression of the" 1930's.
of
drastic
these
jn u# g. investments abroad.
Last
The>yeaj*
such investments dropped
$75 million in total, in spite of a
the
was
Smoot-Hawley bill, which passed sizable increase in Latin Amer1931 over the strenuous objec-> jca and Western Europe. While I
tions
of
some
economists
who hardly need go into the detailed
foresaw disastrous repercussions,
advantages of such investments as
in
Finally came the idea of a reciprocal trade policy.
About 20
a
stfmulu?to
wodd trade
particularly like to
I would
point'out
that
Congress approved the - such investments do more than
reciprocal program under which generate increased trade. For one
ago
years
we have been operating in recent
years. The Trade Agreements Act
thing, they develop an increasing'
flow of services between nations
of 1934 authorized the President — insurance, banking, shipping
to enter - into agreements with and other "invisible" exports. And
other governments for the reduc- more importantly, they provide
each
other's
social,
a
economy
with
...1
!Sctl
a
hnt T
thlw
th6S6
these developments in trsde poldevelopments in trade policy reveal the deep roots in our
history of the two forces - free
trade
and
protectant-- with
Our problem is not a new one.
Solution
will
recall
Eisenhower * had
President
up the
point in these words: "The United
States
stands
ready
and
able
to
Qcoiji-np
sariiv
Loopholes in Amended Reciprocal
Trade
Because
the
of
Act
scope
the
rocal trade agreements act of the
year,
bill celebrated as HR-1.
Friends
and
allies
in
every
of the world had reason to
take comfort from the fact.
But it is here, again, that I
part
come
back
to
a
basic
that
ofother
mv
no
view**
right to,
are
neep<?-»
coeent than the views
an7,tisno^
mv
olace
a
lively interest in the matter.
us has any monopoly on
of
being right, but I am reminded of
the remark of Mr. Justice Holmes
of
problem, it was more than comforting
when
Congress
during
1955,
following
a
controversial
one-year expansion of the recip-
previous
certainly have
more
* «£% 7 aVade debate?bu?
None
our
that
summed
ters-' I
tain
.
You
continued interest in trade mat-'
' at the sameoftime of us to main¬
U is the re"
sponsibility
all
IV
finally passed the
The effeet of the bill was to extend
tion of these sales, it seemed clear, reciprocal trade for three years,
would directly affect jobs in this ending in
1958. The Act was a
country, and without providing matter of national policy, and the
any parallel benefits.
President himself hailed it as a
milestone. We were, as a nation,
Dollar Grants Are No Lasting
officially in favor of world trade,
ent
backgrounds, different reli¬
gions, different ideologies. For it
is only when we truly begin to
have mutual
understanding; and
more
than $250 mil¬
zuela
more
in
a
£ow,
foreign entanglements and showed ing their
a desire to forget about the rest 'defense
Gf the world.
t
products, chemicals, paints,
products and machinery.
Exports from up-state cities like
Rochester, Buffalo,
Schenectady
and
Syracuse
include
photo-
metal
year
healthy
consists
through
own
to Venezuela,
which
$525 million annually,
paper
trade can help lead
to a more peaceful world by fos¬
tering economic security and rais¬
ing living standards, it can also
contribute substantially by build¬
ing
went
engaged most
export
trade
to
Venezuela
These companies were lo-
alone.
44
return to protectionism. The U.
sLkfne sDeJlal^terifl
fnr their
Darticular moduct?
Nowlreal^e of bourse thatina
tion of specific duties by as much economic progress for the people
as 50%. By 1951, agreements had 0f the nations where American
Exports from New York City in- been concluded with 53 nations capital is put to work.
changing world elude food products, drugs, cloth- and covered more than 80% of the
All these signs, I think provide
it is interesting
ing, toilet goods, synthetic fibers, U. S. foreign trade
w,,
us
with- continuing reason for
ple in our own country — could
reasonably expect to make prog¬
ress
to make the point if we
support it. At the time, we
engaged in a survey made
could
were
this.
.
Civil
the
million jobs
right
shelter.
Believe in Trade But
removing
tant policy matters from the halls
SMior1 ST&ftSSti
at..a; good number^ of these after
four
With Higher
to detail for an audience such as
"1
passed seemed to have the effect
years
was
—
rapid rate.
Can Not Progress
edge and skills that can help other
people to help themselves. And of
course
there
are
a
good many
other meanings that I do not
many
might be en- peaks in the McKinley Act of
ents of these new 60-million citi¬ dangered. The problem of import 1890 and the Dingley Act of 1897.
zens are already here and
only a quotas was of course only part of Then came a period of moderacatastrophic war would be likely the overall trade problem the tion, beginning with the Payneto interfere with the soaring rise Congress then faced.
••
-'Aldrich tariff of'.1909 and culmiof the population growth. At the
But, since our company pro- ™*Ung in the Underwood Act of
same time,
the population of the duces oil entirely in Venezuela, 1913.
^
world at large is also growing at we felt that we had a legitimate
After World War I there was a
knowl¬
technical
—
,
for
ly interested m this, for as it hap-
likely to grow to the level of
220-million people. The par¬
is
To others, world trade
the
means
.
.
which
trade. We at Creole were extreme-
some
.
gional or geographical connota¬
tion, as for one who trades in the
Far East but has no interest in
the West.
during 1954 that PresiEisenhower remarked in a
It
t
To
world.
,
.
the high-tariff protectionists were pened t0 provide'a basis for real
dominant. At other times, the {.rtnrprn ornonff thn«?p nf in? who
pened, we were engaged in the low-tariff advocates 6i expanded believe that freer trade—note that
have just cited is a big number, task of pointing out that if im- trade made inroads.
I do not say free trade—is imporbut it is going to be very much port quotas were to be imposed
With some interruptions, there tant to the world.
bigger very soon. In less than a
generation, we are reliably told, o«
this already enormous population quotas were actively being pushed i789.
This became a rising tide
orgaihzluons and ihduSi
other
where
perhaps we can help
our common cause if
probe behind the cliche "world
out what it
means in reai terms to some 160million Americans, to their lives
and their fortunes. This number I
.,
has existed in the U. S. bedent
tween two movements—the movememorable statement that some
nients lor tree trade and protecfour million jobs in America were tionism.
directly
dependent
on
export
In some phases of our history,
J.
trade" and try to find
ufactured here
nations
already con¬
are
we
of goods man¬
to
advance
to
trade
the sale
means
who
But
verted.
some
world
those
vert
.
conflict
sharp
had ever had.
not here today to con¬
are
we
question
who
said
that
the
best
test
of
an
idea is its ability to get itself accepted in the market-place of
public opinion,
The direction of American trade
policy today is more important
than it has ever been before in
our history.
The strength of the
free nations and the preservation
of peace depend to a very large
degree on America's decision in
this area. The newspaper headlines show how desperately the
world community needs leadership, and cries out for integration,
not
disintegration.
The standards
of living, prosperity if you will,
of all the peoples of the world
depend on healthy trade among
nations; and progress in the form
Volume 184
Number 5554
The Commercial and Financial Chronicle
.
..
<(339)
1 " understanding. -and ital- of more than
$13 million..
At, present ;thp^ aviation indusrelations is, heavily de-, Property account carried on the try is the principal user of IVLR.C.
books of the corporation at $8 Bearings>• accounting for. almost
on it.
It is fitting that at this time- million has been depreciated by' "one-third* of the sales; The auto¬
almost $10 million.
Plants are mobile companies purchase about
each year we take stock of our
of
t
ra u
u a
.
friendly
pendent
With Slayton & Company
With King* Merritt
(Special to The Financial Chronicle)
.
(Special to The Financial Chronicle)
,
.
vital stake in international trade.
located
But
comer, N. Y. and
I suggest, throughout the
year—in pur daily work—we also
,
find time to reflect
of the
on some
basic advantages of world trade:
and all
Jamestown
at
are
Dividends
tinuously
(1)" World trade is good for
peace because it is one of the best
ways to eliminate the economic
pressures
which,
if unchecked,
might
readily lead
to
another
and
Fal-
12% of the output.
Here is a stock
Plainville, Conn.,
in excellent condition.
have
since
been
paid
1924.
not
rise for the past three years
looks
my
opinion that the $1 dividend could
you
be increased in the
in
near
has
participated at all in the market
con¬
It is
that
ST? tOUIS, Mo.—Clarence Bach,
PONTIAC, Mich —- James F.
with Slayton* '& Co'.* 408 Olive Parker is now With King,. Merritt
& Co., Inc.
Street.
is
future.
attractive
no
matter
look at it. The stock is traded
the
Over-the-Counter
With Federated Plans
and
how
Market.
With Mid South Sees.-
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
HILL, N. C.—Arthur
DeBerry, Jr. is now with Fed¬
erated Plans/ Inc.
CHAPEL
NASHVILLE, Tenn.
-r-
John H.
Brock is with Mid-South Securi¬
ties
Co., American Trust Building.
world, conflict.
(2)1 World trade is good for
prosperity, because it can foster
higher standards of living, every¬
where.
■
•
(3)
•
*
■•'■J.;*''-:v;
World
trade
because
progress
is
for
good
it leads to
mu¬
AlT***'
I Aircraft Simulators
and
tual understanding among people'
as well as to interchange of ma¬
terial
Components
resources.
Car
Continued
from
Leasing
2
page
The Security
I Li
with
in
other process presently
any
Oil Field, Pipe Line and
Industrial Valves
use.
y-i? How Business Is Growing
Table
orders
II
forth
sets
received
Electronics
the
new
the
during
,
pe¬
riods indicated and the volume of
unfilled orders at the end of such
periods. For a summary of earn¬
ings, reference should be made to
Table III which is lifted, in sub¬
stance, from the company's pro¬
■i
spectus covering the new $15,000,000 of subordinated debentures.
Artillery Shells
•
'
i.V.
••;
...,
di'lf Conclusion''
It is customary
to allude to the
INDUSTRIES f
iron and steel industry as
"basic";
nothing is more basic or so
basic as the production of power.
Cheap power is the one single
but
factor
basic
of
the
in
varied
our
development
in
industries
mass
Evident, then, isn't it,
company like Combustion
Engineering, through its research
and management, is super-basic?
Hence, I recommend its stock as
affording a guarantee, in so far
as
anything can be guaranteed
beyond death and taxes, of con¬
production.
that,
•
a
tinual year-to-year
growth
Carburetors, Fuel Pumps
and Filters
as our
Nuclear Energy Products
population increases and its needs
multiply. The stock is listed on
the Ne_W_ York
Stock Exchange
and
a
selling, at this writing, at
is
price of 30Vs.
/
/
Railroad Equipment
ARTHUR MARX
,
Andrews, Posner & Rothschild,
New York
Members:
City
New York Stork
and American Stock
Exchange
Exchange
Marjin Rockwell Corporation
At this
to
find
time
that
stock
a
'
:
it is most unusual
appears
QCf Industries,
in every major
at¬
that
we
Incorporated, recorded gains ■'
s
year
for the fiscal year
was a
year
of
progress
has been carefully
a
program
planned to make full
QCF organization,
use
0 a go. Marlin
earnings 1952-
per
share.
Marlin:
6,855,000
4,882,000
4,019,000
'/ 510,000
2,654,000
.
.
Dividends Declared—Preferred Stock..
of the
Year's
facilities, and skills.
Order backlogs and the present rate
8,008,000
Dividends Declared—Common Stock.
that"
2,616,000
182,000
......
10,958,000
9,124,000
.................
53.650,000
52,827,000
Earnings Retained in the Business
Federal, State and Local Taxes
,
average
$245,585,000 $190,774,000
Net Income (after Federal Income Taxes)
in sales, earnings, and
diversification
•
1955
1956
Net Sales
It
preparation for growth under
years
ended April 30,1956
ended April 30,1956.
used
>
.
SUMMARY OF THE 57th ANNUAL REPORT
.
product category during the fiscal
tractively priced even though one
uses
the yardstick of evaluation
Working Capital
orders
Number of Preferred Shares
Outstanding
137,467
470,393
give substance to our confident appraisal of the future—and
Number of Common Shares
Outstanding
1,260.167
857,319
Dividends Paid Per Common Share.....
4.00
4.00.
Earnings Per Common Share*
6.08
5.17
indicate that
we
shall enjoy
of
new
substantial returns from this
planning in the current and future years.
'Bated
on
(tie number ol
shares
.
outstanding at April 30, 1956.
manu¬
factures
ball
Arthur Mar*
bearings for a
highly diver¬
sified line of customers and is part
of a very vital industry which
has never been static.
.
It is
there
a
INDUSTRIES
fairly large corporation,
are
1,356,980
shares
out¬
employs over 3,000 people/has
gross:
30 CHURCH STREET
AMERICAN .CAR
a
net working
AND FOUNDRY. DIVISION
•
•
NfW YORK 8. N. Y. ~
AVION
a
operating profit of almost
$9 million and
G
INCORPORATED
standing with no senior securities,
_
13
cap-
NUCLEAR ENERGY PRODUCTS DIVISION • SHIPPERS*
DIVISION
*
CARTER CARBURETOR DIVISION
CAR UNE DIVISION.
.
•
ERCO DIVISION
W-K-M MANUFACTURING COMPANY^
INC.
4
14
The Commercial and Financial Chronicle
(390)
Dynamic Forces in Operation
Affecting Our Future Economy
In calling attention to
a more
elusive
in
future as the ones cur¬
Dr. Johnson discusses:
(1) the changed savings structure and effect upon equities and
be
may
important in shaping
as
rently part of the public
our
|
toward
I
refer
four
to
great
economic
are
omy
and
which
likely to influence the econ¬
during the coming decade,
probably
for
25
or
longer.
These
years
from the
past,
part
whose
ei$gisioned. I suggest their direc¬
tions of
I)r.
powers
fv
.
ij».
-
*f
as
forces
The
surge
which
development.
our
are:
Structure
of births since 1939,
the formation* of
assures
families
and
large potential con¬
1960's.
demands during the
sumer
Pioblems of the Changed Savings
-
.
During the 1930's the propensity
to save, to use a favorite phraso
of economists, outstripped the ef¬
fective
private
investment
de¬
Funded"
stability, growth of productivity,
the
and
preservation
ture of the West.
These
forcfes
of
are
the
cul¬
interpreted
quite
properly as supports for
dynamic anticipations in an enter¬
prise society. Perhaps on balance
they condition'.the economy to¬
ward
inflation.
JThey
and
who
income
flow
from
upper
upper-middle income groups,
typically are big savers, to
lower
lower-middle
and
income
groups, who are not. This action,
combined with the initiation of
rather
broad
tended
social
guarantees,
structure the society in
to
favor of debt creation rather than
doubt
- no
saving.
»
*
.
have
placed a major part in in¬
The
entrepreneurial
function
fluencing the managers of our
which already -had become some¬
great corporations; to undertake
what disassociated from the-ac¬
the
extraordinary expansion of
productive facilities characterizing cumulative function, shifted still
.
■
the
,present, and to persevere'in
plans even * when consump¬
further.
A
breed
new
such
priser
tion
temporarily fails to expand at
a
steady; rate. They underlie. in
part the' aggressive purchase of
equities by individuals and insti¬
live
tutional
those who could
investors,
and
they
ap¬
have been assimilated into
the subconscious of youth,
leading
them to fearly marriage and cou¬
pear to
rageous
If
undertaking of debt.
explored the assumptions
we
upon
which
jected,
mism
the
trends
might
we
find
built
grounds.
on
Yet,
are
our
rather
on
pro¬
opti¬
uncertain
the
whole, the
dynamic, ex¬
anticipations of a
panding
environment
appear
better justified than anticipations
of a static society. I think there
is little justification for
expecting
stagnation
assuming
in
we
the
to
come,
our
heads,
years
shall keep
*An address by Dr. Johnson
semi-^nnuil
tond
Turner,
before the
meeting
of Eppler, Guerin
investment Bankers, Dallas.
developed
the
on
come.
the
-
.
of
enter¬
who learned
to
flow of "corporate in¬
During
the
successful
past
20
years
entrepreneurs and
have
been
corporate ' managers
to
debt
use
adrbitly
appreciation. Much of
sponsor
the
the
reflection
of
gence
of
account
rather "than
the
diver¬
valuations,
of conscious
accumu¬
lation. Although during the whole
period
great deal of net saving
a
occurred among
of
this
was
individuals, much
semi-conscious and
semi-compulsory, arising through
contractual
programs,
obligations,
social
ance
purchase,
lated
government
tions.
The
conscious
and
total
and
pension
security, Insur¬
war-stimu¬
ship
subscrip¬
of
purely
voluntary
saving
different
a
of
foreign
the internationalization of
enterprise. These bar¬
riers may be removed
but
if
even
lessened,
the
or
they
orientation of
are
not,
productive
our
chine to world resources and
Significance of
ma¬
mar¬
underway and should
increasingly important as
force influencing the develop¬
become
in
*
the
creation
and
of
ment of industries and
companies,
the location of plants, and the de¬
sign
capital
and
merchandising of prod¬
\
uct.
t
•
likely to draw exact
are
political leader¬
classifying the
one
another,
era
toward
the
Need
diminution
of
categoriza¬
simplicity conceals
which may be
stronger than party ideologies.
for Increasing
As
Industrial
Cartelization
-
,
,
inclined
as
attendant
an
;
development,
the cartelization of industry may
become a more powerful influence.
The
tendency toward concentra¬
tion appears already strong within
the
domestic
economy. * Despite
nomic decisions.. Such
competition"
underlying
the
our
tion through its
and corpo¬
regulations designed to discourage
combination, the consolidation of
forces
Governments, all levels of
ernments, are
tures
.
of
technological
necessities
private corporations.
as
for investment
gov¬
much the crea¬
as
in
The needs
which
areas
by
growth will occur at greater cost.
long custom and perhaps by neces¬
community which has achieved sity - are ♦!' governmental
already
employment"
of its man-? have become very large and prob¬
A
realities
technology snd need
markets, has ham¬
pered
route
government's participation in eco¬
including " those,' of.
commercial banks;. „and business;
portfolios,
imperialism.
the
American
of
b£
will
worlds.
in
for
It is to
adjust¬
affairs
of
Equities will be re¬
light of a higher
interest pattern; funded
obliga¬
tions will become a more hignly
prized component of institutional
"full
commitments
to
"atomistic
the
and
laws
and
business organizations and the in¬
in the relative importance
crease
of
few
a
strong
laws
firms
seems
tendency
to
are
a
.
extent
some
very
The
today.
tax
respon¬
sible
for
this
tendency,
but
stronger inducements exist in the
mangement
specialization,
con¬
and resources increases its
productivity and wealth in pro¬
portion to
its saving. Conven¬
tional
saving is not the only
medium to finance growth at full
ably will become larger and more
pressing.
An expanding popula¬
tion, its; urbanization,
and
the
centration of research, integration
access
to
critical need to improve the labor
which
combination
employment.
ating
power
force's
An improved labor
through health, morality and
force
effective
education
likewise
health
skills
and
are
great, capital requirements
which, under present distributions
con¬
of
responsibility, must be met by
government.
may
most certain to grow, very prob¬
ably will increase the proportion
of total
capital goods formation
which
is
motivated
by govern¬
rent
consumption,
would
limit
its
although
increase
•*.
for
quire
living
soon
more
likely to
we
shall
in
such
a
situation
find
governments competing vigorously
for scarce credit to finance their
pressing capital needs.
temptation in such
a
ment
to
U.
it
environ¬
S.
needs
f
"
V
Although the foregoing does
more
us
than
technological
and
*
ance-
will
Strongly
society
-major shift of income
re¬
be
than
internationalists
in ^con¬
isolationist,
influences of the first
sav¬
this direction
The
already is observable. The growth
of life
insurance, *= pension funds
and trusts, social security reserves
than
the
be
by
the
surer
a
first
and
masses.
program
-certainly
the
really
attack
has
upon
been V based
valid. If
distrust the concents
are
to
come
we
which
anti-trust policy is founded, the
restrictions, legal an-t otherwise,
will
soon
fall
into
upon
disuse.
Even
they have only very limited
efficacv, and it seems probable
now,
that
the
growth
decades
which
of
dynamic
expected will
he stimulants to further expansion
are
horimn+ally and vertically of the
great firms.
:J
y V
:
j
It
need
not
follow
function
of
will
curtailed.
be
dynamism
of
But
the
in
during
I
the
should
future
past
of
ten
the
will .become
looked
not
the
important,
more
the
Indeed,
society
function
think,
the
business
multiplication
firms
has
tvat
small
the
the
sponsor
small
t^e
it
years.
""iants,"
relatively
thev
are
political
un¬
and
upon
of
as
as
if
desirables, they may assume im¬
posing Positions* in national oolwell
as
as
in
produc¬
goods and services.
Other Forces Affecting the Future
These, certainly,
the
of
forces
are
which
only
will
environment.
our
few
a
decline
Accelerated
zation
of
agriculture,, reorienta¬
composition of
consumption, innovations in trans¬
tion
the
of
port, revolutions in construction—
clination
ings by lower Ond middle-income
program
whether
the
influences than any I have named.
our
po-
likely will
alternative would be to in¬ slitical/ commitments
-strengthen- the 5 international in-:
crease
might
which
uoon
sources-arid-markets, and
An
lating
to
as
.
have
40 years of this century.. Our in¬
dustry must reach abroad for re->
toward the corporation and
upper
income groups.'
;
V
This
facilitates.
questions
years
raised
markets
source
considerations during the growth of the service industries,
coming decades probably on bal-5 profound changes in the organi¬
trast to the
A trend in
and
no
imply consequences, let
rather
groups.
been
tion of
quickly to other forces
may* influence our future.
Political,
recent
of
assurance
assumptions and logical structure
move
which
a
will
contractually obligated
In
and
resources
icv-making
i
Drive
a
-
>
Corporations'
Internationalism
^»
It will be
an
treat governments'
preferentially. '
would be
unionized
are
they be supported by
savings do not increase,
permit this course. i doubt that*
a
re¬
realities
debt.' If
Nevertheless;, politi¬
expediency is not likely* to
tolerate
not
dictate that
accelerated.
cal
do
They
time, diverting -effort to creation
capital goods. If the resulting
accumulation
flowed
effectively
into the expansion of facilities, the
rate of improvement of the mass
of
ventures
equity, financirig directly.
might be "expensed," but
fiscal
of
Standard
Such
ment.
technology,
"combination"
v
-
of
cre¬
accomplish advances
In addition, the advancing tech¬
which are capital saving and per¬
nology seems likely to require an
mit some
progress
without ac¬
cumulation. But saving is neces-J accelerating rate of capital crea¬
tion by government in roads and
sary,
too.
If, there
are
saving
perhaps in other facilities. These
deficiencies,
we
probably
shall
slow our growth during the 1960's. needs, already very large, but al¬
of
industry.>
our
potential
-
of
the
.
great
American
'
corporations as forces
sponsoring r internationalism
has
not been appraised fully, but is
becoming so strong, I think, that
it
-
must
in state
become
policy.
a
consideration
The American
en¬
terprise can export assets pecu¬
liarly American, a distinctive ca-;
pacity
for
technical
innovation,
these,
and
war,
have
I
And
be stronger
may
granted
in
advance,
remember, that my
speculations are only that; tenu¬
as
will
you
and
ous
uncertain, .advanced
postulates,
Whether
is
rate
for
ture
on
We
rrind.
accu¬
You
an
and I ar^
extraordinary
together—the
the. 1960s.
is
significant, however,
of us be prepared
all
change.
barked
"nronhecv"
the
less*
that
than
as
probabilities.
not
We
penetration of
of
are
it
know
em¬
ven¬
a
single
will
be*
a
politi¬ ^organizational skills, and a pro¬ rhangefql, surprising experience.
cally^ In our present institutional motional-approach to markets, as We almost certainly are not pre¬
structure it might not provide the well as provide the conduit for pared for its problems except in
our willingness to adapt to things
equity funds necessary to support capital and know-how which most
new; and that, really, is the best
the dynamism of enterprise which
of the world urgently needs.
As
•
;
probably
will
characterize
the yet, our government has not pro¬ preparation of all.
1960's, but changes in regulations vided the shelters abroad wWoh
With Clisby & Co.
applicable to institutional inves¬ will premit aggressive entrance
would
be
more
tolerable-,
,
tors
bond
vator
clined
significant
by
or
with
advanced
our
resources
treatment
Roosevelt-Truman
money.
"corporate saving"? which oc¬ and union benefits
supported by
curred as a by-product of busi¬
investment
reserves
provide the
ness
growth during this period .format for
a considerable accumu¬
was
that
lines between
accelerating
technology, mand. We are a particularly sen¬
Restructuring the Savings Flow
potentiality of innova- sitive political community, and we
As I have said, we are a particu¬
tional opportunities in geometric responded to this circumstance by
progression,
offering
attractive creating an environment through larly sensitive political commu¬
new. inducements to consumption,
should
add, ! we are
government actions stimulating to nity.; I
and
demanding imaginative in¬ debt creation and private invest¬ strongly addicted to the idea of
material progress. It seems likely
Liberal
vestment on grander scales than ment.
mortgage
credit
ever achieved in the past.
supported by guarantees, an easy that we will respond as rapidly
savings • (if
money policy on the part of the to the deficiency of
The
expanded
international
Federal Reserve System, and sup¬ that really is what we face) as we
horizons offering outlets
abroad
ports provided by other govern-, responded during the 1930's'to the
for goods, capital and skills.
m e n t
instrumentalities, were deficiency of private investment
And certainly not least, the new
strong
stimuli to
private
debt demands. There are several ways
orientation of economic concepts
formation and, to a lesser extent; in which we might react. An ob¬
and polity which leads us to be¬
to capital creation. More impor¬ vious adjustment would be to re¬
lieve that government must pur-,
tant, through fiscal
policy and structure corporate and individual
sue
programs
assuring
intense
reorientation
of
bargaining income flows to favor accumula¬
utilization of manpower and re¬
strengths, government redirected tion. This need not diminish cur¬
sources in the interest of economic
real
of
use
within the society.
goods. We
its
the
consistent
a
The
with
tech¬
An attending force is the con¬
tinuing increase in the signifi¬
cance • of
government as a moti¬
tributes to productivity, and tech¬
probabilities.
the
to
ments in the financial
nology
of
course
influence, therefore, only
<.«*«£> vj>1
condition
the
they exert their ef¬
in one way or the other is
conjectural. Indeed, they may take
an
entirely different form than
be
These
difficult to fore¬
courses are
fects
upon
their
to
be
may
attitudes of men, which
Whether
see.
too much reli¬
may
but
variable,
and
partly
from
dynamic features of the economy
of
the general
public aware¬
ness.
Indeed,
ance
not
are
have be¬
placed
are
of equal
influence on our future. They are
elusive because they arise partly
events
come
elusive
state
a
attended
name
kets is well
;
tight
Thursday, July 26, 1956
.
onuus
Government
and
rates
valued
to
the
Increasing
environment simi¬
an
Such
consider a
group
of
forces
part of the public
is
purpose
been
strengthen government's par¬
the uncomfortable spring of ticipation in the economic process,
an
environment of rising and the Eisenhower period as in¬
1956;
rate
in
hoped
,
have, and I think there is
we have, we
be forced to accommodate
interest
new
to
dy¬
we
lar to
^
economy.',
My
awareness
influences,
stemming
now
the
the
strong possibility
may
to sustain the momentum of
sary
of
,
ourselves to
precepts of action if that is neces¬
which
power¬
already
dispatch, and adopt
more
ful
from
act with
be
is chosen.
In
capital?
If
a
inflation; and to underlie aggressive equity purchase.
and political circumstances
be
of
Obligations
rently with small firms' multiplication. The well-known and
easily defined forces are said to support the assumption of a
dynamic society causing extraordinary expansion even when
consumption temporarily slows down; condition the economy
J
1960's.
Effect Upon Equities and
(3) the necessity of American corporations to sponsor internationalism; and (4) need for industrial cartelization, concur-
v
has
inequitable
groups,
short, have we
conditioned our society to save too
little relative to impending needs
for
ing—as do private corporations—to technological necessities;
j
structure
new
environment
the
namic
*)
awareness,
findings; (2) growing governmental significance in respond¬
j
the
whether
tortions
and
was
appropriate
environment. My question
described
its
savings habits will be appropriate
of forces which
group
This
flation.
would
.
by continuous, in-v' The American tariff, too,
long in¬
without intent nique, essentially, of the past 15
has unpalatable conse¬
to appear critical through a choice years. It
of words and the connotations of quences, breeding speculative dis¬
in
University
alternative
saving"
It is easy
thesis.
a
is
|
The
"force
One must be careful with such
,
gram
Department of Economics
Southern Methodist
is
;
phrases. I think much of the pro-'
RICHARD B. JOHNSON*
By
Chairman,
com--
"X
still
was and
paratively. small. .
certainly
.
of
and
the
media
further
which
funds
in
ments
might
small,
development
equity
attract
continuous
solve
that
pay¬
problem.
of
American
eign
the
enterprise
markets,
protection
terests
probably
cf
into
for¬
because
American
in¬
has been given the oppro-
(Special to The Financial Chronicle)
MACON, Ga.
Smith
is
Bankers
now
—
with
Insurance
Raymond H.
Co.,
Cl'«bv &
Building.
Volume 184
Number 5554
.
The Commercial and Financial
.
.
Chronicle
operation
Britain's Autumn Prospects
* •' '' >■■>: By PAUL E1NZIG
'
level
"'•!
of
out
tween
the
the
-
the-
scheme
would
discrepancies
price
levels'
be¬
of1
the
participating
Dr. Einzig reports that
despite improved balance of payments/
the
situation, Britishers
structure.
\
■' :
" "
.
"
exhibiting widespread fear of autumn
crisis, with the chief source of danger stemming from the
are
government for
on
.-v
Western Europe.
LONDON, Eng.—On the eve of
the summer
holidays there ap¬
be
to
pears
lull
a
in
have
to
has
its
more
and
interest
down;
and
e
k
r
d
n
e
t^e
y.
horizon.
the
on
Nevertheless,
men,- politicians •' and
trators
aredeparting
well-earned
hearts.
about
rest
They
the
that
of
Autumn
an
>
crisis
that,
any
material
in the absence of
factors that would
even
of
77,;J
autumn
there
that
is
the
devaluation would
solution
of
the 7
This
in
ment, is most
/
loss of gold for the
net
a
far
J.
present
of
assume
not
t
The
of
source
be
to
not
danger to
economic stability lies in the labor
situation.
Soon
after
holidays
summer
on
will
This
centage
free
extent
influenced
raise
British
for
of
paper
quantitive
liberalization.
The
inflationary trend would
come
accentuated.
At
the
be¬
same
time the rising cost of production
would
further
reduce
Britain's
market. In this connection the
cent loss of
;
in Rhodesia is
significance.
a
7.-
by
the
resist
the
Unions
and
•/"*'//
•///
will
trade
that
restrictions
vanced
effect
in
wages
whether; the
these- demands
a
major
strong
strikes.
-
further
most
ment
would reduce
sufficient
purchasing- power: and
discourage caoital invest¬
expenditure.
hand,
the
might
be
On
balance
gravely
Government
is
fronted
a
with
of
the
the
payments
therefore
dilemma.
The
in
con¬
other
to
and
Mort
T.
E.
in
a-securities
Shaff
/
formed
.effect
em¬
demands, there
,*
with
offices
Herbert
L.
New
30
'
of
to
make
.
in
Paris',-.-to*, a
,
„
A
to
of
Hampshire Fire—:
Insurance
2.0
0.5
'
5.3
6.4
5.5
7.1
8.91
1.9
5.5
6.8
2.1
3.4
,
2.1
-
:
6.0
:
J
1.1
7
••.;>/.
;
7.4
.
5.1
7
—,.,7
Security Insurance.
--7
Springfield Fire————
2.3
—5.3
V 5.9
h-
/
_
1-2;
—2.0
'/"*•/
2.1
1.3
5.7
1
t
6.9
1.7
5 5
7-1
~ 3.6
&
Deposit———
Massachusetts
Seaboard
Bond
___—
Surety
United States Fidel. & Gty.
be
will
It
that
seen
there
6.4
14.2
2.6
3.1
6.6
15.2
—0.1
—0.1
23.8
3.5
•
5.6
1.9
3.3
3.8
___
5.7
4.3
—1.2
7.4
17.5
Casualty
American Reinsurance
•7/.: American Surety—
to
■
7.3
2.1
3.9
United States Fire——_—
Aetna
/
,*
—1.6
°-4
,
/
.
4.2
0.9
5.5
_______
Washington—_
7'
2.8
,
5.8
-
—1.9.
Insurance
20.4
4.3
21.7
.
5.9
wide
extremely
are
variations
companies. Those that write only a few selected risks
Seaboard Surety and Fidelity & Deposit) showed quite
as
Of
large profit margins.
conditions go
course,
to these, if general economic
as
into reverse their results will be far less favorable,
greater play and
for it is then that the "moral hazard" comes into
Broad
and
defalcations
numerous
are
inability
contracts
fulfill
to
in relation to the business written.
much
are
more
1
"blue chip"'
companies continue to turn in good showings. To the compiler of
this data it is apparent that for most multiple-line writers there
Apparent also is the fact that as a pattern, the
•
is less variation in the loss
ratio (losses and loss expenses incurred
ratio (expenses
premiums earned), than there is in the expense
to
incurred to premiums
written).
The differences from company to
in the expense ratio, assuming their lines
company
reasonably comparable, are greater than in the loss
Bright
but they do have
control over their expenses.
underwriting profit
show long-term
With Hamilton Managem't
NATIONAL
a
large measure of
capable management.
exhibit is, perhaps, as im¬
margin
fire-casualty insurance in¬
portant a statistic as we have in the
H.
¬
Therefore, lower expense ratios are
fairly generally the product of more
This
of business are
ratio. Manage
relatively little control over losses, which are so largely
Bright & Co., 84 State
Street, members of the New York
and Boston. Stock Exchanges.
Basically, it is an indication of a company's ability to
dustry.
up
(Special to The Financial Chronicle)
BOSTON, Mass.
Perlich
for
staff
goods.
certain
of
growth. I
:
..
Hamilton
127
added
Bankers
the
to
Management
V
"common
market" scheme is very tempting.
Its
supporters
argue
that
the
7
to
the Government
West
,'
Join Investors Planning
-
••
.
dinoor,'
Richard
Mass/— Philip Ab-
Henry
Mandell
Hunt
E.
have
connected with Investors
and
become
Bank Stocks
Lcndon, E. C. 2.
(London)
Branch:
End
Planning
Corporation of New England, Inc.,
68
Devonshire Street;
land
Fund
Reserve
conducts every
£2,851,562
£3,104,687
description of
and exchange business.
Trusteeships and Executorships
undertaken
on
Members
120
American
Stock Exchange
Stock Exchange
YORK 5, N. *
BArclay 7-3500
1-1248-49
BROADWAY, NEW
Telephone:
t
Request
Laird, Bissell & Meeds
Members New York
£4,562,500
banking
also
.
Protectorate.
Capital
Capital
Paid-Up
Bank
Analysis
Aden, Kenya,
Authorized
The
ANALYSIS
&
13 N, Y. City
in
Tanganyika,
Uganda, Zanzibar, and Somali-
Burma,
Ql/ARTER..;
SECOND
COMPARISON
13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon.
(Special to The Financial Chronicle)
•
'
Kenya Colony and Uganda
"'Head Office: 26 Bishopsgate,
Street.
Fremont
BANK
of INDIA, LIMITED
Leonard A.
—
hasbeen
Corporation,
'
the
4.2:
—0.5
—...
7.0
0.9
—1.0
...
j
.
3.1
6.2
'
7
3.6
.
2.0
9.6
America
v
rill has been added to the staff of
a
Of course, the theoretical argu¬
favor
2.5
,
1.4
North
5.8
5.0
■■/;>
Westchester Fire
(Special to The Financial Chronicle)
Elmer
10.5
1.2
5.5
3.4
.
dis¬
Tempting Argument.
in
'
'
exports
duties
continental
1
3.3
„
>Pacific Fire;.——
1
BOSTON, Mass.—Frank F. Mor^
Western
Britain's
Insurance
Union
Fidelity
:
9.7"
.
,//.. North River
been
Stern.
4.3
Fire......
Co.
Northern
business
;•
2.8
7—1.4
2.4
the result of force majeure;
'
4.9
0.8
—0.7
—
Insurance
National
,
ment has
S
13.8
Fund
National Fire
--
from offices at 87 Spring Street.
Joins Elmer
12.7
0.5
Insur.
//•
Sidney Friedman, Louis E. Gold¬
and
5.3
12.0
Fire
Home
have
securities business. Partners
stein
3.0
0.6
Hartford
Street, New York City to conduct
a
2.5
1.3
Continental Casualty
Co.
has
at
8.7
0.8
—
St. Paul Fire
and
Company
7.4
Falls
Hanover
/
Trona Company Opens
r 0 n a
5.5
American
(such
T
,
,
—3.6
Glens
among
>
-
3.3
Great
/
from offices at 1 Park Avenue.
.
3.1%
_
3.2
Shippers———
T Providence
Shaff
F.
,/. 3.3%
1.6
/ Firemen's (Newark)...
.
Exchange,
McGay,
A.
•/. BOSTON,
monetary
in * their
import
lowering of tariffs.
ment
wages
Jack
S.
engage
of
Should
would stiffen the resistance of
ployers to
Stock
Harold
formed
Britain
Continental
out
extent
influx
O.E.E.C,
-
which
York
that
Average
1946-1955
2.6
•
Insurance.:
Fireman's
VERNON, N. Y.—Anne F.
Shaff
Notwithstanding these consider¬
ations, Mr. Macmillan comVnitted
himself at the July meeting of the
other
affected.
it pursue economic and
policies
of
work
Continental
consumer
would
favor
would
disinflationary
because they
and
appointed Sales Man¬
of the firm. ' " 7/ '// \
1 :v
MT.
could not benefit bv reductions in
one
New
0.0
-
—2.4
Association..!..
Fire
•
'
advantage, Owing to the ^higher
British
prices, British exporters
the
Moreland
&
Fidelity Phenix
are
.
much
than- in
so,;
press
of
the firm
Form A. F. Shaff Co.
by
On
means
of
Insurance
Insurance
Insurance
Federal
&; Co., 120 Broad¬
New York City, members of
ager
is
hand, such strikes would
by
produce
inflationary
if
Partners
'
Average
1951-1955:
1.3%
7
Continental Insurance
V
&
Jr. has been
employers, including nationalized European countries. Any removal
industries, will have the courage- or relaxation of Customs barriers
to
Moreland
been
announce
inopportune for a British partici¬
pation in it. Wages inflation ad-*
fact of the utmost
The question is whether British
demand,
Bankers
Boston
McDonnell
way,
of the scheme may be in the long
run
the present; moment is most
re¬
£25 million contract
a
ended with 1655. '
"
of European Customs Union under
a new name. Whatever the merits
competitive capacity in the world
or
''
Moreover, there is
growing pressure on the Govern¬
ment by,.a large
section of the Form Went worth Research
Conservative Party
in favor of
'. BROCKPORT, N. Y. — Wentparticipation
in
the
projected
Corporation os
"common
market";: scheme Tor worth ; Research
Western
Europe. It is * the idea engaging in a securities business
porary standstill. Too much money
would be chasing too few goods.
actively traded fire and
consolidated in cases
more
This material is
Insurance
Phoenix
and 1 wood
the
per¬
instalment
time
a
7
and
Agricultural
McDonnell & Co.
the
at
operations,
profit margin
more, wholly-owned affiliates headed by a
it is presented in three periods, the year
for the five years ended with 1955; the average
one
average
American
7.
sent
substantial
wage
demands,totaling several hundreds of mil¬
Risky Policy
lions of pounds, Should the em¬
4
At a time when the balance of
ployer concede a large proportion
payments position is still precari¬
oi the claims, it would, increase
ous it was decidedly
risky to em¬
consumer
purchasing power to a bark on a further
considerable
the investor
investment
1955
a
wherr the expansion in production
appears to have come to a tem¬
of the
group
a
>.
.
end of nearly 10% to 94% which is the
number of highest
percentage
in* Western
important Trade Unions will pre-: Europe apart from Italy.
^
the
t
•7
the
of
pulp.
the
company's
..A
!
the Govern¬
reason
restrictions
Labor Danger
r
1955; the
Currie, with headquarters in the
inflationary
was
import controls* the Gov¬
ernment has just removed import
,4
are
company,
for tne ten years
unlikely to resort to
itself
favor
expected to
dangerous proportions,
J.- Marvin
Marvin
forced
is
parent
1931
yielding to pressure in
supporting the balance
payments with the aid of rein¬
tion
loss
where there
scheme.
changed to Moreland, Brandenberger, Johnston &
from
whole of 1956, on the basis of the
known facts of the present situa¬
that
of
has
Co.
pro¬
lowed
lead to
important.
albsit
secondary,
insurance stocks:
on
the
from
(or loss margin) of
GALVESTON, Tex. —The firm
name
its ideological dogmatism in favor
of freeing international trade. So
during the
year
should
income
casualty insurance stocks.
Admits Johnson,
New Firm Name
whatsoever." The ' Currie.
Britain's
is
<
spiral.
either
tages. For this
if the deficit
is
while growth comes from the underwriting.
Let us look at a tabulation of the underwriting
enough
without' ag¬
market
common
industry
strong selling point
a
his
Aetna
Gov¬
and
the
the
as
derives
quite
hand
on
used
desired
J. M. Moreland t
no
lion, during the first six months,
of
has
the
the
Underwriting Profit Margin
renewed
..
half
It
in
of
,
reasons.
In itself the balance of
that solution.
'
,4; 4 /'ii-'V?;
payments position does not appear:
While from this point of view
to be menacing. There was a sur¬
the Government is realistic, from
plus of something like £100 mil¬ another point of view it has al¬
even
far
very
end
Without the underwriting activities the company would be simply
an investment trust.
Indeed, that very combination has long been
cost of living. Although it would '
Mr.- Johnson, prior to
joining
temporarily improve the balance the firm was a partner in Magill,
of payments, in the long run the Wareing & Johnson.
accentuation of the- wages spiral
would wipe out any such advan¬
:
are
justify a crisis,.one might easily
develop for purely psychological
second
investment
Cotton Exchange
Building, Gal¬
or
in
1949. veston, and John W. Brandenber¬
A* devaluation
would ' inevitably ger and Douglas E. Johnston with
;
aggravate the pressure for higher headquarters in the Bank of the
Southwest Building, Houston.
wages, because of its effect on the
widespread-that there is a-real
so,
risk
the
Yet ;
suppose
a
wages
is liable
develop after their return.;
Fears
to
cause
case
heavy
far from happy
are
-
Ideological dogmatism should give
way to considerations arising from
practical necessity.- ;
the
month.
difficulties
their
with
situation
about,
main
adminis¬
for
lately
stances
business¬
-
been
vide no
-economic
Govern-
gravating its position for the sake
ernment's mind is working in that
direction.
In
existing
circum¬
which is suffering from
acute
depression and labor
troubles, there are no immediate
clouds
in
reason
dustry
storm
crisis
critical
in¬
go
trouble
possibility of a
From this point of
view on the basis of the experi¬
ence of 1931 and 1949, September
nas
come,
to
be (regarded
as
a
from
motor
a
has
tails:'-
d
e
n c
Apart
the
firmly wedded to its pol-"
direction.
devaluation.
Exchange
displays no
•ma
of
there
the Stock
primary division of the business of fire and casualtyinsurance companies is, of course, the underwriting portion. It is
underwriting for which the company is set up; not investing. The
of" full
to
//
Possibilities
practice
Stocks
Insurance
—
The
employment and the
trend
of
wages
is decidedly a
one-way traffic. For this reason
the Government could ill afford
the
be
This Week
demands
In connection with the anticipa¬
tion
have
t
would
7./'
Devaluation
V
j
prices j.
rates
Einzig
which
smaller evil.
less
or
settled
Paul
icy
become
stable;
Dr.
mind
In*
merit is
Government will have to make up
V equi¬
librium; the
gold reserve
uneasy
By ARTHUR B. WALLACE-
British goods should be¬
competitive in the common
market.
flationary increase of wages. Be¬
tween
now
and
September the
reached
wages
theory British labor
by unemploy¬
forced
wages cuts
come
;///
the
that
so.
tending to stiffen the attitude of
employers there would be an in¬
economic movements. Sterling ap¬
In
be
without
British
ment to reduce its
wages
even to consent to
would be the risk of major strikes.
Should
it
relax, the
measures
British
pears
/// /
of
and
adoption of "common market" scheme for
.-J".
however,
would
labor's situation. Terms current
policy liberalizing international
trade restrictions risky at this time. Notes
growing pressure
to.
Bank and Insurance Stocks
countries.; They
reckon,
rigidity
.
15
(391)
Bell
(L. A.
Teletype—NY
Gibbs, Manager
Trading Dept.)
Storks
Specialists in Bank
i
The Commercial and Financial Chronicle
1
16
(392)
rather than
ploration
THE MARKET... AND YOU
been
where
V".
to
came
past cutback in
during
the
laid
the
strike
which
ments
steel
orders, they; change's Signal Oil & Gas A
stock. The company has large
makers eating into their crude reserves, large offshore
new
where sufficient private capital is not
investors.
R.
Black, President of
Bank, has announced
World
the
Corporation and the
pointment by
ap¬
'
:v\
"
Libbey-Owens-Ford, Ray-
Warner and Bendix
some
statisticians to figure it
a
score of points
Borg- could sell
Aviation
higher and still be reasonably
can
also
benefit
markedly priced. / » •
market generally had all the
since they have been able to
characteristics of the typical
An Interesting Chemical
summer
doldrums with vol¬ keep their profit reports re¬
Chemicals
were
certainly
spectable only because they
ume
occasionally falling be¬
not
The
apathy toward the
low the two million mark and
fair
far
plus and minus signs
for a day's
International
balance
which
work.
Strength in ATT
One of the few
able
was
in
that
issues
sustained
show
to
was
the normally
slow-moving American Tele¬
phone which usually is noted
for restrained
price action.
With the help of a new rights
offering to holders due this
strength
the
under
fa¬
sessions.
recent
One, however, which has been
sel.lin§ at^ below-aver age
price-earnings ratios has been
Olin Mathieson which, large¬
omy which cut into its farm
ly for this reason, was fea¬
equipment production, has
tured a bit in the market re¬
cloud of
Show of
Harvester,
been
has
market
pronounced
diversified.
more
vorites
with the
in
are
been
tion
troubled farm
a
econ¬
able to show better
it
since
became
the candidates for
one
ac¬
of
impor-
an
tant role in the
had
stock has
The
a
quiet market life recently but
has been hovering closer to
its
highway conpeak than its low. Part of
struction program. It is still
the reason for its quiet'mar¬
classed rather widely as one
of
the
behind
-
the
market
-
life
ket
is
fact
the
that
of Administration and Director of
Robert
L.
Information
be
been
to
Corpora¬
e
is
IFC
small
estab¬
lished-
as
of
the
highly favor¬
two years now
price tag of $100 a share
Drug shares Stood out oc¬
apparently found widespread casionally with Pfizer able to pected to reach
approval. In the open market join the new highs lists on lion level this
would
the stock hasn't sold at that its newer
give it
drug products. Pre¬
and
able
price since the depths of the dictions are general that the
depression in 1935. It also company will show a good in¬
maintains some sort of chain crease in
earnings this year
since Telephone between 1901 over last
year, helped along
and 1930 made a dozen such
by a shift in emphasis some¬
what from the highly com¬
rights offerings, all at $100.
*
*
The ratio of
for each 10
chemical
the
the $600 milwhich
chance to
year
a
3
niche
diversified
of
one
of
the
outfits, its interests
new
share
presently held is
not the most munificent offer¬
of vitamins.
turn in this
as
Probably
up-
general
dramatic
i
no
as
group was
the doubled
cal interests which provide
ataost three-quarters of sales,
The
improvement
steady
in
Rexall Drug re- profit that has been shown inof the pre-depression offer¬ ported, last year over' what recent years continued so far
— .
ings ran that slim. The others they had been running for the this year.
ranged from a l-for-3 basis previous several years. More¬
Paper stocks, too, have
more
to l-for-6 which was the ratio over,
improvement is
ing
record since only one
on
e a r n
n
*>
Black made his
announcement in
his
Chairman
of the
the
Corpo¬
capacity
as
of Directors
Board
of
ration.
President
of
ViceBank
been
World
the
1947, and has resigned from
since
that position to assume
in
the
last
1930. The
such
offering in being forecast for this
post-War II financ¬
The company
has been
year.
pursu-
ing a broad policy to better itself, ranging from sale of unindi¬ profitable proper tie.s and
more
promising investments
mar¬
ing has been largely through
convertible
the
new
cated
a
debentures
until
announcement
shift.
The open
been
something of
taking
a
breather after their popular% earlier this year with some
of the specialty outfits, like
Kimberly-Clark, getting a bit
mild attention occasionally,
elsewhere down to
a
policy of Kimberly's chief forte is speprice of the stock hasn't
below $150 in the last repurchasing its own shares, cialty papers, including book
half dozen years, which un¬ Moreover, it has been steppaper 0f which it accounts for
doubtedly contributed to the ping up its work in the ethical
10% of total production. Its
interest in the plan.
drug business with some of
ether lines include insulation,
the newer and more
promisThe Lolling Motors
ing drugs among its promising acoustical materials and
ket
been
There
to
was
heighten
auto
shares
little in the
interest
which
news
in
*
the
seem
to
household
products.
Oils
*
continue
*
to
have discounted the
makes it
do
industry with considerable interest
adequately and have
been lolling around their lows centering on likely candidates
for absorption
by some of the
waiting on the upturn in the
business. Some mild interest, larger units as an inexpensive
~
however, centered
on some
of way
ot
adding
to
something of
well, diversified
slump
products which
reserves
paper
a more
company
than most in the field.
| The
article
views
do
expressed
not
in
necessarily at
this
any
coincide with those of the
"Chronicle."
as
They
are
presented
those of the author only.]
now
are
;
Investment Purposes
The Corporation will invest in
productive private undertakings,
in
association,, with private in¬
vestors, in cases where sufficient
private capital is not available on
reasonable terms. In geqeral, IFC
will aim to stimulate, ancFto help
to
the Presi¬
into
the
of
rector
Foods
General
Corpo¬
with the
been associated
that had
Guaranty Trust Company of New
serving
York,
President
and
Vice-
finally
as
Treasurer.
Garner has
Both
have
Sommers
the
hold
to
and
their
while
Bank
Mr.
positions
serving
with
IFC.
Garner
Mr.
appointed
was
at
first
meeting of the Board
of Directors on July 24. The Board
also adopted a number of resolu¬
tions to enable IFC to begin op¬
erations.
Among
them
was
a
resolution calling on IFC's present
member governments to make
full
of the
Corporation's capital stock.
The
pavm<ent is to be made in gold or
for
payment
their
States
United
shares
within
dollars
by
without govern¬
The Corpora¬
is
itself
not
authorized
to
in
capital stock but, apart
from this one restriction, it can
make its investments in any form
it considers appropriate. It may,
for
instance, buy securities which
give it the right to participate in
the profits of an enterprise and
when sold, can be con¬
by
the
purchasers
into
capital stock.
IFC will
usually
make all or part of each invest¬
ment
on
a
basis
approximating
venture capital. It will not, how¬
ever,
assume
responsibility for
managing enterprises in which it
verted
invests.
in
To Invest
days, or by Aug. 23, 1956.
30
The
corporation has authority to
in any kind of productive
invest
private enterprise, including agri¬
cultural, financial and commercial
undertakings; but its main em¬
phasis is likely to be on industry.
The Corporation will invest in an
enterprise only if it is satisfied
that
the
private interests con¬
cerned are contributing their full
share of the funds required, and
that the remaining requirements
met from
cannot be
on
other
sources
reasonable terms. IFC's invest¬
will
ments
the
take
supplement,
not
and
place of, private capital.
Corporation
The
;
-
Private
Productive
Enterprise
with the Bank since 1946, and will
continue
private
made
guarantee.
associated
been
be
which,
appointed J. G.
Demuth
Mr.
will
Corporation
mental
tion
ration and for many years before
productive
Investments
invest
coming to the Bank, he was
Vice-President and Di¬
will
which
enterprises.
dency of IFC. For four years be¬
Mr.
conditions
create
stimulate, the flow of both domes¬
tic and international private in¬
fore
the
arrangements
vestment
has
Garner
Mr.
g s
^
and
different nationalities.
of en¬
couraging the
growth
of
p r o d u ctive
Robert L. Garner
private enter¬
prise,
particularly
in
the
less
developed areas of the world. Mr.
in
have
Bank
World
Bank with the
in the
industry. It is
more
chemical
ex-
ranging from rocket motors to
firearms,' paper and alumi¬
petitive antibiotic field to that num, in addition to its chemi-
*
one
claim the No.
are
the
ment of
purpose
sel.
of
being completed for the employ¬
staff members of several
an
affiliate
Secretary, Director
appointed to the same posi¬
tions
in IFC. The Corporation's
operating staff will be relatively
President of
t h
the
above the half billion line for
Drugs Stand Out
Bank.
personnel of the
Garner
th®
although
i
to
expects
of the experi¬
use
The Treasurer,
large expansion gulps of re- Beevor to be Vice-President of
was able to put items at the
quality end of the
IFC, Richard H. Demuth to be
couple of good gains to¬ list and was able ,to report cfn}.
Assistant
to the
President, and
betot " »
Davidson Sommers to be General
gether after the initial shock good gains in sales and a fair statlc dividend class
Counsel. Mr. Demuth is Director
of the news. The
fac^ that the boost in profits so far this net income has more than of the Bank's Technical Assistance
doubled in less than half a
company proposes ,fto
make year.
and Liaison Staff, and Mr. Som¬
dozen years. Sales have been
nearly six million shares
mers is the Bank's General Coun¬
available at the
and
ence
fall, the stock
a
Corporation
of
Financial
ports.
The
make extensive
Directors
tion.
bestos -Manhattan,
s|e
#
if.
Corporation.
its Board of
now
like
'
12 Directors of
present there are
the
the formation of the International
Finance
,
life in the rails.
will sell its invest¬
Garner, Beevor, Demuth, and Sommers
appointed key officials.
have also had to suffer from
the side¬
Others
lines rather crowed despite inventories.
not
so acreage and natural gas in
an occasional, belated show of
dominant in the single line,
profusion, all enough to spur
kept
cases
reasonable terms. Corporation
on
to
Eugene
the
to
Corp. Beginning Operations
capital subscriptions, will invest in productive private
available
with
only to discover
Thursday, July 26, 1856
.
starting with 31 member countries and $78
undertakings in
agreement
an
the auto parts
makers, the Sinclair Oil
long theory being that their work ^hat the market had already
area on the new models will be the discounted the price that
for the average, no less than first upturn in the auto line- wouid result from the deal,
a
dozen sessions being spent up. Some of them, like Dana Qne jssue able to do well, intoying with this resistance Corp., Eaton Mfg. and Kelsey- eluding a new high for the
level without any signs of Hayes
Wheel, will be the year, in anticipation of a deal
forging through the band de¬ prime beneficiaries from new with one of the larger comcisively. A measure of the orders since, in addition to the panies was J the junior exwas
million
Production which finally
Industrial stocks have been
stalemate
New institution,
somewhat
were
engrossed for a rather
spell with the 510-515
week
fnt'l Finance
have
situations
some
benefits
the
ern
.■
through high ex¬
costs« ; There
exaggerated, including South-
STREETE
By WALLACE
t
T
.
.
will seek to
by selling its in¬
private
investors
revolve its funds
Original Membership
Met
Requirements
to
vestments
*
it
whenever
can appropriately do
beginning its so on satisfactory terms. It will be
authorized : to
raise
additional
operations with 31 member coun-<
tries
and
capital
subscriptions funds by selling its own obliga¬
amounting to
$78,366,000.- IFC's tions in the market, but it is not
Articles
of Agreement
stipulate likely to do so in the early years
of its operations.
/
that
the
new
institution
would
The Corporation is
into
come
least
at
30
least
when
existence
countries
had
million
$75
at
subscribed
of
With Goldman, Sachs
the
(Special to The Financial Chronicle)
authorized capital of $100 million.
These
requirements
were
met
when
France
action
final
July
Germany took
membership on
Additional
20.
which
and
for
fulfilled
countries
membership re¬
MINNEAPOLIS, Minn.
liam
staff of Goldman,
New
quirements between June 15 and
.July 24 were Colombia, Denmark,
Finland
and
the
Japan.
Other
of
of
them
tention
Bank
have
to
do
eligible
indicated
so.
ration by the same Directors who
them
in
the
the
Sachs & Co., of
York.
MINNEAPOLIS,
P.
Forbv
ritt &
is
now
Minn.—Daniel
with King Mer¬
Co., Inc.
in¬
Membership in the Corporation
is open
to countries which are
members of the World Bank; and
members are represented on the
Board of Directors of the Corpo¬
represent
Wil¬
(Special to The Financial Chronicle)
to
their
—
joined
Joins.King Merritt
mem¬
be
original
members of IFC
have
until
Dec. 31,
1956 to complete
action for membership, and most
bers
has
Brown
H.
Bank. At
With State Bond & Mtg.
(Special to The Financial Chronicle)
NEW
J.
ULM,
Minn.
—
William
Schueller, Jr. has become con¬
nected
gage
Street.
with
Co.,
State
28
Bond
North
&
Mort¬
Minnesota
Volume 184
Number 5554
.
The Commercial and Financial Chronicle
.
.
*
(393)
ington held.
There are 120,000
of
Franklin
Washington
outstanding which would be exchanged for 45,000 new shares of
able the bank to boost its loan
limit from $120,000 to $150,000."
shares
News About Banks
National
NEW
BRANCHES
NEW
OFFICERS, ETC.
Bankers
and
REVISED
Newark.
The
Arthur
merger
on
of both banks."
ers
and
Following the recent merger of
located in the Borough of Queens
The election of
Felix
and
Floyd E. McKee
Mulgrew as Vice-
A.
Presidents
Company
New
York
was
First
ic
Fifth
fhpi
of
of
office.
Bankers
Mr.
Trust
McKee
in
He
time
which
was
The
in
Treasurers
of
Mulgrew, joined the
in
1955, after experience in
and
public utility
fields.
legal
Simultaneously,
Assistant
Vice-President
Banking
increase
Northern
the
of
capital
York
New
Watertown,
of
Trust
N.
Y.
$862,500, in 34,500 shares,
$25 per share, to $962,500, con¬
sisting of 38,500 shares of the same
par value.
for
George S. Stephenson, Fifth
Avenue Office;
Charles Rf: Beddows, Jr., Wall Street Office; and
Theodore R. Hilb, Madison Ave¬
Office.
nue
Arthur. Johnson
Ledlie C. Pitt
Assistant
At
the 99th Annual Meeting of
Corporators of the Connecticut
Savings
Bank,
of
New
Haven,
the
and
Conn,
promoted from
were
Secretaries
C.
Officer;
James
Kahler,
Earl
S.
tries.
Assistant
Rogers,
Secre-
elected.
Isleib.
Corpora¬
new
a
and
was
Officer
one
The former Corpora¬
Trustee, is Horace F.
a
Isleib
Mr.
Officer
is
Investment
Associate
and
Treasurer of the Sheffield Scien-
tific
School,
Richard
Orange,
of
The
etc.
elected is
tor
CorporaH.
Conn.
Bower-
He
is
a
member of the law firm of Gum*
*
*
bart,
The appointment of Edward
as
W.
Assistant Vice-Pres¬
an
ident of Manufacturers Trust Com¬
York
pany of New
was
announced
Corbin
and
Director of the New Haven
a
Tyler
and
Cooper,
Bank, N.B.A., and of the Equip¬
ment Sales Co., Inc. and is a mem¬
ber of the American Bar Associa-
July 23 by Horace C. Flanigan,
President.:
Mr.
Cardiff
joined
tion, etc.
Manufacturers
Hall, who
on
Trust
in
1936
and
has
always been at the bank's
University Place Office (32 Uni¬
versity Place at 9th Street). He
was appointed Assistant Manager
in
1938 and Assistant Secretary
in
1944
has
and
Officer-in-
been
Charge since 1952.
Thomas
McGarry
Vice-President in the
a
International
Department
Chase
Manhattan
York,
J.
dent,
of
July
New
Presi¬
Baker,
on
The
24.
International
the
staff
partment
of
of
Bank
Stewart
announced
member
,
been
has
for
will be in charge of
A
De¬
36 years, he
personnel and
operations.
At
time
Joseph J.
Ballo, Anthony G. Froehlich and
Herbert
in
the
and
same
P.
pointed
Patterson
were
ap¬
Assistant Vice-Presidents
International
Howard
R.
Department
Condon,
Leo
F.
T
TWi«'
elected
was
an
Assistant
Secretary.
Mr. Hall, also a resi¬
Orange, is a native of
Newark, N. J. His duties with the
dent
of
bank
as
in
started
February,
teller and at the time
a
appointment
to
the
1935,
of his
managership
of the Whalley Avenue Branch of
the
Connecticut
Savings
Bank
is
it
he
opened,
held
the
title of Assistant Chief Teller.
G.
Carl
Freese
re-elected
was
President and
the
Treasurer, as were
following Vice-Presidents: Al¬
lan R.
Carmichael, Harry H. Owen
E.
Rauch;
Robert
Charles
and
A. Babcock continues
as
as
does Thomas E. Curl
troller
and
Felix
F.
de
Secretary
as
Comp¬
Foschi
as
Auditor.
the
if
f
nrnmntpH
to Assistant Treasurers. Raymond
V. Brady was appointed an As¬
sistant Treasurer in the Insurance
*
Announcement
Carl G. Freese, President, re¬
ported that the total assets of over
$122,000,000 were at an all-time
high, representing
over
$121/2 million
an
increase of
fiscal
for the
June 30, 1956. Deposits
alS0 at 311 all-time high Of
year ended
3re
$108,500,000, an increase of almost
q»i9
million
$12 million foj* the same fiscal
year.
