Full text of Commercial and Financial Chronicle : July 28, 1955, Vol. 182, No. 5450

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university
of michigan

ESTABLISHED 1S39

1955

JUL 29

AOMIIIISTIATION

"The Commercial

LHIMY

Ref. U. 8. Put. Office

Volume 132

Number 5450

New York 7,

N. Y., Thursday, July 28, 1955

Price 40 Cents

a

Copy

EDITORIAL

Pillars of Oar Foreign
Economic Program

We See It

As

President Eisenhower is, of course, right when
he

that

says

time

alone

achieved at Geneva.

tell

will

what

By NEIL H. JACOBY*

By DEAN CLARENCE E. MANION*

Dean, School of Business Administration

was

Accomplishments there,

Social Security or
Socialistic Coercion?
Sponsor, Manion Forum of Opinion

University of California, Los Angeles

as¬

South Bend, Ind.

Former Member Council of Economic Advisers

suming that there
of

were

intangible nature apparently turning

an

Dean

in

personalities. Such achievements

upon

occasionally
than the

Mr. Manion views the Social Security and

Jacoby lists

program:

large part

to be of much

prove

largely illusory

lifetime of the

they

in the U.

value

more

formulation of treaties

mere

ments— and sometimes

been

accomplishments,

were

or

personalities

upon

an

sion Laws

reduction of trade barriers between

a

expansion of U. S. foreign investment,

and (4) technical assistance to underdeveloped countries.

agree-

Reviews recent steps

taken by the Eisenhower Adminis¬
goals, and concludes that strength¬
ening the Free World and winning the support of neutral

which they de¬

peoples will help establish

peace

In

Most

achievements
first

rate

of

existing at this time
could

this nature

Anything

importance.

be

of

of

re¬

struggle

sembling final appraisal of the work at Geneva
must await future

talism

developments.

one

achievement which if real could

milestone in international relations

only this country and Russia but
major

powers

mark

suspicion, not to

suspicions

thoughts

are so

the street

of

this

sort

The

l

expressed

Such

Continued

to

the

Los

porate securities

are

afforded

a

Angeles

over

With
of

Committee

a

on

unprecedented

platform calling for tax reduction, and, so,

war

no

taxes

is

and no

not

Stale and

AMERICAN RADIATOR

Municipal

Yields

Securities
telefboxe:

HAnover 2-3700

STATE

AND

address by

radio

Dean Manion over

Company, July 24,

Financially Strong

network of the Mutual

a

1955.

CHEMICAL

Request

on

BANK

BOND

DEPARTMENT

30 BROAD

ST., N.Y.

J. R. WlLLlSTON & CO.
members
ano

other

new

york

stock and

isss

stock

115 Broadway, New York 6, N.Y.
Miami

Beach

THE FIRST NATIONAL CITY BANK

exchange

OF NEW YORK

commodity exchanges

—

REVIEW"

TeLeWATSON&CO.
ESTABLISHED

1832

Members

Active

Dealers,

Exchange

American

Exchange

Stock

FIRST

S'Cat/M€4t COMPANY
Dallas




50

BROADWAY

NEW YORK

4, N. Y.

Brokers

Orders

Executed

Canadian Exchanges At

•

PERTH AMBOY

34

Exchange

Chase Manhattan

BROADWAY, NEW YORK 5
offices

from coast

to

BANK

coast

On

Iowa Southern

CANADIAN

Utilities Co.

BONDS & STOCKS

SECURITIES

COMMON

All

Regular Rates

Analysts

CANADIAN DEPARTMENT

DIRECT WIRES TO

MONTREAL ANO TORONTO

Goodbody a Co.
MEMBERS

BRIDGEPORT

THE

Maintained

and

Teletype NY 1-2270

State, Municipal,
District Bonds

Banks

CANADIAN
Commission

New York Stock

Markets

DEPARTMENT

REQUEST

Members New York Stock

Teletype: NY 1-708

Rye, N. Y.

Net

Agency

Bonds and Notes

HARRIS, UPHAM & C°
120

Bond Dept.

To

County and

BOOKLET

BOND

established

.

Public Housing

ARE NOW AVAILABLE
ON

CORN EXCHANGE

and

"ATOMIC ENERGY
.

Analysis

27

State, Municipal

COPIES OF OUR

BONDS

page

SEC

{Pfc,
NEW

increasing Diversification

on

investors in cor¬

Registration" Section, starting on page 32.

MUNICIPAL

Government con-

Continued

on

dealers and

5.4%

the tax¬
billion.

depression that astronomical sum

enough/The Federal

in

U. S. Government,

Manion

littitme

not $2 or $5 or $46 billion, but $73

complete picture of issues now registered with the

and potential undertakings In our "Securities in

peace,

1954, the Federal Government collected from

Broadcasting

Underwriters,

—

: came

payers,

Angeles, Calif.

SECURITIES NOW IN REGISTRATION

DEALERS

in

Neil H. Jacoby

♦A

Jacoby

of the most

Eisenhower Administration had tak¬
en

*An address by Dean
Foreign Relations, Los

21

on page

collected

and the official liquida¬
tion of what the Republicans called
the
"mess
in
Washington."
The

foreign

our

1939

prosperity

action, they confuse
and lose their per¬
between

bond

in

at the climax

1945

Then

I

policy and our domestic
policy is necessarily very close. Americans give
allegiance to certain basic economic ideas in our domestic
policy, such as private property, open markets, competi¬
tion, and free entry into business enterprise. An antiContinued on page 22

other-

or

all \

on

economic

far from the mind of the man in

here that doubts

consistent

economic

believe

real.

were

.

suasiveness.

always been

difficult fcr the citizen of this country to
that

concept or in
other peoples

imperialist designs

that extend around the world. It has

are

fronts, they are mutually reinforcing.
To the extent that they diverge in

the fixed belief, that the

say

policies

weeks

devastating
and expensive
World
War in history, the Federal tax col¬
lections
amounted
to
$46 billion.

the other. To the extent that Ameri-

less all

of the world. We refer to the

United States of America has

In

economic policies, on the
hand, and of our foreign political,
military and economic policies, on

involving not

three

address

$5 billion from its taxpayers.

one

more or

Government

eral

domestic

a

said to have been made in allaying the

progress

Communism.

totalitarian

advancing toward our objective,
there must always be a basic in¬
tegrity
of
our
foreign
and
our

can

the

and

excellent

his

of

course

quently, after several years of what
the late Harry Hopkins called the
official New Deal Policy of spend
and spend and tax and tax, the Fed¬

Capi¬

democratic

between

In

Dispatches from Geneva suggest the possibility
of

broad objectives

foreign policy is to strengthen our ties with other
of the Free World, and to bring within the
fellowship of the free nations those countries which are
as yet neutral in the global ideological
our

nations

really

remotely

Americans will agree that the

the

United States Senator William Jenner cited a few
figures that need constant repetition. He recalled that,
despite all the extraordinary needs of the Great Depres¬
sion in th year 1932, our Federal
Government collected $2 billion from
the
American
taxpayers.
Subse¬
ago,

knd prosperity.

pended in the first place. It is at least conceivable
that in the world situation

as

tration toward these

limited to the official

or

a

S.; (2)

nations; (3)

in time to have

prove

(1)

Old-Age Pen¬
political cowardice, socialistic coercion, and
fraudulent extortion. Says "Why not take the compul¬
sion out of Social Security?" Cites estimate of Congress¬
man Noah Mason that, 20 years from now, it will require
$20 billion yearly in taxes to meet Social Security pay¬
ments promised in the pending House bill.

pillars of our foreign economic
strong and sustained economic growth
as

NEW YORK STOCK

EXCHANGE

115 BROADWAY

1 NORTH LA SALLE ST.

NEW YORK

CHICAGO

Poxdhox Securities
(ORPORATIOTi
40 Exchange Place,

New York 3,N.Y.
WHltehaU 4-8161

request

IRA HAUPT & CO.
York Stock Exchange
Principal Exchangee

Members Neu)
1

and

ether

111

Broadway, N. Y. I

WOrth 4-6000

Teletype NY 1-702-3

upon

Boston

Teletype NY 1-2708

Telephone:

Enterprise 1820

2

The Commercial and Financial Chronicle..

(370)

For Banks,

The

Brokers, Dealers Only

Brown &

Sharpe

Security I Like Best

This

A continuous forum in which, each week, a different group of experts
in the investment and advisory field from all sections of the country

Copeland Refrigeration

participate and give their

Life

Gulf

Harshaw Chemical

they to be regarded,

HERBERT

Maine Central RR.
National Gas & Oil

selected

is

stock

t

p o

Republic Natural Gas

New York Hanseatic

q

have

growth and profit

t ials.

known

investors

whose
I
to

1920

you,

to

manufacture

sell

first
a

the

fully

tomatic

u

control system

Member

for

Exchange

Broadway, New York 5
Teletype N Y 1 -40
Principal Cities

Specialists in

Rights & Scrip

steam

has

well

as

Members
New

York

Stock

customers

York

New

City

If the market history
two years

fail

not

the

to

American

120

Stock

Exchange

BROADWAY, NEW YORK 5

outstanding

It

TEL. REctor 2-7815

may

of misun¬
derstanding
where

rm

odd,

seem

of its

American Furniture
Bassett Furniture Industries
;

automatic controls

From

Camp Manufacturing

this

Hall

ganized

sidered to be

Dan River Mills

one

(or¬
con¬

of the most im¬

portant water laboratories in

Life Insurance Co. of Va.

world

perhaps

—

the

the

im¬

most

portant.

STMDER JAYLOR & CO., Inc!

has

Lynchburg, Va.
LD 30

potentials

added

TWX LY 77

of

the

to

the

,

seemingly
recently

was

mechanical

business:

lecting

a

machine

to

col¬

dust

new

be

known

as

An analysis by a well
independent engineering
organization gives it a very high
rating.

known

VIRGINIA-WEST VIRGINIA

The company's

headquarters are
Pittsburgh, Pennsylvania but
plants in Elwood, Pennsyl¬
vania and Orville and Riceland,
it has

CAROLINA

Ohio. It has 23
and

MUNICIPAL BONDS

U.

S. sales offices

representatives in

11

foreign

•F. W.-

Let's take

to

years

CRAIGIE&CO
RICHMOND, VIRGINIA
Bell System Teletype:

RH 83 & 84

see

look at the past 10
how this corporation

pointing

progressed. Sales and other
income increased from $6,937,410
1.945 to

$17,391,216 in 1954;

up

157%. Net income increased from

Telephone 3-9137

$212,131 to $665,964; up 166%. Per
share earnings increased from 71
cents

to

1856

$2.22;

up

Members
New

York

Stock

Exchange

American

Stock

Dec. 31, 1954 current assets
$6,502,749, current liabilities
$1,803,783. No bonds, no preferred
stock, no bank loans—only 600,000
shares of $1 par value common

New

Cotton

Exchange

York

Commodity
Chicago
and

Exchange,

Board

New Orleans

Miami

■MIywood,

•

Beach

Geneva,

•

•

•

Coral

Beverly

Gables

Hills,

Switzerland

Amesterdam,

Holland




"

CaL

the

itself

al

value

products

whose

sales

be

has

started

soon.

The

ing

captive

a

Mobile, Ala.

be-.'ultimately
liquidated.

and

mined

,

branch

our

office*

turn

with

the

nouncement

much

as

ties

as

known

company's

that

JAPANESE

out
-

>.

,

•

1 Since the beginning of the year,
however, events have taken a new

.

SECURITIES

an¬

to

might invest
$8 million in proper¬
the

as

Christmas

have unusual appeal

'

investors with vision—

<

may

it

investors with knowledge
of Japanese

and

Year

Mines,

which

it

under

option.

These

Call

proper¬

have apparently

for

posits of 3Vz%
the
state

new

time,

cf

and

Securities Co., Ltd;
Established
Home Office

because

to

1897

Tokyo—70 Branches

Brokers & Investment Bankers

Owing to

companies

reserves

write

Yamaichi

high grade de¬

copper.

reluctance

potential.

or

now

under

been

some

said to contain

Arizona
ficult

111

Broadway,N.Y.6 COrtlandt 7-5680

of

property taxes, it is dif¬

to

the

size

of

mar¬

the

We recommend

dealers,

their

ultimate

but

value

should

jus¬

URANIUM CURPORATIUN

ment.

With

tion,

this

has

been

by the recent strike,

selling

far

market.

below
value

vestment

usual

For

untouched
to be

seems

its

proper

in

the

gains

un¬

opportunities

few

next

in¬

current

high yield and

capital
the

UF AMERICA

background, Inspira¬

which

this

months

Highly favorable reports are
now
being received from the
Company's properties. Latest
of these is the

received

just

stock

has,

in

my

following wire
from President

J. H. White, Jr.:
back assays

"Got

Wyoming

on

PJ-

claims from River ton Assay Office.

show

Assays

quality

to brokers,

investors

and

presumably

tify Inspiration's proposed invest¬

good

list

the

estimate

properties,

new

the

commercial

10

grade

feet

20

to
ore

of

a

quarter

over

mile square.

opinion, few competitors.

Estimated million four
forty thousand tons fif¬

hundred

hundredths

teen

of

net

shortages. The
strike of Phelps Dodge and

recent

Kennecott

least

at

in

prices,

together

This

ore.

$7.00

should

ton."

per

ominous

Chile,

finally hammer the
home that the outlook is

rumblings

In

bad

as

saying

as

and

prices

of

leading

Aug.

estimated

copper

Sept.

$1.38

in

should

and

for

$7.

the

around

The

months

for

11-14,

$6.50

1955

out¬

20

(Mackinac

30 FEDERAL ST., BOSTON
New

direct

wire

to

New

REctor 2-4208

A.

T.

&

T.

Teletype

—

.

York
,

Boston

128

(Philadelphia, Pa.)

hovJR inOf

Philadelphia 30th
Day, at Hunting¬

Annual Field

and

production.

Investment Securities

b

meeting of Board of Gov¬

Bond Club of

*

don

Valley Country Club, Abington, Pa.

property is a
pit operation in

years'

McCOY & WILLARD

Club

(Chicago, HI.)

Sept. 16, 1955

principal
open

16-17

Fall

year

Arizona with probable reserves of
to

annual

'«'

obligation.

ernors.

just

the

between

range

low-cost

15

Club

No

booklet.

Investment Bankers Associatioi

first

the

show

three

Earnings

should

Sept.

9V2% on an
dividend. The com¬

$5

neces¬

';

for illustrated

Colo.)

National Security Traders Ass©
elation annual convention.

around

earned

ended.

(Denver,

land, Mich.)

yield

are

to

mar¬

outstanding value,
opinion, is Inspiration Cop¬
currently selling at around

quarter

1955

ing at Park Hill County

Of these the

to

18-19,

Denver Bond

long

in my

$1.80

Field

Send

equities.

53

estimates

goes

Company.

has been

everyone

bring

about a
adjustment in the

overdue

per,

Investment

from

may

point

such

subject

rev'sion as pro¬
forward,
they
are
significant as showing the profit
potentialities. We continue to rec¬
ommend the Common Stock of this-'

EVE NTS

with

new

ket

sarily

duction

by yet another increase

copper

not

While

COMING

mines, which should be

Sept. 21-23,

1955

Association

Pro¬

of

t

g

%

a

£

5i

a

(Denver, Colo.)
Stock

Exchange

duction costs

Firms meeting of Board of Gov¬
ernors.

are thought to be in
neighborhood of 18 cents a

pound, a figure which is appar¬
ently only bettered in this coun¬

Sept. 22, 1955 (Omaha, Neb.)
Nebraska

try by Kennecott's Bingham Can¬
yon and Phelps Dodge's Morenci

operations.

It

the

property

present

is

($66

a

estimated

share)

Country Club—to be preceded
by a cocktail party Sept. 21.

du¬

to

A

n a c o n

d a's

been

outstanding.
progressed

The

from

a

efficient,

Nov.

process

lion, in cash.
»

t

1

|

'

19,

New

company

1955

(New

York

City)

York

cocktail

party

and

modore.

National Quotation Bureau

4

<

S

i

S

.

r

annual

Convention

Incorporated

(Hollywood

Established 1913

Investment Bankers Associatior

Unfortunately, until

for 42 Years

dinner dance at the Hotel Com¬

high cost

cumulated approximately $19 mil¬

Quotation Services

Security Traders Association of

a high¬
producing Nov. 27-Dec. 2, 1955
Florida)
it has ac¬

modern

unit, in which

Stock

ernors.

underground operation to

ly

of

Exchange
Firms meeting of Board of Gov¬

control

(exercised through ownership of
28%
of the stock)
Inspiration's
metallurgy and engineering have

Over-the-Counter

Nov. 16-18 (New York, N. Y.)

Association

Under

Bankers

day at the Omaha

cost

plicate.

has

Investment

annual field

that

would

I: t

'U '

to

suf¬

which

property

would

over

while the met¬

headed

man¬

agement
is
considered
experi¬
enced, able and is conservatively
progressive.
;ti

NY 1-1557

critical and chronic

have

from

$687,910 in 1947
to $4,082,137 in
1954; up 494%.
Expansion costing about $1,000,000
will

in the world

copper

risen 50%

ket has

.

fered under the reputation of bM

price

.collapse

price of

business

questionable

is

increased

tion and

B. K. Thurlow

$80,000,000
cer¬

planning expansion of
other segments which are exceed¬
ing expectations; such as house¬
hold

Pittsburgh

of

are

to it and

Y.

of

segments

which

Exchange Bldg.

Detroit

Pia.

tain

Trade

N.

which 300,000 shares are

Management is eliminating

Exchange

4,

of

outstanding.

Inc.

exchaiigcs

NEW YORK
Chicago

of

Cotton

other

H. Y. Cotton

{

stock

Exchange

pnd inspiration long

,

Exchange

La. - Birmingham, Ala.

Direct wires

exploration

the

212%.

were

H. Hentz & Co.

program

extensive

imminent

overproduc¬

On

Establised

to

a

has

in

steady

a

edictions

p r

pany

countries.

copper

stream of dire

in

NORTH and SOUTH

life

industry.

division

"Atomix."

Since 1932 Specialists in

New Orleans,

of the benefits of the larger

none

company's

occurred

the

Amid

followed

Another product'with

great

of

facts

several

Laboratories, Inc.
1925) which is

in

Anaconca

to

the

recognize

business.

evolved

and

corporations

de¬

nationally known products for the
treatment of water and the curing
of
smoked
meats.
Perhaps you
know some of them: Calgon, Calgonite, Thanx/and Curafos. It also
owns

Commonwealth Natural Gas

have

t h

o

have failed

in

it

but

b

investors

veloped logically, that this corpo¬
ration got into chemicals because
Trading Interest In

HAnover 2-0700

recently (he association with
brought Inspiration

very

Stock

St., New York 6, N. Y.

areas

will

precludes "romancing" — it
allow only important facts.

of the past

out that one of

point

but limitation of space

acorn

19 Rector

are

is ever written it should

sturdy oak which sprung from its
1918

Members New York Stock Exchange

Members American

exploration

Inspiration Consolidated Coppir

bit of "romance" in this

Exchange

Steiner,Rouse&Co.

ties

Thurlow

Osborne &

Partner:

which are about 100 of our
largest
industrial
corporations.
a

Thurlow,

City. (Page 2)

has

THURLOW

K.

BRADBURY

national.

as

14,000

over

There is

&

Harris

E.

among

yfcftONNELL&rO,

Osborne

Bought—Sold—Quoted

Thurlow,

Partner,

New
Herbert

largest public
utility and industrial power
plants. But that is only one spoke
of the wheel. The company has,
over
the years, developed other
products in several fields. Through
research it continuously seeks to
develop new products and- im¬
prove present ones. Its business is
It

K.

about 24.

our

international

Since 1917

over-the-

traded

is

counter and is currently quoted at

equipment

controls

of the company? Hagan

stock

This

boilers. Today
its

available.

not often

2)

Copper

Bradbury

—

New York

(a

Corporation.
Hagan Corporation stock is pri¬
marily for those who seek an in¬
vestment in a good, ably managed
company which has an unusually
good record over a long period
of years.
Also, the primary pur¬
pose for the investment is poten¬
tial capital gain.

com¬

born

is

(Page

Consolidated

well

very

closed cor¬
offers astute
of those opportuni¬

one

name

mend

not

company

which

stock

any year.

poration until 1953)

The

ration,

Co.

Louisiana Securities

Herbert E.

—

Harris, Dayton, Ohio
Inspiration

that

are

this

of

shares

ties

and

Corporation

to

think

Iiagan Corporation

failed

never

Alabama &

Their Selections

Cur¬
operations
are most satisfactory
in all divi¬
sions of the business. I think the

years

was

Wires

among

I

profit in

a

reports

ago the corpo¬

Travelers Insurance of Hartford

Private

place
which

average

e n

seven

Tennessee Gas Transmission

WOrth 4-2300

I

few

a

on

has

company

to make

discourse

Thirty-

Rockwell Manufacturing

120

brief

a

that

above

Pubco Development

Stock

The

HARRIS

particular security.

a

are not intended to be, nor
sell the securities discussed.)

to

rent

This

American

E.

offer

as an

Dayton 2, Ohio

Longbell Lumber of Mo.

Established

for favoring

(The articles contained in this forum
are

Kaile Mines

Associate

reasons

Week's

Forum Participants and

Chesapeake Industries

.Thursday, July 28, 1955

at

Holly-

46 Front Street
CHICAGO

New
SAN

York4,N.Y.
FRANCISCO )

wood Beach Hotel.
i

Number 5450

Volume 132

The Commercial and Financial Chronicle

...

3

(371)

K

INDEX

A Realistic Look at Interest Rates
Vice-President,

C. F.

Childs

don't

.

times there

rates, though at

to

be set-backs.

may

about mortgage
weakening."

much

worry

Pillars of

A Realistic

Says

your

attention to the fact that we
living in a dynamic econ¬

sumption goods.
Personal
saving

now

in

Europe

suspiciously

another

like

year

number

considerable

a

there

is

to

not-has

or

govern¬

not

occur;

have

permit

moreover,

faith

the

Political and

not.

or

important,: changes
t

•

sr.

•

V

4

.

in

little

'

-

\

It

that

so

•.

it
a

to

is

the

more

:

;

A

v

having

persons

income

those

continue

not

than

incomes

But

being realistic, we must
grant that there is no foreseeable
government

1952,.that

be-r

going

ministration

would

withdraw

Federal Government almost

pletely

from

that

and

would be

economic

it
a

what

/

mad

They

depression.

No

ined

these

And

days

doing

as

with

the effect of
tration

a

can

be

to

one

us,

dynamism

of

hazard

is

Eliot

the

in

technology.

re-itemize the

to

than

widely

more

come,

ever

before,

element

distributed
rising. More

are

particularly, disposable income is
rising, and a smaller part of it is
Ibeing devoted to saving. Dispos¬
able income is what remains after

taxes;

saving,

what

remains

*A

talk

"Michigan
Mackinac

in

this

of

disposable

by Mr. Van
Savings
and
Island, Mich.,

is

concept,

in-

Cleave to the
Loan
League,
July 22, 1955.

Decreasing—Roger W. Babson

Bank

of

New

Janeway

specialized in

G.

.

,

Minshall

Decline in

Nashville

;

Otto

Dissects

Sees

of

are

things

new.

since

this

There
new

the

; •.




U.

White Canyon Uranium

S.

Regardless

of
19

Views

of

Harry

Sears

J. F. REILLY 4 CO.

"The

on

(Letter to Editor)

Members

26

Organ

Industry

Establishing

Record

Noted

by

Saul

42

Salt'Lake City Stock Exch.

Broadway, New York 4

and

Fromkes

As We

Bank

.•

Direct

Regular Features

*

-

Teletype: NY 1 -4643

wire

26

to

Salt

branch

Lake

office

in

City

/

t

(Editorial|i___

See It

and

Insurance

-Cover

Stocks

22

Avien, Inc.
Business

Man's Bookshelf.

40

_

Coming Events in the Investment Field

Corpus Christi Refining Co.

2

Dealer-Broker Investment Recommendations

8

Foremost Dairies, Inc.

;

*

re¬
.

is

no

Gulf Coast Leaseholds*

new

neither

was

and

Mutual

News

being

resource
use

About

Banks

until

Our Reporter
*

Our

Wilfred

Public

Utility

flows

those who

into
take

in the

production process. It
plies, in short, a part, and a

the

part

May

con¬

part,

purchases

on

of

top

the
of

&

8'

Securities

,

great

sums

Stock

Personal

Registration

on

page

Schenectady

.-•<

•

•

**

Direct Wires
•

to

\

Chicago * Los Angeles

37

Securities Salesman's Corner

27

Market

16

Security I Like Best

.

.

and

.

You—By Wallace Streete

The State of Trade and

Industry.

4

Reg.

Weekly

I

Drapers'

land,

CHRONICLE

c/o

Garden*, London,
Edwards & Smith.

U. S. Patent Office
DANA

HERBERT

D.

COMPANY, Publishers

2-9570

to

WILLIAM

second-class

as

Glens Falls

SEIBERT,

Thursday, July

28,

Subscriptions

President

Possessions,

In

Territories
Union,

Canada,

of

Other Countries,

1955

Thursday (general news and Ad¬
issue) an/. —ery Monday (com¬
— market
quotation
records, corporation news, bank clearinga,
state and city news, etc.).
statistical

Worcester
Chicago 3, IlL

135

South

(Telephone

La

B. Dana

matter

United

Pan-American

Every

Offices:

Eng¬

Sail#

St.,

STata 3-0613)}

Other
Bank

and

and

$62.00

U.

Members

In

per

made

in

Schmieg Industries, Inc.
Industries, Inc.

Copies available on request

per year.

Publications

of the

Ntv York

Alloys Corp.

year.

fluctuations

In

the rate of exchange, remittances for for¬
eign subscriptions and adv^lsamentt mu*t
be

the

of

year;

per

$58.00

Quotation

account

on

S.

Record — Monthly,
$37.00 per year. (Foreign postage extra.)
Note—On

American

ORRadio

States,

$55.00

prepared reports
cam ponies:

Holiday Plastics, Inc.

Febru¬

Subscription Rates

vertising

Other

C.

have

following

ary
25, 1942, at the post office at New
York, N. Y„ under the Act of March 8.1879.

9570

SEIBERT, Editor & Publisher
DANA

E.

Copyright 1955 by William
Company
Reentered

B.

We

40

20
Twice

GROWTH COMPANIES

2

Dominion

TELETYPE N. Y. 1-5

Chicago

inc.

32

Washington and You

Exchange

•

more

securities

consumer

it.

manufacturers, en¬
are willing to spend
of money for these

Continued

Mackie,

Philadelphia

18

income mentioned earlier.

Producers,
trepreneurs,

markets in

over-the-counter

40 Exchange PI., N. Y.
Teletype NY 1-1825 & NY 1-1826

-

19

The

-

250

HA 2-0270

Prospective Security Offerings

sup¬

Request.

Singer, Bean

17

The

siderable

We maintain trading

5

Securities
in

on

14

Governments

on

Securities Now

it

Bankers

Reporter's Report____

is

and

and

Circular

31

for it, and

Railroad

all

12

28

Observations—A.

Capital Spending

of

Activity.

Funds

these things require money
—vast amounts of it.
The money

spent,

:_

Uranium

Pacific Uranium Mines Co.

than

All

hands

Business

Petroleum, for

not a
a

are

Washington Ahead of the News—Carlise Bargeron

Indications of Current

flood

a

uranium.

was

,

completely
are being de¬

uses

for the old.

From

Standard

11

*

prod¬

are

resources

and

Einzig: "British Government's Defense of Sterling"

new

war,

producing

now

which

New

veloped,

York

•

in

26

^

ST., NEW YORK 4, N. Y.

Boston

Continue

Government Office Tenancy

,

.

plete
•

Shifts

are

ones.

Spencer Trask & Co.
Albany

10

DIgby 4-4970

PREFERRED STOCKS

TELEPHONE HAnover 24300

Reveals

High Sales in 1955

REctor

BROAD

Sabre Uranium
9

_•__

25 Park. Place, New York 7, N. Y.

25

Uranium

12

Says Cold War Will

Shull

FINANCIAL

New

Corners

Spokane Stock Exchange
Burton

WILLIAM

Members

4

18

j

L

Conference

Published

have

York

Payments___l

The COMMERCIAL and

For many years we

14

__;

Conspiracy Against Gold"

time

ucts and methods which have been

example,

Future

in
our present dynamism depends in
part upon the first. It is confi¬
dence in the future, which is felt
by almost every one. Personal in¬
large

of

Frederick

/

need

found

very

Federal Uranium

.

'

Reserve

Balance

in¬

applied science,

is

somebody found
Another

Lisbon Uranium

13

•

,

bor¬

same

new

search,

which

removed.
Confidence

incurring

introduced

change in Adminis¬

before

which
same

another factor in

thing.

demonstration

12

New Developments

Still

imag¬

be

such

any

that

wrong.

likely

in
the

old borrowers

some

are

activities,

were

Administration

■elected

others

they

■dollar" it would certainly bring on
a

that

paying off debts at the

the

Dacey____.

Scotia

Geneva

com¬

thought
pursuit of a "sound

Self-Employed Retirement Plans

to

are

time, and

Ad¬

new

a

Nova

Federal

v.

becoming continuously
more heavily burdened with debt.
We should keep in mind popula¬
tion growth. New citizens are be¬
coming" adult borrowers all the

be

.

more

ever

are

thing,

mean

rowers

reduced very
much. It is much more likely to
grow. Some people thought, near
of

WALL STREET, NEW YORK
Telephone: WHitehall 4-6551

Standard Uranium

large and rising, people

static

a

creases

end

99

6

Ernest Henderson Expects Chain Hotel
Expansion to Continue

be

.

spendable
that

F.

•

iof

fore, and with the confident belief

results.

the

★

Obsolete Securities Dept.

Measure-

Resumption of Capital Investment in Canada Cited by Bank

it,

/

With

choose, would produce still better

total

Productiviy

is

must

potent

,

that

belief

generally are*willing to spend
rather
freely -the
money
they
have, and to borrow for adaitional
part than it used, to do.
Per¬ purchases on top of it. Personal
sonally, I should like to see that consumption expenditures now
part decreased.
I
believe that are about two-thirds of total GNP.
smaller taxing and spending, leav¬
On the point of consumer borrow¬
ing more income for the citizens
ing, in passing, L think we should
who earned it to spend as they
note that total consumer debt is

that

stranger!
★

so

the

with

do

fidence.

dynamic and grow¬
substantial degree, it

will

no

-

10

Against

Crime and Accidents

/

because", government, /Federal,
state, and local—plays a bigger-

spending

to

comes

to

is

likelihood

of

Rucker_

Treasury Not Affected by Silver Purchase Act Repeal

••

Why is
ing? To

Aspects

4
5

.»i'v—Hon- W. Randolph Burgess___^______________L_i_—

important, and that
recognized as a
force in maintaining con¬

belief

whole

our

Government's Larger Role

.

is

so¬

ciological developments in past
years have
brought about some
set-up.

question.

we

about

worry

Cobleigh_

The Demand for New Housing—Robert C. Turner

:

manent

Financial

W.

that

-

power

Whether this is

prevent them.

of

will

implicit

an

governments

don't have to
whether it is per¬

ahead

years

and

v—Norman

wide

very

that

exists

hereafter

depressions

genuine new era.

a

U.

the Wrong Path—Albert Hunold

on

Don't Discriminate

-

Never¬
theless, I do believe the present
era is sufficiently different so that
for

When it

obsoletes—we're

3

was

Broadly speaking,
ments

and realistic, I have to
admit some cfoubt about the real¬
a

Dynamics—-Ira

—Rep. W. Sterling Cole_

7.2%.

or

1941 it

confidence

skeptical

ity of

,__

In

income.