Plans
*
was
July
23
that
control
Springfield
Gardens
Bank of New York
Gardens,
Long
passed to
a group
Melnick,
a
of
Island,
Co
New
of
The
National
N.
Y.
has
headed by J. A.
millwork
York.
Melnick Is President
Melnick
of
on
at Springfield
lumber and
wholesaler
for
made
of
Bush
Mr.
distributors.
Terminal
He
"
ac¬
board at the bank to add to its
present
directors.
William
B.
Jones, President of the bank, ex¬
pects that with this addition to its
'. official family, the bank will em¬
bark on an expanded program, to
-
be
i.
-
of
even
been
proposed
made
merger
known
of
the
Franklin Washington Trust Co. of
J. with
Newark, N.
Newark
Essex
&
Newark.
the National
Banking
Meetings of
holders
of
be held
greater banking
made known
was
which
to
of
on
quote-
we
from the Newark
296)
that Mr.
as
State;
ior
the
Review
serv-
Officer,
State's
named
was
a
/1 *.
*
Following
:iT;•
*
meeting
a
Co. of
17,
the
National
Bank
of
name
of
the
McKees-
reported
was
the
time, in conjunc¬
same
a
merger of the two in¬
of
Braddock
becomes
the
Bank
Pennsylvania
"The
announcement
National
Bank.
McKeesport
;
Newark, N.J.
&
has
Southern
10
Augusta,
offices
The
National
in
Savannah,
Atlanta,
Macon,
Athens and Valdosta with a service
office in New York
City, 13 af¬
filiate banks and offices are in
Dublin, Thomaston, Albany, LaGrange, Newnan, East Point,
Emory, Avondale Estates and At¬
lanta. Deposits for all C&S Banks
in Georgia totaled $484 million on
June
30
million
as
a
compared
The
with
$461
earlier.
year
*
*
Citizens
*
&
Southern
Bank
of
Albany, Ga. has opened a new
banking facility at the U. S. Ma¬
Supply Center.
The new
facility is the C&S system's 23rd
office in Georgia. Olin F.
Fulmer,
Jr., President of the C&S Bank
of
Albany,
serve
of
which M. A. Cancelliere is Presi¬
dent, decided
change of
a
civilian
name,
in the midst of its 85th
year, was
desirable in view of a consider¬
the
office
and
will
which
1,800
Gen.
has
military
personnel.
Brig.
Ion
M.
Bethel, Commanding General, cut
the ribbon at
opening ceremonies.
J.
Frank
As
of
Irvin
will
the
manage
facility.
new
result of the sale of
a
the
stock
new
tional
bank,
said
installation
an
2,200
11th
community office of the Western
the
of
merSed as branches.
Citizens
stitutions, the First National Bank
Board of Directors of the Fidelity
Union Trust
change in
tion with
As¬
,■/.f ■
Jersey City branches in
"At the
17th
an
Manager of
Pittsburgh "Post Gazette"
of July 16, from which we also
quote the following:
sistant Cashier by National State."
Bank
of
$50,000
American
Na¬
Jacksonville, Fla.
has a capital of
now
(July 5)
$400,000, compared
with
$350,000
previously.
•
■"
As of July 5 the Citizens Na¬
was
able expansion since 1953 which
tional Bank of Orlando, Fla. re¬
Corbin, Board has
given it banking activities of
Chairman,
and
Roy
F.
Duke,
ported a capital of $750,000, in¬
regional scope.
creased from $600,000 following
President, that an increase in the
"The resources, $40,000,000 three
the sale of $150,000 of new stock.
regular quarterly cash dividend of
years ago, have grown to $105,the company from 60 cents to 75
*
*
*
000,000.
:
; ^.
cents
had been voted,
effective
"The Western Pennsylvania
Aug. 1 for shareholders of record
inrml
<$250,000 has s^ved to enlarge
tional Rank- hac nffWc in throo
Bank has offices
three
July 23. Reporting this in its July
the capital of the Fidelity National
counties
18
Allegheny, Westmore¬ Bank of Baton
issue, the Newark "Evening
Rouge, la. from
In addition
News" of July 18 also stated in land and Washington.
The in¬
to the principal office in McKees¬ $1,000,000 to $1,250,000.
part:
/IT; I;;I
creased capital became
effective
port, office locations are Belle
"Mr. Corbin and Mr. Duke
made by Horace K.
Na-S
also
said that the board is proposing to
5% stock dividend. A spe¬
cial meeting of stockholders is to
pay
a
called Aug. 20 to vote on the
proposal, which would mean issu¬
ance of 25,000
shares of stock in
addition to the 500,000 shares now
outstanding. Fidelity Union stock,
now
quoted
in the market at
be
around 68 bid and 70
both
the
sex Banking Co
Trust.
350,000
'The
a
This meant $1,in cash dividends
years.
year
for shareholders.
"The
75
or
cents
means
$1,500,000
holders.
a
This
$3
a
year
annual rate
to the share¬
dividend
payable for the
July 31.
will
quarter
be
which
ends
25,000 new shares, if ap¬
proved
by
the stockholders as
expected, will increase the bank's
capitalization from $5,000,000 to
$5,250,000.
Money
representing
payment for the new shares would
come from
the bank s undivided
which
will
plans to purchase
July 21, in noting this,
provides for
the property 'before
Aug. 1, 1961, and its lease until
title is conveyed. The agreement
also provides for Franklin Capital Corp. to service a portion of
the bank's mortgage business.
of
were
*
$6,218,241
as
*
*
issuance
The
of
addi-
5,000
shares of capital stock was
tional
recently authorized by the stockholders of the Union Center Na-
^
^ N
^
o£fered t0 share"
holders
rate
agreement
ton and
An
X
*
capital
the
of
tional
of
Bank
*
V.
,v;v
v
County
York,
Na¬
has
Pa.
*
*
.
The
following
announcement
made on July 12 by the Texas
Bank & Trust
Company of Dallas,
Tex.:
$400,000 in the
York
of
■
■
,
*
was
Oak."
*
increase
The
Board
of
Directors
and
Shareholders of the Texas Bank &
brought the bank's capital up to
$1,000,000, compared with $600,000
previously. The addition resulted
Trust
from
Texas, the following increase in
a
stock dividend of
$400,000.
the
Northside
Pittsburgh,
Deposit
Pa.
died
Bank
of
July 9.
According to the Pittsburgh "Post
Gazette" of July 10,
Mr. Geltz,
who at his death was 60 years of
started in the banking busi¬
43 years ago as a clerk for
ness
the
on
Real
Co. and
tion
Estate
Savings & Trust
helped with the organiza¬
of
the
Northside
Bank, 22
Deposit
becoming its
years ago,
President in 1950.
Company
of
Dallas
have
authorized, subject to the approval
of
the
Banking
Commissioner of
the capital structure of the
Capital
Rayrnlond G. Geltz, President of
stock
to
bank:
increased
be
from $1,750,000 (87,500 shares par
value of $20 each) to $3,000,000
(300,000 shares par value of $10
each). This would be effected by:
1.
Reducing par value from $20
$10 and issuing one new share
to
for
each
2.
share outstanding.
of a
stock
old
The
declaration
dividend
of
shares
17,500
(one
share for each 10 shares then out¬
standing).
3.
,
Offering
at
of
$55
owned
noon
of
June
record
share
one
new
per
share
with
for
rights
29
at the
(par $25)
each
four
expiring
at
Aug. 13. The Newark "Eve5
TeTs"TeDortin*iVhiI"further
reporting uns, iuruier
nms News
said:
"Capital
record
Mills B. Lane, Jr., President of
The Citizens & Southern National
Bank, of Atlanta, Ga. reported at
the bank's board meeting in Savannah
stockholders
to
of
transfer to
on
July 10 that the high
gia
of the bank
12,
1956,
neighboring states, coupled with the bank's own increased
capacity, had boosted bank earnings and deposits to record highs
for any six-month period. Earn¬
ings after taxes were $1,094,122
for the first six months of 1956
compared
as
with
$506,197 for the
corresponding months of 1955. De¬
posits were up $16 million over
a
year ago and totaled $401,142,829 on June 30. In the past five
weeks, savings on deposit have in-
right
the
scribe
to
107,500
shares
in
the
ratio
to
$10
new
of
43
sub¬
par
new
shares for each 77 $10 par shares
•
a
$•
.on
at the price of $20 per
and
share.
The total
retained
sum
received is to foe
by the bank in its
ital and surplus equally.
scription right will expire
23.
cap-
This sub¬
on
July
.
♦
The
directors
*
*
of
Westminster
Bank Ltd., London, E. C. have de¬
clared interim dividends of
creased $2.3 million to a total of for the half-year ended June 30,
$64 million Mr. Lane said
Mean-
while, the bank's ratio of capital
;he bank's ratio of capital
accounts to deposits climbed duraccounts
«»- the past five
ing
structure
July
of the close of business
as
ievel of business activity in Geor-
to
8.28%.
raised
for each share of Franklin Wash-
White
■'
>'
'
.
25.
"The
of June 30."
institutions
June
Vernon, Braddock, California,
Dravosburg, Finleyville, Monongahela,Roscoe, Sharpsburg, Smith-
age,
cash dividend rate of
new
share¬
added:
purchase
those
profits,
MMVl3K$£
The^ Newark^"Evening
News" of
a
value of $10.
"Fidelity Union has been pay¬
ing a 60-cent quarterly cash divi¬
dend for several years. Last year,
and also in 1954, a 30-cent extra
cash dividend was voted, putting
the stock on a $2.70 annual basis
Co. of
Aug. 22 to act on the
merger.
At the same
proposed
asked, has
par
than in the
has four offices
— Springfield
Gardens
St. Albans, Laurelton and St. A1
Hospital, and has been
National
Assistant
Also, two affiliated
banks in Atlanta with four offices
and a fifth under construction are
rine
bank
bans Naval
in
Essex County.
"Samuel Albanese, who was Assisetant
Cashier
and
Assistant
July
Jersey of-
assistant book
vania National Bank
be in charge
Millburn bank
The
become
on
as
port, Pa., to the Western Pennsyl¬
office in
ice to the community
past.
The
in Queens
Vice-
will
and
two
First
was
given the title of Assistant ViceManager.
named
A
Officer.
ier of the Millburn bank, is being
Trust
National
moved to
1925.
President, Trust Officer and Cash¬
has
Trust Co. of New
was
F. Smith, former
President,
has
been
President
Chase
in 1918.
He
established
and headed its credit
department
in Jersey City four years later and
Vice-President and Sen¬
Loan
the
in New York and
fice in Hoboken
M.
"George W. Pultz, who
as
with
The
"Evening News"
Robert
a
native of Ho-
a
keeper
Millburn
named
Mueller,
N,.J., started his banking
Bank
director of the National
a
of
career
July 19,
follows
Ellend, who was
Vice-President, director and counsel of the Millburn bank, has been
elected
President
Jersey Banking Associa¬
Jersey City staff cor¬
boke".
July 19:
on
-
is
tively associating himself with the
bank and it is planned that he,
and his associates, will go on the
^
have
the
The j"a time the National Newark & Es-
BrtTlyn Cwho°lesale lumbe™ an/i
millwork
State
as
A
respondent of the Newark "Eve¬
ning News" of July 13 reports
(referred
page
the Millburn Bank to the National
for
Department.
*
tion.
as
shareholders.
Chairman
also
was
served
being added
are
in Augusta and
Macon, Mr. Lane
said
in his
mid-year report to
—
The Officer elected is Harold M.
when
J.
appointed
:
July 19 issue,
Treasurer
of Yale University, a Trustee and
man,
j:
Cardiff
was
tor, now
promotions were John B.
Assistant Treasurer; Al¬
Gearhart, Assistant Trust
and William J. Lutz, Jr.,
E.
Gaskin,
William
J.
James W. McElroy and
Nelson,
elected
tor
partment.
fred
Trustee,
a
was
Vice-Presidents in the Trust De¬
Other
former Corporator
one
elected
Assistant
to
Newark, N. J.
Mueller, First Vice-
Jersey City Planning Board
had
the New
Mill-
of
par
announced
were
State
from
Assistant
to
of
Company
promotions from
Treasurer
enlarged
was
stock dividend
a
York
New
in
Mr.
Co.
Department approved on July 11 a
certificate
1953.
it
of
our
in
"Herbert
1950, and Assistant Vice-President
bank
Trust
&
Bank
;
to
came
1934.
Assistant
named
"
•
,
capital of the
Bank
from $220,500 by
of $11,000.
Mulgrew, is
in the Banking Department of the
main
••
National
burn, N. J. and the National State
Bank
to
.
Ossining, N. Y. became $231,500,
at
Avenue office and Mr.
National
:
***
•
As of June 28 the
an¬
nounced on July 23 by S. Sloan
Colt, Chairman of the Board. Mr.
MPICPP
'I
;
*
*
*
Trust
Bankers
of
of
for 28 years.
First
M.
July 12. He
of the
CAPITALIZATIONS
the
*
President of the Trust Co. of New
Jersey, at Jersey City, N. J. died
will take place about Sept. 1, pro¬
vided it is approved by sharehold¬
CONSOLIDATIONS
*
.
Branch offices
17
surplus. This will en- east.
years
This
from 5.96%
year
million
:
the
new
bank
on
the "A" stock, and of 2s. od. per
thp
*
"
on the .<B" shares for the
sha_a
share
on
.
,
,.
iAtxnAo
same period. The dividends (less
benod.
income tax) will be payable on
capitalAug;
1 to stockholders and
share-
16
The Commercial and Financial Chronicle
(394)
Continued from page
The
and the government of
recipient country. Shipments
under this program in 1955, dur¬
ing 'which it actually got under
way,, were
$266
million.
The
amount is small as compared with
ernment
3
the
Financing of United Stales
Foreign Trade
United
total
States exports,
but,
with a similar program
administered by the International
significant volume of dollar
capital. Nevertheless, I consider
them to be a promising vehicle
for
private
foreign
investment,
especially in view of certain tax
advantages created by the Reve¬
very
fact
ministration. The purposes of the
Bank are to. assist creditworthy,
friendly foreign countries to develop their economies and to assist American exporters to sell on
credit terms to such countries. In
either case, the considerations are
primarily economic, but political
considerations are also quite natsupplies. Goods in the urally brought to bear on the oppipeline at the time of era lions of tne Bank.
6%. • ,
Economic
aid
by the United
states to foreign countries dates
actually from tne lead-lease program of the war period, for lendlease was designed to buttress and
improve the economies of the recipient countries as well as to
provide them with military equipand
ment
lend-lease
I shall discuss
the termination of the program in
1945, were taken up by
long-term credits, and
August,
of
means
these lend-lease credits
lowed
loans
Bank
the
fol-
were
by
large
reconstruction
through the Export-Import
and
subsequently
World
UNRRA
through
through
Relief
Bank.
interim
and
aid
Eu-
to
the
tween
the relations be-
Bank
Export-Import
and American commercial banks
at
another place and
also the
banking techniques involved in
these relations. The Bank's loans
during the last decade reached the
impressive total of $4.5 billion,
The importance of these loans to
countries were followed by American exporters,
to foreign
grants and loans under the Mar- countries, and to the reconstrucshall Plan beginning in 1948. The tion and development of the world
Marshall Plan was conceived as economy since the last
waij^ are
ropean
and aid to -generally
acknowledged.
They
Europe under it and succeeding have not played, however, a very
programs did taper off in fact as significant
statistical role in fiWestern Europe restored producnancing United States exports extion, trade and monetary reserves. cept during the period of heavy
reconstruction loans immediately
four-year
a
program,
Change Focus to Our Foreign Aid
Economic
tries from
tinues,
scale
and
aid
aid
to
although
with
and
on
con¬
reduced
a
bulk
focus
of
the
on
to countries
now
coun¬
States
different
a
The
emphasis.
goes
foreign
the United
the
periphery of the Soviet sphere in
the
Middle
East .and
Asia.
The
States
less
3%
than
The
exports.
have
market
time.
enjoyed
the
was
sellers'
of
a
extended
over
This
periods
situation dur¬
ing the decade of the last war and
early postwar reconstruction,
when
American
or
from
exporters
industrialized
Thus,
States
in
other
?'/ >.
countries.
have
in
the
generation
of
we
a
faced
exporters
competition in wbrld
no
markets
:
j
United
export
managers and company treasurers
who have not been obliged usually
to extend credit to foreign pur¬
formation
such
investment
also
through the
is
often
also
lack
a
of credit
foreign
on
in¬
of the
names
economic grants generation of local income in the detailed kind to which credit
are an outright gift). During the form of wages and taxes, as well
in the United '< States
managers
'
"
•
three years
1953-1955, no
less as in other ways.
have become accustomed in judg¬
than 12% of the dollar requireing
credit
risks.
Furthermore,
Private Financing Sources
ments of the rest of the world
although
there
are,
of
course,
There remain to be mentioned
were provided by these expendimany exceptions, company man¬
services
while
,
tures for
troop
pay,
purchases of
number
a
of
,
.
private
of
sources
local services and supplies, and financing of United States exports.
these
are
commercial
off-shore procurement of military Among
hardware.
Their importance in banks, which extend short-term
the balance of payments as a
whole is thus evident. They have
been a major source of dollars for
individual recipient countries such
as the United Kingdom, Germany,
France, Italy and Spain in Europe
accommodation
and
others.
able
the
on
particular
to
foreign
Information
amount
forms
banks
is
avail¬
involved
of
this
in
financ¬
ing, such as acceptance financing,
and
the
on
involved
amount
for
of States for military
pro-
national business and by exporters
themselves, is known only very
approximately.
Estimates of
short-term
the
capital
balance
of
in
movements
payments indicate
in the - United States " are
agers
typically
preoccupied
with -the
huge domestic market and regard
the export market as marginal or
as involving too much trouble and
risk to develop, especially if credit
terms
entailed. It is
are
common
a
complaint among export managers
that their companies pay too little
attention
to
exports and »make
impossible, if credit
terms come into play, the placing
of export orders, especially when
company
order books are full.
difficult
or
if
Even
discounts the self in¬
one
terest evident in these
there is still
in
a
complaints,
good deal of truth
them.
During the period of
postwar scarcity of manufactured
that the1 net increase in short-term
goods* efforts were made by ex¬
financing-during the whole post-j port groups, with the support of
war
period has-been somewhat the United States
Government, to
emphasis in th^ aid program for ceeded disbursementsdiThere are tension, the United States Gov-'
Europe was recpypry frqm thevde^; signs,..however, that the loans and ernment should be, able to reduce?
struction and dislocations of the disbursements of the Export-Im- its outlays for defense, including
war.
The purpose of the continu- port Bank may be due to increase outlays abroad, there is on record
ing program is partly this, as in over the next period.
a
commitment to devote a subthe case of aid to Korea. Its basic
I
might also mention at -this stantial part of the savings, to ,inmotivation, however, and, a moti-,< juncture the loans? of the Inter- crease economic aid to underdevation which applies also to Ko- national Bank for Reconstruction veloped countries,
rea,
grows
out., of the cold war and Development out of its dollar
New foreign investments by pri-
States also provide some medium-
and is twofold:
these
term
futile for
tries
(1) To assist
with
associated
States
in
to
ances
regional
the
coun-
United
defense
establish
and
alii-
maintain
resources, since these loans serve, Vate United States investors have
too, to finance United States ex- played a relatively minor role in
ports directly or-indirectly, Dis- supplying dollars to the rest of
bursements of dollar loans by the the world during the postwar pe-
in
of
excess
a
billion dollars. This
is obviously not a very important
of export financing in the
source
in
sense
which
we
are
now
con¬
sidering the matter, d-
financing
of
exports,
by
financing for pe¬
riods longer than, say, 12 months.
They do some of this strictly on
which
I
mean
International Bank since it began riod.
In
statistical
terms,
only their own account as individual
operations in 1947 until the end of 5% of foreign dollar requirements banks, but the amounts involved
and other countries to strengthen J955 were $1.4 billion, or a little has
been so provided.
In real are not believed to be very large.
their economies in order
better more than 1%
of United States terms,
new
direct
investment, They also participate gt their own
to defend themselves and in order exports during the same period, which
constitutes
the
bulk
of risk in loans made
by the Exportto improve
the living -standards Two factors are tending to reduce American
private
investment Import Bank and the International
of their peoples under conditions the importance from this point of
abroad, represents a form of self- Bank.
Early examples of such
of freedom.
view
of
the
operations of the financed export, since the amount
participation are found in certain
The motivation of the current World Bank.
One is the increas- of new direct investment repre- of the medium-term reconstruc¬
foreign aid program, like the mo- ing proportion of loans made in sents in large part the value of tion loans
arranged by the Ex¬
tivation of the early postwar aid currencies other than dollars. The
equipment and supplies consigned port-Import Bank after the last
to Europe, is thus
essentially,po- other is the growing amount of to foreign branches and subsidi- war, and there are also current
litical
in
character
and
insep- repayments on dollar loans dis- aries by United States corpora-examples which are referred to
arable from the international po- bursed during the early years of tions. I have
explained elsewhere below. Beginning in 1954, the In¬
litical situation. The present Ad- the Bank's existence. The current
why I
do - not think
that
the ternational
Bank
has
obtained
ministration
has
recently asked significance for United States ex- amount of American private in- the
participation in its loans, at
Congress for legislation based on ports of International Bank loans vestment abroad will increase siginception and without its guar¬
the conviction that the need for in dollars is very small on a net
nificantly in the foreseeable fu- anty, of 'commercial hanks and
foreign aid on a substantial scale,,basis, that is, as measured by dis- ture; of- hence, come to play a
insurance
companies.
The com¬
will persist' indefinitely and that bursements
net
of
repayments, very important role in the balance mercial
banks
have
taken
the
commitments of aid over a pe- Needless to say, this observation of
payments of the United States.1 shorter maturities up to five years,
riod
of
years
should
be
made is .not intended in any sense to
and the insurance companies took
There is opposition to discount the importance of the
possible.
Opportunities for Investment
.
both of these concepts in the Congress;, but,
recent
if
years
the experience of
is any guide, Con-
will in the
gress
end
authorize
a
in
Bank's total
tribution to
world
The
function or its
the growth of
con¬
the
economy,
operations of the
Interna-
Trusts
Despite
on
this
general
my
score
maturities
as
pessimism
regards the short-
continui'ng program rather than
face the alternative of a weaken-
tional Finance Corporation, which
is expected to come into existence
run> 1 am ^pressed by the longrun potential of specialized m-
ing of the line of defense against
Russian
pressures
and,
by
no
means
unimportant, of a decline
of
exports
of agricultural
surpluses and manufactured products,
within the
the World
affiliate of
will
provide
vestment trusts or mutual funds
lor ,rPr.ei^n investment.
Tbpse
for
9°nstl,tute a n(?w channel for the
investment
abroad
°f
Private
Auimcan capital. Canadian funds
£PrP n k
fe Sfaies> of
wmch all but one have been offfed since June 19d4, had purPrase?. a
Pt $175 .ml;Jlon
The
gram
of
size
of
a
continuing
of economic aid is
conjecture.
The
between
$2
a
pro-
matter
amount
has
ranged
billion and
$2.5 billion in the last three years.
At this
level, economic aid in the
form
of
sents
10 to
grants
loans
and
12 5%
ronrp-
of the total dol
lar requirements of the rest of the
world
at
their
current
Export-Import
One
of
the
-
sources
,
States Government
Import
Bank.
.
of
loans
is
«
to
.
the Export-
The orientation
of
the Export-Import Bank is differ-
an
Bank,
additional
financing
United States exports both out of
its
own
small dollar
resources
and
to
ten
below,
mentioned
as
Fi¬
years.
a
number of commercial banks have
contributed
the
to
capital
of
an
Edge Act Corporation which is
designed to provide medium-term
export financing.
So
much
the
for
balance-of-
payments aspects of the financing
of United States foreign trade. I
to the second approach
subject, which is the fi¬
nancing of United States trade in
•
the
sense
of
terms, instruments
New Source of Export Financing
Canadian securities up to the end .and techniques.. Let us consider,
A new source of
financing for of 1955. American investors are first, export financing and, sec¬
exP°rts of agricultural products also believed to have sizable ond, import financing.
by assisting the outflow of dollar
capital on private account.
became available to foreign
coun-
*
holdings in Canadian funds
of
1954.
Among
other things, this Act provided for
the
sale of
surplus agricultural
commodities against payment in
tbe currency of the purchasing
country, with the disposition of
the
local
between
currenev
the
United
tn
hp
aarppd
States Gov-
established
can
Funds
overseas
ganized
very
have
far
only
not so
have
for
been
recently
my
article
>n
inor-
and
mobilizedany
.
1 See
Lloyds
to
now
the
Export
As
were
in fact under Ameri-
sponsorship.
vestment
ones
pass
dis-
°f th\ Ag; tribute1d °?lyJn Canada> of which
HrnhiTraJ1
Act
Bank
,,
as
ricultural Trade Development and several of the older
Assistance
level
foreign countries from the United
.
some
year
nally,
up
intermediate
the
instance
one
Bank
..
Re-
M'dXV- a-
is
And
exporters
Financing
Import
well
have
known,
a
American
prefer¬
strong
for, and indeed often insist
upon, letter-of-credit terms. This
attitude,
which
is - synonymous
ence
with
a
disinclination
on
the
allocations
secure
and
tures
parts
part
of
of
for
manufac¬
export
as
a
of maintaining export mar¬
and
meeting the '.Irequire¬
means
kets
VJ ments of
-
Commercial banks in the United
military forces beyond their own
capacity; and (2) to assist these
t
market.
received in the form of goods and
.
basis
gross
general
little
<
sellers'
a
Moreover, American exporters in
chasers of their products. Besides
lack of credit experience, there
purposes will
presumably continue as long as
portion during the last two cal- there is the present degree of tenendar years (1954 and 1955) was sion in international political reless than 2%. Repayments to the lations,
Moreover, even if, beBank in these years have, ex-r icause
of
a ^lessening
of )this
a
complicated
have
equipment,
specialized
long enjoyed
and loans (although it must be dollars and other foreign exchange
recognized, of course, that mili- to meet their requirements. The
tary expenditures are for value host countries benefit greatly from
the war.
United
ex¬
the steel industry
as
and manufacturers of
.
and Japan and the Philippines in one geographic area, Latin Amer¬
During the whole Asia.'
ica.
The total amount, to which
postwar
period,
Export-Import
Large-scale
disbursements
in should be added the credit ex¬
Bank loans served to finance on foreign
countries by the United tended by factors doing an inter¬
after
American
some.
or
nue
I shall go into the banking tech- United States investors to the eco¬
niques involved in these and re¬ nomic improvement or specifically
to
the
dollar
resources
of
for¬
lated programs at a later point,
Military expenditures by the eign countries. Private investment
results in new or increased pro¬
United States Government-in foreign countries-have been since duction, especially of raw mate¬
1953 a more important source of rials, for export to the "United
dollars for foreign countries than States and other markets and thus
economic aid in the form of grants enables the host countries to earn
that
porters, such
together
some
was
Thursday, July 26, 1956
.
One basic influence at work is the
Act
of
1954. r
Here, again, in order to avoid
being misunderstood, I want to
military expenditures, private in- ent from that of the foreign-aid Cooperation Administration, rep- say that I in no sense want to
vestments,
and
private
remit- agency proper, which is presently resented nevertheless 10% of ag- depreciate the major contribution,
tances.
The extent of the over- the International Cooperation Ad- ricultural exports during the year, of foreign investment by private
supply
.
.
foreign
coun¬
for essential imports.
tries
friendly
Under
circumstances, it was almost
a foreign buyer to seek
credit
American
from
terms
In
ex¬
vy:
porters.
addition, it must be
nized
that
have
been
American
period of 25
recog¬
exporters
confronted
over
a
with a situa¬
shortage in world
markets.
Quite
apart from
the
creditworthiness of foreign buyers
tion
of
years
dollar
themselves, there has been the
problem of restrictions on, and
delays in dollar remittances. This
situation has been so widespread
of
and
such
there is
long
duration
that
presumption of
payments difficulty and a conse¬
quent indisposition to sell abroad
except on cash terms. Indeed, as
will
be
brought
out
below,
American
exporters
are
much
a
common
;
with
concerned
more
problem
than
with
the
transfer
the
problem
of credit, per se.
It
that
be
must
borne
American
in
mind
obliged for the most part to
credit
their
There
is
in
risks
the
also
exporters
are
carry
themselves.
United
States
no
government
facility
for
guar¬
export credits such as
anteeing
exists
in
number
a
countries
in
and
of
European
Canada.
The
Export-Import Bank provides
medium- and long-term financing
without
recourse
on
the exporter,
but it has not offered
guaranties
or
so
far either
financing of short-
term export
risks and, as we have
its role in the medium-: and
long-term field has not been very
large. Individual commercial
banks will provide financing to
the exporter, with rare exceptions,
only on a full recourse basis.; Re¬
seen,
cently,
have
five
commercial
subscribed
$10
banks
million
of
capital to establish an Edge ■ Act
corporation which undertakes to
finance
capital
exports
equipment
term without
of
productive
at
recourse
mediumon
the
ex¬
exporters to compete for-for¬
eign
markets 1 on
the
basis .ot
porter. Apart from these limited
governmbent and private facili¬
credit
ties, the American exporter is
terms, merits examination.
on
Volume
his
5554
Number
184
it
.
in extending
credit to his
exporters of
heavy equipment have made subown
customers.
stantial
sales
so,
extended
on
terms
10 years for their own acrisk.
"
to
up
Even
count and
Agitation for
government ex-
a
port credit guaranty system in the
United
States
since
waned
and
waxed
has
last
the
bill
A
war.
Chronicle
The Commercial and Financial
'
Special Factors Observed
for financing productive capital
equipment.
'
y
The Export-Import Bank has
made loans for economic development and exporter loans for - a
long time. The field of development loans has been divided since
1946 with the International Bank
without, however, any clear-cut
division of function between the
two institutions. The field for exporter loans has been broadened
since 1954. For some time previously,
competition
faced
by
American
exporters
in
world
markets, partly on credit terms,
had become increasingly sharp,
19
(395)
panies in the United States are American importer's bank rather
This is what the available sta- occasional purchases and sales of ihan directly Tor the account of
tistical record seems to show. The exchange. Imports on draft terms the importer,
statistical record, however, ob- represent a wide range of items,
The importer also compares the
scures a number of special factors including many, manufactured ar- cost of a dollar acceptance and
which
influence
the
terms
on
tides, althougn the values of in- the cost of a dollar loan. He must
whicn United States exports are dividual shipments, handled on take into consideration, on the
financed. Some countries, includ- this basis tend to be small/ Open- one side, the usual requirement of
jng currently the Philippines and account terms are also common American banks for compensating
Indonesia, require, for the pur- for imports of finished manufac- proportionate balances in connec-
of more eifectively con- tures, especially consumer items, tion with loans, whereas many
trolling imports and exchange, brought in on own account by banks do not require balances of
that practically all imports be fi- large department stores and other any specified proportions in conCorrumittee in 1946. Another bill
nanced by letter of credit.
In importers of unquestioned credit nection with acceptance financis now before the same body, with
other countries, often because of standing.
ing. On the other side, however,
its chances of approval, even at
tight money conditions and high
The total value of imports into he generally will save interest for
that stage of the legislative process,
rates of interest/ there is strong the United States of Products pro- the full period of prepayment of
problematical at best. The fact is There was growing agitation for resistance
to - letter - of credit duced by/ American controlled loans as compared with the partial i
that
the
attitude of the export government facilities for export terms, with the result that ex- enterprises abroad is estimated at rebate of interest, and no refund
community
on
the • subject
is financing
comparable to those porters who want to stay in the approximately $2.8 billion, or 24% of commission, if acceptances are
providing for such
system was
approved by
the Senate Banking and Currency
considered
mixed
a
but
the
and
not
pressure
for govcorrespondingly
weak. Surveys of exporters' opinions made by
export and trade
action
ernment
associations
that
indicate
con-
a
siderable
majority of exporters
oppose
a
system of government
credit
insurance
or
guaranties,
while at the same time a majority
favors
system of transfer guar-
a
p0se
available to exporters in other
underdeveloped countries/ The
Export-Import Bank initiated
studies of export credit techniques
which would give easier access to
fts facilities by exporters without
opening them to indiscriminate
export financing. After securing
appropriate
legislative instructions, the Bank announced its
willingness to establish lines of
credit for individual exporters to
finance exports of productive
capital . equipment at medium
term.
•
' As of March 31, 1956, the total
of these lines was $175 million, of
which about $8 million had been
used. This small utilization is explained by several factors. The
extent of foreign competition on
extended credit terms had undoubtedly been exaggerated and,
market may have to offer draft
terms. Canada and Cuba constitute special cases as regards credit
terms for United States exports,
The bulk of the trade in each instance is financed on terms other
than letter-of-credit > or draft
basis.
Despite all that I have said
of imports at their current level,
There is a corresponding category
of exports from the United States
representing shipments by parent
companies in the United States to
their branches and affiliates
abroad which are paid for through
intfacompany and intercompany
accounts without the intervenabout the reluctance of American tion of banks. Exports and im-
anticipated.
,
it does not follow, however, that
the alternative of loan financing
is always available. Banks themselves
disposed
are
generally
to
favor the use of acceptances because they yield
a
commission
without the employment of the
bank's own funds. This is true
even in times of easy money, since
ports on open account may be and banks can almost always invest
not be supposed that their credit often are carried out without di- their own funds at some return
policies are unaffected by com- rect
bank financing, although while at the same time earning
question bears out what I have
petitive conditions in the world bank credit may be used indi- commissions from acceptances. In
already
said
about
the- premarket. Proof of this is found in rectly in the form of loans to ex- times 0f tight money, the preferoccupation of American exporters
the accumulation of arrears to porters and importers The bulk ence for acceptance financing bewith the dollar exchange problem
American exporters, as wen as to of United States exports and im- Comes strong, with the result that
as distinguished from the problem
exporters of other industrialized ports, however, is financed on banks may offer to their cusof payment in local currency. The
countries, at various times in Ar- letter-of-credit or draft terms in- tomers no alternative to acceptexperience of exporters with exgentina, Brazil, Chile and Colom- volving commercial bank financ- ance financing in circumstances
change
delays since the 1930's
bia. The commercial arrears of ing or commercial bank services. in which acceptances can be used,
accounts for
their preoccupation
Argentina and Brazil to the
American
commercial
banks
The
volume
of
bankers'
acwith the dollar problem. In addiUnited States were liquidated out finance exports by means of sight ceotances outstanding is reported
tion, by way of rationalization, it accordingly, the need for assist- of refunding loans to those coun- and
time facilities to foreign monthly in the United States acis commonly argued that, whereas ance
from
the
Export-Import tries by the Export-Import Bank, banks and, infrequently, to for- cording to the nature of the
credit risks are ordinary business Bank. Some lines were established
Some observers^ regard' these eign firms and individuals and transaction being financed. The
risks
which
exporters can
and by exporters largely for prestige
bailing-out operations as a poor also by means of advances against 'purp0ses of acceptance financing
anties.
*
This
>
the
;
essential
aspects
themselves
should
views on
of the
of
divergence
two
appraise and
are beyond
transfer risks
assume,
their
control, if not beyond their
ability to appraise.
The
Export-Import Bank has
consistently
opposed the establishment of a government export
credit
guaranty
system
either
'
its administration
under
even
or,
under separate administraposition
that it is unsound indiscriminately
more,
tion. The Bank takes the
to
promote
credits
government guarthe danger- of
by
or
'anties.
■
exports by financial
by
government
>
whether
means
-
It
stresses
overselling the export market and
of aggravating the dollar shortage
affecting a large part of the ex-
The Bank contends,
port market.
economic
commendable
with
•phistication,
rnancial
government fi-
that
assistance
be
should
so-
to
exports
confine^ preferably to
"productive
capital
'which will
contribute to
"economic
equipment
the
development of undercountries and, directly
^developed
;or indirectly, to their capacity to
"make dollar payments. This prin-
;ciple is applied in the loans made
to foreign countries
by the Bank
economic
'for
development.
is
It
preserved also in the Bank's socalled exporter credits extended
on
application of individual ex-
'
'
help
to
porters
specific
finance
•export transactions.
.
Export-Import
•
Bank
Finance
This
-
assist
in
other
circumstances
financing
exports
of
productive
capital
of
goods
vided
its own
indicates
the
Bank
to
readiness
its
of
in
Indeed,
prospectuses,
•
the
that
mean
no
;
than
equipment.
t
to
Ready
Exports
does, not
•Bank will under
'
^
finance
any
exports
character
circumstances
such
presses,
buses
hospital
as
printing
and
equipment,
situations
in
which
in
sight and tinne drafts and (3) beginning in October 1950, collections paid; From these data^ by
application of certain collateral information and assumptions,
« has been estimated that, during
Jhe period Oetoberj- 49!K^Decemher, 1955, about 32% of United
.States exports to Latin America
was-financed by letters of credit,
Approximately 27% was financed
on a *J,raft basis. The remainder,
or 41%, was fmancea , by other
means; open account, remittances
f°r goods shipped on consignment,
an<*. shipments by parent com.
panies
the
in
United
States
to
Fluctuations during the postwar
period in the proportions of shipments on letter-of-credit-and on
al* other terms show that the proportion on
tends
,
a
to rise
letter-of-credit basis
total exports rise
as
.
.
,
other
words,
from
Latin
states
PYnnrtc fall
Tn
^
when
America
„
.
cotton and, on occasion, other
llltnral
agricultural
refunding
of
clearing
trade
on
c+' loc
staples.
loans
away
The
for
the
the
normal
,Ro
,
Bank
.
a
purpose
obstacle
terms
to
con-
during
.
thp
,
for
as,
■rial
arrears
p
!5
nanced in
.
/T.
this
;
ports, there are practically on ap-
•
_
•
Letter-of-credit Basis
j
referred
just
have
tomary methods of
the
Among
ports.
to
cus-
financing imleading im-
way
which is less of
.
g
...
,
in
a
market
sellers' market,
a
.
"
t
,
,<Ir
.
_
Exp^tVT^lSSh^ AmeHcaV" mIhs
average.' tenor of acceptances is
90 days; The volume of trade in
1955 was 1n excess of $6 billion
quarterly, so that it can be said on
rough comparison that perhaps
10% of United States exports and
imports were financed last year
on an acceptance basis,
a
The amount of acceptances out-
standing during
World
first
the
with
comparison
in
larger
the decade after
War was much
the
United States trade
] than during the decade following
volume
of
-the Second World War. American
banks were much more liberal in
earlier 'period in extending
credit, including acceptance facilities, to foreign banks and others
than they have been in the more
United States or in some other recent period. Tight money conmarket.
The case of an import ditions in the late '20s created a
transaction, in which the Ameri- strong preference for acceptance
can importer will usually take the
financing on the part both of
countries.
In theory, an export or
the
t transaction can be financed either on an acceptance or
on
a
loan
basis either
in the
j
m p 0 r
ports into the United States, cof-
initiative
win illustrate the elements of cost
financing, accepting banks and foreign users
0f American bank credit. Amerilumber, wool and cocoa are fi- which must be considered. The can banks suffered substantial
are
usually
1 abroad
part
on
a
Diamonds
imported on a con-
counts.
as
regards
cost of a
consisting of
importer compares the
dollar
acceptance,
or
intracompany acExamples are crude
petroleum,
and
iron
ores
and
concentrates,
other
bananas,
especially
losses,
on
acceptances
the
created on German account, in
commission and discount, and the early 1930's and have since then
oost of acceptance financing in followed very conservative polithe exporting country, or in a cies as regards acceptance financthird country, consisting of commission and discount plus the for-
ward premium or minus the for-
is made through inter- ward discount on the foreign cur-
company
ores
f
$500 million for the two classes
combined. This figure can be put
in perspective by comparing it
Of special interest to this group, with
the quarterly volume of
perhaps, is the role of acceptance'United. States foreign trade, both
financing in export and import "export 'and*; import, at the 1955
frade 3
The volume of > accept-'level on the assumptions that" the
fee, various metals, rubber, sugar,
'
.
.
.
.
Acceptance Financing
already in the United States ance! financing ' in the > United
accordance with estab- states is determined by a number
lished credit p rocedures and of factors> There is the volume of
standards. Foreign exporters ship f0rejgn trade itself. Then, there
to the United States on various are the rules of eligibility laid
terms as dictated by the credit down 4 by ;the Federal/ Reserve
standing of the American im- B0ard
As
regards, eligibility,
porter, by the competitive situa--^jje
no
prohibition * is
laid
tion, and by the custom of the againsf the creation of ineligible
particular trade. It is significant acCeptances, American banks, do
in this connection that there are ncd do s0 as a matter of firm polvirtually no demands for govern-;icy There is/finally, the cost of
ment assistance in financing im- acceptance financing in the United
ports into the United States. Al- states as compared with .the cost
though the Export-Import Bank Qf alternative forms of financing
stands ready to help finance im- jn
umted States and in other
war
,.
,
percentage of total exports is fi-
Tency involved.
A second bank
commission is incurred in acceptance
financing in a foreign mar-
ket if the foreign accepting bank
'
jng
money
b th
large
a°ce "financing
h„nkt?
tightening
Thf>
cost
market
^ney
exDerience
t
a
the
in the
eage
,
aeaint!+
,
of the
market beginning in 1954,
until
militated
volume of accept-
by
United
States
fi-
Qf acceptance
of
newsprint, and some rubber. .As a accepts for the account of the
nancing, reckoned on the
Uonhnvolved^n
represents still another
exception to its general preference
Korean
.
.stituted by accumulated commec-
particular foreign countries.
'
and ' in
signment basis, with the importers
making settlement by means of
and in which it deemed repay- tae increase tends to be financed
remittances. Payment for imports
.ment to be reasonably assured. It on cash terms in a sellers' market. - of
commodities
produced
by
has frequently financed exports of When demand decreases, a smaller American-owned enterprises
otfr.
aggregate lines is typically small, connection with export and import
and in this sense commercial bank transactions. At the end of 1955,
facilities for foreign trade financ- acceptances created to finance
ing at short-term are more than export trade were outstanding in
adequate. It does not follow, of
amount of $210 million and
course, that they meet in all sit- acceptances created to finance imuations the demands of individual p0rt trade in the amount of $252
exporters or the: stated meeds
-million, or somewhat Tess * than
or
the demand nanced for the most
for United letter-of-credit basis.
increases,
exports
pxarnnlp
private financing was unavailable
raw
foreign collactions. They finance identified are six: imports, eximports by means of sight and ports
domestic
shipments,
dotime facilities to importers. The mestic warehouse, dollar exaggregate of the facilities] pro- change and goods stored in or
vided by banks for export and Shipped between foreign counimport financing is large in rela- tries> 0ur interest at the moment
tion to the volume of exports and fs
the volume of acceptances
imports. The utilization of the outstanding which are created in
their Latin American affiliates as plications made to it by importers ;
contributions to capitalJ* ...
for accommodation.y
its
warrant
things
without regard to early substitute for an export credit
prospects of making use of them, guaranty scheme Others regard
There are also operating delays them as proof of the unwisdom of
an<* difficulties largely inherent giving encouragement by means
in the extension of medium-term of government guaranties to the
export credit,/especially as re- extension of exDort credit.
gards the obtaining of adequate <t There is no problem of import
credit information on prospective financing in the United States
foreign purchases for the guidance comparable with the problem of
of the Bank in passing on applica- export financing. Whether viewed
tions for credit assistance. ./
from the standpoint of the AmeriThe actual terms on which Can importer or the standpoint of
United States exports are financed tbe foreign exporter, import fiar.e approximately known only nancing is a credit problem pure
with respect to exports to Latin and simple; there is no exchange
American countries since. J ply, Problem. The American importer
1947. There exists from, this date supplements his own resources
a monthly record based on the re- with credit facilities from comports of leading New York banks mercial banks which are, with
and of a few banks outside New respect to import financing, in the
York which,-shows (1) confirmed relatively, sheltered position of
letters
of
credit
outstanding, giving credit to; domestic names
(2) collections outstanding on 0n the basis of goods enroute to
purposes
pro-
intervention. The Bank has in fact
financed
exporters to extend credit, it must
nU,fexTe^The1 prime
between
through February 1951.
eign
these settlements
producing
countries
and
units
in
parent
.
3 s.. ■■Bank.r.v
.WJSSS Pl"
forcom-
of
the subject.
on
|
basis of
page
20
20
The Commercial and Financial Chronicle
(396)
Continued front page
another
agency
of the United
Government,
the
Commodity Credit Corporation,
through the sale of surplus agricultural products against payment
in the currencies" of the purchasing countries. I turn now to these
and other methods of financing
19
of United States
Foreign Tiade
The Financing
..
.
.
fcank loan
Bank is charging its
higher rates in line
early 1954.
and Janu*
until
rate
1954
March,
Between
somewhat below
but went above it
again
in April, 1955 and .ha?
remained at or above the prime
loan rate since that date. It must
financing
was
the prime rate
be borne in mind in
faking these short-term commercml
on participahons withou^ite guar-
^-Import" CBrnrUand^'tatw3 tighfS conditions toC the
Americ^iaM
oroctonis
and
market.
'
me
me
ias.e
|
Procedures
'■!
Thgi ropinipnt
TrJnn^
^L
nf
loan
a
from
rLV ha*
Tmnnrt
nnpratinP
the
choice
a
He
nroccd1i res
buv
PfinL
H services
fhe lnan afdythen
Ranlr
elieible
^fn nlarJ bfs^rdcr^nder
W
letters
United State's
bv
oncned
his rhoie
east*
Weed
bv
the
Exnort-Im^rt
Bank
Pavments made^bv United
of
sStei
banks
.™nr
this
under
arranee-
reimbursed
be
mav
.
obtaining
commercial banks selected by the
he
are
cur-
reimbursed currently. The In-
ternational
.rently (in practice within 10 days
to one month), or the banks may
Bank
has
had
character
The
the
paid to the Japanese exporter of
textiles.
The
CCC.
The
significant
thing
about
States that they represent adaptations, oir
variants, of established procedures
in the financing of United States
exports. Finally, it may be noted
that the exports financed by these
techniques
constitute
approxi-
United
Pakistan bank placed the es- mately one-sixth by value of total
crowed rupees to the account of exports,
of
———
government
Continued, from page 6
Commodity
Credit
(CCC)
lt sells sur-
•
'SJSb}Li*
a
measure^of success in obtaining their
^
:
.
•
•
A„|l AA1-
fl
Q||y; KOSV II ttflOOK
^ '
^
^
Vf ^
loans but as prime sources of
payment in local currency- , •
your newspaper. The Federal Ke• Sales against
dollars may call serve Board has raised the refor either spot or deferred pay- discount rate." Thereupon, you
ment. .In the case of spot sales, may have decided you did not
the CCC requires cash or an-ir- want to pay the higher interest
revocable letter of credit in its rate — and postponed your infavor issued or confirmed by a tended commitment, in the hope
bank in the United States. In the that mortgage money might becase of deferred payment sales of come relatively more plentiful and
six months or less, the CCC re- therefore less costly to borrow. ;'
quires bankers'acceptances; in the
That situation—multiplied milcase of longer periods, the CCC lions of times over — illustrates
requires the obligation, in the how the present government
form of an irrevocable letter of works-through the- Federal Recredit or other document, of a serve System^-to keep our econbank in the United States to pay 0my on a fairly even keel. As
the purchase price of the com- circumstances may warrant — it
modity plus interest upon expira- geeks constantly to guard against
tion of the deferred payment either incipient inflation or deflaperiod. The CCC announced ip tion by raising or lowering the
February, 1956 a policy of selling cost of borrowing mpney.
on terms up to three years. It
This harnessing by the governremains to be seen to what extent ment, of the power of money, is a
foreign buyers (which will pre- tremendously important force in
"
borrower.
In the
latter case,
contrary to Export-Import Bank
practice, the International Bank
charges a commitment fee to the
borrower in consideration of its
guaranty to the commercial bank.
Disbursements
by
commercial
banks under these arrangements
the
Or
as
out
L°rPoratiom (ucu>. u sens su
Pro°ucts against pay
reimbursement
frdffi:vthe-.-International-' Bank or
of using letters of credit guar-,
anteed by the Bank opened by
under
to
annlv
reimhnrscmcnt
for
'ation
cor
International Bank Procedures
' Procedures under loans of the
then
arried
Finally,
.
Export-Import Bank. The. borrower has a choice of using his
pwn funds for eligible outlays and
"
.
the
upon
transaction
the
International Bank are similar to
those under the loans of the
up
up
uiv.i
Export-Import Operating
>
States.
paid the American cotton
shipper and obtained reimburse^
ment from CCC. It then advised
the Pakistani bank that payment
had been made, whereupon the
Assist-
and
better known
United
the
Japanese bank collected yen from
the Japanese purchaser of the raw
cotton and thus 'obtained reimbursement of the yen previously
cotton
hank
Agricultural
the
1954
.
,he
money
'
under
from
a^riniltiiral
Develooment
Art of
American
the
.Thursday, July 26, 1956
shipper, the United States bank these banking techniques in conbeing
protected,
as
described nection with government grants
above, by a letter of commitment and loans to foreign countries is
sur-
under several financing techniques
-
tocollectionwith toelaleabroad
S surplus agricultural products.
Set
take them
in order,
i*i
odurts
depending
anty, negotiated rates ot interest
presumably commensurate with
the risks and term involved.
Under these new conditions the
Bank has intensified its efforts to
get commercial bank participation
in its loans and has had some
MUon?l I3ank loans to connecSon with loSns and grants under
♦he
7irniii7'
of
favor
Surplus Agricultural Sales
_
the relative cost^ot
loan financing that
foreign borrower?
loans at the prime
rate. This fact tends to create an
advantage in favor of acceptance
financing over loan financing.
I come finally to the financing
of
acceptance and
relatively few
are eligible for
comparisons
agricultural
Of
the export
borrowers pluses.
with the v
higher rates fixed by the Treasury
and more in line with rates of m- ;
terest m the private market. The
Bank is now offering to comercial P
banks, on guaranteed participations, the prime rate of interest on
1955, the cost of acceptance
ary,
to
the
credit
of
the
Japanese bank which had paid
yen to the Japanese exporter. The
next step was the shipment of raw
cotton to Japan under a letter of
credit established by the Japanese
bank at a United States bank in
rupees
,
States
/
.
SSh a c°unt7 "k.e ours.> w?ere so
will be^willing and much, of business-'is done
direct business revenue Furthermore, the current trend of stock
prices exerts a great psychological
influence on, the thinking. and
plannmg of all who have anything
to do with business, because the
stock trend is construed as a direct
reflection of the composite atti*
°f thousands of leaders about
the future.
^
; It is doubly significant, there^
to note that here again—
-through provisions^ of the Secunties Exchange Act —a group of
able, experienced men is policing
an activity of fundamental im^
portance to.us all. This,-! believe,
1S making for greater honesty in
security markets and Tor ^more
investor confidence m the future
an^better long-range economic
stability.
,•
.
Another potential shock absorber
•
in
on j
■
Taxing Powers
-
economy
banks
our
is
the
govern-
by United States able to arrange credits for this credit. Almost every business we
the
banks in its loans purpose, especially in view of the Sr?1 with is t heavy borrower. t
,the letters of credit opened bv commercial
opened by
X.rXurLZ' L wit deal
:n 1S a
'juriuw7r--taxing powers. There still is much
them and accented by the bor- without its guaranlty a*t tbeltime large amounts involved m bulk This is true of our food accounts
accepted bv the bort its guaranty at the time
Tbis is true of our food accounts room for improvement, of course,
rower. If they elect to hold the the
^erioans were made. Asi of ^arch rstopments of ag cultural com- —especially those who freeze, can but all of us have seen evidence
1°^ werejiuade;.Asi of March
ot. agricultural com- —especially those who freeze, can but aU of us have seen evidence
'acceptances,' -they : may do ,so 31,^ 1956,
such .^participations modities. ; ,
^or otherwise process fruits and that taxes are being administered
elect
drafts
hold
to
drawn
participation
under
r
.
rfII1III
,
mm
^
Sales of sur plus ^products vegetables which nature provides
Financing techniques under sthe against deliveries of strategic ma- in abundance only at certain
American aid programs were es- terials, or barter deals, involve the seasons. Even the largest, food
amounted to^45 :nnjtyn.
under
an
agreement " with
the
Export-Import Bank to tak£ them
out at any time or to hold them
-until
maturity under
the
Xrom
against loss
The
-
guaranty
a
Export-Import
from default.
amount
Bank
commercial
of
bank
financing in connection with
•Export-Import Bank loans has
been relatively small in the past,
.largely because the rates of inter,est offered by the Export-Import
,
Bank to the commercial banks for
'putting
fhnds have not been
up
'attractive
to
the
commercial
'
This
public, debt.
mmnncorl
situation
Since
the
debt
riro/'lAmino'niltF
—
*~\-C
.well
would
,anteen
StflTAQ
those
commercial
.
77
AAPrtirn'M
7
since .favor
r
T
iles
'iwoniaormil?*
^
4.
£
tt
fhof is, ef«Yni
since
-Treasury, that
ic
Tl
«
,
•
'
r
remission
of
customary
in
taxes
many
of
tives of unusual ability has done a
really wonderful job. I know peswill say that eventually
there
example it is probably that
a
few
would pay our income taxes
vfun, The prevailing practice
m
money
if
considerable
anv
sum
of
tovXed is^^to^^make^ a
is
wrong individuals may find 6eal,with the tax collector wheretheir way onto this Board and bv he would eet some monev -the
wreck it. Until or unless there is g0vernment would get some 'and
tangible evidence of this, how- "the taxpayer would keep the' rest!
by the exporter ?,ver> Raorrl'c
we can safely assume that
We can be thankful then, that
rortnlotArtr
nn+iaac
i»
_
ii
"
•.
w
,
.
u
KJJ
of
tlic
the
1U1
uu.y \zi
United
Tba
.
in
States
...
-
'
-
—
United
States -banks
to
recently,
used
shipments
'
i
.
in
under
i
all
letters
connection
the
governmental
of
with
American
«
upon
.
q- Aney worK -wims way: tne
f
.
imposed
authorities in
■
SEC
.
Still
•.
another
relatively
new,
say, West Germany. Then, at the
direction of the recipient country,
becond,
the
the local currencies acquired
and
;
.
,
.
effort
to*
that
properly "enforce
important,. and
iawS-
Furthermore,
our
absorber: which
ment
U
to
beffinninv
our
tax
governtecoenize
rtguUto^ St
foreign country, depending
the circumstances in each
and the bank is protected by
i
sales
1
of
t
i
1
•
surplus
the shipment of
-
equitably
government is making am honest
Q1?n
«■
A
A
1.
^
w
.
_
A
^
_11
_
i*
Jl_
'
agricultural
spending can
n«
the Export- the aid agency, by means of a
su.bst?ntla.lly letter of commitment, authorizes •
welfare.
now is built into our economy is Sf benefteSl
fh® Securities Exchange Commis- whieh well-timed adjustments in
case,
si°n- This regulatory group pro- basic tax rates can exert on the
a guaranty in the form of a letter focts
the i public against mal- health of our over-all economy,
of commitment from the CCC. In practices in the investment field... Experience already has demonaddition to sight credits, provi-* The SEC forces the nation's stock strated that when
business
the
.
the
United
raw
States
cotton from
Co
Japan
and
the shipment of cotton textiles
from Japan to Pakistan. The first
1 lgber. rate based on the porting country. The purpose of bank and a Japanese bank. The
^ of the Banks this new procedure is to utilize consummation of this step was the
loans,
.
nomic
ex-
Treasury is charging a United States- bank to- open step.was the shipment of textiles
*12. the average cost o letters of credit providing for pay- under letters of credit or other arlS? public debt, but ment in the currency of the ex- rangements between a Pakistani
.ouisianaing
were
The Board comprised of execu-
agency issues a procurement commodities against payment in' *° issue periodic, complete and
authorization which authorizes a foreign currency may involve tfut"ful statements about then*
?eoin?w fec|Plent country, say, Thailand,-triangular transactions, as, for ex- "I?/1.06® and^general operations.
5s
goods in a third country, ample, in an actual case involving
This is extremely important to
1953,.these
'
-
pri-
measure
deliberately
parts 0f the world. In France, foar
Ex- aid
circumstances affecting the inter-
e-D?2i.
Until
credit
•
Tu
by
the
foreign banks.
n
J1
'
punitive
a
people
obtaining
inflicted
him
to
ment by the aid agency to the which opens this credit is selected
commercial banks, credits are by the foreign buyer, his bank, or
fully guarFurthermore, the
Treasury
■
as
of
and to-
as decisively, nor as
prudently as m the last few years,
by the
CCC, he must open a letter of
credit in favor of the CCC under
which CCC can draw only if pay-
Vh'ciicu
However,
pose
T AO
delivered
0r
up in 1913. However, it or complete
before has functioned as *This is still
inthiS{Case no commit- porter. The United States bank
even on a
basis.
7
ment technique.
bank there is
which
was paying on its own
borrowings in the public market,
.Einally, there also prevailed dur-
„
to ;be
opened under either standing or
special lines extended for the pur-
Itl rf
Some
intelligently,
cash
-pay
were
mariiy
tor^the gratoorother.commodity "toists
i_x«
Bank to commercial banks of rates
of interest above those which the
*
^exporter is prepared to
means
revemie
set
was
.never
in
payment
discriminate
ruth-'
either
^ 0PpXn1stic
prevailing interest rates as any PUI1ished by the exaction of exborrower.
.V;,cessive taxes* others were espeThe Federal Reserve System cjauy favored by the abatement
local currency frequently involves
two letters of credit. Unless the
Anannrl
nQRIT'
Treasury objected m principle to
the offering by. the Export-Import
;
against
were'levied
taxes
whole
year's supply of raw
materials. Hence, they, become
heavy short-term borrowers from
banks; and are just as sensitive to
a
-
below
attract
participation
commodities
;
agency are assigned to the United .ment is not made
was
r-UrtV.4
7
were
processors do not have enough
cash at any given time to pay for
tablished at the inception of the establishment of letters of credit
Marshall Plan to 1948 and have in favor of CCC providing for
not changed since except in detail, delivery of documents covering
Recipients of aid may use their the materials to be imported, or
own cash or credit to buy com- in default of such delivery, pavmodities and services under pro- ment for the surplus commodity
gram authorizations issued by the exported. . One
feature of . the
aid agency in Washington and letters of credit used in connecthen claim reimbursement from tion with; these barter transacthe aid agency. This is the so- tions is their long validity, which
called reimbursement method, may be 18,months or longer.
Alternatively, recipients may proThe sale of surplus agricultural
requires cure under letters of credit opened
.more than a word of explanation,
by United States commercial
'The Export-Import Bank has the banks of their .choice and guar.option of obtaining funds from the anteed by the aid agency by
Untied States Treasury. Until re- means of a letter of commitment
cently, the Treasury applied a directed at the request , of the
.rate on the Bank's borrowings recipient to the designated United
from it based on the average cost States bank. Under this procedure,
/to the Treasury of the outstanding reimbursement due from the aid
(banks.
in the United States with steadily
increasjng intelligence
. .
'
Elsewhere in the historical past <
by-deposit
in
escrow
of
Pakistani
be
a
tremendously
powerful force in changing the
psychological
attitude
of
the
people and so prime the pump of
economic recovery.
everyone, for we are all m the
stock market directly or indirectResearch As Stabilizer
whether we actually buy or
Next on the list of economic
stocks. Our livelihoods are stabilizers is the growing impor^erlve4' ^or
m9st part, from stance of-Research. I am speaking
so"?e, I°rrP of business activity not only of the kinds of research
which, in turn, is affected greatly we employ in advertising, but
by. the ebb and flow of security even more importantly of the inPncos because securities not only tensive product improvement, new
S€rve
as
the
basis
for
business product development, and manu-
Volume
184
Number 5554
.
„.
The Commercial and Financial Chronicle
.
1l
(397)
factoring
being
procedure
carried
tories
studies,
in
on
and
drafting
rooms
of
science, industry and commerce.
Many theoretical economists are
not giving sufficient
weight to the
development of research. Yet, the
combined
results
studies
enabling our
competitors to
and
are
their
of
business
enormous
products
which
dreamed of
clients
do
an
with
not
even
few short years ago.
a
Applied
research
today
were
product-service
re¬
search will be accelerated at such
rate
a
that
it
compete
As^a
will
be
for
impossible
any
company
to
without
it.
successfully
matter
of
fact,
The Unions
now
labora¬
the
virtually
American
Still
force
in
already has carried re¬
to a point where it is no
longer advisably for a company to
withhold
from
the
market
practicable improvement
goods or services.
There
was
business
when
by
jthe
with
time, in
a
in
that
cally
"labor
lowest
meant
that
usually
got
to
with
the
hungriest
work.
of
for
a
radi¬
for
man
which
is
course,
based
margin this
on
is
under
when
vent
pre¬
from
Now,
labor
truth
when
unions
automatic
it
and
—
business
to
refuse
in
cut
the
has
corded
for
their
type of tire or
tube, either because the retooling
required to produce it would be
unduly
not
are
but
work
generally
has
Last,
net
the
bene¬
industry. That possibility
necessitates increased research
by
every important tire manufacturer
—if only as a defensive measure.
Competition likewise compels
marketing at the earliest possible
moment
while
every
and
new
product
worth¬
improvement
re¬
sulting from research.!
Research
also
mous
progress
This
in
turn
equipment
obsolete
economy.
and
kept
As
one
made
increase
or
a
a
became
capital
very
manufacturer
machine
enor¬
manufacturing
methods
the
invest¬
high level.
developed
plant which would
production
;
■
see
what
pany
the
is
General Electric Com¬
doing in Louisville.
The
new
things they have injected into
their business—both
product wise
and production
in
your; eyes
would
their
future
sales
projec¬
Yet such estimates
tions.
of sales
possibilities
radical
pear,
As
wise—would open
hurry.
So too
a
-
are
conservative
though they
a
now
■
result
of
this
.
accelerated
competition, the nation's annual
capital investment expenditures,
for.
a
long time, have been
aging $30
such
billion
a
investment
might be stepped
up
aver¬
Indeed
year.
expenditures
to $35
soon
billion
a year to include new
tom-built plants to house the
equipment and machines.
cus¬
new
Services
dire
portant—for
re¬
playing
believe
of
and
they
of
have
that
We
each
the
next
can.
We
as
we
we
be
can
United
faith
our
to
least to enjoy
well
the
the
their' work
at
think
and
of
because
that
at
as
Because of
money
Old
other
and
Federal
want.
the
the
States.
in
the
is
if
have
now
similar
That
over.
fu¬
in
enough
affect appreciably the economy in
times of stress. addition
In
these
to
benefit programs,
Federal
there
a
Governments,
tremendous
our
As
a
true
clients.
result
of
these
the
of
quits
six
work
So
our
we
still
that
have
miles
auto¬
a
hun¬
service
of
we
are
bewail
those—to
the
fact
upsurge
be
that
is
spoke
we
i
carry
on
the
research
required to keep them
competitive. While this phenom¬
of
enon
the
big
companies
get¬
ting bigger
eventually may pre¬
problem, the fact remains
that research has, thus
far, been
sent
a
a
business
of
tremendous
stabilizer
of
the
research, our
stantly have been improving pro¬
duction
methods, reducing pro¬
duction
costs
and
bringing out
new and improved
products. These
developments have had the double
the
Critics
market;
cite
industry, where
three" controls 96% of
barrelled
effect
of
maintaining
encouraging
purchasing and
capital
investment
expenditure
«*t
greater
consumer
a
high level.
Another
sults
Economic
economy
the
business.1 While
this
the
ihg who believe
from
various
benefit
a?ve!l1Slrlg think +uU? lu aS
asshould.
I
that there
-
»
grams.
illustration
of
tion
own
of
our
fund—which
this
is
the
opera¬
employees' trust
Young & Rubicam,
lion's
of
who really
us
ican
are
and
has
He will be located in the South¬
aHd
fornja
64?
receptive audiprosperous potential
of
a
buyers.
glad they
how
see
have it. The same
shoes
thing
are to
true of
is
anything else that adds to
or
man's comfort.
.Yes,
First
ajso
their
It's
are
ability
to
satisfy those wants that is important.
And
that
ability
is
still
limited — even in this relatively
nation. As individual
prosperous
and
earnings
collective
increase,
consumers
ability
greater
—to
California
the
gaged
as
win
•
true
in
varying
de¬
States today more
individ¬
for
their
specialists
clients
our
an
ever
-
held
inflation
increases: in
in
creases
national
the
the
n a
t i
future
income
further
still
in
result
in
stabilizing
various
the
by
o
n's
in-
discre-
tionary purchasing power. That in
turn should keep the advertising
business
humming,
because
our
principal concern is with that part
the
nation
income which be-
s
available
for
discretionary
spending. We have relatively little^
over the nation s purchase^
sway
of
life's basic
can
oyer
services
it
of
has
has
en-
Daniel
J.
rej^ a Stanford graduate, was
formerty petroleum officer for the
Naval District.
12th
He
nia Geological Society
1954
was
exert
necessities-
tremendous
but we
influence
its expenditures for discre^
Executive
of the
man
is
past
a
the
At
is
pickerell
and during
Vice-Chair¬
Oil
State
committee.
Information
present
time,
President
of
pexc0> jnc> and 0f Big Horn Minjng
Company
in
Wickenburg,
Arizona; He is also Vice-President
of
McGreghar Land Company. Mr.
pickerell
will
ment house
advise
oil
on
of
studies
make
the
invest-
properties and
individual
corn-
panies>
First California Company main-
memberships
in
four
stock
exchanges and has 33 offices serv-
jng
investors
in
?
California
Nevada. Its main office is
at 300 Montgomery
a
|yi
continue
will have
satisfy
to
advertising
further
With
check
Company
that
ann0Unced
tains
people
of
wants
the
limitless.
to
Cali-
President of the Northern Califor-
I know text books used to say
that the primary function of ad¬
vertising is to "create wants." I
you'll
First
,
ward looking temperament of our
ence
of
Pickerell of San Francisco as
for- petroleum consultant. Mr. Pick-
confident
the
people has made
office
Company in Los Angeles,
Spring street,
South
?-iaV?r?
+uBS
m
.because
Division
ern
nowhere else, because the eco-
n0I?1Ci-
Telephone
Telegraph, Northrop Aircraft^
and Fibreboard Products.
entire economy.
flourished here,
our
in
analyses of the
Pacific
as
XT' iKynKnnyi-3
nnrl
which, when properly used
an important stabiliz-
Advertising
as
Review,'"
Corporate Director." He
companies
become
ing factor
"American
Journal," "Amer-
science
management and outlooks of such
com-
that
we
actually
are
with one OX tH6 DdOSt
powerful forces
that has
ever
been developed — advertising — a
can
Chronicle,"
Political
and "The
prehend
working
force
Business," ""Commercial and
Financial
Bar Association
y has made special
i
few
very
hav(fappeared
writin£s
in the
"Harvard Business Review," "Na-
His
of
power
should
number of important
you will be pleased to
and
located
Street,
Krenskv Opens
?
o
I exas JtSranCMies
IWO
*
111.
Co.,
CHICAGO,
Krensky
&
nounced
branch
the
offices
—
Arthur
has
Inc.,
opening
of
in
Midland
M.
an-
two
and
0dessa) Texas.
The Krensky firm
has
branch offices in
Chicago head-
eight
their
to
qUarters office,
*Hollis A. Smith has been named
in charge of the Midland
office which is located at 144 W.
manager
Wall
Street,
manager
of'
will
wbich
and
John
Favor
the
Odessa
office
headquartered in
be
Hotel
tbe Lincoln
Krensky firm will have a
new
radio-equipped
bus
with
to
the
minute stock quota^ons and information which will
The
-
^our
-
-
the various well locations in
area
recejve
s0
that
first-hand
customers
stock
can
reportj
a^d data
firm holds memberships on
New
York, American, and
for
Midwest
Exchanges and on the
prosperous years. I think that this
Chicag0 Board of Trade,
is virtually assured, thanks to the
unique competitive spirit of our
ra
Hanifen Co.
rapidly expanding population, and
.
n()W ^
"
#
of the United States and its peo¬ to the growing number of stabilizDENVER, Colo. — The firm of
ple.. I have been to many places ing influences — such as those MeCabe, Hanifen & Co. has been
in the world—and to the best of exercised through the Federal Re- dissolved and the new firm E. A.
Board, the Securities Ex- Hanifen & Co. formed with Mr.
my knowledge — this is the only serve
Commdssion, the Labor 12. A. Hanifen as sole proprietor.
country that has this attitude. In change
other nations the people do not Unions, Social
Security Legisla- Mr. William E. McCabe has retired
believe
they will go ahead—so tion, Tax Adjustments, Unemploy- as partner but is continuing hia
they don't even try. They have ment Insurance, Employees' association with the new firm.
enjoyed these
ever
increasing opportunities to
make money and prosper?
It all
stems
back
to
the hopeful,
ag¬
gressive and optimistic attitude
Why
re¬
pro¬
turn
con¬
learn that "there still exists in the
Stabilizer
They have helped to foster
stability in many different areas,
including importantly, the stock
market.
Perhaps
the
simpliest
accounting, and political science,
i.
advertis-
the
in
_
philosophy from George¬
town University, majoring in eco¬
nomics, business administration,
?°int a
in
r-
torate of
for I think that there
few people
very
*
science degree from St. Louis
University, a masters degree from
Washington University, and a doc¬
helped to make advertising
the powerful force it is today. I
are
•
.■Dr*. PrmcJ received his bachelor
has
bit further
TT
^ University of South-
as an economist.
has
•
m
it
influences enumerated, any
is
for, 'United
stabilizer
as
"the
97%
'of a
industries,
growing national economy.
Another
<*
+
,
California, has joined the un¬
derwriting and
buying depart¬
ment of First California
Company
addition
grees
American economy.
By means of
manufacturers con¬
•
.
^
n6w
centration
dynamically
our
advertising
*
,
ern
which
sibility
*
detriment to
before—with
wants. Then it will be our respon-
the
.
a
„
average
sure—
becoming - dependent on ual/"businesses than ' there were
; It
is largely because of nine years ago. In fact, the pres¬
this, I suspect, that there has not ent number exceeds 4,200,000! So
been a greater increase in the na¬ 'you see two trends prevalent si¬
tion's
personal " savings.,
That multaneously.
Big business got
probably is to our net advantage bigger and bigger, while individ¬
because strange as it may appear ual business enterprises increased.
at
first
excessive- savings could
What is the real reason for this?
be
of
a
of
funds to
one.
the
helped to foster—]ust
comes
the
only
or
of
"disposable income"
which
lieve
u
without
lacked
has
power
of
develop—
provided
true
not
money—that
others.
disadvantage because they
be
FRANCISCO, Calif.—Dr.
Prince, former Director
Research, American Institute
of Management, and lecturer in
business administration, Graduate
him
as
it
SAN
of
Here, the man
who can make enough in two or
three days to live on for a week,
keeps on working to" earn extra
distinct
will
he
takes
soon
■,
Charles
live,
increasing share of the nation s
stepped-up discretionary spending
big
many
more people are
assured
when they reach retirement
they
as
it—whether
to
in
automobile
ments,
age,-
equiva¬
week
a
days, three days,
that
ment
There,
the
needs
$25
say
earned
important part in the develop¬
of
big
companies.
The
smaller companies have been at a
an
who
man
lent
which
There
of
•-
,
of
believe
big; companies seem td be
bigger, and bigger and
to be controlling more and more
plans, etcetera, .^spon¬
private
enterprise. M
been
especially interested
is
differen¬
fortunate
world.
the
by
that this
It
less
the
the
of
growing
insurance
have
time
warrant
we
which results from this spending,
funds, pension plans, group
plans,
unemployment
to note
suf¬
are
obsolete
we
which
tremendous
in¬
insurance
sored
that
them;
who
in the number of employee
crease
trust
been
•♦/
administered by
State
and
has
other
and
incomes
increase.
thousand
erators
to
sum
our
we
discard refrig¬
people in the rest
of the world would be overjoyed
to own;' that our wives throw out
curtains and drapes just because
they are tired of the colors; that
we buy larger homes just to keep
up
with the Joneses—and so on
right down the whole line of both
soft goods and durables.
means
~
large
fact
dred
.
a
on
mobiles
flowing
get
services
-hesitate to
the installment plan, for
feel that
the
back - into
the
same
economy V from
which
it
originally came in the form of
taxes.
Multiply this income by
the number of unemployed and
you
work.
from
only a small part of limitless. You can go anywhere
our total purchases it has had an
and prove it. Down in Mexico, for
important effect on the buying example, some people will tell you
psychology of the American peo¬ that the peons don t want stoves.
ple. It is partially responsible for But just try giving them one and
a
him
tide
to
to
us
us
over-all
First California Co.,
Pickerel! Also Joins
It
money.
represents
qualifed worker .'be¬
comes
unemployed, ' obstensibly
through no fault of his own, he
is not going to be destitute.
He
will have
some
money,
in fact,
$36 a week for up to 26 weeks,
income
tiates
our
,
demoralizing. In New York State,
example—and I believe most
states
impels
invest
the
Dr. Prince Now With
is
encour¬
overihdulge in our desire to en¬
joy some luxuries of life, while
earning the money with which to think this is a lot of poppy
cocy.
pay for them.
V
■
The wants of many don t have to
Although
installment
created.
buying be
They
are
already
im¬
for
—
do
incoipes^ will
someday standing in a
line, can be haunting and
bread
Nor
ficiently secure to
payments. In fact,
destitu¬
of
for products and
want,
we
Security
This
fear
today
It
com¬
do
as
nation;
compete
live
to
tomor¬
spirit
really bright future.
each
tion—of
of
.
"The keen competition which
search has
engendered, is
•
will
u
They
other,
other
no
excel
fellow'
absorbers
the
of
to
come
may ap¬
:■
♦
to
want
.
—
each
conviction
only
a
which
better
even
become rich—or
Program. These have instilled a
great
feeling
of
confidence
in
our
people that they will never
plans
In any of
you have the slightest
about this, you should
their
buy
Health
other
doubt
with
of
Americans
and
other
'.;v:'<•
...
factors
is the competitive
people
we
every
stay competi¬
certainly not least, of
an
President
Unemployment Insurance,
as
lower
to scrap his old machines
and get new ones to
but
for
American people.
Age Insurance, Veterans' Pensions
industry had
or
plant,
manufacturer in that
shock
markets.
helping
stabilize the nation's income, and ture we do not hesitate to risk
capital
in
promising
new
hence its economy, include such our
business ventures, or to spead our
comparatively recent innovations!
and
manufacturing costs,
tive.
Other
the
>:v
■
phases
reducing costs.
as
ment market at
a
has
in
people.
manipulations
securities
various
make
pete
the tire
to
us
countries
feverish
nation's
prevailing
rate
of
hourly
theory at
earnings at a high level until
not ready for it. That is not true' sales
improve and employment
today. With so many big tire com¬ increases.
This has acted some¬
panies
engaged
in
intensive what like savings put in the bank
research,
there
is
always
the during good times and drawn out
possibility that the other fellow in periods of need.
Therefore,
suddenly may bring out a revolu¬ spread-out work has been a brake
tionary new product which will against a very rapid decline in
change the whole complexion of the
earnings
of
our
working
because — in
least—the market was
America
extremely significant.
for
economy.
this
American worker.
row,
or
characterizes
This
Repeatedly spread-out work has
given us an opportunity to keep
costly,
belabor
,
ac¬
the
been
American
to
point,
but
I
believe
that
this
unique competitive spirit which
ages
Programs, et cetera, which
functioning
as
shock
are
absorbers
want
stabilizing
influence
is to
buy some luxuries or
non¬
desirable—not only from essentials of life.
an economic angle—but from the!
This,
then,
is
the
spirit
of
standpoint of popular psychology. America—and
it is a spirit, I be¬
our
the
to
not
highly
credit
of
to
or
begins
do
Such
that
so
the
the
income;
always
share
due
spread-out
result
ficial
out
some
it
by open-end trusts, by labor
unions, by various pension funds
and so forth, definitely stabilize
wage
a
be spread
when
ours,
an
scale,
wholesale firing of people.
They insist that whatever work
or
weakens,
and
sell
private in-and-out speculators.
held in strong hands
—by company trust funds like
slackens,
accept
market
never
to
I
Benefit
now
future.
Securities
>
:
fund
in the
of
hasn't
time."
some
in¬
an
hysteria, and
stampeding
might \ otherwise
result
which
of
in
no
personal optimism—no belief
they can prosper—no confidence
■
In our economy today, such
philosophy has not the slightest
for
ac¬
Ability of such trust funds to
stay on the sidelines helps to pre¬
to
a
element
trust
buy
strengthen.
to
cept.
had
Unlike
compulsion
any
the
in
rush
theory,
that
on
A
ago.
dividual investor who buys stocks
the
willing
was
The whole Marxian
unions
a
pendable income.
they
laboring
man
than he needed
wages
years
capital gains—but
decently, because his
scaled down to conform
was
Labor
postpone
introduction of
which
14
stocks—not primarily for
rather for de¬
common
labor
taught
at the
on
live
pay
the
less
worker
improved
of
sells
by
—
every
could,
that
always
price"
tire
manufacturer
is
Classic economists
pioneered
considerable» portion
of its
cumulated
funds
is
invested
stabilizing
begun to be felt
economy
is available
the
impunity,
while the
its
our
Inc.,
great
has
example,
of
way
any
which
unions.
business
search
another
have
we
all
tionary goods and services.
In
summary,
I
look
The Commercial and Financial Chronicle
(398)
22
important
9
Continued from, page
Enforcing the Secnxities Acts
..
reflections upon repiation and character. A good seavoid unjust
must
investigator
curities
Holmes, a lawyer, a
lie accountant, and
com-
Sherlock
certified pub-
of
talents
the
bine
a
diplomat,
trail of
investigators
a
Nevertheless, once on the
artist,
fraud
a
our
generally get their man.
tion and promptly ordering an aaministrative hearing to make the
order permanent. However, in its
analysis of the document, the
Commission may not have had
knowledge of, or access to, certain
facts necessary to challenge the
untrue statement. The techniques
used in processing offering documents
•
New
.
.
Registration
Issue
to
pertinent
obtain
facts
designed
by
ticular stock in order to acquire
control of the company, or because
the
*■ v
to
in
with
conformity
catch statements which, on their sec0ndly, whether they are dealface, appear to be misleading or
honestly and fairly with cusonly gives the ? public pertinent incomplete. It would be impossible tomers. Included under the first
information
about securities is- for the Commission to establish heading are such matters as the
sues; it also assists the Commission the truth of every statement made
maintenance of adequate and curof
conduct
the
in
has
mission
its
anti-fraud
activities. The Com-
enforcement
control
able to
been
in the offering circular or to conduct an independent investigation
to determine the validity of every
mining claim. Absent some reason servance of the margin rules of
to suspect the falsity of the stateFederal Reserve Board, and
prospectuses and ments made by the registrant, no compliance with the Commission's
offering circulars, which are re- such investigation would be made ne|. capital rule. These requirequired by law to be delivered to bv the Commission. The securi- ments are not mere "red tape";
purchasers before the completion ties acts contemplate that the reg- they are essential to the proper
effectively the written statements
used in the sale of new issues of
The
securities.
interstate commerce, are
istrant must assume responsibility for the truthfulness of the facts
carefully scrutinized by the Com-
presented.^ The critical examina-
mission to eliminate all statements
tion of filings by the Commission,
of
sale in
a
rities in
that
might
such
as
distribution of secu-
a
mislead
investor,
an
assertions
unfounded
re-
garding the existence, amount or
quality of ore in a company's
mining claims. If a distribution
of securities is legally made in
accordance with the registration
requirements or pursuant to Regulation A (which prescribes the
simplified
procedures for small
public
ing
of
offerings
interstate
securities
in
exceed-
not
commerce
$300,000), the investing public
though not
than
and
fraudulent
ords
statements that appear in offering
literature is one of the important anti-fraud preventative measAvoidance
of schemes
enterprise by
the
disclo-
offering circular.
One
common
a distribution
out registration is reliance
review of books
inpeo-
Our
more
and
carefully examined.
check for misuse
manipulation at this time.
rec-
Dealings with customers
Inspec-
of custom-
funds> hypothecation of customers' securities, taking secret
in prosecuting cases. For example,
federal jurisdiction over brokers
and dealers would be based on
their status as registrants with
the Commission or as members of
registered exchanges in addition >
to the use of instrumentalities of ,
interstate commerce. Another
amendment would expressly limit
the right of a registrant .proposing
to offer new securities to withdraw a registration statement by
requiring the consent of the Cornmission to the withdrawal. A similar limitation woulck be imposed
on the right of brokers and dealers to withdraw their registration
statements. The penalty section
of the Securities Act of 1933 would
be changed to make the filing of
any
misleading material under
Regulation A a criminal offense,
Another significant amendment
would be the codification of the
Commission's anti-fraud rule
known as Rule X-10B-5, relating
to fraud in the purchase as well
as the sale of securities, to make
it a more effective instrument for
criminal prosecution,
From
industry great harm may be done
by passing on unfounded or incomplete information with respect
to a security or by expressing
purchases and sales to customers
at prices having no reasonable relation to the market, and abuses of
trust
and
confidence, such
the
as
practice of churning, that is, excessive trading in the account of
opinions not based on knowledge
confiding customer in order to
The enforcement techniques that
a
reap
an
illegal
harvest
of
of the facts.
have
com-
with- missions and markups.
the
been
,,
described
the
involve
exercise of the Commission's ad-
-
ministrative
These
functions.
in-
intrastate exemption. Although all,
Jrunitive .Action
elude the power to conduct in*ales are Purportedly made within
jn the event that violations are vestigations,
subpoena witnesses,
mgs are made by issuers and bil- the state where the issuer is in- uncovered, the registrant Neither issue stop orders preventing the
lions of dollars of new securities corporated and doing business, the notified in
writing and warned of distribution of securities and to
are legally sold to the public every
distribution of a larse block of the transgression, or, in the more institute civil or criminal proceedThese issues
havf been dis~ stock usually enters the channels seri0us cases, an administrative ings. Effective enforcement of the
Thousands
statements
of
and
full
registration
Regulation A fil-
tnbuted to the public after a care-
ful
analysis of the material filed
with
the
made
and
cleared.
Commission
the
However,
mission
does
has
been
offering has been
not
the Com-
since
purport
to
pass
that the Commission has per-
offering
an
of
securities
to become effective does not
either
proceeding is instituted to revoke
the
registration of the broker-
number of
deaier
who profess to
take down the securities for investment purposes. Although they
frequently arm the issuer with an
is
that
the
mean
disclosures
are
A third device
the
illustrate
limitations
the
the
of
protection
in-
sider
tlon-
osure philosophy of the
The disclosu
cts
securities acts is also administered
ion
sume
that
the - offering
circular in connection with the registrawith the registracorrectly states, among other mat- tion of securities on the national
ters, that the mining claims which securities exchanges and the filing
had been owned by the
promoter, of annual and semi-annual reports
though of unknown value, were by listed companies. If the analyduly transferred to the issuing sls of these documents discloses
company in consideration of $100,inaccurate or misleading repre-
pany
000
v
cash and
in
an
that
claims
the
the
to
arbitrarily
n-
As-
option to buy,
iesa ofWthe tympany
states
c
sales
ItF further
price
company
of
had
^ determined
the
been
absent
^'■-■■■
The Commission in the
Legislative Area
In the legislative area the Com«
securities,
the Comenergetically
inof its inspection
«
'
brief
of
review
the '
sf"t«tions, the Commission might
cSs" of fhe'^pany' or"
function
theRegistrant
correcT reportl
through a mandatory
action
compel
to
file
or prosecute
,irrAnrt.„
%
' .
. pr°secute
the wrongdoer for criminal fraud.
perhaps realized the complexity
and difficulty of the task assigned
to the Securities and Exchange
Commission. Operating within the
framework of the full disclosure
philosophy, its power to protect
the public from inequitable deals
is
severely
and,
in
opinion,
my
The investing public must learn to guard
itself from the alluring gimmicks
and sweet talk of the hoods and
stockateers. If, however, the registration and other filing requirements of the securities acts are
quite
properly
limited.
strictly enforced—and the Commission is trying to execute them
with
increasing
vigor—and
if
crooked promoters and dishonest
broker - dealers' salesmen are
promptly tracked down by a vigilant Commission, the confidence
of American investors in the securities markets will be sustained
and the enormous flow of capital
into the legitimate industries of
con- an
expanding
and prospering
mission is empowered to make
rules to implement the purposes
of the statutes which it adminis-
during the past year. To ters.
The Commission is
certain areas, such as Denver, Salt stantly reviewing its rules with America will continue. r ;
Lake City and Fort Worth, where the view to strengthening its enthere has been unusual activity in forcement activities. For example,
to
Allen & Company Adds
]0w-priced, speculative stocks and in order to secure the power to
many
broker - dealers have re- inspect the books and records of
Edw. Patterson to Staff
cently become registered with the Canadian brokers and dealers who
.
Commission, special task forces of are registered with the CommisEdward Patterson is now assoinspectors have been dispatched, sion, a rule has been proposed, ?lat(;d wltb jrbf lnvestment ba*J ~
In the fiscal year 1956, which has
but not yet adopted, requiring }£g /"V?
v" ? rsi'v if
iust ended, the Commission com- every non-resident broker-dealer
just ended, the Commission com- everv non-resident broker-dealer ptreet, JNew- xorK i^uy,
,
pleted more broker-dealer inspec- to maintain in the United States been announced,
tions than in any year since 1942, complete
and current copies of
and even more are expected to the prescribed books and records,
Fflwawlc & Hanlv to
be made during the current fiscal unless a written undertaking to
^ u
p.
, ! '
0
t
year.
produce copies upon demand ris
Open rlusning iSrancil
Misconceptions 0":
filed with the Commission.
FLUSHING, N. Y.-The sixth
program
afcon-
a
criminal action
malpractice^ in
from
of
creased the tempo
yolves corporate mergers where
proc-'\J.ur^es °* tbe surviving corpora-
of offering material,
filing bv a
>*aiu
t
under Regulation A.
essing
sale
mission, has
'^ 0
f merged*corextent
and p
H + primarily for the purpose
forded to the public by the
pubiic
the
f"ara~!?,f«!Ll° 5..^,C1^ra e.
°
lnvestm/ Publlc would be corporation ar% dlstnbute<M° tbe
rairly treated.
To
or
instituted.. Believing that care-
supervision of broker-dealer
practices is essential to protect
most immediately in reselling the
securities to the public—-often at
a higher price.
civii
or
securities acts also requires the
efficient use of its quasi-legislative and quasi-judicial powers.
ful
of .sepurities, the investment letter, they engage al-
*p<?\u f
fact
mitted
of interstate commerce. Another
ruse is to limit the sales to a small
persons
this
Commission's enforcement powers
and its techniques in regulating
Profits and *n agency transactions, a market, but in the securities the securities markets, you have
1
device
on
How-
there is undoubtedly too
much irresponsible tipping and
rumor mongering.
Free speech is
the privilege of Americans and
differences of opinion may make
ever,
are
ers>
designed to avoid the
curities acts.
a
torg
The ingenuity of unscrupulous
promoters and of the fringe element in the securities industry,
however, has fostered a variety
£Ures,,coPtamed in the prospectus for effecting
or
Devices
which
ajs0
ures used by the Commission.
Disclosur
business
a
handling of other
pie»s money and property.
inspections, however, are
catches most,
misleading
of
voives the
the essential facts disclosure requirements of the se-
1S< 1H~°£me5^ of
the
of
which
all,
conduct
enforcement work more effective ^
by eliminating or minimizing var¬
ious technical problems that arise
well as up.
,
The Commission watches carefully for evidences of possible manipulation. Price movements, not
only on the national securities exchanges but also in the over-thecounter market, are observed by
our market surveillance unit and
our
regional offices.
Where a
movement is observed for which
there is no readily available explanation, an investigation may be
instituted to ascertain the reasons
and the identities and activities of
persons concerned. Although some
cases may slip by our investigators, there does not appear to be
a
significant amount of illegal
delivery of confirmations and of
prospectuses, where required, ob-
number of tech-
signed to make the Commission's
as
rent books and records, the prompt
the. Commission
a
nical amendments to the securi- ties acts. These proposals are de- '
clearly that investing in securities
is not a one-way street to riches
and that
stocks can go down
practices in the in-
requirements for registranew issues of securities not
The
tion of
sponsored by.
of the Commismaking periodic inspec-
applicable legal requirements, and,
Thursday, July 26, 1956
which contains
program
and orcieriy
^ustry
and
the disclosure of
are
;
>
*bey simply think it is a good insion for
vestment, there is no illegal mations of
brokers and dealers is nipulation even if their buying
another basic technique used to forces the price up. If it subseenforce the securities acts. These Quently goes down again, invesinspections have two basic pur- tors wbo bought for the rise may
poses; first, to determine whether suffer losses, but, absent fraud or
or not broker-dealers are conduct- misrepresentation, this type of acing their business in accordance tivity is 3ust the normal working
with the regulations of the Com- of a free market. Incidentally, it
mjssion that are designed to in- is always advisable for the secusure compliance with established rities industry to warn investors
The
i
brought
case
Commission.
..„
securities acts
nro-
nofo^ fraufbut also ma-
™P^ation of the trading markets
resulting in sudden and unreasonable fluctuations in the prices of
In
carrying
out
its
quasi-ju- branch office of the Long Island
^cial responsibilities the Com- investment brokerage firm of Edmission sits as a court of .law As wards & Hanly will be opened m
a practical matter because it is Flushing Queens on Sept. 15,
impossible for the Commission, as Herbert Edwards managing part-
Th
_j •
th f mar_ a body, to take evidence in all ner, has announced.
The new opme iaeai is mat mar
conducted in manv parts of oration
will
occuov
street level
ket pnces shall be determined by c,ases conducted in many parts or eration win occupy streei levei
L„vor
+K.
j: 1
1 ?. caretui
1 case> me commission ^ f
iudement of buvers and the country at the same time, the quarters m the modern Sanfordte hp hP»viW iTi.
Ft. Ip^rftiL pmP y Fm hstJ,ng SPllers in an honest and unma- evidentiary record examiners The Main staees of construction in the
is made before
Shopping Center now
to be heavily loaded in P appea5
favor of its securities on an exchange be- f. ia an nonest ana unma
hearing
final
the promoter and against
prospeccause it was unable to support its niP"lated market. There are, how- FF1 f, then hrifferi
a^eued
construe
.
arms-length
ormc
u
Commission
and
tive
the
to
purchasers.
unfairness
hidden
the
«
bargaining.
f-om
sesses
no
the
S?
m
To
the
careful
However,
the dekl
is
investo-
u'ndpr
the
limitations
philosophy
of
the
since
In
a
recent
case
claims regarding
the
reserves,
ever,
the
not
the
Similarl,y..in the processing of authority in
prevent
thP
_
A
f
'
claims.
If
hp
If the
misconceptions
of
the
this
as
to
case
1S tnen
Drieiea
and
proceedings
before the Commission itself, and
The Com-
the Commission makes its findings
area.
to
prevent
its
Join Wilson &
(Special to The Financial
SAN
Bayley
Chronicle)
DIEGO, Calif.—Arthur S.
Robert
E.
Wilson
the pQblic interest to revoke or McArthur and
price
is
particular market price is too deny the registration of a broker- have joined thj staff of Wilson &
too ucll-v lllc icgiauanun kjx. a uiunti- nave jomea the
high or too low.
Furthermore
dealer or to make permanent a Bayley. Mr. McArthur was fornot every practice which causes suspension
order issued under merly with Waddell & Reed, Inc.
the price of a security to move RegulaTion A would be decided
suddenly or unreasonably consti-^n the basis of the record made in
Allen Inv. Co. Adds
curities. or, to
tutds
illegal
determine
that
manipulation.
a,
Such
*he
evidentiary
hearing
and
of
(Special to The Financial Chronicle)
nfeodmoJL?oewbe^atev,*?liSStaternpnt use> The power of the Commis- illegitimate devices as wash sales the briefs and oral argument be*?Ct
processing sion to restrain the use of proxies matched orders, or running Up the fore the Commission.
DENVER, Colo.—Milton F. Hoistantly preven^the^fferin!? frorn
obta^n^(? through fraudulent and price in order to unload at a profit A discussion of the present en- jj-p.up.j i,as been added to the
being mR Stp?w itf nS
misleading statements by the con- are, of course, proscribed in the forcement activities of the Com- Imgshead has been added to te
temporarilv dpnvinp
fesfants ln a fight for corporate statute. But if a man, or a group mission would be incomplete with- staff °f Allen Investment Com3
de ymg the exemp- control
recently upheld in an of
tho
PYPmn
was
r
arguea
Commission's
•
lng statements regarding matters
being made
°
™ted
meetings °f
shareholders. If the person filing
t
promate^ such material insists on using it
1 had.had in deficient form, the Commission
pLmiceJnn discov-, would promptly institute injuncCommission "?inmS
tive
authority to
offering from
some
extent
disclosure £r°Xy sollcltinS material, the mission does not, of course, have of fact and conclusions of law.
Commission pos- ?om5T1flon ma-V detect mislead- authority to set the prices of se- The Question of whether it is in
of
.
Commission
ore
securities
.
men,
commence
buying
a
par-
out
referring
briefly
to
the
bill pany, Mile High Center.
.
H
Volu^tie 184
Number 5554-. ...'The Commercial and Financial Chronicle
(399)
23
months of last year was bolstered
by
tax
a
credit
equivalent to
11
cents per share.
In fact, Jhe $2.97
per common share shown for the
1955
year
only be¬
of a credit amounting to 59
per
share on account of
back of losses of subsidiar¬
cause
*
By GERALD D. MtKEEVER
cents
carry
Erie Railroad
ies
instead
the
We reviewed
Erie RR.
the
last
tion in the cost ratio has been due
January in the light of the official
to
forecast of
rev-
normal
amount
to be
money,
especially by mechaniza-
8% increase in
an
aside from what
enues
was
the
obtained from the freight rate increase or from the passenger fare
tion
increase
to
cost
months
later.
be
suggest that
have
been
side.
the
granted some
two
thus
far
Results
this
prediction
the
gain
The
on
in
may
conservative
for
revenues
first five months of this year
13.5%
was
no-benefit
from
increase
rate
though there
even
the
until
6%
was
freight
March
road's
ability
to
do
the
work
of
for
less
Federal
duced
from
$4,200 to $2,200 per
tamping from $1,950 to
mile and
$1,300
per
crease
in
mile
despite
in
wages
the
the
in-
last
sev-
eral years. Also, the new Meadville car shop is expected to save
both time and money on car re-
on the inclusion of .$9 million annual revenue
year
that had been expected to be derived from full-time operation of
Most
spectacular
move
for virtual abandonment of
more
the road has taken
steps
to
or
radical
bring
of
it
down.
these
is
the
the
new
Ford
Motor
assembly
plant at Mahwah, N. J. This estimate, however, is likely to turn
out to be temporarily on the high
side due to the cut-back in motor
due
estimate
at
facilities
Hoboken.
tion will
be
the
Not
from
the
Erie ferry, and
ms
for
of
revenues
each
solidation
hand, the gap has been closed by
minal
unexpectedly large
million
from
revenues
sources,1„ notably from
the
production in
the Youngstown area prior to the
July 1 shutdown.
A prolonged
steel strike could, of course, upset
of
the total
the
facilities
sav-
the
con-
be
about
$1
apiecb—that
annuallv
Investors.
is,
high
of
rate
outlook for the year
revenue
since ore,
steel
iron and steel together
for
account
about
14%
of
the
road's revenue, based on 1955 fig-
Also, coal and
ures.
much
coke,
road.
This joint passen-.
terminal;
ger
plan
received
the
Public
July
passed
Utility
17
Commissioners
has to be
but
Still
Subject
to the latter, it is expected to be
placed in effect this vear at the
of which must have found its way
cost
Into steel-making,
another 8%.
will be shared by both roads.
-
For the
for
accounted
The
past five
particu-
years
larly the road's management has
been
acutely
substandard
and
its
traffic
of which
much
the
to
of
the
of
conscious
trend
revenues,
ascribed
steep drop in
is
an-
t^acite c o a 1 movement. This
skidded from 78,115 cars in 1946
to
; 16,587
cars last year for the
Erie, and
revenues
from
this
source
have declined from $10.1
million
to
$3 million in the
period.; The
this
loss
business
index
of
is
of
same
of
much
so
reflected
the
in
only
102 for Erie revbased on the 1947-49 aver-
enues,
against 107 for the Eastern
age, as
District
and
for
113
of
the
aTAJahv^ah ^nd
Class
I
about
Erie
$2
has
million
already
which
on
;
•
expected
those
of
be consolidated
to
the Lackawanna
labourletMls^anbe
as
out,
and
praties
perishable
in
New
consolidated
York
Pennsylvania RR?
^ust.
worked
terminal
with
are
soon
have
those
opbeen
since Jast
Au-
what the Erie also needs to
cut
transportation
stsrtial
further
is
costs
sub-
installation
of
the^^her CTC
June
Florida
of
investment.
(Special to The Financial Chronicle)
DENVER,
„
.
Colo.
,
T
—
ury
be
of
revenue
a
month
a
these
,
or
two
factor
two.
in
the
plant
major
course
In addition to
tions, the Erie located
acquisi-
74 smaller
Pla"f"°\its H.nes source
*n
in
1954. Another
of added
which the Erie sets
great store is "piggy - back" in
which a gain of 150% is expected
by
revenue
b
this
for
The road
vear.
now
first time it is
the
basis
petitive
carrier.
the
with
feels that
on
a
com¬
highway
the
been
ouest
no
less
for
new
vigorous than
business, the
effects have not been
discern¬
as
ible except as to maintenance. Eor
some
250
miles
of
basis
meai
generaj
in
between
road
ponv^^sion will be
on
renewal
with
and
a
track
.
i
.
...
ratios
this
in
reduction
ypar
it
in
first
the
months
did
five
vears
the
Erie
has
kept its
maintenance cost ratio under 30%
roads
have
what
which
very
been
so
unable
cost
many
to
.,
,
,
,
ALvan/1^
|-
in
gross
result
the
Erie
As
revenues.
showed
the
a
verv
increase in net to $1.22
Per common share as against 92
this figure in
cf"ts /°,r„'h? corresponding pebut what is of equal
in
1954.
significance
is
so
in that year is
earnings
sounder.
on
the
and
average,
well
under
recent vears except
That the road did hot do
avowed
policy
indicative of its
of
not
reducing
maintenance whenever there
slump
in
the road
ferred
revenues.
As
a
states that it has
maintenance.
The
is
months
accrued
this
that
of this
Federal
de¬
reduc-
amounting
mon
per
share
to
45
year
taxes
the Erie
on
cents
whereas
year's
In the first
a
result,
no
five
are
the
and
V
fluctuating somewhat, has also been
which
is available for the most liquid
Funds continue to flow into the shortest
,
refunding of the Government have been invested in Treas¬
Money is tight as far as some sections of the short-term
bills.
other
segments
;
have
to
appear
•
a
•
■
,
Thin Markets for all Bonds
Even
new
i
though swaps are being made to take up some of the
offering of securities which are being brought out, these
exchanges
have
nqt
been
too
sizable
stricted nature of the market for both
Two With H. L. Jamieson
ment securities.
(Special to The Financial Chronicle)
effect
SAN DIEGO, Calif.—Alexander
on
because
the
of
very
the corporate and
re¬
Govern¬
The tight money policy has had a very noticeable
the market action of the outstanding issues since there is
definite lack of interest in many of these obligations. This
has reduced the marketability of these securities to a point where
bids are not available in many issues, and even when bids are
a
Bier and Kenneth V. Spivey are
"ow oYil tp r>
Jamieson Co*»
*nc,> 2114 E. Cajon Boulevard.
very
around, they are not large enough to take more than a handful of
j
securities.
^
With
Wagenseller Durst
This absence of
DIEGO,
Choate
has
nas
Calif.—James
is
Building. He was formerly with
California Investors.
I
: ■
-
only
the near-term obligations, there
a very
'<
certain of the more seasoned obligations.
?X';.Inflation Psychology Spreading
inflation
The
mentum and is
psychology
which
to
seems
'
gaining
be
mo¬
being expressed in the action of the common stock
market, in the opinion of not a few money market specialists, does
Clarence A.
—
first evident in non-Gov¬
thin and limited one for most of the other Treasury
obligations. The better yield which is available in the new issue
of securities is a very important reason for the lack of interest int
(Special to The Financial Chronicle)
BOSTON, Mass.
was
to have spread to the market for Treasury
securities recently and, aside from
R.
associated
assuciaieu
become
uecume
interest, which
ernment issues, appears
(Special to The Financial Chronicle)
SAN
now affiliated with Lee
Higginson Corporation, 50 Federal
not
bode
and
well
for
market
all
for
the
bond
Government
other fixed
income
market
as
The
securities.
well
higher
the
as
wages
higher prices which will undoubtedly result from the settle¬
ment of the steel strike are some of the ingredients that
J. P. Marto Adds
important in the development of this inflation fear.
conditions,
BOSTON, Mass.—Giovanni Formichella
staff
has
of
Federal
J.
added
been
P.
Marto
&
the
to
Co.,
money
are
very
Under such
income
per
com¬
92
cents
share result for the first five
cannot
the
pressure
the
to be taken off
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
is
now
connected
with
Merrill
Lynch, Pierce, Fenner
Beane, 18 Milk Street.
STOCKTON, Calif.—Barbara B.
is now with Reynolds
Nikcevich
&
Co., 301 East Weber Avenue.
&
With Greenberg, Strong
(Special to The Financial
Joins
Manley Bennett
(Special to The Financial Chronicle)
DETROIT,
has
Manley
Building,
Mich.—Thatcher W.
become
Bennett
connected
Co.,
&
members
of
the
With K. L. Provost
With Reynolds & Co.
BOSTON, Mass.—Paul V. Dus-
Root
expect
30
With Merrill Lj^nch Co.
sossoit
one
market by the powers that be.
Street.
do,
is to bring down to net a
substantial part of the in¬
crease
up
X
.
able to make
was
other
each
.
of this need.
The $250,000,000 which was just obtained
through, the flotation of bonds by this concern has also had am
influence qn the long-term bond market, because there have been^
switches out of outstanding obligations in order to make payments
for the new offering.
Other corporate and municipal offerings
have also been paid for, in some measure, by switches from older
issues, particularly those with low coupons. Tax losses are being
taken in the securities which are being sold.
(Special to The Financial Chronicle)
minor
'
dence
Street,
a
demand
follow
by the American Telephone and
Telegraph Company that $575,000,000 of new money will be ob¬
tained through the sale of common stock this fall is another evi¬
™nry Alexandre, Jr.
y^rd question may find some soiution
in
the pending
study of
Blif£alo <yards with
the LackaWhile the Erie
rate, although
the
rates
;.yX,. ...7-
The demand for money for capital purposes seems to show no
Fisher is
only
bill
J. Henry Alexandre, Jr., special
replacement program, at least according to present thinking. The
wanna
instituted
let-up, and the announcement
Eayley, Jr., has been added to
staff of Ha71llJ.on Management
corporation, 44D Oram btreet.
niece=-
a
connection
road
■
While efforts to reduce expenses
have
on
was
Telephone Issues Underscore Capital Demand
With Lee Higginson
? 1S ex.pefte^f
Body protect will start to
similar amount which
these
:
is concerned, while
plentiful supply of funds.
C.
Marion, Ohio, and Hammond. Ind.,
tr-at
Fisher
\ '
market
•
,
Walter
be
tho
Normally
.
recent
Hamilton Mgement. Adds
rphnilri
of
flt
a
other hand,
the rate or yield on commercial
being moved down y8 of 1% on the following day (last
Friday), due to the large demand which was around for this kind.
ATLANTA, Ga.—Harry Lahman
with Wagenseller & Durst, Inc.,
San Diego Trust and Savings'
nlant
X
;
the
of
Treasury securities because those of corporations, as well as the
proceeds from the sales of non-Government issues, are being put
to work on a temporary basis in these obligations.
Also, it is
reported that a large amount of the sizable cash-ins from the
;
t0
elimination of
second track, and probably most
needed is yard modernization. The
road bas a "mastpr plan" for CTC
TRodi
On the
18.
Government obligation.
Mansfilld £
th^ rSrl'c
«frAnnnn? ImS L .rebuild
strenuous
campaignto
rJafvt
operation
Treasury was just closing"
short-term money market started to display divergent
The rate for bankers acceptances was increased lfe of
1%,
The
;
the
of
refunding
reflecting
with
as
;
Divergent Rate Trends
down.
mira and Binghamton, N. Y., and partner in W. E. Burnet & Co.,
preSently under study is the joint New York City, passed away suduse
Gf duplicative double track denly at the age of 72.
jjne
between
Binghampton and
op-
1
paper was
is now with J. C. Bradford & Co.,
William-Oliver Building,
consoli-
Corning. The rood's towing
erations in New York Harbor
-
(Special to The Financial Chronicle)
dated
freight
house
operations
wjth the Lackawanna at both El-
policy. Competition from non-Government
much in evidence as far as Government
very
which offset the decrease of
With J. C. Bradford & Co.
the ICC.
bv
uoon
as
the
trends.
sanction of the New Jersev Board
on
future
concerned.
are
The
"C'--;'vv-
reduction of the annual passenger service deficit by this amount
for each
bonds
when
Inc., 51-53 East Robin-
Avenue
son
First
upon
,
ORLANDO, Fla. —Maynard A.
with
is
offering of
steel, picture continues to be important to the moneythe terms of its settlement will have a marked in¬
fluence
*
First Florida Adds
now
securities
and
^investments is still
(Special to The Financial Chronicle!
's
Government
same
The
preciation than in the yield of
ovfr 7% that the $1.50 dividend
rate on this stock produces at the
Present market. However, confldence inspired by the realistic
approaches to the solution of the
road s problems that have been
made ™ay ultimately find greater
reward than merely an outsize
ra e of return-
Traviss
short-term
despite the prospects of the weekly
The monetary authorities, however, are still
following
policies which have been in effect and no important
changes are indicated at this time.
V
,
the
market
ter-
passenger
will
of
for
demand
ever,
defensive.
deferral
ment are meeting with success,
Erie common will probably continue to try the patience of those
who are more interested in ap-
least
as
fear, along with the large
demand for long-term funds, is keeping the money market on the
Until there is greater evidence
that the efforts of the manage-
a
the
the
from
road
of
the
at
abandonment
has been placed at $6
for
1956.
On
the other
million
other
train
passenger
uncer¬
bills being increased, and it js believed it will continue that
way in
the foreseeable future.
The inflation
amortization
will
about 97 cents per
to
the
sizable
share.
of the benefits of this joint
opera-
source
Unless
fast
to
amount
Jersey City terminal in favor of
joint use of the Lackawanna terminal
result,
considerable
with
even
though the refunding operation has been completed
and the Treasury must obtain new money in the near future. As a
greatly upset by the Steel strike,
this year's earnings are expected
to be around $3.25 per share, and
of the fact that the tax
way
ably based largely
latest
account.
Governments
on
market is still clouded
money
tainty,
in
re-
of
■ •
this
tax
item
reballasting has been
of
for
Reporter
By JOHN T. CHIPPENDALE, JR.
The
as-'indicated above, will be much
more "solid" than those of the
past two years. This is in spite
maintenance
this,
7,
production this year, since the
charge
a
the
In
and pairs.
iX.
the
passenger
fare
increase,
a
Qn the other hand
trancnnrtn
relatively minor matter for the ti0n costs have contiAued
to be a
Erie anyway, did not come until
baffling problem. Despite dieseliMay 1.
'-v.;
zation- the
road's
transportation
The projected 8% increase fig- ratio has climbed to the
unseemly
tired at $13 million and was prob- level of 44% but within the
past
ear
of
instance,
its
of
work.
Our
achieved
was
with
Buhl
New
York and Detroit Stock Exchanges.
(Special to The Financial Chronicle)
*
SANTA
of
of
Connell, Inc.
Denver
and
Robert
L.
K.
Provost,
325
W.
staff-
Northt
Frank Bode Opens
DENVER,
Securities
Calif.—John
Broadway.
Chronicle)
Colo.—Mrs. Flora B.
Kean
has
joined
the
staff
of
Greenberg,
Strong & Co., First
National
Bank
Building.
Mrs.
Kean
was
formerly
with
First
ANA,
Soden has been added to the
(Special to The Financial
PASADENA, Calif.
Bode
is
engaging
business from
wood
Drive.
in
Chronicle)
—
Frank H.
a
securities
offices at 310 Elm-^
»
The Commercial and Financial Chronicle
24
'
V
5
the "down stairs") and we inventory
relates his estate, we find the darnedest
collection of so-called securities
to the trust powers of National
that
you
can
possibly imagine!
Banks, under Section 6 Subpara¬
Our first job in those cases, then,
graph F, which states "Every Na¬
tional
Bank
shall
conform
to is to "put the house in order" for
purpose
of conforming not
sound principles in the operations the
only to the law and regulations,
of its Trust Department."
Federal Reserve System as
Viewpoint in
Trust Investors'
Managing Individual Accounts
and is not willing to recognize
so-called modern times.
age
our
;
While
we
seek aggressive man¬
mand
with result¬
during the war years,
practically concurrent
rises in stock
market levels, it
would definitely seem advisable
at this stage of the game, when
the road ahead is certainly not as
clear as it was two or three years
ago, to take steps to upgrade port¬
folios, having two primary objec¬
aggressive and takes
too
many
chances with money
borrowed from the investing pub¬
lic—there is a fine line of distinc¬
excessively
aggressive manage¬
ment and speculative management
tives in mind.
».
and we only hope that as we re¬
CD if we get a correction, or
search individual companies and
or
call it what you
discuss those companies with other recession,
the lesser quality issues
investment people, we can sepa¬ want,
tion
between
,
have
rate the two types.
We have
a
decided preference
to decline more
tendency
a
steeply and the high quality issues
generally are more resistant to
declines. Further, the higher qual¬
for
those corporations
which have ac¬
tive research departments — we
also have a preference for those
ity issues have always exhibited
a tendency to snap back faster be¬
corporations which are diversified
cause
they represent companies
not only as to the products in¬
which have aggressive manage¬
volved, but in horizontal and ver¬
ment and sound financial policies,
tical operations.
and have the capital to weather
Frankly, because of our position
banks are in the same
all
and
—
position—we can and do use only
representa¬
those issues which are
tive
of
which
companies
have
growth in both gross and net in¬
come, those issues which have a
longevity record of dividend pay¬
of
issues
and
those
com¬
which are properly fi¬
and properly capitalized.
We are not too happy with utility
companies, for example, which are
heavy in bonds and light in equity
issues (say 65% - 35% ratio) be¬
cause while we recognize that the
trading on the equity can be very
profitable to the common stock¬
holders if operations are success¬
ful, it must also be recognized that
if the operations are unsuccessful,
the loss, or less income, to the
panies
nanced
We
with
look
not
do
industrial
favor
on
companies which
of fixed debt
companies
which have a large volume of de¬
benture issues outstanding, which
do not have a fixed sinking fund
have
high
a
ratio
industrial
those
nor
sufficient,
requirement,
to
retire
of
the
at
least,
substantial percentage
a
tion.
to
I
stockholders
is
clear—those
companies
which have maintained a quality
position have been the companies
have
which
survived
the
worst
depression in the history of time
and two world wide
ically,
Specif¬
wars.
have liked such issues
as Allied Chemical and Dye (divi¬
dends
paid
since
1921);
Corn
Products
(dividends paid since
1920); General Motors (dividends
since 1915); Pittsburgh Plate
we
Glass (dividends since 1899); Con-solidated
Edison
of
New
York
emphasize
should
with
to
others. As
1919); and
as
bonds
many
concerned,
are
definitely,
also, have
preference for quality.
we
decided
a
rule" and in
Act, Section 46, there
quite
that
are
we
field
which
are
others in this
have
do
good
some
ideas from time to time. We check
thoughts with, for instance,
periodically published list of
"Favorite 50," with Moody's In¬
vestors
Service,
with
Standard
our
the
and
Poor's, through periodical per¬
visits
York
conferences with
and
Banks,
Chicago
and
just
as much
customers.
need
you
as
us
as
V
.
Also, briefly, we are constantly
watching the relationship of bond
vs.
stock yields, the action of the
We, like
you,
study the published thoughts of
the
Treasury officials and last,
but by no means the least, the
thoughts and suggestions that are
made by our examining and
supervisory authorities.
Portfolios
It
would appear, generally
speaking, that, from an economic
standpoint, we could be at a tem¬
porary top of a business cycle and
we could be expecting a recession
your
or
We turn
of
our
now
to the third factor
and
moral
require¬
ments.
haps first and foremost point out
that we have two legal factors to
be taken into consideration. First,
of course,
is the legal require¬
ments
as
in
established under the
na¬
In
our
of in¬
which
do
not
least
forget—we don't—that
once
aminers
a
visit
trust
review
and
us
actions,
investments,
ment
the
year
income
Spendthrift Clause
at
ciary
ex¬
our
to
funds now, will want to
secure
pledge his or her-expected future
interest in an estate with a lender
as
commercial banks, insurance com¬
panies, individuals, and others.
The
foregoing
legal
phrases
pointed out that we should oper¬
ate as
"a man of prudence"—it
be
exceedingly helpful to
us-if you
as
individuals would
sometime
define to
me
specifi¬
cally what is a man of prudence!
has
not
defined
been
err
we
more
legally,
probably
the
in
did
thrift
clause'
the
"A Man of Prudence"
would
which
> when the
con¬
not
death
of
have
that
consequently
terminated, due to
th?
income
direction
than
and
our
bank
as
will
the
discussing
however, that his ideas
with
are
interest rate of 8%; was involved!
have
we
certain
Sometimes
us,
along
conservatism, properly
in the future.
the
wording
created
is
what
with
-be
second, the legal requirements
and
the
$403
billion
Gross
National
We will all
admit, quite
that the stock
market has come a long long way
from, say, the levels of 10 years
ago—Yes—even three years ago.
am
sure,
Thus, where the past 10 years,
business-wise, have been devoted
established
by
*
the
as
instrument
which actually created the trust.
At
the
tailed,
want
to
risk
but
of being too
believing
that
specific
refer
you
data,
to
I
would
de¬
you
like
Regulation F
of
yet provide
come
to
his
satisfactory in¬
family.
In
other
a
words, he is looking to
us
to "keep
sound
"The
stairs"
or
the
it
would
I
Trustees
named
not
in
want
'
Will
'
to dispose of stocks and securities
;
except as a result of the sound
discretion and judgment of my
Trustees
uninfluenced
by
the
:
fear
that
my
beneficiary
some
'
>
or
i
some court might undertake to
hold them responsible for losses
v
;
*
'
■
i
M
?®yel°P £hat losses *!aye *een sus" "
me.
X PurP°se 1S J? leave my '
Trustees free to use their sound
discretion with respect to all such
"natters, and if my Trustees have <
Y1 g0°
i!
^rf /e
them of any possible liability for -.
errors °f judgment, regardless of
any technical rules of law that
™
i-
Binding Non-Diversified
Other
times
we
Trust
accounts
have
that consist solely of one < form
asset and in the interests of ?
conservatism -and good managemerit, we would like to diversify '
the investments—in one case in ?
our files, we have ; an account :
^a $150,006 >, account) which is r
J00% in Humble Oil — granted;
fully that this is a good company, ■
anc* granted further that it has *
acted, rnarket wise, most favor- v
fkly since the creation of the
trust, nevertheless, we did express
to the beneficiaries_ our thoughts
*
that some of the Humble stock
be disposed of and the pro- ;
P*30^ in
sfc"ri*ies r
.would
their
take any other steps nec- to make sure we followed •
wishes—naturally, we went:
After
to court.
court came
cision
considerable dis-*
with
up
a
follows:
as
"That
a
the-court
in
cussion
the
room,
the-
formal de-
-
.'
sole Trustee'
bank as
of the Estate is
be
hereby
following:
may
be necessary to pay spe-
Lnn nnpfc
ni-Pi/i
welfare,
bank
interest
the
of
Trust, to
t"\oxr
1
Oil
it,
state
support,
of
the
maintenance,'
benefici-
three
designated; specifically, the r
aries
often
fn
inheritance
Taxes, expenses of administration,
and
to
provHe for the general
and
Estate
given
as
I
bequests/ to "pay 7 Federal
ciflc
exercised by- sell
the?" best
beneficiaries" of
do the
as
authority
powers,
to be
in the Trustee's judg-
for
hereby authorized, >
sell Humble Oil and Refining,
education
is
Trustee
may,
instru-
an
the Trustee whenever and
ment
be / "up
considered
operations—for
files.
following
as
it
our
and discretion
Subsequently,
gentlemen
goes
(whether
may
investment
ment in
his estate out of trouble."
when the good
to
his - reward
the
underjwhich a trust is
considerably at variance
instance, I quote from
dren, and rather specifically stat¬
of
instrument
ing in conference with us, that he
is looking to us to keep the invest¬
ments relatively "clean and pure,"
Product.
Nevertheless,
:
.
to
sometime
currently the supervisory authori¬
ties
(the trust examiners)
and
readily I
re¬
es¬
of business activity
to
from
trust
essary
Legally,
at the rate of around $400 billion
present level
correction
with
as
retaining
classes of stocks.
of the
claim
The
$5,000!
the
executor
trustee,
the lines of
and
look
sometimes
on
some
comparable quality and having ■
comparable growth chardrtmsfacs. rlender of the fur(ds had been duly
The beneficiaries advised that if
recorded with us,' and we could do
we wanted to do that, they would v
nothing except pay the amount :Pr°ceed, under the law, to force
due to the lender—incidentally an-us
retain Humble, intact, and
about
I
his
tablish
in
courts
'
A
informed
been
he had actually spent all but
man,
providing for his widow and chil¬
a
benefi-
sponsibilities that* .preclude our
purchases of issues .that may not
quite measure up to high stand¬
We have a rather strange posi¬
ards, even though there would be
tion in life—many, many times a
possibilities of appreciation which
so-called
conservative
business¬
the
family
would
welcome, at
man
will create
servative
unconservative.
revenue
other prop-
ciary, and we Were to distribute -should
about $50,000 td the remainder-c cee
Federal Reserve System, and con¬
least
spend-
and
trust
tional banking act, the regulations
of the Board of Governors of the
at
in order
remainderman,
or
benefi-
residual
of funds—in ordefrto stop dissipaObviously, from the foregoing, tion of that kind, there is usually
you can readily appreciate that we a spendthrift clause in trust insimply are not in the business of struments today which specifically
furnishing entrepreneur capital or prohibits pledging or hypothecatnew business capital, as that type
ing future interests.
We have a
of
funds
must
be
supplied by case in
our
Trust
Department
such
have
I
.
disfavor
A
policy.
other classes of investors,
/
assets
or
might otherwise control."
the
or
or
>
/
Sometimes the
invest¬
and
either
of
out
principal.
Please
involved.
are
permits the trustee, in its
funds
long as they are willing—and
financially able — to accept the
which
however,
provide,
discretion, to advance the needed
as
risks
to
unusual, but necessary, needs
larger sums of money than
might be normally provided on a
specific/ periodic basis, trust instruments
today have a clause
content,
invest to their hearts'
order
for
are
we
fields
The family, as
for
possibly many of
customers, who can speculate
will tend to
operations, which is legal,
instrument
directions,
and in the meantime
Requirements
wishes
than
vestment
It
Legal, Instrument and Moral
and
limited
more
monetary authorities, arid specif¬
ically the Federal Reserve Open
Market Committee.
buffer
immediately see,
by National and State laws, regu¬
lations
surviv-
or
such
in
"
files—
hand from
on
from error of judgment with respect to such matters . . . fully
realizing that losses may possibly
result from the "exercise of discretion herein given my Trustees,
and trustee,, we serve as a I hereby expressly relieve them
and further carry out the from any and all liability for any
of the deceased.
and all such losses if it should
ecutor
can
you
that
our
:
t
well know, usually is in a distraught nervous condition due to
the circumstances of death, and is
in
no
real position
to appraise
values.
Thus, if we are the ex-
funds, con¬
sidering
probable
inconte
therefrom as well as the probable
safety of their capital."
As
the widow
to
on
you
their
of
the
'
their judgment may die-
as
.
the
upon
bleed them white.
fairs, not in regard to speculation
but in-regard to the-permanent
disposition
form,
sarpe
ing family and begin to literally
shall exercise the
trustee
(in the
cases,
many
leech
this direction—
"The
That provider now no
the death
of the provider, friends and relathe
lives
(and let's be frank about
the
this, greedy friends and relatives)
have
we
initial and substantial pro-
longer exists
at least).
In
man
Texas Trust
is
In this connection I should per¬
Need to Upgrade
Texas
in
Here
"prudent
my
that there
nize
(dividends
since
of
safety
beneficiaries."
the
of
ments
original statement
that there is simply no one road
to travel and we honestly recog¬
(dividends since 1885); Consumers
(dividends
since
1913);
far
tate
principal alone to the disregard of
reasonable
income require¬
others —this goes
of
those
back
Power
Pacific Gas & Electric
with
content
be
erties
vider there.
time
to
bearing securities
cally provided. In either event, it
should be recognized that there
was an
instrument in
invest funds
time
additional cash had to be periodi-
should
trustee
a
additional
for
the
constantly checking our own ideas
sonal
maturity.
common
However,
j
the husband and father
cash.
Other times,
call upon
governed by con¬
of prin¬
gairi through specula¬
of unusual
Quality Position
and other banks which have prob¬
probably should have men¬ lems similar to ours, and with
tioned, at the outset, that quality brokers, dealers, and investment
is a paramount factor. The history bankers.
of expansion of industries in this
We fully recognize we need you
country, with the resultant bene- to
supply ideas and specific issues,
quite
«To
cipal and dependability of income
and not by hope or expectation
I
fits
be
siderations of the safety
our
New
issues by
shall
latter
broad investment
concluding this phase,
generally,
policy. In
"(b) To take possession of, manage,
another
.
discussed,
have
I
working
order.
enough that they have not had to
the
trustees,
the
ment, which will include active judgment and care under the cir¬
research, have the best chances of cumstances then prevailing, which
men of ordinary prudence, discre¬
successful survival.
\
>
tion and intelligence exercise in
Checking With Outside Sources
the management of their own af¬
far
rig in good repair and
that allowance had been generous
and
the judgment
to
of
discretion
panies that are the strongest, that
have the most aggressive manage¬
stockholders is maximized.
those
investments
1
large sums of money.
retention of trust
the selection and
petition factors will require finan¬
cial wherewithal
and the com¬
So
are
^
control, or lease the drilling
rig herein assigned."
I am sure
So_we can b
Governments or
care and management of property,
that you have all had the expenoperate a driulng rig! •
not mere safekeeping at one ex¬ ence of meeting people who simply
treme or speculation at the other. have
no
regard for the future
Instrument Creating a Broad >
A
trust
institution shall devote when
something pleasant becomes
Trust
to
its trust investments all the available in the
present.