In the
11.9%, in
1953, 8.0%, in 1954, 7.7%.
■
'■'*

Being

era.

new

Cleave

*

billion,

the declaration of those who pro¬
claim

Cover

Atomic Energy Can Contribute to European
Stability

first

the

quarter this year it was

$18.7

whole

sounds

K0T AS A STRANGER

*

..

1

Look at Interest Rates—Robert Van

ment—Allen

„

$21.8 billion,

was

of disposable

first

tne

.

That

8.6%

or

growth has

period of new

a

in.

Foreign Economic Program

Jacoby

Powder for Dynamite and

Atlas

-

quarter of 1954

growing, expanding, econ¬
omy. The stagnation period in t e
decade of the J930's is behind us,
omy—a

AND COMPANY

Cover

"

Economic

come

set

Manion

,

after expenditures for con¬

begin I should like to invite

and

H.

Socialistic Coercion

or

E.

Our

—Neil

interest: rates

To

are

Security

.—Clarence

closely tfed to business fluctuations, and "you

are

need

—

Social
^

likely to continue to grow in the near future, and thus create
an increasing demand for investment funds,
Mr. Van Cleave
holds this should mean a gradual tendency toward higher interest

Page

Co.

&

Pointing out government spending and capital investment is

interest rates

llCHTfllSTfllf

"

Articles and News

By ROBERT VAN CLEAVE*
Assistant

funds,

S. d. Fuller & Co.
39 Broadway,

WHitehall 3-0066

Hew York 6, H, Y.
Teletype HY 1-4111

The Commercial and Financial Chronicle...

(372)

4

turned

are

able to remove and delete

desired

Dynamite and Dynamics
By IRA U. COBLEIGII

of

Sales

Containing

comment

current

chemical equity selling at a
The

"Atlas" has been va¬

word

riously associated with a mythical
character

holding

with his head

i

world

the

up

hands;

and

book

a

of

maps;

a

*

•

mountain

and

in North

range

Africa.

The

Atlas

we're

going

talk

to

about

today,
however,
is
of these,

none

but

powder

a

company—At¬
las

—

a

somewhat
s

Ira

U.

cialized,

p e

moderate

Cobleigh

sized chemical

the

on

of

verge

war

blow

to

Yes,
are

The Explosive

the

set

to

was

of

explosives

the
con¬

tained in the du Pont Company so
it decreed
a
separation of the
and

competing corporations—du Pont,
Hercules Powder Company,
and
Atlas Powder

Cohfipany. Du Pont
to struggle along in its
quiet way, after this Federal

managed

fission, to become the largest and
most
important chemical enter¬
prise on the face of the globe,
while

Atlas

held

the

globe

and

Hercules profitably flexed its re¬
nowned muscles. The junior mem¬
bers

of

the

while

team,

vastly

outdistanced by dazzling du Pont,
have given through the years, a
most creditable

Atlas

off.

also

owned plant at Chattanooga, Tenn.,

business into three unrelated

own

Division of Atlas
standard
items,

stuff

TNT

out

accouht of them¬

selves; and Atlas, the topic for
today, promises to hit an all-time
high in sales and net earnings

at

a

monia is

government

a

fee basis.

fixed annual

materials

of

bridge?

turns

that there

concentration

a

dynamite of ammonia and nitro¬
glycerine, and blasting gelatins,
together with equipment required

eral Court decided

much

the

out

turns

on

too

or

portant in explosives.

expansion in earning power.
Forty-three years ago, a Fed¬

manufacture

corral

a

up

in peace or war, explosives
important and Atlas is im¬

new

a

Am¬

of the essential base

one

for

At¬

explosives and

would

las

clearly, benefit if it
(instead of purchasing)
its
own
ammonia
requirements.
To that end plans are afoot to
build an ammonia plant, outside
of
Philadelphia,
under an
ar¬
rangement with Alan Wood Steel
Co., for developing the required
hydrogen from coke oven gases.
All other major manufacturers of
explosives produce ammonia, and
produced

analysts have calculated that

some

Atlas

would

receive

net

benefits

the

from

order

of

$750,000

economies

Sorbitol

to

the

level

of

plant

This

Sorbitol

(which we'll explain in the next
is

This vitalized and

alcohol

made

ener¬

tion

corn

gized management, combined with
extensive
and
imaginative
re¬
search, plus recent sloughing off

raw

manager.

of

lines

of

Atlas

not

the

main

stream

have given a
look to this com¬

progress,

decidedly
pany

in

and

new

its

for

prospects

en¬

of

by the hydrogenasugar.
It is a basic

material

competitive

ture

content.

Combine

fatty acids, and
and

you

emulsifiers.

used

the

in

It

can

explosives;
chemically

as

(detonating not dusting)

powder

a

company,

this

today ranks among the three
largest manufacturers of indus¬

such

trial

is

and

20%

explosives,

serving

of the market.

about

And, in

case

Sorbitol

the
in

with

also

making of oil

Atlas

of

it

get detergents

tives, and plasticizers.

out

with

glycerine, and is also used as a
humectant, i.e., it controls mois¬

larged profitability.
Let's begin with the traditional.
started

of

1954. The indus¬

in

gross

trial finish line had been deliver¬

This is

ordinance.

a

line that defi¬

nitely fits into the Atlas

picture.

be
addi¬

About 20%

output goes into
balance is used

industries

many

food, drugs and cosmetics.

as

A

third major earner for Atlas
the line
of
Darco
products.

These

are

activated

Having briefly cataloged Atlas
activities, what can we now say
about

finances, earnings and ex¬
Well (in reverse or¬
$25 million was spent
on
plant modernization and ex¬
pansion in the postwar period up
to January, 1955.
About 80% of
this outlay came from
retained
earnings and depreciation. Some
$4 million more will be spent in
1.955, not counting the proposed
anhydrous ammonia plant, men¬
penditures?

der),

over

tioned

earlier.

carbons,

earnings are just a
little bit confusing since, on Dec.
31, 1954, there were 589,000 com¬
mon
shares outstanding on each
of which $4.05 was earned for the

Since

1954.

year

then

(July

5,

DEALERS

(at the rate

of 2% shares of common for each

share

of

the

called

reading

for

Atlas

share¬

holders—net earnings up 3£% (an
annual rate of $60 million) on a

sales

increase

figures

of

but

4%.

These

earnings

suggest

common

the

on

for the full 1955 year

of
perhaps as much as $4.50 a share
(on present capitalization), and
indicate the possibility of some
dividend boost, above the present
$2. Atlas, by custom, has deliv¬
ered around 60% of net to stock¬
holders in cash dividends.

Some¬

where around $2.50 looks possible
for this year; in which event the

yield

62 would be 4%, very
good indeed for a chemical, par¬
ticularly
with
such
impressive
at

vistas for growth.
las is selling no

times

current

Moreover, At¬
than

more

earnings

14

again,

—

definitely out of line with chemi¬
cals of comparable strength stat¬
ure

In

and

future.

market where many of the

a

chips" are now selling at
Chippendale prices, those seeking
interior

sound

strong

boxes

at

decor

for

might well

Atlas

Powder.

for the

prepares

their

take
It's

a
an

years

in

future

a

by

spending $1*4 million a year on
research, and has above $12 mil¬
lion in working capital. Atlas may
not be an explosive performer in
the market; neither is it at -all
likely to blow up in your face!

Robert W.

I04 Anqelei Stock

Exchange

•

has been elected
Gold

a

&

Son Francisco Stock Exchange

Midwest Stock Exchange

•

American Stork Exchange

Honolulu Slock Exchange • Chicago Board of Trode
ond other

Bull, Jr., partner in

the firm of Jacobs & Low, mem¬
bers New York Stock Exchange,

Co.
•

and

of

Crown

leading commodity exchanges

its

director of both

Uranium,

subsidiary,

Mining Co.

Both compan¬

ies
SAN FRANCISCO

•

PORTLAND

radiotelegraph circuit

LOS ANGEtES
•

HONOLULU




•
•

NEW YORK
AND

•

OTHER

when

to

are

development of properties for

Honolulu

CHICAGO
PACIFIC

•

BOSTON

COAST

•

CITIES

SEATTLE

steel output was only three points belGw the
reached in May.
Some declines may occur next
auto plants begin to close for model change-overs.

Initial claims by newly laid off workers for unemployment
insurance payments dropped by 52,300 to 230,300 during the week
ended July 16, the United States Department of Labor reported.
The decline in new claims was reported by 31 states and is
attributable to a tapering-off in plant shutdowns for vacation

periods, the department noted. A year ago, initial claims totaled
311,400.
'
,
■
During the week ended July 9, a total of 1,119,600 workers
were receiving state unemployment insurance payments compared
with 1,059,800 the preceding week and 1,918,800 during the week
ended July 10, 1954.
In the steel industry

ebb.

this week customer relations are at low
complaints over deliveries and allotments have
a quandary with the situation complicated

Consumer

steel sales executives in

at the door making a bid for
steel, reports "The Iron Age," national

customers knocking

their share of the available

metalworking weekly.
situation

The

has

been

building

up

over

the

The short steel strike brought it to a head.

months.

several

last

But the strike

is only part of

the story, since other contributing factors are the
heavy volume of incoming orders, excessively hot

continued

The railroad carbuilding program,

gathering a full head
time, it adds, stating that
plates, sheets and structurals already in urgent demand from other consumers. Further¬
more, it continues, railroad buying will extend well into 1956 at
a high level.
A heavy car repair schedule is adding to the problem.
Within coming orders running as much as 20% above capacity
at some of the large mills, producers are finding it hard to main¬
tain ingot production. A rate of 94% is estimated for this week,
31/2 points above actual production last week. But actual produc¬
tion has been falling behind estimates since the strike ended,
"The Iron Age" concludes.

of steam,

couldn't have

United
the
on

engaged

production

of

in

exploration

uranium,

lead, zinc and other metals.

come

at

now

a worse

into the available supply of

has cut

States

car

and truck

production

was

expected to top

200,000 mark again the past week, reflecting record output
tap at General Motors, plus 6% and 17% gains over a week

ago

at Ford Motor Co. and Chrysler Corp.
"Ward's Automotive Reports" estimated

July 18-23 manu¬
27,286 trucks or some 3.6% above last
completions of 167^473 cars and 27,668 trucks and less than
under the all-time weekly peak of 216,629 cars and trucks

facture at 174,944 cars and
week's

7%

produced in the week ended April 30, 1955.
July projections, meantime, call for 658,800 cars and 112,000
trucks, but current production is headed nearer to 676,000 and
108,000, respectively, it states.

General Motors has accounted for

most of the increase and is now

running almost 15,000 cars above

for the month. Saturday programs have aided the upturn.
The
past week six-day operations also were booked at

its goal

Chrysler division, 13 Ford, including the new
two Mercury plants.

Mahwah, N. J. site

and

Elsewhere, Studebaker was idle on Monday and Tuesday (July
18 and 19), due to wildcat strikes at South Bend, while. Kaiser,
Willys and Lincoln car output was down all week. The latter
manufacturer is still in changeover, it reports.
Truck

erecting showed some easing the past

week as Chev¬

rolet, Ford and International lowered programs slightly. Dodge
and GMC were among other builders booking modest gains.
Nevertheless,

last

week's

truck

pace

was

equivalent to

a

1,400,000-unit annual rate, while car production equalled a 9,000,000-plus annual turnout.
To date in the year the industry has built almost 4,764,243
cars
and 724,646 trucks, compared with counts a year ago of

Aided

by

operations

car-truck

3,294,770 and 615,874.
Combined
40.4%, "Ward's" pointed out.

are

up

sharp upward spurt at New York City and sus¬
throughout the rest of the country, the volume of

a

tained activity

building permits for June and for

the first half of 1955 broke all

previous records, Dun & Bradstreet, Inc., states.
The dollar value of June permits in 217 cities, including New
York,

rose

sented
and

a

an

$687,306,183. This repre¬
the $523,169,936 in June 1954,

to the unprecedented total of
increase of 31.4%

over

gain of 21.6% above the May

figure.-of $565^327,637.

City alone, building plans were filed during
estimated cost of $149,080,484. This was almosLfour

For New York

of $39,149,744, and more than twice the

at the Metropolis
housing projects
apd office buildings and the Palace of Progress to be erected on
■'the site of the Pennsylvania Railroad terminal at a cost of over
$50,000,000.
j
May volume of $65,782,634. The sharp upsurge
reflected the filing of plans for several large

Inc.,

Golden

and

Private leased

month

June with an

Memb*ri-

Exchange

of capacity,

times the year-ago sum

R. W. Bull Director

Western
New York StocL

94%

record .level

"blue

e

-

Wednesday

.

it

common

DISTRIBUTORS

Dean Witter

on

though some shortages of building materials, copper and aluminum
Reflecting the gains in industrial output and the rise in
air-conditioning, electric power production rose to a new all-time
peak the past week.
Steel production rose to the highest level in four weeks.
At

version into

row,

r

output in the period ended

weather and maintenance.

paid dividends for 21

BROKERS

industrial

continued.

elements of undervaluation. It has

INVESTMENT SERVICE

&

Overall

of last week recovered from the vacation letdown of the past two
weeks.
It remained noticeably above the level of a year ago.
It was reported that most materials were in plentiful supply, al¬

the prior issue of 4% con¬
preferred was called for
redemption, a step propelling con¬
1955)

vertible

issue that hasn't gone crazy pricewise, and still reveals discernible

Complete

Production

Business Failures

J

by top-level

share

Per

look

UNDERWRITERS,

Industry

,

a

1

down

9%

stemming

instead.

Auto

and

in

sold

was

covers

preferred).
year The final result will be 730,000
from shares of common extant, no pre¬
such an internal ammonia supply. ferred.
and
long-term
debt of
Another element in explosives
$4,706,000.
is usually glycerine.
Here Atlas
First half results for 1955 make
has an advantage since
it uses sweet
in

paragraph), is produced by Atlas,
cheaper than glycerine and does
in 1955.
the job just as well; which leads
This visible improvement and us to the second major division at
accelerated
forward
motion
in Atlas, Industrial Chemicals.
Atlas Powder stems from an ag¬
The principal product in this
gressive new management echelon division is Sorbitol, created, and
which, in the past 36 months, has still produced
solely by Atlas.
referred many major assignments Sorbitol
(which tells you little
in planning, direction, and deci¬ from its
name) is a polyhydric
sion

roll

April to Raybestos-Manhattan Inc.
Together, these lines brought in

tion, quarrying of limestone, gran¬ ing meager or no profits for some
time.
The
Revolite line,
while
ite, marble, etc., blasting for high¬
ways, railways., dams and tunnels; profitable, was not closely allied
to the main endeavors of Atlas.
and most recently in seismographMay,
Atlas
bought
ic
petroleum
exploration.
And Finally in
Parke Thompson Associates, de¬
can
you
imagine
a
"Western"
signers of boosters and fuses for
movie without a stick of dynamite

that

company,
appears

laundry

think of explosives as mostly
item, consider the varied
peacetime uses of dynamite in
coal mining and mineral extrac¬

Powder

Company

its

finishes

Price Index

its ReVolite Division, making

and

you

Trade

Commodity Price Index
Food

sold

industrial

Output

Retail

State of Trade

business to the Glidden Company;

about an attractively priced
modest price/earnings ratio.
a

carbons

Atlas

1955,

and

Electric

Carloadings

rapidly ahead.

March,

lacquer

Production

Steel

The

or

solutions.

activated

these

un-

colors

liquid

from

moving

are

smells,

tastes,

impurities

In

Enterprise Economist

plant

enlarged

an

Marshall, Texas. These carbons

at

Atlas Powder for

in

out

Thursday, July 28, 1955

silver,

Steel Output Scheduled at An Increased
This Week at 94.6% of Capacity
Steel

demarld

shows surprising vitality

Bate

for this season, says

week.
about this time of

"Steel," the metalworking weekly, the current
Usually, consumer interest lags

Continued

on

the year.
page

30

,

Number 5450

Volume 182

...

The Commercial and Financial Chronicle

(373)

control at all and

any

Europe

of

the Wrong Path

on

By ALBERT IIUNOLD
Schweizerisches Institut

|

cipline

Fur Auslanderforschung,

losophy, exerts

no

influence

if pressure groups

cludes

A

and

the

German

of

he

when

situation

the

in

to

actual-

the

about

discussion

Bundestag.

principle,

Sherman Act,

the

like

the project has undergone a series
of great and

fundamental changes.
have become more

The exceptions
and

the

more

draft

the

rule in

newest

undermined

thus

have

and

the principle of

the

and

During the whole year of 1954,
huge campaign sponsored by
the
big industrial organizations

initia¬

on

While the battle about a law to
enforce

still

is

competition

go¬

in Germany and is start¬

launched
against this law.
Professor Er¬
hard, the chief architect of the

ing

on

ing

in Switzerland, forces to re¬
are at work in other

free market economy in Germany,

European countries,

has

France,

and pressure groups was

left

never

the

considers

any

doubt that he
law as

anti-cartel

of the pillars of

one

his economic

there will be no
free market economy without free
prices. "Those who deny this,"
policy and that

said he in

conference at Godes-

a

berg in November 1953, "are de¬
stroying the very principles of the
economic

and

order

are

acting

strain trade

to

especially in
people are likely

where

the model of the European

use

coal,
iron and
steel, in order to make similar ar¬
rangements for other industrial
Community

on

products on an international or an
inter-European
basis.
It seems
that the anti-trust movement, so

people, has had

American

the

of

philosophy

in the

rooted

deeply

no influence at all on
public opinion. Euro¬
display very strange reac¬
to the American anti-trust

contrary to economic reason." He
finished this statement by saying:

practically

"Those who want me as Economic

peans

Minister
what I

have

to

accept

and with

am

me

me for
the pro¬

Opposition Active
Since this courageous

opponents

statement,

of Erhard's policy

they do not deny

When

policy.

anti-trust

States

United

the

that

hibition of the cartels."

the

European
tions

policy had any effect at all, they
attribute its success to the wealth
or
other economic differences of
the United States.
Furthermore,

the anti-trust policy
method of smooth¬

regarding anti-trust law have be¬
come very
active: by a campaign

they

in

views and

ing out business fluctuations and
that the anti-trust policy does not

charge

preserve

newly created newspapers, re¬
pamphlets sent without
all over the country, not
only the government, but also the

representatives of
the famous

as

have

cf

direct

was

of

ence

this campaign

to the Bundesround-table confer¬

approach

kanzler

the

and

fiercely attacked. The
and of a

been

result

"Freiburg School,"

a

Minister
Justice to¬

Economic

the

Minister

of

gether with the Federal Associa¬
tion of German Industry, ending
compromise loading the draft
with even more exceptions to be
in

a

tolerated.

But things turned even

when the debate in Parlia¬
began
some
weeks
ago.

worse,
ment

Apart fiom the draft-of the gov¬
ernment,
two
other
proposals
were
submitted, one from the
cartel-minded industry and con¬

actions, the members of the Par¬
liament had to deal with three

quite different proposals, based on
entirely different principles.
Swiss

countries

pean

In

States.

never

a

of

They present this

reasonable economic

order, having found a middle way
between
on

tire

cut-throat

one

competition

hand and rigorous re¬




wide

a

European and
as

thought,

to whether

price-fixing by cartels is an effi¬
or
even
desirable way of

cient

business fluctua¬
there is an in¬
clination in favor of a pattern of

smoothing

est

In

out

Europe

economy

groups

in which "the inter¬

and

competitors

their

abuse

even

power

can

by

re¬

straining trade against the inter¬
ests of the consumer; while the

interest

fundamental
United

States

the

in

upholding

lies in

a

really functioning economic order
and
a
sensitiveness
concerning
the misuse of economic power.
vince

prosperous country, with its many
cartels and trade associations, as

model for

also

American

and

a

is

difference between

the

in Switzerland.

has

market

widely understood or

There

accepted.

United

the self-regu¬

Europe

been

the

and

competitive

lating

the

on

public

the

and not in a difference in
the size or wealth between Euro¬

the

hints

restrictive

It

would be hard work even to con¬

Comparisons

argumentation

often

competition
of

by

practices

phi¬

power

the situation

finds

the

different

treatment

the

business

friends cf cartels in Germany one

In

United

a

regarding

losophy
and

free

original

lie

to

States

the
in

and

Europe
seems

government draft, Pro¬
fessor Franz Bohm, former Rector
of the Frankfort University, who
has become famous as negotiator
between Israel and the German
Government. As a result of these

abuse

Differences

S.-European

U.

that
States' policy lies in

European

United

consumers

of

interests

the

community

of
the secrets of American efficiency
can

be

considered

and economic
When

and

as

one

the

the

hand

one

other

in

a

in

do

ments,

may

lecture

a

Swiss

in the

the destruction of po¬
should compel us
to take the greatest care of a free
economic
order and to prevent
everything which would injure or
hamper the elasticity of the free
society and could diminish

the de¬

of freedom in our world."

$52 Million Issue of
Ohio

Thoroughfare

much

as
«

monetary

printed

paper

The

offers

Lehman Bros.; Halsey,
Inc.; and B. J. Van

$52,000,000 State of Ohio Major
Thoroughfare Construction bonds,

March

bearing interest rates of
2.10% and 21/4%. The

and

15,

were

from

1956 to Sept. 15, 1972,
offered to investors at

to yield from 1.25% to
2.35%, according to coupon rate
and maturity.
prices

$52,000,000
in series B bonds is the second
instalment of an authorized $500,The current issue of

000,000 in State of Ohio bonds to
be sold to provide adequate high¬
ways,

not

want

conclusion to

stant in value for

and

including the acquisition of

only

very

short periods.

his objective statistical data, Dr.
for the improvement
of currency ethics.
"Currencies have always died and will con¬
tinue to die," he says.
"Being organic in spite of their abstract
character for the average person, like human
beings they pass
Pick

maintains they do not give much hope

courage

volume, to a public
specialist to the investor—domestic

conclusion of interest, as is the entire

A

the currency
international!

ranging from
as

well

as

*

$

TOWARD A STOCKHOLDER'S SECRET BALLOT

(A Communication)
We

glad to publish, as of timely

arc

agreement or disagreement:
DEAR MR. MAY:

Soss
Rules" for improving the proxy fight
ground-rules, is most timely. The newspapers indicate this week,
for example, that no less than three important big-board corpora¬
tions are facing such contests in the near future.
I am firmly convinced that the suggestion for a secret ballot
The recent

communication to your column from Wilma

offering "New Queensberry

Continued

page

governmental subdivi¬
Not more than $125,000,000

bonds

may

be

issued

in

any
WE

calendar year,

and no bonds may
be issued after March 31, 1962.

WISH TO ANNOUNCE

OF OUR

Payment of principal and in¬
on
these bonds as well as

issued series A
solely from fees,
license taxes levied

previously

-

THE REMOVAL

MAIN OFFICE TO

terest
the

on

other

sions.
in

interest, the following

specific proposal from Lewis D. Gilbert on the proxy mechanism,
which is under Congressional examination—irrespective of our

counties

municipalities,

25 BROAD ST.,

NEW YORK 4. N.

Y.

A

bonds is to come

excises

and

NEW TELEPHONE:

BOwling green

9-7500

vehicles and fuel.
The Constitution provides that a
sufficient amount thereof shall be
by the State

set

aside

on

each

year

for

debt

Cohen, simonson a

service.

MEMBERS

Hasselbach Opens
Clarence E.
Hasselbach is engaging in a secu¬
rities business from offices at 611
ST.

Olive

LOUIS, Mo.

Street.

the

commenting further on

In

right-of-ways, and including par¬
ticipation by the Federal Gov¬
ernment,

his vast studies, to

Therefore, if those who guide their destiny could gather
to let this truth be known, instead of constantly
dispensing optimistic interpretations of monetary problems, much
of political hypocrisy would cease to exist."

of

2%,

the

currencies, which have become socialized since the in¬
stitution of controls in Germany in 1914, remain stable and con¬

effect that

the

Co.

bonds mature semi-annually

with declining purchasing power.

money

author

Ingen & Co., Inc., made public
offering on July 25 of a new issue

6%,

freedom as possible; and second, to finance
through politically expedient devices, as

the needs of government

syndicate headed by Blyth &

series B,

cold factual analysis,

first, the desire of governments to keep their
currencies without fluctuation of purchasing power and to grant

away.

Bonds Marketed
A

describes via

fundamentally

motivations:

two

by saying:, "I believe that the his¬
torical events of recent times, and

especially

book

The

ago

litical freedom,

Directory

the volume is occupied with a unique trade
directory.
The names of the heads of foreign departments of
leading banks in the free world, together with the names of
principal currency, gold, and clearing dealers of such institutions
and their cable addresses, teletype numbers, are listed, to form a
most unusual source for international trade contacts.

and

Statistical Society four years

gree

of which are really barter treaties, are included.

many

An Unusual Trade

Professor Bohm
certainly be right, when he

concluded

switch currencies, prevalent in both capitalistic and
monetary systems is described in detail.
The full

The second part of

personal liberty.

Europe,

Germany, are
conservative
tend to go to
the other extreme of being too
in
they

They

of

political

for

and

including the transactional centers of clearing currencies,
varieties dealt in with their discounts
from the official parity, are specifically reported.
Such dealings
account for at least two-thirds of the effective world trade, it is
said.
A complete list of all existing trade and payment agree¬

not be optimistic.
it seems clear
free economic system is an
basis

history

and the 224 principal switch

Europe will

that

the

both

facts,

For in the long run

essential

or

collect] vistic

further developments

outlook for

the most ex¬

exhibits

A. Wilfred May '
present status of the currency values which
are an integral determinant of the flow of inter¬
national trade. The highly complicated system of more than 1,000

the public on the
will
neglect the mainte¬
of a competitive order, the

nance

new Bible
research into

clearing

lack

financial

the

haustive

on

the

Pick's

Publisher:

new

for

Dinar,

price
revolution¬

Crossroad

and

This

*

NEW

especially

conservative.

was

of

vigilance

$35.

pp.

mental institutions,

editorial

groups

395

manual, planned as an annual
organizations, govern¬
financial research bureaus,
and individuals working in currency
trade,
contains detailed analyses of 74 of the world's
leading currencies. Starting with the Afghan¬
istan Afghani and ending with the Yugoslav
.

blow,

pressure

Pick.

service

and other European
countries have arrived at a cross¬
If

years,

Currency Report, 75 West Street, New
York 6. N. Y.)
.
;

Germany

road:

five

past

"Black

his

World

act which will undoubtedly
go down in economic history.
a

the

from

annual
to the "1955
an

Yearbook." (1955 Pick's Cur¬
Yearbook — compiled and edited by

Franz

ary

Europe At

contribution

for

rency

in

policy" when
in 1948, abol¬

single

one

educational

Pick's Currency

may

or

annual

Yearbook," which has been

feature

restoration

economy;

Erhard,

at

progress.

businessmen

this

the

"economic

Co., Inc.;

But the real difference between

tions.

the

on

ished

One

off.

his

Market

the meaning
and the world

of

made

Stuart &

Basic

switches

the

of

exist

not

control in Germany, a

middle-

and

small

the

sized business enterprises.

principle,
the other from the author of the
structed

not

is not a proper

outstanding

economic thought, such

of

school

an

argue,

author

Professor

monopolies of any kind
in this country.

a

did

even

German

the

it

Parliament
be considered as a frontal

can

attack

prohibition.

editor

better

then

of

Swiss

the

in

knew

the

who

the abuse of economic
This will soon be dis¬

cussed

Minister

much

ask

tive against
power.

to

country of the world and that

any

was

in countries like
been completely

constitutional

The

of economic policy

ignored.

a

increasing number of countries
convertibility, and the legitimization of three-cornered clearing
deals, Franz Pick, a foremost authority on currency vagaries,

ap¬

a

a

nobody

and the home market is much less

launched

in

nomic

ing some dissatisfaction with re¬
strictive trade practices of their
cartels
and
recently they even

law based

a

which

editorial

an

With the approach of an ever

passionate partisan of
mentions that be¬
the first World War, an Eco-'

fore

In addition the Swiss are show¬

the

EDUCATION ON CURRENCIES

function

and

free economy,

a

German

in

law

is

Frankfort.

at

part of the industrial production
of Switzerland is being exported

important than
Germany, has

order

public law and the adminis¬

journal,

Originally projected
on the prohibition

anti-trust

as

at Stuttgart,

Industry

referred

By a. WILFRED may

newly
created
"Monthly Review For A Free
Economy Policy," just published

greatest

the

that

fact

•

•

dif¬
regarding

philosophy

economic

peared

strictive business practices on

The

of

tration

European public opinion. Con¬
and public laxity in Europe con¬

other.

Observations.

example of this

typical

of the

on

ZURICH, Switzerland—"I think
we
are
cn
the wrong way," said
Dr.
Ludwlg Erhard, Germany's
Economic Minister, at the general
meeting o 1 the Federal Association

its

competitive dis¬
behavor is not

their

of

ference

economic system so essential for political
personal liberty is endangered.

the free

tinue,

in

governmental discipline.

over

European economist reports that while the light

European countries, especially France. Dr. Hunold main¬
the anti-trust movement, deeply rooted in American phi¬

tains

in favor

are

system

maintained that there will be all-

ning in Switzerland, forces to restrain trade are rampant in
other

realize that if

to

compel competition still continues in Germany and is begin¬

to

faire

extremest form. They do not seem

Zurich, Switzerland

Prominent

laissez

a

5

YORK

AMERICAN

—

JULY

25,

1955

STOCK

EXCHANGE

STOCK

EXCHANGE

Co.

16

C

the

Economic and Financial Aspects

United

have

would

discussion of productivity,

productivity,

as

well

manufacturers' operating margins above labor costs.

Without

its

wage
is

Ours

destined

world

a

in

need

limited

of

means

similar

this

In

So

can

have

I

of

fear

no

world, Canada

"automation" except that we may

has made

not

an

in

than

twice

population;

at

a

rate

double

to

which
population
some 30%.

worker,

will

remarkable

that

this

in

record

relative labor
ulation

twice

fast

as

is

of

as

that occurs, as

made

prices

pop¬

This

with

to

who

20

have

been

years

five

will

supporting
years.

ber

prices could become

*

A

fore

go

decades

born.

in

the

another

15

fact:

to

all

work in

have

Assuming

A

20

sires of

in

the

necessity is that of
the ever-mounting de¬

fellow human-beings
and still more, of the
good things of life. This is a matfor

next

been

our

more,

ter

of

lighter

matter

presented by Mr. Rucker be¬
Conference, Controllers In¬
America, Toronto, Canada.

productivity, not a
higher earnings, either
so1aries.
Do
workers

of

wages

paper

of

increase

third

meeting

or

understand

this

agement?