Sometimes the wording of the
care and skill that it has or can
Many wives have been running instrument under which a Trust
reasonably acquire. If the trust
their households and raising their [s created is extremely broad and
instrument is silent about trust in¬
families on the basis of a specific gives us practically unlimited convestments or if it expressly leaves
monthly allowance, and perhaps trol of the funds, and I quote from
methods of solving the com¬
,
trusts
part,
Sr t
of the funds of the Trust that may
be necessary to keep such drilling"
us to take care of his
family—many times the family is
completely incapable of handling
specifically says, "The in¬
vestment function of a trustee is
involved,
trend
most
the
For
which
not
upward
•
.
.
established because the testator is
Association,
Bankers
American
(2) If we do not have a correc¬
tion, and if we are to move on a
relatively level plateau, with a
the
was
vided, however, that the Trustee
shall have the power and authority to continue to hold and own
trie drilling rig herein given and
assigned to it, and to use as much
Council of the looking to
by the Executive
storms.
their ability by continued possible
proven
ments
financial
Institutions
Trust
and
ant
agement, we do draw the line
where management appears to be
11, 1933, a
of
approved
Under date of April
Statement of Sound Principles
us.-
prop-
the United States of America; pro-
which he had previously expressed
to
invest the trust
To
erty and funds only in bonds, obligations or securities issued by
the ideas
conforming to
also
but
Trustee's Investment Policy
the vacuum of de¬
of consumers and industry
filling up
to
"(a)
of
Governors
of
Board
the
Continued from page
4
Thursday, July 26, 1956
...
(400)
as
retain and shall not
other shares of Humble
Refining stock held by
shall
any
and
such
trustees,
until directed
ment
of
a
jurisdiction
unless and
judg-
to do so by a
court of
and until
competent
instructed
-Volume 184
Number 5554
.
The Commercial and Financial
Chronicle
.
.
(401)
to do
in
so
writing by the desigbeneficiaries.
The
bank
nated
snail
not be required
ther
Liability for Surcharge
There
to seek fur-
is
to
comes
other
one
point
to look for issues of the
dynamic
slightly expensive, as you can well
growth type, where income and/or appreciate.
was of little or no concern.
We come now to the last factor
We would be using such industries of our schedule
which is the
as light metals, office equipment, selection of specific
issues,
paper, and chemicals.
that
mind
along these lines,
determination
of and
that is the
possibility of surfor diversification
charge to our institution if we
judicial
.
any
necessity
? u®f?*ets .0f Said estate> and
tial loss at
of
d
on,7
tn
•
J
^
k
charge occurs due to
commission rather than
ommission.;
j
tT ,nam
Will for any
eith°th rn™\
j
-«
of
errors
errors
of
of
thereof
said
loss
investments,
and
th/
it
conceded by all parties
a
Humble
common
sivp
Oil
and
0,1
stork »
rn!b
a
concm~
nrdrrf
income
?y ma?y,pe°Ple
to
terrent
those
(3)
nies
■
future
Payments
Tied
to
way they have been
tomed to doing in the
Analyze and select
the
Jj their present holdings
which
.
distributed
remaining relative,
case,
particular,t the trust provides
monthly, payments of $500
;in
"for
h
{
*t
t
a
to
the
period
one
a
substan-
:ihdSil Som
.
quired
to
power
month
.
provide
make
.
the
equivalent
sessed by
•
of
sum
a
ject to taxes. At the death of the
survivor; and upon the distribu-
1purchasing
to
that
pos-
tion of the trust assets
the
sum $500 during the
phew, he
September, -1953, ac- the Trust
-of
r instituted
to the
ne-
suit
against
Company claiming that
they were negligent in not using
cording to and using as a stand•ard1 and measure the United
States
•
;1953
115.2
was
■
ing
!
considered
100%
as
ol
n5.2
-
based
.
and
.
l^increa^e^^r^ecreased
•
lercentaeJ«
tnat
same
-Micreases
decreases
or
index
above
Sneculative
or
n
f
•
H
;
,
trust
using
funds
to
maintain
.
a
the
five
sharp
,
brought, undoubtedly, some buying opportunities in the market.
interest
dynamic growth. We are neither
bullish nor bearish—we are at a
in
United
tops, and believe that
for
Treasuries, acsavings and loan institu-
estate,
and
With Allen Inv.
come and/or
BOULDER
somewhere
;
Colo
"
,
such
mort-
equipment,
bonds of Texas
electrical
operating in
Jack
we
is
roll &
equipment,
what
1334
(special to the financial chronicle)
office
as
with
•
growth.
industries
P
1
__
upon
<
Thnma*
Now With Carroll Co.
We continue to look with favor
aries
v
-
■
no^
rh
connected
,
A
with Car-
Co., Denver Club Bldg.
a.
'
;
"t
i
ColO. Inv. Adds
*
(special to the financial chronicle)
T^T,1VTTri-13
^
DENVER,
has
^
„
Colo, — George H.
been added to the
Earner
con-
^ ^ As Executw
a
'
(Special to the financial chronicle)
along the line, additional buying
opportunities will be presented for
the combination purpose of in-
States
tions, general obligations of Texas
™unlclPaIlties; first mortgages on
improved real
gage
:
We look with favor upon some of
Roth hag become affiliated
the companies which have had a Allen
investment Company
correction from their 1955-1956 peari
street.
we
permissible
a
quality, income, or other sound
investment standpoint.
:
"wait and see" point. The correcwe
had a short time ago,
.
.
specific exchange has merit from
.
tion
rate
One additional factor which
treJonS^S ^UtK
j
...
corporations
electronics, chemicals, paper, light
Trust Company, pointing out that within certain limitations. Please,
metals, containers, and operating
there was no need,
whatsoever, note, therefore, that equities —
public utilities. In a few cases, we
for the trustee to seek enhance- preferreds or commons—are not also look
with favor upon holding
ment in vaIue for the benefit of legal investments for guardiancompanies which control subsidithe remainderman because the ships.
I«UM^
Sneculativc
.
Semi-
or
conditions
.
tecting against
changes.
counts of
business
_
,
guardianship accounts—briefly, a
guardianship trust can invest only
The court, of
course, ultimately
returned a decision in favor of the
t it?o» Septeml:)er' 195-3» flgure
.•of ;115.2.
No
...
we are cautious, we are conservative, and we are not striving for
if
valu^tohim"Zable ^
bv the
flw
tne
percentage
eacn
growing economy.
hedge
against a change of interest rates
by staggering bond maturities in I
this type of fund,
because, obviously, when you use bonds that
is the only way you have of pro-•
inflationary
the
on
have witnessed
dechne from around 490 on the
Dow-Jones Average in the fore-
believe will
we
we
./ part of January to close to 460 bv
Select specific issues of the
mid-January and from 522 in the
complies analyzed—selecting the
forepart of Xpril to 470 in the latissues which best fit our needs- ter
part of
sometimes we will use a bond of that while May-4t appears to me
certeinly l am no
^ n
stock and
ponent 0f continuing
high taxes,
vice yersa.
at high
and thus a
been most substantial. He
charged
negligence and improper management of securities in the face of
power of the dollar shall be
Index
some
they had the enhancement have found is not
fully recognized
in value of the
estate, which was by various dealers is the
type of
now
coming to him would have investments
the purchas-
...
course,
a
jus* oall attention to
that within the past
fact
months,
p^g°od overall average purchase
level would have been realized,
a
lot
of
the
s0_called
«iocked
The bond portion of the fund!
I believe I mentioned, briefly, doors"
were
"unlocked" in these
should be in quality items which, the fact that we recognize, as you
two specific periods of
time. Let
of course, can be counted upon to do, that the economic, business not the
bugaboo, then, of 25%
supply the requirements when and market levels are
generally capital gains tax be a
deterrent to
needed at some date in the future, at all-time peaks, and at this time
completing an exchange if that
We make every effort to
■
cause
of
levels of the market,
stocks in the account be-
common
Bureau of Labor Statistics Index
•of Consumer Prices, which
Index
'curing the month of September,
time,
levels and others
at
it
amount of spendable cash not sub-
re-
of
wjth
expand
investments,
both
stocks
and
bonds, would have been purchased
nephew. This
a
Gf such
-but keys that $500 ?r principal, the testator had, established a tax
to the purbracket around 90%. The Trust
-chasing power of the doll^ stetcompany decided, and I think
u- V,
u
monthly -Payments rightiy so, that municipal bonds
which will have
purchasing power
producing tax free income, should
substantially equivalent to that
be practically the sole assets of the1
•possessed by the sum of
$500 m trust.
Thus, the older people, while
-ii
- paid. aiive, received a substantial
-1 be Trustee
shall
determination
partments—which
.
due to
!he 25 % capital gains tax (which
of course, the maximum rate),
have active research de-
as long as they **.ved and at the
upa- +gVr1 ar/?U^? one"
deat^ °*
survivor, the estate thirjdofthe total fund. Over a
bo¬
Jauf® they haveA been "locked in"
compa-
industries
•
under the instrument
creating the Trust to nav certain
lrusi, 10 pay certain
•monthly payments of either pnncipal or income, but in one
accus-
past,
-•
empowered
been touted
as a cqpiplete de-
the
may
clouded.
or
within
some
whose
years
ago,
an
irrevocable on its accumulated requirements
have been
selected—using those
living trust for the benefit of him-,"*or past services, and if the ecocompanies which are financially
self and his wife, who were then pomic and business environment
strong — which have
■i-"v
aggressive
Purchasing Power Changes
'•
*n their 60s, the income from ls favorable, then consideration
(but not speculative) management
We sometimes are snerifioallv iwtiich was to go to either of them can be 8lven to the use of common'
—which
Trust
,
particularly the
capital gains tax, have
*.
?
iv.
taxes,
Tax
the market
carding
be uncertain
recently as 2V2 years ago — a very -is growing and particularly while
wealthy individual had created, the company is making payments
Rpfinin?
more
upgrading m quality
y'
Analyze present business and specific selling action. It has
and econonnc conditions.
been stated by many
people that
(2) Analyze various industries investors (perhaps they should be
—selecting those which appear to called speculators) are not
prone
have a favorable outlook and dis- to move in and out of
fmJ it«r?wte™S
mav
Income-Capital Gains
N« Deterrent
IT® take the following steps.
something around 2V2% return
on
narrow
items and the
higher quality
solidly entrenched issues
We take the f0n0Wing steDS-
is fully
concerned,
To give you some idea as to the that at sometime in the future,
estate
nr
assininity of some remainderman, the income of the fund must pronf
inrnmpthArAfrnmlet
cite to you a case which a vide for the dollar requirements
result
Trust Company had to battle as from the fund. While the account
u
the
yields
between
the
quality more speculative
~
m^Xse^ particularly sSfon inVestment analysis and
*
said
™
UaKio
dfHerent oblerdves—Sr
selves to
of
of
lower
Selection of Specific Issues
?JS! ?ur prac,tlce to lollow the
est?bllsh?d and accepted pro-
other tvne accounts lend them-
substan-
a
time in the
some
future, instance pension and
Drofitsharinstead of the practically 100% ing pk
insured Profltspension plans, are usually estab; Generally, our liability for sur- lished with an actual requirement
instructions *n
estate- hirthe? that
hif lii n'
that
°r
connect
assets
I
stances, would result in
w
because
spread
—
should commit errors,
which, possibly due to no foreseen cir'cum-
n0
liability of any kind or character
shall attach to said
bank for failure to seek further
judicial de-
order
yield
25
^
C°"
selves and preservation of princiAnother factor which plays an
tbe machine tool
living for a mans
industries, liqpai rather than growth. Obviously, important part of our investment
-family, I am always reminded of
uors
amusements, textiles, steels
they were more interested in be- decisions occurs when we are
Im'ns TnlnmKia
act-. (partly in view of
! a story of a millionaire who was
possibly a strike
J°ins ^oiumDia oecs.
ing properly cared for in their old ing in the capacity of executor
being interviewed by the press as
^ that indUstry) railroads and
(special to the financial chronicle)
age than in passing on to their only—under the laws of
Texas, an certain
to
his
reasons
for
success
and
types of mining companies.
nephew a substantially increased executor has no powers of investDENVER, Colo. — Theodore V.
,how he actually accumulated such estate.
Generally speaking, the level of Denuszek is now with Columbia
,
^
v,.
,
^
ment. His duties and responsibili; wealth
he rePlled
the
is such that up- Securities Company,
tjiat his wife
We now come to a brief discus- ties
.ally owed all he had to he actuaJ"e
collect the assets,grading, in quality is definitely in Equitable Building. Incorporated,
sion of the fourth factor which deand
.s.andard. of
,
•
marke1ftoday
when
,
the
reporters
/
a
wife, he pointed
was not
out
case
to.a
any credi., it was merely
of-necessity—he said he
to
:
.
;
constantly
make
more
tempting
income
endeavoring
and
money
find
to
beyond
•
level
some
which
his
atof
wife
would not be spending!
We
i
ment
in
the
field
institutional investdo
.
.
.
most
serious
responsibility
not
only front the legal but also from
the moral angles—the testator has
created
.
a
for
purpose
the
trust
fund
of
Objectives of the Individual
i vr ^Trust Account
•
■
,-
I
specifically
relying on a
t
third
party to
just mentioned one ex- recognize that we do npt parCertainly I would" like to ticularly care to invest in that
emphasize that we make everyrcompany» .^e would not purchase
•
It
serve
the
his family is accustomed—
to
Are
we
charge
going/to
-u-i-f
u
our
responsibility
ing
speculative
tive
issues,
we
to
would
design
am
or
t_
by
us-
semi-specula-
though there
even
dis-
are
am
invest-
.
,
P^1^' ™ *alternatives offered
y
aiieinduves oiierca,.^
We
is
no.
fept. securities with varied
turities
(for the
can
,
„
,
democratic. organization., ~'
^
for
funds
the
.
for
account
of
emergen-
would
be
either sell the securities
the cash intact, or we.
another
for the
to
go
make
even
if
$100
United
Bond,
it
we
be
the
an
purpose
we
would want
and violence which
followed
are
.
of
,
an^ China and the iuiure of other underdeveloped
China anaine future oi otner unaeraeveiopeu
of both Asia and
Europe as also Africa
nations
would
•
inevitably depend on the tangible and speedy
devel0pments in these two countries.
Whichever system of economic planning registers
a
better and quicker
progress would naturally
_
eCQnomic
States
must have
attract
of
Tf
attorney
prepare a court order to be
by
the
us
to
proper
make
judge
that
signed
authorizing
investment
—
attention
Naravan
of
the
rest
General
of
the
Secretary
world."-—
of
Mr.
Nehru's Congress puity.
ixeni u s> ^uiigicbb nartv
a-
Government
an
the
Shriman
XT
-Narayan,
"
nondynamic, slow prepare an application to the court
Sr°wth, defensive type industries,, to invest funds in that bond, also
businessman,
war
inclined toward the tech-
_
investment,
purchase
in
as
public utilities, tobacco,
variety chains and foods. For
not
are
in Communist couniries.
"The world today is
vitally interested m the
comparative progress of economic planning in India
iA.
must hold th<? security itself, and
eventually distribute it to
the-;.
beneficiaries. We, have no power
to make an exchange of one, issue
ma- we
purpose
providing
cies) and
the
a
^
•
.A
hold
and
"We in India
niques of class
m
_
*°"s*
fo/the fund®
„mL
country to experiment with
our pace
^
growth
creasing
income, or improving'
widow, we would be es- quality.
*
•
tablishing a portfolio with some
One
other
thought,
on
the
liquid reserves such as govern- guardianship
account—every time
some
of course,
first
-
the
heavy
'
the
there
sure,
she had to live on for the rest ob
her life, along lines which would
be
entirely
different
from
a
wealthy businessman who wanted
to establish a living trust strictly
For
m
-
obvious, I
ment policy of a widow, who came
to us, let us say, with $100,000
cash insurance money, and said
that the income from that was all
possibilities
of
substantial - en-'
T
such
hancement m values. The
answer,
x
.
living
keep them free from financial
worries.
i
of
^
^
As compared with nur.neignDoring cnuntrv China
with nnr npiahhnrino country, unina,
.
s
^
is rather
that
are
' .'u-
Individttal tliat Wl1"1'COUllts!
'"T*T "
of progress, despite certain inherent handisecurities and we feel that
caps under a democratic System of government, has
is a risk of the market de- - '
; - *
encouraging
to the aims and
objectives fhmng; yet, ; we '.recognize
the • v
been very encouraging indeed
maeea
individual account.
level of the stock could remain
*
concentrated effort to establish an
investment policy which is best
pre-
which
standard
£
■.
over-all planning under
have
suited
aAl^
■
"We
-
disinterested
,<■■
m
'.Ifc
11 9
peculiar situation, at times, when,
in our capacity as executor, we
ampie
of the
earnestly request
.investment bankers to constantly
bear in mind, when we
might be
saying "no" to an offering of
stocks or bonds, that we have a
.
.■
h^e
,
that he
ipaking any.e«ort to give
.bad- been
£
1
_
,|he Mrs.
a
5
^tribute the proceeds of the estate
^ °£
substantial amount of credit
lis
,
?a.y ^e debts and taxes and dis- 5
termines institutional^^investments
ejSremely^mcKJesbof K
,
com-
any
^
.
made to take the
..
A
prise
W
or
form of economic
•
«
else, supposes xnai
social organization can be
place of individual
and'initiative, he
error.
l
anyone
or
„r;n
w
11 f
d
energy,
fhaf
Via
enterHpatiIv
PY
:
The Commercial and
"26
Financial Chronicle
.
.
.Thursday, July 26, 1956
(402)
•
iirct
Continued jrom
jitsi
y-
yuye
'•
»
-
"
v
;
V
llf^f
Willi
ZM
^unhampered.
is to keep the Soviets off balance that it is all a piece of standard reach our people
by helping maintain the spirit of Red hocus-pocus.
^
Let them remove censorships and!
resistance among their victims.
Their Congress merely declared allow free-world books and magay And that in turn requires that we that war is not "inevitable" and zines to reach their.,people, as we
;
keep alive the hope of ultimate that peace is desirable, in almost permit their publications to reach
liberation.
'
the same words that Stalin and our people,
»-
m'mm
v
|La P ft Iff
JieW LOOK lift ftlftv VVlU
IJAlif f AA1.
,
,
;
;
Y
beings as permanently en-V The House of Representatives, "his mouthpieces had said it reRecently Moscow's new Foreign
I believe, was acting in this spirit peatedly in the past. But, there Minister, Shepilov, demanded that
focated
We know in our hearts
Only the accident that a trade when, on the day after the Polish was not a single practical and the American press and radio be
that the elemental human free- fair was in progress, with many insurrection, it passed a resolugenuine proposal for reducing 'hnuzzled." Our counter-proposal
-doms summed up in the concept foreigners on the scene, enabled
tion—sponsored by both the Re- armaments and outlawing war.
is that Soviet Russia remove the
of liberty—whether our own or the world to learn at once about publican and Democratic leaders
Then there were the celebrated muzzle from its press and radio,
other people's—must not be used
the eruption in Poznan. Exiled —expressing America's sympathy references to "parliamentary" and We have no fear of exposing our
bargaining counters to buy off leaders in close touch with their for the men and women slaugh- "constitutional"
roads to Com- truth to any test, provided the
despots
■■
V
4-homelands say that there have tered by the Communist police.
munism, from which some pundits channels of communication are
:
been dozens of Poznans, large and
••• y.;
"j are squeezing drops of consola- un-jammed, un-censored, VunTemptation to Expediency J
small, concealed from the world:
Our Real Allies
- tion. What did the Red Congress muzzled.
; Y /
v5
The great temptation today, as slow-downs
and strikes in facIf the Communist fifth column actually say on this score? Only
;
in all times of crisis, is to com- tories, peasant riots, student proin our country can be counted by this: that some parts of the world J^j^Itremlii^Worriea :
y
promise on ideals in the name of tests and the like,
the thousand, the forces of free- have been so thoroughly softened
Apparently the intellectual ferexpediency.
We are counseled,
The fact is that under the arti- dom in the Soviet lands can be that they can be expected to yield ment in their country has the
by some who fly the banners of ficial surface-calm
of they Red counted by the million. These are without the prelude of bloodshed. Kremlin bosses worried. They are
so-called "realism," to recognize empire,
there is a tremendous our actual or potential allies. Let Ironically, they cited Gzechoslo- trapped by a historical dilemma.,
the "finality" of a world half-free, ferment
of unrest, angers and us keep faith with them. But we vakia as an example of this sort To run their expanded industrial
half-slave, and make the best of passionate
aspirations. Youth—• < fail in this respect to the extent of "peaceful" conquest.
set-up they must produce more
it.
That sort of logic has back- and this is heartening to friends that
we allow ourselves to be
As for other nations, the Com- and more educated personnel, but
fifed ever since the first such of freedom—is especially restive. lulled and gulled by Moscow's munist Party session made it clear every newly educated citizen adds
realist asked, "Am I my brother's Press reports say that a majority most recent slew of slogans and that violence must be used as al- to the potential of discontent and
keeper?"
y'y^
of those arrested in Poznan are promises.
ways. Here are Khrushchev's exact rebellion. Their growing output
In
world made small by mod- under 25.
The signs of youth in
The extraordinary fact is that words: "In countries where capi- of scientists, engineers and tech-.
em
communications and modern revolt are similarly clear wher- So many throughout
the world talism is still strong . . . the seri- nicians whose minds are sharpweapons
we
are
our
brother's ever, in the Soviet sphere, the hot were duped by approximately the ous resistance of the reactionary ened by the disciplines of science
'keepers ' We cannot
in the long lava
protest breaks through same slogans and promises re- forces is inevitable. There the must, in the long pull, constitute
run
remain uncontaminated and the totalitarian crust.
peatedly in the past. Apparently transition will proceed amid the a serious threat to a regime based
safe when half the world is fesWhy are the oligarchs in Mos- the Kremlin is counting on our conditions of an acute revolution- on falsification. The regime is
tering with ' the sores of terror cow and their stooges in captive short memories and on our anxiety ary struggle."
The new Party- thus forced to produce what may
and torture
godlessness and de- capitals so loud and lavish these to believe.
yyyjy;:line, in short, gives free nations prove to be the instruments of
spajr
days in promising to "liberalize"
In the mid-30's, even as now, the privilege of surrendering its own destruction.
Fvpn rp,pnt hictorv nffprc nroof
their regimes? Why have Stalin's Moscow
suddenly., mended anH olWnotiva +r>
its without a struggle as the sole must OUT POliritrV Hn t.O 0113rant.PP
Against this background, what
Vi-Lcis F1
HicairrmrPrl
fnrnP
nnnnnoct
Without its life- human
sustaining force we would be suf- slaved.
is
to
body.
our
as
:
-
i
•
•
a
let-CXll
IJlsauiy
j..:..
.
„
mnnnorc
ing to play along. Stalin produced return to simon-pure Leninism.
Our first and irreducible duty
It takes,y a genius for kidding is to maintain military vitality
yourself to read into this any and to maintain it continually "at
^it^hpv brpd the
disasters ferment and what it may portend, cratic in the world."
Soviet Rus- policies of moderation.
the ready." That is indispensable
an; Hanpprs thpv
intended Revolutionists
themselves, they sia joined the League of Nations
Actually it was a reaffirmation survival insurance, whatever else
fnre«tpil
live always in dread of revolu- and pushed what it called collec- of Lenin's militant and uncom- we may do to combat Commutiom
Communist brutality may tive security.
promising drive for world domin- nism. As long as ruthless fanatics
Tbe
glle
P appeasements of succeed in holding those millions
The result was a field day for Jon. Here is the goal set by Lenin, who disdain human life and reSoviet Russia in Europe and Asia in
bondage for many years to wishful thinkers. They even urged in his own words:
"Victory of gard themselves as the chosen
in the immediate postwar years—
Yet, all history shows that that the Nobel Peace Prize be world revolution and the estab- instruments
of history control
involving the surrender of milrevoiuti0ns, which seem "impos- awarded
to Maxim Litvinov, lishment of an international So- modern weapons, we dare not
lions -of
fellow-men
to the sible>»
bef0re
thev
haooen.
are
Stalin's foreign commissar. They viet Republic." And here are the rule out the risk of a surprise
inp?tWe
and
Munich
events
of
Lrp hXd
Yalta
their
in
time
RiS
o
crimes connected with his hatred
name are things of the past?
The answer is fear—fear of
a new Constitution, described by
that his admirers as "the most demo-
verv
were
t
10
lorestaii.
.
come
our
evils
to
in
their day
and
stabilize
world.
Actually
measures
as
tranquilize
the
by swelling the
self-confidence
and
power
world
de¬
Communism—were
of
fended
they
Communism,
fo^'!2J®a"k^b®?1,f0rW?0own.^ the'Left, andYoon" they"would ful'"method,'evasion,"concealment
of »r their sake
under-
but tor our own
^ jn ^ m,ddIe and „ye hap_
ton'trohs
to denv them the moral pily
Qf thfi truth;.
^
ware'are"smoldering"in in North
a" dozen
inflammable regions -
together forever after, r:'^:%Y-Such are the methods and the Africa,
the Near East and South-
example. The Com-
understanding, our* grief ?"e. it was all a greatto our }t to Communismnew bosseslm- east Asia, forusing the bellows of
Y" that
ewem. goal
learned hoax, world which the remain of munists are
and above all our faith
. their
ultimate liberation.
In Jhe new affability dissolved in placably committed. But they have their propaganda to blow ■ little
problems and the challenge of our
..
.
f
ri
i(.
the obscene blood-purges of the wrapped the old commitment in fires into big ones. We can have
time.
They show that only a cioseiy reiated to our own
late 1930's» and then the Stalin- misleading rhetoric to confuse no certainty that future small
compass of principle can help us
Th
Kremlin>s uncertaintv about HitIer pact that triggered a world those whom they olan to conquer, wars can. remain localized. Moresteer a true course,
Without
itsYthe lovaltv of its subiects and war* Meanwhile, under cover of Their attempt to blame Stalm over, we know that the Kremlin
fixed points - of honors integrity*
tes is in itself a most efunited fronts 1 and coexistence, alone fop some^ Soviet-crimes of is pledged to provoke civil consteWlUy
siaDiniy
Snd peace65
ana
genulne',support of
svmoathv
peace.
our
.
Yromlin
•Kremlin.
sia» the
rebellious spirit in the
if.,
*
j
,
,,
...
,
.
where and deployed its forces of jhat system remains intact.
world struggle.
^
mischief at strategic points, y * :
All Soviet power, including the
Even Soviet Russia, I recognize,
'have the courage of our dedicaMoscow's eyes
as
it figures its
Today we are drifting into an- power to invoke terror on any would think long and hard before
^.tion to liberty. It seems to me chances of victory in case of war * other such Period of self-decep-. scale at any time, is centered in a unleashing the final catastrophe,
crystal clear that we cannot be
The
of the Kremlin have tionKhrushchev and company Presidium of 11 men, which has But the stakes are too* high: to
indifferent to or ignore the threat
vivid
memory
of
the early have, thrown out a new Party- taken the place of the former justify a gamble. Our country, I
to the still-free nations badgered
months of the German invasion line»
baited' with the same old nine-man Politburo. Seven of the repeat, must remain militarily
by Communist pressures, without jn 194^ when literally millions w.°.rmsAnd the fish, alas, are nine in the last Politburo—that strong and alert. We must keep
deadly
peril to everything we 0f Red soldiers surrendered with hiting. Luckily this new surge of is to say all of them except Stalin, ahead in science and technology,
cherish.
only token resistance
They can- false optimism is not so strong who died or was murdered, and We mustY provide an
adequate
not forget that neariv a million in the United States as it is in. Beria,~ who was executed — are supply -of . trained manpower* to
The Key Events
Soviet
citizens
took
uo' arms most other free countries.
now in the Presidium. Of the ad- meet any contingency.
When the history of these years
against their own country in the
The evidence that Moscow's old ditional four, two were put there
We should strengthen our nais
written,
I
believe
the
key hoDe of overthrowing the Soviet trick is workinS its old magic is. by Stalin himself before his death, tional defense by enacting cornevents will not necessarily be the
regime
too clear to be ignored. We see it
..
prehensive "stand-by" laws that
conferences
of
statesmen. * They
g0 tbe Communist bosses have in
the fact that ■ blood-stained'. * • "
Same Old Gang
- would give the President of thie
likely to be such events good reason to fear any new con- Kremlin dictators are being reThis is the same old gang, the United States power to take at
as the slave revolts in the Siberian
fHct—this
time
not
against an- ceived as honored guests in demo- same ideology, the same relent- once whatever measures may be
forced-labor
camps
of Vorkuta; other brand of totalitarianism but cratic countries.
less purpose of expunging free- immediately necessary to meet
the
uprising in
East Germany against free
Their war nlanq
dom everywhere. I submit that the effects of an enemy surprisethree years ago; the youth riots
must take into account the posStrange Invitations
tbe free worid does not have a attack upon us with atomic weapin Tiflis
few months ago; the
sibility
even
the likelihood
of
These men and their associates shadow of an excuse for trusting ons. Such power should include
insurrection in Eastern Tibet; the
fighting on two fronts: against stand self"indicted
as criminals this gang or relaxing its vigilance, the vital area of Civil Defense. ^'
recent student demonstrations in
the foreign foe and against^their and desP°tsThey cannot wash
if? as some optimists claim,
Soviet foreign policy aims at
Czechoslovakia and Hungary; the
populations
the blood from their own hands Moscow's supposed reformation is the destruction of our system of
explosion only a few weeks ago
It
to
plain common by Pourin.g a11 the Suilt on the sincere, the Soviet leaders have alliances and global base strucof pent-up hatred for Communism
therefore
that
the
West dead
Stalin. It is both strange ample opportunity to demonstrate ture. We must support and seek
in Poznan, Poland.
should
do everything it can to and sad that any ?ree g°vePment it. President Eisenhower has pro- to strengthen NATO — the keyThese
thrilling expressions fortify this built-in deterrent to
choose this very time to posed a progrgm for a people-to- stone of our present security
of
man's
eternal
yearning for war in Soviet society. It is a case invite
s^cb gentry into their people exchange of ideas across system.
freedom.
Here
people ac- where loyalty to principle coin- deJ}ocratlc households!
the Iron Curtain. Let them, if
We must also take all practical
cepting not merely the risk but cides with simple self-interest.
Tbls +P°° ot] ^taxation rests, they dare, accept this challenge— precautions against the germ of
the near-certainty of martyrdom.
The strength of nations is, after H1
trMth' °"
_^ore tbaij not with some meaningless tokens inflation spreading to an infection
Their heroism is a bond—sealed
all, a relative eauation. One sure Kremiin double-talk. We are told 0f exchange but by fully and 0f
our economic blood-stream,
with
the
blood
of
hundreds of way to make ourselves stronger tbat tbe 20th Congress of the So- honestly demolishing their bar- Our
national strength depend3
victims
between
the humanity is
to
make
the
Communists viet Communist Party, last Feb- riers to the flow of news, in- upon the maintenance of a healthy
j
*
*
captive states—these
we
may
'
Today, more than ever, we must
sure
loom
large
a'nd grin;
be
^ •
men
a
,
„
_
.
/
are
more
.
men
*
c,
^
a
own
seems
me
sense
are
were
.
the
and
let
me
fices
are
would
humanity
outside.
And
say-it bluntly: their sacria
rebuke
write
off
to
those
nearly
a
who
billion
Taker-.Thewea^eSt.uinkintheir
chain of power is the vast in-
.
ternal
lence in the attamment of Com-
opposition, actual and po-
...
.
.
0
T
.
,
duty and
our
opportunity
speeches
and
.
Let them cease to jam our
munism. But a study of the actual broadcasts to their
tential.
Cur
renounced war and vio- formation, opinions and ideas!
resolutions reveals we
permit
their
^-earnestness not only to figbt
but to win the cold war. That war
to is a reality. It cannot be smiled
people, just as
broadcasts
system of finance must economy,in
and resolve
Meanwhile, we
Volume
184
Number 5554
.
The Commercial and Financial Chronicle
.
.
(403)
away
wished
or
«not-lose
do,
dead
the
We
away.
cold
For
war.
dare
if
we
free civilization will be
our
if
as
it
had
been
in Russia and its
crushed
-
•
peace/'
r
the
And
The
.
we
The
the
is
enemy-
Soviet,
will
hatreds
to
-■
y
results
choose
•
in
.of
by
and
chronic
to
freedom
is
fears
are
tious
/
of popular
That is why even talk of putting
American and free-world conduct
large-scale
down
the
In
.
basis
I
presented
to
It
argued
for
>
'
propi¬
of
decision
of
the
of
is
Stalin
Oregon (wr.ere it
Since
four
the
at
regime
the
decades. It is
in
return for years;
indeed, one
that may never return.
.
:
Will the free world continue to
drug its
the
tion
209
time
prepare his next series of big
to
and
water
of
Public
commenced
company
operations
number
a
of
with
properties
formerly
owned
enemy
and Pendleton in
and
The
>
Memorandum
public and did win
attention
here,
by
made
was
nothing
rest
cow.
Then
of
tides
it
buried
runaway
in
let
by
the
Geneva
summit
meeting and
the
new
Russian
diplomacy
of
smiles.
But
the
Soviets have not forgotten it.
On July 9, 1956, less than two
weeks ago, 'Moscow showed that
the
under
blow
Pravda's
in
W: me
Cold
flattering
good
denounced
tion
in
War
the
prospectus issued in connection with
shares of common stock gave the
Communist
re¬
Earl
mine not to lose
default!
Better
the
cold
by
war
else
vulnerabili¬
anyone
own
ties. More than
anything else they
dread
the
day when the West
may decide to bring to the cold
the
war
the
the
readiness
resources
-Nor should
.
that
it
Edgar J.
from
we
the
Loftus
will
Lang-
of
brains
to
from
indulge in illu¬
sions that anything less than that
will
suffice
to
achieve
victory.
now
—
;.-
•
,
,
•
•
*
-.
"We
randum:
the
exploit
must
seek
weak
out
and
in
the
spots
enemy's armor, just as the Krem¬
lin has been doing to us these
30-odd years. We must make our
Truth
effective
as
and
as
Road
W.
we
Stalin. Knowing that,
inside the Soviet empire that text
is still secret, available
only to
the elite of the Communist Party,
lambasting
official Voice of America and
the" privately
supported
Radio
Europe and Radio Liberation
proceeded to beam
the
speech,
day and night,, to listeners behind
Free
.
preliminary work.
These
American
actions
prospectus.
seem
present' masters
in
The brickbats they
at
the
Secretary
truth
-
Goodbody Adds
&
•;" '•
Millions
with
Rodman
&
Renshaw,
209
South
La
Salle
Street, members of the New York
and
Midwest
Stock
Exchanges.
Mr. Mason and Mr. Murdock
were
j
have become associated with
King
Merritt & Co., Inc., 1151 South
Broadway.
Mr. Luder was for¬
merly with J. Henry Helser & Co.
Joins
Noble, Tulfc
(Special to The Financial Chronicle)
L.
LOS ANGELES, Calif. — Boyd
Jeffries
is
now
with Noble,
Tulk
&
Co., 618 South Spring
Street, members of the Los An¬
geles Stock Exchange.
entire
Two With Sterling Sees.
(Special to The Financial Chronicle)
LOS
;
»
,
ANGELES, Calif.—Celesta
M. Moser and Joseph Simpson, Jr.,
have become connected with Ster¬
ling
Securities
Co., 714 South
Spring St. Mr. Simpson was pre¬
viously with Shelley, Roberts &
Company.
Stock
":$114"!
60%
;'
(Special to The Financial Chronicle)
7
62
(3,755,576 shares)
Joins Powell, Johnson
Percent
14
were
33
PASADENA,
Calif.—Bryan
R.
Beck has joined the staff of Pow¬
100%
Johnson
&
Powell, Inc., Se¬
curity Building.
$1.92, making the price-earnings ratio 15.1 and the
'■
r
as
AREA RESOURCES BOOK
follows:
explains why the
Dividends
we
area
Price Range
$1.80
$1.35
1.54
1.25
offers
28-24
25-21
1953
Stock
Ronald W.
—
Penobscot
.
.
.,
>•
1.64
1.13
1.10
16-13
Forms Bieder & Co.
ST.
and
with
of
York and Detroit Stock
the
New
Charles Grover
to
industry.
•!
Write for
Company
offices
to
has
at
James E. Midkiff.
formerly
Exchanges. ciated.
an
business
partners
Ganson L.
Mattson
1
with
were
of
National
was
Bank
the
Salt lake
City 10,
First
Utah
Building.
Cunningham Cleland Adds
(Special to The Financial Chronicle)
Security
which
also
Colo. — Charles H.
conducting a securities
from offices in
his
asso¬
SAN
Cleland
atre
UTAH POWER
& LIGHT CO.
DIEGO, Calif.—Norman L.
Gohres is
now
with
Cunningham-
Company, Orpheum The¬
Building.
j
899,
Dept. K
and
Mr. Bieder
officer
Inc.,
Lane,
securities
Box
*
DENVER,
Grover is
a
are
U.
formed
Dixie
in
Partners
Arthur
been
1330
engage
COPY
Opens
(Special to The Financial Chronicle)
PETERSBURG, Fla.—Bieder
Bieder,
(Special to The Financial Chronicle)
much
20-15
1.10
serve
opportunity
22-18
1.61
1.47
so
FREE
South,
Roney Staff
members
for¬
described in the
are
Stock
1954—
other
/
v
,
1955
business.
Joins
associated
come
to Staff
Co.,
.
CHICAGO, 111.—Forrest Laidley,
M. Mason, Leroy B. Murand Joseph Luger have be¬
Owen
dock
Approximate
Building,
people
v-"
Share Earns.
E.
of
Meyer has been added to the staff
-
Rodman & Renshaw
(Special to The Financial Chronicle)
common
The common stock record is
(Special to The Financial Chronicle)
of Goodbody
Building.
Laidley, Others Join
of the
"V
v
'
forma basis, with estimated adjustment
shares, is as follows:
1
on a pro
new
payout 77%.
*■
-
DETROIT, "Mich.
Dempsey & Co. and Paul H.
The stock has been selling recently around 29 to
yield 5.1%
on
the $1.48 dividend.
Earnings for the 12 months ended
Associates,
the
of the
1952
Detroit
-
man¬
Davis & Co.
ell,
staff of Wm. C. Roney & Co., Buhl
to
43%
up
$190
throwing
for making
are
makes
1951
the
"
was
department
.
DETROIT, Mich. — J. Edward
Roney, Jr. has been added to the
Dulles
available
of the
Company, Buhl Bldg.,
of
trading
based
DETROIT, Mich. — Tamar
Nicholas has joined the staff
members
for
prior thereto
the
later.
or
Long-Term Debt..!
of H.
Co.
-
Exchange.
of
ager
1960, it is estimated,
(Special to The Financial Chronicle)
D. B. Fisher
than
care
.
Capitalization
for sale
angered the
the Kremlin.
to have disturbed and
until
area
Clapp
Joins D. B. Fisher Co.
:
in the
Other important projects
/ V
'
Whitin
name
Bonneville
PUD, Pacific P. & L. has not yet received a final clearance from
FPC for the Swift program, but the
company is hopeful of
reaching a compromise with the PUD and are going ahead with
March 31
.
the Iron Curtain.
-
the firm
&
with
securities
a
rated and
LOS ANGELES, Calif.—Marga¬
and Carl R. Luder
program, would produce power for an esti¬
Because of the opposition of Cowlitz
County
mills.
Common
more
had a demonstra¬
tion of the shattering impact of
truth—and the credit must go to
Secretary of State Dulles. I refer
to the release by our State De¬
partment -of the text of Khrush¬
chev's
so-called
"secret
speech"
our
under
Brewer
productive than Moscow's Lie."
-Recently
engaging in
with
rita G. Clarke
Services $131,182,000
the
(Special to The Financial Chronicle)
business from offices at 82
associated
(Special to The Financial Chronicle)
Power Pool, which in turn is supplied by
This is very cheap power—about 3 mills or less—but
Preferred
Brewer is
Misc.
big Swift Project, which
Forms W. H. Brewer & Co.
Mass. —H.
become
Two With King Merritt
Northwest
'-w"- ,•?<•
SCITUATE,
has
Reynolds & Co., 39 South La Salle
Mr.
Reynolds was for¬
merly with Blair & Co Incorpo¬
formerly with Fairman, Harris &
Co. Mr. Laidley in the past was a
partner in Hicks & Price.
$56,219,000
19,000,000
5,071,000
14,410,000
30,765,000
>••*.
arrangement
demands
4.13
Our
counter-strategy must be as
bold, as intensive, as minutely
planned and as flexible as the
enemy's. As I said in that Memo¬
olds
Street.
construction
Corp., 49 Fed¬
is
341,550
private utili¬
better
a
1956-8
.
Webster Securities
Street.
Project
Including
mated
George E.
with Stone &
eral
of
increasing construction costs the Government will probably
The
(Special to The Financial Chronicle)
Morris, Jr.
sale
The
(1956-58):
Plant__
be forced to raise rates sooner
Building.
Mass.
recent
Distribution
power
the
due to
a
BOSTON,
the
expansion.
Federal construction projects will only take
Bonneville.
Clarence
With Stone & Webster |
; U
for
hence the private utilities and the
PUDs, either individually or "in
partnership," are projecting a number of large developments. At
present Pacific P. & L. buys over half its power requirements
King Merritt & Co., Inc., Chamber
Commerce
drying
program is
of growth and also to be less
dependent on Bonneville
due to the preference clause, though the
have
now
merly).
increased
Harrison and
nut
care
(doubtless
ties
withdraw
C
and
Presumably the object of this large construction
C. Brelow have joined the staff of
of
Hydroelectric
Total,
to take
MIAMI, Fla.—Theodore C. Alexopoulos,
Thomas
E.
Kehoe,
E.
plans
Additional
as
(Special to The Financial Chronicle)
sacrifice,
would
,
f
Four With King Merritt
Edvthe
ambitious
Hydro Unit at Merwin_v
Electric Transmission
of
partnership in W.
hop
from
retired
Board
has
company
Wyoming Steam
ley & Co., July 31.
:
'vv'v:" -H;
war.
Douglass
of
and
-■
Swift
.
courage,
for
concentration
same
and
hot
resolute
same
same
S.
plants
following forecast of construc¬
/' //
than
they knew their
retired
processing
tion expenditures over the next three
years
Stern,
Douglass & Co., Inc. July 13.
terrified by any symptom that
West may at long last deter¬
are
Prather
Chairman
The fact is that the Communists
the
v.
partnership in Cabell Hopkins &
Co., Inc. July 16.
appropria¬
the United
vegetable
The
Electric
Clarke
Douglas and the American
for what it labels "proposals
undermining
gimes."',-/'^
V'" ■
and
plants.
changes:
tor Paul
for
every one of us.-
Weekly Firm Changes
States Senate and criticized Sena¬
press
not
alone.
-The New York;Stock Exchange]
has announced the
following firm
attack places
for it also
by
do
government
fruit
Proponents."
recent
field
questions
the
diversified, including lumber mills, plywood mills, pulp and paper
mills, hardboard and particle board plants, oil wells, oil
refineries,
oil pipeline
pumping stations, commercial fish packing and reduc¬
tion plants, beet sugar
refineries, flour mills, creameries, meat
packing plants, railroad shops, irrigation pumping installations,
an¬
- Liberty, for our beloved Amer¬
ica, is still the rallying cry. That's
our "party line." It must and can
by
company
this
The
New York Stock Exch.
giving me top billing in a sizzling
attack published by Pravda under
the heading "Nefarious Deeds of
American
Oregon, Yakima and Walla Walla in Washington,
Caspar and Laramie in Wyoming.
Industrial customers in the
company's service area are well
prevail.
:
loose
it still smarts
the
being waged
and
exploit the
such
with
to
up
war
They rest with
the
optimism
was
face
opportunities?
to
swers
to
match the anger it evoked in Mos¬
cold
the ^Soviets
present
favorable
some
but
relentless
to
1
CHICAGO, 111. —T. Leo Reyn¬
by
communities, 11 of which have a population in excess of 10,000.
important cities served are Portland, Corvallis, Astoria
blows? Or will it find the wisdom
valor
Reynolds
(Special to The Financial Chronicle)
The most
and
the
T. Leo
prop-
the
were
area includes
13,000 square miles, with a popula¬
1,070,000 in 1950, compared with 825,000 in 1940. The in¬
in population is
continuing. Electric service is furnished in
political .and psychological
weapons against the Communists.
own
•?; r
the
systems, it has acquired
important recent additions
most
posed that we turn the Kremlin's
nth
16-story
13%).
uses
when
Power
crease
with wishful think¬
senses
ing, and thus give the
the
The service
,
"surest way to prevent a hot war
is to win the cold war," and. pro¬
operates
electric,Mountain
Company, and the electric properties in Laramie,
Wyoming, owned by The Western Public Service Company. The
former was acquired by
merger on May 21, 1954, and the latter
Nov. 1,1955. ;
telephone
moment that may
a
and
separate
The
States
its
ebb
1910,
small
erties.
the
and
lowest
leases
company
Building in Portland, Oregon (occupying about one-third
space) and ? the Pacific Power Buiiuing in The
Dalles,*
the
The
era,
revenues
Trie
service.
Service
war.
to
revenues of any electric
utility, geographic
being as follows: Oregon, 61%; Washington,
20%; Wyoming, 12%; Montana, 6%, and
laaho, 1%. Ninety-five
per cent of. revenues
are
from electric service, the remainder
being contributed by steam heating, telephone service and water
*
t
relation
of
sources
and
side.
in
areas
men
not
out¬
that
-
«
clear-headed
a
prestige
Offensive
munism.""
our
fight and win the cold
leaders
"Program For A Political
Against
World
Com¬
a
on
r
.
all
ing disclosures of the crimes and
for ex¬
President
Memorandum
a
.
blunders
chill
a
spine.
last year,
of
Eisenhower
lining
sends
,
of
side;/principle
are
"
•
hearts
is deeply shaken by
internal troubles. After the shock¬
organized,
an
••
the
Soviet world
Soviet
April
ample,
on
•
v
Our Burning Opportunity
T
to
war
showdown
a
I believe that the time is
•
cold
Pacific Power & Light
Company
Pacific Power & Light
Company is one of the rapidly growing
utilities in the Pacific
Northwest, with current revenues of over
$4o million. The company has one of the
largest electric service
we
enjoy indubir
^
'
the
"
"Wr
resistance.
of
In
so.
our"
on
touches off
wave
do
in
morality
.
a new
good effect when
that contest, we
oppressions. Its
parts are held together not by
mutual loyalty but by raw force,
and every relaxation of tensions
'
By OWEN ELY
,
prove
advantages: Truth is on our
side; the hungers for justice and
The
power'
to
Reynolds Joins
Reynolds* Co. Staff
Utility Securities
combat the
table
victory.
vulnerable.
structure
termite-eaten
and
,
win, provided that
can
T. Leo
Public
that we, too,
wield the weapons of political
can
generate
the
tices of the Soviet Dictators is the
offensive
we
of
most effective way to
lies they tell about us.
.
/"■ Termite-Eaten
v;
,
satellites,
as well
world, are
telling the
policies and prac¬
rest
best evidence that
truth about the
by military force. Byv the same
token, , a
clear-cut
free-world
victory in the cold war is the best
hope for a-true .and enduring
t,
to
as
the
as
2?
Serving in Utah
Colorado
-
-
Idaho
Wyoming
I
The Commercial and Financial Chronicle
m
Sparks Appointed Gov. Continued from first
Of N. Y. Stock Exch.
LSecurities Salesman's Corner
Keith Funston,
By JOHN
DOTTON
.
Thursday, July 26, 1956
as
Study—
,—What To Read And
successful securities
Every
has been
avid student of current affairs.
I have known
salesman
an
time to go out
but when do I have
securities?" That is
important point. When you
and sell some
a
very
finan¬
starting out to become a
are
cial advisor and
of
Frank
security salesman
Sparks,
of the
Public Governor
a
Ex¬
major political factors. They
change.
noted
The
ist
educator, industrial¬
have gained
you
government servant suc¬
ceeds John Sloan Dickey, Presi¬
dent of Dartmouth College, who
has
completed
a
It is a never
current information.
Basically, much the
three-year term
daily
help
Company; and
to
A
,
you
lished.
evening
morning and
a
I do this in order to keep
informed of activities of people
know, also trends in local busi¬
conditions concerning banks
ness
and industry.
,
weekly publications include
The
periodical
this excellent financial
Commercial
"The
Financial
and
background
through its articles by foremost
authorities on all aspects of the
Chronicle"
"nation's
gives
complete
economy;
formation
with
me
Read and study at least man of the Board of the Council
day. I would work at for Financial Aid to Education,
learning Chairman of the Commission on
the
business, through study at Colleges and Industry, and a Di¬
night, or on week ends, if I were rector of the Association of Amer¬
starting out now to learn how to ican Colleges. In 1955 and 1956
become
a
top-flight investment Dr. Sparks was a member of the
man. The prize is worth the effort
Committee for the White House
if you like this business — it is Conference on Education.
rewarding in personal satisfaction
and also from a monetary stand¬
Fred C. Rugen
point.
y
Fred C. Rugen associated with
in¬
of
course
on
trade
and
well as new ideas for
keeping up with
subjects, I have^confidence
in my own judgment' and meet
with my clients on a professional
and advisory basis. |
.->• .V-,
Other publications of a general
character which I consider helpful
-industry;
Form Nat'l Inv.
as
investment.
■
OAKLAND, Calif.—National In¬
.and read when I have the time are
Business" published
"Nation's
Chamber
National
by
vestment
been
with offices at 768 Fifty-
formed
in
fifth Street to engage
Officers
business.
ties
has
Corporation
securi¬
a
are
Leon
when "moderation"
recently.
This
Smith, President; Arthur W.
Miller, Vice-President; and Guy
I. Ward, Secretary.
■
G.
Com¬
of
MARSHFIELD, Wis.—Mrs. Al¬
bert J. Rasmussen will continue
forecasts and surveys.
the investment business of the late
Week";
Among the good financial pub¬
I have found "Forbes,"
lications
have
J.
J.
Rasmussen.
Offices
J.
and
Lizzie
Klinker,
Horace
added
been
D.
Creger
staff
the
to
Co.,
&
W.
Stratton
B.
124
of
North
'
Bright Avenue.
,
,
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
Albert
i;
Two With Samuel Franklin
Continues Inv. Business
"Business Week"; "News
"U. S. News and World
■Report"; and "Fortune," particu¬
larly for the
latter's excellent
merce;
Knox,
are
located at 300 South Central Ave.
LOS
215
ANGELES, C
Seventh
West
a
and
Pfeiffer
E.
tactics
sound and helpful. The
vides statistics
formation
also
(and
their
MT.
putting
together
of
the
the
various
facets of financial information and
the
addition
thereof—it
deeply regret that during the four years in which the
Republican party has been in office, no real effort at all
has been made to rid the country of the onerous burdens
that the New Deal and Fair Deal have placed upon the
ties
business
reputation
for accuracy in their financial re¬
porting;
others
there
are
On
for
the
dices.
will
LOS
or
been
Dean
with
&
He
to
the
Co., 632
was
for¬
Ricci
has
been
added
to
Like
Work?
a>t articles
taining
to
(this is the fifth)
"What
Study," possibly
To
Read
you are
per¬
And
-saying to
and almost supernatural persuasive power
persuade the people this fall that return to the ideas
policies of the Founding Fathers—the true Ameri¬
tradition—would be
a
good thing for the country. It
simply does not lie in the mouth of President Eisenhower
or
any
of his leading collaborators to take issue with any
of the
ROME, N. Y.—Mohawk Valley
Co., Inc. has opened a
Roosevelt and Tru¬
more
which
was
vital phases or
facets of the creeping socialism
the New Deal program.
Investing
Can't Lick 'em,
branch office at 108 North James
Street
under
the
management
of
The
Ernest P. Robischon.
branch
the
&
Harrison, 2200
New
Brod
Co.
office
York
as
have
at 25
opened
Join 'em
past three and a half years have been a
striking
adage: "If you can't lick 'em, join 'em." Such a course
a
Broad Street,
City, with Albert T.
resident
partner
and
Solly R. Zimmerman as manager.
Street.
With California Investors
Seem
to
top of the pleadings of
on
it would require extraordinary courage on the part
F.
Thompson, limited
partner in Lamson Bros. & Co.,
passed away July 18.
Rudd
constant study.
If you have followed this series
the programs, the policies and the
exemplification of the old, if somewhat inelegant, political
SACRAMENTO, Calif.—Donald
L.
man,
can
Mohawk Valley Branch
(Special to The Financial Chronicle)
Sixteenth
Does It
Thompson
New Rudd Branch
staff of Richard A.
work and
553
Edward
Richard Harrison Adds
follow
comes
added
Witter
know
This too
Edward F.
merly with E. F. Hutton & Co.
preju¬
to
of
has
tjhose who have this latter reputa¬
tion — by
their deeds you will
them.
at
ANGELES, Calif. —Harry
Dee
South Spring Street.
evaluating
hand,
learn
offices
(Special to The Financial Chronicle)
other writers whose out¬
You
of any group
With Dean Witter
other
put is not without bias
from
South Western Avenue.
staff
conditions.
they have
is
individuals
a
SAN MARINO, Calif. —Jack
Bayliss and Thelma P. Furey have
been affiliated with Shaw & Co.,
and the
ANGELES, Calif.—HarryWolfe is engaging in a securi¬
sions. There
some
than that,
More
preachings of the party have been such that, coming as
(Special to The Financial Chronicle)
G.
are
less
have been cited. The fact is that whatever may
as
2394 Huntington Drive. Both were
formerly with Pacific Coast Secu¬
rities Company.
L.
LOS
only
through study that you will grad¬
ually reach the point where you
can
read the opinions of others
and come
to your own
conclu¬
who have established
111. —Enloe
Harry V. Wolfe Opens
V.
as
CARMEL,
business from offices here.
inter¬
connection—such
or
shoulders of the citizens of this country.
Street.
(Special to The Financial Chronicle)
Wallar is engaging in a securities
pretations) than to try to evaluate
these items myself.
In this
more
(Special to The Financial Chronicle)
finance, produc¬
on
tion, employment, sales, cost of
living etc., but I have discovered
that I would rather rely upon the
<x>mpetent staff writers of reliable
■financial publications for this in¬
things
the
Two Join Shaw Staff
Enloe L. Wallar Opens
Federal Reserve Bulletin also pro¬
is the key word.
digression into
political implications or outcome of this type of
strategy, we think it is extremely unfortunate that the
present Administration has no record which it might use
and would use against not only the members of the Demo¬
cratic party seeking office, but against the entire philos¬
ophy which has dominated that party since the advent of
Franklin Roosevelt in 1933. What we are saying is that
be
"Financial World," and" Barron's,"
to be very
us)
we
1 i f.—Wil¬
Stephen N.
Sobotnik have joined the staff of
Samuel B. Franklin & Company,
liam
(for
political is intended not as a defense of the Eisenhower
Administration, and certainly not as praise <?f it for such
WHITTIER, Calif.—Raimund D.
Alvarado, Peter E. Baumert, Hy
Fishman,
Charles
P.
H a g a n,
Thomas
as
will—and made it doubly
make headway generally.
And, now that the voting day is approaching, the Demo¬
cratic party is at a loss to know just how t6 take violent
issue with the Republican regime unless it be to come up
with an immoderate program or set of immoderate pro¬
grams—and this seems, politically speaking, to be a year
(Special to The Financial Chronicle)
(Special bo The Financial Chronicle)
By
such
.
encourage a feeling of good
difficult for the opposition to
With J. D. Creger
Corp.
.
beyond any tangible change in policy or program. This
attribute of the Eisenhower Administration has helped to
Winslow, Cohu & Stetson, passed
away
.
friendly spirit toward business — at
words go—and a rather indefinable attitude
istration with the result that business has been heartened
,
AND STUDY-
far
so
Friendly Spirit, But
more
far
SEC; interpretation and
the
statistics
the
least
least four hours a day at
security filings
new
on
is true of the record of the;
of moderation have characterized the work of the Admin¬
two hours a
NEXT WEEK—HOW TO READ
much
A
by step.
read
I
paper.
same
Rarely has the Republican regime deviated 3
substantially from the basic ideas of the New Deal
and the Fair Deal. Indeed most of its legislation and much
the larger part of its program were nothing more or less
than a continuation of the general course of the Roosevelt
and Truman Administrations. In certain aspects of'its
foreign policy there has, perhaps, been more of a change
of course than anywhere else, but even there it could
hardly be said that a real reversal had taken place. The
Democratic party tried hard to make some sort of "give¬
away" issue out of certain aspects of the Atomic Energy
Commission work and the tidal oil legislation, but they
could hardly be said to have got very far, so far as the
ordinary man is able to discern.
"
v on the New York Stock Exchange
business publications securities.
Don't become discouraged, don't of which he is still a Director. He
to know what is
going on in the world of business try to become a financial wizard was President of Wabash College
and finance. Read either or both overnight. Approach this business from 1941 to 1956 when he became
of them every day they are pub¬ as a challenge. Take each day step Chairman. He is also Vice-Chairlent
more some¬
took office.
.
will
to us to be
very
you
ity
seem
past three and a half years since President Eisenhower
gain confidence in your abil¬ Charles R. Hook, Chairman of
evaluate and understand, Armco Steel Corporation.
your client's investment problems,
The' office of Public Governor
tgpon the decisions which you and you will spend less time in sell¬
was created in 1938 to bring to the
your clients must constantly eval¬ ing
and
more
in consultation. Board of the Exchange a closer
uate and make. You must enjoy Your sales time will be devoted
understanding of the public view¬
keeping up with this changing to concrete proposals which you
point and interest. The Board is
world—but to enjoy it is to work will submit to clients, either in
composed of 28 other Governors,
at it.
your office or by appointment at the Chairman and the President
Necessary Reading
v
" the client's home or office. There¬
of the Exchange.
The following is a list of pub¬ fore,'f ou will have more time for
Dr. Sparks, who was born on an
lications
that
will keep
you reading and study. It is through Indiana farm in 1891, was a cothis type of reading that you ob¬ founder of the Indianapolis Pump
posted every day: The "Wall Street
Journal"
and
"The Journal
of tain IDEAS. It is IDEAS that you & Tube Company, now known as
Commerce." Both of these excel¬ are selling
and proposing, not Arvin Industries, a company listed
ending stream of changing events
that are constantly bearing down
;S-5VS:ySi
thing for candidates to talk about who have nothing much
to bring to their constituents.
and
sufficient (and I believe you can be both) as
a Public Governor.
Other Pub¬
background through study, and you should remember that as you
lic
Governors
are
Charles
E.
constant application to your job
grow in knowledge you will ab¬
Wilson, a Trustee of the Ford
by daily applying yourself to the sorb knowledge more rapidly and Foundation and former President
duties at hand, you will still need retain it more readily. Also, as
of General Electric
After
See
We
tainly without strong opposition from the Republicans of
Congress, though against the wishes of the President) suc¬
ceeded in passing legislation which it hopes will' mean
votes for it in the autumn. These, hov/ever, are
hardly
of Crawfordsville,
Ind., Chairman of Wabash College,
Hugh
be alright
yourself,"That may
ARTICLE V
'
I
.
page
As
President of the
Exchange, has
election
the
announced
Salesmanship
Fundamentals of Security
»
Stock
York
New
-
.
(404)
(Special to The Financial Chronicle)
Staats Opens New
PALO
R.
Staats
ALTO,
&
Co.
Branch
Calif.—William
has
opened
a
may or may
not have been deliberately charted with this
in mind. It could be that leaders in the
or
some
of them, became victims of
ments of modern collectivists and
no
reason
sincerely
a
to
doubt
that
Republican party,
the seductive argu¬
authoritarians. We have
President
Eisenhower is
quite
believer in the sort of "middle of the road"
DIEGO, Calif. — Leonard
Lafferty is now connected with
branch office at Town and Coun¬
philosophy that he preaches and practices. It is, of course,
try Village, El Camino and, Em-
in the middle of
California
barcadero, under the management
SAN
America
Investors, ' Bank
Building.
of
of Frank G. Plaisted.
'
or
some
no
road except of
that creeping socialism
other sort of society quite
foreign to American
.Volume 184
Number 5554
;.
.-The Commercial and Financial Chronicle
29
(405)
tradition. But such facts
to devoted New
as
these
to be
seem
nothing
as
Dealers.",*'•**v''r
of
A Poor Record
;
Think of it!
•
Nearly four years
and the system of
soaking the rich
other things is still with
of
Republican regime,
a
in taxation and in most
repeal
us;
been
even
men¬
known, considered; the extensive and
costly social security system is not only still with us but
as
has been modified (at Administration
initiative) in
to
lay staggering burdens
future generations;
a
way
variety
stilj on the statute books,
laws, policies and programs initiated by
on
a
of unfortunate labor enactments
and
dozen other
a
the New Deal and the Fair Deal still intact and
ing vigorously!
proceed¬
V-?,--"i
.
How
disheartening to the thoughtful citizen who had
vainly hoped that at least some sort of beginning would
by
have been made in
now
of
this
a
return to time-tested
policies
Hobson's
It will evidently be another '■
thoughtful voters.
country!
from
7
page
Reflections
the Dangers of
The Present Economic Situation
on
of this debt has been
and
the
attempt
1%
even
to
repaid
consolidate
thereof has
failed.
The
debt survives under the euphemis¬
tic
name
"treasury bills," typically
ever-renewed
notes
whose
re¬
demption can be thought of, if at
all, only by the sharpest reduction
in the value of money.
(10) Who today still remembers
the time, four and
when
ago,
System
the
Federal
created?
was
at that time
half decades
a
Reserve
The
notes
issued by banks
were
of the several states, on the basis
of their public (not federal) debt;
the government; for good reasons,
wished
to
tie
the
issuance
of
the
money
to
trade. Now
The state and the
ployer
once
the basis of the monetary system;
hundred times larger;
and they have even found theo¬
retical justification. As the Dutch¬
are
a
Pinto
man
poleon
the
in
III
in
18th, and
the
19th
Na¬
century,
well-known economists of
our
regard
asset
state debts
as
an
the economy.