Eastern

stitute

the

self-

people

already

to

the

labor force.

great increase

no

of

output, and hence, upon
in employment propor¬

tionate

past

to

the

re¬

a

upon

growth

remem¬

the

serious

expansion

straint

babies

become

not

for

one

will

two

born

a

salable

labor

the

You will want to

this

who

For

years.

nation

a

income

exports,

shortage will continue for perhaps
15

products

portion of its na¬
dependent
upon
advancing
Pnd

large

so

tional

support

relative

manufactured

of

will likewise adyance. To

people
and
these
people
wanting
ever
more
than
their
had.

it has in the recent

past, manufacturing costs and the

more

fathers

that

A

"""ell

as

recent

ps

man¬

in

survey

the

You

Cana da

,

Rate of

Jndex Nos.

Growth

1947-49=100

313.9

107.0

1.2

$5.9

$126.5

$4.0

106.5

1.3

101.8

0.3

$4.6

I $123.2

$3.6

OUTPUT

emoloyment

5.

*

6.

.

Wages,

'

8.

period,

o/S«^®CES:
ard

statistics,

U.

S.

had
it

risen

has

,'ntlex "timbers derived by

n.a.

Data

not

SEstablhhed
Kucker

increasing

s

are

(a)

Labor's

( +

or

—

advanced

only

the

was

war

the

first

that wage rates
level of prices;

only

twice

outstanding

(Copyright 1952, The Eddy-Rucker-Nickels Company)

Output

for

of

and

Factory Payrolls.

If

your

you

firm,

own

only to divide it into

dex

into

Statistics

Labor

reliable Index of Physical

a

need

Production

of
of

Payrolls

have

you

Costs.

for

you

In¬

an

plant,

your

Index of Labor

an

When this is done for

our

is almost

the Bureau

exactly the
of Ldbor

same

Statistics

Index of Prices!

this

If

needs

a

snare

and

a

surprising,

seems

one

the most oart.

of

itself

is

war

labor cost

combination

a

of

Labor costs increase-in direct
proportion to the increase in
hourly wages, and inversely
proportionate to the improve¬

(1)

per¬

delusion.

in

ment

productivity

per

man-hour.
In other words, as we use fewer

man-hours

for government

and

Wherever this

a

bleak

stationary

or

living; the out¬
one
of sharing

near-stationary

industrial
■

output with an everlarger number of new mouths to

bodies to clothe and
Only a rise in productivity

and

and hence total

output, faster than
increase
in
population can
bring about the degree of social
tranquility necessary for stable
political svstem. There must be a
price level that is declining rela¬
the

.

can

be

chasing
living.

no

improvement

power

and

the

in

pur¬

scale

of

put

because

of

out¬

more

per

States, the wage
vanced
100.0

in

1954

135.9.

to

For the United
rate
from

Index
a

base

ad¬
of

Improved produc¬

tivity prevented that from being
entirely reflected in a price rise
of equal pronortions: productivity
rose from
100.0 to 123.2. So, fol¬
lowing

equation

above,

(1)

we

divide the advance in wage rates,
135 9

123.2,

by the productivity index,
and we forthwith find our

Index of Labor Costs

per

Unit of

product. It is 109.2. As the table
shows, this index of labor
costs is almost exactly the same
also

the B. L. S.

as

I

the

price index, which

110.3.

was

that it

that we may also dc
thing with the excellent

the

of

ratio

of

output

Bureau

So

Statistics.

of

I

have

included the corresnonding Cana¬

the vital importance

meaning and signifi¬

valuable

to

goods

"capital,"

"electrical energy,"
of
"management

of

"materials"

of

brains" *or,
the

with

latter, but

Let's take the

"labor."

crease

cer¬

we

not measuring the in¬
worker-effort or even

are

in

What we are
perhaps best de¬
of labor
This effectiveness, in

alone.

efficiency

is

measuring
scribed

that

foot-note

tainly

input of

most do,

as

"effectiveness

as

outcome of

of production, better
production, and better
teamwork in production.

tools

better

human
If

we

safely over

are

difficulty,

mediate

this im¬
con¬

are

we

We say
"greater output of goods" but how

fronted

do

another.

by

that?

measure

we

this

Does

be

to

seem

naive,

a

Well, let's

stupid question?

even

of

unit

for

measure

woolen

cotton

a

making

mill,

or

two

say

hundred different constructions of

|

of which are sold in
the gray, others are bleached, and
then printed or dyed.
Is the yard
or the pound a real measure when
one
yard may be processed only
to the point of gray goods, and
another to five-color printing?

|

fabric,

some

Ihe

difficulty

same

;

in

appears

Take

n'onti

format

I
(

shoes, for example, and let's even
say "men's Goodyear
welt. dress
shoes." A shoe manufacturer finds

(

himself

hundred

;

hundred

different

!

with

different

making fifty,
five

even

or

each

styles,

;

a

a

stitching for
with plain toes
and others not; some with cloth
linings, with leather linings, or
no linings at all.
Nor does the dif¬
amount of foxing and

the

uppers,

with

ference,
hours

labor

of

How

some

then

can

respect
to
used, end

man-

there.

measure

we

our

output simoly in "pairs" finished
and

If "pairs" is not a
relative
to
input, or pay-"

packed?
of

measure

output

man-hours

labor

input, then what is?

roll dollars

This
in

>

confronts"!

difficulty

same

in the

i

making a single product.
For the product tends always to
be imoroved bv some change of

*

us

every

industry,

even

plant

specifications. Tcdav's nylon hosiery is something quite different
from its progenitor; and today's

;

different

v.

Buick
from

or

Ford

that

of

five

is

also

even

last

year,

,

let

twenty-five years
What physical unit can we
or

use?

and the true

to be the pecu¬

shall we

©specially, how

the input of what? We can insert
in
this
blank
space,
input of

ago.

demonstrate

seems

it so

measure

p in terms that both man¬
agement and labor will under¬
stand as meaning the same thing?
Well,
we
can
begin
where
everyone begins.
Productivity .is

suppose

latter result

iricalcuably

"productivity"

we

express

same

dian

and

and

means,

the same thing to all

means

us?

of

shall

how

and

alone

money wages faster than prices,
i.e., bring about a gain in the
purchasing power of wages. This

liar

fellow

Just what is

mean.

figures published by the Canadian
increase ?n productiv¬
make possible a rise in

an

what

don't know

we

usually he doesn't know what we

ask ourselves another: what is our

the

course,

ously referred to.

is the

is,

other

the

only to ask

And,

term

methods of

or

of

long-term

Index of

have

declared purpose of
the purchasing power
In other words, the ex¬

trap

a

Only
ity can
The

Index

Bureau

since

tive to wages, i.e., prices must not
advance as fast as wages, or there

1.663%); Man¬

dividing
Board

man¬

combined, simply by
our
Federal
Reserve

or

is

1.7

Share 39.395%

.

man-hour, we trend to¬
ward
counterbalancing
the " in¬
crease in hourlv wages by a pro¬
portionate
reduction
in
hours
paid. If you want to make a note,
let me take this example from the
table of dynamic factors previ¬

look

f 1.5

60.605%; Production Value per $1 wages, $2,538. See Report,
Progress In Productivity and Pay, All U. S. Manufactures
Combined," The EddyKuckcr-Mckels
Company, Cambridge 38, Mass. 1952.




is

wages

—3.6

Share

a

trouble

turn, is the combined

cessive issue of circulating media
in order to support higher money

80.4

Rucker near-constants,

But there

national sense.
example, that
very good index

of overall labor costs for all

ufacturing

the

of wages.

110.3

available; approximately same as U. S. A.
from U. S. Census of
Manufactures, 1914-1947.

near-constants

agement

of

for

$109.2

means of

construct

can

currency,

and

2.4

later revision.

a

have found, for

the

use

"productivity."1 I did not say this
correctly; most, of us do know
what we are talking about—the

as

of

centage

—4.5

//■Projected in absence of complete data,

in

close at¬

we

we

wage

Index

an

the

feed,

Bureau

I

to it,

more

wonder

small

is

tention to "labor cost."

I

when

utilization."

high

house.

Department of Commerce, respectively.

It

what

know

ven¬

of us did
are
talking

that most

say

Costs

since

3.6

$60,251

cost."

"labor

turn away

that

123 2

$$2,516

ing that a nation's cost of manu¬
facturing is largely a matter of

is

to

Indus¬
I

Board,

Conference

tured

at a panel

ago,

National

the

same

Russia has repudiated a

4.6

—

comprise
chiefly labor costs in the extrac¬
tive industries, or in the semi¬
manufactures. So it is not surpris¬

100.0) while ihe

1954

been

know

$2.4

rla.

materials

raw

others

from

England (a) hourly wage rates and (b)
from "social units per man-hour. If we trace
ownership of enterprise" that the the thing far enough we begin to
purchasing power of wages has see emerging a more or less gen¬
eralized formula or equation, one
begun to rise.
that enables us to unify or inte¬
We don't have adequate figures
for Russia, for instance.
But we grate the whole process and say:

125.1

—

as

factory
to

has

to

began to

5.6

wages;

risen

since the

5.2

numbers except those marked (*) from Canadian

rPreliminary, subject to

American

instructive.
year

138.2

$39,749%

Even the

buy

"but why not,
to 110%.
what
else
wou'd
you
exppct?"
In Great Britain, in the same And, upon reflection, we realize
period or nearly so, the 1954 In¬ that
basically
our
methods
of
dex of weekly wages and that of price estimating trace back in es¬
weekly prices both stood at 136% sence to percentage mark-ups on
(1948 jas 100.0). But, and this is labor cost of our products, for

135.9

PRICES, manufactures
112.6
Prices, relative to hourly wages *79.95
11. RUCKER near-constants:
§
Labor's share of production.__
n.a.
Management's shr. of product'ni
q.a.

in

part,

Its Measurement

United States figures, it turns out
that the Index of Factory Labor

112%. .In the

index

8.4

9.

Production value per
$1

1949, whereas the price

only to

7.1

10.

Li

of

*$112.6

—purchasing power
Labor costs per unit

/

index for manufactured goods has

140.8

hourly

average

.

for
yourselves.
In
Canada, for example, since 1949
the wage-rate index has risen to

150.0

7.

ahead of wages.

test the truth of this

rise in the scale of

1.6

$133.3
*$125.1

Man-hours

of

tendency

wobbles, on a base of
declining industrial pro¬
ductivity. There is no hope for a

107.5

MANUFACTURING

country,

1.7%

110.2

2.8%

deed the
overwhelming part of our operat¬
ing costs represent "wages and
greater

—

years

of

meeting

about

Ihe

10

Some

not

is this:

rests,

Growth

force

a

it

stable

Rate of

1949—100

4.

the

run

may

140%

Briefly,

meaning.

meaning of

clear

single

a

productivity; we talk about it but
we
often
mean
different things
and we keenly miss the necessary
means
of measuring it.

trial

But there is also

stable and "weak" government. It
is unstable and weak because it

>

Index N«'s.

1.

the*

practice pas gone to extremes,
there one invariably finds an un¬

United SIta*es

,

more

observation

risen

business

a

our

system of

greater

prices to'

The

it.

communistic

or

wage-earner alike.

All Manufactures Combined—1954
Canada and the United States
Compared

3.

behind

industrial

It

2. Labor

falls

or

socialistic

TABLE I

Dynamic Factors in Productivity

/

manufacture

Conversely, it is a character¬
of
public enterprise na¬
tions, socialistic and semi-social¬
istic, that the index of average
hourly earnings . either just
keeps pace with the price index,.

(1947-49

is

necessity

of

*

istic

136%

second

pri¬

the social meaning

see

that controllers pay such

price

almost
labor force

must

automatic

even

index

of

growing
your

and

of

prices.

have

serious

abortage. Your

worker

output

the

have

remarks, and from
table, it is easy

of productivity.

we

average hourly earn¬
ings always tends to rise faster

than

enough to

salaries."

of

rates

more

have

time

a

characteristic

a

labor

output,

this

in

data

Here is

enterprise nations that the

avoiding an advance in the level
of hourly wage-rates in excess of
the gain in productivity.
When

good

as

even

you

a

has been

—every

again

as

productivity, must
a high level and
by more capital

or

investment

A

about 20 years; half
in 10 years. But it

that

equipment.

rate, Canadians will be
twice as good as now in

living

economy

means

increased

even

this

At

the

to

be maintained at

y^ars

during
grow

oer

in less

15

than

supporting more

be

This

whole.

your/

output

Allen W. Rucker

tribution

fast

enough

will

worker

each

that

means

people, either directly in his own
family or indirectly in his;„con-

the growth

of

This

noted.

fast

as

cer¬

especially, is growing much faster
than
your
labor force, as just

output

as

countries face

our

inespacable necessities. The
first is that our populations, yours

manu¬

more

of

tain

facturers have

lifted

it. This is no
For instance:

phrase.

Both

the

past five years.
Here

have enough of

idle

outstanding
record

is

index

and

industrial

Productivity

these

From

the

witnoui

nations

the rule:

We have a
the United

get.
problem in

States.

supplying

them.

communistic

migration to Canada, you
all
the
productivity
per

worker you

wants, but always

goods

further information!

probably many reasons, but I sus¬
pect that most of them stem from
one central deficiency.
We do not

wage-

countries,

population

But, why is not more use made
these vital facts?
There are

in any economy.

suppose

any

respective
our two

prices, and the purchasing power
of labor. For those, you may wish
to know, are the dynamic factors

with

itself

and

It

•with unlimited

pro¬

prices.
We
could identify the private enter¬
prise nations from ihe socialistic

vate

haps forever to be full of people
with

manufactured

productivity to balance

net

figures,

own

the

growth,

each gov¬
ernment in the world today sub¬
mitted
to
us
two
indexes, that
of its average hourly earnings in
manufacturing
and
that
of
its

increases.

per¬

identifying

shows

also

rate indexes for

with

is

me

of

table

same

and

applies both in busines,
also socially and politically.

ing

and

manufacturing of Canada

the United States. This

force

illustrate:

Let

in

productivity. This paean*

of

cance

weapon" of

and

am

along

against higher
a
matter of

as

private capi¬
private enterprise.
appending to this talk a
table comparing the productivity
I

to

line with

Holds it

value.
Cites uses of proper measure of productivity, and sets down
as
a
method to be employed in collective bargaining:
(1)
determination of your standard labor share of production;
(2) make comparison of present year's score with it; and
then, (3) add in the union's demand, and thus determine what
increase will result therefrom in labor's share, and (4) thus
find the required increase in price or

of

ductivity.

to labor a nearly constant share of its production

pay

some¬

"secret

talism

buying

failure

our

matter

It

man¬

keeping wages in

firm, indeed, which does not tend continuously to

rare

a

in
be

We

in

this

wages.

money

the factors in determining

as

of

power

actually

may

of wages,

power

mean¬

ing, its measurement, and its industrial future. Lists the dyna¬
mic factors in

increase

an

wages.

backward

what

emphasize

its

covers

in

agement

Management Consultants, Cambridge, Mass.

Mr. Rucker, in his

first

purchasing

increase

Eddy-Kuckcr-Nickels Company

The

the

and

present wages, iri preference to an

By ALLEN W. RUCKER*

President,

of

68%

72%
of
employees, declaring they

women

in

found

States

employees,

men

Of Productivity Measurement

is

July 28, 1955

The Commercial and Financial Chronicle... Thursday,

(374)

figures

in

the

table

When

it

is

this,

we

come

hard
a

as

right down to it,
impossible

to be

satisfactory

Continued
however,

is sirrn'y

"physical"

re¬

ferred to.
Ail

so

find

to

to

1

on

page

24

Rurker, Allen W., "What Is Produc-.
tivity?" National Industrial Conference,
Board, New York, February, 1946.

;

Volume 182

Number 5450

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Maturities, Rates, Yields and PricesScale

Scale

Scale

Scale

Scale

Scale

Scale

Scale

Scale

Scale

Scale

Scale

Scale

Scale

A

B

C-l.C-2

A

B

C-l.C-2

A

B

C-l.C-2

A

B

B

C-l

C-2

2%%

2V2%

25/8%

2%%

2% %

25/g%

2'/2%

2y2%

25/g%

2y2%

2 y2%

2%%

2s/g% !

23/4%

i

'•

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2%%'

Scale
D

1.20%

1.20%

1965

1.90%

1975

2.25%

2.30%

2.35%

1984

2.45%

@ 100

2.50%

2.55%

2.55%

2.60%

1957

1.35%

1.35

1.35

1966

1.95

1.95

1.95

4976

2.30

2.30

2.35

1985

2.45

© 100

2.50

2.55

2.55

2.60

1958

.1.45

1.45

1.45

1967

2.00

2.00

2.00

1977

2.30

2.35

2.40

1986

2.45

© 100

2.50

2.55

2.55

1959

1.55

1.55

1.55

1968

2.05

2.05

2.05

1978

2.30

2.35

2.40

1987

@ 100

2.55

2.60

2.60

2.40

2.45

1988

© 100

2,60

1989

© 100

<2.55

2-SSt
2.55f

2.60
2.60

2.60

2.65f
2.65!

1990

© 100

2.55

2.55f

2.60

2.60

2.65!

2.55

2.60

© 100

2.65

1956

.

—

...

v

1.90%

1.90%

2.55%
2.55

1.65
1.70

1.70

1962

1.75

1.75

1.75

1963

1.80

1.80

1.85

1.85

S

2.10

2.10

1979

2.35

2.15

2.15

2.15

1980

2.35

a

2.40

2.20

2.20

2.20

1981

2.40

?

2.45

2.45 *
2.50

2.45

2.50

1991

1.85

2.45

2.50

1992

2.55

2.60

1993

2.55

2.60

2.55

2.60

2.55

2.60

1973

2.25

1982

2.40

2.25

2.25

2.30

1983

2.40

2.25

1972

1.80

1964

'■*

2.10

1971

1.65

1.70

1970

1995

1.65

1961

1969

1994

1960

2.25

2.30

2.20

2.20
•

1974

1996

.

,

'

2.60f

2.60

2.65
.

—

© 100

2.65

—

© 100

2.65

2.65+
2.65+
2.65f

@ 100

2.65

2.65+

© 100

2.65

—

—

© 100

—

—

<

—

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being offered, subject to award, when, as and if issued and received by us, and subject to

The First Boston Corporation

BIyth & Co., Inc.

Alex. Brown & Sons

Estabrook & Co.

Coffin & Burr

Reynolds & Co.

A. G. Becker & Co.

Braun,Bosworth&Co.

Incorporated

Schoellkopf, Hutton & Pomeroy, Inc.

R. S. Dickson & Company

Incorporated

Byrne and Phelps

undersigned and other Underwriters

Harriman Ripley & Co.
Incorporated

as are

registered dealers in this State.

White, Weld & Co.

Wood, Struthers & Co.

Union Securities Corporation
F. S. Moseley & Co,

First of Michigan Corporation

American Securities Corporation

Gregory & Sons

Hirsch& Co.

«

Bacon, Stevenson & Co.

Baxter, Williams & Co.

Wm.E. Pollock & Co., Inc.

Dean Witter At Co.

Geo. B. Gibbons & Company

Kean,TayIor & Co.

Hallgarten & Co.

Incorporated

Courts & Co.

F. W. Craigie & Co.

Francis I. du Pont & Co.

Eldredge & Co.

Incorporated

E. F. Hutton &.

Company

W. E. Hutton & Co.

McDonald & Company

Incorporated

Laurence M. Marks & Co.

Folger, Nolan-W. B. Hibbs & Co., Inc.
The Ohio Company

Rand & Co.

*2*




Bear, Stearns & Co.

Lee Higginson Corporation

Hornblower & Weeks

Hemphill, Noyes & Co.

R. W. Pressprich & Co,

Shields & Company

Smith, Barney & Co.

.

L. F. Rothschild & Co.

Clark, Dodge & Co.

stated in the Offering Prospectus.

as

respect to each issue, by bond counsel to the Underwriters. The

Stone & Webster Securities Corporation

Ira Haupt & Co.

Incorporated

Paine, Webber, Jackson & Curtis

Goldman, Sachs & Co.

Merrill Lynch, Pierce, Fenner & Beane

Equitable Securities Corporation

Incorporated

J. C. Bradford & Co.

and thereafter, at the times and call prices,

approval of legality, with

offering is not made hereby, but only by means of the Offering Prospectus, copies of which may be obtained from such of the

Lehman Brothers

Helps, Fenn & Co.

are

callable at Par.

F. S. Smithers & Co.

Stern Brothers & Co.

Stroud & Company
Incorporated

Tucker, Anthony & Co.

Chas. E. Weigold & Co.
Incorporated

Incorporated

Roosevelt & Cross
Incorporated

4
:1

8

Financial Chronicle...Thursday, July 28, *955

The Commercial and

(376)

and

memorandum

a

have

Continental Illinois National Bank &

on

'

Trust

15

Singer, Bean &
Mackie, Inc., 40 Exchange Place, New York 5, N. Y.
Industrial Rayon—Bulletin—Thomson & McKinnon, 11 Wall
Street, New York 5, N. Y.
Light

Kentucky

understood that the firms mentioned will he pleased
to send interested parties the following literature:

Bond

Review—Now booklet—Harris, Upham & Co.,
New York 5, N. Y.

ton

(revised)—Describing and locating

an

Drop

Chas.

Pfizer

Stores,

Scovill

ing 343 industries, 77 utilities, 40 banks, 44 insurance com¬

—New

the

sions

of

Bank

Outlook,

Ltd.,
and

''Nomura's

issue

same

Rates,

Beacon"

of

Chemical

Mitsui
Co.,

Chemical

Ltd.,

Tokyo

Standard
Broad

Lows in Japanese Industries—In

&

Co.,

the

120

9,

Douglass

Francisco

Co.—New

Boston

4,

&

and

Co.,

views—Lerner

&

Co.,

Cohu

—

&

Also available is

Co.,

an

Memorandum

—

—

Hirsch

&

Drug

25

Inc.—Memorandum—Shearon,

Spring

Street,

Los

Angeles

Hammill

&

current issue

test

come

mar¬

up

its

of

Co.

J. Barth Adds to Staff

Co.,
640

(Special to The Financial Chronicle)

R.

14,

Staats

&

SAN

Calif.

FRANCISCO,

Calif.—

Gregory Robinson has been added
to

brochure

McCoy & Willard, 30 Federal Street, Boston
10, Mass.
F. W. Woolworth
Co.—Analysis—Parrish & Co., 40 Wall Street,
New York 5, N. Y.

Ltd.,

hence the

will

for
position when
Pacific
Telephone & Telegraph
Co., puts its $67,000,000 of longterm bonds up for bids. It should
be moving into registration shortly
and the prospective bidding date
is now seen as Aug. 23.

Wall

Co.,

month

a

probably

real

a

analysis of

Uranium Corporation of America—New
illustrated

Co.,

ket

Com¬

1

yield 3.30% the
a small

on

About

Corporation—Analysis

Corp.

spurred general-iiTterest in

the bid side being
quoted 10014 bid 101 offered.

Post

10

out
de¬

business.

premium

Ltd.—Analysis—Bache & Co., 36 Wall Street,

Factors

Corp.
went
institutional

issue quickly commanded

Inc.,

Calif.

Mass.

Y.

good

as

Street, New York 4, N. Y.

South

Electric Power Co., Ltd.

Tokyo

New Highs and

Rush

a

Priced at 100 to

Street, New York 5, N. Y.
Company— Analysis —William

Stuart

discus¬

Co.,

in

Container

quickly

5, N. Y.

Wall

14

Also

Industry
Gas

San

Street, New York 5, N.

Nomura

are

McDonnell

Avien.

Ill

analysis of Business Results

and

analyses

and

Sumitomo

Investors

Trust

Rand

Sterling
—

Street,

Cement

York

Sperry

ple charts, complete stock list and folder.
Opportunities in Japan—Circular—Yamaichi Secu¬

Analysis

—

Ltd.—Analysis—Stern,

Square.

Selection

Investment

—

wares.

Out

i

mand

Memorandum

—

Manufacturing Company—Analysis—Granger &
111 Broadway, New York 6, N. Y.

pany,

years' weekly prices and annual ranges
$8.75 per copy.
From 1949—O T C Publishing Co., 14-F
Elm Street, Morristown, N. J.
Also available are free sam¬
two

Co., Ltd., 61 Broadway, New York 6, N. Y.

Co.

&

California

Office

Broadway, New York 6, N. Y.
Japanese-U.
S.
Taxation
Conventions

their

&

Rayonier.

Riverside

6, N. Y.
High Gain Situations—500 over-the-counter stock charts cover¬

Co., Ltd.. 111 Broadway, New York 7, N. Y.
Utilities Co.—Analysis—Ira Haupt & Co.,

commercial

away

with

Broadway, New York 5, N. Y.

West 44th Street, New York

Southern

were

of

try and

Copper—Review—Ira Haupt & Co., Ill Broadway, New York

in

came

Upham & Co.,
Broadway, New York 5, N. Y.
Also available is a dis¬
of Southern Pacific, Steel Companies, Paper Indus¬

465

with

issue

new

banks, which
with the small end of
the package, $20,595,000, turned in
a similarly creditable performance

York

Richman

the

for subscription;.

opened

120 Broadway, New York 5, N. Y.

Forging Company—Analysis—Bond,

of

day after the books

a

Yesterday's offering cf $35,000,000 of 25-year 3.30% debentures

Purity

Securities

New

—

able

was

120

Letter—Fortnightly review of the Canadian Securi¬

ties Market—Newling & Co., 65

rities

Analysis

—

cussion

36, N. Y.

Iowa

Company

group

Co., 37 Wall Street, New York 5, N. Y.
Supply Company—Analysis—Harris,

Industry—Analysis—Nesbitt, Thom¬
Company Limited, 355 St. James Street, West,
Montreal, Que., Canada.

panies

Rubber

&

National

and

Canadian

Tire

dealer

$121,400,000

within

And

Moore

Co., 1033 Thirtieth Street, N. W., Washing¬

Canada's Pulp and Paper
son

of

Bankers

Utilities Co.—Analysis—Edward A. Purcell
Co., 50 Broadway, New York 4, N. Y.
Also available is
analysis of Gunnar Mines Ltd.

&

C.

7, D.

The

—

Montana-Dakota

atomic activity of 97 different companies—Atomic Develop¬
ment Securities

Analysis

-r-

Co., Inc., Kentucky Home Life Building, Louisville 2,

Hanseatic Corporation,

120 Broadway,

Atomic Map, in four colors

Inc.

Aggregates,

the

But

to clear away its entire take-down

Ky.
Mansfield

Atomic Energy

given sentiment quite a lift.
a week earlier many houses
were a bit on the wary side, tak¬
ing the tax-exempt market gen¬
erally.
Only

Chicaga.

Exchange Place, Jersey City 2, N. J.
Coast Leaseholds, Inc. — Analysis —

Gulf

Recommendations & Literature
is

of

Empire Petroleum Company—Analysis—Julius Maier Co., Inc.,

Dealer-Broker Investment
It

Co.

the

404

staff

&

Co.,

Montgomery Street, members
the

of

Barth

J.

of

cisco

New

and

York

Stock

San

Fran¬

Exchanges.

of

"Weekly Stock Bulletin"—The Nikko Securities Co., Ltd.,
6, 1-chome, Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.
Also
New

available

York

City

is

an

But

analysis of Nippon Toki Kaisha.

Stocks—Comparison and analysis of 13
City Bank stocks for the second quarter of 1955—

New York

to

direction

in the National Quotation Bureau

and

market

performance over
Quotation Bureau, Inc., 46

National
York

4,

Petroleum

N.

Averages, both as to
13-year period —
Front Street, New

tempt

a

shown
With the country

Bank,

the

Department, 18 Pine Street, New York 15, N. Y.
Steel Stocks—Analysis—Osborne &
Thurlow, 39 Broadway,
New York 6, N. Y.

the

come

Tax

concerned.

Chase

Manhattan

Petroleum

Exempts—Analysis of pattern of interest
Ryan, Inc.,"70 Pine Street, New York 5, N. Y.
*

*

rates—Park,

American

Alloys Corporation—Analvsis—S. D. Fuller & Co.,
Broadway, New York 6, N. Y.
Also available is an
analysis of Schmieg Industries, Inc. and reports on Holiday
Plastics, Inc. and Orndio Industries, Inc.
Radiator

Analysis — J.
Broadway, New York 6, N. Y.

Anchor

Precision

—

Wiliston

York

5, N.

&

Co.,

115

New

York

Gleich

Co.,

40

5, N. Y.
Also in the same bulletin are data
Mills and Admiral
Corporation.
Eclipse Company —
Analysis — H. Hentz & Co.,
Beaver Street, New York
4, N. Y.
Also available is
analvsis of Bud
&

porated, 44 Wall Street, New York
5, N. Y.

Co.,

Incor-

Ea,S7ew.iVti'(ities; Associates—Study—Kidder, Peabody &
tailed aPPraisal Ne.w„York 5' N- Y. Also available is a
ed LnVHf\ Of
Southwestern
Public

Service

Co.,

de-

Company

You

ket

until

in

a

that

in

the

of

way

connected with California In¬

now

Coombs Adds Three

new

are

such

as

the

ated

a ready mar¬
particularly if

stock

common

the

Ltd.

other

brought out

a

This

preferred

and

Inc.,

Products

Join

of

subsidiary.

a

absorb

prepared

to

for

without

the

debentures not

the

of

form

as

cloud

a

debt

new

ahead

weeks

two

much

as

in

offerings,

for

equities also.

Since

this
is

animation
at

this

their

more

season,

of
or

suspended
less

are

operating

abbreviated

not
as

back

which

and

greatly

they

staffs cut

are

down

by vacations.

Chandler, Eric M. DeLacey and

Charles Prince

of

Uoratrot Securities

either

sell

to

the

stock

SACRAMENTO, Calif.

Aluminum Co.

Bankers brought
shares

to

underwriters
deal.

well

Priced
under

a

with

participating
at

in

the

each

have

had

part,

the

participant

would

some

celerity

of

the

deal.

Crowell-Collier Publishing

SAN

<

FRANCISCO, Calif.—
Gibson has joined the

Thomas P.

staff of First California Company,
300

Montgomery Street, members
the

San

—

Sold

—

misgivings the mu¬
nicipal market may have had, the

DEPENDABLE MARKETS

rre

HA

2-

2400

Members: N.

74

Y.

Security Dealers

Association

Trinity Place, New York 6, N. Y.




now

& Company, 215

376

BOwling
Head

Green 9-0186

Office

Louis

West Seventh St.

Calif.—Roy

is now with Hannaford

Talbot, 519 California Street.

(Special to The Financial Chronicle)

SAN

I
Broadway, New York 6, N. Y.
Tel.:

—

Littlefield

Three With H. L. Jamieson

without obligation
61

V.

FRANCISCO,

A. Adams

Japanese Stocks and Bonds

1-

Calif.

John

(Special to The Financial Chronicle)

Material and Consultation

NY

and

with Samuel B. Franklin

Joins Hannaford Talbot

Broker and Dealer

& Co.

Ex¬

(Special to The Financial Chronicle)

N.A.S.D.

on

Truster, Singer

Stock

Samuel Franklin Adds

shining success of the most recent
offering of housing bonds must

SAN

Quoted

Francisco

change.

Whatever

&

Bought

Incor¬

(Special to The Financial Chronicle)

of

Housing Bonds Go

Investors

With First California

the offering

1,530 shares
to sell which explains, at least in
only

Frank

Harrison.

which was
recent market quota¬

tions, it met with quick response.
group,

—

connected

porated, 1716 Broadwav. He was
formerly
with
Richard
A.

123

103%

If spread evenly over

become

Financial

with

block of 178,-

market,

has

Dole

R.

America.

100

Co., 210

With Financial Inv.

©o., Xtd.
Member

connected

(Special to The Financial Chronicle)

LOS ANGELES,

& Dealers—

Chesapeake Industries

now

West Seventh Street.

up

Eiseman

Banks, Brokers

are

the

Pittsburgh interests a
giving them 10 years

of that company or

of

order

normal

underwriters

distributors

concerned,
with

state

divestment
to

while
in

Dempsey-Tet
?geler

LOS ANGELES. Calif.—Edward
O.

mar¬

sale involved stock tied

the

courts

undertaking
any

in

the

Company,

(Special to The Financial Chronicle)

was

day
when
block of the
of

close

Coombs and

with

and

affili¬

now

with Dempsey-Tegeler &

The

of

Co.,

banking group will "standby"
this

on

preferred

the

Dairy

after the

McGraw
are

602 West Sixth Street.

ket.

own

T.

Robert

Maurice E. Miller

of the top-notch variety

Aluminium

bankers

LOS ANGELES. Calif.—John S.

Maher,

Secondary

equities,

they

(Special to The Financial Chronicle)

mood.

a

still find

can

for

stock

M

York'4,C?rYna'ySiS~DreyfUS a"d C°" 50 Broadway>

And

Kowal, Floyd E. Mills, John L.
Mossner, Peter Plant, Hanley E.
Rogers and Robert L. Weil are

financing.
Investors
have
they are not currently in

proved

and for that matter the same goes

Company.

from

long-

is

Fast

of debentures to holders of its

is

,TS"W;?alTth Ed'son ComDany—Analysis—A. C. Allyn & Co.,
AS, of Monterey Oil
e,Steti Chicago 3, 111, Also available is
analysis

New

stands.

horizon

Company.

(

schedule

an

on

Prlsbury
Buffalo

an

single

a

60

Y

Blair

but

taken
up
in the prior exchange offer
to preferred holders which is ex¬
pected to begin around Aug. 9
and run to Aug. 30.
Aside from that particular op¬
eration, however, the corporate

Nordeman & Co., 52 Wall Street,

far

the

established

too receptive

Inc.'s exchange offer of $20,000,000

A

Analysis

is

That involves Foremost Dairies,

Y.

Company—Analysis—Laird, Bissell & Meeds,
120
Broadway, New York 5, N. Y. A
Bonanza Oil &
Mine—Report—L. D. Friedman & Co.. Inc., 52
Rroadvav. New YorV 4. N.

complete halt
end is

a

it

has

corporate

There

prospective

Powder

Bristol-Myers—Data—Bruns,

the

as

market

bond

virtually to

Philadelphia

Corporation—Analysis—D.

Exchange Place, New
Atlas

R.

issue

new

insofar

39

American

right down in

trough of the vacation season

piece of business in sight in the
next
two
weeks
provided
the

*

is

much

debt

Y.

Situation—Review—The

is

where

ANGELES, Calif.—John H.

Bryant, Jr., Robert D. Burns, John

unlikely that cor¬ vestors, 3924 Wilshire Boulevard.
porations will be disposed to at¬

Averages and the 35 over-the-counter industrial stocks

yield

is

concerned.

base

new

still

that

is

end

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

(Special to The Financial Chronicle)

LOS

any

market

ury

settled,

Weissenborn, Inc., 24 Commerce Street, Newark 2, N. J.

used

generate

cheer in invest¬
ment banking circles. The Treas¬

Laird, Bissell & Meads. 120 Broadway, New York 5, N. Y.
Northern
New
Jersey Banks—Current
report—Parker and

Jones

the corporate market's be¬
has not been of a nature

havior

Bank

Calif. Investors Add

Tokyo

fred

DEMPSEY - TEGELE8 i CO

E.

FRANCISCO, Calif. —Al¬
Gaumer. Ada IT. R. Page

and George

nected
Tnn

with

Pnec

A. Page
H.

L.

PnildinO'

are now con¬

Jamieson

Co.,

Number 5450

Volume 132

...

The Commercial and Financial Chronicle

(377)

cipal

Resumption of Capital Investment in Canada

Review," the Bank of Nova Scotia
calls

attention

to

a

renewed

ex¬

investment in
Canada, following the decline ex¬
Commenting
perienced in 1954.
on this, the circular states:
pansion

cf capital

"In part because of

the general

Improvement in export prospects
during the past year, the volume

in

capital investment expeditures
1955

is

to

expected

con¬

run

siderably ahead of 1954. Expendi¬
tures

last

year

showed

the

and

war,

would bring the level of cap¬

year

ital

spending back fairly close to
peak reached in 1953. The re¬

the

duction

in

1954

in

outlays
equipment.

also

mainly

and

machinery

for

there was
appreciable falling-off in

an

However,

non-residential

private
and

ernment

construc¬

a drop
in Federal Gov¬
expenditures for defense

construction. "

than

occurred

offset

The

the

latter

continued

Kitimat, but what they
they appear to more
up in number."

expansion and modernization pro¬
grams of a variety of manufactur¬

than

make

ing

For

decline.

the

current

industries

Finally,

moderate addition to Federal Gov¬

anticipated increase in the current

tion
of

the

at
in

the official forecast is for a
increase
in
private
non-residential
construction,
a

expenditures in 1955 is expected to run
considerably ahead of 1954 and be close to the peak of /19S3.
since

stage
lack

substantial

of capital investment

decline

chemicals,

paper,

electric power and railways.

year,

Monthly Review of the Bank of Nova Scotia reports volume

"Monthly

metals, pulp and

.,

The

government
some

In the June issue of its

so
that total
expenditures showed

governments

more

rise

in

the first outlays by provincial and muni-

income

ernment

that

outlays for defense con¬
and

struction
continued

in

and

public works,

ments.

and

by

construction

public

number

projects

source

tion

in

*

'

•

•

There

'

,

>:

reached

•

■'

were

\

■

'

'

„

•

declined

(Special to The Financial Chronicle)

OAKLAND, Calif. — Ian A.
Bremner, Yen Jang and Walter
B.

by

Mason

United
1419

for

basic

the

re¬

pre-1954
and

source

with

Inc.,

commodities

enthusiasm
industrial

With Wagensellcr & Durst

deal of
for re¬

(Special to The Financial CrthONictE)

develop¬

LOS

ANGELES, Calif.

The

has
gradually reappeared.
projects'initiated in the past

JJ Zitnik

this.

few

months

Durst,

ment

have

affiliated

Securities,

now

Broadway.

a

new

on

are

Western

not, of course;

is

with

Inc.,

626

South

been

decreases

related

to

of

the

gigantic

of Quebec-Labrador

base

proportions

Stock

Exchange.

$52,000,000

State of Ohio
6%, 2%, 2.10% and 2%%
Major Thoroughfare Construction Bonds, Series B
(Payable from Selective Excise Taxes)
Due March 15 and

August 1, 1955

September 15,

as

shown below

Principal and semi-annual interest {March 15 and September 15, first coupon payment date March 15, 1956) payable in Columbus, Ohio; New York,
New York; Chicago, Illinois; or Cleveland, Ohio. Coupon bonds in the denomination of $1,000, registerable as to principal only or as to both principal
and interest. Bonds initially issued as coupon bonds or registered bonds may be exchanged forfully registered bonds of the same maturity, or1coupon
londs, as the case may be, without expense to the holder thereof. Subsequent exchanges or registrations shall be at the expense of the holder thereof.

said

Court Decisions

the opinion of counsel, from Federal Income Taxes under existing Laws, Regulations and

Exempt, in the opinion of counsel, from all taxes levied by the State of Ohio or any
These

taxing subdivision or district thereof

Bonds, to be issued under the provisions of Section 2c of Article VIII of the Constitution of Ohio, as adopted at the general election
November 3, 1953, for the purpose of providing moneys for acquisition of rights-of-way for construction and reconstruction

state on

in
of

highways on the state highway system, will be, in the opinion of counsel, together with Series A Bonds and all other bonds hereafter issued under
authority of said Section 2c, payable solely from moneys derived from fees, excises or license taxes levied by the State of Ohio relating to regis¬
tration, operation or use of vehicles on public highways or to fuels used for propelling such vehicles and provision has been made by law and by
the Constitution of the State of Ohio for the setting aside of a sufficient amount of such fees, excises or license taxes each year to pay the interest
on and the principal of the bonds becoming due each year, without other appropriations.
Yield

Yield

$1,525,000
1,525,000
1,525,000
1,525,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000

Amount

Yield

Due

Kate

Amount

March 15, 1956

1.25%

15, 1956
March 15, 1957

1.30

15, 1957

1.50

March 15, 1958

1.60

15, 1958

1.65

Sept.

Sept.

Sept.

1.40

March 15, 1959

1.75

15, 1960

1.85

March 15, 1961

2.10
2.10
2.10
2.10
2.10
2i/4

1.70

15, 1959
March 15, 1960

2%
2
2
2
2
2.10

1,530,000
1,530,000

6%
6

1.90

Sept.

Sept.

1.80

1,530,000
1,530,000
1,530,000
1,530,000

Due

Rate

$1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000

Sept.
March
Sept.
March
Sept.
March
Sept.
March
Sept.
March
Sept.
March

15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,

or

1961
1962
1962
1963
1963
1964
1964
1965
1965
1966
1966
1967

Amount

1.95%
100
100
2.05
2.05
100
100
2.15
2.15
2.20
2.20
100

$1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000
1,530,000

2i/4%
2%
2i/4
2%
2%
2%
2i/4
2%
2%
2%
2i/4

Due

Rate

Price

(Accrued interest to be added)

Sept.
March
Sept.
March
Sept.
March
Sept.
March
Sept.
March
Sept.

15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,

or

100
100
100
2.30%
2.30
2.30
2.30
2.35
2.35
1972 2.35
1972 2.35

1968
1968
1969
1969
1970
1970
1971
1971

~

are offered when, as and if issued and received by us, subject to the approval of legality by the Attorney General of the State of Ohio and by Messrs. Squire, Sanders &
Cleveland, Ohio. In any State in which this announcement is circulated, the offering is made by only such of the undersigned as are licensed dealers in such State. This
announcement does not constitute an offering to sell these securities in any State to any person to whom it is unlawful to make such an offering in such State.

Corporation

The First Boston

B. J. Van

Halsey, Stuart & Co. Inc.

Lehman Brothers

Smith, Barney & Co.

Harriman Ripley & Co.

Price

1967

'

These bonds

Blyth & Co., Inc.

Glore, Forgan & Co.

Dempsey

Ingen & Co. Inc.

Goldman, Sachs & Co.

Incorporated

The Ohio Company

Braun, Bosworth & Co.

McDonald & Company

A. C. Allyn and

Equitable Securities Corporation

Company

Company

Blair & Co.
Incorporated

Incorporated

Incorporated

R. S. Dickson &

White, Weld & Co.

Phelps, Fenn & Co.

Merrill Lynch, Pierce, Fenner & Beane

Kidder, Peabody & Co.

F. S. Moseley & Co.

Hornblower & Weeks

Incorporated

Paine, Webber, Jackson & Curtis
.

Stone & Webster Securities

Bache&Co.
Lee

William Blair & Company

Higginson Corporation




Prescott & Company
Dean Witter & Co.

Corporation

Estabrook&Co.

Reynolds & Co.

Louisr
&

Spring

Street, members of the Los Angeles

and the first

July 25,1955

Interest Exempt, in

—

Wagenseller

i

substantial

expenditures

in

and

initiated
compensated for

machinery

markets

comple¬

1964

been

since last summer, a good

large

not

were

that
•

very

and

1953

projects
scale

of

had

With United Western

in

fact

"With the improvement in world

to decline somewhat further.

"A

farm

on

expected

are

farmers

the

and

size

end.

drop

roughly one-third.

govern¬

Outlays for machinery and

equipment, however,

grain

an

the

of

adding
heavily to their capital equip¬
ment for some years, expenditures

growth both in housing

provincial and municipal

to

came

because
from

New Issue

Dated

9

R. W.

Alex. Brown & Sons

First of Michigan Corporation

F. S. Smithers & Co.

Shields & Company

Pressprich & Co.

The Weil, Roth & Irving Co.

Ira Haupt&Co.

Stranahan, Harris & Company

W.E.Hutton&Co.

Ryan, Sutherland & Co.

Financial Chronicle... Thursday, July 28, 1955

The Commercial and

(378)

10

become

Atomic Energy Can Contribute
To European Stability
U. S. Congressman from New

York

Atomic Energy

Member, Joint Committee oil

electric

question

symposium

this

be

can

simply defined — if not no simply
answered.
It is the twin prob¬
continue

Europe

free

how

of

lem

can

to

fitay its critirole

cal

in

fend the com¬
mon

of

cause

the

facts.

against armed
agg r

while

at

same

t h e

time

en-

expanding
economy—to¬
the end

S.

W.

Colo

of establishing

allegiance of

which commands the
its members.

problem before this sym¬

If the

posium is so defined, it is quickly
apparent that a discussion could
he held as easily on the subject
of stability in America.
I make
this obvious point to stress the
i'adt that the twin prooieni of

in

social

and

uniquely European

a

sense

no

security and
solvency is

military

achieving

economic

It is a problem, instead,
which confronts all nations adher¬

problem.

ing to the common cause

of free¬

dom and liberty.

solvency

at least'in

part a dilem¬

for instance, the free na¬

If,

could

tions

military

economic

and

security
involves
ma.

of

reconciliation

The

relieved

be

now

of

could

spending, and if they
devote all their resources

to the

pursuits of peace, it would

armaments

ano

the

doubt prove easier to establish
kind of social and economic

-order

ideologies

alien

which

in

if pur¬
chased at the
price of military
weakness, excessive concentration
-on
the
production of consumer
goods could cause the downfall of
the free nations by inviting armed
could

flourish.

not

from

attack

versely,
of

tures

Yet,

their enemies.

Con¬

if the military expendi¬
the free world are so

rampant infla¬
tion, and to deny the free peoples
elementary material necessities of
life, we may discover that our
iree
society
disintegrates from
great

as

to

cause

within.

tonight I should
special emphasis

In my remarks
like

to

place

which

contributions

the

upon

atomic

energy can make to Eu¬
stability—both in protect¬
ing free Europe against armed
aggression from witnout, and in
•protecting
it
against
economic
stagnation or decay from within.
ropean

Winston

Sir

Churchill

is

the

statement that,
other single factor

-authority for the
more

-of

than any

free

the

world's

military

strength, it is the atomic and hy¬

stockpile

drogen

which has
Union

so

from

of

this

far kept

launching

nation

the Soviet
an

all-out

attack against free Eu¬
is lamentable that the
maintenance .of
today's
uneasy
•An

It

address

by Congressman

tbe

Cole

at

Colgate
University
Conference on
American Foreign Policy, Hamilton, N. Y.,
July 13, 1955.




have

tank

for

match

mitted

and

for

man

aggression without ruin¬
expenditures on armaments.

ous

c .eap,

will

power

an

be

the wellbeing of the free world as a whole

greater contribution to
and

—

to

in

stability

European

particular — through its peaceful
applications. ; I refer specifically
to the manner in which peacetime
atomic

power

can and will raise
standards of life.

Apart from such factors as the
skill level of a nation, the pres¬

vastly

absence of cheap electric

or

ence

be the greatest single
determinant of economic growth.
power may

England
tury

the Eighteenth Cen¬
soaring heights of

in

to

rose

cost

A

a

conventionel

aid

of

The

NATO

concluded
a

alone.

arms

military leaders have
that a capability and

tactical atom¬

resolve to employ

ic weapons, if

the need arises, are

indispensable to an effective Eu¬
ropean defense.
The only alter¬
native, these same military plan¬

maintain
establish¬
huge, and so costly, that
it might well lead to economic
collapse and fiscal ruin.
Even speaking as an American
3,000 miles removed from Europe
I find myself sorely troubled by

ners
a

say,

be

would

to

conventional military

ment

so

the implications of a

around

tered

atomic

the

in

weapons

all-our

war—and

would

be

these

implications

even

strategy cen¬
use of

tactical

the
I

more

if

am

event
sure

of
I

troubled by

I

were

a

Allow me to point out,
therefore, that both ;the American
and ^European
officers on the
NATO planning staff were of one
mind in concluding that a strong
capability in tactical atomic weap¬
ons
is urgently needed for the
defense of Europe. This conclusion
European.

may
not

sober all of us—but we can¬
close our eyes to the stern

facts

of military

Yet all of

us

must regard with

a

war

would
much

in

which

be

used.

atomic

of

weapons

I therefore

•

very

hope that the conventional

forces of the free world will never

how¬

the comparable figure is 13
mills per kilowatt hour. In Tur¬

ever,

myself, I cannot
Curtain

Iron

the

that

rends Europe asunder

now

I
the

be maintained indefinitely.

satellite
Europe in its yoke.
When that
day arrives, and when Europe is

time

as

has

Kingdom

power.

Chain Hotel
Y.

Society

later

cruel

rule of law will replace the

tyranny which now holds

and

united in freedom

more

once

witness a
European renaissance, made
beyond measure by the atom

liberty, the world
new

rich

may

bent to the ways of peace.

Sheraton Corporation

of America, tells the

Security Analysts that large companies,"

of

through scientific management,
and

or

sooner

Expansion to Continue: Henderson

President of the

N.

that

can

operate more efficiently

economically, and there is still ground for potential growth
of chain hotel operations.

Ernest

be very profitat^e when the
cost is divided over 30 hotels,

can

business

from

member of the group to

others

increases

occu¬

Channeling

(c)
one

in

diferent

cities

pancy.

in

economies

(d) Substantial

purchasing result from large scale
buying.
These

multiple

of

advantages

operation in aggregate, add up to
several

million

dollars

year,

a

provided
the
potentialities are
duly capitalized. Referring to the question of
.

motel

competition, Mr. Henderson

stated:

Henderson

the harsh eco¬

nomic facts of the

hotel industry.'

no

doubt that in many

smaller, cities,

b y

"dictated

000,'would be prohibitive for a
single hotel in a single city; it

particularly where

"There is

guests travel by automobile rather

than by rail or air, that motels
in- have made inroads into hotel ocdustry
has
been
caught in a cupancy. This competition has at
over 20 mills per
The meaning of these figures squeeze between rising costs and times influenced Sheraton to sell
fewer guests." he said. "The great smaller hotels in outlying cities
should be obvious enough. Where
concentrate on the
conventional power is concerned, majority of the nation's 15.000 ho- in order to
tels have not fully shared in the larger ones. Fortunately few visthe industries of free Europe now
items to New York or Chicago, or
suffer a grave competitive disad¬ postwar boom.
electricity

costs
kilowatt hour.

similarly,

key

less

United

the

6f

those

important,

with

compared

when

vantage

No

States.

ambitious pro¬

any

for European economic de¬
velopment must now inevitably

grams

retarded

be

because

low-cost

sence

of

above

all,

the

of

power.

ab¬

But

high cost of con¬
means that Eu¬
rope is a "natural" for the early
application of useful atomic power
—power which can light its cities
the

ventional

and

run

All

power

its factories.

since the end of

the American hotel

war,

other principal cities where Sheraton Hotels are located are inand have prospered more fully."
es d 111 motels^ and for this
The reason, he said, is that the reason the problem is not too senlarger companies, through scien- °us.
Although motels may have
tific "management,
can
operate contributed to the trend in recent
more effiicently. by cutting waste,
years towards declining hotel ocduplication. inef"iciency; and by cupancy I believe a more import"On

ma'or hocontinued to grow

other hand,

the

tel chains have

forecasting

instituting better buying methods
periods of peak descheduling work more

ana fact°r is the more than offsetting increase in hotel room

m?nd. and

rates which have been producing

effectively.

increases in

Mr. Henderson, in the

this audience

in

"By and large,

the

are

aware

like every other force of
nature, atomic energy can be used

ing remarks

that,

business,

for

relating

course

of

to the hotel

follows:

constructive

purposes,

of

man.

um-235
which
ic

or

depending

destructive

upon

—

one

of

the

or

in

an

atomic power

reactor—contains almost
energy as

as

much

three million pounds of

This

energy,

materials

be used either in atom¬

can

bombs

coal.

the will

A single pound of Urani-

necessiry.

dismay and horrer the thought

Netherlands,

and

Denmark

In France,

hour.

kilowatt

—per

cent

a

of

undertaken
a
bold program for constructing
power reactors, the first of which
will operate next year. Neither is
it any wonder that the other Eu¬
ropean nations are now intensely
interested
in
developing peace¬
United

the mid-twentieth
A continued surge in the growth
might transform the free nations
century, * Europe's
reserves
of of the nation's major hotel cominto the very image of the garri^
cheap pbwer sources are largely *
panies was predicted by Ernest
son
states
which now threaten
exhausted. The situation of course
them.
Henderson, President of the Shervaries from nation to nation. Gen¬
aton Corpora¬
Nowhere is this strategy of off¬
erally speaking, however, Europe tion of Amer¬
setting
military
quantity
with
has already used up its best re¬
ica in
a
talk
military quality more clearly il¬
serves of coal;
it is a heavy net before
the
lustrated than in Europe. The 42
importer of oil; and relatively few York
Society
NATO divisions available for the
sites remain for further expansion
o f * Securities
defense of free Europe confront
of
hydroelectric
facilities. This Analysts.
175
Communist
divisions.
Yet
scarcity
of
cheap conventional
Mr. Hender-,
even after making due allowance
fuels is vividlv reflected in the
for
the superior firepower and
son,
whose
cost of electricity.
Here in the
company owns
mobility
of
the
NATO forces,
United States—which is still gen¬
and operates
however,
the
military
leaders
erously endowed with large re¬ 30 hotels in
charged with defending Europe
serves of coal and oil and hydro¬
the U. S. and
have concluded
that the NATO
electric power—the average cost
Canada, said
land, sea, and air forces could not
of electricity when it leaves the
that
this*
successfully stop an all-out Com¬
generating station is about seven growth
munist military assault with the
is
seven-tenths of

owe

believe

But today, in

—or

we

can

the Ruhr and Alsaac-Lorraine.

mills

us

which
to tne genius
debt

could
undersell
conven¬
electricity in Europe. It is
therefore
no
wonder
t. at
the

development—t.anks this time to
the cheap coal and iron ores of

adopted,

and

*

believe
which

of

names

to remind

serve

Speaking for

fact,

exist for atomic
which, at this very mo¬

already

The

tional

economic

extraordinary

of

riod

Europe.

en¬

Neumann,

enormous

Americans

the

who

ment,

similar pe¬

underwent a

In

date.

the

of

before

and

nation with their

von

should

Teller

earlier

much

a

reactors

century thereafter the German

Empire

Fermi, Bohr,

now

days

War

skills.

and

,

-

who left Europe

own

our

talents

has high
electricity — atomic power
be commercially practicable

Europe—which

designs

for coal.

reserves

enormous

nation will run

our

largely to its

prosperity—thanks
then

in

Wi;Oie

elec¬
installed

new

capacity

World

Second

atomic fuel.

In

at

Yet the atom can make an even

forces

—

a

as

half of the

generating

will

Uses of Atomic Energy

Peaceful

With

man

of action which, if

course

prevent all-out Com¬

to

us

tric

munist

foes tank

our

atomic

part

conventional

de¬

In

certain:

is

thing

riched

far pre¬

so

from

to

One

this century,

atomic weapons now

Third World War with¬

out having to

military
rope.

a

most

with

veloping the peacetime atom, Europe
will not lack for skilled
scientists and researchers. In fact,
our
own
American atomic prog¬
ress
has been due in large part

grateful for the fact that the
available ror
the defense of freedom have per¬

feel

superiority—with the su¬
perior weapons and training—of
the free world's armed forces. In
vented

the

transition

the

is

States where electricity

for

now

tne

in

unhappy

by those of the So'
and its satellites.
So

other words, we

Here

scientists

itative

order

United

-uels.

agreements

signed

been

the

far, however, we have been able
to o fset the numerical advantage
of the Communists with the qual¬

ward

social

Union

viet

conventional

already

European nations.

with electricity from

competitive

such

Eleven

nations.

have

the

the European

now

are

atomic

that

clear

now

is technically feasible—and
the only real question remaining
is that
of how soon it will be

in

outnumbered

fruits of an

a

the free world

of

joying the

is

power

to

Quality

The conventional military

It

by the bilateral agreements
peacetime atomic cooperation
between United States and other

for

however,
it is estimated that by the end of

We free peoples con¬

Military

aided
U. S. Use of Atomic Power *

relatively slow.
Notwithstanding this,

the form of the Soviet
dictatorship, a regime dedicated to
the conquest of the entire world.
We confront, furthermore, a re¬

ession,

Europe.

power:

front, in

Offsetting Military Quantity

atomic development in
This same cause will be

peaceful

evident to all of us gathered
tonight—will be evident also
to the rulers of the Communist
world.
In the meanwhile, let us

known.

freedom

month, should do much

century.

hope and pray
overwhelming¬

us

peacetime uses of atomic ener¬
to be held at Geneva next
to speed

gy,

ly

we

hard

Let

peace.

which
last

growth

economic

gious

never

nation

cur

The international conference on
the

Europe underwent during the

it

as

war

a

here

threat

Yet

and

vanquished. The

that this truth—so

gime which
now
possesses the
largest peacetime military estab¬
lishment
the
world
has
ever

de¬

helping

to

must rest so largely upon
of atomic retaliation.
cannot close our eyes to

peace

rope

spoke more wisely then when he
said there is today no alternative

uses

I take it that the broad

before

of

President

of atomic energy—particularly for electric
and predicts, by the end of this century, half of new
generating capacity will be produced by atomic fuel.

power;

atomic

an

would be for the

from without, and in pro¬
tecting it against economic stagnation or decay from within.
Says NATO land, sea, and air forces could not successfully
stop all-out Communist military assault with only conventional
weapons, and atomic aid is required. Stresses value to Europe
peaceful

of

reactors, can bring to Eu¬
new
prosperity rivaling,
even outstripping, the prodi¬

power

for the eventual

ruinous

as

victors

Europe against armed aggression

of

would be

we

nuclear weapons

use

any

most

Rep. Cole calls attention to contributions -which atomic energy
can
make to European stability — both in protecting free

.

to

conflict, even when the
military
situation
and political
prudence might dictate atomic re¬
straint.
To my way of thinking,
we
cannot escape the conclusion
that the exchange of atomic blows
and
counterblows would be al¬
in

COLE*

By HON. W. STERLING

weak that

so

required

fantastic

quantity

of

if used to fuel peacetime

vantages
(a)

listed
;

of

the princinal ad-

chain

operation

as

.

the

to

volume

of

declin¬

,

_

percentages

of occupancy,
Whereas occupancy declines have

in=

averaged 2%

Opportunities

dollar

saies in the face of

room

a

year

since World

abnormally high

emnloy War two's

oc-

highl.y skilled supervising specialists in/engineering, food control,

cupancy

decorating, architectural planning,

y.
dually, thereby accounting for the

personnel' work, sales promotion,
etc.
A single hotel

accounting.,

could

hardly

of such

(b)
color

.

figures,

averaged

rate

nearlv

increases
10%

an-

0

considerable

net

gain

in

room

Sheraton's experience indicates that the downward trend

afford the services sales.

skilled specialists.

I

The fact that a full-page 4advertisement, costing $10,-

in occupancy over recent years is
now

levelling out."

-

v:

Number 5450

Volume 182

The Commercial and Financial Chronicle

...

(379)

weak, because of the adverse bal-

The British Government's

of

ance

due. to

over-expanded

conditions.

Defense of
By

Sierling

the

Einzig calls attention to the efforts of the British Govern¬
overcome the unfavorable balance of payments result¬

earlier

this
of

not

cause

selling

a

be

monetary
buying

a

policy

pressure,

essary

For there
witnout

pressure.

The

flexibility

no

of

pay-

effects

ments,
which

be-

are

coming

exag-

gerated

bv

speculative

The

pressure.

.fall in exports

resulting from
the

in

strikes

h?gh'level^of
imports
Dr.

\

i4 T .
tion and

,

■difficult

Treasury

the

widespread

bank

advances

in

assume

that

he

deciding in favor of convertibility unless and until he has suc-

of

buying sterling for
the purpose of converting it into
dollars after the change. As it is,

sistance of banks to further credit

he intends to make the change or

this

now
have
been
disappointing,
Likewise, the restrictions imposed

convertibility,

on

pie

oi

woud

is

so

that

considered

the

the

peo-

many

be

risky,

because

depreciasterling before holders
would have a chance of switching
possibility of

bank

expansion.

a

of

tion

high

suits of the

rate

In this respect the
measures

taken

re-

up

to

on

produce

the domestic economy. So

not,

it must

whether

imperative for
curb

seem

him to take drastic steps to

inflation and
balance

reduce

the adverse

of payments. '■

instalment credits have failed

to

M.

Evidently,

the

desired

more

results,

measures

Daniel Weston Adds

are

(Special to The Financial Chronicle)

needed to correct the situation.'In

the circumstances theie would be
no object ,n deferring the necesa" °P"

portumty for a speculative attack

of Payments, the anticipation to develop against sterling.

BEVERLY
y ^AVJU x

G

Fie,d

HILLS,
illJUL)0

Calif.—Louis
—uum?

'E)

Rona,d

Goldberg

Leo Markman, William R. More,and MorrisB Rubey and Alistair

M, Wood are now associated with

affiliaTed^with

prevented

a

rise, not

fall.

a

But

His original intention was

gency.

inflation and the trade balance is :c. L. Wells & Company, 880 East
the

today the undertone of sterling is v to .wait and, see how the situation adverse,

immediate

:

result

1A

of

Colorado Street.

re-

.

New Issues
\

de¬

to

fend the gold reserve. In
addition,
,

-,

•

of

increase

Indeed it is safe to
would not think

depreciation.