To
these
interest
,
fluctuate
rates
to
debts
in
grows
declines
depression and
a
when
but in reality
business
is
good;
precisely the
oppo¬
site is true
because, as has already
mentioned, the upswing con¬
been
increases the" tension
stantly
interest
tween
pated profits.
construction
and
rates
antici¬
frighteningly large
in the deprecia*
a
group interested
tion of money.
Vis-a-vis
used
state
be¬
Stock market debt,
debt, consumer debt
—they create
ally
•
.
these
to
interests
-
the
protect the value of
whose
between
to be shared by all.
came
its side stood
the
By
of great
owners
the managers of modest for¬
tunes—insurance, saving and pen¬
sion banks—furthermore, the in¬
dependent
middle
classes
and
and
farmers.
With
last
exception
of the
two
named, the situation is
all
the
with
have
now
moved
the speculator,
leading the way.
of
camp
the
In
others
state
with
contrast
England, the
in the world today
IV2 and 2%%, and which have the
leading
character of
lacks the tradition of stable money.
notes,
ber
must add
we
of
interest-bearing bank
large
a
num¬
industrial
acceptances, for
companies running up to a
some
billion
dollars.
This
form
fi¬
of
nancing has always been consid¬
ered especially dangerous, since it
power
it
Strange
as
debtors
were
majority already in the 18th
day is greater than ever.
shares only the outward form, but
free
debt
not the essence of the commercial
century,
is cheap
justification.
We
have
financing with¬
thus
to
deal
with
cen¬
of
at
,
the
And the
still
turn
almost
em¬
com¬
par¬
liaments)
and
governments
obey
The government must pre¬
them.
crises; it must guarantee eco¬
nomic stability—and beyond
that,
guarantee full
employment; but
even
this is not enough: it must
concern itself with
perpetual pros¬
perity. It must do it, it can do it,
therefore, it shall do it.
,.'■/■
These
the
are
slogans of our
There is but scant difference
between East and West as regards
faith in the omniscience and om¬
day.
nipotence
of
the
state.
Freed
of
the
accuse
of
men
1930
of
inade¬
market totally different in
hears, here and there, official
to the contrary—un¬
fortunately
mere
words
which
character
times;
based
one
from
infinitely
to
skyscrapers
swamp.:'
;
,
of
build
on
,
earlier
and
extended
debts, it is
upon
were
This
-that
as
ever
though
higher
foundation
a
/
;■
of
'/■'
comparison is offered with
utmost seriousness, and I beg you
to believe that I did not formu¬
late it lightly.
has altered
30
years
than
precpding
would
within
more
in
course
millions
not
like
the
to
of
say
past
of
years.
the
I
anything
drast'c of the current economy,
so
but having presented the analogy
the last crisis, I must point to
certain changes which have barely
of
penetrated
our
a
consciousness
of
contemporaries.
(11)
the
the
interests
in
bullish market formed
favor
a
of
sizable
group: among them were the busi¬
the
trade
unions, the
majority of traders and above all,
nessmen,
the
debtors.
in order to measure
inflation.
have
we
they could have avoided
small
today,
the crisis.
inflationary
Stable currency has
thereby lost
Jobbery and
inflation has shed their age-old
ill-repute and become respectable.
And
a
good
proportion of the
scientific gentlemen have adapted
their theory to the prevailing cli¬
The
mate.
tax
has led
structure,
even
the
big capi¬
New York Stock
sive
The
federal
$190,000
$8,000
income
of
owner
an
only
$25,000,
of
out
tax
leaves
income
each
up
and
only
additional
Investment funds for the
$100,000.
most part
can
corporate surplus
financial
institutions;
individual
dependent
for
source
and
up,
as
capitalist, however, is
on capital
gains as a
investment funds
as
for any increase of income
property. If this source dries
his income will yield him no
more
than
living
This
rigidity
wages,
Small commission for
a
adds
to
a
the
new
element
economy:
which allegedly
of
and
did not
fidence shown in their
un¬
successors.
l, Recognition in Europe
The
European continent knew
the price of inflation all too well.
exchange of
bonds
for
equity. Here, at the most sensi¬
tive juncture, the
inflationary ef¬
fect is unmistakable, v,"-,.
(c) Two other groups admit the
existence of inflation, but declare
it to be
only
harmless,
or
means
America,
country
possibly incur
in
question,
failure.
wage
share in
itself
boom.
since
war,
would
tion.
inflation
finish
As
by
task
of
destruc¬
value of
destroyed
nations.
great
To
the
conti¬
Englishmen
and
Americans, who would not
acknowledge
the
relevance
of
other
people's
experience,
devaluation.
from all too
That
this
.
Mirabeau
invaded
called
it.
has
also
now
the
country of all our
hopes is among the most painful
of our experiences.
will
be
raised
this
against
view:
(a)
hand
one
there
are
avoided
the
war
to what may at first seem like a
paradox, the d°mand for agricul¬
tural goods is limited bv the pur¬
chasing
power of the population;
demand for war goods is in
the
principle
unlimited.
termined bv
other
time in
—on
de¬
not.
For
the
second
generation the farmer
one
both
is
economic calculus,
an
is
One
sides
of
the
iron
cur¬
tain—is being made the victim
of
prosperity. This contains the seeds
of
goods
are
of
infinitely
greater importance than consump¬
tion goods.
And here orices have
risen fantastically, within a very
short time span.
nomena
high
of
prices
the
"Grunderjahre"—
with
—
poor
will
quality
make
of
them¬
selves felt for some time to come.
(b)
of
On the other side, the fact
inflation
is
met
by
the argu¬
it
until
and
considerable
tunes have
idly, and
has
generally
its thoughts in
quite extensive
is
it
now
*
not
express
public, but
has
met
with
Great
success.
for¬
been made
the
quite rap¬
of adherents
times.
It is
circle
increased
many
undeniable
that
the
persuasion
can
argue
of
men
this
strong
a
large groups in the country
enjoying the inflation; even
a strong
enemy, they
case:
are
in the face of
to
them
celebrate,
and
courage
their
from
show
to
ment
we
may
as
regards
such
govern¬
courage—and
the
express
same
doubt
governments
many
other than the American.
;■
(15) In Europe, 35 years ago, I
an
active battle against,
governments in which X
waged
several
advocated
immediate
anti-inflationary
drastic
and
Their
hardly
convincing—for the real basis of
their
opposition lay
elsewhere,
such
measures.
arguments
-
were
have to be carried
measures
through and the responsibility for
them
be
must
taken
by the gov¬
of the day, but the final
of the inflation are
chalked up on the successors' slate.
strong in election years.
narrow
a
where
range,
some¬
it
to
illusions
back to the grim reality
One cannot trust the
consequences
motivations
It
are
particularly
S
2%%.
How marvelously different is this
(so say the proponents of this doc¬
trine) from the "dark ages"—those
without saying that no
government will admit to the ac¬
tual state of affairs; and gener¬
ally any attempt to invoke brakes
barbaric
will be met with
between
times
1V2%
like
and
1929
1907,
or
when the rate for call money rose
to 20% or even 100%.
Above
all,
however, according
this view, the government now
to
how
to
the
manage
econ¬
omy—by wage increases, subsidies
guarantees—so
suffer
the
inflation.
Its
have
were
' /
one
an
of
~
'
one
initiate
to
no
true,
/
But if this
not
that
consequences
inflation.
effect,
after all, rests on the
more or less complete expropria¬
tion of several large groups.
"Whether
show.
never
in
But
leading
the
not
or
balance
of
position is indeed un¬
only the
future
will
payments
shakable,
light
political
be
too
of
America's
position,
it
It has
strong.
the
can
gen¬
escaped
attention that
Switzerland, Holland
and
West
erally
America's
population, have as
much gold as America (exclusive
of foreign holdings).
The fifth group, which can
as the realists, is the
most extensive one. They frankly
be described
admit
and
existence
the
do
not
of
themselves
concern
with whether it is
a
inflation,
blessing
or
a
since they consider it un¬
avoidable. It is popular and easy,
they argue, to initiate an inflation;
it
is difficult and unpopular to
apply
the
thought
would do
brakes.
that
the
It
had
been
Republicans
it, but the hope was dis¬
appointed; both parties will con¬
tinue
to
create money
by this
a
comment about
dangers! of Communism.. Al¬
ready in the last crisis I character¬
ized
this fear
wholly baseless;
as
and since then Bolshevism has ut¬
terly lost its appeal, having shown
incapable of solving any
itself
Which
problem.
all, would
nism
and
Asian
and
American, after
out for Commu¬
thereby
for sharing
prosperity
with
the
come
African
masses?
(16) But why, ask the optimists,
one bring on the crisis pre¬
cisely from fear of crisis?
Is nut
inflation
preferable, so long as
one
knows how to manipulate it
so
precisely that one need feel
only its pleasant effects?
And
should
could
not America extend
the in¬
Pro¬
believes, or to
the
Day
of Judgment, as Mr.
Slichter predicts?
flationary
state
to
1970,
as
Baudouin
fessor
Such
Germany together, with only 40%
of
goes
American
would
curse,
This, incidentally, holds true for
the entire West. The typical phe¬
to
prone
simple
steps.
be¬
money:
I
is
group
ernment
(d)
crisis, not of strength.'
Capital
This
within
need
of
be
can
of
circulation.
retrenchment
few
a
afraid
Such
and
oarticularly
boom
velocity,
money
are
;soon as any comes into their
hands, they are in frantic haste to
invest it; and even more rapidly
they invest all borrowed funds.
As is generally known, borrowed
money has the highest velocity of
counter
—
tion, by pointing to the stability of
food prices.
The same thing hap¬
dustry,
by
the
the
or
in
they
as
The chief weapon is the discount
rate
which
will
be
effective
those who deny the fact of infla¬
sector. This is due not only to ob¬
vious technical reasons, but rather
the
'
setback;
knows
On the
dol¬
That is why, this group argues,
American "Government
can
(14) In America, several objec¬
tions
the
the
nomic
rejected this
ignorance but
thorough familiarity.
"raging
plague,"
as
of
increase
cause
wrest
calmly intervene with inflationary
money at any threat of an eco¬
stemmed
from
value
gold.
infla-1
They
not
the
of money, no rate is
high.
The adherents of this
group contribute decisively to the
like
interests
Vienna,
devaluation
considerable
the dollar determines
but
pana¬
as a
but not to people who had so
recently experienced the painful
blessings of permanent monetary
cea;
nostrum
determines
in
too
takes
inflationary
today gold no longer
And
known
occa¬
only
export
well
would
American
an
lar
three
the
too
London and especially Paris.
To him who foresees perpetual
With
any such attempt to
The entire West wants to
had
of
dollar
doom
still all too fresh in
it
bourgeoisie
nental
the
was
memory,
to
the
discount?
disappeared. In Switzerland, the
only country which could come
sia, and Lenin bragged that Com¬
have
could
a
sionally; the discount was never
particularly high, and it has now
munism
not
Vis-a-vis
this happened
wouM
would
all
'
useful.
even
inflation without any dan¬
ger; the other group suggests that
the government can
always invoke
measures to control it.
"..-J7.;...V:^"
In
other
countries/ inflation
It had created Bolshevism in Rus¬
besides
may
an
C*na^a
of inflation
construction
expenses.
by
rose
This cannot be
explained merely by a transfer of
holdings from cash to. securities
which
and
the
preferred shares,
less than 24%.
no
governments of those days; but the
therefore be drawn
only from
from
to
of
Exchange, exclu¬
accusation is as unfounded as is,
unfortunately, the degree of con¬
the
the
production
derstand how to administer it.
I have no reason to defend the
more¬
talist to shift sides.
American
by 7%; after military equip¬
ment has been
subtracted, by
roughly 5V2%. In the same period
the prices of stocks listed
on
the
that the international value
of
their
currency will slio—but
this is held to be
impossible in
the
case
of
contradict reality.
its strongest support.
1955
rose
pened in 1928. Numerous branches
well
Already in earlier cycles,
various
as the
basis, we must still
contrast them with
security values
In
the bit¬
see
end.)
The policy of this group is to
liquidate cash and bondholdings;
to invest capital in ventures and
stocks; to borrow extensively with
the intent to liquidate these debts
in devalued money; in short, to
adopt the entire range of practices
creases
afford
knowledge
of agriculture cannot keep uo with
the rapid development of all in¬
over,
Hans Freyer, in his theory of
the present epoch, came to a curi¬
ous result: the surface of the earth
but would not like to
ter
the
reassurances
money
good.
What is important
really production itself, but
salability of goods—surely two
crucially
different
things.
But
even
if, for purposes of simplifi¬
cation, we take production in¬
One group says that in
light of
America's ruling position, it can
this
of
carries a gigantic
burden, sharing thereby the in¬
terest of all debtors.
Occasionally
nomic
quate skill in handling the mone¬
tary system and to claim that with
\
The inflation will
is not
or
all
now
one
a"
are
inflation;
vent
tury, and their preponderance to-r
government,
note—it
here
sound,
may
in the overwhelming
federal
out
indivdual,
employee,
tion could be presented
the
altered;
into
,
bills,
treasury
day
and
mitted to perpetual
ened
simple device.
run
its course, precisely as else¬
where, but in America it will takfe.
longer. - (Men of 70 likq to give it
10; men of 60, 20; and men of 50,
30 years, since they can envision
military equipment
in total output—arid
this, as has
already been stated, is not an eco¬
the
infusion, it
:0A Paradox
^ is held, is all that is required to
master any situation.
In the 30's,
Here we have a paradox: one
it is said, they were
overly fright¬
would think that the volume of
money;
the English century-old
of, tradition of honest money gradu¬
requirements
again debts, then
in such ill repute, have been made
they
■
Within
limit.
A
none
capitalism.
pretense, the program means
simply: economic stability at the
cost of monetary
instability. And
since slumps are taboo, inflation
is the fashion of the day.
(13) It is currently proper to
choice this fall for
Continued
individual
the span of barely half a
genera¬
tion, the income tax has already
been
exploited to its outermost
important
even
or
modification of the Securities Acts has not
tioned or, so far
be raised, but never
lowered, we - ment that production is growing
now
have
capital gains.
They proportionately. But this calcula¬
represent almost the last remnant tion includes
a
policy recommends itself
by its popularity; whosoever gees
against the current will end as a
martyr—and nowhere on earth is
there
role
less
than
inclination
in
America.
to
such
a
Therefore,
why not permit things to go on as?
they do, since everything seems
to be in such good order?
The
political situation, it is commonly
thought,
event;
will
not
change
in any
it seems likely that for a
long time to come one will con¬
tinue to prepare for a war that
will in fact never be waged. The
situation therefore is thought more
secure than in any previous period
of
This, in sum, seems
Continued on page 30
prosperity.
The Commercial and Financial Chronicle
30
Continued
from
29
page
Reflections
:
to be the
public opinion of our day.
But is
advantage to
determined by
political rather than economic ele¬
ments?
Can its development be
predicted more easily when it
hinges on decisions of a few in¬
dividuals
whom
nobody really
it, I ask,
prosperity
have
an
knows?
The next few years will be
„
de¬
termined
by the fate of the Rus¬
sian revolution. Here no possibil¬
ity can be excluded; the West
must be prepared for any contin¬
irrespective of whether it
gency,
eventually
to
or
war.
comes to disarmament
It is assuredly not good
when the market must tremble at
the thought of disarmament. And
nothing
for
be poorer preparation
than the speculative cli¬
can
war
mate, with its aversion to
and bonded debt.
money
Inflation before
war—this, in effect, is to
der the ultimate
ing
in
war,
a
of financ¬
means
order
squan¬
to
win
an
election.
To start
inflation is easy,
an
stop it is immensely difficult,
to
par¬
tion.,
Refrigeration Shares
On
".V-V
.
That the same holds true
is
has
ever
been
permitted to
rule
with
as
little justification as at
present.
Since, however, a healthy cur¬
rency
is no less important for
waging war than are modern arm¬
aments, the American Government
afford
cannot
let the currency
to
down; it has to interfere be¬
run
fore
wide
circles
gripped by
are
loss of confidence. The later this
ting
112,361 in the preceding week, "Ward's" said the auto industry is
;
little in the way
■■•.»
but in
late
conversation with
a
as
me
1928, Keynes emphatically
as
expressed the contrary conviction.
Be reminded of Anatole France's
is
who
monk,
so
pleasantly
ab¬
of invasions
the stories
that
does
he
cloister has
Crises
and
his
that
notice
not
just been invaded by
when—
precisely
come
because
the
—
of
mass
will not believe in them.
the
increased
as
and
Heller
&
senior
Co.
*
levels
other
Not, of course, as the Marxists
claim, because it lies in the nature
of the capitalist system.
It could
be avoided, on one in¬
condition:
dispensable
That the government
renounces
its fear of the public and finds the
to
courage
its
express
convictions.
mocracies
(a)
of
act
in
time,
our
upon
the
de¬
to
seems
longer possible.
no
me
and
This,
The arrogance
the
of
em¬
ployers and the trade union leadr
ers' greed increases with each in¬
flationary wave; both permit
themselves
be
to
comfortably
by
carried
ever
to
a
leader
The
obedient
Heller is
1919,
the
industrial
a
finance
field, specializing in the financing
of
sales and other current opera¬
tions
purchasing
ceptances
The firm
and
also
advances
or
instalment
makes
paper.
direct
against
loans
inventory,
machinery, real estate and other
assets.
Heller's net assets at March 31,
amounted to $19,900,000. Its
short-term
and
amounted
ness
$89,000,000
on
funded
to
slaves of the
Schweke
"inflation¬
ists"; at each new step they call
out, just like the nursemaid to the
baby, "only once more and that's
E.
a
Schweke
Mr.
with
Securities Corp., 331
rine Boulevard.
Out
of
a
baseless
fear
venes.
communism, the serious danger of
the situation is being
thoughtlessly
accelerated, while every attempt
to
reverse
the
trend
in
time
B. C.
Bache
was
&
Marshall Co. Adds
Jr.
Wis.
is
sabotaged.
KANSAS
Pfaff
Water
,
t
:
opher
is
a
case
America,
today
but
not
America
only
leads
the
our
contemporaries will not
a jump into the abyss, we should
at least presently pinpoint respon¬
sibility for the coming catastro¬
phe. If the public lacks insight,
who
should
rule
it
lack
courage.
F.
of
65
following
a
Exchange,
24
at
the
age
Dormand in Sees. Business
(Special to The Financial Chronicle)
CLEVELAND, Ohio — Vincent
Fiebig has become connected
use
with Suburban
of
niques, if at all
inflationary
a
Co., Inc. is engaging
securities
at
509
business from
Fifth
of-,
Avenue, New
York City.
necessary,
Fountain
are
and
Wil¬
engaging in
a
37 Wall
Street, New York City.
Form Research Mut. Corp.
Wick
& Co., Union Na¬
Building, members of
the New York and Midwest Stock
date, July 1 to July 23, at $831,000,000. It said $660,000,000 was
steel product sales, $150,000,000 in steelworkers' -wages and
-
.
;
Research
has
50
been
Broad
>'
-
.
"Steel" said companies are encouragm« vocations
their
white- collar men while the strike is on, but there doesn't seem
to be much pressure on an industry-wide basis. Some have started
training courses/for supervisors and executives. A few companies
adrpit the possibility of furloughing some salaried workers, but
only as a last resort. . / •
:
■
/
>r
mosl/steel
and
users are
General Motors."
\
Mutual
formed
Corporation
with
offices
at
Street, New York City
to engage in a securities business.
-
-
.
./
though steel production has almost stopped, the maga-?
zine reported expansion plans continuing.
It said to look for a
Federal move in a few weeks to establish a new goal for struc¬
Even
tural and to enlarge the one for
Jack
Sarbin has become connected with
should Exchanges.
J.
Scott
securities business from offices at
(Special to The Financial Chronicle)
—
S.
.
.
Eugene
liam
YOUNGSTOWN, Ohio
: • 1
:
dollars and
be satisfied
their $100-a-week pay
having to exist now on their in¬
ventories, a few/continue to receive shipments. from unst^uck
mills. Steel for-some of their suppliers is being furnished by Ford
Fountain & Scott Open
Co., 732
Butler, Wick Adds
to
While
East 200th Street.
tional Bank
tech¬
Securities
the 80-dav injunction of the
popular voice not to be forgotten is the members of the
Steelworkers of America. Even with "payments deferred
$21,000,000 in other wages.
Trade
in
-V>
Steel-using plants closed for the duration will jump from 2.5%
to 15% the first 15 days of August.
Between Aug.. 15 and 30,
another 10% will close. The publication estimated the strike's cost
in
brief illness.
Christ¬
of
A
United
checks again.
member of
a
Stock
July
away
Dormand &
Butler,
Resume
The
Board
C.
York
of Capacity
until the strike is over" by the finance companies and
food from the union fund, the workers probably will
H.
let themselves be restrained from
those
Co.,
Mo.—Karl
B.
New
fices
in
West.
If
&
with
Joins Suburban Sec.
tenet of economic theory. This
the
CITY,
now
.
Taft-Hartley Act could be invoked so as to put the steelworkers/
back on the job just after the convention starts and keen them
there until just after the national elections.
But, it pointed out
that the administration wants a settlement, not a postponement.
<;
connected
Company, 765
Street.
George A. Dixon
passed
Building.
(d) An impolitic demand for
full employment has been elevated
tQ
is
dropped
-
with their vacation and looking forward to
the
June
13 when the Democratic national convention con¬
Otherwise, it commented the Democrats would have good
„
Alvin
—
is now
The Marshall
North
George A. Dixon,
Christopher Adds
in
the second time this
This was 2.6% above the similar 1955 period with a total
The metal working magazine said
Ma¬
(Special to The Financial Chronicle)
incorporations
talking points about industry and labor suffering trader a Repub¬
lican administration "dominated by businessmen."
If the steel
industry is back at work on a strong basis bv convention time,
the Republicans will be able to point with pride at a record of no
interference by government in the internal affairs of management
and labor, it pointed out.
,
•r* :
r
"
(Special to The Financial Chronicle)
of
business
previous month, and for
strike by Aug.
A.
all."
(c)
new
Steel Output Expected to Rise to 15.6%
In Fourth Week of Strike
Co., de
Pontet & Co., Inc., and Osborne
& Thurlow in New York City.v
Bucnmann,
JACKSONVILLE, N. C.—Floyd
Page has joined the staff of
of
of the
of 174,357.
associated
become
MILWAUKEE,
Eastern
that
Despite the June recession, the first six months of 1956 set
new all-time high with 76,257 new business formations for the
period.
Farrell, Inc., 119 Mo¬
Avenue.
nona
with
in May
.
,
Robert
—
(Special to The Financial Chronicle)
but
are
Wis.
has
with Bell &
that date.
(Special to The Financial Chronicle)
governments
MADISON,
approximately
$70,889,351
from
to
indebted¬
Joins Eastern Sees.
29.0%
down
Stop-strike forces are gathering in the steel walkout, "Steel"
magazine stated on Monday last. The heat will be on to end the *
(Special to The Financial Chronicle)
raoid
thought
was
one
formerly
1956
This
from $99,080,484 in June last year.
June numbered
Joins Bell & Farrell
making advances
receivable, notes, ac¬
.
fell below the level of the corresponding 1955 month, accord¬
Dun & Bradstreet, Inc. New concerns c hartered during
11,952, a decline of 9.1% from 13,142 in May, and
5.2% from 12,605 in June a year ago. The June count at 11,952,
was
the smallest monthly total since last December.
^
:
ing
roof, provide more ef¬
ficient materials handling equip¬
ment and multi-purpose produc¬
tion equipment.
;
or
accounts
on
total valuation of
year,
These
manufacturers, distrib¬
dealers and merchants by
the
Declines from year-ago
Atlantic and Middle Atlantic
'greatest in the South
rate
The
gregating
under
a
„
49.2%
below
approximately
machinery and
of
utors,
to the end.
<b)
in
in
on
off 36.1 and 34.0%, respectively.
.
,
New York City alone, building plans during June amounted
$50,349,355.
and
eventually to house all operations
corporate purposes.
Organized
were
For
v,
equipment.
along
more
currents, without giving
F. Eberstadt & Co. Pro¬
the sale of the notes,
building permits for 217 cities had
groups,
capital expenditure! ag¬
approximately $3,000,even today it would be quite high
which are due in 1971,. will
be 000 represent the first phase of
used
enough.
by the borrower to fund the company's improvement and
Now you will doubtless ask me: short-term indebtedness and for expansion
program
designed
tiated by
cars
all-time monthly high of $634,030,839.
an
quired 75 acre tract of land of a
modern
plant
containing
270,000 square feet of floor space
at an estimated cost of $2,500,000
new
new
nearly 250,000 the reduc¬
added, however, that the
days' supply of cars is the more normal criterion of inventory
strength.
"
]
*
* i '
*
Boosting auto production this month are Ford Motor Co. and
Chrysler Corp,, the latter producer apparently aiming to recouo
output losses encountered during June. Ford, of course, several
weeks ago announced an increase in output schedules for July.
June
new,
$500,000 for
of
$558,856,212, according to the latest survey by Dun & Bvadstreet,
Inc. This was a drop of 6.2% from the May figure r>f $596,114 034
and 11.9% less than in June 1955, when permit volume reached
Austin
Private,, placement with insti-a
and plans to spend
tutional
investors
of
$8,200,000
inventories
pared with 125,000 in June, swelling to
tion in inventory since early May.
It
Cleveland, Ohio, for the construc¬
tion
in 1956 on a recently ac¬
Places Notes Privately ,
end-of-month
.
has
contracted
Company
of
company
The
.
.
days' supply basis have increased in July compared with June.,
V
The reporting service added that in terms of actual units some
60,000 cars may be taken out of dealer stockpiles this month com¬
either on a construction loan
on a long-term
basis,
or
on
dealer
1950
since
pany
The
Walter E. Heller t Co.
E.
a
capital requirements.
It is an¬
ticipated that such sum of $2,000,000 can be borrowed by the com¬
,
hand at end of June.
^
.
»
.'
statistical publication noted, however, that such
turn of events would not be contra-seasonal, since in each year
days'
The industry's
inventory required:
of
expanded
sales
for
other working
result
a
volume
over
from the 34
balance will be used to carry
the
with
Walter
that
and
below
described
tures
men
\
1
ceeds from
Under the given circumstances:
Yes!
June against a projected 9% fall-off in sales, promising
of reduction in terms of days' supply of new cars
put
finem!
promissory notes has been nego¬
crisis unavoidable?
moving "on target" for 450,000 assemblies this month.
Such volume would match a 4% increase in entire July out¬
American economic
of sound currency—and I fear that
a
"Ward's Automotive Reports" stated on Friday last.
that United States passenger car completions are
at an 11-week high of 113,727 units last week against
Noting
scheduled
no
happens, the higher the price that
will be exacted for the protection
is
Rising factory output and seasonably declining sales are put¬
a temporary brake on the auto industry's inventory reduction
program,
executive
and
plants
Its
poses.
9% in the cities.
Their rise from 1955 amounted to 28%, as against
Copeland
Refrigeration
Corp. at $15.50 per share.
of
justification for offices are located in Sidney, Ohio.
policy. Respice
The net proceeds from the sale
v'v of these shares will be added to
One often tells me that my di¬
the general funds of the Copeland
agnosis conflicts with the opti¬ company and will be used by it
mism of almost all professional
for such general purposes as the
business cycle experts.
directors
may
determine. It is
That was also true 25 years a?o.
presently anticipated that a por¬
Was the crisis predicted by Mit¬
tion of the net proceeds will be
chell, Schumpeter, Spiethoff, Ir¬
used, in conjunction with the pro¬
ving Fisher?; Of Keynes, his biog¬ ceeds of a
$2,000,000 loan to the
rapher tells us he did foresee it;
company, for the capital expendi¬
Russia
for
barbarians.
a
principally from general builders.
More business succumbed than a year ago in all geographic
except the New England and Mountain states. Non-metro¬
politan districts accounted largely for the upturn from a year ago.
,
areas
Copeland Refrigeration Corp.,
organized in Michigan in 1933, is
a major manufacturer of refriger¬
for the purchase of securities.
ation compressors and condensing
The inflation is veiling a fact: units
for
air
conditioning j and
that America is living beyond its commercial
refrigeration
pur¬
means.
upturn in service failures
The construction increase
The
came
(par
shares of common stock
000
$1)
higher.
centered in the business and repair lines.
group
a
,
the most drastic emergencies; but
it is difficult to believe that it
for
July 24,
ranged;40%
casualties
publicly offered an issue of 125,-
system
of cheap money
must be totally renounced.
The
rates for borrowing money should
be based on the real rate of in¬
terest.
;
1 *
i
<
There should be no borrowing
The
democracy.
One
may quarrel about whether it is
a
permissible remedy for all but
ticularly
Continued irom page 4
Baker, Simsnds & Co.
of invest¬
ment bankers, headed by Baker,
be limited strictly to war produc¬ Simonds &
Co., Detroit, Mich.,
sorbed in
a
Thursday, July 26, 1956
.
Group Offers Gopelaud
the Dangeis of
on
The Present Economic Situation
a
..
(406)
months is
try.
.
a
plates.
Coming
up
in about six
study of fast amortization for the whole steel indus¬
Most projects aren't eligible now.
The
American
Iron
and
Steel
Institute
announced that the
operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry was scheduled at an average of
Volume 184
Number 5554
.
The Commercial and Financial
Chronicle
.
.
(407)
15.6% of capacity for the
Q
week
beginning July 23, 1956, equivalent
385,000 tons of ingot and steel for
castings as compared with
and 377,000 tons (revised) a week
ago.
to
industry's ingot
is based
annual
on
.For the like
production
rate
for
the
capacity of 128,363,090 tons
week
month
a
the rate
ago
weeks
of
as
was
in
Jan.
Wheat
pro¬
ago the actual
weekly production
90.7%. The operating rate is not
comparable because capacity is
higher than capacity in 1955. The
percentage figures for 1955 are based
on
annual
125,828,310 tons
as
capacity
of Jan.
1, 1955.
on
at
11,125,000,000
Electric Institute.
This
was
comparable
in
/"
increase
an
previous week.
kwh.,
of
according
505,000,000 kwh.
1955 week and
2,022,000,000 kwh.
the
over
1954.
Car
Loadings in the Latest
Week
revenue
freight for the
Bookings
' .:•••'
of
the
price
the
like week
cars
units, an' increase of 1,536
output, states "Ward's."
La«t week's
by
output
units
above
were
week.
amounted
Cotton
was
the
last
and
27,338
past
preceding
week's
assembled.
cars
prices displayed
in
While
facturing
the
The rapid
terially at
Dun
&
industrial
Bradstreet, Inc.
251
failures
in
The toll
the
declined
nrecedir,g
remained
However, they
Failures
were
223
in
The
the
liabilities of $5,000 or more fell to
189 from
but exceeded the 140 of this size
group a year ago.
Although small failures with liabilities under
$5,000, declined to
34 from the 49 of the
previous week, they remained higher than
the 32 of a year
ago.
Liabilities in excess of
$100,000 were in¬
curred by 12 of the
failing concerns as compared with 16 last week.
in
wholesaling, where the
struction
and
all
toll
commercial
industry and trade
to 24 from 21.
rose
service
businesses
but
ago,
yearly decreases were reported
wholesaling. ./'• +//((-.+;■ 0'//
/+.//+
f:?
V
■
~
in
groups
More
failed
except
retail,
than
con¬
and
States.
year
-
Wholesale Fo^d
Price Index Dips
2.6% From
Like Period a Year Ago - .•
■;,./+ * -
:
and
compared with
$6.06
on
week
a
earlier
and
the corresponding date
year
Moving
up
in
wholesale
cost
last
week
oats, barley, lard, sugar and hogs.
cheese, coffee, cottonseed oil, cocoa,
rye,
bellies,
lambs.
'■
were
'
a
ago.
flour,
potatoes
and
sum total of the
price per poupd of
foodstuffs and meats in eereral use and
its chief function
is to show The general
trend of food prices at the wholesale level.
raw
Wholesale
Commodity Price Level Turned Irregularly
Lower the
The general
week
following
daily
wholesale
earlier
Weekj -•*.
commodity price level showed a slight drop last
irregular movements during the period.
The
commodity price index, compiled by Dun &
Bradstreet, Inc., fim-b^d
week
Past
and
273.04
at 286 87
on
the
on
Julv
17,
against 287.51 a
corresponding^ date last .year.
as
plants
located
in
1955,
industrial
revenues
and
agricul¬
48%, agri¬
cultural, industrial and food proc¬
essing
machinery totaled 35%;
and military
products accounted
for
17%.
In
the five years from 1951 to
consolidated net sales of the
1955
and
company
creased
74%
$264,619,766
creased
its
subsidiaries
in¬
from $151,849,843 to
and
53%
net
from
$14,881,575.
for
income
in¬
$9,745,779
the
Sales
and
to
revenues
quarter
ended March 31,
$69,928,120 compared
$61,885,315 for the compa¬
rable 1955 period and net income
on
in
year
^
increased
of
consumer
stores
and
con-
V
volume
of
retail
was
3
summer
trade
to
apparel
+4 to
in
7%
Beachwear,
sales
held,
lingerie
apparel
the
GRAND
a
well
year ago were
women's
cotton
the
on
411
With Merrill Lynch
(Special to The Financial Chronicle)
FT.
LAUDERDALE, Fla.
E. Green
mer
Lynch,
is
Pierce,
—
El¬
with Merrill
now
Fenner
&
Beane,
1311 East Las Olas Boulevard.
oast
Joins Columbia Sees.
sometimes
dresses
-
Main Street.
ago,
year
^
Colo.
Peters,
fre¬
ended
a
JUNCTION,
James I. Geddes has become affili¬
ated with Harry W.
ma¬
were
period
higher than
remarkably
up
and
.
(Special to The Financial Chronicle)
+8%.
Gains in volume compared with
to
period.
Harry Peters Adds
un¬
some areas,
of
$3,226,298
same
strike, retail volume for
buying reduced inventories
stock
frpm
$3,916,510 for the!
manu¬
a high level with
Although the weather was
ago.
with
-
(Special to The Financial Chronicle)
were
MIAMI, Fla.—Clarence J. HofWilliam
ner,
Beck,
Louis
Mayo,
Jr.
and
Edward
are
were
now
connected with Columbia
A.
Robinson, Jr.
Securities Company, Inc. of Flor¬
slightly the past week.
Soft drinks, bakery products and fresh
produce were heavily pur¬
chased.
Volume in dairy products and frozen
foods was high
and steady. The buying of fresh meats
dipped slightly, although
smoked and canned meats
/With
/
the
average
up
/
In
ida, 3839 Biscayne Boulevard.
With;Cosgrove, Miller
(Special to The F'inancial Chronicle)
high in popularity.
were
*
FT.
nation-wide
temperature
than normal last week, air conditioners and
fans
leading sellers among the household appliances.
slightly
were
higher
/
with
/
others.
There
a
Grimm Adds to Staff
slight gain in the overall level of wholesale trade
ORLANDO,
inventories
Department stores sales
For
the
Federal
on a
country-wide basis
as
ended
July 14, 1956
an
increase of 4%
For the period Jan. 1, 1956 to July
registered above that of 1955.
14, 1956,
a
was
gain of
Retail trade volume in New York
City the past week was
bolstered by cool weather and major promotions
by several stores.
Trade
observers
estimated
the
6% above the similar period
a
increase
year
in
total
sales
to
be
ago.
According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended July 14,
1956, registered
year.
In
(revised)
a
Avenue.
an
the
was
gain of 7%
increase of 5%
above those of the like period
preceding week,
recorded.
was
For
recorded.
July 14, 1956, the index recorded
corresponding period in
1955.
July
the
7,
four
For the
a
1956,
weeks
an
increase
ending July
period Jan. 1,
rise of 4%
M.
Fla.
now
&
Co.,
He
65
was
Kidder
—
Charles
affilated
East
F.
with
Robinson
formerly
with
& Co.
taken from
Reserve
four weeks
is
Grimm
A.
reported.
1956,
Chaney
high level of sales.
Board's index of the week-ended Julv
14,
19567 increased 2% above those of the like period last year. In the
preceding week, July 7, 1956, an increase of 3% was reported.
last
White¬
(Special to The Financial Chronicle)
was
/
the
5%
&
''
depleted
with the
4 to
Cosgrove, Miller
Fla.—
connected
head.
period ended on Wednesday of last week.
Volume re¬
mained well above a year ago. Retailers
frequently sought fill-in
merchandise in an attempt to balance their
was
now
furniture,
the
4%
LAUDERDALE,
Michael J. Brand is
usually .the
refrigerators and television sets, sales were
spotty, varying from "very strong" in some areas to
sluggish in
.
\
The index represents the
31
were
l/ / ./Consumers' purchases of food
in
wheat,
Lower were hams,
eggs,
57
tural chemicals totaled
the best sellers, while children's
clothing and shoes continued to sell well. Volume in men's wear
varied, although sport
-clothes usually att^^ed
favorable attention.
There was some
advance buying of Fall clothes.
'
' '!'•
v
/
•
corn,
for
among
some
represented
a
pace
dollar
sizable.
'
Following the mild upward movement of the two previous
weeks, the wholesale food price index, compiled bv Dun
& Bradstreet, Inc., turned lower the past week to stand at
$6.01 on July
17." This
drop cf 2.6% from $6.17
in
Chemical
diversified line of
a
Of the total net sales and
sales of air condi¬
sometimes
unprecedentedly high.
were
many
Summer
'
Mountain
for
par.
various parts of the United States.
year ago.
maintained at
was
+2 and Southwest
/week.
a
except the New England
the
Machinery and
products
years
and
redeemable
are
,
a
manufacturing
A decline in failures occurred in six of
the nine major geo¬
graphic regions last week, with the Middle Atlantic
States report¬
ing a decrease to 59 from 87 and the South Atlantic States
to 17
from 30/ There were mild decr^a^*
in tb« New
Fngland. West
South Central, Mountain and
Pacific regions.
Failures in the
Fast North Central States
climbed to 39 from 27, in the West
North Central States to 13 from 6
and in the East South Central
States to 5 from 4.
All regions reported mm-failures than
ago,
to
—1
; <
year
two
1958
sinking fund at
Food
according to estimates by Dun & Bradstreet, Inc. Regional esti¬
varied from the comparable 1955 levels
by the following
percentages: New England and Pacific Coast +2 to
+6; East +1
to
+5; South-j-3 to +7; Middle West +7 to +11; Northwest
with
decreased
a
the
for
15,
manufactures
mates
the 188 of the similar
under the 251 of pre-war 1939.
20? last week
Failures
the
weaker trend in less active trading
where workers
Wednesday of last week
reported
noticeably above the
172 of the comparable week last
year and
1954 r>*riod.
to
w<°ek,
for
optional redemption
105%
July
debentures
quently scant.
'
from
a
initial
price is
increased
sales tended to dip in some of the steel
retail
areas
tioners and fans
Business Failures Lower In Latest Week
But Hold
Noticeably Above Like Period of 1955
19
The
14
gains from a year
usually cool for the time of
-
and
planned
program
A
1956.
.'/.
the country as a whole
July
expansion
after fluc¬
cocoa
.
■tintied
ended
close
Trade Volume Held at
High Level Last Week With
Fresh Gains Above Like Period a Year
Ago ^ '
trucks made
year ago.
Canadian Output last week was
placed at 9,545 Cars and 2,374
In the previous week
Dominion plants built
10,025 cars
and 2.3'75
trucks, and for the comparable 1955
week, 9,688 cars
and 2,291 trucks.
*
Commercial
of
ending
Warehouse stocks of
range.
+
week
including the repayment
$17,000,000 of promissory notes
and also the
financing of part of
the $25,000,000 modernization and
purposes
a
bags, against 414,809
trucks.
/•(
that
1956 totaled
'/
21,412 in the previous
a
week
•
by
169,096
year
last
spot markets a week ago were reported at
34,800 bales as compared with 549,000 the previous
week, and
38,300 in the corresponding week a year ago. Sales of
govern¬
ment-owned cotton for export against bids
opened on July 10
(proved to be larger than expected and totaled 393,629 bales. This
brought total sales under the export program so far to
2,865.365
bales.
CCC loan repayments in the first week of
July totaled
7,300 bales, the smallest volume since early January.
135,309
Last week the agency
reported there were 21,582
the United states. This
compared with
week
The
,
week
late
Selling was influenced by an official acreage estimate that
higher than expected and continued favorable
crop advices.
Sales
cars,
to
narrow
last week.
above that of the
previous week
output advanced the past week
cars, while truck
vehicles.
In the corresponding
27,338 trucks
trucks
announcement
demand. Market receipts of
hogs continued larger than
rose
1,366
170
and
in
rar
and
the
a week ago and 247,055
year.
Demand for both world sugar and domestic raws
broadened considerably with
prices rising to the best levels of the
year.
Lard prices fluctuated over a wide
and finished
range
higher for the week. Hog prices advanced moderately under
good
(
.
113,727
a
/last
U. S. Car Completions Strike An 11
Week High
Automotive output for the latest week
ended July 20,
1956,
according to "Ward's Automotive Reports," attained an
11-week
high record,
'
1 *
1
;
of
and
and totaled 421,480
■
(revised) in the previous
The proceeds will be used
by
the company for general
corporate
a
tuating in
week ended July
14, 1956, totaled 619 988
decrease of 174,150 cars or 21.9% below
the
corresponding
week, and a decrease of 74,557 cars, or
10.7% under corre¬
sponding week in 1954.
compared with 112,361
concessions
Food
Machinery &
Corp. The debentures,
July 15, 1981, are priced at
100% to yield 3.80% to maturity.
Spring wheat bakery flours expanded sharply
Buying was stimulated by substantial mill
Cocoa prices were somewhat steadier
at the
a
week's production total
of
of
Chemical
due
;•/'.//:;/ // "'v.'
Loadings for the
estimated
tures
1943.
the
on
Coffee prices worked
gradually lower during the week reflect¬
seasonal falling off in demand and the
recent sharp increases
in world production estimates
by the U. S. Department of Agri¬
culture.
ing
Despite Coal Miners'
an
A
group
headed
by
Kidder,
Peabody & Co. offered yesterday
(July 25) for public sale $30,000,000 3.80% sinking fund deben¬
on
portion of the wheat export trade will be
supplied
by "free" wheat. A good volume in
rye and family flours was
reported early in the week.
week ended
industry assembled
subsidies
much greater
1955
Last week the
cash
from government stocks
the past weekend.
over
July 14, 1956,
increased 141,691 cars or 29.6%
above those of the
preceding week,
despite the coal miners' annual vacation and
the steel
strike, the
Association of American Railroads
reports.
cars,
discontinue
Average daily purchases of grain and
Chicago Board of Trade the past week
57,000,000 bushels, compared with 62,400,000 the
and 58,900,000 in the same week
a year ago.
about
previous week
Annual Vacation and Steel Strike
Rose 29.6%
Above Preceding Week
Loadings of
would
Machinery
& Chemical Debentures
sharply following the
the Department of
Agriculture that
of
government
Offers Food
advanced
Instead, payments in wheat
futures
totaled
above
4.8%
or
the
be the smallest since
/+//'+/''•■'/:+'• (/'/•-(,/,/v
247,000,000 kwh. above that
It increased
4
soybean
21, 1956,
the Edison
to
-
will be made. Oats advanced to
new seasonal highs influenced in
part by the forecast that the 1956
crop (1,144,000,000 bushels) will
of
■
amount of electric energy distributed
bv the electric
light
power industry for the week ended
Saturday, Julv
estimated
but
announcement
Sept.
wheat exports.
Electric Output Shows Further
Gains In Past Week
and
irregular
was
week-end
//+;'' The
was
Kidder, Peabody Group
*
cast of
1, 1956.
85.9% and
duction 2,114,000 tons. A
year
was placed at
2,190,000 tons or
Strength in the latter stemmed from the latest official' forea yield of
21,986,000 bushels, which would be considerably
lower than yast year's harvest
of 29,678,000 bushels.
1956
31
'
v
Grain markets continued the
upward trend of last week with
wheat and rye again
scoring the sharpest gains.
15.3% of capacity
The
!
of
14,
1956 to
above that of the
:
With A. B. Morrison Co.
(Special to The Financial Chronicle)
MIAMI, Fla.—John G. Paseo has
been
added
Morrison &
to
the
staff- of
A.
B.
Co., du Pont Building.
Joins A. M. Kidder Staff
(Special to The Financial Chronicle)
(
SARASOTA, Fla.— Mrs. Mar¬
garet B. Hilliard has become con¬
nected with A. M. Kidder & Co.,
16 South Palm
Avenue.
M. A. Blumenfield Opens
Martin
ducting
offices
a
at
A.
Blumenfield
is
con¬
securities business from
654
Madison
Avenue,
The
Commercial and Financial Chronicle
..
Thursday, July 26,
.
1956^
(408)
32
ADDITIONS;'
if INDICATES
SINCE
Securities Nov in
Able Mining
Co.
/
?
•
Phoenix,
Co.,
Finance
Public
Arizona
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of
life insurance
Scottsdale, Ariz.
policies issued by Public Life Insurance Co. Price-—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
talesman of the insurance firm.
.
3A
Underwriter—The Fenn*r Corp., New
York, N. Y.
<
■
\
,
Inc., Grand Junction, Colo.
notification) 3,000,000 shares of com-f
rnon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium
Center, Grand Junction, Colo. Underwriter—Ralph M.
Davis & Co., Grand Junction, Colo. 1 '
-s 1
Abundant Uranium,
(letter of
Feb. 23
Supply Mfg. Co., Inc.
Aero
103,903 shares of common
(letter of notification)
June 4
(par $1) being offered to stockholders on a basis
of one new share for each 4 1/6 shares held as of July 23;
stock
Proceeds
rights to expire Aug. 13. Price—$2 per share.
—For relocating machinery and equipment in
plant, ad¬
ditional equipment and working capital. Office — 611
West Main St., Corry, Pa.
Underwriters — Henry M.
Margolis and Leo A. Strauss, directors of the company.
Allied
June
Oil
&
Industries
Cerp.
(letter of notification)
14
150,000 shares of capital
10 cents). Price—$2 per share. Proceeds—
For the acquisition of oil and
gas leasehold interests
and working capital. Office — 403 Wilson Bldg., 2601
Main St., Houston, Texas. Underwriter—Muir Invest¬
ment Corp., San Aritonio, Texas.; D. N. Silverman & Co.,
New Orleans, La.; Texas National Corp., San Antonio,
stock
May
Texas.; Charles B.White & Co., Houston,
and Sloan Co., Dallas, Texas.
Texas.; and
Products
Allied
Corp.
(letter of notification) 42,857 shares of class A
common stock (par $1).
Price—$7 per share. Proceeds
—For construction, equipment and working capital. Of¬
fice—2700 23rd St., North, St. Petersburg, Fla.
Under¬
writer—Atwill & Co., Inc., Miami Beach, Fla.
July 2
Milwaukee, Wis.
June 29 filed 47,729 shares of common stock (par $10)
being offered for subscription by common stockholders
of record July 18, 1956 at the rate of one new share for
each five shares held; rights to expire on Aug. 6. Price
—$38 per share. Proceeds—To repay bank loans, and for
expansion and working capital. Underwriter—Robert W.
Baird & Co., Inc., Milwaukee, Wis.
,
•
AJlis
(Louis)
Co.,
American
Horse
•
Underwriter—
July
Atlanta
Inc., Seattle, Wash.
Gas
common
10 shares held
Atlantic Oil Corp.,
(with
but
,
the
To
purchase
49%
a
I.
Underwriter—None.
funds for recent capital
expenditures.
•
'W
stock interest in Aero
shares of common
share. Proceeds
Office—Suite 800, Denver Club
Bldg., Denver, Colo.
Underwriter—None.
, f.
J
A-;- Colonial Utilities Corp. AA( -A,.; A- *A«/
Je¬
june
4
(letter
of-/notification) * $109,245.50' principal
of
Beta Frozen Food
.
holders at the rate of
one
share for each
Feb.
10 shares held
Statement effective July
mayer
•
stock
Underwriter—Birken-
26
Hills
Power &
Light Co.
'
(letter of notification) 11,700 shares of common
being offered for subscription by stock¬
(par $1)
holders
at
the
rate
of
0.04455
of
a
new
share for
each
13; rights to expire
on July 31.",
Proceeds^For construction costs.
Office—Rapid City, S. D. Underwriter—None.
share
held
Price—$24
•
New York
Boston
Philadelphia
Private IVires
to
all offices
June
share.
Braniff Airways,
Inc.
(8/2)
of Missouri. *
(letter of notification) 50,000 shares of^ommon
being offered initially to stockholders (bar $2).
stock
Proceeds—To be added to gen¬
business. Office—5579
St. Louis, Mo. Underwriter—Edward D.
Price—$5.50 per share.
eral
funds and
Pershing Ave.,
v
for expansion of
Co., St. Louis, Mo.
Commodity
Fund tor Capital
Growth, Inc.
May 28 (letter oi notification) 60,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For trad¬
ing in commodity future contracts. Office — 436 West
St., New York 11, N. Y. Underwriter — Arthur N.
Associates, New York, N. Y.
Economu
Commodity
Holding Corp.
(letter of notification) 3,000,000 shares of com¬
(par five cents). Price—10 cents per share.
Proceeds—To trade in commodities. Office—.15 Exchange
June
mon
6
stock
Place, Jersey City, N. J. Underwriter —
Securities Corp., 335 Broadway, New York.
Southeastern
Commonwealth, Inc., Portland, Ore.
Chicago
(letter of notification) 5,912 shares of 6% cu¬
preferred stock being offered for subscription
by stockholders of record April 16, 1956 on a pro rata
basis; rights to expire on July 2, 1956. Price—At par ($50
per share).
Proceeds — For working capital. Office—
Equitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore.
rived from
Underwriter—None.
July 12 filed 1,105,545 shares of common stock (par $2.50)
to be offered for subscription by common stockholders
on
the basis of three new shares for each five- shares
held
'
of
Co.
amendment.
Pittsburgh
San Francisco
as
per
&
20th
& Co., Denver. Colo.
Black
June
Bldg., Denver, Colo.
filed
Jones &
(letter of notification) 1,000,000 shares of class
A common stock (par five cents). Price— 10 cents per
share. Proceeds -— For mining expenses. Office — 762
Denver Club
Office—90 Broad St., New
June 21
(letter of notification)
April 6
-
Proceeds—For
Commercial Life Insurance Co.
Birnaye Oil & Uranium Co., Denver, Colo.
10.
5
Copley
,
9,300,000 shares of com¬
mon stock
(par one cent). Price—Three cents per share.
Proceeds—To be used for exploratory work on mining
mineral properties.
Office—1424 Pearl Street, Boulder,
Colo.
Underwriter—Lamey & Co., Boulder, Colo.
of
Underwriter—None.
23
is convertible into 18
Price—At 1C0% of principal
working capital, construction,
stock.)
Springs Aquatic Center, Inc.
500,0O0 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For swimming
pool and related activities, bowling alley, site preparation
including parking, and land cost (695,000).- Underwriters
—Arthur L. Weir & Co., Colorado Springs, Colo.;, and
June
company.
of debentures
Colorado
Storage, Inc.
is President of
Burton
$100
common
York, N. Y. Underwriter—None.
Big Horn Mountain Gold & Uranium Co.
July 10; rights to expire on Sept. 25.
Price—
For debentures, 100% per $100
principal amount; for
stock, $12.50 per share. Proceeds—To repay bank loans.
as
H.
convertible subordinate debentures, due
purchase of Dover plant, etc.
capital.
William
of
amount.
Proceeds—For capital expenditures and working
Office — Baltimore, Md. Underwriter — None.
par.
(Each
shares
May 14 filed 15,000 shares of preferred stock (par $50)
and $100,000 convertible debenture bonds.
Price — At
Los Angeles, Calif.
$4,099,300 of 5% subordinated debentures
due July 1, 1986 (convertible until July 1, 1964) and
63,614 shares of common stock (par $1). The debentures
are
being offered for subscription by preferred stock¬
holders at the rate of $10 principal amount of debentures
•for each preferred share
held, while the common shares
are
being offered for subscription by Common stock¬
filed
6%
A, 1966 to be offered for subscription by holders
common
stock at the rate of $1.30 for each share
June
Corp. of America
(letter of notification) 150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For min¬
ing expenses. - Office—290 N. University Ave., Provo,
Utah. Underwriter—Thomas Loop Co., New Orleans, La.
Arden Farms Co.,
June 15
(par 25 eents). *Price—50 cents per
amount of
.
.
June 29
Under¬
:
Tex.
—For mining expenses.
held.
bank loans and to reimburse
Office—Waxahachie,
Financial Corp.
I. T.
stock
Bentomite
stockholder and 100,000 shares for the company's account.
Price—To
be
supplied by amendment.
Proceeds—To
industry.
if Cohio Uranium Corp.
July 10 (letter of notification) 400,000
New York.
• Amphenol Electronics Corp. (8/14)
July 23 filed 120,000 shares of common stock (par $1),
of which 20,000 shares are for the account of a selling
Co.
Offering—Temporarily postponed.
Technics, S. A., for approximately $500,000, to make a
$200,000 down payment on three S-58 Sikorsky helicop¬
ters to cost a total of $1,025,000, and to retire $175,000
of indebtedness. Underwriter—Blair & Co. Incorporated,
*
insurance
life
C.
(par £1 sterling), of which 265,000 shares are to be sold
for account of company and 35,000 shares for selling
stockholders.
Price — To be supplied by amendment.?
—
construct
May 17 filed $75,000,000 of debentures due June 1, 1971.
Price—To be supplied by amendment.
Proceeds—Pri¬
marily for furnishing working funds to company's sub¬
sidiaries;
Underwriters—Dillon, Read & Co. Inc., Kuhn,
Loeb & Co. and Lehman Brothers, all of New York.
A
(8/8)
July 13 filed 300,000 shares of ordinary (common) stock
Proceeds
To
D. C.
Harry Kahn, Jr., of Washington, D. C., is President and
"
Nashville, Tenn.
July 13 filed 4,962,500 shares of common stock (par $1),
of which 962,500 share are to be reserved for the exercise
of options by company employees and 4,000,000 shares
are to be offered publicly.
Price—$2 per share. Proceeds
—'To purchase all of the common stock of American In¬
vestment
Life
Insurance
Co., to be organized under
—
Underwriter—None, sales to be made through Albert
Carroll Bates, President of the company.
«'*•
Treasurer.
Corp.,
Inc.
Price—$26 per share. Proceeds—For capital and surplus,
including $200,000 to be invested in securities common to
filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Odess, Martin & Herzberg, Inc., Birmingham, Ala.
Club,
Country
Christian Fidelity Life Insurance
May 11
Helicopters, Ltd., Nassau, B. W.
Shores
July 12 filed 20,000 shares of common stock (par $10) to
be offered first and for period of 30 days to stockholders.
to its affiliates for money
Bahamas
effective if less than 90%,
held.
80%, of such shares are to be so
Price—At par ($300 per share), Pro^
and operate a recreation resort.
Office—Upper Marlboro, Md. Underwriter—None.
ceeds
borrowed for!working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
and Weill, Blauner & Co., Inc. of New York.
•
than
more
only 2,500 shares.
subordinated
Corp., Washington,
redeemable
Oil; and Canadian Husky reserves the
Husky
Chesapeake
15, 1968. Price—100% of principal
Proceeds—To retire indebtedness of the com-
Calgary, Alta., Canada
May 29 filed 5,000 shares of common stock, of which it is
the company's intention to offe# for sale at this time
due June
Industries
of
stock
stock (par $1).
Atlas Credit Corp., Philadelphia, Pa.
11 filed $600,000 of 6% convertible
Automation
Husky Oil Ltd.,
71,363 shares of 6% cumulative
right to declare the exchange
Tulsa, Okla.
June
pany
convertible sinking fund
Husky Oil 6% cumulative redeemable preference share
of $50 par value. The exchange will become effective
if, as a result of the exchange offer, Canadian Husky
will hold at least 90% of the shares of each class of
an
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes. Underwriter — To be
named by amendment.
'
-
amount.
.
(8/6)
preferred stock (par $50) and 1,069,231 shares of common
stock (par $1) to be offered in exchange for the out¬
standing stock of Husky Oil & Refining Ltd. on the
following basis: One share of Canadian Husky common
for each Husky Oil common share of $1 par value and
one share of Canadian Husky
preferred stock for each
stock (par $10)
April 30 filed 2,000,000 shares of common
debentures
stock.
Underwriter—None.
$2,900,000 6%
1, 1968.
filed
13
Canadian
oversubscription priv¬
ilege); rights to expire on July 31, 1956.
Price—$25.50
per share.
Proceeds—To reduce bank loans and for new
construction.
Underwriters — The First Boston Corp.,
New York; and Courts & Co. and The Robinson-Hum¬
phrey Co., Inc., both of Atlanta, Ga.
—
writer—Hornblower & Weeks, New York.
for
Co.
A
Ltd., Honolulu, T. H.
California Eastern Aviation, Inc.
June 29 filed
Light Co.
filed 88,260 shares of
20
for each
—
treasury
/
Price—To be supplied by
amendment.
Proceeds — For new equipment, working
capital and general corporate purposes.
Underwriter—
Cruttenden & Co., Chicago, 111.
being offered for subscription by common stockholders
of record July 10, 1956 on the basis of one new share
Development Co.
retire $1,000,000 short term
,
debentures due Aug.
Underwriter—None.
400,000 shares of common stock (par $1).
Price
$2.50 per share. Proceeds — To expand service
business.
Office
Birmingham, Ala.
Underwriter —
law.
.,//
,
supplied by amendment.
diversified, open-end investment company
and for work¬
of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.
June
Investment Co.,
of the management type, A
10 filed
Tennessee
■/
-
Business-^-A
stock. $50 per share; and
Racing Stables, Inc.
Investors
r
Price—To
Proceeds—For investment,
be
July, 1971. Price — 100% of principal
Proceeds—Together with $7,750,000 to be bor¬
from insurance companies, for construction or
Associated Grocers,
—
American
V
July 11 filed 60,075 shares of common
subordinated
April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds. Price — Of
(letter of notification) 3,000,000 shares of com¬
stock.
Price—At par (10 cents per share).
Pro¬
American Insurors'
-
of New York.
Brown
(7/30-8/3)
of convertible
acquisition of new plants and equipment
ing capital. Office—West Haven, Conn.
Reynolds & Co., Inc., New York.,
ceeds
For organizing and operating a racing stable.
Office—Virginia and Truckee Bldg., Carson City, Nev.
Underwriter—Columbia Securities Co., Inc. of California,
Beverly Hills, Calif.
Feb.
$9,250,000
filed
31
rowed
May 11
mon
■
if British Aluminum Co., Ltd. of England
July 23 filed 50,000 American depositary receipts
ordinary registered stock, through Guaranty Trust
debentures due
„
-
York.
New
amount.
(par
Reed
REVISED
_
Armstrong Rubber Co.
•
,
•
ITEMS
funds, to defray cost of new aircraft, flight equipment :
and other facilities A Underwriter—F. Eberstadt & Co.,.
Ariz.
July 2 (letter of
notification) 300,000 shares of common
stock (par five cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office—7119 E. Camelback Road,
PREVIOUS ISSUE
Cleveland
~
as
of
rights to
Aug. 2
(with
an
oversubscription privilege);
expire on Aug. 16. Price—To be supplied by
Proceeds—Together with funds to be de¬
$40,000,000 long-term loan, and with company
March 23
mulative
.
Volume
184
Number 5554
;
The Commercial and Financial Chronicle
.
.
C
Consolidated Water Co., Chicago, III.
' 18- fifed* $830,000 - of
5 % convertible
-
June
due June
it Detroit Edison Co.
July 24 filed*$59,778,900. of 33A% .convertible debentures
due Sept. 14, 1971, to be offered for
subscriptidft by
debentures
1, 1976 and 26,000 shares of class A
common
stock (par $10). Price—Of
and
amount;
of
Underwriters
The Milwaukee
—
20
1986.
Proceeds—For reduction of bank loans and for
filed
$40,000,000
construction.
first
of
Underwriter—To
mortgage
determined
be
by
new
Office
s,
Springs, Colo.
Denver, Colo.
Underwriter
ping centers East
El
the
of
future
capital
reinvestment
of
gains
future
distributions in stock
dividends from invest¬
'
f
•
•
,
J
Douglas
Corp.,
Fort
Collins,
Dalmid Oil & Uranium, Inc., Grand Junction, Colo.
April 16 (letter of notification) 2,700,000 shares of com¬
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses. Office—1730 North 7tb
Street, Grand Junction, Colo.
Underwriter—Columbia
Securities Co., Denver, Colo.
•
Eastern-Northern
—
an
:
whereupon the com¬
open-end investment
company
price of the remaining
city, of which Wiley S. Killingsworth is
same
dent.
Presi-
Florida
Sun Life Insurance
Co.
March 16 filed 32,000 shares of
common stock
(par $1).
Price—$10 per share. Proceeds—To
expand company's
business.
Office—Fort Lauderdale, Fla. Underwriter—
None. Offering will be made
through James C. Dean,
President of company.
com¬
Columbii
it Flour City Ornamental Iron Co.
July 3 (letter of notification) 27,142
shares of common
stock (par $5).
Price—$10.75 per share. Proceeds—For
working capital.
Address—Minneapolis, Minn.. Under¬
writers— Woodard-Elwood &
Co., Minneapolis, Minn.,
and Harold E. Wood &
Co., St. Paul, Minn.
Explorations, Ltd.,/
Toronto, Canada
>
:
Corp., San
Co.,
per share.