Wells Co.

consump¬
production, has maue it
the

to

while the going is good. Holders
would be prepared to cut/■< their
losses in order to avoid a further

the date of the Istanbul meeting, of flexibility decision would cease «
Should Mr. Butler envisage a Daniel D. Weston & Co., 140 South
The abandonment of fixed pari- to b? a'source of weakness tor return to convertibility in Sep- Beverly Drive,
ties need not necessarily mean a sterling. .Whether or not he in- tember, it would be even more
depreciation of sterling. Not so tends in fact to take the fateful,important that he should play his
,
very long ago it would have been step of returning to convertibility hand from strength and not from i
With C. L.
followed by an appreciation. The ln the near future, the reinforce-weakness. If the change were to-,
(special to the financial chronicle)
undertone of sterling'was then, ment\of the defenses of sterling be made at a time when the do-;
sADENA Calif -—Richard H
firm, and the limits of $2.78-$2.82 has become a matter of great ur- mestic economy is suffering from *Fjint has become

of

for

figures

wholesale

sterling into dollars

ceeded in restoring equilibrium in

to increase with the approach of

suiting from
the high level

raui

measures.

nec-

the change would be a
conversion of

spite of
and the re-

n.v.

ance

July it has become inobvious that it would

continued

F. in September, the
^ between now and September
British Chanceler of the Excheq- adoption of the flexible convertuer, decided to reinforce the de- ible pound. It is because so many Mr. Butler, succeeded in strengthlenses of sterling against the ef- people expect him to do so that e"'ng sterling by taking effective
fects of the sterling is subject to speculative measures against domestic inflaadverse
bal- pressure.
That pressure is liable tl0n a"d against the adverse balI.

adopted

But during the

be inexpedient to defer the

British

into dollars.

the

measures

year.

and

now

reinforced

creasingly

would
.

LONDON, Eng.—Mr. Butler, the

defensive

could

he

coursd

the

1;

sterling exchange.
Says it is widely feared that for the second time in a quartercentury, Britain might suspend the gold standard by allowing
sterling to fluctuate more widely, and this leads to pressure on.
sterling exchange. Holds abandonment of fixed parities need
not necessarily mean a depreciation of sterling.

;

domestic

Butler

before

in

ment to

ing from strikes and its adverse effects

Mr.

develop between

autumn

strengthen the undertone of ster.

would

Dr.

If

the

ling the anticipation of the change

.

EINZIG

PAUL

would

payments, which again is

anticipation

of

yy

-

a

$25,000,000

lowering in the exchange value of
the
"

pound

in.the

future

near

in

connection with the adoption of a

/"floating" exchange rate, has
sulted

in

a

the. actual
(

-'Very
for

adverse

few

City of Los Angeles

re¬

y

of

excess

balance^

realize

people

that,

7>k% Bonds;

purpose, Britain
the gold standard. Any

on

export

surplus

flux of

gold, and

I>lus
the

results

in

in-

an

import

any

sur-

'

automatic

system.

difference-is

that

matic

is

and

it

The

is

it

only A

not

August 1,1955

y

v

'

-

"

=

/

.

Exempt from Federal Income: Taxes

/

:

cor-r

is

adverse

balance

which

being

of

is

done

/before
1925

1914,

and

standard

value,

$11,000,000

City High School District
2Vi% Bonds

City School District

2Vi% Bonds

'

2lA% Bonds

:

between
system

Prices

gold is the standard

and

$5,000,000

City Junior College District

$9,000,000

define gold

we

the monetary

as

under which
•of

If

Funds in New York, California and certain other States

Above

again

and

under present laws

Tax free in California

Legal investment for Savings Banks and Trust

what

precisely

now.

1931.

,

pay¬

of tight and dear -

means

all,
sterling is at present stabilized in
"terms of gold, and its range of
fluctuations is barely wider than
was the spread between gold im¬
port points and gold export points
<

York City and Chicago,./-*

*

.

money,

first coupon August I, 1956) payable at the Treasury of Los Angeles

-

buy

days the authorities sought to
an

Due August 1, 1956-80, incl.

County, Los Angeles, California, or at any'of the fiscal agencies of the County in New
'
:
\ v - -\ :
Coupon bonds $1,000 denomination fully registerable.

,;and sell the gold.: In the pre-1941

ments by

.

arbi¬

trageurs but Treasuries that

jrect

-

Principal and semi-annual interest (February 1 and .August 1,

auto¬

not' bullion

Dated

"

'

efflux of gold, ju=t under

an

School Districts

CALIFORNIA

all essential

Is still

*

in

pressure

under

yielding 1.30% to 2.55%

(according to maturity/accrued interest to be

the

which

added)

international stability of the mon¬
etary unit is maintained by gold

movements, sterling certainly

con¬

forms to these rules, event though
it is inconvertible;
It is

time

second

the

within

Britain

gold

Since its

fixed

under

that

offered when,

as

and if issued, and subject to approval of legality by Messrs. 0'Metreny and Myers,

ngeles, California by only such of

the undersigned as may legally offer the Bonds in this State.

in

of

terms

system

gold

no

gold,

same

until

way

as

1939 when

re-stabilized

in

it

Weeden & Co.

Incorporated

-

of

Salomon Bros. & Hutzler

Union Securities Corporation

Goldman, Sachs & Co.

Kidder, Peabody & Co.

Phelps, Fenn & Co.

Blair & Co.

Incorporated

after

sterling

terms

Incorporated

would

did

Lehman Brothers

Halsey, Stuart & Co. Inc.

Ripley & Co.

Harriman

widely.

more

to be the standard of value,

the

3931

are

Los A

a

suspend
allowing

by

value would then be

longer

in

of

quarter

might

standard

sterling to fluctuate

cease

These Bonds

widely feared that, for the

century,

was

gold.

Baxter, Williams & Co.

Stone & Webster Securities Corporation

White, Weld & Co.

Moreover, instead of allowing gold
■movements

in

the

offset

to

balance

fluctuations

■exchange to fluctuate in order to
counteract

buying

a

It

Bache & Co.

remains

that
to

will

be

in

chosen

to

be

fact

seen

be

the

Braun, Bosworth & Co.
Incorporated

Newark

First of Michigan Corporation

selling

or

pressure.
•

Fidelity Union Trust Company

solution

by the government.

Adams, McEntee & Co., Inc.

A. G. Becker & Co.

,

decision is causing a strong ad¬

verse

pressure,

donment

of

National Bank of Commerce

Incorporated

Stern Brothers & Co. Hayden, Miller & Co.

Eldredge&Co.

of Seattle

parities

would

appreciable fall in sterling. Right¬
ly or wrongly,-it is widely ex¬
pected that Mr. Butler would
nounce

Fairman, Harris & Company

...

'

at the Istanbul




an¬

A. Webster Dougherty & Co.

Rambo, Close & Kerner
Incorporated

Incorporated

because the aban¬

fixed

in existing circumstances mean an

Rand & Co.

Incorporated

whether

But the mere anticipation of such
a

Hemphill, Noyes & Co.

Estabrook & Co.

Hayden, Stone & Co.

Hallgarten & Co.

of

payments, the
government would allow sterling

11

Thomas & Company

July 27,-1955. y

Harold E. Wood & Company

*

.

meeting of

i-

..

.

Schaffer, Necker & Co.

j

The Commercial and Financial Chronicle...

(380)

12

tions,

Don'1 Discriminate

Against
Self-Employed Retirement Plans

has

dollar

declining in value for 175
There is hardly any doubt

From

Washington
Ahead
of the News

but that it will decline even faster
the years

in

immediately ahead—
bankrupt Social Security sys¬

our

tem alone is sufficient to deal the

NORMAN F. DACEY

By

American

the

been
years.

blow. Why should

dollar its death

Norman F. Dacey and Associates

millions of Americans be forced to

Financial Consultants and Trustees, Bridgeport, Conn.

entrust

the proposal of the Treasury De¬

Mr. Dacey protests against

partment that the retirement

ard?

funds of self-employed be made

175

has

mass of people who now participate in tax-free pension or profitsharing plans can have their share

self-employed persons to accumu-

in such plans wisely invested with

and

Jenkins-Keough

late

lax

funds,
t h

his

d

e p a r

ployed and thereby multiplied?
Why should they be prohibited
from making wise and prudent
if we are going to have a law
investment of their funds and be to end tax discrimination, then
required instead to loan them to jet us have one that does more

t-

would

ment

have

ob-

no,

jection to such
plan

a

pro-

vided,

things,

with

than
brief interrup-

occasional

give lip service to

that ob-.

jective.

the funds

that

;

—

—~

■

invested

were

in special
Bonds.

Norman

the Government?

among

other

opportunity to have their

same

therelore not sub-

ject to the same limitations, will
have built their retirement programs
upon
the prosperity of
American business and industry,
the traditional source of all wealth
in this country,

retirement funds productively em-

that

retire-

whose

and

are

U.S.

Reveals Shifts in U. S. Balance of

Payments

The Jenkins-

Federal Reserve Bank of New York, in its

Keough Bill is intended to correct
present gross discrimination

of Credit

Review

the

Business

and

improvement in gold and dollar position of foreign countries

fits of participation
tirement

in formal

operated

by

programs
.

their

employers

employee

tnat portion of nis

deposited

income

An

.

e

pays no lax on

such

in

pro-

a

gram

by his employer.

The trust

fund

created

combined

with

contributions
ees

the

all

of

such

employ-

generally invested

is

anced

portfolio

lerred

and

directly

of

in

Business

pe(jerai

of

Reserve

York, contains
cent

in

shifts

New

analysis of rethe major compoan

nents 0f ^he American

According

payments.

the

by

Bank

balance of

the

to

ar-

£cje.
''While foreign

the

countries

as

American

™rvorf„J+J +?.
opportunity to

or,

an

business

and

l|clPaat
in
the

u

share

has

markets

also

substantially,

,

Changes in the Trade Balance

a

able throughout

.

,

.

Pension

the preceding

year and in
1955 thev decreased sharnlv

ln

n

nd...dS.

o0mewhat smaller than

nswere

gains were somewnai smaller inan

prosperity of that business and innlicf;„
LL/ one of the 1 j
ML
dustry.
Indeed,
leading manuals in the field of nension

early
This

raoo iney decreased snarpiy. inis

lower foreign gold

trend toward
-

.

J0ilar

rto

{no has been

accom-

¥arwttohpi'acI

ihe

sponsibility
such

the

upon

plans to

trustee

it

to

see

of

that the

d^if^ccolr^^Go^nmen"
posn

accounts

Government

or

attributable to

substantial ex-

a

"xcljjdteg mflitary

.

exDansjon has been in

aid)
sharn

substa"ltia7lvmnro7or0S

a

well

p°',!XVn these words:
Of

importance

primary

the

the

summanzes

is

that took place in
and most of .1953.
in

trustee's

duty to make the trust
productive through proper invest-

•

1952

-

-

the

United

States

throughout

balance

the

of

past

three years has been the sharp inprofit-sharing funds are crease in the expenditures by the
improperly invested, the profit- United States Government and
sharing plan may be disqualified American militaiy personnel on
for tax benefits.
This could mean local goods and services in Westthat the employer can t deduct his cin Europe.
In several countries,
ments.

If

contribution

his

in fact, dollar earnings from this
come-tax return, that the profit- source
have exceeded or come
sharing trust itself has to pay in- close to those derived from the
tax

come

able

on

its

on

income,

undistribut-

that

and

in-

company

own

each

em-

cxporjt of merchandise to the
United States..

ployee has to

pay income tax on
trust income actually or construe-

tively

"Significant
occurred

j,

changes have

received by him.
If this purposes,
happen even in a single bution of our foreign aid. Miliit would be absolutely ca- tary aid has declined both in ab-

lamitous.

solute

"The trustee cannot

investment
all

the

cash,

on

nothing
is

a

trust

problem

trust

assets

in

the theory that if you do

duty

to

make

the

fund

productive.
Nor
is
investment
in
low-yield

100%

governments

the

One

big

of

the

terms

and

relative

to

our

sidestep the total aid. A comparatively recent
by keeping innovation in the aid program—
uninvested the so-called 'direct forces sup-

you can't do wrong. There

positive

solution, either.
things about a

.

surplus disposal

playing

is

also

our

for-

program

larger role in

a

April

income down?"

banks

it

financial

to

off in foreign demand from its

Treasury Department has
its way, the
Jenkins-Keough Bill
will only perpetuate the
unjustiit

is

Why, if the great




un-

early 1952. United States merchandise exports (excluding mili-

a quarterly average of $3.7 billion
during the nine months beginning

jujy ig51 to $3 2 billion in AprilDecember 1952

though

In 1953

u

t

,

u

A

and

this

let

it

issue

buy without

idea

claim

any

just
longer be

the

TVA'ers

These

decline

declines

rest

the

mess

as

its

TVA

own

ened

exchange

some

policies

ary

restrictions

and

in

adopted

would

sterling

area

American

and certain Latin

countries

July

1951

during
March

to

the
1952.

The

impact of these restrictive
policies coincided with fundamenfal

changes in the world'supply-

demand

situation

international

availabilities of

materials

raw

resulting in
demand

a

for

toward

balance
a

broad

and

greater

and

larger

range

of

manufactures,

distinct lessening of
United

States

prod-

have

solely

the

upon

about TVA should

peddling its

market

be ended.

to

The private
They would like

companies
much to take

power

very

emphatically

most

are

not.

TVA although they are

over

ambitious as to think there is any possibility of that. But
they and the Administration, both, have-been hoping to
accomplish is the stopping of TVA in its tracks, to keep it from
expanding all over the place.
; not

so

what

It

began

a
government proposition, admittedly fake, to
people" the waterpower that resulted from the
navigation and flood control of the TVA area. Any resulting
waterpower has long since been used up and the TVA has for
years been building steam plants to "firm up" or "augment" the
supply of waterpower. It has become a tremendously big business
operating in completion with the private power industry.

"for

use

as

the

Thwarted

by the Eisenhower Administration iri its efforts to

build another steam

plant, its schemers have now come up naively
proposal that perhaps they were wrong; they were un¬
justified in coming to Congress year after year for more money
with which to expand. TVA is now willing to shake loose from
Congress and go ahead on its own. In the future when it wants

with

a

more

money

with which to expand it will just sell its

They won't cost the taxpayers
This sounds

simple that it

so

ministration off guard

given the proposition
The

private

TVA

the

a

under

would

still

Enterprise.

on

the

have caught the Ad¬

other hand,

guise.

any

be

seem

With

to be

no

the

securities
can

on

the

anyone

market

just

an

expansion of

in

as

competition

with

with

the

can

be

does any

other

business.

Just

The TVA promoters claim, of course,

industry.

private

Private

Why, they will float their

they will make payments in lieu of taxes and operate
keel

own

The fact is that

quite smugly that there

argue

complain.

is

stopping of it.

pig Government

Its promoters

gnashing their

are

authority to issue its

nothing wrong with their proposition.

how

to

faint and sickly nodi

utilities,

bonds there would
it

seems

to the extent that the Administration has

What they don't want, understandably,

teeth.

bonds.

own

cent.

a

As

one

who

has

on

an

even

long been against

quackery of the TVA I can't help but laugh at the seeming

and, I repeat seeming, plausibility of this

plan.

new

1953.

Likewise, increased coal
production abroad led to a sizable
our

coal exports."

W.

Wood

BEACH,
is

now

A.

Kolb,

Henry

with

cent

J.

McGinn,

Edward

S.

Walker

&

Co.,

125

East

125 East

KANSAS

Hanson,

CITY, Mo.—David C
Logan has become connected witl]

E.

B. C.

Mc-

V. Mc¬

Trade
New

Christopher & Co., Board oi
Building, members of the
York

and

intosh, Leon Montgomery, Susumu

Exchanges.

merly with H.

Pacific Coast.

Oklmoto,

M.

Logan Joins Christopher
(Special to The Financial Ch?.cnicle)

Farland, Evelyn C. McGinn, Vin¬

Calif.—Wilbur
affiliated

Feibelmann,. Ireeta

Julius

(Special to The Financial Chronicle)

LONG

(Special to The Financial Chronicle)

SAN FRANCISCO, Calif.—Hans

M. S. Walker Adds

V.

With Mutual Fund Assoc.

•

Montgomery Street.

United

investors

money

First Street, members of the Los

in

into the

go

which

The promoters of

scheme it

new

Angeles Stock Exchange.

gains

bonds

revenue

power company does.
It wouldn't
the taxpayers of the country, although
always insisted it was never a burden. But

eign central banks to invest most
dollar

come

permit the TVA to do this has already been
introduced in Congress and it is so embarrassing to the Adminis¬
tration that the Budget Bureau has given it the nod with a couple
of suggested changes.
The Administration's appointee as Chair¬
man of the TVA board, General
Vogel, seems to be enthusiastically
behind the proposition.

response

gold and dollar losses in

severe

^he

ti^ht—

bv the disinflation-

cases

tendency in recent years for for- M. S. Walker & Co.,
their

has

on

of

Jhere has also been a marked

crowd

private

any

burden

a

Julius A. Rundin and
Jack D. Walker, Jr. are now with
Mutual
Fund
Associates,
444

4

Public Power

government guarantee.

any

the

Legislation

be

may

nrimarilv exnlained bv the

jo

the

under

further

a

substantial

less

occurred.

institutions

If the

which

(excluding

1-gely attributable to the falling-

Pas^ year °f commercial
credits extended by United States

end.

195T—

kepiemoer

surplus

military aid) fell off sharply.
Since our merchandise^mparts

actions has been the rapid growth

discrimination

has

distinct

two

Spntcmhcr

1HD2 to
export

our

eiSn a*dAnother significant decline in
change in our international trans-

can

liable

surplus

trade

through

passea tnrougn. iwo distinct
Phases. In the first of these—from

port'—has become an important ucts. For example, there was a
of dollar exchange, espe- substantial decline in our grain
cially for France. Our agricultural and cotton exports in 1952 and

Why
opportunity by holding

intended to

three

source

accumulate income tax-free
waste that

profit-sharing trust is that

approximately

merchandise

period
also

recently in the nature,
and geographical distri-

should
year,

the

tary aid shipments) declined from

"Another notable development
payments

all

of

out
an

securities

USUalIy hi^h Tlevels in 1951 aiid

vestmentth!
manual verv
very

"In

ITon meX/cli^ and 'rlic" contfacUon ' of ?hTslpluf was
—

with

ments

stock

tended to increase
especially in 1954.

>

partSpant

they give the

awful

an

States

this period to add to their gold
and dollar assets as a result of years <that have
their over-all transactions with en?. 01 *ne iyD1
crisis in inter
the United States, in 1954 these national payments, this country's

industry

agreement with

an

certainly wouldn't be. Its bonds would
it makes. That's private enterprise,
the TVA'ers claim, and no one should object to it and all argu¬

that

section of

Energy Commission have at other
To do this the Administration had to

States Government securities and
time deposits, rather than converting them largely into gold, as
in some earlier years.
Finally,
participation of private foreign
investors in trading in
United

group have been

they are invested in common
representing a broad cross-

power to the TVA in
the TVA would let the

juicy time of this. To hear Senators Kefauver
and Gore of Tennessee, Clinton Anderson of
New
Mexico, and Langer of North Dakota,
this was a sell out of the "public's" interest
to "greedy selfish interests" as shocking as
Carlisle Sargeron
anything that has ever happened in our time,
particularly since and inclusive of the Harding
regime when there was definite bribe taking. The Administration
thinks it has gotten off the hook, if there was
really ever anything
to this great "issue" by agreeing that if the City of Memphis
wants to build a power plant it can do so and there will be no
need for the roundabout way in which the Administration was
pursuing things. •

this

great mutual funds. To the extent
stocks

power

get the AEC to work out

loose

either

of

one

of Credit and
Conditions,"
published

pre-

stocks

through

"Monthly

Review

bal-

a

bonds,

common

or

The July issue of the

.

supply

the private power group.
The Public Power crowd has had

would

balance of payments.

components of our

re¬

places.

But

there have been notable shifts in the behavior of the major

enjoying the bene¬

now

are

Atomic

to
the

for

return

embarrassing proposition. If, they say, the TVA is an
encroachment on the private power industry, supported by annual
appropriations by Congress, why shouldn't the Government cut it

which exists toward

icans

operators, Dixon and Yates, to build a
in Arkansas just across the river from

Mississippi

up

finds that with

persons.

self-employed
Many millions of Amer¬

went so far, not knowing just what else
do, to make a deal with a couple of private

to

July issue "Monthly

Conditions"

a

and

plant

self-employed

of new beneficiaries of
Jenkins-Keough
Bill
enjoy

the

Treasury

e

indicated

These

power

ment pians

millions
the

of

dollar which

a

doing just that?

TVA, of whom I am certainly one, have been
pretty pickle.
Their predicament resulted from the
Dixon-Yates fight.
The Eisenhower Administration was deter¬
mined to stop the expansion of that ever increasing bureaucracy
in

put

ity which will be more apparent
than real. Meanwhile, other millions of Americans who are not

the benefits to them, cannot these

rep-

a

resentative

been

a

The critics of the

millions will be building a secur-

resultant substantial increase in

a

iree

-

reti rement

had

years!

forced to invest in

hearings on the
Bill
to
permit

House Ways

recent

the

At

IVIeans Committee

stock
been going down for
Why should they be

They wouldn't buy

which

that such funds be invested in
special U. S. Bonds.

exempt only on condition

tax

stand¬

economic

tottering

By CARLISLE BARGERON

security

retirement

their

this

to

Thursday, July 28, 1955

-

•

-

Mr.

Midwest

Logan

O. Peet &

many years and

Stock

was

Co.

prior thereto

in the investment business

on

for¬
foi
waj

the

by individuals, is virtually

The Demand lor New Housing
Prcf.

of

Business Administration,

ciictable.

demand for

a

se-

these last two factors may continue to sustain demand for some

other

and

pension

pro-

time

Bertram Jones Joins

-

n

in

R

R

to

—

Indiana University

Turner, briefly analyzes the forces creating

unpre-

High incomes, social

come—especially if supoankers rSona OC oecs.
grams, and easy mortgage money,
plemented by new shots in the
(special to the financial chronicle)
have enabled many widows and arm
such as that given to the
g-p
LOUIS
Mo.
Bertram V.
widowers, divorced persons
and housing industry a year or so ago
m£ associated wita
unmarried adults, to establish or when credit conditions generally
r
maintain
separate
households, were eased and specifically when Bankers Bond & securities u
This had undoubtedly been an im- mortgage insurance and guarantee 408 Olive Street. Mr. Jones, who
portant source of demand for new programs were relaxed. Available bas been in the investment busihousing in recent years - In spite data do not permit even a good
£or m
has recently
of the increase in such households
approximation of the potential!*
J J
in recent years, however, perhaps
ties of these two sources of de- been with Scherck, Kicnter u
only a third to a half of the po- mand, but it seems reasonable to pany and Semple, Jacobs & Co.
tential market has been exhausted, suppose that, because the number
curity

v

By ROBERT C. TURNER
Professor

13

(381)

Number 5450...The Commercial and Financial Chronicle

Volume 182

,

,

housing, pointing out the basic

new

in number of

crease

sources

(1) net in¬

are:

families; (2) the separation of "doubled-

up" families; (3) increase in individuals maintaining separate
households; (4) conversions of
residential use; and

Concludes

home buildings to

many

(5) increase in multiple home

of these factors "not

some

lusty

as

occupancy.

heretofore."

as

,

„

The

the Federal

May issue of

Reserve

contained

Bulletin

some

interesting data and reveal-

very

analyses on
honsinp
Thp
housing.
The

the

ing

conclusion

market

for

„

non¬

million new non-farm houses were
built. This indicates that much of

the demand for
cent years has

new

houses in refrom other

come

Moreover,

sources.

Bureau

the

Census

net iduuijr

xuiiiiauun

indicate that
wax continue

authors of the

at

level

several

article

years.

which

s

the

drew,

a

projections

low

for

more

were

One

which

source

a

ically

worded
that their sig¬

The percentage of the

nificance could

from

well escape

but

the

is

all

to

re¬

quired to state

ion

protect

the

agency

from

confidence, and

ones

government
subsequent charge

issuing
a

act

subversive

a

current

„„

will offend on one, un-

no

vis-a-vis

the

boom.)

I propose,
restate

some

3.5%

in

undoubling.
number of

has declined

up

1947, to 6%

in

1950,

The percentage

1954.

in

level

significantly
likely.

demand

than

htjve suspected.

And

were a

been

of

many of us

important

more

a

housing

the number of housing units
"should"

the

It

above

seems

zero
probable,

<phe obvious conclusion

be

that,

all four of
operating to
high demand for new
housing.
Then net family formation receded and played "a minor
these

roip

until

factors

create

^hp

othpr

thrpp

by

occupancy

withdrawals,

nndnnhling

individuals

however,

ficient to sustain

and
suf-

were

housing, this

tinuing demand for
factor will

soon

dwindle to insig-

nificance
The

will

or

separate

f

increase

t

households

in

soon

be

w;+v.

the remaining two.

more

inined

p;prpv

Street,

York

New

some

amendatory

...

and

the

staff

members

of

?'

Robert

—

r>

m

Joins McDaniel Lewis

a

•

c

Stephen D." McCarthy
associated

come
,

nir

tt

,,

have

with
,.

xt

„

&

,

i

t>

National Bank

Marshall,
Building.

•

(Special to The Financial Chronicle)

bs-

Foster

Fshtdman'^snow connected^ith
Esnelman is now connected wuu
Tvrnnanipi T.pwic & Co., Jefferson
& r.n Jefferson
McDaniel Lewis

Building.

With Ed Murray

re-

With

con¬

high, after-tax incomes, or
precisely, continued expec-

With Camp & Co.

(Special to The Financial Chronicle)

LOS ANGELES, Calif.
R.

Arthur has joined

Ed.

&

Murray

Co.

—

the

of

(Special to The Financial

Chronicle)

PORTLAND,, Oreg.—Ernest

Helyn

service has many compensations.)

Phoenix,

Camp & Co., U. S.

National Bank

Building.

Arizona.

NEW ISSUE

offer oj these Securities for sale. The offer is made only by the Prospectus.

blunt,

The

demand

lor

!

■

;

; •\

1

•

-

.

"

•;

'

.

.

,

'

.

housing
(measured in terms of numbers of
new

units)

is most immediately influ¬

enced

by

factors,

monetary or financial
incomes, liquid assets,

mmmm

rates,

etc.

Back

number of basic factors which de¬

|j||| .

termine the extent to which abil¬

to

is directed toward
opposed to other goods

spend

housing,
and

as

services,

spending,

Leaving

Container

opposed to not

or as

i.e.,

saving.

aside the question of
would propose that

Corporation

vacancies (few

strive to increase

we

tios

as

for

of demand

sources

vacancy

ra¬

of expanding the
housing), the basic

means

a

demand

ing

units

for

look

would

new

hous¬

of America

something

like this: "

Net increase in the number

(1)
of

m

$35,000,000:

this

of

monetary demand, however, are a

ity

mm

e.g.

interest

families;
(2)

3.30% Sinking F und Debentures

Undoubling of families now
up with others;

doubled

(3)
of

rate

due

Net increase in the number

individuals

maintaining

July 1, 1980

sepa¬

households;

(4)

Households

which

housing market
by fire

or

vacating

withdrawn

are

units

from

the

Dated

result of loss
other cause, conversion
as a

to nonresidential use, or

Increase

in

July 1,1980

abandon¬

ment;
(5)

Due

July 1,1955

Price 100% and accrued interest

multiple home

occupancy.

The

last

source

can

mand

largely

of

be

housing de¬
ignored, at

i

.

■

■

9

announcement

though

the

about

ing

units"

two

or

in

7%

\

of the "spend¬

undersigned,

first,

net

in

(net)

quantitatively,
have oc¬

recent

In

years.

1947

from

the

A. G. Becker & Co.

Glore, Forgan & Co.

Goldman, Sachs & Co.

compares

Blyth & Co., Inc.

Eastman, Dillon & Co.

Harriman Ripley & Co.

Lehman Brothers

Incorporated

families

Merrill Lynch,

Pierce, Fenner & Beane

Stone & Webster Securities Corporation

almost

Union Securities Corporation

built

during the same three-year
the four-year
period from 1950 to 1954, however,
only
1,8
million
new
families

period. During

(net)

lawfully offer these securities in such State.

Incorporated

exactly
equal
number of non-farm housing units
an

Corporation

to

new

formed. This

were

The First Boston

changes

three-year period
1950,
2.3 million
with

may

State in which this

Kidder, Peabody & Co.

increase in the
formed, is the

important,
marked

curred

as

any

only such of the underwriters, including

country own
cars, multiple home
has not yet become

quantitatively significant.

and

be obtained in

this

number of families
most

may

is circulated from

more

occupancy

The

t

Copies of the Prospectus

least in the immediate future. Al¬

were

formed,

whereas




4.7

July 27, 1955.

R.

stajff of Wilson has joined the staff of

an¬

an

the

Stock

Midwest

rea¬
This is not

of

1000

Co.,

&

Exchanges.

EnriSht» William T. R. Saan and

The

maintained tations of high and rising incomes,

my own, and to do so
undiplomatic language.
(Departure
from
government

•>

Mo.—Mrs. Jessie L.

Dempsey-Tegeler
iLocust

.

PORTLAND, Oreg.
„

burden of sustaining demand rests
on

(Special to the financial chronicle)
st. LOUIS,

(Special to The Financial Chronicle)

By now, un-

doubling

is

With Dempsey-1 egeler

continued high

a

demand for housing.

tinued

third

r

Three With Foster Marshall

1950,

were

a

few years ago.

'

to

seems

therefore that as source of con- cedfng lnto unimportance."

soning of
in

that

withdrawn from

be

T

xir..i

in this short piece, to
of the argument and

conclusions of the ^Bulletin's"

alysis, with

factor,

doubled

9%

seems

„„„

dermine

of

Dr. Robert c. Turner

ssimistic

f^tS
which

second

demand

in

growth

today is no doubt below 3%. How
long it will go, no one knows, but
that it will stop declining at a

reader. (Great

p e

the

families

wary

artistry is

part of this

bas

SOurce

has supplied

s o

delicately
and diplomat¬

^his

of houses built in 1950-54 exceeds

net family formation plus undoubling by a substantial margin,
some portion of this demand has
been satisfied and these factors
therefore are not as lusty as they

market runs into the millions.

^

however,

The fourth factor, withdrawals
housing units from the residenmarket, is also a statistical
mystery.
It seems probable that
0f

White, W eld & Co.

1,

14

Thursday, July 28, 1955

The Commercial and Financial Chronicle...

(382)

Department, has

Consumer Credit

Treasury Not Affected by
Silver Purchase Act

been

News About Banks

Repeal

BRANCHES

NEW

OFFICERS, ETC.

REVISED

series of acts

etary

relates

to

governing the

of silver.

use

which

subject

a

bill

a

mon¬

needs
silver.

is

controversial

of

the

from

point

of

view

monetary

theory and be¬
of

cause

diverse
ests

of

the

inter¬

impor¬

tant groups.of

tion.
The Treas¬

interest in

ury

this
1 at

not

bill

re-

to

the

e s

R.

Burgess

ability

our

to

carry out suc¬

cessfully, and without economic
ill effects, operations within the
of

ity

statutory responsibil¬

our

for

silver

currency

coinage

and

that the

Treasury would no longer
required to purchase newly-

xnined

domestic

silver

sue

Under

silver

the

bill

the

to

is¬

it.

the

Treasury
be instructed to

would, however,
maintain

and

against

certificates

silver

be¬

reserve

hind silver certificates, and mig.it
use
silver not required for
re¬
for

coinage purposes.
The Treasury would continue to

serves

of

terms

fixed

a

of

amount

gold

and

Barnwell,

C.

the

Fred

the

Secretary of the Treasury

the bank

than

as

the

In

the

April),

(April
to
certificates

year

silver

issued for about $26 million.

were

Total

ing

past

new

silver certificates

are

total

outstand¬

$2.2 billion, compared with
of $30.0
billion for all

forms of money in circulation out¬
side
the
Treasury and Federal

Reserve Banks.
silver

The proportion of

certificates

is

about

in

the

the

in

same

1920's,

now

it

as

for

and

system

our

was

the

past

has; found

culty

in]

serious

no

diffi¬

doing, without unto¬

so

ward ecbnomic effect, either in¬
flationary or deflationary. On the
other hand, if tiis legislation were
repealed, we could operate under
the remaining provisions of law
to meet the coinage and
currency

requirements of the United States
which

related

are

Silver

has

place in
shall

to

had

silver.

been

form

changed

of

the

from

law

time

to

time, this country has historically
used
silver
for
coinage and to
back

smaller

Silver certificates

rency.

only

denomination

which

currency

the

$1

constitute

bills.

a

The

the

are

have

we

denomination

cur¬

and

monetary history. I
go
into the details of

our

not

the attempt to operate
lic currency

century.
the

Since

United

the

States

1933, operated
Uut

a

bimetal¬

in the 18th and

on

Act

of

19th
1900

has, except in
gold standard,

a

part of the $5 and $10
bill

before

you

con¬

templates continued circulation of

td

back

subsidiary

part

has

and

rency,

of

the

silver coins and certificates.

to

repealed,
Treasury would still be able
purchase silver for subsidiary

such

than

ment

the

Treasury without immediate
regard to coinage needs.
Under
the

further legislation

1939

and

to

cents

at

a

net

monetary

silver

price

The

ounce.

issues

in

States

1954

214

of

has

Assistant

later. He is in

the

at

silver

of

90.5

Treasury

certificates

value

of

$1.29

at
per

have
On

other

million

%

the Treasury

buying price for silver
"than

the

market

Domestic
the

silver,

was

higher

would

its

to

repeal.

hand, it creates
to

operate

the Congress

so

and

us

no
we

under

it

came

Treasury, while industrial

The

*A

statement

Senate

Currency,

by

Dr.

Committee

Washington,

Burgess

on

D.

before

Banking
C.,

July

less.




and

13,

full

$10.9

Secretaries

turers

Trust

of

As¬

as

Manufac¬

Company

announced

was

of

entered

th0«ervice

Manu¬

the

of

Trust at the

time of the

also at an all time high of $96J/2
million, an increase of over $5,700,000 for the same fiscal year.
Dividends either paid
for
the
credit
of

amounted

to

of

$193,000

in

attended the American Institute of

Fifth Avenue at 43rd Street.
*

SAN

FRANCISCO,

New
the

York

announced

signing of

William

Co., New

July 18

on

Construction

York, to build the Re¬
Buffalo

Bank's

serve

of

Bank

contract with the

a

Crow

L.

Branch

building at a cost of approxi¬
mately $4,000,000. The project
consists of

a

three-story and base¬

structure

Company,

Russ

Building.

Three With H. H.

and

adjacent

an

G.

Calif.

Wigh have joined

staff

Co.,

1515 Draper Street.

of

Herbert

H.

Wigh

York,
be

Co.

Norman

Bergstedt, Jo^n A. Gunnarson

and Clarence S.

cf

New

&

With E. R. Bell Co.
KANSAS

CITY,

by

4627

Road.

the

*

The

Bucks

30,
a

KANSAS CITY, Mo.—Floyd M.
and James H.
Forbis, Jr.

Baird
are

now

Merritt

&

connected

with

Company, Inc.

King

the

Crow

York

State;

bank
New

the

old

steel

U.

S.

Wall

and

the

ago

Buffalo

frame

Alabama

Office at

Assay
Street.

bank

budding

limestone

Crow

Mr.

will

be

finished
and

a

in

Indiana

limestone panels.
❖

At

the

the

National

Bank

of

its capital, effective

stock

$625,000

to

dividend
*

June

by

$656,250

of

Ilaven,
to

the

98th

Annual

Meeting

Conn,
Board
new

elected.

The

Charles

H.

former

four

of the

bank
of

were

Cor¬

added

Trustees,

Corporators

and
were

Trustees elected

Costello,

Reuben

are:

A.

an

stockholders voted

tional meeting,

597,180 shares for and 584 shares

the merger which was
by the directors of the
on
May 17. United Bank

bank

in favor of the

the

the

Under

Colonial

title

Bank

of

of

20

Bank

and

of

Savings

Croghan
Ohio,

effected

was

the

the

the

Fremont,

consolidation

Colonial

on

Savings

Croghan Bank

Company,

National

First

both

in

and
Fre¬

mont, Ohio.

seven

shares

each

for

stock

in

share¬

First

increase

will

merger

to

value

Illinois

National

Springfield, 111.
capital
as

of

from

Bank

of

increased

has

its

$600,000

to

$750,000

result of the sale of $150,000
new stock.
The enlarged cap¬
a

ital became effective July 15.
❖

❖

The

directors

,

•

of

as

total

31,

1955,,

and

total

May

$43,323,000
the

of

as

total

would

par

the basis of the banks7

resources

date

same

$619,114,000. On

May^
Com¬

had deposits totaling $59,265.000; loans and discounts of

Trust

Company,

to

the

bank

new

on

officers

staff, viz: Willett N.

Gorham and Robert C.

sistant

Northern

Chicago,

of

July 19 elected three

Secretaries

31

and

The

Nihan, As¬
the

of

Trust

of

$149,618,000
securities.
founded

United

Department.

Mr. Gorham,

dent of Winnetka, is
of

The

resi¬

a

new

a

Northern

Bond
mem¬

staff.

Trust

graduate of Princeton Univers¬
ity and the University of Chicago
Law

School,

is

he

the Illinois bar.

member

a

of

Mr. Nihan joined

the

Its

since

he

Bond

became

the bank in

Department

associated

with

1949.
Jj!

The

opera¬

«

Fourth

«

Northwestern

Na¬

tional Bank of

Minneapolis, Minn.
increased its capital, effective June
16. from $150,000 to $200 000 by a

stock dividend of
*

In

Okla.
our

banks

had

1857

when

National

National
The

&

which

the

Trust

Tulsa,

noted

in

capitals,
National Bank

and

the

Fourth

Bank, another

institution,

Square

viz.;

National

Na¬

Tulsa bank¬

Bank

new

by
it
Meyer,
Speer,
Bank

The

Company.

and

the

St. Louis

National
Texas

in

-A

11 the Bexar County-

Bank

reported

sale of

the

to

7, page 95.

*

increased

000,

proposed

referred

was

these columns July

of

San

Antonio,

capital of $800,from $600,000 by
a

$200,000 of
*

new

stock.

❖

*

The 12-story

building
Main

will

*

*

be

on

First Security Bank
the southeast corner

at

Fourth

dedicated

South
on

Street

Aug.

22,

George S. Eccles, President of the
Security
Corporation
and
FirT Security Bank of Utah, N.A.

First

at Salt Lake

public
held

Bank

of

St.

of

the

Louis,

the bank's board of direc¬
is announced by John P.
President of the bank. Mr.

who

in

Bank

other large

consolidation

of

Vice-President

Northwestern

tors,

National

and the Franklin-American

pany,

Trust

Utica

George A. Speer has been elected

Mo.

consolidation of the
Bank, Mechanics-

a

National

will

City

be

on

July, 16. The

welcomed

at

the

dedication and at open house to be
*

Executive

created in

joined with First National,
including the International Bank,
the
Liberty-Central Trust Com¬

Tulsa

stock.

was

banks

of

lately enlarged its cap¬
ital; heretofore $300,000 the Utica
Square bank brought its caoital,

chartered.

were

bank

and the '30's

the

likewise

in.

and the Thirdi

Bank

As of Julv

two

we

their

First

Co.

by

in:

his¬

St. Louis Union Bank. During 1921)

*

the

to

increased

namely,

1919

Bank's

Mechanics-Ameri¬

Bank

present

Louis.

adopted

beginning

actual

the

❖

issue of July 21, page 284, re¬

cently

its

tory
can

St.

of

was

National

First

1930.

$50,000.

*

addition

title

present

American

the

was

German-

it became the

Bank

States

Roos has been active in the muni¬

of

Bank

the

as

War I,

World

Third

cipal buying and syndicate

government

United

1872

in

bank staff a .year ago after
practicing law in Denver, and Mr.

tions

in

was

The

American Bank of St. Louis. Dur¬

ing

the

$138,595,000 and invest¬
$166,245,000, of which

resources,

ments

Assistant

of

$510,441,000; loans
$241,711,000; cash

were

discounts,

Department; and Roland C. Roos,
Manager

joined

1947

as

Northwestern

manager

of the

%

$30,860,000; cash resources of $17,168,000 and investments of $14,861,000, all in government securi¬
ties. First National's deposits on
May

$

of

-

$15,400,000. Total capital
on

statements
would

with

shares

770,000

of

accounts

pany

The

,

share of United stock outstanding.

31, United Bank and Trust
*

*

the

Bank

Bank

receive

will

holders
of

National

United

Louis,

St.

will

banks under

two

First

of

directors

which

agreement,

the

merge

none

date. Under the con¬

same

solidation

their

by

to

which was

merger

recommended
on

9,944

voted

stockholders

National's capital stock from 700,-

*

Con-

New

to

agreement of consolida¬
tion between the two banks, ef¬
fective Dec. 30. At the First Na- ,v

000

the

voted

Louis

St.

of

Company

ratify

The

$31,250.

*

as
of June 24, to $480,000 from
$300,000 by the sale of $180,000 of

*

Corporators of the
Savings
Bank
of

porators
three

*

*

special meetings on July 22,
the stockholders of First National
Bank in St. Louis and the stock¬
holders of United Bank and Trust
At

name

*

County, at Bristol, Pa. in¬

from

ing

cf

King Merritt

*

Farmers

creased

of

recticut

Two With

an

of $100,000.
dividend
of
that

capital thereby hav¬
ing been enlarged from $700,000 to
$800,000, effective July 11.

tional

Mo. —Eugene

Wornall

reports

its capital

stock

a

amount,

it completed the
new
12-story Seamen's Bank for
Savings headquarters on the site

Agron is with E. R. Bell Com¬

pany,

buili in

months

Broad

(Special to The Financial Chronicle)

19th

Commander,

proposed

Britain, Conn,

increase in

and
was

the architects. This

are

the

has

two

said

J.

Street

begin immediately
with
a
formal
ground breaking
ceremony on July 21. Completion
is scheduled for 550 working days.
James, Meadows & Howard, of
Buffalo, and Eggers & Higgins,
will

Wigh

—

Huron

to

New

(Special to The Financial Chronicle)

KINGSBURG,

West

scheduled

Kneeland E. Fuller has joined the
staff
of
Waidron
&

#

*

Reserve

with the rank of

this tour of duty

against
•I*

The New Britain National Bank,

ber

South Elmwood. Construction

Calif.—

in¬

year

A
Federal

Avenue,

to The Financial Chronicle)

increase

an

fiscal

dicated.

He

1950.

again

for

reserved

or

depositors
$2,300,000 for

over

fiscal year,

the

the Brooklyn Trust Co.

Manufacturers

over

Commander.

Lieutenant

of

time

all

an

rank

During the

%

22

joined the Brooklyn
Company in July, 1931 and

of

assets

at

are

high, representing an increase of
over $5,900,000 for the fiscal
year
ending June 30, 1955. Deposits are

New

July

on

Burke

Trust

that total

million

June

appointment of Charles A.

sistant

with

reported

The

Zorn.

parking lot bounded by Delaware

(Special to The Financial Chronicle)

tbe

*

Burke and Maxwell Lester

ment

decides.

price for silver.

therefore,

*

al¬

Joins Waidron Staff

years, except for

brief periods,

Messrs.

Authority
truck
terminal.
Mr.
Schoberl, in charge of operations
at the 42nd St. branch, has been
an Assistant Secretary since
1948.

*

was

Treasury

difficulties for

continue

can

if

the

objection

no

the

serious

other purposes
authorized by law.
For the last 20
few

office.

main

department. Mr. Hertzer, an As¬
Secretary since 1947, is in
charge of operations at the bank's
Spring St. branch in the Port

The

the

seigniorage of 30% is
left as "free silver," which can be
used
for
subsidiary coinage or

charge of operations

bank's

Barnwell, Hertzer and Schoberl
joined the bank in 1943, 1937 and
1939,
respectively. An Assistant
Secretary since 1948, Mr. Barnwell
heads
the
bank's
personal loan

Mr.

Korean crisis he was
recalled to active duty and served
aboard a destroyer.
He completed

M.

with

been

Assistant Vice-President five years

balance.

and

essary

He left

S. Trotman, and
Corporators
elected
are:
Roland
M.
Bixler,
Horace F.
Isleib, and James S.
Johnson. Carl G. Freese, President
Paul

was

short from a
monetary stand¬
point the legislation which would
be repealed by S. 1427 is not nec¬

of¬

The

ounce.

to

in

most

1948, the Treasury buys
it

per

then

a

United

silver

But the situation

ounces.

adopted in

domestically-mined

fered

a

The

of

production

(Special

legal require¬
of the purchase of silver
by

Mr.

branch.

St.

Banking and New York University
million ounces, an amount less and is in
charge of th° bank's 79th
than
Treasury requirements for Street Office, 1513 First Avenue
at 79th Street. Mr. Lester joined
subsidiary silver.
the Trust Company in July, 1951.
The world was
drawing on sil¬
ver
stocks, since consumption for He is a graduate of the University
of Pennsylvania and is assigned to
coinage and industrial use was 219
the bank's Fifth Avenue Office, at
million
ounces,
5 million
more

The Silver Purchase Act of 1934

all

coinage.

production

for

the

42nd

37

coinage.

reintroduced

more

by Horace C. Flanigan, President.

If the legislation were

the

cur¬

silver

use!

clerk

or

ago.

Holden, Stanley

since

Trust

York

through this period has used

silver

with

in

they

In

spectacular

a

career

Clinton
1937, was appointed
Secretary in 1942 and

Laverty

merger of

and

P.

and

sistant

decade.

has

bank's

facturers

Treasury has operated un¬
provisions of "the present
"legislation for a period of years

teller

a

decade

a

first established in 1792. Last
year
we
used
53
million
ounces
for

the

Thomas

Hertzer

his

started

men

lation, to buy in the market silver
The

Trust

Anthony D. Schoberl were named
I Assistant Vice-Presidents. Each of

coinage by using the bullion fund

der

Clinton

higher posts, accord¬
ing to an announcement July 23
by
Edward
W.
Smith,
Board
Chairman. Joseph C. Rogers and
Charles A. Laverty were named

have authority, under prior legis¬

needed for subsidiary coinage.

of

to

Mr. Rogers,
who joined the bank in 1932. has
is required to keep all forms of
served as Assistant Secretary for
United States currency at a parity
the
past
eight years. He is in
with gold.
This is the firm base
charge of the loan department in
of our monetary policy.
and

Although Pe

point of view of Treas¬

ury
operations today, the prin¬
cipal effect of this bill would be

be

The dollar is defined in

paper

secured by silver.

From the

international gold bullion

an

standard.

a

practical
question of

very

today a secondary,
primary monetary role. We

a

have

officers

Vice-Presidents

has

Silver

popula¬

our

area

Five

Company of New York have been
advanced

•

.

It deals with
both

W.

in both Atlantic
ers.

supplied from foreign

were

aboard three destroyers
and Pacific theat¬
the service with the

tive ctuty

Treasury has'no objection to its repeal. States, however,
the law, as it stands, creates no serious difficulties.

proposed

1940

In

During World War II he saw ac¬

CAPITALIZATIONS

Sec'y Burgess, in commenting on proposed repeal of the Silver
Purchase Act, reyeals the operations of the
Treasury under
the provisions of the existing law, and concludes, from a mone¬
tary standpoint, the Silver Purchase Law is not necessary and

The

ment at the Bank

Bankers

and

Operations Depart¬
of St. Louis.
he enlisted in the Navy.

in the

sistant

NEW

Under

the

I. '1'.

C.

from

CONSOLIDATIONS

By YV. RANDOLPH BURGESS*

Secretary of the Treasury

Vice-President since 19o3.

a

began his business career with
Corporation in 1937, and
1939 to 1947 he was an as¬

He

at the

building that day and

throughout the week.
First Se¬
curity's present Exchange Place
bank will begin operations in the
new
building
at
Fourth
South
Street
on
the
same
day.
The

building, including its three-story
annex,
contains
105,000
square
feet of space.

First Security Bank

>

Volume 182

Number 5450

operations

will

Presidents, Frank L. King, Presi¬
dent, has announced. E. Peter Du¬

Trust

val

are

building,
of modern "skin
type" construction similar to the
Nations

United

new

Shareholders

30,700

000

buillding

in

New York, has approximately 20,000 square feet of plate glass wall

and

elected

Frank

Assistant

and Robert G.
ant

D.

Secretary.

Lawrie

were

Co.

tal

Barngrover, Assist¬
Assistant
Vice-

of

being

scribe

Officers

Trust

of

Los

Union

offered

for

Bank

Angeies,

rights

&

adjacent communities. T. P. Coats,

Calif.

to

who

at

of

tne rate

one

new

share for each five shares held of

President Adams, formerly Assist¬
ant Trust Officer, joined tne staff

Chairman

board

of

First

West¬

of

directors, stated
that "our newest banking quarters
will be ready for occupancy as
quickly as the necessary remodel¬
ing of the existing building can be
completed."
First Western has
opened five new banking offices
to date this year, the last one be¬
ing in downtown Fresno June 27.
Total assets of the bank, with
headquarters in San Francisco, as

95,000 additional capi¬

shares

is

ern's

sub¬

lecord at 3 p.m.

California D.S.T.,
July 22. Subscription price of the
cqntain an¬
other 52,000 square feet of porce- of California Bank in
1934 and
$10 par value capital stock of the
lainized
steel
panels.
First Se¬ shortly thereafter was assigned to bank is $33 per share.
Tne rights
curity's operations will occupy the the tiust investment department. expire on Aug. 15. An investment
lower, main and second floors of Ke has held tche positions of As¬ banking group headed by Blyth &
the
building. Six of the oldest sistant Secretary, Secretary, and Co., Inc., has agreed to purchase
banks in the intermountain area was elected Assistant Trust Of¬ any
unsubscribed
shares.
Pro¬ of June 30 were $821,000,000.
in 1928 joined to form the nucleus ficer last March.
Assistant Vice- ceeds will be used to provide ad-,
*
*
*
of wnat is now known as the First President Larson, formerly Assist¬ ditional capital funds to keep pace
Dedication of the new City Na¬
Security system of banks, operat¬ ant Trust Officer, entered banking with deposits, which, it is said,
tional Bank of Beverly Hills, Calif.
ing in Utah, Idaho, and Wyoming. in 1923 with the Utah State National have increased approximately 60%
will be held Saturday, Aug. 6, with
Among the banks later joining the Bank, Salt Lake City. He was sub¬ since the end of 1950.
day-long ceremonies, it has been
*
!(!
*
system
was
Deseret
National sequently with the Federal De¬
announced by the bank's Presi¬
Five promotions, to the office of
Bank, founded by Brigham Young posit
Insurance
Corporation
in
dent, Alfred Hart. Participating
and said to be the oldest National Washington; he joined California Assistant Manager, at various of¬
in the official dedication, to be
bank in Utah. Total resources of Bank in 1949; at California Bank fices of Anglo California National
held in the bank's new $3,000,000
the First Security system are now he has held the offices of Assist¬ Bank,
of
San
Francisco,
Caiif.
City National Bank Building, Wilreported
as
approaching $400,- ant Treasurer, Treasurer, and was were recently announced by Paul
shire Boulevard at the corner of
elected Assistant Trust Officer in E. Hoover, Anglo President.
The
€00,00.0.
Roxbury Drive and Brighton Way,
*
*
*
March.
Assistant Vice-President men promoted will be Assistant
will be Attorney General Brown,
A special meeting of the share¬ Tropea began his banking career Managers of the following offices:
Mayor George W. Davis of Bev¬
holders of the Citizens National in Los Angeles in 1945 and has Russell H. Grenning, East Bakerserly Hills, and numerous business,
Trust & Savings Bank of River¬
been
associated
with
California field; George R. Hester, Eureka;
industrial, b a n k i n g, and civic
Since
April, William S. Pfeifle, San Jose; Elmo
side, Calif., will be held on July Bank since 1948.
leaders.
!
29, for the purpose of considering 1954, he has been manager of the M. Smith, Redding; and Gerald
an -agreement to consolidate Citi¬
bank's Sixth and Western Office Wells, Van Ness Avenue office,
Exterior

area.

walls

bank and tthe Yucaioa Vahn

zens

National
The

Bank, of Yucaipa, Calif.

consolidation

fected

under

in

Los

Officer

be

ef¬

of

the

couver,

..•

special meeting of the share¬

Angeles has been

called for Aug.

12, to consider proposals to merge
Union National Bank of Pasadena,
The Covina National Bank, and
Fishermen

&

San

Pedro,

into

The

proposed mergers

approved
tors

California

in

Bank

his

1952
own

and

of

a

office

in

McNichols Road.

new

Banks

be located

previously conducted

on

(Special to The Financial Chronicle)

Westminster Avenue

Edwards

&

Sons, 30
Brentwood Boulevard.
A.

Orange County to serye
Westminster and Midway City and

G.

&

Co.,

York

office

to

W. G. Nielsen Adds
(Special to The Financial Chronicle)

BURBANK, Calif, —Roland M.
Hanson

is

now

Co..

sen

with

3607

or a

solicitation oj

an

With Pacific Coast Sees.7
(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Jo¬
seph M. Binns is now connected
w*ith F'acific Coast Securities Com¬
pany,

240 Montgomery Street.

Paine, Webber Adds
(Special to The Financial Chronicle)

PASADENA, Calif.—Donald M.
Wright has joined the. staff of
North

Garfield

Avenue.

North

the

(Special to The Financial Chronicle)

Clem

the

added

been

,

.

.■

■

■"

.

.

D. V.

MiPer, Executive Vice-Pres¬
ident, will become Vice-Presidents

V -

-

■

■

;

'

■

Stock

and

Exchanges.

■

Los

i

913,531 Shares

of California Bank. With his pres¬
ent staff,
Mr. Bradford will re¬
in

main

dena

charge of the two Pasa¬
Sumner
Dietrick,

The

offices.

President

of The Covina National

Goodyear Tire & Rubber Company

Bank, of Covina, Calif., and J. D.
Reed, Vice-President and Cashier,
will

Vice-Presidents

become

Common Stock

of

California Bank. Mr. Dietrick will
be

in

charge

of the

Covina

Par Value $5 per

Share

*

and

West Covina offices with the pres¬
staff

ent

Upon

continue

to

customed

in

their

ac¬

places.

the

-

/

wjth Fisher¬

merger,

effective,

becoming
Bank
will

California

Lelow and at the rate of

discontinue operations at the loca¬
tion it has occupied in San Pedro
will

and

relocate

in

issued to holders of its outstanding Common

Stock transferable warrants,

rights to subscribe for these shares, at the price set forth
share for each ten shares held, all as more fully set forth in the

expiring August 8, 1955, evidencing

& Merchants Bank

men

The Company has

prospectus.

one

Common Stock may be offered by the

underwriters as set forth in the prospectus.

the

larger
quarters of the Fishermen & Mer¬

chants

chants

Di

Fishermen

of

Carlo,

&

Mer¬

Bank, will become Chair¬

of

man

the

W.

Pedro

San

Advisory
Bmk,
Rash, Executive Vice-

Committee
and

Pietro

Bank.

President

Subscription Price $50 per share

California

of

S.

President. will become Vice-Pres¬
ident of California Bank. The staff
of the present

will

Bank

that

consolidated

Fishermen

of

&

be obtained from such of the understtjned
in the prospectus) as map
ojjer these securities under applicable securities laws.

Copies oj the prospectus

office of California

be

(who

with

are anion/)

be
gallp

Merchants

map

the underwriters named

Bank.

Deposits of California Bank will
be

increased

000,000

by more than $42,the effective date of
according to Frank L.

upon

the mereer,

Dillon, Read & Co. Inc.

President
'of
California
Deposits nfThe four banks

King,
Bank.
as

of June 30.

as

follow?: California Bank. $683

368,621;

National

Union

Bank

-

of

Pasadena. $19.669.9.91: The Covina

National
ermen

Bank,

$12,536 341:

& Merchants

Fish¬

Bank, $9,920,-

Blyth & Co., Inc.
'

4

406.

Reference
of July

was

our

issue

Bank

to

take

over

the Union National Bank of Pasa¬

dena

and

chants

the

Fishermen

&

of Los Angeles

M. Adams,
J.

Harriman Ripley & Co.
Incorporated

Lehman Brothers

Smith, Barney & Co.

Kidder, Peabody & Co.

Merrill Lynch, Pierce, Fenner & Beane

Stone & Webster Securities Corporation

Bank.
*

and

,

*

G.

*

have elected Wil¬

Golden R. L°^son,

Tropea Assistant Vice-




Union Securities Corporation

Mer¬

The directors of California B^nk

ton

Lazard Freres & Co.

Glore, Forgan & Co.

14, page 185, to the plans

California

of

made in

Kuhn, Loeb & Co.

The First Boston Corporation

1955, were reported

White, Weld & Co.

Dean Witter & Co.

i

-T

to

the

Angeles.

Mr. Clem was

ojjer to buy securities.

■

...

Co., 393

previously with Sutro & Co.

V-

;

Drive, members of

York

July 26, 1955
K'-

j

HILLS, Calif.—John

has

New

tional Bank of Pasadena with Cal¬
v

i.

With Daniel Reeves Co.i

respective institutions.
merger of Union
Na¬

ifornia Bank, S. C. Bradford, Pres¬
ident of Union National Bank, and

Magnolia

Boulevard.

have been

ojjer oj securities jor sale

Niel¬

G.

W.

West

California Bank.

an

Broad

25

Street, New
York
City.
New
'phone is BOwling Green 9-750(1..

Bank,

This announcement is not

mem¬

Stock Ex¬

the removal of

announce

main

South Beverly

CLAYTON, Mo.—Henry B. Ivey
has been added
to the staff of

will

in western

law practice.

their

New

staff of Daniel Reeves &

earlier.

approval

gave

First Western's newest office

change,

W.

A. G. Edwards Adds

banking of¬

The State Superintendent of

fice.

1953.

of the

bers of the

BEVERLY

July 20 with the approval of the
Federal
Deposit Insurance Cor¬
poration

In New Location
Cohen, Simonson

Paine, Webber, Jackson & Curtis,

DETROIT, Mich. — Louis E.
Nykamp has been added to the
staff of Ahston & Co., 15315 West

southeast

the

1

Gotten, Simonson

50

(Special to The Financial Chronicle)

of Los Angeles became assured on

joined the staff of California Bank
in

%

$

establishment

early

Company

Barngrover

Secretary

by the boards of direc¬

of the

Upon

Merchants

with

Assistant

Joins Ashton Co.

$

First Western Bank and Trust

new

Riverside, which in the staff of California Bank in 1951.
event
of
ratification, would in¬ Assistant Trust
Officer
Lawrie
crease its stock outstanding
by 5,500 shares to a new total of 241,500.; practiced law in Vancouver,
B. C., before becoming associated
*
sfc
Sis
A

/■

,

The

Citizens of

holders of California Bank of Los

Francisco.

San

Secretary,

charter

the

.

Angeles;
Assistant Trust
Duval, formerly Assistant
practiced law in Van¬
B. C., prior to joining the

would

15

'(383)

Tne $3,000,-

occupy

feet of space.

square

The Commercial and Financial Chronicle

...

A. G. Becker & Co.
Incorporated

16

The Commercial and Financial Chronicle..

(384)

.Thursday, July 28,

^55

1955
peak earlier this good recent growth and also is
Conference, the market spec¬ its
the month, but this week it was still selling at a yield that is a

tators continued to stress

THE MARKET... AND YOU

"international"

so-called

firms, those that have large

apparently
to

a

the

on

way

assault

new

back

bit better than average.

the

on

[The

this

expressed in

views

article do not necessarily at any
operations or sales. pinnacle.
time coincide with those of the
if
if
if
such favored issues
Chronicle. They are presented as
added
to
many
lists were
DuPont showed occasional those of the author only.]
Industrial stocks forged to feats included the ability to Clark
Equipment with some demand, but it was a pretty
another all-time
high level jump half a dozen points in of the earnings estimates run¬ tame
performance after some Seattle Firm Member of
again this week, but the per¬ one session.
ning a couple of dollars above of its recent gyrations. Allied
❖
*
*
San Francisco Exchange
formance was even more se¬
the $5 reported last year.
Chemical has been similarly
SAN FRANCISCO. Calif.—The

By WALLACE

lective than has been the

There

case

foreign
Among

STREETE

little

was

encourag¬

if

Wide sprints by ing in the profits statements
Bethlehem
Steel,
Standard of the plane makers; and the
Oil of New Jersey and Gen¬ defense section, accordingly,
to here.

up

eral

Motors,

chips,

bluest

were

a

blue spent

of

major

reason

a

sional

the good action recorded urgent because most of the is¬
sues have been so thoroughly
by the industrial average.
deflated from their 1955 peak
*
*
*

long
the

tween

divergence
industrials

be¬
and

of

member

ratic

er¬

prices, with some of the issues
20 to 30 points below their

mates

are

that recent orders

group,

the middle of the week to

in

the full-year end the gyrations of the
each of the last senior shares which have had
rier index making no threats acting than aircrafts gener¬ three
years. The prime bene¬ a better than 50-point spread
largely due to a new
at its June peak which was ally,
ficiaries of this improved pic¬ on the year.
power plant it has developed
several
if
if
if
ture will be ACF Industries
points higher. The
for
helicopter use for the
and Pullman.
utility index, which was even
Store stocks, including
military services.
more
if
if
laggard than the rail
%
%
*
some of the food chains, were
one, finally got into step with
Sharp increases in first half showing a still spotty but
the industrial average and for
Merger Developments
profits built up some still somewhat new popularity.
a week now has been
pushing
Despite the rise as indicated mild demand for some of the Some better profit reports
into territory not seen in a
by the industrial average, the issues around,
including were building up interest,
market was dominated by a
quarter century.
Eaton Mfg., Texas Co. and with May Department Stores
❖
*
*
good share of disappointment Walworth. International Tele¬ expected to boost its fiscal
rails continued with the

Avco

best.

bit

a

was

have

better

car¬

past

run

in

output

election

.