Office—155 North Col¬
Colo. Underwriter
Co., Denver 2, Colo.
Securities
mon
,,
Colony Life Insurance Co., Inc.
Francisco, Calif. Underwriter—First National Securities
Colo.
lege Ave., Fort Collins,
Underwriter—White,
'
offering
March 26 (letter of notification) 2,997,800 shares of
mon stock
(par one cent). Price — 10 cents
Proceeds—For mining expenses.
filed
40,000
shares to net asset value
plus a distributing charge. In¬
vestment Adviser—First National
Investment
—
common
3
pany will declare itself
and change the
stock (par 10
cents). Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to
pay off $13,590.80 liabilities.
Underwriter
James C
Office — 2201 West Burbank, Calif.
Underwriter—Neary, Purcell & Co., Los Angeles, Calif, v
Gas
stock (par
$1), of
which 10,000 shares are to be
offered for sale at $10
per
share to not more than 25
people,
Doctors Oil Corp.,
Carrollton, Tex.
Feb. 23 filed 500,000 shares of common
ing stockholders.
"
First National Mutual
Fund, Inc.
June 27 filed 50,000 shares of
common
—
stock (par $1). Price—$6.25 per share. Proceeds—To sell¬
Mississippi,
,
develop shop¬
Underwriter—None.
July 12 filed 315,000 shares of common stock
(par $2.25).
Price—$12.50 per share. Proceeds—For
working capital,
etc.
Office—Lynchburg, Va. Underwriter—Scott, Horner
& Mason, Inc., also of
Lynchburg.
McKeever & Associates, Oklahoma City, Okla.
8,000 shares of
Paso Natural
First
—
Colorado
of the
Weld & Co., New York.
Resources, Inc.
(letter of notification) 6,000,000 shares of com¬
mon stock (par one cent),
Price—Five cents per share.
Proceeds
For mining expenses.
Office
Suite 16,
Uranium Center Bldg., Grand
Junction, Colo. Under¬
|
(letter of notification)
Foster-Mann,
—
/
Co.
(8/1) \
250,000 shares of cumulative preferred
(par $100). Price—To be supplied
by amendment.
Proceeds—To reduce bank loans.
Diversified
Crestmont Oil Co.
June 28
-
stock
writer—Columbia Securities Co., Denver, Colo.
Rafael,
,
Inc.
July 5
Skyline Securities, Inc.,
—
Construction Co..
(it had previously been indicated in these
columns that the proceeds would be used for
investment).
Proceeds—To in¬
San
w
convertible
*
ment income
Milling Co., Inc.
East
August.
July
and
Off ice--vAlexandria, La, Un->
1902
—
Marine
in
de
payment
March 8 (letter of notification) 575,000 shares of common
stock. Price—50 cents per share. Proceeds—For mining
expenses.
Offering—Expected
Vegh Mutual Fund, Inc.
July 2 filed 35,000 additional shares of capital stock (par
$1), which are to be issued only in connection with the
Continental Equity Securities Corp.
filed 40,000 shares of class A common stock
(par $5) and 80,000 shares of class B common stock (par
50 cents). Price—Of class A stock, $12.50 per share, and
Crater Lake Mining &
&
•
com¬
March 28
share.
Underwriter
*
"v
Tex.
bidding. ' Probable bidders:
Halsey, Stuart &
Ripley & Co. Inc. and The First Bos¬
Corp. (jointly); Morgan Stanley & Co.; White, Weld
& Co. and Shields & Co. (jointly). Bids—Scheduled to
be opened at 11:30 a.m. (EDT) on Aug. 14.
per
Land
(letter of notification) 150,000 shares of com¬
mon stock (par $1).
Price—$2 per share. Proceeds—For
payments of notes, to purchase and equip three boats
and working capital. Office—1111 No. First
Ave., Lake
Charles, La. Underwriter—Vickers Brothers, Houston,
ton
B stock, 50 cents
capital and surplus.
^er writer—None.
1
subordinated debentures, due
1969, of Grand Union Co.
on
the basis of one share of
Eastern for each Grand
Union share held and on basis
of 4.8216 shares of East¬
ern for each
$100 of debentures held; and the
remaining
1,000,000 shares are to be sold to Grand Union Co.
Price
—$2 per share. Proceeds—To locate and
Devall
(8/30)
petitive
crease
"
•
-
May 16
Co. Inc.; Harriman
of class
purposes.
,,
it Eastern Shopping C^hterS, Inc.
~
July 20 filed 3,140,000 shares of common stock
(par $1), of which 2,140,000 shares are
to be offered for
subscrip- ' •
tion .by holders of common
stock and 3y2%
•
(8/14)
bonds due
July
*
#
repay short
term bank loans and for construction and
other purposes.
Co., Mil¬
Madison,
waukee, Wis.; Harley, Haydon & Co., Inc.,
Wis.; and Indianapolis Bond & Share Corp., Indianapolis,
Ind. Debentures reported sold to Massachusetts Life In¬
surance Co.
Offering—Expected this week.
it Consumers Power Co., Jackson, Mich.
corporate
Inc., New York.
Underwriter—None.
payment of bank loans and other obligations totaling
$184,000, and for the purchase of securities of company's
subsidiaries.
-
33
stockholders of record Aug. 17, 1956 at the rate of
$100
of debentures for each 21 shares of stock
held.
Price—
100% of principal amount. Proceeds — To
debentures, 100% of principal
$12 per share. Proceeds—For
stock,
eral
,
(409)
(8/3)
June 4
(regulation "D") 500,000 shares of common stock
(par $1). Price—60 Cents per share. Proceeds—For gen-
,
Gas Hills
NEW
July 30
Armstrong
Rubber
(Reynolds
&
Co.,
Inc.)
State
Securities
$9,250,000
Corp
\
?
(Bids
.
___r„Class A
Dealers,
8:30
PDT)
a.m.
August 28
Debentures
$78,000,000
Consolidated Natural Gas Co
July 31
(Tuesday)
(Bids
11
EDT)
a.m.
~
(Bids
New
U
EDT)
a.m.
(Bids
EDT)
noon
August 1
Paso
Natural
Gas
(White,
Michigan
be supplied
by amendment.
Proceeds—Ap¬
proximately $16,000,000 will be used to liquidate Secu¬
rities Credit Corp.'s
liability for notes receivable dis¬
counted; and for working capital.
Underwriters—Paine,.
Webber, Jackson & Curtis, Boston and New
York; and
Union Securities
Corp., New York.
$30,000,000
Equip. Trust Ctfs.
(Bids 11
•
,
(Bids
Co.)
Pipe
Co.__
&
Otis,
August 2
*
jBraniff
-H
Airways,
(Offering
:'iV.
Illinois
Bell
(Offering
$3,750,000
be
Telephone
to
underwritten
Industrial
;
Common
(M. S.
by
shares.
1,105,545
Co., Inc.__Com.
%of
$300,000
,
$58,053,100
(Wednesday)
(Bids
v
.
*
Inc. and James N. Toolan & Co.) $600,000
Southern California Edison Co
(Bids
Equip. Trust Ctfs.
EDT)
noon
to
August 3
Eastern-Northern
V
(Friday)
Inc.)
(Bids
Common
$300,000
California
•
v--
"
August 6
Eastern
"
V
&
(Peter Morgan
Co.)
Debentures
General
$2,900,000
(Bids
;
,
Co.
to
(Bids
.
August 8 (Wednesday)
(Elair &
to
Common
Republic
Cement
August 9
(Paine,
Webber,
(Offering
to
October 2
:
(Thursday)
(Bids
Union
Securities
to
be
Debenturea
invited)
October 9
August
Amphenol
14
(Tuesday)
Electronics Corp
(Hornblower
&
Common
Weeks)
120,000
shares
■
/
,
Universal
(A.
(Bids 11:30
;
Match
C. Allyn
Bonds
a.m.
EDT)
$40,000,000
Corp
830.000.000
(Blyth
Debentures
&
Co.,
$6,500,000
Common
Inc.)
120,000
(Bids
shares
-
-
(Thursday)
Central Illinois Light Co
(May-be Union Securities
EDT)
a.m.
(Bids
11
a.m.
EDT)
13
$28,000,000
to
be
$8,000,000
$6,000,000
General Uranium
Corp. (N. J.), New York
Jan. 18 filed 400,000 shares of
common
stock (par 10
cents). Price—$1 per share. Proceeds—For
plant facil¬
ities, survey of property and underground
development.
Statement effective March 11.
Golden Dawn
itock
Uranium Corp., Buena Vista, Colo*
(letter of notification) 3,000,000 shares of
capital
(par five cents). Price—10 cents per share. Pro¬
—
For
mining
Gold Seal
June
Bonds
$15,000,000
company's
outstanding $5.50 series A shares.
22
cents).
(Tuesday)
(Bid8 to be invited)
will,
Statement effec-v
expenses.
Underwriter
—
Bel-ALr
Securities Co., Provo, Utah.
$10,000,000
Carolina Power & Light Co
common stock. The offer
Underwriter—None.
number of shares of common
stock (par $2.50) to be
offered in exchange for common and.
preferred stock of
A. M. Byers Co. on the basis
of one share of General's
preference stock and a warrant to
purchase one common
share for each 3V3 shares of
Byers common stock. The
exchange ratio in respect to the Byers preferred stock is
to be supplied
by amendment.
The General
company
has also agreed to
purchase from J. F. Byers, Jr., and
B. M. Byers a total of
60,000 shares of Byers common
stock for an
aggregate price of $1,800,000. If certain con¬
ditions are not met, the
company is obligated to purchase
the 60,000 shares for an
aggregate of 18,000 shares of
General's cumulative preference
stock of a series con¬
taining similar terms and provisions to the
ceeds
Bonds
invited)
on Aug. 6.
July 16.
Dec. 27
(Tuesday)
Metropolitan Edison Co
five shares of Graflex
Is President.
Preferred
November 27
Preferred
Corp.)
11
ex¬
share, with each'
Graflex preferred stock
being treated as if it-
Underwriter—None. Maurice Schack,
Middletown, N. Y«,
(Wednesday)
Bonds
November
(Bids
August 16
17
Bonds
$8,000,000
Co
stock in
common
■-
(Tuesday)
invited)
Ohio Power Co..—.
& Co. Inc. and Scherck, Richter Co.)
Warner & Swasey Co
October
Ohio Power
Consumers Power Co
to be
$575,000,000
(Tuesday)
California Electric Power Co
(Bids
Common
about
Columbia Gas System, Inc
Debentures
Jackson & Curtis and
Corp.) $20,000,000
(Monday)
1
stockholders—no underwriting)
$9,650,000
General Acceptance Corp
Bonds
;
Arjnerican Telephone & Telegraph Co
Common
Brothers)
(Tuesday)
to be invited) $<20,000,000
•'v'./ •*October
$3,510,000
Corp.:
(Vickers
Bonds
$15,000,000
"
Equip. Trust Ctfs.
EDT)
$20,000,000
invited)
be
*
Bonds
Virginia Electric & Power Co
(Bids
noon
invited)
be
September 25
Ltd
Incorporated) 300,000 shares
Delaware, Lackawanna & Western RR.
(Bids
90,000 shares
Northern States Power Co
Graflex
General Tire &
(Wednesday)
Telephone Co. of California.
Common
Co.) $570,000
&
,
Bahamas Helicopters,
invited)
be
each
common
Rubber Co., Akron, O.
July 5 filed 134,717 shares of $5 cumulative
preference
stock (par $100) and
134,717 warrants to purchase a like'
,.
(Monday)
Mica & Minerals Corp. of America
•
,
tive
....Common
September 12
for
expire
$13,000,000
Gulf States Utilities Co.
Aviation, Inc
(Cruttenden
were
...Bonds
invited)
be
to
(Bids to
-
$40,000,000
share of General preference
one-quarter share of General
share of
(Monday)
Gulf States Utilities Co.
Explorations, Ltd
(Foster-Mann,
i
invited)
be
September 10
and
change
Bonds
$9,660,000
'
5,000 shares
.
Graflex, Inc.
in the ratio of
one-quarter
Common
'
Southern Pacific Co._l_
\
vertible
Common
underwriting)
Limerock, Inc
Gerber,
"
June
Co
stockholders—no
common stock.-
General Precision Equipment
Corp.
20 filed 59,445 shares of
$1.60 cumulative con¬
preference stock (no par) and 59,445 shares
of common stock
(par $1) being offered in exchange for
5% preferred stock and common stock of
(Friday)
September 5
(Thursday)
stockholders—to
to
it General Capital Corp., Boston, Mass.
July 23 filed (by amendment) an additional
(Thursday)
August 31
Inc..
'P. Eberstadt & Co.)
/
$10,000,000
Bonds
$25,000,000
Inc.)
$61,301,000
Bonds
EDT)
a.m.
(Vickers Brothers)
Common
(Gearhart
underwriting)
Devall Land & Marine Construction
$25,000,000
Line
EDT)
a.m.
11
August 30
Preferred
&
Telegraph Co.__Com.
&
stockholders—no
Tampa Electric Co
$2,250,000
Minerals, Inc.
V,
to
(Wednesday)
Weld
(Wednesday)
Telephone
England
(Ofiering
Co
Wisconsin
'
•
August 29
New
York, New Haven & Hartford RR.
1971.
Price—To
$10,000,000
.
LI
Bonds
stock
it General Acceptance Corp.,
Allentown, Pa. (8/9) '
July 20 filed $20,000,000 of senior debentures due
Debentures
'
Jersey Central Power & Light Co
4
mon
(Tuesday)
$1,000,000
Inc.)
Jan.
(Tuesday)
Pacific Telephone & Telegraph Co
Debentures
Gold Seal Dairy Products
(All
August 21
(Monday)
Co
Mining and Oil, Inc.
(letter of notification) 1,200,000 shares
of com(par five cents). Price — 25 cents
per share.
Proceeds—For expenses incident to
mining operations.
Office—Kemmerer, Wyo. Underwriter—Philip Gordon
& Co., Inc., New York 6. N.
Y.
||||||I|'
CALENDAR
ISSUE
Dairy Products Corp.
(7/30-8/1)
200,000 shares of class A stock (par 10
Price—$5 per share. Proceeds—For expansion
filed
Continued
on
page
34
The Commercial and Financial Chronicle
34
Continued from page
Y.
N.
writers— M. S. Gerber,
33
::■
both.of New York.
outstanding obligations. Office Remsen,
Underwriter—All States Securities Dealers, Inc.,
to
and
Industrial
repay
.
Thursday, July 26, 1956
.
development ana working capital. Office—Moab,
Underwriter—I. J. Schenin Co., New York
Gray Tool
Plans.;
:
of notification) 3,270 shares of class B stock
which 1,000 shares are to be offered pro
Co., Houston, Texas
Insurance
Salinas, Calif.
Proceeds—For mining expenses.
G.
Oct.
12
Plastic
Office
ment, etc,
Y.
/
—
Investment
Handy & Harman
June 25 (letter of notification)
Life & Trust
7,400 shares of common
stock (par $1) to be offered to employees. Price—$6.75
per share.
Proceeds — For general corporate purposes.
Office—82 Fulton St., New York 38, N. Y. Underwriter
West Imperial
purchase machinery and equipment and
-Office — 377 McKee Place, Pitts¬
for working capital.
Co., Mullins, S. C.
Lost
■
Petroleum, Inc. (Panama)
May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent), of which
1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to
options and 250,000 shares and certificates therefor are
to be offered for sale outside of the Unite# States. Price
May 15 (letter of notification) 3,000,000 shares of capital
stock. Price—At par (10 cents per share) .. Proceeds—
For the development of oil and gas properties. Office—
219 E. Fremont Ave., Las Vegas, Nev.
Underwriter-—
National Securities Co., Las Vegas, Nev.
,
Hill & Hill 1956 Oil Exploration Capital Fund
13 filed $450,000 of participations in this Fund
—To
March
be
the
market price
on
the American Stock
production^of oil and gas as a joint venture. Office—
Fort Worth, Tex. Underwriters — William D. McCabe
Ex¬
Holden
Mining Co., Winterhaven, Calif.
April 13 (letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Address — P. O. Box 308, Winterhaven,
Calif. Underwriter—Arthur B. Hogan, Inc., Hollywood,
Calif.,'
/ ;Vv\v'/:\/'4
Co., Inc., New York.
Jurassic Minerals, Inc., Cortez, Colo. :
Aug. 26 (letter of notification) 2,855,000 shares of
.
new
share for each
company held.
10 shares
Price—At par
($12.50
of
the
assessable
per
,
Delaware
share).
Pro¬
ceeds—To purchase certain assets of the Delaware
com¬
pany
and for working capital.
Office
per
—
Newark, N. J.
Underwriter—None.
ir Holliday Mines, Inc.
July 6 (letter of notification) 700,000 shares of common
stock. Price—10 cents per share. Proceeds—For
explo¬
ration and development; purchase of
equipment; and
working capital. Offices—Route 7, Box 436, Vancouver,
Wash.; and Noxon, Mont. Underwriter—None.
Hometrust Corp., Inc.,
Montgomery, Ala.
125,000 shares of common stock (par $1).
Price—$5 per share. Proceeds
To expand operations
Jan. 5 filed
—
of
subsidiary and increase investment therein.
writer—None.
Under¬
Idaho-Alta Metals Corp.
March 7
(letter of notification) 120,000 shares of com¬
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds—For exploration and development
expenses. Un¬
mon stock
derwriter— Fenner Corp.
«
Co.), New York.
(formerly Fenner-Streitman
Ideal-Aerosmith, Inc., Hawthorna, Calif.
Dec,.16 (letter of notification)
150,000 shares of capital
clock (par $1).
Price —$2 per share. Proceeds.—For
cmxipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave., Hawthorne, Calif.
Underwriter—Samuel B.
Franklin & Co., Los Angeles, Calif.
★ Industrial Umerock* Inc., Miami, Fla. (9/5-6)
July 23 filed 300,000 shares of common stock (par one
cent), together with 75,000 common stock purchase war¬
rants.
Price—$2 per share. Proceeds—For equipment
working capital and general corporate purposes. Under¬
Los Angeles, Calif.
645 shares of common
Proceeds
oer
—
.
To
Office—5901
-
Uranium
Oil Co.
&
notification)
3,000,000
shares of
non¬
(par one cent). Price—10 cent*
expenses incident to mining
Proceeds—For
share.
operations.
Office
—
•
Simms Bldg., Albuquerque, N. M, ;
Securities Inc. of Utah. Sail/
Underwriter—Mid-America
Lake
City, Utah.
/Lumberman's
Investment &
Mortgage Co.
May 2 filed 50,000 shares of common stock (par $10L
Price—$12 per share. Proceeds—For working capital and
Office
general
corporate
purposes.
Underwriter—None.
Milling &
—
Denver,
Colo.
'
Uranium
Co.,
Inc.
.
;
-•••-
-
May 11 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per share).
Proceeds—/
For mining
Office—205 Carlson Bldg., PocaUnderwriter—Columbia Securities Co., Inc.
Beverly Hills. Calif.
:
/
expenses.
tello, Idaho.
of California.
* Managed Funds, Inc., St. Lruis. Mo.
July 23 filed (by amendment) 2,000,000 additional shares
of
common
stock.
„
ceeds—For
—
Hiskey Uranium Corp.
May 31 filed 500,000 shares of common stock (par 30
cents). Price—$1 per share. Proceeds—For drilling e
penses, purchase of properties and working capital. Of¬
fices—Las Vegas, Nev., and Salt Lake City, Utah. Under¬
writer—Ackerson-Hackett Investment Co., Reno, Nev.
one
Canyon
June 28
Jersey Central Power & Light Co. (7/31)
July 2 filed $10,000,000 first mortgage bonds due 1986.
Proceeds
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.,
Inc.; Lehman Brothers; White, Weld & Co.; Kidder,
Peabody & Co.; Union Securities Corp., Salomon Bros.
& Hutzler and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Blair & Co. Incorporated. Bids—Expected to
be received up to 11
a.m.
(EDT) on July 31 at the
offices of General Public Utilities Corp., 67 Broad St.,
New York, N. Y.
Bldg., San Antonio, Tex.
Inc.,
Highway, Los Angeles 49, Calif. Under- ;
Angeles, Calif.
(letter of
derwriter—H. Kook &
public sale in minimum units of $15,000.
Proceeds—For payment of various property and explor¬
atory well costs and expenses. Business—George P. Hill
and Houston Hill are engaged in exploration for and
of
6
change. Proceeds — For carrying out the exploratory
drilling and development of presently licensed acreage,
operations and expenses of the company, and acquisition,
exploration and development of additional acreage. Un¬
to be offered for
A-rwavs.
assessable capital stock
Mammoth
Israel-Mediterranean
Inc.
★ Hollander (A.) & Son, Inc. (N. J.)
July 20 (letter of notification) 23,392 shares of common
stock to be offered for subscription by common stock¬
holders of A. Hollander & Son, Inc. (Del.) on the basis
Oct.
writer—Foster-Mann, Inc., New York, N. Y,
Underwriter—Graham & Co., Pittsburgh, Pa.
States ;
Witter & Co., Los
writer—Dean
Salvage Co., Inc.
May 4 (letter of notification) 100,000 shares^of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
working capital and for purchase of a ship and equip¬
ment.
Office—1214 Ainsley Bldg., Miami, Fla. Under¬
(letter of notification) 1,000,000 shares of com¬
stock (par one cent). Price—Five cents per share.
Angeles
Clarence M. Belinn. the selling stockholder.
York.
New
Los
April 23 (letter of notification)
(par $10). Price — $54 per share.
Isthmus Steamship &
Feb. 20
>
market.
All
—
Dallas, Texas.
stock
600,000 shares on exercise of options. Price—$2 per
share to public. Proceeds—To be added to general op¬
erating funds to enable the company to maintain proper
insurance reserves required by law. Underwriter—None.
Co., Pittsburgh, Pa.
Underwriter
Long Island Lighting Co.
/
and
—None.
investment..
'
Series;
125,000
,
Corp.
July 9 filed 1,800,000 shares of common stock (par $1),
of which 1,200,000 shares are to be offered publicity
★
Income
Price—At
April 5 filed 120,000 shares of cumulative preferred stock, *
G (par $100). Price—To be supplied by amend- "
Proceeds—To repay bank loans.
Underwriters— V
Blyth & Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed
because of present unsatisfactory market conditions
Underwriter—Melvir
Co..
Series.
ment.
369-375 DeKalb Ave., Brooklyn *
&
For
—
Growth
series
-
150,000 shares of commoi
Price—$2 per share
Proceeds-
Underwriter—Kamen
Balanced
of
snares
Industrial
of
V
Seoright.
Fund, Dallas, Texas
125,000
Management Co.,
For advances to Arliss Co., Inc. for purchase of equip
N.
Star
Proceeds
(letter of notification)
stocl^(par 10 cents).
Underwriter—George A.
125,000 shares of Insurance Growth Series; and
Office—155 West South
Industries
*
City.
filed
1
shares
Flegal & Co., Salt Lake City, Utah
International
shares of 5% cumu¬
preferred stock (par $100). Price—$98 per share.
Proceeds — For expenses incident to commercial grain
business. Underwriter—W. R. Olson Co., Fargo, N. D.
and E. S. Emerson, South Texas
Lone
June
Inc.
Metals,
Temple St., Salt Lake City, Utah.
lative
.
Basic
(letter of notification) 1,000,000 shares of com¬
stock (par 10 cents). Price — 25 cents per share
mon
& Sons, Fargo, N. D.
Dome Exploration Co.,
15,805 shares of capital
stock¬
per
International
purposes.
New York
Jan. 27
May 25 (letter of notification) 1,800
Hidden
corporate
share. Proceeds—For capital stock and
surplus. Office—750 Main St., Hartford, Conn. Under¬
writer—Putnam & Co., Hartford, Conn.
Price—$16
(letter of notification)
burgh, Pa.
—For
City Life Co., Hartford, Conn.
(letter of notification)
and 90,000 snares for selling stockPrice—$1 per share, by amendment. Proceeds
exploration and development and other general
holders.
1956 on the basis of one new
share for each share held; rights to expire on Aug. 3.
Co.
24,000 shares of capital
to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬
ceeds—For working capital. Address—P. O. Box 2231,
Baton Rouge, La. Underwriter—None.
mon
.
holders of record June 8,
Guaranty Income Life Insurance
Proceeds—To
-
'V.
count of che company
(par $10) being offered for subscription by
stock
stock (par $5)
Hard Rock Mining
?
June
($5 per share).
par
June 28
of common stock (par $1)
individuals and firms who
are
engaged in or closely allied to the growing and
shipping industry. Price—$3 per share. Proceeds
For
working capital, capital expenditures and other corpo¬
rate purposes.
Underwriter—None.
(R. F.)
<•
Developments, Inc., Cleveland, Ohio
;/4
21 filed 600,000 shares of common stock
(par 10 ?
cents), of wnich 600,000 shares are to be sold for ac- "
Circuits,
Proceeds—For general corporate
purposes. Underwriter—Alexander Watt & Co., Inc., no»
withdrawn as underwriter; new one to be named.
•..%/:
At
May 28 filed 600,000 shares
to be offered primarily to
Gunkelman
v
.
Lithium
stock and 2,270 shares are
offered to employees of the company. Price - $o0 per
share. Proceeds—For working capital. Office—6102 fiarrisburg Blvd., Houston, Tex. Underwriter
None,
30
Utah.
Inc., Belleville, N. J.
100,000 shares of 6% convertible preferred
stock (cumulative if and to the extent earned). Price—
Insulated
May 3 (letter
(no par), of
rata to the holders of class A
Dec.
V
common
cents).
—For exploration and evaluation of leasehold
properties,
improvements, equipment and for general corporate
purposes.
Office—Tucson
Ariz
Underwriter—George
F. Breen, New York. Offering—Postponed.
Nov. Id filed
Growers Container Corp.,
of
stock (par 10
Price—To be supplied by amendment. Proceeds
Development Corp.
minerals
-
March 30 filed 100,000 shares
•
(letter of notification) 1,000,000 shares of com¬
stock. Pfice—Five cents per share.
Proceeds—For
mon
it Grand Union Co., East Paterson, N. J.
July 23 filed 273,218 shares of common stock (par $o)
for issuance
under company's
Employees' Restricted
Stock Option
Lewisohn Copper Corp.
Inc. and James M. Toolan & Co.,
V,/;.//'.v/.;
March 7
New York.
,
.
(410)
activities.
stock (par one cent). Price—10 cents
Proceeds—For expenses incident to mining
Office — 326 West Montezuma St., Cortez,;
Underwriter
Colo.
—
Bay Securities Corp., New York,
New York.
Knox Corp., Thomson, Ga.
20 filed 150,000 shares of class A
June
stock
common
(par $1). Price—To be supplied by amendment (expect¬
$4 (per share). Proceeds—To pay loans from banks
and factors; and for working capital and other corporate
purposes. Business—Prefabricated homes, house trailers
ed at
and lumber. Underwriter—Ira
Haupt & Co., New York.
Kropp Forge Co.
June 4 (letter of notification) 18,804 shares of common
stock (par 33% cents). Price—At market (estimated at
$3.50 per share). Proceeds — To selling stockholder.
Underwriter—Sincere & Co., Chicago, 111.
Lawyers Mortgage & Title Co.
May 11 (letter of notification) 133,000 shares of com¬
mon stock (par 65 cents).
Price—$1.50 per share. Pro¬
ceeds—For working capital. Office—115 Broadway, New
York 6, N. Y. Underwriter—None.
>
.
.
Markwood Industries,
common
Inc.
(letter of notification) 280,000 shares of Class A
stock (par 10 cents). Price—$1 per share. Pro¬
purchase of property and construction of two
buildings; machinery and equipment; and working cap¬
ital and general corporate purposes.
Business—Humus
and potted soil. Office—45 Commerce St., Newark, N. J.
Underwriter—Daggett Securities, Inc., Newark, N. J. ;
Marquardt Aircraft Co., Van Nuys, Calif.
25 filed 42,000 shares of capital stock (par $1) to
be offered for subscription by stockholders of record
June
about
July 18
on a pro
rata basis; rights to expire
on
or
about Aug. 7. Price—To be supplied by amendment. Pro¬
ceeds—From sale of stock, together with funds from
private placement of $2,000,000 of first mortgage 5%%
bonds, for capital improvement, equipment and general
corporate purposes. Underwriter—None. Unsubscribed
shares will be bought by Olin Mathiesen Chemical Corp.,
and Laurence S. Rockefeller, the two principal stock¬
.
non¬
common
share.
•
.
Leetronics, Inc.
July 3 (letter of notification) up to 25,000 shares of com¬
mon stock
(par 50 cents) to be issued upon exercise of
stock option warrants. Price—$4 per share. Proceeds—
For general corporate purposes. Office —r 30 Main
St.,
holders.:
'
■
t
/
^ Maryland Motor Truck Association, Inc.
July 11 (letter of notification) $50,000 of first debenture
bonds, due June 1, 1976. Price—At par ($100 mid multi¬
ples thereof). Proceeds—To construct permanent head¬
quarters. Office—3000 Washington Blvd., Baltimore 30,
Md.
Underwriter—None.
*
'
1
I
-
Mascot
Mines, Inc.
•
July 9 (letter of notfieation) 280,000 shares of common
stock (par 17% cents). Price—25 cents per share. Pro¬
ceeds—For payment »on properties; repayment
of ad¬
vances; exploration and development! and working cap¬
ital.
Office—508 Peyton Bldg., Spokane, Wash.
Under¬
writer—Standard Securities Corp., Spokane, Wash.
it Maule Industries, Inc.
■
::
July,9. (letter of notification) 2,170 shares of common
stock (par $1) to be offered to employees. Price—$3.50
per share to employees. Proceeds!—For general operating
capital. Office—5220 Biscayne Blvd., Miami, Fla. Under¬
writer—None.-,
'•/.
• Mica & Minerals
Corp. of America (8/6)
Jupe 13 filed 570,000 shares of common stock (par/ 10
cents)u Price—$1 per share. Proceeds—To repayment of
loans, to exercise option to purchase property now under
lease, for construction of
a
plant, and for further explo¬
Brooklyn 1, N. Y. Underwriter—S. D. Fuller & Co., New
ration, working capital and other general corporate, pur¬
poses.
Office—Wilmington, Del. Underwriter —■ Peter
York.
Morgan & Co., New York.
Lester
Feb. 24
Engineering Co., Cleveland, Ohio
(letter of notification) 37,500 shares of
common
stock (par $1) to be offered for subscription by common
stockholders of record March 1,1956 en the basis of one
new
share for each 4% shares held. Of the unsubscribed
portion,
ployees.
to 7,500 shares are to be offered to em¬
Price—$8 per share. Proceeds — For general
corporate purposes. Office—2711 Church Ave., Cleve¬
up
land, Ohio.
Underwriter—None.
,
V
-
„
Michigan Wisconsin Pipe Line Co. (8/1)
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976.
proceeds—To pay off short term bank loan's
and for construction program.
Underwriter — To-be
determined by competitive bidding.
Probable bidders:
Halsey, StuartCo. Inc.; The First Boston Corp.; Harriman
Ripley & Co. Inc.; Blyth & Co., Inc. Bids—Ex¬
pected to be received up to 11 a.m. (EDT) on Aug. 1 at
Suite 1730, 165
Broadway, New York 6, N. Y.
"/
Volume 184
Number 5554
;
.
Commercial and Financial Chronicle
The
.
(411)
Mid-Continent
Uranium
Corp.
May 31 (letter of notification) 100,000 shares of
^
common
stock (par one cent). Price—50 cents per share. Proceeds
—For mining expenses. Office—728
Symes Blag., Den¬
2, Colo. Underwriter—General Investing Corp., New
York, N. Y.
v:;
.V.'-,
ver
Nicholson
(W. H.) & Co., Wilkes-Barre, Pa.
20,000 shares of common stock (par $5).
Price—$25 per snare. Proceeds
For working capital.
Underwriter—None. A. E. Nicholson Jr. of
Kingston, Pa.
Jan.
Midland General
12
filed
Hospital, Inc., Bronx, N. Y.
24,120
shares
of
stock
common
'
(no
par)
and
30,000 shares of $6 dividend preferred stock (no
The company does not intend presently to sell
stock than is required to raise, at most. $2,700,000
Price
$100 per share." Proceeds — For construction,
working capital, reserve, etc. Underwriter—None.;;-vYY'*V
par).
more
—
."«¥
Minerals, Inc.,*" New York
(8/1)
/ ^o-'V-v2,500,000 shares of common stock (par
cent). Price—$1.50 per share. Proceeds—To acquire
$2,400,000 the Chavin lead-zinc-copper-silver mine
June
one
for
.
filed
22
located in South Central Peru, and for general corporate
Underwriter
purposes.
Gearhart
—
&
Otis,
Inc., New
York.
Mission Appliance Corp. of
is
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common stt?ck (par
$5) to be offered in units of one preferred and four com¬
mon shares.
Price—$40 per unit. Proceeds —*For pur¬
chase of .machinery and equipment. Office—New Albany,
Miss.
^
Under writer—Lewis &
Co., Jackson, Miss.
Modern Pioneers' Life-insurance Co.,
"
t
'
V ^
May 24 (letter of notification) $300,000 of tfust fund cer¬
tificates.
Price—At par ($2 per unit). Proceeds,— To
provide capital and surplus funds for the activation of
this insurance company. Underwriter—Arizona Mutual
' *»%;•
Benefit Insurance Co., Phoenix, Ariz.
..
-.ft.
it Mohawk Business Machines Corp.
V/
July 19 (letter of notification) 138,750 shares of ;coinmon
(par 10 cents) to be sold privately to Milton J.
Price — For an aggregate of
$50,000. Proceeds—To selling stockholder. Office—944
Halsey St., Brooklyn 33, N. Y.
stock
Shuck of New York City.
Monawk Silica Co., Cincinnati, Ohid
March 23 (letter of notification) 3,000 shares
~
of 8%
stock (par $50) and
(no par) to be offered in
units of one share of preferred and one share of common.
Price
$60 per unit.
Proceeds — For mining expenses
cumulative
convertible
3,000 shares of
common
preferred
stock
—
and
processing silica. Office—2508 Auburn Ave., Cincin¬
nati, Ohio. Underwriter—None.
Mormon Trail Mining Corp., Salt Lake City, Utah
Feb. 9 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share.
Pro¬
ceeds—For mining expenses. Office—223 Phillips Petrol¬
Bldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
^
eum
.
Nash Finch Co.
-
June
7
stock
(letter of
notification) 1,000 shares of
(par $10). Price—At market
share).
per
'
common
(estimated at
$18.50
Proceeds—To
selling stockholder. Under¬
Co., Inc., Minneapolis, Minn. y.
writer—J. M. Dain &
National By-Products, Inc.
19 (letter of notification) 2,000 shares of common
June
stock
(par SI).
Price—$5
Proceeds—To pay
Federal estate taxes. Office—800 Bankers Trust .Bldg.,
Des Moines, Iowa. Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa.
per
share.
National Consolidated Mining Corp.
May 9 (letter of notification) 87,000 shares
stock
(par one cent).
For mining expenses.
Price—$3
of common
share. Proceeds—
Address — Salida, Colo. Under¬
writer—Pummill Enterprises, Houston, Tex.
National
Lithium Corp., Denver, Colo.
(letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club
Bldg.,
Denver, Colo. Underwriter — Investment Service Co.,
same city.
"
'
Dec. 27
.
...
National
,
Metallizing Corp.
(letter of notification) 24,000 shares of Class A
(par $1) and 40,000 shares of Class B stock (par
$1) to be offered for subscription by Class A and Class
stock
B stockholders of record Feb. 1,
1956 on a l-for-4 basis.
Proceeds—For vacuum metallizing,
conditioning, slitting and inspection machinery. Office—
1145-19tb St., N. W., Washington, D. C.
Underwriter—
None.
'
Finance
Securities, Inc., Denver 2, Colo.
Co.,
Phoejiix, Ariz.
R.
★ North American Industries, Inc.
July 6 (letter of notification) 1,100,000 shares of Common
stock.
Price—At par (25 cents per
share). Proceeds—
For mining expenses.
Office—1112 Fremont St., Las Ve¬
gas, Nev. Underwriter—None.
!
'
"*
Nov.
15
filed
(par
$2)
50,000; shares
of
class
common
stock
shares of class B common stock
be supplied by amendment.
Pro¬
ceeds
To selling stockholders.
Office — Little Rock,
Ark.
Underwriter—Equitable Securities Corp.. Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely
—
postponed.
National
.
'
Research
Corp.
June 21 filed $4,000,000 of convertible subordinated de¬
bentures
due
interest.
Proceeds
July 1,
Price — 100%, and accrued
$3,000,000 in payments of capital
Corp., a wholly-owned subsidiary;
for advances to said subsidiary and for general corporate
purposes.
Business—Scientific research and the com¬
mercial development of the results obtained.
Office—
Cambridge, Mass. Underwriter—Paine. Webber, Jack¬
stock of NRC
son
1976.
—
Metals
& Curtis, Boston, Mass., and New
York, N. Y. Offer¬
ing—Expected today (July 26).
Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon
stock (par 3*6 cents).
Price—10 cents per share.
Proceeds
For mining expenses. Office — 345 South
State St., Salt Lake City, Utah.
Underwriter—Birken—
mayer
& Co., Denver, Colo.
Nev.
Radium Hill
Uranium, Inc., Montrose, Colo.
June 14 (letter of
notification) an undetermined number
of shares of common stock
which when sold at the
market will
bring in an aggregate amount of
$42,500.
'
Metals Corp.
of America
scription privilege); rights will expire on
Aug. 1. Price
—$5 per share.
Proceeds—$1,250,000 to be used to
pay
★
Northern Indiana Public Service Co.
July 10 filed 370,894 shares of 4.40% cum.
outstanding 4% short-term notes and the then outstand¬
ing 3V2% and 3%% subordinated notes of El
preference
(convertible through Dec. 1, 1966—par value $40
being offered for subscription by common
The remainder will be used
to pay for explo¬
ration, acquisition and development of
mining and mill¬
ing properties and for working
capital. Underwriter—
White, Weld & Co., New York.
stockholders of record July 13 on the basis of
one pre¬
ferred share for each 10 common shares
held; rights to
expire Aug. 8. Price—$40 per share. Proceeds—To
Rea
(J. B.) Co., Inc., Santa
Monica, Calif.
May 29 (letter of notification) 50,.000 shares of
common
stock (par $5) per share.
Price—$6 per share. Proceeds
—For
inventory and working capital. Office—1723 Clov;erfield Blvd., Santa
Monica, Calif. Underwriter—Shearson, Hammill &
Co., Beverly Hills, Calif.
★ Reed Roller Bit Co.
July 6 (letter of notification) 10,000 shares of
repay
bank loans and for construction
program. Underwriters
—Central Republic Co.,
Inc., Chicago, 111.; and Blyth &
Co., Inc. and Merrill Lynch,
Pierce, Fenner & Beane,
both of New York.
*
/
★ NYPA Gas Corp., Buffalo, N. Y.
July 11 (letter of notification) 5,586 shares of common
stock
(no par) to be offered to present stockholaPrice—$8 per share. Proceeds—For on and gas
drilling
expenses.
Office—606 Root Bldg., 84 W.
Chippewa St.,
Buffalo 2, N. Y. Underwriter—None.
-
,
Paso and
Western.
share)
,
common
stock
to be offered under
company's Employees Stock
Purchase Plan. Price—At a
price not to exceed an aggre¬
gate of $300,000.
Proceeds
For the purchase of the
—
Oak
Mineral
& Oil
stock.
Corp., Farmington, N. M.
'
(letter of notification) 2,000,000 shares of commoD
stock (par five cents). Price—15
cents per share. Pro¬
Office
—
6501
Navigation Blvd., Houston, Tex.
Nov. 8
Underwriter—None.
ceeds—For exploration and
development and other gen¬
eral corporate purposes.
Underwriter—Philip Gordon A
Corp., Birmingham, Ala«
May 25 filed 2,985,000 shares of common
stock, of which
2,485,000 shares are to be offered to
public and 500,000
shares are to be reserved on
exercise of options to be
granted to employees of
company. Price—To public, $2
per share. Proceeds—The first
$3,000,000 will be used
Pacific Finance Corp. (Calif.
)
April 10 filed $25,000,000 of debentures due 1971. Price
—To be 'supplied by amendment. *
Proceeds—For reduc¬
tion
of
short-term
bank
loans.
purchase
pany to
Underwriters—Blyth &
Co., Inc., and Hornblower & Weeks.
nitely postponed.
.V'':y v„o'
C Pacific Power & Light Co.
,'V,,
purposes.
vJ
Reno
Dec.
June 7 filed 341,550 shares of common stock
(par $6.50)
being offered for subscription by common stockholders
of record July 11, 1956 at the rate of
for each 10 shares then
held;
one
tion
Price—$27
per
share.
Proceeds—For
on
and
Brothers, Union
Securities Corp., Bear, Stearns & Co. and Dean Witter
;•
Pan-lsra&l Oil Co., Inc. (Panama)
May 29 filed American voting trust certificates for
1,430,000 shares of common stock (par one cent), of which
1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to
options and 25,000 shares and certificates therefor are to
be offered for sale outside of the
United States. PriceTo be the market price on the American
Stock Exchange.
Proceeds—For exploration, drilling and
development of
in Israel. Underwriter—H. Kook &
oil and gas acreage
common
Price—At
stock
85%
more
than 10,000 shares
(par $1)
to be offered to employees.
of market value at the time of
offering.
Office—Main Ave., Nor-
Underwriter—None.
Pinellas
Industries, Inc., St. Petersburg, Fla.
(letter of notification) 8,000 shares of class A
stock (par $1).
Price—At the market (maxi¬
$6). Proceeds—For working capital. Office—34tb
16
St. & 22nd
remainder will
Company of thd
be
Underwriter—Luna,
used
for other
corporate
Matthews & Waites.
Hacienda, Inc., Inglewood, Calif.
filed 4,000,000 shares of
common stock.
Price...
Proceeds—To purchase real
prop¬
of buildings and other
facilities
general corporate purposes.
Bayley Investment Co.
•
Underwriter—Wil-
Republic Cement Corp.,
Prescott, Ariz. (8/8) —r*
April 20 filed 965,000 shares of capital stock.
"Price—-$10
share. Proceeds—For construction of
per
capital and general corporate
purposes.
Vickers Brothers, New York.
plant, working
Underwriter—
*Rex Uranium Corp., Farmington, N. M.
July 10 (letter of notification) an undetermined
number
of shares of common stock
(par five cents).
gregate amount not to exceed
$50,000.
mining
expenses.
Price—Ag¬
Proceeds
—
For
Underwriter—None.
★ Rockwood Corp.
July 9 (letter of notification)
2,000 shares of common
stock (par $25). Price
$25 per share. Proceeds
For
plant expansion and machinery.
Underwriter—None.
—
Proceeds—For working capital.
walk, Conn.
&
to
a l^gal reserve life insurance com¬
the "Reinsurance
—
★ Perkin-Elmer Corp.
July 9 (letter of notification) not
of
for
«on
Aug. 2,
construc¬
(jointly).
as
erty, for construction
Underwriters—Lehman
program.
19
organize
At par ($1 per share);
additional share
rights to expire
1956.
or
be known
South"; the
Offering—Indefi¬
•
r:.
Reinsurance Investment
$ Co., New York.
mum
A
50,000
(par $2).; Price—To
Underwriter—Utility Investments, Inc., Reno.
of El Paso Natural Gas
Co. and Western Natural
Gaa
Co. of record
July 16 on the basis of one share of Rare
Metals stock for each five shares
or portion thereof of
El Paso common stock and
one
share of Rare Metals
stock for each 11 shares or
portion thereof of Western
Natural Gas Co. common stock
held; (with an oversub¬
Charlotte, N. C. and McCarley & Co., Inc., Asheville, N. C.
Feb.
and
(letter of notification) 500,000 shares of
common
Price—At par (10 cents ner
share). Proceed*—
For mining expenses.
Office—573 Mill St.,
Reno, Nev.
15 filed
1,425,000 shares of capital stock (par $1)
being offered for subscription by common stockholders
Carolinas, Inc.; to reduce short term indebtedness; for
construction and modernization
program; and for work¬
ing capital. Underwriters — R. S. Dickson &
Co., Inc.,
-
Insurance Co.
Minerals, Inc., Reno, Nev.
Feb. 14
June
Price—To be
common
National Old Line
Underwriter—Skyline
stock.
Rare
supplied by amendment. Proceeds—To acquire
physical
properties and franchises of the Norwood and Marsnville
(N. C.) exchanges of the United Telephone Co. of the
stock
P.
Colo.
.
per
and
Proceeds—For mining expenses.
Office—Bryant Bldg.,
Montrose, Colo. Underwriter—Shaiman & Co.,
Denver,
★ North Carolina Telephone Co., Matthews, N. C.
July 24 filed 828,572 shares of common stock (par
$1) to "
be offered for
subscription by common stockholders at
Co., Inc., New York.
March 5
Price—$2 per share.
American
Uranium Corp.
(letter of notification) 6,000,000 shares of com¬
(par two cents)/ Price—Five cents per share.
Proceeds—For mining expenses.
stock
mon
July 9 filed 500,000 shares of class B non-voting common '
stock (par $1).
Price—$3 per share. Proceeds—To ex¬
pand business operations.
Underwriter—None, sales are
to be made by Eugene M.
Rosenson, President, of Pheonix, and Marcus T. Baumann, Vice-President and Treas¬
urer, of Tucson, Ariz.
' V; '"
& Co.
per
>
North
Federal
March 21
President.
the rate of two shares for each share held.
Mississippi
Prudential
filed
—
.,
Jan.
16
36
Ave., North, St. Petersburg, Fla. Underwriter
Stout & Co., New York.
—Eisele & King, Libaire,
Schwartz Carbonic
Co., El Paso, Texas
(letter of notification) 30,700 shares of common
stock to be offered for
subscription by stockholders on
basis of 0.6158 new share for
each common share held.
Price—$7.50 per share. Proceeds—For
expenses incident
to
manufacturing and sales of carbon dioxide. Office—
1600 East Eleventh
St., El Paso, Tex.
Feb. 27
Underwriter—None.
Security Casualty Insurance Co.
May 10 (letter of notification) 30,000 shares
stock
of common
(par 30 cents) and 90,000 shares of
participating
preferred stock (par 50
cents) to be offered in units of
one
share of
common and
★
Popular Plastic Products Corp.
July 9 (letter of notification) 150,000 shares of Class A
stock (par 10 cents).
Price—$2 per share. Proceeds—
For
working capital and general corporate purposes.
three shares of preferred stock.
Proceeds—For working
capital, etc.
Office—257 Josephine
St., Denver, Colo. Underwriter—
Intermountain Securities.
Inc., Denver, Colo.
>
Office—East Northport, L. I., N. Y.
Underwriter—Lepow
Securties Corp., New York.
Offering —
★ Servonics, Inc.
July 16 (letter of
notification) 204,000 shares of common
stock, of which 79,000 shares are
subject to an offer of
rescission. Price—At par
($1 per share). Proceeds—For
purchase of tools and equipment and
working capital.
Office—822 N. Henry
St., Alexandria, Va. Underwriter
Expected today
(July 26).
★
Prestole Corp.
July 3 (letter of notification) $300,000 of 6% convertible
sinking fund debentures due July 1, 1971 to be issued
in denominations of
$20 or any multiple thereof. Price
—100%
term
and
note
accrued
and
interest.
Proceeds—To
pay
short
to
buy equipment. Office—1345 Miami
St., Toledo, Ohio. Underwriter—Baker, Simonds & Co.,
Detroit, Mich. Offering—Being postponed. Larger deal
expected in
near
★ Producers
future.
Fuel
Co.
July 17 (letter of notification) 60,000 shares of common
Price—At par ($5 per
share). Proceeds—For the
acquisition of new properties; exploration and
develop¬
ment and working
capital. Office—1111 Keystone Bldg.,
Pittsburgh 22, Pa. Underwriter—None. » ■
r
stock.
.
.
Price—$4
per unit.
•—None.
Shangrila Uranium Corp.
Dec.
30
mon
stock.
(letter of notification)
Price—At par ($1
300,000 shares of
com¬
per share).
Proceeds—
For mining expenses.
Underwriter—Western States In¬
vestment Co., Tulsa, Okla.
Skiatron Electronics &
Television Corp.
16 filed 470,000 shares
of common stock
March
cents). Price
At the market. Proceeds
stockholders. Underwriter—None.
—
Continued
—
To
on
(par 10
selling
page
36
The
Commercial and Financial
Chronicle
.
.
Thursday, July 26, 1956
.
(412)
36
Thermoray
Price — To be supplied by amendment
Proceeds—Together with proceeds from private sale of
stockholder.
Corp.
,
,
.
,
(letter of notification) 380,000 shares of com¬
mon stock
(par 10 cents). Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B, Newark, N. J.
35
Continued from page
29
June
American Houses, Inc.
July 13 (letters of notification) 20,500 shares of common
stock (par 10 cents). Price — At market (estimated at
* Southwest
Underwriter—Eaton & Co.,
the account of selling
St., Houston, Tex.
Securities Corp., New York, N. Y.
$2,375 per share). Proceeds—For
stockholders. Office — 1200 Givens
$1,500,000 4%% first mortgage bonds and $900,000 of
3-year unsecured 4Y2% notes to a group of banks, will
be used to retire outstanding series A and series B 5%
bonds, and for expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &
first mortgage
Inc., New York.
Inc.
Tipton County Utilities Co.,
June 21
(letter of notification)
•
Co., Atlanta, Ga.; and Equitable Securities Corp.,- Nash¬
ville, Tenn; Offering — Temporarily postponed. Not
expected until sometime in September or October.
$115,000 of 5Vz% first
mortgage bonds dated Jan. 1, 1956 and due 1958-1980,
Southwestern Oklahoma Oil Co., Inc.
inclusive. Price—100% and accrued interest. Proceeds
Feb. 27 (letter of notification) 15,001 shares of common
—For construction program.
Office—Dyersburg, Tenn.
•fcock (par 10 cents) to be offered for subscription by * Underwriter—The First of Arizona Co., Phoenix, Ariz.
stockholders. Price—$10 per share. Proceeds-r-For ex¬
Offering—Withdrawn owing to steel strike.
Underwriter—Aetna
penses
incident to
development of oil and gas properties.
Bldg., Washington, D. C. Under¬
Togor Publications,
Office—801 Washington
writer—None.
M.
Southwestern Resources, Inc., Santa Fe, N.
8 filed 1,000,000 shares of common stock (par
June
Price*—$5 per share.
cents).
rities Co.,
25
Proceeds—To exercise op- v
Insurance Co.,
general
Secu¬
•^ Trinity Equipment Corp.
July 20 (letter of notification) $250,000
nated debentures due July 1, 1976 and
Indianapolis, Ind.
(par $2.50)
to be
Automobile
Underwriters, Inc., "Attorneys-in-Fact for the Subscrib¬
ers
at the State Automobile Insurance Association."
Price—proposed maximum is $7.50 per share. Proceeds
Proceeds—For expansion and
authority from the Insurance
of the State of Indiana to begin business.
Union Chemical
•
Standard.
July 9 (letter of notification) 200,000 shares
stock.
Price—At par (25 cents per share).
Office—825 Broadway, Farrell, Pa.
writer—Langley-Howard, Inc., Pittsburgh, Pa.
ing expenses.
South
Price
—
$5 per
Louisiana laws.
der
life insurance company un¬
Underwriter—Frank Keith & Co.,
;
Youngstown
offered
Suburban Land Developers,
„
Inc., Spokane, Wash.
Emsco common
Proceeds—To financ'e diversification pro¬
Underwriters—A. C. Allyn & Co., Inc., Chicago,
and Scherck, Richter Co., St. Louis, Mo.
(letter of notification) 920 shares of 6% cumula-f
tive non-voting preferred stock ($100 per share) and
At market.
writer—None.
•
.
f
•
Supercrete, Ltd., St. Boniface, Manitoba, Canada
28 filed 245,000 shares of common stock (par 25
Price—Expected at about $5.50 per share. Pro¬
ceeds—Approximately $675,000 for acquisition of stock of
Thomas Jackson & Sons, Ltd. and repayment of advances
to Supercrete by John Jackson; approximately $200,000
for expansion of production facilities; $90,000 for pay¬
ment of term bank loans; and approximately for'working
cents).
,
.
certain
—To
Ave.,
rick
Underwriters—Percy Dale Lan.
Co., Abilene, Texas
of notification) 300,000 shares of common
stock (par 25 cents). Price—$1 per share.
Proceeds—
For drilling for oil and gas expenses.
UnderwriterThomson Kernaghan & Co., Ltd., Toronto 1, Ont., Canada.
Texas Calgary
•
May 23 filed $2,000,000 of convertible
bentures due June 1,1976, and 136,000
the
company's
subordinated de¬
shares of common,
account and 61,000 shares for a selling
(10/1)
shares
to
100,000,000 shares of which about
expected to be offered on or about
5,750,Oct. 1
subscription by stockholders on the basis of one new
10 shares held on a record date in September to be fixed by the directors. Rights are to expire
for
share for each
"
Nov. 5, 1956. Price—$100 per share.
expansion of plant. Underwriter—None.
on
Appalachian Electric Power Co.
Proceeds—For
~v / ■; .*.••••». *;
,
May 31 it was announced company plans to issue and
sell in December $24,000,000 of first .mortgage bonds.
Ohio.
Wheland Co., Chattanooga, Tenn.
1956.
Telephone & Telegraph Co.
000 shares are
Clarksburg,. W. Va. Underwriters—Barrett Her~.
Co., Inc., New York, N. Y. and Ross, Borton &
'yjr
Western Securities Corp. of New Mexico
Feb. 13 (letter of notification) 50,000 shares of common
J stock. Price—At par ($1 per share). Proceeds—To start'
a dealer or brokerage business.
Office—921 Sims Bldg.,;
Albuquerque, N. M.
Underwriter—None.
American
000
&
Simon, Inc., Cleveland,
Pipe Line Co,
July 18 company announced stockholders will vote Sept.
5 on increasing the authorized capital stock from 60,000,-
Washington Natural Gas Co.
June 18 (letter of notification) 187,500 shares of com¬
mon stock
(par 10 cents). Price—$1.25 per share. Pro¬
ceeds— For working capital.
Office — 217 Washington
Target Uranium Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of com¬
mon stock
(par five cents). Price—20 cents per sharer
Proceeds—For mining expenses. Office — 422 Paulsen
was
Co.
^ Washington Mutual Investment Fund, Inc..
July 25 filed (by amendment) 1,000,000 additional shares
of common stock (par $1). Price—At market. Proceeds
—For investment. Office—Washington, D. C.
March 1
June 29 (letter
Ohio (8/14)
proposed expansion program.
Inc., San Francisco and New York.
.
it
Inc.
June
14 it was announced
that following proposed
merger with Panhandle Oil Corp., American Petrofina,
Ltd. will offer to stockholders of Panhandle and Petro¬
fina of Belgium and to Canadian Petrofina the oppor¬
tunity to subscribe to additional "A" stock of American
Petrofina. Price—$11 per« share. Underwriters—White,
Weld & Co.; Blyth & Co., Inc.; and Hemphill, Noyes 8c
stock (par $1).
Proceeds—For
Underwriter—Blyth & Co.,
(Utah)
May 7 (letter of notification) 300,000 shares of common
stock. Price —At par ($1 per share).
Proceeds —For
mining expenses. Office—Continental Bank Bldg., Salt
Lake City, Utah.
Underwriter — Coltharp Investment
Inc., Salt Lake City, Utah.
/ •"■.
^ihere and Kenneth Miller Howser, both of Spokane,
Co.JpSleveland,
20
American Petrofina,
New YJrk.
& Swasey
July 19 filed 120,000 shares x>f common
Price—To be supplied by amendment.
effective June 25.
fering—Expected in fourth quarter of
stockholders. Underwriter—Gran-
* Warner
Sweet Corp.
Bldg., Spokane, Wash.
selling
bery, Marache & Co.,
capital. Business — Manufacturer of concrete building
blocks, concrete pipe, pre-cast and prestressed concrete
building products, and other items. Underwriter—Straus,
Blosser & McDowell, Chicago, 111. Offering-^Expected
today (July 26).
; ':V-Sr.V:,
.
.
Products, Inc., New York
July 20 filed 89,480 shares of common stock (par 25
cents), of which 69,480 shares are to be offered to public
and 20,000 shares to 27 selected executives and key em¬
ployees. Price—To be supplied by amendment. Proceeds
June
stock. Statement
American Louisiana
★ Vita Food
•
offer will expire on
July 2 it was announced company plans issue and sale
of $15,000,000 of cumulative preferred stock. Underwriter
—May be determined by competitive bidding. Probable
bidders: White, Weld & Co.; The First Boston Corp. Of¬
Underwriter—Arthur M. Krensky & Co.,
Inc., Chicago, UL
•
..
Proceeds—For investment.
Industries, Inc., Evanston, III,
Jan. 24 (letter of notification) 7,000 shares of common
stock (par one cent). Price—$7 per share. Proceeds—
To selling stockholders.
Office — 2108 Jackson Ave.,,
Evanston, 111.
share of Youngstown
Corp., Miami, Fla.
reported early registration is expected
of 150,000 shares of common stock. Price—Around $4.25
per share. Proceeds — For expansion program. Under¬
writer—Arthur M. Krensky & Co., Inc., Chicago, 111.
Feb.
Vance
Philadelphia, Pa.
of Emsco;
Prospective Offerings
^ Value Line
April 18 filed 229,300 shares of common stock. Price—At
the market.
Proceeds—To selling stockholders. Under¬
shares
Air-Vue Products
Special Situations Fund, Inc.
July 20 filed 10,000,000 shares of capital stock. Price—
2,160 shares of common stock (par $10). Price—Of pre¬
ferred, $100 per share; and of common, $15 per share.
Proceeds—For improvements and working capital. Ofiflce—909 West Sprague Ave., Spokane, Wash. Under¬
writer—W, T. Anderson & Co., Inc., Spokane, Wash.
three
par)being
stock of Emsco Man-
8.
Youngstown presently owns 388,853 shares,
representing 34.94% of the 457,786 outstanding shares of
gram.
111.,
shares of common stock(no
Aug.
amendment.
\
Feb. 2
Sun Oil Co.,
each
for
* Universal Match Corp. (8/14)
July 20 filed $6,500,000 of convertible subordinated
debentures due Aug. 1, 1976. Price—To be supplied by
Underwriter—
incident to mining operations.
Co.. Salt Lake City, Utah.
JR. Reynolds &
Sheet & Tube Co.
in exchange for common
ufacturing Co. on the basis of one
,
Inc., Shreveport, La.
Strategic Metals* Inc., Tungstonia, Nevada
4 (letter of notification) 1,200,000 shares of com¬
mon
stock. Price—25 ceftts per share.
Proceeds—For
of oil and gas properties. Office—1520
St., Denver, Colo.
Underwriter—W^yn©
June 5 filed 22,977
shares of common stock (no par).
share. Proceeds — To organize a new
wholly-owned legal reserve
Forest
Jewell Co., Denver, Colo.
Shreveport, La.
Investors, Inc.,
Universal
of common
Proceeds—
For development
Under¬
June 27 filed 300,000
Jan.
expenses
Wyoming Oil & Gas Co.
Underwriter—None.
Fuel & Chemical Corp.
May 17 (letter of notification) 300,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
subsidiary of
a
Wycotah Oil & Uranium, Inc., Denver, Colo.
1,500,125 shares of common stock (par on®
cent) to be offered only to the owners of percentages off
working interests in certain oil and gas leases and to the
owners of certain uranium properties, and in exchange
for such working interests and properties. Price—Shares
to be valued at an arbitrary price of $4 per share. Pro¬
ceeds—To acquire properties. Underwriter—None; +*
,
^ United Cement Co., Inc.
(letter of notification) 3,700 shares of common
stock (par $1) to be offered to stockholders. Price—$12
per share. Proceeds—For expenses necessary for manu¬
facturing of lime and cement.
Address—P. O. Box 27,
together with 18,352 shares of Standard
stock, being the estimated number- of such
shares which may be purchased by the Plan Trustee for
the account of employees over a three-year period be¬
stock (par $1).
share.
Nov. 10 filed
July 13
subsidiary,
per
effective Feb. 28.
incident to oil production. Office — San
Houston. Tex. Underwriter—Mickle 8c
Co., Houston, Texas. Offering—Put off indefinitely.
Universal
Orleans, La.
Proceeds—To retire outstanding
obligations. Underwriters—Woolfolk & Shober and How¬
ard, Weil, Labouisse, Fredrichs & Co., both of New
Orleans, La.
Offering—Tentatively deferred. Statement
Price—$5
Jacinto Building,
Oil capital
Oil is
Woods Oil & Gas Co./ New
Oil Co., Houston, Texas
notification) 240,000 shares of common
(par 10 cents). Price—$1.25 per share. Proceeds—
Montevallo, Ala.
(par $5)
offered
be
Aug. 29 filed 400,000 shares of common
For expenses
^ Standard Oil Co. (Indiana)
July 23 filed $1,108,000 of participations in Standard's
Thrift Plan for Employees of Utah Oil Refining Co. and
Utah
$10).
Proceeds—To
amendment.
19 (letter of
stock
Underwriter—Goldman, Sachs & Co., New
Offering—Temporarily deferred.
1956.
of common stock (par
Inc.
74,016 shares of common stock
filed
25
initially for sale to the present stock¬
holders. It is not expected that more than 42,5(0 shares
will be sold immediately.
Price—$10 per share. Pro¬
ceeds—For lease of plant and purchase of equipment,
Office—Phillips, Wis. Underwriter—None. I
to
Union of Texas
Jan.
subsidiaries.
1,
Wisconsin Wood Products,
June
selling stockholders. Office—Chicago, III. Underwriters
—Alien & Co., Bache & Co. and Reynolds & Co., Inc.,
all of New York. Offering—Temporarily postponed.