How
was

selective
in

even

section

was

when

on

nearly twice
declined

issues

as

early

previous
a

as

day

many

advanced.

tempt
over

this

involved

down to

at¬

an

by the firm to take
Tiffany which, appar¬

ently, wasn't either expected
overly welcome since the
issue had a rather bad sinking

It broke out on the topside
spell
again th's week with advances

on

it.
❖

❖

*

indications that a round of
well in
The Brown Shoe-G. R. Kin¬
balance. It was certainly not
gasoline price increases were
ney merger
plan was obvi¬
a
breakaway market, even
underway served to heighten
ously well discounted in ad¬ interest in the oils
though the average is now
generally.
vance and both issues ran into
some
20
Gulf Oil took a dividend in¬
points above the
some rather
pronounced sell¬ crease
"target" level of 450 which
calmly and Warren
ing. Stockholder antipathy to Petroleum
was supposed to have
erupted on a bit of
signaled
the Missouri Pacific reorgani¬
at least a correction.
above-average strength with¬
zation, plus some unofficial out
if
sjs
if
any particular explana¬
and

declines

pretty

downward

Steel

It

was

Plays

largely

earning
week for planned

a

revisions

power
new

of

in

some

this issue rather

Bethlehem

of

one

handful of
session.

tion available

of the

prominent

weakness that included
a

the

in the

if

if

news.

Continued

Even

where

well,

loss

due to

the

rumors

of

a

further in¬

a

*

.

*.

.

President.
The address of the new member
firm is 1411 Fourth Avenue Build¬

The other of¬
Stanton
Frederick,
Executive VicePresident, and Edwin L. Rogers,
ing, Seattle, Wash.

ficers of the company are
W.

Vice-President.

Paul

a

Minshall

Organ, Inc.

COMMON STOCK

rotating leadership with
Cyanamid appear¬

(Par Value $1.00
'

■

-

--

per

any

Part of the reason for
favoring the issue is that the
volatility of the "wonder
drugs" is well hedged by its
work in heavy chemicals and
agricultural materials, which

share)

may

as

group.

Price $3.00 Per Share

copies of the offering circular

recommenda-.
other issue in the

on as many

tions

he obtained from

account

for

more

than

two-

thirds of sales. It fits into the

BARUCH BROTHERS & CO.

INC.

UNDERWRITER

current

preferential pattern
easily by virtue of more than
half

44 Wall St.




New York 5, N. Y.

HAnover 2-2244

a

dozen

Market-wise,
backed up a

foreign plants.
the

>

SAN

Gabbert and George

—
Gilbert
L. Payne are

connected

Paul C. Ru¬

now

to

shown

Calif.

JOSE,

with

dolph & Company, Bank of Amer¬
ica Building.

Join Rutland Co.
(Special to The Financial Chronicle)

Calif.—Ludwig

LOS ANGELES,
Gossmann

W.

Scannell
land

Jr.

and

are

Company,

Edward

now

with

R.

Rut¬

650 South Grand

Avenue.

With Wm. R. Staats
(Special to The Financial Chronicle)

PASADENA,
Mosher, Jr. is

Calif.—Frank B.
connected with

now

William R. Staats &

Spring

Street,

Co., 640 South

members

New York and Los

of

the

Angeles Stock

Exchanges.

from page 5

is

particularly worthy of careful study, as the number

contests continues

of proxy

mount.

to

working

shareholders

may

out of a' mechanism for a secret ballot by
take a little time, and may involve future

the writer, there is nothing
of such an operation.
management and insurgents alike would send out their
campaign literature and proxies, just as at the present time. The
only difference would be that the proxy ballot itself would not
be signed.
It would merely be marked for the desired team,
and for or against the proposals up for discussion.
This marked
but
unsigned proxy would be sealed in an
envelope, which would bear the name and address of the owner

legislation,

in

but,

insurmountable

the opinion of

about

stock

the mechanics

Both

and the number

of shares owned.

The sealed envelope
of

tabulation

the

e.g.

would be sent to the company in charge
Ballot Association, or a bank

the Honest

other business connection whatever with the company.
Watchers for both sides would be present, but merely to check

having
the

no

actual

voting of the shares from the envelope, not how the

ballot is cast.

the-name-having been■ marked off
unsigned secret ballot would be then
put into the ballot box, marked with the number of shares en¬
titled to be voted and, after the closing of the polls, counted like
any other ballot in any other election.
the

stock

books,

American

ing

Rudolph Adds

(Special to The Financial Chronicle)

The number of shares and

Chemical issues fared well
on

Francisco Stock

Exchange, has been announced by
Ronald
E.
Kaehler,
Exchange

Observations...

on

Strong Chemicals

100,000 SHARES

has

Inc., to member¬

the San

Mechanics Practicable

Metals continued to do

on

which

issue

The

particularly because of the
points within copper price squeeze partly
a

attention

turned

if

crease
in the price in South
long-anticipated splits did
America. It was of little help
dividend raise for Carpenter come along, the profit-taking,
to Rhodesian Selection Trust,
Steel all served to keep mem¬ once the good news was out,
made for some erratic action. newly-listed foreign issue,
bers of this group in the lime¬
*
#
in
which was a repeater among
light throughout. Few were
the new lows largely because
Geneva-Stimulated Interest
as spirited as Bethlehem over
its trading life has been too
in International Firms
which split hopes have been
brief to build up much of a
As a result of the concilia¬
high ever since Big Steel
changed its capitalization. Its tory air following the Geneva price range.

the other steel makers and

this

securities, made

plays in the steels. Big Steel's
Tuesday meeting and that of
today, plus good
earnings reports from some of

year

Dairies

Badgley, Frederick, Rog¬

Morford,

in

ship

.

or

Badgley,

c

results significantly over
last year. The group generally
the
ternational business and from has been selling at 4 to better
predictions of the best earn¬ than 5% yields which is well
above the average yield in the
ings year in its history.
blue chip section and height¬
if
'
if
if
ens
the expectation of new
Oils and Metals Pick Up
investor support on any good
Apart from the split hopes news. In the food lines, the
centering on various issues, imminent listing of Foremost
benefited from both
attention being given in¬

phone

for Bulova

hopes

Watch boiled

indicated

posted

was

merger

causes

rather

Some

buying

industrial

this month when the

peak

week.

the

the

various

from

Selectivity

of

&

ers

_

Extreme

H.

Charles

of

President of the Seattle securities
firm

the

gathering momentum, end¬ featuring for the most this
ing a decline in orders under¬ week on the heavy side that
way since 1951, spurred
at has carried it around 20 points
its
exhuberant
least the start of a buildup in under
high
interest in this depressed end when the stock split was an¬
of the list. Preliminary esti¬ nounced. It became effective

for

The

left to Monsanto to be the

be

wasn't

that

quiet but buoyant, and it was

in railroad freight
orders that appeared to

car

quiet time with occa¬
easiness

if

if

A surge

had

bit after posting

the

Vote Can Be Changed

time prior to the closing of the polls on the day of
the annual meeting, a shareholder wishes to change his vote,
he can notify the inspectors of election that he so desires.
His
If at any

already-voted proxy can then be located through the use of a
numbering system, and the new proxy vote takes the place of
one.
Since neither side involved in the contest will

the vacated
know

how

his

proxy

has been cast in the first place, the mere
on the floor or otherwise that he has

fact that he has announced

changed his vote will be no indication of how he is finally
If we make an
attempt to work out an Australian

voting.
ballot

suggested pattern, the principle of the secret
ballot, recommended as well by Robert R. Young, can become
a
reality.
Our proxy contests will then increasingly represent
the will of all the owners, since we will have eliminated the
danger of intimidation of employee-shareholders and those who
are
dependent on business from the corporation in any way.
somewhat along this

LEWIS

D.

New York

GILBERT

City,
July 21, 1955.

Volume 182

Number 5450

John B.

...

The Commercial and Financial Chronicle

CLAYTON,
ment

the

G.

of

has

Mo.—The

John

of

staff

Barton

the

of

Our

Payne

&

Company

by

Boy W. Jor¬
dan,
Clayton
Manager.
Mr.

,

began

with

reer

Wall
i

available.

The

a

and

St.

Louisans

as

Assistant

This does not

it is

evident that

his

Among
program

.

vision.

advertising

the bank tq tele¬

of

motion

local

the

included

latter

The

bank

employees
the pub¬

and

officers

to humanize the bank to

talked

has

He

lic.

to

in

groups

Missouri and Illinois com¬
on
community planning
and other topics.
For 17 years Mr. Payne served
the home office of the

Metro¬

politan Life Insurance Company as
Consultant on management to the

of events.

course

will

and to its thousands of
policyholders
throughout
the United States and Canada. He
lias written several hundred man¬

come

On
be

no

member of New York
University he directed courses in
business
organization and man¬

resistance
creased

'

has been active

Payne

in

^

American Statistical Associa¬

It is evident that

to

.

>

,
J

i

'

certain

a

»

,

.

k

'

■

money

Downgrade
of

1995

|

which

was

amojunt of inflation

Investment

their

are

Field

Day

Club on

Country

securities

Even

and

though the

Los

one

measures

in the

stock

market to

degree.

.

of

■'-*

ithese

slow

;

is

the

common

aforementioned

its progress to

on

2V3%

any

powers

that

be,

great

Defensive

put

on

a

"mild

money

This advertisement is not

an

tightening"

offer to sell

Angeles,

or a

National

Calif.,

District Bonds, due

Seattle;

Bank

of

Eldredge

Commerce

&

bonds

are

scaled

to

yield
according

* \

Salomon Bros. &
ELGIN, III.—Claude M. Hamlin
Hutzler; White, Weld & Co.; Stone has become associated with Nehr¬
&
Webster
Securities
Corpora¬ ing & Ricketts, 4 South Grove St.

solicitation oj

,

an

offer to buy these securities.

1,036,052 Shares

Telegraph Company

Common Stock

Rights, evidenced by subscription warrants, to subscribe for these shares are being issued by the
Company to the holders of its Common Stock, which Rights will expire at 3:30 P.M., Eastern

PORTLAND,
Oreg. — Marjorie
is with Zilka, Smither &

Daylight Saving Time,

on

August 8, 1955, as more fully set forth in the Prospectus.

Co., Inc., 813 Southwest Alder.

John Whitney

SUBSCRIPTION PRICE $20 A SHARE

Riter

passed

The several underwriters may

Staff

Price set forth above

(Special to The Financial Chronicle)
more

ST.

LOUIS,

Mo.

Schoemaker is now
& Company, Inc.,

John
H.
with Slayton

offer shares of Common Stock at prices not less than the Subscription

(less, in the

case

of sales to dealers,

than the greater of the last sale or current

any

concession allowed to dealers) and not

offering price of the Common Stock

on

the New York

—

Stock Exchange plus an amount

equal to the applicable New York Stock Exchange commission.

408 Olive Street.

With King Merritt
Copies oj the Prospectus

(Special to The Financial Chronicle)

SPRINGFIELD,
D. Murrell is now

ritt &

Mo. — Richard
with King Mer¬

named in the

may

be obtained in

Prospectus and others

any

as may

State only from such of the several underwriters

lawfully offer these securities in such State,

Co., Inc., Woodruff Build¬

ing.

With B. C. Christopher

:

(Special to Tee Financial Chronicle)

OMAHA,
Travers

has

with

C.

B.

Neb.

—

Maurice

become
associated
Christopher & Co.,

Grain Exchange Building.

. -




Kuhn, Loeb & Co.

T.

-

July 25, 1955.

Lehman Brothers

ot

Incor¬

<

Corporation;

The offering is made, only by the Prospectus,

The Western Union

Co.

porated;
Hayden,

ISSUE

B. Hagen

Joins Slay ton

f
'

Noyes & Co.

(Par Value $2.50 per Share)

City,

*

tion; Baxter, Williarqs & Co.; Hallgatften & Co.; Hayden, Stone &
Co.; -E'stabrook & Co.; Hemphill*

r

With Zilka, Smither

Co., New York
away July 11.

•

:

Stern Brothers & Co.;
Miller & Co.; * Fairman,
Harris & Company, Inc.; A. Web¬
from 1.30% to 2.55%,
ster
Dougherty & Co.; Rambo>
to maturity.
Close & Kerner, Inc.; Thomas &
Other members of the offering
Company;
Harold
E.
Wood
&
group include: Weeden & Co. In¬
Company; Schaffer, Necker & Co.
corporated; Blair & Co. Incor¬
porated; Phelps, Fenn & Co.; Kid¬
Nehring Ricketts Add ♦
der, Peabody & Co.; Goldman,
(Special to The Financial Chronicle)
Sachs
&
Co.; - Union Securities
The

forces, which the

have

Los

School

Aug. 1,1956 to 1980, inclusive.

stock

very important ones
in the economy, give a few of the reasons why the Government
market is in the doldrums and still in a defensive frame of mind.

The

Angeles Schools

$25,000,000

."''V..''•

'

Government Market
The

(Special to The Financial Chronicle)

&

•

.

which is being used in the equity
market is not considered to be excessive, and further limitations
on
the amount which could be put to work there would not be
unexpected, it will most -likely j.take more than credit rationing

is General Chairman.

John Whitney, partner in

\
f

Fidelity Union Trust Company*
Newark; Braun, Bosworth & CoIncorporated; First of Michigan
Harriman Ripley & Co. Incor¬
porated; Halsey, Stuart & Co. Inc. Corporation; Bache & Co.; A. GBecker & Co. Incorporated; Adams*
and Lehman Brothers are
joint
McEntee & Co., Inc.; Rand & Co.;
managers of a syndicate offering

money

Da;

day, Sept. 22. The Cocktail Party
will be held the night before, at
a place to be selected later.
Phil
J. Tierney, Harris, Upham & Co.,

£

'

/

.

having
at the
Thurs¬

i

Offered to Investors

The Nebraska

Bankers

annual

Omaha

—

to

quite a few switches were being made*
outstanding 2%% and 2lk% bonds, not pnly to register
loss, but also to add to holdings of the 3s of 1955.

$25,000,000 Bonds of

improving business picture, there is not only
it, but there is also greater com¬
petition for the available funds. This along with the "modest
pressure" program of the monetary authorities is keeping the
money markets on the firm side. There is also a certain amount
of this money which goes into, other forms of investment than

NEW

To HeM Field

used

It was evident that

Nebraska lav. Bankers
OMAHA, Neb.

:

the

potent in that capacity.

demand for money to finance

rc
■

for

on

bond

In spite of the fact that the recently reopened 3% bond is
issue in the longer Government
market, there is
not likely to be any really important
buying in this or the other
more distant Treasury obligations until there is either a
change
in monetary policy or some
of the forces which have been
taking funds away from the Government market become less

Because of the

a

.

.

to

as

/

The Stock Market Factor

other organiza¬

and many

answers

-

higher prices of goods and products because of in¬
This will tend to prevent prices getting too far

.

tions.

of the

the best liked

very

out of hand.

tion,
the
American , Marketing
Association, the Society for the
Advancement of Management, the
St. Louis Chamber of Commerce,
the former. Sales Managers Bu¬
reau,

new

issues.

wages.

faculty

agement.

one

Treasury, also went the way of all s
flesh last week when it went under the issue price of 100. With <
the -breaking of
the par level for " the longest Government (
bond, the rest of the longer Government obligations were under :
pressure so that new lows for the year were registered in these I

the other hand, there is developing^ and-there seems to
to believe it will not continue to gain strength, a

Government

Mr.

The recently floated 3%

raise

reason

market.

agement reports, many of which
published. Some have
.Bad; extensive circulation.
As a

is

Government

out of the

group

liave been

in

higher price, higher wage relationship which
currently being worked out between labor and management.

is

company

,

Long Bonds

now.

much on the favor¬
able side and even though it is realized that installment sales,
and the financing of homes through long-term mortgages are very
important forces in the uptrend of the economy, there is nothing
on the horizon yet to indicate any important
change in the existing

munities

the

case

Government securities with the

The business pattern continues to be

many

at

be the

tax

pictures

commercials and the use

the

of

di¬

he

"Fortune Magazine"

in

making
for

duties,

national

introduced

and

Payne

This

interest

needed for

from the

r

other

v

the

rected

B.

and Trust Company.

Bank

merce

John

Com¬

-

to

seem

The Business Picture

Mer¬

cantile

However, if there was any¬
about to happen they would be

or

:

the- President

the

are

vacations.

competition for the investment dollar is getting keener

to

of

on

little

so

securities, aside {
short-term liquidity purposes, or '
for the payment of taxes in the future which is
being carried out ,f
by means of tax anticipation certificates.
(

attractiveness.

best

to

are

is

those that

exception
of the nearest term maturities are among the victims of this
development. Because of the better returns which are available
in other investments, the more distant Government securities have
been making new lows for the year.
Also, the thin, professional
market which prevails in these issues does not add
to their

tment

is

He

why there

from

_

banking house.
known

able in Government securities.

the exception of the shortest
obligation, is very much on the thin side, only a
minimum of interest being registered at the present time. To be
sure, the money market is in that time of theT year when interest
does lag, because not a few of the important investors in Govern¬
obligations

•

,

Money that can be used for loans, whether they be for com¬
merce, industry and farming, for installment purposes, or for
mortgages still give lenders a much better return than is avail¬

liquid

ment

Street

n v e s

market.

The Government market* with

most

thing worthwhile happening

Payne
his ca¬

mainly outside of the Government

Governments

on

By JOHN T. CHIPPENDALE, JR.

to

office

an¬

nounced

Reporter

appoint¬

Clayton

Walker

H.

been

program which has tended to make money somewhat more costly
but which lias not to any extent
yet made it more difficult to get
funds which are being used

Pajie Joins

G. H. Wator t Co.

11,

(385)

;

Clark, Dodge & Co.

Salomon Bros. & Hutzler

18

The Commercial and Financial Chronicle...

(386)

Thursday, July 28, 1955

appliance, automotive parts, drug

Crime and Accidents Decreasing

and textile fields.

Including the $35,000,000 of new
debentures, Container Corporation
will also have outstanding 84,382
shares of 4% cumulative preferred

By ROGER W. BABSON

Mr. Babson contends

population is growing

our

reality there has been

so

fast that in

stock,

decrease in crime and accidents when

a

It

is

the

present

about

bad

much

so

crime,

foreign

news—

Every

thing

impar-

the

t

;

and
are

11 i

the

n g '

"•

I

and,accidents are
per-capita basis, the
bad.

figures

are not so

ulation

is growing

crime and

newspapers

the

think, since Hoover

White House

tion

the

of

creased

equivalent

population
ulation

if,

This

the total

say,

,

been

are

dumped into the United States in
the

last

25

would

years,

we

you

have

Automobile
admit

I

that

terrible.

are

parking

Unless

Offer Container

city fath¬
soon,

our
»

decrease, manufacturers

...

,

not sell

Corp.

3.30% Debentures

merchants will suffer. When their
sales

•

can.

_

,

M1.

nAA

nn„

„

new issue of $35,000,000 Con-

.

Ployment increases.
But-cpnsidenng the number of automob. es

Corporation of
America
sinking fund debentures,
due July 1, 1980, was publicly of-

it

fered yesterday

as

goods and

many

remarkable that

is

place to park

any

Yet, should
mobiles

lind

can

underwriting

ignorance

shortsightedness of

and

would

any

city do today without the automobile business?
ers,

Close up the deal-

stations/ and

shops, and

pair

have left?
would be
would

A

be dealers in hay and

the

auto

should

we

industry and

parking.

Bounties of
__

oats

cities would

our

However,

both

sufficient free

not

only

of

gr
grain

wonderful

in

tion

we

and

other products

country
have

have tons of eggs,
in

butter,

storage. No

in the world begins to
blessings.
This applies

our

to the wealth

of the

sea

and

the trees of the forests. Each week
as I read a
large Sunday" paper I

regret the

acres

land which
me

of splendid wood-

destroyed to give
the newspaper.
Yet, I am asthat

sured

the

new

growth

ex-

-beginning July 1 1955 to par be^nrng July 1,, 1977. Commencing
*96*, a sinking fund will operate calculated to retire 76% of theGntlre issue prior to maturity.

Exchange

ANGFf FS

been

made.

Since

,

fioort;

~

CAf,or

.

year 1954, more than

When I learn of the great rivers

0f the

Los

have

Stock

was

placed

jt

.

' announced'

1

This

wire

new

expected

in

bv

a AnS w0etharheUTust

now

learning about the

ura-

where and

a

cf

us

We

to

of

be found

any-

pound of which may

do the work of 2%
of coal.
It seems

million pounds

wicked'for-any

was

It, should ,make,. possible,
he
retention of more

continued, the

roast

oTher

to

bT

sellers

traded

the

on

Francisco

Los

and

The

bst

will

the

be

entire

Ex-

expanded
180

More

to add about

is

estimated

taken down

to

stocks

that
to

&

Bank

there have

been




in

few developments

a

stockholders

the

some¬

assembly plant at Mahwah, N. J., expected

one-third

the

of

net, which woud

increase

in

revenues

It
be

can

about $3 million annually

mean

Other important developments are (1) exchange

moderate

of company's

savings

in

income

taxes;

of

placing maintenance

(2)

work ori a mechanized "production line" basis, expected to

way

produce

important

economies

General Motors to build

a

in

time;

of

decision

recent

and

automobile body plant at Mans¬

large

field, Ohio, to be served exclusively by Erie.
At

as

annual

the

the forecast of

meeting jn April, management stated that if

rise in gross revenues this year of $10.5

a

company

would

be

able

to

earn

million

least $1

at

per

.

—

Raymond Carev

Co

Inc

Fir^t

than reported in 1954.

common

after

haYbeeome asTociated^Uh^
Ravnor

the difficulty of offsetting rising
freight rates during a period of traffic erosion.

$5 preferred stock for 5% income debentures, expected to produce

per

tional

combination of circumstances, including the

before taxes, or roughly $0.62 per common share after taxes.

(Special to The Financial Chronicle)

v

a

sharply

$9 million annually to company's gross revenues.

more

Neb

a

at the large new Ford

share

OMAHA

Since

net earnings available for the
wide range. From $5.02 a share in

1941,

business, and

recently,

realized,

w

,

somewhat larger iri relation

The major item of current interest is the start of production

were

wj,

was

some

Erie situation which have brightened hopes of

Waiter Kavynor Adds

1

of the

one

was

consideration to
this fact, the new common stock
gave

bituminous and anthracite coal by competitive

on

costs and adjusting

Angeles,

Eastern

changes.
include

dropped

It

puzzle as
followers.

of other reorganized carriers.

case

completed in

was

commutation

in
..

and

be limited to 56 of the j80 stocks
j

which

a

its

fuels, loss of coal traffic due to railroad dieselization, heavy losses

The new facjbty> which is subiect to a
day trial Period, will

San

as

reorganized in 1941.

have fluctuated in

inroads

marked

buyers of the other city,

tri

the

was

good.

now

markets

with

contact

than

systems.

still

but

to

what.

wost

these

of

shares

spectacular

both in comparison with its
other rails generally. The rather

Because of

performance reflects

facilities

change facilities

city; jn

plan

rose

is

arrangement

exchange, Mr. Paul said,
affording members of each exchange the use of the other's ex-

the

less

to only $0.40 a share in 1946;
nicely in 1948 to $4.09; dipped again to $0.93 in 1950;
$3.20 a share in 1951, but in more recent years declined
steadily each year to only $0.75 a share in 1954. This erratic

W. G.

the other

on

to do with the better-than-

the

recovered

whereby brokers unable to buy or
sell on their own exchange may
try to complete the transaction on

,

well

as

funds,

This would suggest about;$2.75

share before sinking funds, and about $1.75
fair

protection for

The prospect of some

the

$1.50

annual

share

a

dividend

improvement in earnings this

rate.

which

year,

Na¬

might continue into 1956,

Building

may

provide the spark for a somewhat

better market performance for Erie than has been witnessed over
the past

With Green, Erb & Co.

year.

ahead to the

(Special to The Financial Chronicle)

At the

same

time, Wall Streot analysts must look

probability of higher

wage

costs in 1956 and the effect

of another round of wage increases on marginal carriers

CLEVELAND, Ohio—George R.
Taylor has become affiliated with

Green, Erb & Co., Inc., N. B. C.
Building, members of the Mid-

which

has

enjoyed

by

not

the

been

blessed

with

the

degree

southern and southwestern

of

rails

like Erie,

traffic
over

growth

the

past

15 vears.

50% of net sales of the COmPar)y west Stock Exchange,
excluding The Mengel Co., a
tially-owned subsidiary, was

par-

rep-

\i7#i.L

1

LI

•

Joins

n

1 WO Wltn riOSKins l^O.

fibre

by

corrugated and solid
containers, appro*-

shipping

pulp and miscellaneous products.
Consolidated net sales for 1954
were
come

$186,595,000

on

Principal customers for the

com-

(Special to The Financial Chronicle)

(Special to The Financial Chronicle.)

COLUMBUS,

;

Ohio-Harry A.

,rthuT^'now^eornecte!T uifh J. OT^w^hS'blcome'asredat^d
Members of^he^e^YoA Avenue^He
form^rl'"'with
was

Detroit Itrek ExchSTgJ. * rZL

Goffe

Pruett AduS to Staff

R. H. Cobb Opens

(Special to the financial Chronicle)

which net in-

of $13,604,000 was realized.

Bache Adds to Staff

Roney Staff

(Special to The Financial Chronicle)

ATLANTA,
has

been

Ga.

added

—

to

John
the

Roesel
staff

,

FT. WORTH, Texas—Robert H.

of

Cobb, Jr. has formed R. H. Cobb
Company with offices at 2550

&

complain about anything, pany's products are in the food, Pruett and Company, Inc., 710 Boyd Avenue to conduct a securiare wasting precious clothing, soap, beverage, furniture,*~Peaehtree
Street, N. E.ties business.—

perhaps

35.0

laggard,

reorganizations

1942, earnings

Los

fibre*ran^IncUflexible'^a^kales! hare^oinSi Hoskins ^nd^ComWKS?
^ 81316 ^

power

neighbors,

revenues

the

0peration

provide

to

been

decided

a

present Erie

common

andWofCothTr G^-jgfv'en^naS

may

6%

markej^ action of Erie has been somewhat of

railroad

Ex-

resented

which

to

Aneeles

not
yet been harnessed, of the supplies of coal and

mum

has

of

capitalization of 2,450,208 shares

the

between

Francisco

q

chang'es

the

beginning
of 1950, Container CorptM^tion has
spent
approximately *5,000,000
on acquisitions and additions,

68.8

23%

Calif—The

servic'e

wire

tradin2

and expansion of operating facilities. Authorized but unexpended

considering the construction of a
$30,000,000 pulp and paperboard
mill, but no final decision has

11%

disappointment to Erie's stockholders and

as

few

performance

the old stockholders.
T oq

djrecj

financing is being under- ^rapidly as experience warrants,
taken by the company to provide

-d fabri-

been

The

The

aggregate $7,500,000. The company also is actively

performance

has

well

Wire Installed

beingSrouted

months

95.2

29%

,

and its consolidated subsidiaries,

,

which

Penny's

trunk line

L. A.-S. F.

orders

were

ceeds the destruction
„

^

market

Erie

'

an

e

inei„hastoraagbelUiIn addT ap.prop™tj°ns
storage.
In addi- eating facilities

eris°Po(

even

®
;

25

Ohio have had much

average

Auchincloss

Rp,inath

by

headed

171/2

colorless

lal as wel1 as for imPr°vement

Nature'

have

by

funds for additional working capi-

.

We

els

blacksmiths

shoeing horses and there

gone.

have

we

few

—but the life of
be

re-

what would

garages, gas

group

27)

accrued interest and represent the
outstanding funded debt of
thf. company since 1942. They are

municipal

our

What

(July

171/4

of Baltimore &

for-

was

Kidder, Peabody & Co. The de- cause of a lack of facihties to
Ventures are priced at 100% apd bring buyers and sellers of one

blame the auto-

we

governments?

tamer
3.30%

unem-

cars!

our

the

or

we

He

nartnefin

,

of Trad-

Division

D.

Exchan„cs

%

150 of these, so they will keep
busy lor five months.
They

Kidder, Peabody Group

* *

124.2%

51%

Ohio

&

*

^:

% Gain

48%

Erie Railroad

Paul.

problems

our

remedy these vfery

ers

,

"f

.

Nuisance

21%

26V4

Pennsylvania RR.

The

—

get

I

have today?

we

.

crime

more

even

trouble than

and

of the S. E.

propor-

Whenever

>

26%

New York Central

C.

D.

will be the best pills you can take. Angeles Exchange President

not

'

expect to

less.

•'

Points Gain

spectacular gains in earnings this year of N. Y. Central,
the large debt retirements and prospective large scale refinancing

being optimistic, read each day
one of the Psalms of David. There

In

pop-

of Great Britain had

is becoming

•/

'

f

Price

The

that

proves

Recent

-

Baltimore

C. Patterson

WASHINGTON,

fast and that my job is to keep up
with it. It; you have any difficulty

is

entire

Britain.

Great

of

other words,

has in-

the

^

Eastern Trunk Lines

—

7/30/54
Harold

I read the history of England or
of some other country. This shows
that the world is getting better

popula-

to

news

tionately

in

net

the past 12 months provides

over

-

1

pessimistic, which is very seldom,

States

40,000,000!

over

almost

the

United

accidents

and

the bad

ad-

was

'

Closing Price

the very fact that the
publish no more about

crime

so

justed k) the population growth.
Just

./

Common Stocks

S-t that it makes some pec-

papers; but

Our pop-

accidents when

Eastern trunk line systems

interesting study:

an

pie pessimistic to read the news-

fast that in
reality there has been a decrease
in

comparison of the market performance of the shares of the four

being reduced, and the orders nomination of Harold C. Patterson
for much military equipment are to the Securities and Exchange
being canceled.
Commission has been approved by

But when crime
a

a

major

are

in-

—

to

/

he a blessing in disguise. At any
rate> we know that the draft calls

g e

of prior charges, non-rail income and number common
outstanding vary widely. Considering all of these factors,

highest military authority, I fore-

and

the

on

schools

reduced

*

Upon the

churches'
Roger W. Babson

short average hauls, heavy terminal expense, large
losses from passenger train operations, etc. This is true to a large
extent.
But is is also true that volume of business handled,

the

crease

are

average

relatively

things cast that the hydrogen bomb may

*

Without giving the subject too much
investor might conclude these four major sys¬
tems have many problems in common, such as severe
competition,

study, the

amount

be at an end.