(J. P.) & Co., Inc., New York
June 28 filed $30,000,000 of debentures due July 1, 1981.
IPrice—To be supplied by amendment. Proceeds—To re*r
duce short-term loans, to retire $950,000 of 43A% first
mortgage bonds and $368,679 of 6% preferred stock of
Aug.
ments.
& Materials Corp.
May 25 filed 200,000 shares
Price—To be supplied by
a golf house and other improve¬
Underwriter—None.
construction of
—For
Mo.
Stevens
ginning
working capital. Business
Underwriter—E. R. Bell Co., Kansas City,
Topeka, Kan.
r'vy-
Wilmington, Dei,
April 2 filed $1,500,000 of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club. Price—At par ($1,000 per debentures).
Proceeds
Wilmington Country Club, Inc.,
(letter of notification) 599,600 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—204 Central Bldg.,
Corp.* New York
July 9 filed 379,974 shares of 5%'cumulative convertible
preferred stock, series C, to be offered for subscription
by holders of outstanding common stock and series A
and series B preferred stock in the ratio of one share
o£ new preferred stock for each four shares of series A
or series B preferred stock and
one share of new pre¬
ferred for each 10 shares of common stock held. Price—
At par ($10 per share). Proceeds—To repay a $1,400,000
note held by Equity General
Corp., a subsidiary of
Equity Corp.; to liquidate existing bank loans and for
general corporate purposes.
Underwriter—None, but
Equity General Corp. has agreed to purchase at par,
plus accrued dividends, up to 290,000 shares of the new
preferred stock not subscribed for by stockholders. Lat¬
ter already owns 137,640 shares (3.23%) of Sterling com¬
mon stockypliis $1,800,000 of its convertible debentures.
on a l-for-7 basi;;. Price—
Proceeds—For working capital. Office
Road, Cincinnati, Ohio.
Underwriter—
stockholders
None.
Minerals, Inc., Topeka, Kansas
U-Kan
Maison
—3500
.
June 19
Sterling: Precision
its
of 6% subordi¬
40,000 shares of
sale of thermowells. Office — 472
Westfield Avenue East, Roselle Park, N. J. Underwriter
—Schuster & Co., Inc., New York.
Underwriter—None.
York.
$6.84 per share.
—Manufacture and
certificate of
Commissioner
class B common
stock (par $1) to be offered in units of $500 of.
debentures and 80 shares of stock. Price—$580 per unit.
200,000 shares of common stock
offered to agents and employees of
City, Utah.
Salt Lake
common
July 3 filed
—To obtain a
Office—547 East 21st South St.,
Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
Williamson Co., Cincinnati, Ohio ||
Feb. 20 (letter of notification) 20,666 shares of class B
common stock (par $1) to be offered for subscription by
—For mining expenses.
Inc., New York
of notification) 299,700 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.
Dallas, Texas.
Statesman
(letter of notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share). Proceeds
March 16 (letter
purchase additional properties and for
corporate purposes. Underwriter—Southwestern
tions,
Uranium Corp.
White Sage
Feb. 13
Underwriter—To be determined by
'
competitive bidding.
Stuart & Co.. Inc.; Union Secu¬
rities Corp. and Kuhn, Loeb & Co.r(jointly); The First
Boston Corp.; Harriman Ripley & Co., Inc.
Probable bidders: Halsey,
Blackstone Valley Gas
& Electric Co. /
April 30 it was reported company plans to issue 25,000
shares cumulative preferred stock (par $100). Proceeds
—To reduce bank loans. Underwriter—To be determined
Volume
184
Number 5554
-
.
The Commercial and
Financial Chronicle
.
.
by Competitive bidding. Probable bidders: W. C.
Langley & Co.; Stone & Webster Securities Corp.; Salomon^
Bros. & Hutzler;
Kidder, Peabody & Co.; Harriman Rip¬
ley & Co. Inc. Bids—Expected to be received sometime
in
July.
'
Boulder
July. 16
sell
($6
it
/.V"
f..
Acceptance
Corp.,
announced
was
Boulder,
plans
company
■.
offer
3,000,000 shares of its common stock. Price—At par
share). Proceeds—To construct hotel; set up in¬
loan
company; and for working capital and
general corporate purposes. Underwriter—Allen Invest¬
ment
Co., Boulder, Colo. Stock
to be sold in Colorado.
California Electric Power Co.
(10/9)
July 16 it was announced company plans to sell
$8,000,000 of first mortgage bonds.
Proceeds—For construc¬
tion program. Underwriter—To be
determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Shields &
Co.; Merrill Lynch, Pierce, Fenner &
and Kidder,
Peabody & Co. (jointly); Blyth &
Co., Inc.; The First Boston Corp. and Salomon Bros.
& Hutzler
(jointly); Lehman Brothers; White, Weld &
Co. Bids—Expected to be received on
Oct. 9.
Beane
•
Carolina
Power
&
Light Co.
(11/27)
March 22 it was announced
company plans to issue and
sell $15,000,000 of first
mortgage bonds due 1986. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co Inc.; Kuhn, Loeb &
Allyn & Co. Inc. (jointly); W. C. Langley
First Boston Corp.
(jointly); Equitable
Securities Corp.; Blyth & Co.,
Inc.; Kidder, Peabody &
Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly).
Co. and A. C.
&
Co.
and
The
it Delaware,
Commission,
for
applied
authority
to
to
the
issue
80,000 shares of cumulative preferred stock (par
Proceeds—To repay bank loans and for new con¬
$100).
struction.
Central
Underwriter—May be Union Securities Corp.,
Illinois Public Service Co.
of
this
exact
from
the
The
year.
sale
of
class
securities
of
It is also
prevail
at
the
in
the
some
money conditions
portion of the 1957 re¬
Incorporated; Equitable Securities
Corp.
(2)
For
pre¬
ferred stock—Lehman Brothers and
Bear, Stearns & Co.
(jointly); Blyth & Co., Inc. and The First Boston
Corp.
(jointly); Kidder, Peabody & Co. and Union Securities
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane.
(3) For common stock—Blyth & Co., Inc., Merrill
Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly); Glore, Forgan & Co.; The First Boston
Corp.; Lehman Brothers and Bear, Stearns & Co.
(joint¬
ly). Common stock will probably be offered first for
subscription by stockholders.
Central Wisconsin Motor
Transport Co.
July 9 it was reported early registration is
expected
of 34,600 shares of 6%
convertible preferred stock (par
$10) and 66,500 shares of common stock (the latter to
sold
by certain stockholders).
preferred to provide
Wisconsin Rapids, Wis.
Milwaukee, Wis/^
funds
Proceeds—From
shares
of
expansion.
Office—
Underwriter
Loewi &
Co.,
—
■
6%
sale
for
,
r
Chippewa Plastics, Inc.
July 16 it was reported company plans to issue
15,000
Coastal
•
cumulative
Allen &
convertible
sell
preferred
Feb. 29 it
with
Offering—Expected late in July.
was
announced
Corp.,
an
>
of
a
565.7
mile
pipeline
Underwriters—May be Leh¬
Brothers and Allen &
Co., both of New York.
Columbia Gas System, Inc.
(10/2)
man
Feb. 15 it was announced
company may issue and sell
$30,000,000 of debentures. Underwriter
To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan
Stanley & Co.
ed to be received
Commercial
1
March 12 it
was
tion of about
on
Bids—Expect¬
Oct. 2.
Crecfft
tures.
—
First Boston Corp., both of New York.
Commercial National Bank,
Shreveport, La.
June 26 stockholders
approved a plan to issue and
>
to
stockholders 31,000 additional shares of
capital stock
(par $25) on the basis of one new share for each 4.8064
shares
held
of record June
26, 1956. Price—$52
Proceeds-—To increase capital and
surplus.
share.
•'(.
sell
To
12
it
was
announced
Gas
Co.
(8/28)
company plans to issue and
due 1981.
Underwriter—
by competitive bidding.
Probable
bidders:. Halsey* Stuart '& Co/
Inc.; Morgan Stanley &•
Co.
and
The First
Boston
Corp (jointly); White, Weld
Paine,. Webber, Jackson & Curtis /jointly)
Bids—Expected to be received up to 11 a.m. (EDT) on
Aug. 28.
V
f'
&
Co.
and
may in the Fall do
Proceeds—For expansion. Un¬
financing.
Telephone Co.
(8/31)
announced the company
was
plans to offer ter.
its stockholders 580,531 additional shares of capital stock;
at rate of one new share for each eight shares held a&
Co., New York.
of
Broadcasting Corp.
the
announced that
was
Kansas
City Power & Light Co.
approved a proposal increasing '•«
bonded indebtedness of the company by $20,000,000. Un¬
derwriter
To be determined by competitive biddingProbable bidders: Halsey, Stuart & Co. Inc.; The FirstBoston Corp. and Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Cc.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp. (jointly); Lehman Brothers
and Bear, Stearns & Co. (jointly).
Amount and timing
has not yet been determined (probably not until fiiit.
half of 1957).
• ;
v;./\,r:'
■ :■/';
April
was
—
Fairchiid
Camera & Instrument Corp.
John H. Clough, President, announced
working capital financing will be required in the
June
11,
that
near
Underwriter—Glore, Forgan & Co., New York.
plans to issue and
$15,000,000 of debentures due in 1966, $10,000,000
capital debentures due in 1971 and about $3,500,000
.
sell
stock.
&
son
Curtis
—Expected
|
in
sell
General Contract Corp., St. Louis, Mo.
was announced that company plans
$5,000,000
additional financing in near future. Proceeds—To
April 18 it
go
>.
for
to
a
new
issue of
common
stock will
be
Marsh
July
General
^
offered
1
Telephone Co. of California
Rhoades
&
Co.,
New
stantial interest in the
financing that
Gulf
may
States
14 it
was
corporation,
Tex.
Carl M. Loeb,
has acquired a sub¬
may
handle
any new
be necessary.
Utilities
Co.
announced
(9/10)
company
Underwriter—To
gram.
be
determined
by competitive
Halsey, Stuart & Co. Inc.;
Lehman Brothers; Merrill Lynch, Pierce, Fenner & Beane
and White, Weld & Co.
(jointly); Salomon Bros. & Hutz¬
ler and Union Securities Corp.
(jointly); Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc. (jointly); Lee Higginson
Corp. and Carl M. Loeb, Rhoades & Co. (jointly); Stone
& Webster Securities Corp.
Bids—Tentatively scheduled
-Probable bidders:
on
States
Sept. 10.
Utilities Co.
(9/10)
July 14 company announced that it intends to offer pub¬
licly 90,000 shares of common stock (no par). Proceeds—
To repay bank loans.
Underwriter—To be determined
by competitive bidding. Probable bidders: Stone & Web¬
Securities
Beane
and
Rhoades
ceived
on
&
Corp.;
Lehman
Co.
Merrill Lynch, Pierce, Fenner &
Brothers
(jointly); Carl M. Loeb,
Bids—Tentatively scheduled to be re¬
Sept. 10.
Haskelite
'
July 16 it
was
of
$1,000,000
about
reported company may be considering sale
to $1,500,000 bonds or debentures.*
Underwriter—May be G. H. Walker & Co., St. Louis and
New York.
.
;
\
/•
stock.
was
and
ex¬
announced that this company may under¬
one or more real estate companies.
development of branch stores and re¬
For
—r
Meadowbrook
New York
July
24
shares
share
of
West
13
offered
were
(par $5)
capital stock
each
Bank,
Hempstead?,
shares
held
on
as
a
of
104,500 additional
basis of one new
July 12; rights to
,
13.
.
.
•
Metropolitan Edison Co. (11/13)
July 2 it was reported that company is considering the
sale of $10,000,000 first mortgage bonds due 1986. Underwriter—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
& Co. (jointly); The First Boston Corp. Bids—Expected,
Nov. 13.
'
■„
Metropolitan Edison Co./
April 16 it was reported company may issue in July
or
August, depending upon market conditions, about
$5,000,000 of preferred stock (in addition to about $5,000,000 of bonds).
Underwriter — For preferred stock also
to be determined by competitive bidding. Probable bid¬
ders:
Smith, Barney & Co. and Goldman, Sachs & Co.
(jointly); Salomon Bros. & Hutzler; Harriman Ripley St
Co. Inc. and Union Securities Corp. (jointly); Kidder,
Peabody & Co. and Drexel & Co. (jointly); The Fir«i
Boston Corp.
Michigan Bell Telephone Co.
April 19 company applied to the Michigan P. S. Com¬
mission for permission to issue and sell $30,000,000 of
40-year debentures later this year. Proceeds—For con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.
Minneapolis Gas Co.
April
16 stockholders approved
to
common
stock
an
increase
in
the
(par $1) from 1,700,000 shares
2,500,000 shares. Previous offer to stockholders was
by Kalman & Co., St. Paul, Minn.
underwritten
it Missouri Pacific RR.
are soon
expected to be invited for the
purchase
the company of $2,625,000
Boston
Hutzler.
group consisting of Kuhn, Loeb & Co., The First
Corp. and Lazard Freres & Co. has been ap¬
pointed to study the possibility of a loan to be issued
:
Price—$21 per share. Proceeds—
For expansion. Underwriter—Lee Higginson Corp., New
York. *•••/
•
•/*
' '
J '.f
'V.
Aug.
on
ing
Authority of the European Coal and Steel
Community, Luxembourg
' • ''
'
July 9 this Authority announced that an American bank¬
:
/-."'v.--".
stockholders
for
expire
National
equipment trust certifi¬
cates, series F, to mature in 15 equal annual instalments
(this is the first part of a $5,325,000 issue).
Probable
bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. &
High
•
Underwriters—Goldman, Sachs
Brothers, New York.
Bids
^
issue
to
Proceeds—For
financing for
authorized
Manufacturing Co.
plans
company
common
issue and
$13,000,000 of first mortgage bonds due 1986. Pro¬
ceeds—To repay bank loans and for construction pro¬
bidding.
reported
was
additional
,
•
on
plans to
sell
(jointly); Smith, Barney & Cc.
Co.
& Co. and Lehman
Kuhn, Loeb & Co. and Salomon Bros.
& Hutzler (jointly); Paine,
Webber, Jackson & Curtis
and Stone & Webster Securities Corp.
(jointly); White,
Weld & Co. and Kidder, Peabody & Co. (jointly). Bids
—Tentatively expected to be received on Sept. 12.
Worth,
York, who
$25,000,000 first mortgage
to
be determined by competitive
gional shopping centers.
Securities Corp.;
Fort
plans to issue and
pansion program. Underwriter—The First Trust Co. of
Lincoln, Neb.
Stock Increase—Stockholders will vote;
on
increasing authorized common stock from 100,000 to
200,000 shares, 'v;..;-';v ..*< ■ r';rv.
Proceeds
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
and
To
.V
,
it May Department Stores Co.
July 10 company announced plans to issue and sell about
$20,000,000 of first mortgage bonds, series F. Proceeds—
To discharge bank loans and for construction
program.
Dallas
it
some
take
(9/12)
it Great Southwest Corp. (Texas)
July 16 it was announced this°corporation is planning a
5,000-acre industrial development on two sites midway
Steel
July 19 it
'
.
3
sell
common stockholders before April,
Proceeds—To repay bank loans, etc., and for con¬
struction program.
—
Baxter, Williams & Co.
subscription by
1957.
$20,000,000
r
company
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly); Blair & Co., Incorporated and
Underwriter—
General Public,Utilities Corp.
.
...
April 2, A. F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock.
It is also pos¬
sible that
Fall
next
announced
was
bonds. Underwriter
May.
Securities Investment Co., a subsidiary.
G. H. Walker & Co., St. Louis, Mo.
Long Island Lighting Co.
April 17 it
Underwriters—Paine, Webber, Jack¬
Union Securities Corp.
Registration
and
late
stockholders
„
General Acceptance Corp.
April 2 it was reported company
common
24
—
York.
.
determined
;
.
per
$30,000,000 of debentures^
be
June 29 it
reported company plans to issue and sell
about 200,000 shares of class A stock. Price
Around
$4.50 per share. Underwriter — Vickers Brothers, New
as
Consolidated Natural
June
ore
Oil
..
ster
sell
&
<
Gulf
reported company plans early registra¬
public
Illinois Bell
was
Mont
Aug. 10 it
v\
$25,000,000 of junior subordinated deben¬
Underwriter
Kidder, Peabody & Co. and The
?
Gas
derwriter—Lee Higginson Corp., New York.
a
to be received
Corp.
v
Texas
Aug. 31; rights to expire on Sept. 28. About 99.3% of.
presently outstanding stock is owned by American {
corporation, following li-is¬ Telephone & Telegraph Co. Price — At par ($100 per
suance on Dec. 2 to stockholders of Allen B. Du
Mont
share). Proceeds—To repay advances from parent. U»- :
Laboratories, Inc. of 944,422 shares of common stock as
derwriter—None.
i
dividend, contemplates that additional shares will be
Kaiser Steel Corp.
V'V'offered to its stockholders.
This offering will be un¬
May 21 it was announced that the company is arranging
derwritten. Kuhn, Loeb & Co. and Van
Alstyne, Noel
to borrow $100,000,000 from institutional investors to »'
& Co. handled Du Mont Laboratories class A stock fi¬
finance its new major expansion program to involve ap¬
nancing some years ago. Stockholders of Laboratorie*
proximately $113,000,000. Underwriter—The First Boaon Oct. 10 approved formation of
ton Corp., New York.
Broadcasting firm.
/
Du
July
Texas
application has been filed
the FPC for construction
to cost $68,251,000.
system
Houston,
terms;,
be )
To
Hudson Pulp & Paper Corp.
25 it was reported company
announced that Foremost
Dairies, Inc.
future date to give its stockholders the
right
purchase its Dolly Madison stock.
Underwriter—
to
Co., Mil¬
Transmission
it
between
and
stock (par $10) and
28,000 shares of common stock. Pro¬
ceeds—For expansion. Underwriter—Loewi &
waukee, Wis.
15
—•
mine*.
Houston
some
'■■■i
'.-v-
Proceeds
^Community for expansion of coal
June
Dolly Madison International Foods Ltd.
Nov.
Intends at
of
by competitive bidding. Probable bidders:
(1) For bonds
—Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and A.
C. Allyn & Co. Inc.
(jointly); Salomon Bros. & Hutzler;
Blyth & Co., Inc., Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Blair & Co.
of
(8/8)
bidders:Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler.
The. time, amount and
37
Corp., Houston, Texas
Feb. 29 it was announced an application has been filed
with the FPC for permission to construct a 961 mile
pipeline system to. cost $105,836,000, Hearing on this
project started on July 9. Underwriters—May be Blyth
& Co., Inc., San Francisco, Calif.; and Scharff &
Jones,
Inc., New Orleans, La.
•
instalments of $117,May 15, 1971, inclusive.
Probable
to be sold and the
have not been deter¬
quirements for new money may be obtained in the
second half of this
year. Underwriter—To be determined
be
RR.
market.
market conditions.
on
mines, coking plants, power'plants and iron
to mature in 30 equal semi-annual
each from Nov. 15, 1956 to
of
possible, if favorable
time, that
Western
€00
half
second
security
timing, of the transaction
mined.
&
depend
loaned to.firms.in the
(EDT)
Aug. 8, at Room 2008, 140 Cedar St., New York 6,
N. Y., for the purchase from it of
$3,510,000 equipment
trust certificates, series
N, to be dated May 15, 1956, and
future.
May 16, M, S. Luthringer, President, said the new
money
required to finance the company's 1956 construction
program is estimated at about
$5,000,000 and will be
obtained
will
Eternalite, Inc., New Orleans, La.
and sell
New York,
Lackawanna
the American
on
.
/
Bids will be received by the
company up to noon
May 28 it
Central Illinois Light Co. (8/16)
July 5 it was announced company has
Commerce
.*■.
on
Bids—Scheduled for Nov. 27.
Illinois
III.
and
per
stalment
Crane Co., Chicago,
F; F. Elliott, President, on March 18 stated in
part: "To
meet the cost of present proposed
capital expenditures,
it appears that some additional
financing may be neces¬
sary." Underwriters—Morgan Stanley & Co. and Clark,
Dodge & Co.
Calo.
to
(413)
from
,
.
.
-
•
„
Continued
on page
3b
;
The Commercial and Financial
08
Chronicle
...
Thursday, July 26, 1956
(414)
Equipment Co., Birmingham, Ala.
early registration is expected of
200,000 shares of common stock.
Price—Expected at $3
per share.
Proceeds — For general corporate purposes.
Business
Manufactures swimming pools apd related
equipment. Underwriters—Mid-South Securities Co. and
Clark, Landstreet & Clark, Inc., Both of Nashville, Tenn.
^ National Pool
—
National Steel Corp.
.
to be received up to
Oklahoma
.
announced that it Is estimated
that total construction expenditures planned to start in
the current year and to be completed in mid-1959 will
amount to a minimum of $200,000,000. Underwriters—
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; and
the company
12
The First
Boston Corp.
Natural
Gas
Pipe
,
Line Co. of
America
was
ding, the following may bid:
White, Weld & Co.; Lehman
rities Corp, (jointly).
^
Halsey, Stuart & Co. Inc.;
Brothers and Union Secu¬
Jan.
it
3
was
announced
company
were
increase the authorized
/
Williams,
Corp.
President,
entered into
ki C<f>. (jointly); Blyth & Co., Inc.;
Bids—Tentatively expected to be re¬
Z
-
Southern Counties Gas Co.
of California
reported company may in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,
Fenner & Beane.
announced that
Electric Generating Co.
Southern
May 18, it w?s announced that this company, 50% owned
by Alabama Power Co. and 50% by Georgia Power Co.,
subsidiaries of Southern Co., plans to issue debt securi¬
Proceeds—Together with other funds, to construct
$150,000,000 steam electric generating plant
Alabama.
Underwriter—May be
determined by competitive bidding.
Probable bidders:
Halseyr. Stuart & Co. Inc.; Union Securities Corp.,
Equitable Securities Corp. and Drexel & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc. and Gold¬
ties.
and operate a
the Coosa River in
on
Co.; Kidder, Peabody & Co.; The Dominion Securities
Corp.; and Union Securities Corp. Registration — Ex¬
pected soon.
Pacific Telephone & Telegraph Co.
Witter
Jan. 30 it was
Underwriters—White, Weld &
to construction program.
May be
Dean
and
Kuhn, Loeb & Co.
ceived on Sept. 5.
April of 1955. Price—$10 per share. Proceeds—To¬
gether with funds from private sale of $35,000,000 addi¬
tional first mortgage bonds, and $10,000,000 of 5.6%
interim notes and borrowings- from banks, will be used
Probable bidders: Halsey, Stuart &
by competitive bidding. Probable bidStuart & Co. Inc.; The First Boston Corp.
determined
be
time of the original financing
at the
(9/5)
California Edison Co.
bers: Halsey,
in
determined by competitive bidding.
Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Co. and White, Weld & Co. (jointly).
—
R.
of
Southern
about 280,000 shares of common stock (par $1) are to be
sold in connection with subscription contracts which
plans to merge its
subsidiaries, Essex County Electric Co.* Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer
C.
be re¬
1956 construc¬
obtain a part
July 5 it was announced company plans to sell not ex¬
ceeding $40,000,000 of first and refunding mortgage bonds.
Proceeds—For construction program. Underwriter—To
Pacific Northwest Pipeline
20
.<
that it
new
000,000
(EDT) on Oct. 17.
to
1
•
money requirements from the sale of $5,preferred stock and the balance from the
private sale of $5,000,000 principal amount of bonds.
Underwriter—Kidder, Peabody & Co., New York.
its
of
5,000,000 shares. Company has no immediate plan to do
any equity financing.
Underwriters—(1) for any com- h
mon
stock (probably first to stockholders) — Merrill
Lynch, Pierce, Fenner & Beane. (2) For preferred stock,
to be determined by competitive bidding. Probable bid- ,
bers: Merrill Lynch, Pierce, Fenner & Beane and White,
Weld & Co. (jointly); The First Boston Corp.; Lehman:
Brothers and Blyth & Co., Inc. (jointly); Smith, Barney
& Co.; Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.
March
England Electric System
New
a.m.
Electric & Gas Co.
C. McMeekin, President, announced
that $10,000,000 of new money will
quired in connection with the company's
tion program.
The company proposes to
Electric Co.
preferred stock from 240,000 shares to 500,000 shares and
the authorized common stock from 3,681,000 shares to
reported company plans to issue and sell
late this Spring $35,000,000 of first mortgage bonds due
1976.
Underwriter—If determined by competitive bid¬
Feb. 20 it
11
&
stockholders voted
17
May
Gas
South Carolina
.
March 9, S.
is expected
to issue and
sell 60,000 shares of cumulative preferred stock (par
$100). Underwriter—To be determined by competitive
bidding. ' Probable bidders:
The First Boston Corp.;
i Blyth & Co., Inc.; Kuhn, Loeb & Co.; Union Securities
Corp. and Salomon Bros. & Hutzler (jointly); Harriman
Ripley & Co. Inc. and Stone & Webster Securities Corp.
(jointly); Lehman Brothers. Bids—Tentatively expected
July 2 it was reported company proposes
July 23 it was reported
March
(10/17)
Power Co.
Ohio
37
Continued from page
(8/21)
Sachs & Co. (jointly);
man,
Blyth & Co., Inc. and Kidder,
Morgan Stanley & Co: pTP
Southern Nevada Power Co. June 27 it was announced company plans to sell in the
New England Power Co.
.
/;
porary borrowings and for capital expenditures. Under- / Fall ot 1956 an estimated/$4,000,000 of first mortgage
Jan. 3 it was announced company plans to issue and sell
writer—To be determined by competitive bidding. Prob¬
bonds, series C, due 1986. Proceeds—For construction.
U
$10,000,000 of first mortgage bonds during October -•.* able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley# Offering—May be placed privately.
■> -•
of 1956.
Underwriters—To be determined by competi¬
& Co. Bids—Tentatively scheduled to be received up to Z
Z
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
8:30 a.m. (PDT) on Aug. 21.
* Southern Pacific Co. (8/2)
?
Registration — Expected
•}; I
Bidswvill be received by this company up to noon (EDT)
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union ■ v July 27.
Securities Corp. and Wood, Struthers & Co. (jointly);
on Aug. 2 for the purchase from it of $9,660,000 equip¬
P.
Pacific Telephone & Telegraph Co.
Lehman Brothers; The First Boston Corp.; Equitable Se¬
ment trust certificates, series UU, to mature in 15 equal
July 6 company was authorized by the California P. U.
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
annual-instalments. Probable bidders: Halsey, Stuart &
Commission to offer 1,562,267 additional common shares
Co. Inc.; Salomon Bros. & Hutzler.
Kidder, Peabody & Co. and White, Weld & Co. (jointly). ,
July 6 the California P. U. Commission authorized
the
Peabody & Co. (jointly);
to issue and sell $78,000,000 of 32-year deben¬
tures due Aug. 15, 1988.
Proceeds — To reduce tem¬
company
.i
common? and
to
>
England Telephone & Telegraph Co. (8/29)
June 20 directors authorized an offering to stockholders
New
6 basis.
of 613,010 additional shares of capital stock (par $100)
at the rate of one new share for each five shares held
Aug. 29. American Telephone & Telegraph Co.
of outstanding stock. Proceeds—To repay
of
as
preferred
on
a
lrforTelegraph Co. owns an
stockholders
American Telephone &
aggregate of 89.6% of the preferred and common stock.
Price—At par ($100 per share). Proceeds — To repay
temporary borrowings and for new construction. Under¬
writer—None.
Union Gas Co.
:>.
:
"V
-
<
announced company is considering issuance and sale to stockholders iater this year of some /
additional common stock on a pro rata basis (with an
was
oversubscription privilege).
.'///4r'
69.21%
owns
Southern
/
;
V April 19 it
Underwriter—None,
y
,
(Del.) .
Spencer /Telefilm Corp., Beaumont; Texas
Jan. 16 it was announced company plans to offer pub- *
April 9, Walter E. Seibert, President, announced that
• New
York, New Haven & Hartford RR. (7/31)
company will soon file a registration statement with the X licly to Texas residents 75,000 shares of capital stock.
Bids are expected to be received up to noon (EDT) on
SEC preparatory to an equity offering planned to take
Price-/-$1.50 per share. Business—To produce, sell and '
July 31 for the purchase from the company of $2,250,000
distribute syndicated films for television. Underwriter—
place later this year. Business—To explore, drill and
equipment trust certificates to mature annually up to
operate oil, gas and mineral properties in the United
Porter-Stacy Co., Houston, Tex
1971. Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
States, Cuba and Canada. Office—120 Broadway, New
Tampa Electric Co. (8/29)
v
mon Bros. & Hutzler.
York, N. Y.
July 9. it was reported company plans to issue and sell ,
North American Aviation, Inc.
Pittsburgh Rys. Co.
$10,000,000 of first mortgage bonds due 1986. Proceeds—
June 8, it was announced company plans to offer to its *
For construction program.
Underwriter—To be deter- s:
May 4 it was announced that Standard Gas & Electric
stockholders rights to subscribe for additional capital
Co. will offer to its stockholders rights to subscribe for
mined at competitive bidding. Probable bidders: Halsey,
stock (following proposed 2-for-l split up to be voted
540,651.75 shares of Pittsburgh Rys. Co. Price—About $6 t Stuart & Co. Inc.; Stone & Webster Securities Corp.;/
upon Aug. 3). Underwriter—Morgan Stanley & Co., New t
per share.
Goldqjan, Sachs & Co.; Kidder, Peabody & Co. Bids—
York.
/
Expected to be received up to 11 a.m. (EDT) on Aug. 29.
Post Publishing Co., Boston, Mass.
j
• Northern Natural Gas Co.
Registration—Planned for Aug. 1.
'
July 16 it was announced that a public offering of $4,July 19 it was reported company plans to finance its"" 000,000 5% three-year notes is planned if John S. Bot- ¥'"/ Tennessee Gas Transmission Co# ••
,
1
»
1956 construction program
(costing about $40,000,000)
tomly, a Boston attorney, does not exercise his option to
May ZIP, Gardiner Symonds, President, announced that
through issuance of debentures and treasury funds in
purchase the physical assets of the Boston Post by
company plans to sell about $50,000,000 of mortgage .
latter part of year. Underwriter—Probably
Blyth & Co.,
July 31. Underwriter—Lamont & Co., Inc., Boston, Mass.
bopds^late in the third quarter or early in the fourth
quarter of 1956. Proceeds — For expansion program.
Procter & Gamble Co.
'•
Northern States Power Co., Minn. (9/12)
Underwriters—Stone & Webster Securities Corp., White,
July 16 the company announced plans to negotiate the '
Weld *& Co. and Halsey, Stuart & Co. Inc.
July 2 it was reported company plans to issue and sell
borrowing of $70,000,000 probably through a public of- |
$•15,000,000 of first mortgage bonds due 1986. Proceeds
> United States Rubber Co.
,
>
1 <..."«•/'* '
fering of 25-year debentures sometime after Labor Day
—For construction program. Underwriter—To be deter¬
(Sept. 3).. Proceeds—For expansion program.
Under-, June 29, H. E. Humphreys, Jr., Chairman, stated that
mined by competitive
bidding. Probable bidders: Halsey,
writer—Goldman, Sachs & Co., New York.
issuance of
convertible debentures is one of several
Underwriter—None.
temporary borrowings.
-
'
Pan Cuba Oil & Metals Corp.
;
;
<
Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp. and Union Securities Corp.
(jointly); Smith,
Barney & Co.; Lehman Brothers and
& Co. (jointly); and
Glore, Forgan & Co. Bids—
Expected to be received on Sept. 12.
Riter
-
Offshore
construction program.
Gathering Corp., Houston, Texas
Nov.
18
David
C.
pany
has filed
an
Commission
for
a
certificate
of necessity to
pipeline off-shore the
gas
Louisiana from
Sabine
the State of
ing
system
the
River
to
the
Gulf
build
will
Coast
of
.
notes, convertible into preferred stock at maturity, and
stock). Underwriter—Salomon Bros. & Hutzler.
'
Co.
company plans to issue and sell
$28,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Bos¬
ton
Corp.; Blyth & Co. Inc.; Kuhn, Loeb & Co.; Union
Securities Corp. and Salomon Bros. & Hutzler (jointly)*
Harriman Ripley & Co. Inc. and Stone & Webster Secu¬
rities Corp. (jointly). Bids—Expected to be received up
to 11 a.m.
(EDT) on Oct.
17.
,
for
*
;
be
financed wholly by debt and from internal sources. Un- ■derwriter—If determined by competitive bidding, may;
include Halsey, Stuart & Co. Inc.; The First Boston Corp. ;
Racine
(10/17)
Jujy 2 it was reported
Puget Sound Power & Light Co. r.
announced that it estimates that its/
program - for: the
years
1956-1959 * will
Hydraulics & Machinery, Inc. *
July 9 it was reported that company plans to issue and
sell some additional common stock. Underwriter—Loewi
&
Co., Milwaukee, Wis.
Rochester Gas &
Electric Corp.
.
stockholders approved a proposal to increase
the authorized preferred stock by 100,000 shares (par
May
16
$100), of which it is planned to issue 50,000 shares later
in 1956.
Underwriter — The First Boston Corp., New
York.
University Life Insurance
21, Wayne Wallace,
Underwriter—None.
construction
amount to $87,000,000, including $20,000,000 budgeted
1956.
This large expansion, the company says, can
common
Power
"
Feb. 15 the company
cost
approximately $150,000,000. Type
of financing has not
yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
Ohio
1
Underwriter—Kuhn,
Co., Norman, OVIa.
«.
President, announced company
plans in near future to offer to its 200 stockholders 500,000 additional shares of common voting stock at rate
of not more than 2,500 shares to each stockholder. Rights
will expire on Aug. 1. Unsubscribed stock will be of-C
fered to residents of Oklahoma only. Price—$2 per share.
•
June
Morgan Stanley & Co. and Drexel &
Co. (jointly).
it is estimated that this gather¬
New York.
Underwriters—For any debenture
'
of
(jrata to common stockholders.
New York.
Loeb & Co.,
—
Brothers (jointly);
a
coast
-
Mississippi,
pro
may be determined by competitive bidding;
probable bidders include Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Kuhn, Loeb & Co., and Lehman*
bonds
'
Bintliff, President, announced com¬
application with the Federal Power
364-mile submarine
possible methods the company has been considering for.,
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and working capital. He added that, if
convertible debentures are issued, they will be offered
Public Service Electric & Gas Co.
April 16, Lyle McDonald, Chairman, estimated that re¬
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000. The types and amounts
of the new securities to be issued and the time of sale
have not been determined.
Proceeds—To help finance
Virginia Electric & Power Co. (9/25)
announced company plans to issue
Feb. 6 it was
and sell.
$20,000,000 " of first and refunding
mortgage/bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhq, Loeb
Co., American Securities Corp. and Wertheim & Co.
(jointly); Salomon Bros. & Hutzler; Stone & WebsterSecurities Corp.; White, Weld & Co.; Union Securitiei
&
Corp.
Bids—To be opened on Sept.
25.'
Washington Gas Light Co.
June 7 it was announced company proposes
to finance
construction of pipeline in Virginia to
cost about $3,380,000 from funds generated by operations,
sale of common stock and temporary bank borrowings.
Underwriter
The First Boston Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.
proposed
new
—
Volume
184
Number
5554
.
.
.
The Commercial and Financial Chronicle
(415)
Continued from page 5
In line
Observations.
institution's
housing developments
disguised equity type, but without
prefaced
article
our
with
the
are
of
some
comment
•
•
which
with our citation of the
imponderables in the way of
lofty regulatory aims, Chairman
Armstrong disclosed during the
conference, that, on representations from the Small Business Ad¬
ministration,
an .important
segment
of
the
nation's
equity
financing would be obstructed, if another proposal previously
it
'But our conclusion, it was
"wholly irrespective of one's stand on
clearly
tion and
dropped.
reasonable
providing, by
trated
holds
was
on our
no
finding that "we
monopoly
concerned
institutional
on
with
risk
the
common
stock,
The
aspects
stock
the
technique
of
that
policy
MR.
we
are
with
myself.
cheap
serve
that
glad
All
I
know
great deal of interest
your
in
the
System supplied a heart to
—
a heart that pumps
blood
into
needed.
column in
the July 12 issue of The Commercial
and Financial Chronicle.
Quite properly it points out that there is a risk in
any type of
investment, and that the important thing from the investor's
standpoint is to determine what type of risk and what
degree
the
body
to
the
Federal
1913,
our
in
interest
establishment
of
Reserve
System in
suffered from
economy
of
been
that
deals
have presented against variable
the risk factor. This is that
with
annuities
receiving
tract in which the company
guaranteed
amount upon the occurrence of a
•
*
contracts
a
where the
belief that
customer
takes
all
the
this is
done it is
a
;
r:
only
sumed
.
variable
annuity bills would permit.
July 13, 1956
HUGH
on
;
Cordially yours,
,
W.
that the Variable Annuity technique
the ground of the difficulty of disclosing the
nature of the risks, both income and
assetwise; and because of the
rebut
On
that whatever risk involved
i
article
did
en¬
was
shiftable to "the institution."
This
comfortably, and quite typically, seeks to escape from
the reality that the company, no more than the
policyholder, is
not free from the impact; of
underlying asset deterioration. We
have endeavored to show that actually the institutional
port¬
folio's bond, mortgage, and housing
development, in the long run
must be subjected to the acid test of performance as is the
common
.
our
the
credo,-typically stated bv Mr. Lone, that
"throughout the history of the life insurance business in America,
people buying insurance contracts have known that they were
buying contracts that were riskless to them," with its implication
,
;
the other hand,
stock.
;.:Y,
Bumps
:
on
V.*'
That Regulation Road
less
suc¬
pro¬
than
$50,000, if "un-seasoned," would be re¬
quired to use an offering circular.
The Commission in its proposal
lays down the criteria of
earnings. Exemptions would be unavailable to companies which
^
have not had
a
net income from
operations for at least
past five fiscal years.
Even
one
of the
-
if this qualification
clusive
comprised
a
test of reasonably in¬
"seasoning," it is difficult to see where this is consistent
the continually re-affirmed purposes and
philosophy of the
securities acts.
In
discussing his proposals at an informal news
with
conference, Chairman Armstrong maintained that it would
mote
be
no
disclosure
assumed
issues shall
tions?
well
pro¬
enforcement obligations. Is it not to
consistency would nrompt the conviction that
as
that
exempted from such unexceptionable prescrip¬
But if not, surely the test cannot be the
concept, so tenu¬
ously def ined,
as
"seasoning."
.
into
1954.
concerned
was
in
Market."
It
not difficult then to see
the effects that easy
money might
was
have
the situation. Stocks
on
low,
yields
late
were
high.
were
seemed
money
certain
business activity,
Easy
to
stimu¬
to increase
earnings and dividends, and even¬
tually bring a revival of senti¬
that
and
—
But
is
just
what
is
the monetary situation
reverse of what it was in
now
the
1953.
in
Money has firmed not only
the
U.
world;
period
we
S.
all
but
demands
around
for
loans
the
have
scarce, and
the various
monetary authorities have taken
steps to see that the great demand
for loans will, not mushroom into
a
great inflation. ; ■;
>
There
is
.
nevertheless
great
complacency that the Federal Re¬
will
serve
too
a
bad
it
in
in
the
business
stock
since this is
that
in
happens
decline
break
to
see
an
prices,
nothing*
way
or
a
non-political,
body as any
is
as
a
purely objective
be, and it will
dends to
;
they
of
well
not
what
,
.
what
tion
as
soon
brief
and
money
businessmen
long-term
technical
on
of
sup¬
to
all
may-
major
can
much
of
the
face
and
future,
diversion
world's
the
current
of taxes, must precede such
development.
Profits
I.
The profit picture—that is the
for
earnings and divi¬
dends—is not, in our
opinion, a
outlook
bearish
very
clined
it."
saw
at
year
Enthu¬
tion
a
adjust the situa¬
we
the
half
preoccuption with armament pro¬
duction, with consequent reduc¬
the facts were, but ;
as
to
a
situation,
a
higher
degree
of
equanimity with which investors
people
thought they were.
only feasible thing; we
was
Divi¬
bull market peaks in the
past, but
further betterment of the world
what
people
The
.
could do
carry
of
the
around
up
siasm level achieved
often
a
rise
psychology, and what counted
was
$1
Eventually, over a several
period, we think sentiment
count most
recall
the
would
to
level—but not back
Caution level of two and
three years ago when
of
far
of
Hope
What
be—what
proceeding
sentiment
Price
something below $20 per
just slightly below the
share
what
measure
I
that
sufficiently
Market
;:- years ago.
may
to
been
this
oc¬
even in retrospect seemed
pretty close to perfect. But
if they were right in fact,
were
wrong
on
the scales
be
to
The point is that reassurance to
the public, to business and to the
Administration that no one need
of
fear
All
one.
expect
is
we
are
in¬
shading
earnings
and
some
dustrial
in
quarters
some
as
be
the truth.
In
reversal
a
farther
from
Y-;
1953,
the writing on
the wall, and we believed what
our monetary officials were say¬
ing and doing, and the results
justified
feel
saw
we
that
the
belief.
same
Today, we
We are not.
way.
others are, looking for
reasons
for believing our mone¬
tary authorities do not mean what
they are doing and saying.
We
go along and believe the efforts
as
many
the Federal Reserve
is making to
bring on a bit
of deflation with consequent risk
to stock prices.
avert inflation may
The
monetary
still
aspects
situation
current
have
of
and
in
the
1953
when
Dow-Jones
In¬
that
earnings might expand
to
$35 and dividends to $22f
around
Actually, earnings, on the DowJones Industrial Average last
year
$35.78, and the current divi¬
dend rate is $22.11.
What we see in prospect is no
real collapse of business
were
activity
—no
sharp decline at all.
look
for
is
All
we
some
shading in ac¬
tivity in such industries as build¬
ing and automobiles, and some
tempering of corporations' inten¬
tions to expand plant.
Consumer
purchasing power is likely to be
well-maintained.
All in all, a 5
to 10% decline in activity, a 10%
decline in earnings and a 7% de¬
cline in dividends seem likely.
the
been
Back
on
Average were approxK
mately $27, and the dividend was
$16, we made a fortunate guess
monetary policy. Nothing
believe could
we
record
earnings
choking off of mone¬
tary supply has been interpreted
of recent
recent
dividends.
real
a
Were
dend
the current D.J.I.A.
rate
divi¬
of
$22.11 to decline by
7%, it would be approximately
$20.50. Were this capitalized by
the market at a 5%.% yield basis
(or 19 times), we would get a
rea¬
Dow-Jones Industrial Average of
390.
: '
l
That, is what we consider
bearish, and the better
things superficially look, the more
bearish they will become. I would
say this aspect of the situation ac¬
are
for about 50%
counts
sons
for
of
being cautious,
our
-
;;
to
Sentiment
'
,
Sentiment
factor
near
rise
ply that
especially
election year.
Board
that
of
point I cannot empha¬
strongly that our Fed¬
Reserve
recede
are
are.
some
were
bad
this
too
has
thinking.
measurements
it
made
but,
portant
one
stock
of
search
has
is
another
elusive
nevertheless, an im¬
making for the level
Extensive
re¬
a long period
to time
that
the
prevailing
prices.-
over
shown
be
the
Some
twitted
tious
risk
of
this
market.
-
soon
them out of the market too
This
a
is
old
an
market
'
friends
have
being too cau¬
of having takqn
about
me
too
in
my
is
story.
not
the
early.
The top of
reverse
of
bottom.
Bottoms usually occur
decisively and promptly, and are
Market Price of $1 of Dividends
not
be
pressured into relieving
easily identified, at least in re¬
what may seem to some a diffi¬ to be the best measure of senti¬ trospect.
•
cult situation because of political ment.
Further,
that
sentiment
Tops in contrast usually extend
tends to fluctuate within rather over a
considerations.
long period of time and
Federal Reserve Board Chair¬ well-defined limits ranging from various stocks and groups
top off
a
$14 or lower price for a dollar at different periods to time. Ro¬
man Martin, speaking
before the
Pennsylvania Bankers Association of dividends to a $30 or higher tating
strength
in
stock
after
in Atlantic City on May 4, stated price for a dollar of dividends.
stock,
group
after group, each
We have developed an effective
that the Federal Reserve Svstem
representing a distinct minority
has
the
authority to influence chart showing the trend of com¬ of the market, give the market
mon stock yields in
the money supply "for the pur¬
terms of the an appearance of strength that
price of $1
of dividends.
The belies its real position.
pose of providing a money supply
Thus I
in harmony with economic needs chart covers the period going back
can
appreciate my friends' atti¬
can
yield
on
common
stocks
or
a
the
.
—not for
arbitrary juggling of the
supply to fix some par¬
as
be
did
study entitled "Money and the
eral
:
posal for .revision of "Regulation A" which would confine its
exemption from registration, now granted to aU offerings not ex¬
ceeding $300,000 in amount, to so-called "seasoned" companies.
even
money
size
there's further
of
a
as
On
The practical difficulties involved in regulation, through
cessive variations, are again highlighted in
Issues
and
happened.
We agree with Mr.
Long
to
sofar
behalf of Open-End Investment Co. Committee
regulatory deficiencies.
market
open
published our reasons for be¬
bullish on the situation in¬
we
ing
ment
LONG
is objectionable on
deavor
the
•
Thi§ reversal was apparent as
early as May, 1953; in that month
an
entirely different contract from the traditional one.
In short, v/e have never said that we
are
opposed to
people undertaking the risk which is inherent in investment.
However, we have always stated our belief that people should
understand thoroughly; the extent of risk that
they undertake
in any savings or investment
program, and that this under¬
standing is not likely to exist if variable contracts ar<* fold
by life insurance agents in the manner that the New Jersey
.
a
they
a
av¬
be
seem
think
even
Their efforts continued
an
buying
or
everything possible >. to ease;, the
monetary situation. One step fol¬
lowed another in quick succession.
contracts
the
ages
things
was
can
run, but what
the short run is
in
counts
■>-
actually happened
rise
yardstick has yet
to
may
things really
in the long
to
in
and
buying a variable contract from
insurance company—which had
always
in which the insurance company asinvestment risk—thev were
indeed
representative of
boom
gets old, and that is
are
1953, when most every¬
thought
we
were
headed
down the drain, the
monetary au¬
thorities; abruptly reversed their
course, they began to buy bonds
would not understand that in
issued
we
arteriosclerosis
Back in
opinion that most of the r»vblic
our
market
of
reliable
ex¬
they
demands
'■>"?
devised
people
old-fashioned type of heart attack.
regulation to which other forms of risk investment are
subjected in the public interest. Why shouldn't this transfer
of the insurance company's risk be
fully disclosed in a statu¬
tory prospectus as required by the 1933 and 1940 Federal Acts?
Unless
Reserve
one
-State
.
pros¬
"No
witnessing today. It
will be cured in due
course, and
there is no need for fearing the
it is
Federal
same
business
what
dollar
investment risk,
period
a
bull
as
they should submit to the
a
after
the investment risk itself.
If insurance
companies are to
be permitted to sell in interstate commerce an
investment con¬
our
economy.
since our Federal
have
of
tract
periodically
our
But
specifically defined event.
contemplated by bills currently
before the New Jersey Legislature
provide no such guarantee
to the purchaser.
All of the risk of investment loss is borne
by the insurance company's customer; the company bears none
Variable
.
depressions and de¬
that
System has been functioning that
has not occurred. We
occasionally
con¬
a
to nay a fixed
severe
trated
throughout the
history of the life insurance business in America, people
buy¬
ing insurance contracts have known that
they were buying
contracts that were riskless to them.
That is, while the insur¬
ance
company was investing in real estate,
mortgages, and
various other fixed income
investments, all of which involve
certain element of risk, the
policyholder was
the
Confidence,
rallied
credit be reflected in market rates
interest.
and
entirely reasonable
some
loan
If
level,
price,
$30
a
much to expect,
price
dropped to $21.50 early this year,
to around
$24 in April,
and then moved
irregularly lower.
Our
expectation for some time
growth,
rates.
by
Hope
an
What
of the Federal Reserve Policy of
letting the supply and demand for
flations
assume.
we
a
rise to the $25 price last
Septem¬
ber.
Subsequently,
the
it really signals continuance
curs,
arguments
the
only
pectation.
.
with
normal
erage
,
Prior
our
banks
.
expect the result to be
The article neglects to
point up one important element of
afford to
level stability
and then to let
scale much greater than
a
of
can
high
to
economy
crowd
on
with
periodic heart attacks—or money
panics. They were the chief cause
of risk he
tween
seemed
money
stimulating effects when needed,
but
siphons
it
off
when
not
a
propriate
is
body
new
MAY:
I have read
it
much
very
.
the important
discussion,
to reproduce:
DEAR
of
understand
is stimulating interest rates be determined in
and dear money the reverse.
;
;■/< the market place where they can
Money is the lifeblood of the rise or fall in response to
supply
body economic. Our Federal Re¬ and demand.
If borrowers
following timely communication, dealing with various
the Variable Annuity
proposal and coming from ail
one
to
about
of
investment authority speaking on behalf of
groups participating in the current public
not
but something between a
$20, and
possibly a $25 price, that is be¬
Today's Stock Market
fess
fluctuability." Thus, our implication
suitability of the common stock in the
portfolio, rather than with
Thus, it seemed
expect
seemed much too
represented
or
selling.
to
Continued from first
page
was concen¬
common
outlook,.
rise
in
earnings and dividends,
but also an increase in the
Market
Price of $1 of Dividends.
An in¬
crease
to
the Enthusiasm
the
must realize that the
of
escrow or otherwise, for the return to new issue
subscribers of the money paid in unless a minimum
(as 85%) of
the total offering shall have been
sold and paid for within six
.months of the
offering.
■*
desirability of toe pro¬
posal to introduce variability into annuities"
(in fact, on balance,
we are
against the pending proposal); and, relating rather to insti¬
tutional portfolio attitudes toward the
by the Commission were adopted, it has just been
This long-standing proposal in question embodied a rule
taken
was
part
—
promulgated
stated,
the
on
•
actually a thinly
Advantages. We
prompted by
the prevalent misconceived
assumptions of the comparative risk
of common stocks as
revealed in toe public discussion over the
proposal to permit life insurance companies to sell Variable
An¬
nuities.
attitude
Sentiment seemed far to cau¬
tious in
1953
on
the basis
of
the monetary and economic
situa¬
was
the
that
cautious
investors.
39
money
ticular
either
level
high
mental
volume
or
of
interest
low.
.
.
requisite is to
of
bank
.
rates,
The funda¬
see
that the
reserves
is
ap¬
to
the
Two
turn
and
of
the
century.
tude.
half
And
all
years ago, in
late 1953, sentiment was low. The
investor was able to buy $1
of
date
dividend income for under $17
years ago:
viom
nf-
a
ahnnt
V
inriirat.inff
(a
a
is
I
to
Rothschild
can
at least to
what Baron
say
repeat
said
more
than
130
"I made my fortune by
buying low and selling too soon."
?
Financial Chronicle
The Commercial and
40
.
.
Thursday, July 26, 1956
.
(416)
Calif.—John J.
Whole¬
for
North
American Securities Company in
southern California and Arizona,
in Los Angeles.
with headquarters
This company is manager
and dis¬
Commonwealth In¬
and Common¬
wealth Stock Fund, two mutual
funds With total assets exceeding
$100,000,000.
Prior to joining North Ameri¬
can,
Mr. Hood was Vice-Presi¬
dent
and
General Manager of
Service
Metal
Fabricators
of
Santa Monica.
Now With J.
Logan
(Special to The Financial
is
Blitz
Chronicle)
now
with J.
Beverly Boule¬
affiliated
Logan & Co., 2115
vard.
!
I
I
Investing for Income
through
I
mutual fund, the primary objec¬
tive of which is to provide an
investment in a diversified group
«
preferred and common
stocks selected because of their
relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk
involved. Prospectus and other
information
may
be obtained
from your investment dealer or:
of bonds,
Research
.
J
DEVELOPMENT
MUTUAL
FUND, INC.
Development Securities Co., Inc.
WASHINGTON 7, D. C.
FEderal
3-1000
May 31
dollars
The
June
on
"has
behind
growth,
he
force
postwar
MIT Shareholders
Fidelity Fund
Cites Asset Gain
MUTUAL FUNDS?
1956 is
expansion in the
capital expendi¬
plant, equipment and
21%
of
remarkable increase
a
the
over
amount
you
free prospectus-
a
booklet
;
tors
glad to send
describing Inves-
Mutual,
balanced fund
than
500
Inc.
This
has
more
diversified
holdings of investment
quality bonds, and both
actually
value of
Dec.
1955
31,
21.3%
over
$197,153,711
9.9%
the
over
$217,596,660
and
on
approximately
the net asset value of
as
of June
30,
1955.
The number of shares outstanding
attained
of
number
new
highs
shareholders
of June 30,
as
1956.
fields, "is just
many
asset value
Investors
large
and
representing
91,209,533
owned by
141,974 share¬
holders
fojr
the
quarter
ended
June 30, 1956. For the same pe¬
riod
a
sets
of
year
ago
of
the Trust had
$904,905,194
shareholders
with "126,901
the
and
86,138,229
Shares
equivalent
outstanding.
shares
split 3-for-l
were
share
per
as
of
June
30,
amount
gain
On
31f 1955 and
June 30, 1955.
share
was
;
to
paid by the
objectives of reasonable
return, preservation of
year
capital, and long-term
appreciation possibilities
period of 1955.
from
to
pared
22
investment- income,
cents
with 20
share
com¬
in the
same
per
cents
'-.-'•V
>
on
June
1956
together
payment
with
of
share
28
a
on
This
$11.69.
was
capital
cents
(ad¬
in February is equivalent
$11.97 and compares with a per
share
year
growth
holders
in
also
of
the
$10.50"last.
reports that the
number
of
share¬
the year end was
11,107,
one
of
the
largest
six
months' gains in shareholders in
32-year history. "*
now;,
be
can
million
tons
considered
railroad
in
issues
steel
re¬
were
not
is
strike
In¬
detri-
Fundamental
by
oraer.
M.I.F. Assets!
of
Production
to
within
the
the
ago.
is
ex¬
several-fold
from
property
con-
con-
Mines began
Noranda
basis
scale
full
years
year,
he
production
Gaspe
large
by
a
next
Copper
trolled
over seven
uranium
increase
pected
tinued.
little
a
this Spring,
The
important new base metal
property of Geco Mines in Ontario will go into production next
year, and
the vast mineral discoveries
in
Brunswick
New
the Pine Point
and
of The North-
area
should
Territories
west
serve
to
At
$10,000,000
Mutual
-
an
Investment
Inc.,
Fund,
open-end, fully-managed fund,
of over $10,000,000
of July 2, 1956. This total is an
reports assets
as
previous
increase of 47% over the
12-month period. A corresponding
increase is also indicated in the
number of shares outstanding,
which now exceed 1,000,000.
The fund's portfolio, as of June
30, 1956, consisted of 80% in common stocks; 10% in U. S. Governments and cash; 7% in other bonds
in preferred stocks,
and notes; 3%
Largest common stock investments
were
in Oils
(13%), Chemicals
lead,
production of '(9%), Utilities (8%), Gas (5%-).*
metals^ in
Investment Company of Amerhe said. V
P
ica reported today that total net
and
zinc
future years,
other
assets of the mutual fund have
reached a new record of more
In
common
stocks and 3.7% in than $93 million, compared with
Government of Canada securities, approximately $76,500,000 on Jan.
corporate bonds and
notes, and 1. 1956, the . beginning of'the curpreferred stocks. Major industry,,- rent fiscal year. t
v "
±
1
At
had
the
end
95.5%
of
May
Fund,
the
assets invested
of net
.
were
metals and min-
.;The
.
.
announced
also
directors
the election of Albert P. Drasdo
20.5%; construction, 9.2%; paper as treasurer. He will continue as
9.3%; non-Canadian, 15.5%.-.
vice
president,
treasurer, .and
ing, 23.8% of net assets; petroleum
EATON & HOWARD
EATON & HOWARD
BALANCED FUND
STOCK FUND
During the year ended May 31,' director of Capital
the
1956
: :
"V ;
-
:
tManaged by
;•
E ATO N
DIVERSIFIED SERVICES, INC.
907 Investors Building
.
J-
'
'*
i•-
■
HOWARD
BOSTON
Prospectuses from
Russ Building.
established 1924
SAN FRANCISCO
your
at
...
BOSTON
:
~
>
&
•,
Investment Dealer or the above.
Fund
purchased securb;-panyr
aggerate cost of $24,-.
811,575 and sold securities valued .
ties with
INCORPORATED
,
24 Federal Street
Minneapolis 2, Minn.
those
trade
The
vestors' management to be
reserves
of
substantially
brought ^ into
only two
investments
prospectus-
booklet, just write:
while
retail
increase\Canadian
j
since
the Trust's
'
value
asset
at this time.
The Trust
investment basis..
your
stocks
creased,
production.; The Dominion's pro¬
duction of iron ore this year is
on
justed)
-
June 25, 1956, a dividend of
11 cents per
as¬
29 of this year.
with $14.80 as of Dec.
on
aircraft,
in
machinery,
paper
and
were moderately in¬
finance,
anu
year-cqd^ the
development
western
gas,
untapped, -
Trust
reports total net assets of $1,066-
June 30, 1956 was $14.95 compared
$14.32
the >1955
investments
mental to the long-term outlook
I°r steel stocks, and the Fund has
in recent years," Mr. Stires said,
maintained its largest investments
He pointed out that with the conin the petroleum, steel, railroad,
struction
of gas
pipelines, Can- paper and metal groups in that
discoveries
the
ada's
Large Gain
Massachusetts
The net asset value per
Net
bringing the total for the first half
For
Since
Fund's
duced.
compared with
Fund
on >an
over
expected to exceed 20 million tons
stocks selected with the
.
an
share
1954."
beginning to enjoy the benefits of
paid during the first
increase of 1 cent per
those paid in the cor¬
responding six months of 1955.
share,
spent on capital investment in
1955, which was itself a record
year
some
11% higher than in
057,703
preferred and common
.
Dividends
half of 1956 totalled 24 cents per
steel
Canada, in
the number of share¬
country.
housing. The government forecast
for
above the fig¬
7%
reached 76,274—a gain of 12,754
shareholders in 12 months' time,
niaking the Fund one of the most
widely held investments in the
annual volume 6'f
shares
.and. the
We will be
On July 1
uninterrupted
ture on new
or
$15.63 reported at the end
1955.
holders of Fundamental Investors
undoubtedly been the almost
natural
Show
30,
net asset
$16.74,
of
ure
of
said,
of
v
lion gain over the 1955 year-end.
Net asset value per share on July 1
expenditures that have been made
year-end 1955.
approximately
On July 1, 1956 total net assets
Fundamental
Investors
were
$363,843,669—the highest July 1
total in its history and a $40 mil-
Can¬
1956, Fidelity
Fund reported a. net asset value
of $239,154,780. This is an increase
Interested in
of
was
dynamic
Co. of Canada,
Canadian Brew-
Reports Net Assets
Up $40 Million
Stires stated that the prin¬
policy determinant of the
Fund is participation in the longterm development of the Domin¬
ion, "whose postwar rate of industrial development to date has
outstripped not only the U. S.
but also the rate at which private
Canadian capital can finance it."
A
10,ooo
Products
Telephone
Mr.
ada's
Building
ITiirirlflirifmtiil
cipal
were
shares
Ltd
Mines
F
1955 had a value of
(Canadian dollars)
outstanding.
reached 2,497,254 on June 30, contrasted
10,000
attached,
eries Ltd.
of $30
$36,834,789
equal to $37.41 (U. S. dollars) a
share on fie"lToOO,000 shar'elthen
investors opened 83,484 accumulation
during the
$250,000 Gunnar
and 2,000 shares
operations.
May 31,
on
securities
Gunnar
Bell
to
1954 when the Fund
Net assets
14,
Canada
Co.
Ltd., 6,000 shares
Consolidated Mining & Smelting
Co. of Canada Ltd, 11,000 shares
share
higher
value
6f
Linoleum
and 46.7% larger than
net asset
Co.
Ltd.,
4,995 Canadian Vickers Ltd., 5,000
shares
Dominion
Oil
Cloth
&
share reported
the preceding
of
of
Co.," Ltd., ' 5,000
include
shares
per
17.7%
was
close
commenced
reported by the Association six months earlier* This
June
the
year
share
per
of $131,116,000 and net
of
of
as
fiscal
capital gains distributions of $75,made to shareholders of the 126 open-end com¬
The 26 closed-end members paid their common stock¬
holders $12,089,000 from investment income and $22,272,000 from
security profits. Preferred stock dividends amounted to $1,702,000
and interest payments totaled $295,000.
• ' /
•
*
V *>*
1
Securities (excluding U. S. Government securities) : bought'
by the open-end companies for investment portfolios during the
1956 second quarter totaled $630,180,000, while total sales of port¬
folio holdings amounted to $354,693,000. This compares with pur¬
chases of $5^0,092,000, and sales of $359,151,000 in the first quarter.
For the first half of this year, purchases for portfolio totaled $1,170,272,000 and sales, $713,844,000.
Cash, U. S. Government securities and short-term corporate
obligations held by the 126 mutual funds totaled $417,827,000, or
4.9 % of total net assets on June 30.
This compares with $508,565,000, or 5.9% on March 31, 1956 and $437,966,000, or 5.6%
As
asset value
net
than the $37.41 per
392,000.
at
Tel.
shares outstanding.
quarter
plans for
the regular purchase of mutual fund shares during the first half
of this year. Of these, 40,993 plans were started in the first three
months, and 42,491 in the second quarter. In each of the six months
covered, more than 10,000 plans were opened. The total number
of accumulation plans in effect at the end of June was estimated
prospectus
year
of
$54,458,419, equal in U. S. dollars
to $44.02 a share on the 1,250,000
period of 1955.
602,000
panies.
on
Canadian
in
were
Corp.
Mines Ltd. 5%, Oct. 1, 1960, with
Hardwick
by
Total net asset value
amounted
During the first six months of 1956, investment income divi¬
ATOMIC
Dept. C
publication
Stires, President.
Oil
of
warrants
reg-
was
fiscal
the
per
Scudder
of
Ltd.
Canada
during
Sales
.
M
increase
value
Mining
Foundation
quarter
May 31, 1958, according to
Fund's annual report issued
the
slightly from the first
down
postwar
.....
..
asset
for
Redemptions of holdings by investors in the 126 open-end
member companies came to $118,207,000 in the second quarter.
Redemptions amounted to $116,972,000 in the first quarter. Total
redemptions of $235,179,000 for the first six months of 1956 were
6% lower than the $249,971,000 of redemptions for the comparable
dends
through :;!!■'■ ,■! A
1033 THIRTIETH STREET, N. W„
mutual fund shares during the second
new
year
with 2,272,549
ATOMIC SCIENCE
Atomic
of
totaled $319,718,000,
quarter total of $349,907,000.
the
of
dynamic
ended
represents a total gain of 224,705 accounts.
invest in
get the facts and free
,;
Association reported.
end member companies
,
L.
v.
istered
The number of shareholder accounts in both open- and closed-
'!
Established 1930
120 Broadway, New York 5, New York
,
of
Total net assets of
the 26 closed-end company members on the same date were $1,~
284,862,000, compared with $1,199,085,000 at the end of 1955.
Investor purchases of new mutual fund shares amounted to
$669,625,000 during the first half of 1956, about 11% above the
$602,075,000 of new investment in the first six months of 1955.
at
\
Corporation
Fund
(mutual fund) companies' net assets in¬
during the first half, to a total of $8,611,-
open-end
973,000 on June 30. the
Mutual fund
National Income Series
National Securities &
126
The
creased by $774,449,000
Purchases
ANGELES, Calif.—Robert
LOS
'
net
.
Ltd. and 3,575 Great Lakes Paper
Co. Ltd.
;!,r/!#!':
growth.
substantial
share
1955 year-end total of
1956, a gain of $860,226,000 over the
$9,036,609,000, the Association announced.
30,
....
.
A
of the National Asso¬
Companies stood at $9,896,835,000 on June
Investment
of
ciation
cites
economic
Opened in First Half
shares
Canada's
behind
force
Net assets of the 152 member companies
vestment Company
Stires
President
Companies, Assets at $9.9 Billion;
83,484 Accumulation Plans
for
tributor
American'
By ROBERT R. RICH
Investment
shares
o
Canada, Ltd., 3,000 shares British
Gain of 17.7%
been appointed
has
Representative
s
Reports Net Asset
Mutual Funds
LOS ANGELES,
sale
Ltd./Other additions
pany,
10,000
North American Sees.
Hood
shares International Power Com¬
Scudtler Fund
Representative for
Hood
an
New
additions
final
cal
year
~
of
quarter of
included 1,000
Ltd.,
; &
Newfoundland
7,000
shares
■
,
mutual fund's in„
.
.
j
~
*
"
shares
shares
ish
jhe
vestment advisor. Mr. Drasdo is
securities in a graduate of Stanford University
the 1956 fis- and the Harvard Business School,
$13,469,275.
the
Research Com-*
research
investment
the
•.
Corporation,
Abitibi
and a member
He is also treasurer
^ the Board of Governors
Power
Paper Company, Ltd., and 1,250
.
.
.
.
.
c
of the
..
Los Angeles . Society , of . Security
Analysts.^*
Volume 184
'
.
Number 5554
'
1
■
•
The Commercial and Financial Chronicle
....
'
'•
.
The Electronic
size
computers
will
in its infancy, not
only has good prospects for ex¬
pansion during the next three or
that for the "giant
four years, but is on the threshold
of great growth over a
lengthy
to
as yet
ing
of
managers
companies
with
600
(417)
Personal
brains," accord¬
There
agreement that
in
companies
prospects
are
Theodore
from
is
500
the
rities
of
of
as
Commissioner
as
the
State
August
of
1st to
brains," and smaller units
investment
of more
and
accounts
receivable
economies
by
o
f
Inc.
in
companies
neapolis. Min¬
nesota
of
The
Fund
investment
of
Tri-
investment
$300,405,688
company,
end
of
marks
were
Governor
companies
chemical
and
June
30, it was com pan ies were third an d fourth
reported by Francis F. Randolph, with 5.29% and
5%, respectively.
on
Chairman of the Board and Pres¬
ident.
The
A
figure
was up slightly
31, and from $278,027,599 at the start of the year.
New
amounting to $3,received during the
second quarter for common stock
issued upon exercise of warrants.
This compared with $6,403,689 re¬
rock
were
ceived
in
flecting
first
the
quarter,
re¬
was
share at June 30, as
with $43.35 on March
31 and $42.54 at the beginning of
2956.
Mr. Randolph pointed out
that per share asset value has
been affected this year by the
issuance of a large number of new
to
of warrants
the
extra
of
per
investment
of
common
totaled
income
$4,280,253 for the first six months,
the
about
same
half of 1955,
the
nental
stated,
received
with
in
Tri-Conti-
June
value
a
a
of
by
11,000
in
American
Vis¬
inated;
Pacific
Co.
Reductions
holdings
of
elim¬
were
made in
were
Aluminum
of
Co.
America, E. I. du Pont de Nemours
&
Co., Eastern Air Lines, Inc.,
Business
Ma¬
Corp., International Paper
Co., Kaiser Aluminum. & Chem¬
ical
Corp.,
Minneapolis-Honey-:
well Regulator Co., Scott Paper
Co., Seaboard Oil Co.
divi¬
$565,020
for the first half of 1956 exceeded
that of the like period
in 1955 by
Higher income on port¬
$564,139.
istrators
of
cent
Dr.
Phillip
Fund,
of
CanVMet
of
Merritt,
Inc.,
miners
and
ad¬
an
has
been
holds
sell
Canadian
official
of
Company,
years
lieu of the
stock
common
issued
upon
exer¬
Dr.
J.
Merritt
assistant
was
to
for
many
director
for
increase, Mr. Randolph said.
Common
about 76%
stock
of
net
sets at June 30
78%
holdings
investment
as¬
compared with
at March 31. The moderate
as
W.
Erwin
with
has
become
affiliated
Fairman
& / Co.,
210 West
Street, members of the
Los Angeles Stock Exchange.
*
Seventh
Now NCE Shares
York
reflected
decline
fluctuations
in
securities prices in general as well
as
continued investment in senior
securities
from
of
new
issuance
of
funds
received
common
stock
ures
than 50%
name
City,
of
Family Fund
has
been
changed
to
Shares Distributor.
show
of
dollar
for
this
the
year
volume
first
six
against
as
$9,284,749 for the first half of 1955,
Mr. Axe reported.
-
"The
funds
Some
during
reduction
aluminum,
electrical
railroad,
the
was
quarter.
made
aviation,
in
chemical,
and
electronics,
paper,
retail
trade and
rubber
industries, and the
rayon
industry
holding was eliminated. Invest¬
traded
on
It
is
now
changed
like
ment
no
the
in
W.
HILLS, Calif.—Rich¬
Denner has
become
asso¬
ciated with Shearson, Hammill &
Co., 9608 Santa Monica Boulevard.
Mr.
Denner
formerly
was
with
Harris, Upham & Co. and H. Hentz
& Co.
Securities, Inc.
Telephone
issue
of
the bid side.
Three With Intermountain
(Special to The Financial Chronicle)
j-.
Meantime,- the
-
going
DENVER, Colo. — William F.
Garrow, Ole A. Jacobson and Lee
rate .for
Treasury
money stiffened a trifle
week with new bills bring¬
this
A.
Stark
with
ing an average rate of 2.303%
against 2.237% the week previous.
Two Issues in
Underwriters
dull
week
in
Sight
face
the
s
period
with only two projects,
Wi Paine
both fall¬
will permit it to pay off existing
bank loans and finance contem¬
plated
is
now
following
Wisconsin Pipe
ceive
bids
year,
first
bonds,
390
Mass.—Edward
Barrington
Main Street.
with
Gibbs & Co. Add
(Special to The Financial Chronicle)
.
y WORCESTER,
Mass.—Anthony
Mastrovito is now connected
F.
with Gibbs &
Co., 507 Main Street.
construction.
new
The
y
(Special to The Financial Chronicle)
WORCESTER,
ahead
ing into the "Street-size" category, 'Investments,
coming up for bids.
On
affiliated
Securities,
With Barrington In v.
4 4
Power
become
Inc., 309 Columbine Street,
relatively
a
have
Intermountain
for
day
Line
Michigan
Co. will
million
$25
mortgage
the
pipeline
being
purpose
re¬
of 20-
to
construction,
*poABS oq p[noo iCubui sb doiani
•"ipnap sso[paau b si tpuopioa
*ubd
pilip X.i9a3
si
4sn
pay
pjopop jno 4pbj oiSbii
f
While
be
the
in
dull
fortnight ahead will
extreme, the final
the
half of August shapes up as a fair¬
ly
busy
to
market
period which
will
bring
large is¬
that is if nothing happens to
change current plans.- —at
least four
Largest of these is Pacific Tel¬
ephone & Telegraph Co.'s $78 mil¬
lion
of
32-year
debentures
along
with 1,562,267 shares of additional
Consumers
seeking
issue,
Power
Co.
will
be
$40 million through an
30-year first mortgage
of
bonds; Consolidated Natural Gas
plans to market $30 million of 25year
debentures, and Tampa Elec¬
tric Co. has $10 million of 30-year
first
mortga&^bonds slated for
^
market.
LET'S LOOK AT THE BRIGHTER SIDE
Many, thousands of Ameri¬
cans
Herman Hoffman Opens
REGO
PARK, N. Y.—Herman
Hoffman is engaging in a securi¬
ties business from
new
shares
are
are
other
an
open-end
three Axe
companies.
invest¬
9740
year,
3%%, first mortgage bonds
were
a
Rockwell Securities Corporation
is
engaging
ness
from
in
a
offices
securities
busi¬
at
70 .Wall St.,
Officers are Gar¬
New York City.
land L. Culpepper,
bit
subscription
Form Rockwell Sees.
re¬
fund
at
Illinois Power & Light Co.'s of¬
fering of $20 million of new 30-
Jr., President;
Vincent P. Barry, Vice-President.
were
the
books
slow
were
are
cured of
side
as
coming
the situation
perturbed by the slug¬
of potential buyers in
into the market.
They
confident
of
a
cancer
people
are
More and
doctors in time...To learn
how
to
head off
cancer,
the American Cancer
or
of
call
Society
write to "Cancer" in
your
care
local Post Office.
American Cancer
a
more
going to their
speedy pick¬
up:
As
every year.
opened.
not
gishness
were
on
those close to
But
sold.
the process of being
into
offices
Sixty-second Drive.
the American Stock
Exchange and while they
deemable
BEVERLY
ard
are
upon
exercise of warrants.
Mr. Axe Science & Electronics Cor¬
Randolph reported there were no poration is not included in the
major shifts in common stock sales report. At present, its shares
holdings
Co., Ferguson Building. Mr. Pool
was
previously with Intermountain
Won't Be Rushed
Axe-Houghton
Fund A, Axe-Houghton Fund B
and
Axe-Houghton Stock Fund.
are
Shearson, Hammill
(Special to The Financial Chronicle)
same
total
a
$13,981,803
has joined the staff of L. A.
Huey
of
common.
With
ahead of
period last
according to Emerson W.
president. Preliminary fig¬
months
Y.
engag¬
sues,
N. C. E.
of
is
(Special to The Financial Chronicle)
&
Telegraph's
3%s have been
shading the original offering price
on
PARK, N.
Clark
Pickup Looms Ahead
ANGELES, Calif.—Norman
Up 50% Over Last Year
Axe,
ican
N.
DENVER, Colo.—Fred W. Pool
recent corporate offerings, Amer¬
(Special to The Financial Chronicle)
LOS
Investors, 10 East 49th Street, New
year,
were
behavior
off outstanding bank loans and fi¬
Axe Fundi Sales
the
the
are
With L. A. Huey Co.
of strength.
of
measure
Officers
ing in a securities business from
offices at 111-41—146th Street.
toward
the
heavy
side.
Treasurys have been sagging and
a
OZONE
—Clairmonte
in
trifle
nance
The firm
more
there¬
cash
Quite to the contrary, the sec¬
ondary list has been leaning a
as
business.
C. N. Clark Opens
in
great show
any
of
Kennedy, President; Paul
Jarrett, Vice-President; Robert
Price, Secretary-Treasurer.
SOUTH
•
12V2 month notes
new
Bureau
—-
Joins Fairman & Co.
;'v;V
Reports Gains
ran
A.
exchange, the market
generally has not been putting on
An
Longyear
Energy Commission.
>
1956
offered
or
take
first mortgage bonds which
materials of the U. S. Atomic
raw
Science Fund
cise of warrants accounted for this,, the total for
issues,
to
electing
5136
operar
open
government.
E.
B.
$900 mil¬
some
at
John W.
to
year,
concentrates
the
refinancing
PHOENIX, Ariz.
securities
re¬
uranium
$75,000,000 contract
a
market
offices
Medical Economics has been
formed with offices at 2025 North
Central Avenue to engage in a
mark
Can-Met,
largest
millers.
uranium
the
C.
securities
a
Form Bu. of Medical Ecs.
>i'
season
Tuesday,
Jersey
Central
& Light Co. is slated to
bids for $10 million of 30-
Ltd.,
which operates in the Blind River
area,
Treasury
.
Explorations,
Canada's
for
abouts,
name^to the board of directors
one
time
With holders of
of
viser and member of the board of
directors of Atomic Development
Mutual
should
lion of maturing
yy vyysyy;
*
L.
next
seems, since
vacation
Frank
—
was
tion.
1944.
,
*
y
of the
from
.
investment
..
**
of
weeks
,
fully digest the effects of the
latest
mutual
covered
height
little
a
and
companies.
Sales
of
three
Axe-Houghton
funds received for mutual funds for the first half of
new
in
into
Thirty-second Place. Mr.
formerly with Waddell
& Reed, Inc. and Selected Securi¬
ties, Inc.
•'
Moreover, it probably will require
Thye
folio investments and income pro¬
duced by
being
time
North
Beck
it normally has in years passed.
as
as, Chairman, of, its
Investment
Companies Commit¬
tee, Ofstedahl achieved national
prominence in the fields of "Blue
Sky"
securities
legislation
and
income
investment
to
well, It
as
period
the
the National
Association of Securities Admin¬
the
International
1939
two
for consideration
up
And just
the
Counsel
Department
from
first
Ariz.
conducting
is
business
week, with the ensuing period just
about bare of prospects.
i'yyy; v
the present time.
As President of
Co.,
subsidiary,
Net assets of Science & Nuclear
Union
Securities;
Corporation, Fund on June 30, 1956 were $1,which ordinarily would not have
326,480—up $839,375 or 172% from
been paid until the closing months a
year ago.
Meanwhile, net asset
of the year. With this special fac¬
value per share rose from $10.52
tor taken into account, Tri-Con- to
$11.65—an increase of 10.7%.
net
Credit
the
quence
then appointed
him State Commissioner of Secu¬
rities; Which post he has held until
to
from its wholly-owned
tinental's
Minnesota
Rural
Florida Power & Light Co., Gen¬
eral Electric Co., B. F. Goodrich
chines
Senior
was
first
the
Last year, however,
chairman
dend
for
as
Southern
pay¬
dividend
share
stock in February.
Net
by
lesser extent,
a
of
cents
Sham¬
were
Corp.,
Corp., Sears, Roebuck. and
Co., Signal Oil and Gas Co., and
per
shares upon exercise
50
Gas
cose
compared
ment
&
Investments
Common stock asset value
and,
increased
Oil
and
Co..
shares: Columbus and Southern
Ohio Electric Co., 3,600 shares.
exercise, of warrants.
$41.83
Electric
the
shares; American Home Products
Corp., 3,600 shares; Johns-Manville Corp., 6,700 shares; Missis¬
regulation
sippi
River
Fuel
Corp.,
4,000
sharply reduced rate of
a
added to the
20,000 shares of San
holdings
funds
937,039
holding
new
portfolio was
Diego Gas &
March
from
Ofstedahl
of
Beck
mar¬
August. Looking over the forward
calendar it develops that there are
only two new issues of conse¬
Kiwanis Club.
tronics
Corporation, the na¬
largest diversified closed-
end
the
at
Public utility
holdings remained in second place
at 13.73% and electrical and elec¬
Continental
tion's
assets
the second quarter.
issue
new
normally
are
investment
assets
corporate
ket appears headed into that deadcenter fortnight which
Reach Total Of
Net
others
their
indications
PHOENIX,
Tri-Cou Assets
$300 Million
and
take
such
Frank C. Reck Opens
.
Min¬
is the largest
equipment, and some
locally- owned
studying their use
the development, types, and ap¬ in production scheduling and con¬
mutual invest¬
ment fund in
plications of electronic data proc¬ trol; sales analysis; budgeting, and
the
essing equipment,-the study says general accounting.
Upper
-J:—,'4-'
Midwest.
digital, rather than analog, com¬
"Perspective" estimates t ha t
•;
Albert M.
puters will see the greatest sales there are * more than 1,000 com-:
T. N. Ofstedahl
growth.
Partly because
of the puters now in use,
Sheldon,
Jr.,
Some of the
President of
rapid rate of obsolescense in the older ones will probably be dis¬
the two companies, stated in an¬
mantled
field, it is likely that about 85%
during the next few
of all computers will be rented, years, but large numbers are on nouncing Ofstedahl's appointment,
and only about 15% bought, ac¬ order for delivery during the next "Mr.
Ofstedahl's; long j.. and able
service as securities
cording to the report.
Monthly two or three years.
Prices for
administrator,
trustee and attorney should
rentals are estimated at about 3% various types range from about
prove
uniquely valuable to our share¬
of direct purchase prices.
$25,000 to $5,000,000 or more, de¬
The industry feels that revenue pending on the amount of auxil¬ holders and clients."
•Ofstedahl graduated from Zumfrom
sale
or
rental
of
medium iary equipment used.
brota High School, attended St.
Red Wing from 1915 to 1939. He
ments in building, drug and pub¬ was
County Attorney of Goodhue
lic utility fields were increased.
County from 1922 to 1934. While
Common stocks of oil compan¬ residing in Red Wing he was also
ies continued to represent Tri- Secretary of the United Lutheran
Continental's
and
largest
President
of
industry Church
the
holding and stood at 15.89% of net Olaf College and practiced law at
of
to
actual orders.
electronic
review
funds
converting
Minn eapolis
s s o c i a
tes,
are
use
pension
inclined
Vice
A
where companies can effect
areas
operating
Minnesota
become
Fund, Inc. and
by many more companies.
Payroll processing, inventory con¬
trol
buy¬
ing interest prior to the offering.
It appeared to be
just a case of
re¬
Minnesota
be
can
names
Secu¬
President
"giant
for
has
of
41
turned down by any of the
major
which had indicated
Progress
Ofstedahl
country
the
signed
N.
used
assets
than $400,000,000.
In a comprehensive
>-'
.
,,
approximate
to ' "Perspective."
general
period of time," according to the
latest issue of "Perspective," pub¬
lished by the Investment Manage¬
ment Department of Calvin Bul¬
lock,
j''
Computer Industry
"The electronic data processing
industry,
,\
-ik
matter of fact it
was
indi¬
cated that the group had not been
Society
*
®
Chronicle
The Commercial and Financial
42
;...
Thursday, July 26, 1956
(418)
latest week
week
Business Activity
Ago
IRON
Equivalent to—
•
"
r
INSTITUTE:
'
condensate output—dally average (bbls. or
AMERICAN PETROLEUM
oil
and
gallons each)
Crude runs to stills—daily average
output (bbls.)
Kerosene output (bbls.)—-—
Distillate fuel oil output (bbls.)—
;
V,
27,196,000
Jo
2,265,000
,!y
—a
;
v 1,955,000
12,044,000
178,366,000
181,487,000
23,793,000
31,381,000
26,760,000
27,415,000
-July 13
104,521,000
98,289,000
84,996,000
.July 13
40,926,000
39.779,000
37,319,000
Revenue
CONSTRUCTION
ENGINEERING
CIVIL
-
478,297
801,431
—July
July
—-July
——
July
19
19
19
19
construction
Public
.4+—————-—
and municipal
State
New
(tons)
anthracite
Pennsylvania
$443,517,000
437,272,000
305,516,000
220,105,000
138,001,000
143,067,000
113,166,000
89,899,000
77,038,000
24,835,000
♦1,290,000
52,000
10,280,000
538,000
Office
SYSTEM—1947-49 AVERAGE
>
752
J
.__
289
; -
_____
restaurants,
„—;1
v::
.
-369
"
56
150
'
-•.v.-'
62
39
: r
i* .f.:
30*
24
-i
f
22p
.
31
43
r
f&'-r-
184
21
51
•
«l0
■.
42
.
24
construction
Farm
97
-
;
25
recreational—
Social and
.
186
'
45
L
institutional
fiK*!
164
:
;<
i
259
L.i
206
V-7'
)OQ
265
-
61
Hospital and
633
,
247
105
r
32
6°8 '
.
i184
garages:.—
building—
133
"36
257
_
1,380
:•
128
39'
(nonfarm)
nonresidential
,1,105
130
>
_!
—
1,545-
1,269
■
1,185
alterations
Religious
9,677,000
'489,000
131
901
99
>
-
2,766 V-&
'.
2.543
1,354
buildings and warehouses.:---—
Stores,
Other
$3 707
2,715
^
Miscellaneous
July 14
100
—
441,000
RESERVE
SALES INDEX—FEDERAL
DEPARTMENT STORE
7,150,000
$3,993
:—
-
>•
42,715,000
.
$654,576,000
~
._
building
Commercial
132,614,000
121,059,000
$684,036,000 *$643,029,000
—
Industrial
'
v
$360,708,000
234,279,000
157,068,000
——July 14
July 14
—
'
84,964,000
units
dwelling
Additions and
228,094,000
-
-
39,790,000
104,317,030
DEPL OF
(nonfarm )L—
building
Educational
COAL OUTPUT (U. 8. BUREAU OF MINES):
Bituminous coal and lignite (tons)
12.467,000
112,377,000
9,240,000
millions):
(in
of June
construction
Nonhousekeeping
36,009,000
construction
Private
U
'
■
618,333
$657,377,000
S.
construction
new
Private
794,138
651,826
$391,347,000
188,662,000
21,372,000
125,297,000
—
LABOR—Month
,■
Total
45,482,000
527,925
1—
'
Total
Nonresidential
in
construction
8.
U.
>•?;
ENGINEERING
—
*
between
J-:
UtLDING CONSTRUCTION—U.
108,932,000
619,988
of cars)—July 14
NEWS-RECORD:
Total
'
"
488,600
July 14-
freight loaded (number of cars).
freight received from connections (no.
Revenue
$216,316,000
11,495,000
.
8,924,000
-
and shipped
on
Residential
RAILROADS:
ASSOCIATION OF AMERICAN
21,780,000
i
—
158,822,000
.July 13
(bbls.) at..,
"<
—
exchange
goods stored
foreign countries
„
8,156,000
•178,549,000
_
•251,775.000
12,334,000
11,167,000
Residual fuel oil (bbls.) at
Kerosene
Based
2,034,000
Distillate fuel oil (bbls.) at
.
25,726,000
...
•
Dollar
£ ■> 7,563,000
>
178,366,000
.
7,582,000
7,677,000
7,893,000
«
27,363,000
12/434,000
12,606,000
July 13
——.—<—July 13
Stocks at refineries, bulk terminals, in transit, in pipe lines—
■
Finished and unfinished gasoline (bbls.) at
—
July 13
.——
Residual fuel oil output (bbls,)__;—
7,974,000
27,736,000
2,028,000
$244,830,000
251.236,000
;__
;
Domestic shipments
Domestic warehouse credits
6,626,400
7,065,650
7,953,000
7,085,850
>"
Ago
r
BANK
$264,465,000
Exports
*
Year
Month r
YORK—As of June 30:
NEW
OF
2,190,000
2,114,000
'377,000
Previous
OUT¬
RESERVE
FEDERAL
—
of that date;
are as
Month
ACCEPTANCES
DOLLAR
ANKERS'
90.7
.
$8,028,000
July 13
(bbls.)
Gasoline
' .."
•
7,083,900
—Ju(y ™
42
j
§385,000
July 29
of quotations,
cases
either for the
are
Latest
STANDING
,
in
or,
i
Ago
\
-
85.9
•15.3
§15.6
——July
(net tons)
Steel ingots and castings
Crude
Week
Year
Month
Week
AND STEEL INSTITUTE:
Indicated steel operations (percent of capacity)
Previous
that date,
on
production and other figures for the
cover
Dates shown in first column
month available.
or
month ended
or
Latest
AMERICAN
statistical tabulations
The following
Indications of Current
160 !
139
•'
448
utility
Public
Railroad
_■
——
427
-
4" 2
>-
36 v.v :34
33
—
•
ELECTRIC INSTITUTE:
output (in 000 kwh.)
EDISON
INDUSTRIAL)
(COMMERCIAL AND
INC.—
FAILURES
BRADSTREET,
DUN
-
172
245
251
223
July 19
(per gross ton)
5.176c
5.179c
5.179c
5.179c
'$60.61
$60.61
$60.29
$59.09
$46.50
$44.83
$44.83
$40.33
-July 17
<<
.
Hospital
tin
Straits
Lead
Lead
Zinc
16.000c
16.000c
15.800c
15.800c
July 18
13.500c
13.500c
Tuly 24
uly 24
uly 24
93.56
94.00
94.94
104.31
104.66
108.70
107.62
108.16
108.34
112.19
uly 24
106.04
106.21
103.64
——~——
A
uly 24
Group
'
f
uly 24
___
-
I
8.
15.000c
15.800c
14.800c
13.500C
r
104.14
99.36
s99.84
102.80
103.13
;
Retail
3.01
2.97
2.88
3.51
3.49
3.47
3.27
3.26
3.39
3.38
3.36
3.14
3.53
3.50
3.49
3.79
3.76
3.58
3.56
3.33
3.49
3.47
3.45
3.21
-
3.43
3.41
3.39
412.6
412.5
405.8
sales
Number
220,607
202,972
273,007
178,617
235,162
,
'.i-
dealers
by
77
99,
BOARD
106.91
108.05
Wheat,
971,034
895,964
$50,851,492
$47,241,503
.June 30
—.June 30
984,987
780,237
2,837
869,987
6,078
'
■
774,159
979,484
June 30
$43,198,565
—June 30
sales-
$40,563,965
$40,421,355
$54*404,561
209,510
175,680
261,690
253,030
Short sales
;
Hay,
—June 30
253,030
June 30
349,540
sales
EXCHANGE
209,510
327,240
Vv
175~680
483,540
26L630
round-lot
Short
Other
ON THE
N.
Y.
OF
MEMBERS
j
(SHARES):
.470.800
,
June 30
9,194,310
8,201,790
8,703,810
TRANSACTIONS
FOR
ACCOUNT
OF
9,544,170
8,508,870
9,131,520
12,320,430
of specialists
in stocks in which
Total
Other
17806
75,549
1,111,680
1,227,600
28.432
29,719
15.316
i
16,506
"
•*
4,425
;
4,063
:
1,456
—_
1,543
J
.281
'.366 '•
„.
19,710
21,9-59
i.
1
20,953
:
-
18.G68
-
1,863
i.
1,898
34
:
v
•
—,
■_!
<__
—
..
186,110
265,900
248,100
1,176,950
1,276,710
Sweetpotatoes (bushels)
Tobacco
(pounds)
1,442,850
1,524,810
Sugarcane for
228,850
233,870
178,150
272,780
12,000
13,500
17,700
off
the
221,550
221,450
192,950
254,610
•
233,550
234,950
210,650
-June 30
,
435,800
476.604
483,272
82,770
80,650
71,530
40,090
477,374
-June 30
483,273
563,923
548,904
517,487
557,577
-June 30
Hi
1,915,064
1,781,350
1,882,354
,
771,329
Short
sales
june 30
278,760
268,440
323,690
2,243,682
355,970
Other
sales
June 30
1,749,633
1,538,184
1,887,387
4
June 30
2,028,393
1,806,624
2,211,077
SERIES
—
U.
8.
DEPT.
Processed foods
Meats
All commodities other than farm and foods
OF
FEDERAL
THE
adjusted
Unadjusted
NEW
.
-^1
1,497
284-
740
24
RESERVE
i__
=
141
142
139
141
•141
139
$2,819,641
33,934
$2,847 308
$2,757,462
329,774
3f37,406
—
—.—:
—ji
STOCK
YORK
_w__i—
,
firms
extended
Credit
Cash
OF
June
-
carrying
.
,
accounts—
margin
customer's net debt balances
Total
2,575,849
of
EXCHANGE—As
omitted):
(000's
30
Member
on
hand
to
r
customers:
in banks
and
in
37,715
„
U. S
i
'
Total
of customers'
free
credit
_July 17
114.0
114.1
114.0
90.3
90.4
90.7
87.7
July 17
102.4
•102.6
101.9
102.0
July 17
-—July 17
81.2
81.7
79.4
121.4
of listed bonds
836,137
:
46,250
•
340,161
'869.672'
917,481
218,579,189
2.
211,896,052
194,405.657
104,288,895
r
104,115,390
104,282.202
65,834
70,122
2,390,691
2,371,587
2,199,021
$239,762,900
$5,720,050
$22,507,500
84.5
121.4
of
Market value
110.0
..July 17
balances
listed shares
Market value
Commodity Group—
products....
ERNORS
Seasonally
100):
commodities—
—
"
.
„
———
—
:
SYSTEM—1947-49=100—Month of June:
.
2,219,879
WHOLESALE PRICES, NEW
:;V'
25
!
.
252
789
(tons)—.!,
seed
1,380'
*
^
:
688,559
.
Total round-lot transactions for account of members—
Total sales
190
879
INDUSTRIAL PRODUCTION—BOARD OF GOV-
;
purchases
-
1,414
287
_i.—
and
sugar
(pounds)
Hops
279,710
465,644
floor.June 30
Total sales
111
25,100
—June 30
initiated
purchases
1Q4
1,402
„—:—
June 30
sales
26
178
875
(bushels)
Sugar beets (tons)
sales
30
-
198
;*
;
(bushels)
Total
26
164
,
Late summer (bushels t—
1,487,630
the floor—
:
=
12,242
12,093
„
—June 30
sales
121.3
116.3
Member
borrowings on U. S. Govt, issues—
Member
borrowings
figure. ^Includes 996,000 barrels of foreign crude runs.
Digitized for Of
FRASER 1956.
1,
against Jan. 1, 1955 basis of 125,828,319 tons.
Monthly Investment Plan.
§Based
tNumber
on
of
new
annual
orders
not
capacity of
reported
128,363,000
since
tons
as
introduction
of
♦
88,898
'
TREASURY
MARKET
RECT
as
—
—:—
~
_;
June 30
on
purchases
•Revised
:
z
(bushels)
\ 183,410
839,360
1,022,770
sales
Jan.
:
1,044,810
.June 30
All
20,874
75 595
bushels)-.
sirup,
(pounds)
1,826
19,897
__
*
LABOR— (1947-49
4,982
1,602
16,962
a.
1,230,920
sales
Farm
2,092
5,685
.
June 30
I
Other
-
4 14,553
1,724
i
—
spring
Fall
Short
Total
1,348
12,247
39,138
12,867
4
——
June 30
transactions
Total
13,5.95
35,427
.
dry
Late
,
1,220,570
June 30
+
.
Other transactions initiated
Other
—
(bushels)—
(bushels)
Early summer (bushels)
"
registered—
June 30
Short sales
Short
33,660
12,610
(bushels
Early ' spring
"
MEM¬
Total sales
Total
47.255
"
2,484 "
(bushels)
(including
Winter
11,849,630
June 30
sales
sales
79 900
•
Potatoes—
purchases
Other
50.466
35,372
s.
15,094
(tons)
all
Peanuts
427,710
307,080
349,860
June 30
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Total
;
T
l_i
—
edible (bags)
Peas, dry field (bags
Soybeans (bushels)
r.—
Soybeans for beans (bushels)
sales—
sales
Transactions
$1,390,300
(bales)
Beans,
402,490
STOCK
Total sales
ROUND-LOT
.
ROUND-LOT STOCK TRANSACllONa
AND
ACCOUNT
FOR
Total
t
SALES
'
-
_,
—
wild (tons)
alfalfa (tons)
Hay, clover and timothy (tons
Hay, lespedeza (tons)
Round-lot purchases by dealers—
STOCK
$289,000
REPORTING
Hay,
Hay,
..June 30
Other
TOTAL ROUND-LOT
$1,623,300
OF
AGRICULTURE—
OF
(bags)
: Cotton
by dealers—
-m
12,605
BY
DEPT.
S.
(bushels)
spring
Sorghums
•
«
REPORTED
77,596 !
(bushels)
(bushels)
Rice
5,503
809,297
5,513
June 30
shares
13,142
THE
IN
(in thousands):,
Barley (bushels)
Rye (bushels)
,—
Flaxseed (bushels)
$64,376,998
$55,850,219 -.•»
812,134
875,500
sales
of
DEPT.
S.
spring
Oats
1,138,539
1,093,393
;
sales
Number
$3G,667,000
<
BRADSTREET,
U.
—
(bushels).
all
Other
short
shares—Total
U.
Durum
other
sales
5,259,000
$59,901,000
i
CROP
—
Crop as of July 1
all (bushels)
All
Customers'
of
3,619,000
11,952
(NEW)
—
June—
of
9,564,000
4,702,000
~
Customers'
Number
STATES—.DUN
3,254,000
8,877,000
$43,013,000
-
PRODUCTION
Winter
June 30
Dollar value
$13,888,000
-
3,588,000
liabilities
service
5,713,000
13 242,000
8,598,000
COMMERCE—Month of June (000's omitted)
COMMISSION:
total sales
75
914<
12,812,000
J
CORPORATIONS
S.
CROP
purchases by dealers (customers' sales)-
Round-lot
$28,450,000
7,331,000-
—
*—
DIVIDENDS—PUBLICLY
CASH
642,619
497,608
108.93
June 30
Number of orders—Customers'
1
L—„
liabilities
INC.—Month
STOCK
Dollar value
Odd-lot
94
1,164
$10,684,000
.J.—J.
liabilities
liabilities
UNITED
purchases)—i
(customers'
114
225,674
512,197
July 20
Y.
79
446
132
93
INCORPORATIONS
BUSINESS
228,679
289,328
56
70
528,096
100
N.
*200
118
575
1,105
:
Corn,
shares
of
14
163
——
liabilities
Total
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-
Odd-lot
245
56
,
115
—
liabilities
Commercial
U.
July 14
ON
number
Construction
3.19
412.2
July 14
EXCHANGE
183
26
■
*
^
at end of period
SECURITIES
i6
99
;v:
551
*
—
Manufacturers'
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
—
58
3.53
3.61
Percentage of activity
EXCHANGE
42
63
3.24
3.82
"
July 14
SPECIALISTS
449
109
L
-___——t
number
numoer
Wholesale
2.93
.July 14
AND
development—
3.0o
*
DEALERS
67
470 HP
45
16
and
Total number
.r$ 109.60
..July 24
Orders received (tons)
Production (tons)
LOT
119
-
115
AND
OF
S.
U.
purchase
other collateral
TRANSACTIONS
GUARANTEED
A.—Month
Net sales
Net
on
of
IN
.
DI¬
SECURITIES
June:
—
*
:.',V
'
31
27
62
enterprises
;y*'
217
•
113
Commercial service number
3.24
3.30
,;v
NATIONAL PAPERBOARD ASSOCIATION:
=*=
:
73
109.24
105.00
..July 24
Group
AVERAGE
68
32
public
Construction
107.09
106.04
Group.
COMMODITY INDEX
1949
'
f
103.64
,
luly 24
.
Unfilled orders (tons)
Wholesale
108.70
104.31
98.88
104.66
.July 24
.July 24
Group
Industrials
MOODY'S
•
216
27
Manufacturing number
Retail
Baa
Utilities
other
All
110.52
106.56
105.69
.July 24
Public
24
333
„
337
12.500c
104.31
I,,:
,uly 24
—
Aa
Railroad
16
1,170 ;
122
water——
and
16.000c
DAILY AVERAGES:
Average corporate
-
33
institutional.
and
facilities
Conservation
..July 24
——
Bonds.
Government
353
,
220
Public service
105.34
uly 24
—
—
YIELD
BOND
19
19
—.
building
r.
97.875c
..July 24
MOODY'S
Sewer
36.900c
s
■
July 24
..July 24
Utilities Group
Group
Public
Industrials
U.
■
102.30
uly 24
—
■
Railroad
V;-
306
INC.—Month 6f June:
—
—
Average
Aa
.
;!>■
545
94.20
103.97
35.925c
DAILY AVERAGES:
Government Bonds
corporate
8.
94.750c
July 18
uly 18
atj.,
at
(East,St. Louis) at—
Louis)
MOODY'S BOND PRICES
U.
41.725c
95.750c
at
1,164
35.700c
44.900c
31.950c
94.750c
39.500c
July 18
(New York)
(St.
39.475c
.July 18
Tuly 18
York)
(New
1,278
—_
nonresidential building
Military
at
refinery
.i
72
10
Educational
Other
Export
311
11
Industrial
•
(E. & M. J. QUOTATIONS):
Electrolytic copper—
Domestic refinery at
80
325
—
—
'
Nonresidential
steel (per gross ton)
METAL PRICES
private—
construction
Public
85
telegraph
utility—
and
public
other
Residential building
-.July 17
-.July 17
Pig iron
Other
&
a
(per lb.)
steel
Finished
Telephone
10,620,000
11,478,000
10,878,000
All
COMPOSITE PRICES:
IRON AGE
Scrap
11,12b, 000
.——July 21
Electric
—
V;:1
;
'
Volume 184
Number 5554
v
The Commercial and Financial Chronicle
...
r
'
<
'
Eisenhower:
Robert
The
(419)
Inside
Story —
Donovan—Harper &
New
N.
Y.
York,
J.
Brothers,
(cloth)
dividend
$4.95,|
Pittsburgh,
At
York
Pcnna.
meetfhg
a
of the Board of Directors of
Ludlum
Steel
Corporation
held
Allegheny
Currency
Street, New
6, N. Y. (cloth) $35.
75
dividend
Allegheny Ludlum Steel Corporation
"V
Pick's Currency Yearbook—Franz
Pick — Pick's World
Report,
notices
West
today, July 12, 1956,
of
forty cents
„
dend
a
divi¬
($0.40)
share was declared on
Common Stock
of
the
payable
Sep¬
29, 1956, to Common
stockholders
of
record
at
the
close
of
business
on
1956.
per
the
Corporation,
Plant
Location
Yaseen
Factors
in
Industrial
Leona rd
American
—
Council,
Dynamic
—
7
and
'
Guide
J
Electronics:
(bibliography)
to
S.
v
A
Middle East
ment
•
(paper) $1.
to
in
Stock
the
1951-1955—(Supple-
World
Economic
vey,
;
Ill
27, N. Y. (paper) $1.50.
•
E. F.
The Board of Directors this day declared a
quarterly dividend of thirty cents (30<() per
on
the outstanding Common Stock of
this Company, payable. September 15, 1956, to
share
stockholders of record
Secretary.
on
August 31, 1956.
transfer books will remain open.
The
United States Pipe
VANDERSTUCKEN, JR.,
and
Foundry Company
JOHN W. BRENNAN, Secretary & Treasurer
LINES
Company
AND CARBON CORPORATION
Common
ucc
A regular quar.er.y dividend of thirtyr
\ six cents ($.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 10,1956, to the holders of record
at the close of business
August 10,1956.
(75^)
per
share
Stock
DIVIDEND
A cash dividend of
Seventy-five
on
capital
cents
the
outstanding
Corporation
payable Sept. 1,
stock of this
has been
declared,
1956
to
stockholders
of
record
at
"
the close of business
Aug. 3, 1956.
W. J. ROSE, Secretary
July 24, 1956.
BIRNY MASON, JR.
The Board of Directors has authorized the
payment of a dividend of thirty-seven and
one-half cents ($.37x/2) per share
payable
September 7,1956, to holders of Common
Stock of record August 17, 1956, who on
that date hold regularly issued Common
Stock ($1.00 par)
of this Company.
CHAS. F.
Secretary
1
":i
BRADLEY, Secretary
One Broadway, New York 4, N. Y.
Year-
Thomas
—
New
(cloth) Price
complete)
s
holders of record at the close of
business
August 24, 1956.
Common Stock Dividend
Bayuk Cigars Inc.
cS. (Publishers) Ltd.,
Broadway,
N. Y.
-
York
-
Official
Volume I
—
Skinner &
1955)—United Nations Report — Columbia
University
Press, 's- 2960
Broadway,
New
-
stock out¬
(Londoh Stock Exchange)
—l 1956
,
Sur-
10,020,000
on
Foundry Company
York, N. Y., July 20. 1956
"
„
Exchange
Book
the
Company's capital
standing and entitled to receive dividends,
payable September 15, 1956, to stock¬
!
*/
,
Developments
divi-
JR.
AMERICAN 15 AS
•
New York 27, N. Y.
a
,Secretary
•
AND ELECTRIC COMPANY
—
.
dend of 50 cents
per share
shares of the
declared
ITED STATES
land, Ohio (cloth);- : Management
Research
Service, 1342 Cherry Shopping Centers — Five articles
covering shopping centers from
Street, Kalamazoo, Mich, (pa; per) $1.
A
to
completion
and
; . - A planning
operation -Atpiinton Gamble —
Economic Developments in Africa
Gamble, Pownall and Gilroy,
1954-1955 (Supplement to World
architects—1407 East Las Olas
Economic Survey, 1955)—United
Boulevard, Ft. Lauderdale, Fla.
Nations Report—Columbia Uni;
versity Press, 2960 Broadway,
(paper) Copies on request. AA;;
,
McCASKEY,
New
The Board of Directors has
notices
United States Pipe and
TEXAS GULF SULPHUR COMPANY
Union Carbide
Frank D. Emerson and Franklin
C. Latcham—The Press of West¬
ern
Reserve University, Cleve¬
Company Experience
,
A.
dividend
'
V
Economic
7,
44th St.,
(cloth) $10.
Shareholder Democracy: A Broad¬
er
Outlook for Corporations—
;■>; N. Y. (cloth) $4.75.
;
Research
East
Productivity—Seymour Melman
Automation
C
September
Inc.,
New York 17, N. Y.
—John Wiley & Sons, Inc., 440
Fourth Avenue, New York
16,
i
tember
notices
York
6,
A
quarterly
twenty-five
(2 volumes
share
$33.
of
this
dividend
(25c)
cents
Pullman
of
per
the Common Stock
on
Corporation
de¬
was
clared payable September 14,
dividend
1956 to stockholders of record
notices
356th
August 30, 1956. Checks will
be mailed.
mmtussassBmua
8
II
ALUMINIUM LIMITED
',V.V
v-
..
american
mm
tiling
km
mm
share will be paid on Septem¬
ber 14, 1956, to stockholders of
record
Floor
mm
NOTICE
quarterly dividend of
seventy-five cents (154) per
July 20. 1956
Wall &
encaustic
mm
A regular
Philadelphia,: Pa.
Ceramic
V6V
Tile
;
and
Quarterly Cash Dividends
Treasurer
■ft£
tsess
DIVIDEND
Charles L. Nace
X
88 UK
Dividend
90th Consecutive Year of
Manufacturers of
KM
m«k
km
•;
GRIGGS EQUIPMENT, INC.
/
company, inc.
mm
On
July 18, 1956
President
dend of
Sixty Cents
currency was
:
per
the
no
Declared July 18, 1956
mm
par
valuq shares of this Company, payable
Quarterly—15*
mm
mm
September 5, 1956 to share¬
ness
August 3, 1956.
Montreal
?
July 18,1956
Secretory
««
££
mm
.
>
»»
church
Cents
31
««
mm
mm
($0.10)
of 1955, at 41 Wth cents
per
share, each will be
on September ) to shareholders of record
August 7.
paid
to
record
on
a
five
Stock of record
on
August 7.
W. D. FORSTER,
>,
>
Secretary
July20, 1956
a
on
payable July
holders
of
as
600 FIFTH AVENUE
July 16, 1956.
NEW YORK 20, N.Y.
COMMON
THE
SOUTHERN COMPANY
Dividend N
(incorporated)
The
The Board of Directors has de¬
clared
25
a
share
per
standing
shares
stock of the
the
on
of
L. H.
Alabama
on
Georgia Power Company
Gulf Power Company
August 6,1956.
today declared a
per share on
shillings
pay¬
September 4, 1956.
Mississippi Power Company
the holders of record
the close of busi¬
at
ness
on
September 7, 1956 of American
shares issued under the terms of the Dej>osit Agreement dated June 24, 1946. The
dividend will amount to approximately $2.79
9
the close
at
Directors
R
per
DIVIDEND
No. 103
39
The Directors authorized the distribution
of the said dividend on September 14, 1956
Po^r Company
to
of
),
Ordinary Shares of the Company
able
to
Company, payable
holders of record
of business
Serving the Southeast through:
common
September 6, 1956
on
the
out¬
■a
Board
dividend of twenty
THE SOUTHERN COMPANY SYSTEM
quarterly dividend of
cents
STOCK
O'okiep Copper Company
"K'v C Limited
share, subject, however, to any change
may occur in the rate of exchange
On July 18, 1956 a
regular
quarterly dividend of 75 cents
to stockholders of record at
the close of business on
Aug¬
ust
15, 1956.
Southern
Secretary
for South Africa funds prior to September
4,1956. Union of South Africa non-resident
Services, Inc.
shareholders
tax at
the rate of 7.05%
will
be deducted.
mrnnm*
^
By Order of the Board of Directors,
-Y
F. A. SCHECK, Secretary.
i
New
Edison
California
Company
DIVIDENDS
The Board of Directors has
authorized the payment
which
Jaeger,
Treasurer and
Southern
share was declared on the
Corporation's Common Stock,
payable September 15, 1956
per
SINCLAIR
A Great Name in Oil
of the
following quarterly dividends:
CUMULATIVE PREFERRED STOCK,
4.08% SERIES
Dividend No. 26
25 Vi cents per shore.
York, New York, July 25, 1956.
CUMULATIVE PREFERRED STOCK,
AMERICAN & FOREIGN
TWO
RECTOR
4.24% SERIES
POWER COMPANY INC.
STREET. NEW
YORK
6.
N. Y.
"
■
26 Vi cents per share.
-
•
.
.
COMMON STOCK
Dividend No. 3
\
/
■
:
rahway, n. J.
This dividend will
The Board of Directors of the
Company,
at
a
meeting held
this day, declared
dividend
of
20
a
quarterly
cents
f
share
for
1956
on
per
the Common Stock
tributed
Preferred and Common Stocks
of
the
Company
shares
for the
have
new
to
the
September
10,
shareholders of
record August 10, 1956.
Holders of the old stock
are
been
until
un¬
der the Plan of
of
Reorganization
the Company, vyhich became
effective
|^
Quarterly dividends
[MERCKjfof
1
February 29, 1952.
urged to communicate with the Company.
July », 1956.
Balcooyen,
Executive Vice President and Secretary
share
a
common
87V2 i
stock, and $1.00
stock,
share
a
a
share
on
$4.00 convertible second
stock," have
clared, payable
1956, to
ord
at
4.88% SERIES
Dividend No. 35
on
been
on
close
10,
Carl M.
July 24, 1956
the
pre¬
de¬
October
stockholders
the
of
of
Birmingham, Alabama
on
the $3.50 cumulative preferred
September
H. W.
20$
ttWw the
ferred
CUMULATIVE PREFERRED STOCK,
30Vi
exchanged
entitled
GAS
COMPANY
such
securities to which
are
NATURAL
be dis¬
holders of the old
to
those holders
payment
not
SOUTHERN
MERCK & CO. Inc.
mporjAnt
DIVIDEND
1,
rec¬
business
1956.
Anderson,
Secretary
A
regular quarterly divi¬
cents per share
dend of 45
has
been
Common
Natural
declared
Stock
of
on
the
Southern
Gas Company,
on
August
31, 1956.
H. E.
JACKSON,
'
Vice President and Treasurer
Dated: July 21, 1956.
share.
able
are
August 31, 1956,
holders
of
Checks
will
record
be
to
pay¬
stock¬
August 5.
mailed
from
Companys office in Los
Angeles, August 31.
the
pay¬
able September 13, 1956 to
stockholders of record at the
close of business
cents par
The above dividends
Common Stock Dividend No. 70
(5)
stock dividend which will be distrib¬
September 20 to holders of Common
Ten
share
per
share, and the quarterly
per
and
equipment, declared
Common Stock,
on the 4 Vi
Cumulative Preferred Stock, Series A,
V^th cents
per cent
18, 1956, Directors
quarterly dividend of
||
quarterly dividend (No. 5)
per cent
at 28
Griggs Equipment, Inc.,
manufacturers of school
»«
America's OLDEST Name in Tile
mm
mm
of
ss
Payable September 10, 1956
Record Date August 16, 1956
mm
mm
DULLEA
share
Special—5% Stock Dividend
mm
mm
mm
mm
-
,
JAMES A.
On June
mm
mm
Payable August 30, 1956 r
Record Date August 16, 1956
mm
holders of record at the close of busi¬
per
7. The
uted
mm
mm
mm
on July 20, declared a
regular
quarterly dividend (No! 67) of thirty (30) cents
per share on the Common Stock, payable on
September 20 to shareholders of record August
The directors have also declared
DIVIDEND NOTICE
mm
mm
share in U.S.
on
mm
COMMON STOCK DIVIDENDS
mm
mm
declared
mm
mm
mm
quarterly divi¬
a
& special stock dividend
The directors,
dividend
CHAMP CARRY
•
67th REGULAR DIVIDEND
(No. 5) on the 5% per cent Cumula¬
tive Convertible Second Preferred Stock, Series
August 20, 1956.
mm
mai
mm
43
p. c.
July 20,1956
hale,
Treasurer
The Commercial and Financial
44
Chronicle
.
.
Thursday, July 26, 1956
.
(420)
being expended in de¬
are
sums
BUSINESS BUZZ
competition
sign
technical
and
research, and to
have statutory
renegotiation impending for long
periods is, in our opinion, a seri¬
•
•
handicap to the progress of
ous
this
industry
an
as
of
arm
tional defense."
na¬
'.
-
,
BcHnd-the-Scene Interpretation*
from the Nation'*
Britain Reversing On Social
Capital
Security
|/ Britain
ment
~
This
the
from
inescapable
appears
current news.
available
First, there was the official
announcement of the prelimin¬
1956 fiscal year budget re¬
They give an assessment
of the Eisenhower fiscal trends
and
results.
The Administra¬
ary
sults;
tion's
Chamber
the
United
'
,
spending dur¬
Federal
It
V
below
1955, in submitting
pension age for women.
budget for fiscal 1956, Mr.
Eisenhower estimated revenues
and excise taxes.
actual
and
up
something
by
Even though some of
additional expenses will
be met by additional taxes, this
tion
many
spend-
(
{
$253 million — a quarter
billion — greater than the total
achieved cut in all Federal
were
;the burden on the
Commodity Credit Corp. price
support operations. .Of course,
the latter could drop this year
if between now and June 30,
What happened is
seldom
sional
those
from
spending
fiscal
1953
The end of the
What
1956.
Korean war made possible
through
domestic
a cut
spending
from 1953 to 1956 of practically
$10 billion (actually $9,999 mil¬
,,
v.;
Spending Rises
$4
Billion
military
Mr.;
y^'l
"Eisenhower made his estimates
for fiscal
$62.4 billion j
(roughly) $66.4 bil¬
lion which actually took place.
This was a $4 billion rise in r
the
spending-
over
period.
gods had not
favored
the
Eisenhower
Ad¬
ministration with a boom and
revenues
Hon,
the
been
in
had
held
at
bil-
$60
,.C:/■//':/ •//-
taxes.)
"•
•'
*
<; ;
//j/'-,
"
'•
V"
..
-' v'y
//
Soil Bank
Then there is the $1.3
i
now
deficit would have
neighborhood of
on
price
billion versus the actual I
surplus of $1,754 million.
be
the
»
billion
bank
added
supports vand
from
to
out for
the
farm!
As has
previously been reported in this
column, true D. Morse, Under
Secretary of Agriculture, officially
told a committee
of
on
the public debt.
of
course,
White
some
(Special to Toe Financial Chronicle)
BOSTON,
Colsia
contracts, it will then
that on the average the
of these 12 companies
not excessive," the Hebert
|f/: Keller
profits
Mouse
Bites Cat
are
group
This is another of the "mouse
bites
cat"
Hebert
pieces of news. The;
subcommittee
(after
restrictive
of
frame
of
some
manufacturers
to
their
"We
relatively high
returns
in
invested
base, many observers in
was
it
inexcusable
four years
be
rela¬
capital
/
Wash-,
bound
behind.
is
■
to
SL 456
the
Louis
gressing as fast as aerodynamics «
all
and
its
counterpart.
Vast
Khouri & Co. In
with Fred R.
State
of
St.
Philip
the past he was
Harty.
With California Investors
(Special to The Financial Chronicle)
LOS ANGELES, Calif.—Thomas
A. Carruth is now connected with
California
Investors,
3932
Wil-
shire Boulevard.
TRADING MARKETS
Campbell Co. Com.
United States Envelope
/
Morgan Engineering
National Co.
Carl Marks & Co. Inc.
FOREIGN
SECURITIES
50 BROAD STREET
•
SPECIALISTS
NEW YORK 4, N. Y.
Riverside Cement
Sightmaster Corp.
LEANER I CO.
Investment
Exchange
Mc.
10
at
name
Fashion Park
Sulphur
2,
firm
Indian Head Mills
TEL:
HANOVER 2-0050
Securities
TELETYPE NY 1-971
10 Post Office Square,
320 N. 4th St.
St.
offices
from
under
Botany Mills
SCHERCK, mCHTER COMPANY
Teletype
Philip Khouri Co.
BOSTON, Mass.—Philip Khouri
engaging in a securities busi¬
A. S.
Bought—Sold—Quoted
Bell
St.
portant in an art which Is pro¬
government investments in most
of these plants.
|;//l{/||
Pipeline Common
Stock
State
"Planning is particfixity im¬
Wagner Electric.
Midwest
affiliated
Col, 53
&
If more
help is needed, it should be requested, and four years is un¬
fair to the government and un¬
fair to the contractors, who are
expected to plan for the future,"
the report observed,
up
Keller
Gordon B.
—
become
has
Forms
ness
allow statutory renegotiation to
air¬
that the He¬
subcommittee
come
think
■
Co. Adds
Mass.
(Special to The Financial Chronicle)
modifica¬
Bank of America
Member
Norma A.
Colsia have
—
(Special to The Financial Chronicle)
with
{
tions, for another two years.
Because of the
tion
with
Act,
sive.
rate
Renegotiation Delay
the long delay in contract re¬
negotiation./: It Is /anticipated
that by this time, Congress will
have extended the Renegotiation
investigating
the profits of airframe manu¬
facturers, came to the conclu/
sion that they were not exces-r
-
Gershman
The Hebert subcommittee hiti:
after
t
BOSTON,
concluded.
Hits
Rep. F. Edward Hebert, D., La.)i
of the House Armed Services
committee,
;
Delhi-Taylor
Pan American
Mass.
Samuel
and
joined the staff of Keller Brothers
Securities Co., Zero Court Street.
appear
years.
Texas Eastern Transmission
Pacific Northwest
In¬
Br^f
Two With Krfler
redetermi¬
opinion, more
in a few instances, to be
overpayments. When these are
balanced
off
against the low
together too high especially in¬
asmuch
as
there
were
heavy
Anheuser Busch
on
to the
Kakouris
&
vestment Bankers, Ainsley Bldg.
pear,
with recommenda¬
tions that their profits were al¬
Eagle Oil
;
Constantine D.
—
been added
Makris
of
profit
to
Olin Oil & Gas
staff
account for what may ap¬
than
three
bert
—
contracts
nation will, in our
There
cuts in
Massouras has
"Adjustments either with in-;
{dividual companies or on indi¬
vidual
>
(Special to Tax Financial Chronicle)
MIAMI, Fla.
,
categories of spending over the
ington were sure
Colorado Oil & Gas
found.
soil " con-:
servation in fiscal 1956.
the figures of
preliminary results in fiscal
1956 tell one clear story: Con¬
will
soil
billion paid
$4.1
$6.4
the
which
by
the
In other words,
"'iv'"r
.-
the
if
Hence
(Inci¬
dentally, this sum exceeds total
collections from individual in-'
come
terest
were,
facts
vieiQfi.) /
With Makris & Kakouris
They ex¬
dispassion¬
reported what they ;
'
*
'
and
ately
fiscal
with
compared
As
$35,686
million reported for 1956.
18-month
;
*
;
an
and mil¬
government
spending
is increasing pretty
generally all up and down the
itary spending,
expected.
the
amined
billion
something like
$2
over
the
preliminary
by
Federal spending at
versus
'v,-:
the "Chronicle's" own
.
Finally, in addition to defense,
of
government spending for 1956
were higher: Veterans benefits,
public assistance grants, and in¬
tary spending probably will rise
1956, he figured total
/
1953, the following categories
Defense Department mili¬
So
a^ma^
the
Courtney,
line.
V ;
type and cpnv&ntionaL
-
'-f.
when
1955,
January
Is
spending
higher .cost of the Buck
Rogers war machine, and the
fact that deliveries are begin¬
ning to rise finally on all sorts
of equipment. / Buck Rogersthe
security
national
higher
to
rise
gives
happens in a Congres¬
investigation but which
who knew the judicial
of
both Mr. Hebert and his sub¬
committee Chief of Staff, John
highway, the soil bank,
CI//
"
.
;|/\C |C//''-
noted.
Commerce
[This column is intended to refleet the "behind the scene" inter¬
pretation from the nation's Capital
that which
temper of Rep. Hebert and
combined financial acumen
1957, there was a general crop
failure ' of great and national
•
of
were, nervous
magnitude.
Force levels to hold
Defense
Department
military
soending in the area of $40 milor Armed
f 'lion.
the
of
years
diminish
make drastic cuts in manpower
1
•
might be added that many,
companies themselves
over the inquiry.}
It
not sav how
it would be before
the soil bank's operation would
Congress he could
the rise in total
spending.
million
be gradually moved
women
to age 68.
gressively - increasing
propor¬
of people in the older age
brackets, and
because of the
need for workers, the Chamber
gracefully!
people just can't retire
"Some
these
the
30, 1956, revenues exceeding
first estimates by $8,141
Commission
in
step because of the ex-,
cessive cost of pensions at the
lower age, because of the pro^
| |;
/
65.
at
stayed
Royal
this
beginning with this fiscal
Then there is military
it
men
a
The Commission recommended
(it should >
billion per year
average for the next 13
$2
will rot negate
for
the retirement age for both men
•
In
at
Great Britain recommended that
ing.. The three services have]
startling conclu¬
| submitted to the Secretary of:
sions from these figures is this: i
j Defense aggregate demands for i
Between January 1955 when Mr. i
j over $48 billion of spending in
Eisenhower cast up his first es¬
fiscal 1958, next year. For next
timates for fiscal 1956 and June !
year
the Administration must
;
pro¬
payable
which studied social security
the
of
lion),
pensions
Recently
year).
budget results were $68,141 mil¬
lion—$8,141 million more than
was
estimated some 18 months
previously.
while
billion dollars
the
years
1956
of
some
on
reported
announcement
a
rise
should
like
Congress did.
revenues
impossible
but
rV,;|;
For one thing, highway spend¬
rise
$60 bil¬
lion, if Congress would continue
the higher rates of corporation
hi
for
65, by 1940 the eligible age
for women had been cut to 60,
billion for the cur¬
which ends June 30,
$70
year,
ing
for the year at an even
One
Britain originally
While
vided
1957.
j
I
his
the
when it made
respects will lower the eligible
of
spending will fall
Federal
rent
I?
all
seems
that
;
million
$74,274
the
than
In January
in
of
has
eligible at age 50 persons dis¬
abled from work, and in some
Expenses Rising
j
„
«pent in fiscal 1953.
The
Yet
Commerce
of
States
voted by Congress
budgeted,
first
as
instead
surplus
"liberal" faith.
new
brought
to light the fact that the United
Kingdom is seeing sentiment
arising toward a reversal in the
direction of "social security" as
having
been $1% billion, would have
been about $5.7 billion.
the
year"
ing the year just closed at $66,386 million was $7,888 million
lower
billion
$62.4
of the
age
parisons.
Total
is
the
will be utilized in making com¬
»
proposals,
often looked upon as the mecca
that
(or alibi)
promise
{iscal 1953 was a "Truman
enact¬
simply left to Lady Luck.
On
the
other hand,
if the
Eisenhower Administration had
been dedicated to holding down
expenses, cutting other places to
offset inescapable rises, the pic¬
ture would have been different.
In other words, if the Admin¬
istration had held spending at
will be the year of
$70 billion Federal budget.
is the development which
the
welfare
of
y
^
early
its
spending has not been
achieved and a fair surplus is
of
trol
WASHINGTON, Dl C. —This
fiscal year
for
GArfield 1-0225
■*
Telephone
iy-y\'.' /
V v {/'•/;:./
*s-
HUbbard 2-1990
Boston 9, Mass.
Tel-type
BS 69
@FedFRASER