Wars may

these

e

comparison in this respect.

greatest is our freedom frorg war
the possibility that World

three unfortun a

of earning power, the key to financial suc¬
line railroads afford an interesting

The four Eastern trunk

—and

true

that

gnm

replace

cannot

Of all our blessings, perhaps

'

is

cess.

shares

optimist, to
facts/

we

Freedom from War

;

_

.It

which

bean

out

affect the production

To S. E. C.

when it is wasted.

tial statistician

ferret

Patterson Nominated

Our TIME is the one

surplus.

no

^m u s t

Erie Railroad
industries, the earnings and market performance of
the major individual companies which comprise the railroad indus¬
try vary widely. This is so because of the different factors which

tions. Speaking of "time," this is
the only thing of which there is

complica-

lions, anu even
auto accidents,
'

and
2,495,785
stock, $10 par.

par,

common

As in all

time even bothering to look at
stock-market quotations or concerning ourselves about investiga-

newspa-

and broadcasters feel obliged

pers
to

that

bad

too

$100

shares of

Says, despite the auto¬
mobile nuisance, no country in the world begins to have our
blessings, and the greatest of our blessings is our freedom
from war, and possibility that world wars may end.
adjusted to the population growth.

&

*

Corker.

Carkener, Inc.

Inc.

Reebe, Guthrie Opens
HOUSTON, Texas
Guthrie
formed

&

L

a v a

11

e

with offices in

—

Beebe,

has

been

the Union

National Bank Building to engage
in a securities business.

Number* 5450

Volume 182

(387)

The Commercial and Financial Chronicle

...

The German Bellwether

Cold War fo Go

Public

Regardless of Geneva,
Janeway Predicts

Utility Securities

on

East and West with Great Britain

Foreign Utility Companies
The

international

exchange
utility

improve. Some comment
therefore be in order.

may

International Tel. & Tel. is
ment

the Cold War is destined to
with potentially disastrous

neva,

foreign

on

go

on

to

write-off

diversify

its

accord¬

for

and

more

electric

today is synonymous
rearmament," said Mr. Jane¬
way. "Moreover, the German eco¬
nomic trend parallels the British
economic trend, and both together
can
be taken as forecasting the
with

economist and

This is

President of

in

heavy
calls for

materials

Janeway Pubh i

s

n

vicious spiral-

a

Russian Weakness Denied

and

g

of

case

a

credit).

British

into

metallic

our

Brazilian Traction, Light & Power

is

Canadian holding com¬

a

In

huge diversified utility enterprise in Brazil, with a long,
and generally favorable record. However, the company has beenpany,

a

hard

hit

from

coffee

from

the

troubles

suicide

of the past two years,-resulting;
inept Government policies stemming

and

President

of

elections

The

Vargas.

this Fall

firmer political foundation on which to
build a new economy and stop the headlong exchange flight
of the Cruzeiro.
The official rate is still 18.82 to the dollar, al¬
give the country

may

the

dollar.

Brazil

(or perhaps because of

inflation

Despite the

it)

expanding feverishly, and Brazilian Traction, despite a

is

huge construction program in 1954, had to ration electricity in
some areas, though
this was due in part to a serious drought.
There

is

also

backlog

a

telephone

applications for

300,000

of

service.

recently passed its June dividend after paying
1941, due primarily to the difficulty of

company

cash

or

since

stock

bringing cash to Canada rather than from lack of Cruzeiro earn¬
ings.
It is belatedly getting rate increases to offset inflation.
Sooner or later the company (which has been operated over the

conservative basis in Canada) should be able to re¬
cover its former
earning power and resume dividend payments.
But how soon this will be depends largely on Brazilian politics
on

years

a

and stabilization of the Cruzeiro.
Mexican

with

Light

financial

Power, also

&

Canadian holding company

a

and London, was conservatively

Brussels

in

roots

'

1950, but did not get much cooperation from the

recapitalized in

coordinating wage
were a dominant
factor.) However, with the new and progressive Administration
under Mexican President Ruiz Cortines, and with the aggressive

Mexican Government for several years toward
and

increases

unions

(Labor

increases.

rate

situation has
devaluation of the
both the preferred

leadership of General Draper in the company, the

and

last

dividends

year,

common

initiated on

were

The

stocks.

unexpected

the

Despite

improved.

greatly
Peso

stock has advanced from

common

the

$1.45 in 1950 to a recent high around 16. The manage¬
ment is optimistic that the Government will grant it a higher
rate of return on its rate base, in order to permit future equity
low

of

needed to
assumption proves

financing and stimulate the huge construction program
Mexico's

service

growing

American

by

the

in

speculative "kicker" in this picture is, of course,

The

the hopes for a

of

recovery

And

General Peron

or

some

part of the $100 million invest¬

out

the

continue.

will

"The

Great Britain

weakness

of

internal

economic

the

under

is

structure

severest

the

of

cause

whose

be¬

pressure

continued

for

need

sia's

business, but

vaged

Britain

on

problem,"

how

to

arms

Mr.
than

said

nothing less
an
altogether new
on top of a sold-out

"is

Janeway,

program

load

Her decision to

commercial boom.

the H-bomb invokes build¬

ing the bombers to deliver it.
"Her
geographical position
that guided missile defense

and radar coverage are even more

vital

her

America.

air

oned

than

they are in
And overseas garrisons

to

and

bases

by

nation

a

be

cannot

that

aband¬

is

stub¬

bornly reluctant to sink from the
center of an Empire to a Weak¬
ness.
No wonder that the Defense
Ministry has warned the govern¬
a classic of
British un¬

ment—in

derstatement—of 'heavy expendi¬
ture'

sible

to

Britain is respon¬

come.

the

for

Conference,

Geneva

and

nevertheless

new

arms

launching

is

a

program.

"Let America as well as Britain

remember that modern air spend¬

ing
far

inflationary implications
greater than the obvious im¬
has

mediate

spending

effects

will

cial

ply the vital
consolidate

resources

needed to

Hardcastle, Selland &

her pres¬

extend

and

ent

strength — copper products,
cable and chemical-making ma¬

Weintraub With Mutton
(Special to The Financial Chronicle) *

chinery." Similarly, in the SovietYugoslav
declaration
after
the
Tito-Khrushchev meeting, the So¬
viet Union is in a position to ob¬
tain through Yugoslavia essential

Parkman

commodities from the free world.

E.

"This

•

affect

the

&

the

with

corded in the

peace,

world's

economic

will

we

Union

and

which

are

fist

over

ridden

in

less

to

LaSalle

China

agriculture here, in
Argentina and in

has

Hutton

F.

of

future

more

dy¬

as

an

a

of

common

can

(Special to The Financial Chronicle)

BOSTON,
Steeves, Jr. is
Nelson
Federal

S.

Mass. — Henry
A.
now connected with

Burbank

Joins R. L.

armed

Not

a

,

..British Columbia Power has enjoyed fine management
It

Grauer.

gains in

area

to

the

company's
company

likely

to

is

now

affiliated

it

business

gas

chalk

gas,

having

an

of record only.

under

extensive

178,100 Shares

1950 to $1,62 in

piped from the Peace

to be

expected

to stimulate

the next two or

Aluminium Limited

three years.

Oregon, is

over

a

yields only

a

earnings gain

another

up

itself

as

a

over

this year.

Capital Stock

However,

(Without Nominal

"growth stock," the issue seems to

3%

or

Par Value)

At 38V2, paying $1.20,

little over-popular lately.

little

and sells at nearly 24 times last

year's earnings.
Another very popular
At 71,

Pewer.

25

times

1954

reported

likely

appears

that

the

earnings of $2.84.

company

adjustments on some of its
or

Price $103.75 per

Canadian stock is Shawinigan Water &

however, this stock yields only

hidden earnings in the important

some

Share

2% and sells at

There are, however,

chemical subsidiary, and it

receive

will

substantial

rate

hydro contracts over the next year

Corporation

The First Boston

so.

Two

smaller

Canadian

hydro

stocks,

sell to yield about 3.5%

Gatineau

Power

and

and 3.6%, respectively.

Quebec

Power,

A large

block of Gatineau is held by International Hydro-JSlectric,

which is in process of
into

an

investment

with

July 27, 1955

does not issue interim earnings figures, but seems

having established
have become

natural

Washington and

The

by

(from 87 cents in

recent years

The advent of

1954).
River

Day Co.

conversion from

company.,:,

I




.\

a

utility holding company
.

New York.
Philadelphia

R.

L.

Day & Co., Ill Devonshire Street.

economy."

New Issue

nevertheless earnings have shown consistent

traction division, but

rapid

handicapped

is

8Q,

BOSTON, Mass.—Christie Kondell

lematical.

President

Company,

Street.

(Special to The Financial Chronicle)

working

This advertisement appears as a matter

be sal¬

stockholders remains prob¬

with

affiliated

&

Nekon Burbank Adds

central, most critical difficulty is

as

with

now

Company, Board
Trade Building.

Can¬
Aus¬

catch-up
investment,"
he
"if all she had to worry
was her economy.
But her

short

become

nertz

consumption

than she is

are

Street.

E.

buying crops "hand
distress, surplus-

just that she is caught even more

power

Sinson

CHICAGO, 111.—Gerald W. Len-

from

distressingly

Barclay

(Special to The Financial Chronicle)

Soviet

"Nevertheless, Britain could no
doubt muddle through her present

about

with

With E. F. Hutton Co.

tralia.

plus
said,

L.

J.

buy

the

strain of go-forward

Hall

with

as

able

unlike

was

Weintraub

Barclay Investment Co., 39 South

the "free

Communist

abroad

crops

ada,

be

Mr.

CHICAGO, 111.—John A. McPike
and

Mr.
the in¬
flationary tide rises within Brit¬
ain

Selland

and

Two With

'soft spot',"

Janeway asserted that

623

(Special to The Financial Chronicle)

bear market of

as

Company,

Stern, Frank Meyer & Fox.

aircraft stocks."

Describing Britain

Mr.

Hall

sweetness-and-

new

Wein¬

was

Co.

light popularly expected—and re¬
the moment in

W.

Los Aneeles office of Dean Witter
&

and

&

Spring Street. Mr. Hard¬
formerly manager of
municipal department in the

the

labor and de¬
fense demand pyramided on one
another.
It is finally a forecast
conflict

Hutton

F.

castle

paced upwards by

direct

Herman

South

forecast of recontral and inflation

in

Donald"* V.

Hardcastle,
and

traub have become associated with

ahead,"
Janeway, "a famine par¬
ticularly of metals and metalworking capacities. It .is also a

disarmament

ANGELES, Calif.—Edward

LOS

Selland

famine

means

production

employment.

aircraft

demand, but making room-for
alongside of it."
-

defense

for

government

of

aircraft

on

The
new metallurgy that current air¬
craft
programs
are
demanding
and

merely keeping up with commer¬

tne

the Soviet Union
"to siphon out of our short sup¬
possible

—

problem too will be not

our

favorably inclined to Ameri¬

whether some of the investment

benefit

the

for

Squeeze

means

that

in

German

and

top of today's Hfill-beintis forecasting

on

that

had made

Treaty

British

the

for-election-boom

said Mr.

"Britain's

build

it

declared

State

Ger¬

and

investment

The Argen¬

his subordinates for several years.

tine Administration has become more
can

that

armaments
major
problem before the free world,"
he
said,
"is
the
ever-growing
pointed

race

He

weakness."

Austrian

British
of

problem of the day—how to load
armament competitive with Rus¬

"Russian

about

belief

revival

Negotiations have been under way with

the Argentine.

ment in

conditions in Brazil, Chile and
remaining countries were generally

inflationary

the

Conditions

Mexico.

favorable.

diversified

are

America, but earnings last year

throughout almost all of Latin
hurt

expected to show further

operations

Power's

Foreign

&

this

If

economy.

correct, earnings and dividends may be
improvement.

were

free

the

worlds, Mr.
Janeway

arming.

The
in

the

of

totalitarian
and
Eliot Janeway

a

though in the free markets it has been as high as 200 or more
to

econo-„

mies

inflation

Brazil's

by

anal¬

an

ysis of

held

ly

spiral
forecast

German

shortages

heavy industry forecast our own.

_

poration.

and

The

own.

man

f

Mr. Janeway derided a current¬

Research Cor¬

of 1954 forecast our own.

upsurge

The

more

coal—and

and

Thus,

trend.

the British and German economic

ing upward."

1 i

more

economic

American

every

(which
steel, steel-making

power

and

more

S.

U.

Coolerator

on

case

econ¬

call

resources

ing to Eliot
Janeway,

manufacturing interests (it had a
last year), the current outlook^
seems
much improved.
The Street estimates 1955 consolidated >
earnings (including the German subsidiaries for the first time)
at around $3.50 and parent company earnings around $1.90-$2.00.
trying

strained

omy,

between

race

namically than today's budgets in¬
flate the present.
The fancy new
metallurgical requirements multi¬
plying on top of Britain's over¬

British

important utility interests in Spain, Rumania and the Argentine
some years ago.
While the company has made some mistakes in
heavy

Power which is not in attendance.

the Free World's Eco¬

as

effects for the

about 90% telephone equip¬

now

the

Sees continued metal shortage.

the

only about 10% utility, having sold its

electronics and

and

gains

will

conditions

companies

further

show

will

trade

spot."

Regardless of what happens at
Summit
Conference in Ge¬

to hopes that
and that foreign

due

background,

international

an

nomic "soft

created market interest in com¬

Conference has

Geneva

with

.

significant thing about
Geneva
Conference .is
the

The most

"Germany

continuance of armaments

Economist foresees

By OWEN ELY

panies

19

■

Boston

Pittsburgh

Cleveland

.

-

Chicago

San Francisco

*

20

The Commercial and Financial Chronicle...

(383)

Continued from page

savings
You

A Realistic Look al Interest Rates
have

cumulated by postponements dur¬

In 1954,

20 years. For
highways, schools, hospitals, water
pollution control and similar pur¬
poses he assembled figures indi¬
cating that $100 billion would be

too,

they,

because

-tilings

confidence in the future.

country's producing corpora¬

the

billion on new

spent $26.8

tions

plants and machinery. In the first
quarter of the present year that
sort of spending was running at
an
annual rate
(seasonally ad¬

Jfor

to

spending

investment,

capital

In itself it

capital formation.
•duces

consumable

no

vegetables

produced
does

it

for all

come

in

be

But

those

pro-

it

producing

and

this purchasing power is added to
that of those people who are en¬

gaged in

producing

This

the

is

high¬

itself

by

to be substan¬

a

GNP

require

cor¬

Exchange had figured that
would

size

that

of

porations

Naturally, and like most good
tilings, this can go too far. If car¬
ried

outside.

to

it

excess

it

consequences.

Mr.

of

certain

sense,

ernment programs can

ered

capital

gov¬

billions

also.

for

cation,

be consid¬

investment,

nor

But

the

workers

bulldozers

the

pour

v/hich

and

who

who

concrete

they

be

cannot

eaten.

build

for

spend

usable

that

expendi¬

Spending

should and do increase

private
difficult

to

•avoided.

A

for

ment,

along with
Indeed, it is

investment.
see

how

that

can

be

housing develop¬
instance, immediately
new

presents to the community where
it is

located

age, water

a

demand for

sewer¬

supply, streets, schools,

hospitals, police and fire protec¬
tion.

The

manufacturing,
domestic uses is

is

years

easily imaginable
in the future we

fromfthe
national

gross

I

think

product

is

Advisers

is

able. The

figure actually increased

than

more

1949
in

and

not

all

at

$100

1954.

unreason¬

billion
A

between

large

element

the rise will be

capital invest¬
ment.
Because, as I pointed out
earlier, this provides no consum¬
able goods immediately, it has a
potent

more

business

upward

generally

sumption

effect

than

do

expenditures.

Whether

expenditures represents govern¬
or private spending makes

mental

difference

little

in

the

national

accounts.

hardly needs saying that the

rise

toward

probably

relevant to our discussion is that
it represents a huge and
growing
total demand for funds.
Just as

line.

There will be

the

of World

spending

lias the

same

of

all this money
effect whether done

by government
sector,
to

be

so

of

financed.
or

all

And

of it

have

neither

the

earnings by busi¬

corporations

taxes,

by the private

or

too does

plowing back
ness

.

nor

enormous

as

the

these

the

projected
be

not

goal

straight

a

setbacks, very
much, I think, like those we have
already experienced since the end
War II.

They

are

good.

They keep enthusiasm somewhat
tempered with cautiion, and thus
make

by

long-run

making
along.

raising

both

progress

corrections

as

sounder
we

of funds are, will provide

enough to

ently

cover

envisaged

the outlays pres¬
as

necessary

or

desirable.
Three years ago Dr. Frederick
X. Bird, of Dun and
Bradstreet's,

the

these

all

not

are

in the same direc-

move

bonds

in

ule,

in

avoid

lender

odd

is

willing

to

sched¬

amounts, so as to
when
unemploy¬

default

disaster may

or

interrupt his

income.

regular

Summing Up

Summing
I

say,

briefly, what

up very
tried to say

have

outlook

is this. The
longer future—

the

for

decade—is for rising Gross

a

National Product, in which capital
investment will have a
very im¬

portant part.
This will include
private and governmental spend¬
ing for capital purposes, and such

the

.

spending has

!"ciea.^d their holdings by some

is bound to exert upward pressure

the

or

ment

in---market. They were bought by
expect commercial banks
who in total

example, allow themselves

matched

it

a

as

whole.

a

If not

by taxes and/or savings,
represent

even

may

strong effect

very

business

upon

infla¬

an

tionary potential.
Such

outlook implies

an

large

a

a

ment

are

sooner

to

I

as

rates

are

be

not

wffffpstin*

stood

under-

thnt

3US5«U116

This Is Practical

Now you may be thinking that
there is an awful lot of theory in
all

this; that it is, in fact, hardly
being realistic or practical at all.
On the contrary, I argue that it is

extremely practical.
This

outlook

i,"rialysA

-

interest
vcitov

S^teSti g_^?: ]

* l

going to shoot upward
steeply and in a straight line.
That is most improbable, for three
.

the movement

°D,J^

is

rates

likely

to

business.

minor

be

to
the

the

Just

future,

will

to
correspond
growth trend of
there

as

business

likely

are

setbacks

bejrises and falls in interest
...

and contractual

accumulations

cited

down.

nature of

the

if

and

the

develops

investment

in

assumed

manner

about

in

the

as

potent

a

hold

to

This

is

interest

rates

Though I grant the tendthink it can be easily ex-

ency, I

pressure

rates is

Business

capital

"ids which

n

w

ap-

Third■ tnere
ii/a. there

is
is

the
tne

modern-dav
moaer
day

the

And

struggle

profitably

resources

5* PJ?es
ar
ti

e

keen

to

his

employed *

21

t

whe

?fj?'

re

e

continued

fact,

the

terest

the

upward

plus

current

let

authority

ulations

the

lendinS
gtate

and

for

is

over-

But

the net

ings

against

debt

which

the

increase

the

net

k

er wr

in

f

by

mortgages

De¬

in"

interest

share

o£

warcj

thus

pressure

cor-

keeping

The

Short-Run

the

basis

^ savings.
*or new

Outlook

Thus
I

as

if

the

up-

rates

of

them,

to

I think

worry

are

don't

you

sliare

one

of record

21, 1955. Subscription war¬
expire at 3:30 p.m. (EDT)
8,

Inc.

1955.

heads

Dillon,

Read

nationwide

a

&
in¬

&

Rubber

Co.

in

27

years.

Pro¬

ceeds from the issue will be added

competition

circumstances

see

sub¬

to

banking group which is
underwriting the offering.
The offering represents the first
public financing by Goodyear Tire

ex-

Mortgages

Arf

held

,

.j:

This is

vestment

the company's general funds.
Expenditures
for
plant
and
properties during 1955 are ex¬

to
,

rates.

.

rights

10 shares

Aug.

Co.

funds,

interest

on

longer.

Al

on

each

July

the total demand for

^

ceed

for

on

need's

the

find.

shareholders

rants

the

this

scribe for 913,531 shares of $5 par
value common stock
at $50 per

as

of funds
depreciation

external

rate

of

Goodyear Tire & Rubber
July 22 offered to its com¬

on

mon

and

for

interest

remainder

■

sources

earnings

&evertheless,

sav-

increase

determines

e

Co.

u

internal

ment,

to

as

can

A

,me morifa&«. ue
levels °f business
sPendinS for new Plant and ec*uiP.

and

the

there

wrinkle

uOQ(IV6<!r SlOCK Offfif
viwwn viivi

mortgage

governments

home

as,
h]gh

./

Spite

think

Bankers Underwrite

rec_

long-term funds will tend to

longer.
in

be

borrowing

]ocal

and

u

new

I

downward

a

an-

The
see

for

most realistic look at interest

rates I

The United

commercial

p0rations

supply of new

curve.

it

run

the

This makes anot

ings.
m

temporarily

may

balance

for

well

as

has this to say

for

be

business

the

Savings and Loan League
in its "Quarterly Letter" for June
„This year should

permeate

market

at the very least, and so this
outlook applies to the short run

states

ords

will

the

year

continued,

to all of you.

bias
of

psy¬

think

I

higher levels.

be immune.

not

trends

in-

on

briefly from
which
will

quote

me

from

saving? accum

im¬

improvement

has

hold down
oils,

to

pressure

also

rates

other

This

officer with

investment

continual

will

some

in

has

toward

occa¬

and

but

and the mortgage market

cannot

interest

setbacks

factors,

is

a

rising

be wrinkles in

reflecting

curve,

whole

money,

has been greater than most forecas|.ers were wini-ng to anticipate.

probable.

pears

tendency to amortize loans.
a

in

prove;

bias

the

time to come."

aggerated, relative to the demand
r

long-term

upon

likely to persist for

will

This, upward

projec-

1955,
one
conclusion
quite clear:
the
upward

factorfamiliar

•

the

predict

straight-line

business

chological

for

seems

savings

nowadays.

rising

situation

in

I said earlier, there

as

the

.

cannot

we

and
There

sional

.

tnat ' '
improve

tions

.

interest

in

so

sharp
trend.

baS1S 0f that study he concluded
-f business rnntinnps to
•
if u.
continues to
' H bus,ness continues to

that

reasons:

First;

tuate,

X vi

shall

I

hope

or

,

Bankers Trust Company in New
hj Prepared an exhaustive deYork> jjl Cpdl CU. dil CAudUulIVt ilC"*

trans-

later

others.

mitted

pected

to exceed

$50,000,000, in¬
substantial expansion of

cluding

This year, 1955, perhaps may be
somewhat typical of the sort of

need

conditions to be expected in most

mortgage

of

ing.
On the contrary, it seems
likely they will remain firm, and
perhaps
even
rise
somewhat.

ment and other chemical and rub¬

Though VA-FHA mortgages lately

expenditures

have

plants

the

The

years

demand

immediately ahead.
for

funds, long-term

and

short-term, is strong, while
personal
savings
accumulations,
I

as

have

indicated

fallen

at

the

beginning,

somewhat

both

ab¬

very

interest

been

rates

selling

coast at par,

I

much about
weaken¬

along the East

solutely and relatively. The sup¬
ply of mortages gives no signs of
falling off in the remainder of
this year,

conditions change.

As I remarked

earlier; there

fluidity in

at least.

Net mortgage

debt of individuals last year went
up

by $11.4 billion; the rise this
has been estimated as high
$12 billion.

year
as

Business

corporations increased

their long-term debts by $4.9 bil¬
last year, and may approxi¬

lion

mate

that

figure again this

year.

State and local government debt
went
a

up

sharp

billion

by

$4.8

increase

advance

of

billion

in

over

the

these

1953.

Depend¬
with which

a

in

areas

market

flexible

as

a

yields

mortgage

than

the

which insures
or several

one

must

felt

be

whole.
are

in

Though

perhaps

less

others, they
are
not quite as "sticky" as it is
sometimes thought.
For

1954,

$2.8

customary,

for money

pressures

particular
the

is

the

dustry
80%

of

as

some

savings association in¬
whole, some 75% or

a

total

mortgage

of

the- conventional

on

these loans

gotiation,
mune

to

and

synthetic

rubber plants re¬
cently acquired from the govern¬
ber

production

facilities.

During

the five years ended Dec. 31,

and

are

they

general

^loans are

type.

Rates

subject to
are

rate

ne¬

im¬
changes

not

The

six

or

and
subject to adjustment as

are

markets
that

discounts of five

have been

points

the

for

real

equipment

1954,

estate,
exceeded

told that in the ,$210,000,000.

am

Mid-West

ing upon "the speed
implies that the some very large revenue district
called attention to a
big defici¬ -demand for capital funds is going
financing deals can be readied for
ency" in " public " construction, ac¬ to be
immense, and that is where market, and upon the degree to




Government

,

mort¬

accept payments ahead of

The

time.

same

in the total which I

crease

go

.

sources

that

at

on

con¬

this increase in capital investment

will

The point which makes all this

tion

faces

sea.

point here is this.

going to continue to rise, and the
$500 billion plus for 1965 pro¬
jected by the Council of Economic

It

The Demand for Funds

It

fresh water

.

Nowadays there is much less
♦emphasis by economists upon sup¬
plementary or pump-priming pub¬
lic works spending
by govern¬
ments than formerly.
Such un¬
dertakings
now
are
regarded,
rather, as complementary; they

else¬

have

•total

Complementary Government

and

pipe-line
networks
stretching inward from the East,
West, and Gulf Coasts, carrying

this

for

somewhat

shortages,

and

some

may

tures both by private persons and
corporations
and
by
Federal,
•State, and local governments. And

spending
purpose is growing.

such

edu¬

for it for

leaping.

governmental

for

to

aid

vital necessity, and the

a

irrigation,

Thus, considered nation¬
total investment spending
capital

is

gest

likely to

tending

demand

tilings.

embrace

needed for

financing

of

mortgages on new homes may increase
or decrease.
What I sug-

often

ally,
must

supplement

to

be

may

Water is

and

incomes,

earn

funds

for

mand
taxes

where the underlying water table
has been falling for a long time.

the

grind

Federal

water

.

roads

the

,_i._

building are not consumers' goods,
for example, and
the concrete, have
for

"ext. The conclusion seems warranted that the total demand will
be quite sufficient to absorb all
available long-term funds,
That conclusion is reinforced by
another and very important consideration.
Last year investing
institutions such as life insurance
companies were able to supply a
Part of their need for cash to
take UP new investments by sell-

be times in

may

when

more
remote
things as for in¬ rates. There will be wrinkles in
stance, the de-salting of sea water. both curves.
Many parts of the country now '
Second: there is the institutional

Tractors and bulldozers for road-

used

the fugovernmental de-

There

ture

if

rate

ther increased either this year or

closely

truly enormous fig¬
they do not include

are

and

ures,

broad

that

hoped

ing $80 billion to be borrowed.

Government Investment
a

*

-

conventional

a

example, a borrower may be will¬
ing to pay a somewhat higher

market, and
likely to be fur-

structure of interest rates.

on

is by no means the most im¬
portant item in the contract. For

the

to

this amount is

be

These
In

Funston

possible to finance
this with equities, leav¬

might

half

It represented about one-sixth of
■GNP in the first quarter this year.

plant and equipment.

new

on

dis¬

have

can

inflationary

bonds

ply is felt throughout the whole

billion

$375

spend

to

Of
that amount, they might finance
$60
billion
internally,
leaving
about $160 billion to
be raised

tinctly

term

,

consumption
reason
why
capital investment, and increases
in it, are such important strength¬
ening influences in the business
picture.
t
goods.

less

or

interest

investors, op^a^least not in: anyr. and growing demand for funds—
wider field. Perhaps at some time Sljch quantity** Thus -the new in- particularly for long-term savings.
tially increased.
in the future you too may find vestments; nf life insurance corn- Personal savings are not increas¬
Early this year the Council of
desirable
to
diversify some- pamcs^and others will be limited ing as rapidly as disposable in¬
Economic
Advisors projected a it
gross national product
of more what. In any case, the freedom to much more closely to their cur-- come, and thus there seems every
reason
to
expect a
moderately
than $500 billion in 1965 as a rea¬ choose among various types of in- rent accumulations of newly saved
rising trend in interest rates.
'
sonably attainable goal. Mr. Keith vestment which is enjoyed by the funds.
Hardly any statement is more
Funston lately reported that tech¬ investing community as a whole about the turn of last
true than that markets will fluc¬
nicians of the New York Stock insures that advances in;rpne seg- yeai*
'
^ Reierson, of the

in¬
part

goods,

capital

in demand relative to sup-

crease

It has been pointed out by
in the field that'the

expert

gage

.

for

spending is going

the

in

take

generate

who

all

is

money

spending $101 billion on rates for all sorts of borrow- $5.5 billion during the year,
in ten years.
Whatever happens ing.
While savings associations
Thls year the commercial banks
to substitute measures such as the are primarily interested in home. are n°t likely to be in position
Gore Bill and the Fallon Bill, it mortgages, other investors, such
to take these Government secu'is
clear
that
Federal lyghway as life insurance companies for pties off the hands of long-term

the means by
goods, such as
automobiles and

and

may

future.

more

which

program,

called

"Which consumable

shoes,

all

are

familiar with the President's

produces

merely

We

billion.

or

goods;

this figure to $200

ments, raised

of

sort

the "Construction

Just recently

Review," published jointly by the
Commerce
and
Labor
Depart¬

an

be either slightly
connected to- less or more this year.
gether, and
even
though some
But
the Federal Government
money
rates are more sensitive itself already this year has supand flexible than others, an in- plied about $2% billion of longable

amounts

in line with ade¬
standards of national eco¬
and social well-

way

this

public

either.

that figure may

relatively less or
morethe requirements of business corporations may rise or fall
somewhat from time to time; the

With

efficiently.
call

decade

local

the market for invest-

being.

spending freely and the
outlook good, business and indus¬
try are willing to go ahead with
new and ever-larger plans for ex¬
pansion, to produce more goods
Economists

next

accumulators of which Federal road-building plans
of money, may
deter .State- undertakings,

as

investors

and

know

nomic efficiency

people

tuore

the

and

over

state

improvements

a

s$28.8 billion for the third.

bring

quate

rate of $27.9 billion
second quarter and of

the

for

called

justed) of $25.6 billion, and sur¬
veys
revealed plans for further
spending at

the preceding

ing

in

come

you

3

Thursday, July 28, 1955

iaries

company
are

and

tubes

products,

subsid¬

engaged primarily in the

manufacture

tires,

its

and
sale

and

of

other

and

also

rubber

rubber

manufacture

sell many other items includ¬
ing products for use in the avia¬

and

tion '

industry,
various
plastic
products,
chemicals
and
metal
products. They have 26 plants in
the

United States and 17 plants
foreign countries. Through sub¬
sidiaries, the company operates
in

for

the

energy

government

an

plant in Ohio and

atomic
an

am¬

munition
For

loading plant in Indiana.
many years, the company's

consolidated
ceeded

those

net

sales

reported

have

ex¬

by any
other company engaged primarily
in the tire and rubber products in-

Volume 182

Number 5450

The Commercial and Financial Chronicle

...

21

(389)
dustry. Tires, tubes, and recapping
and repair materials represented

Continued from first page*:

approximately'* 57%
of
consoli¬
dated net sales in 1954, with no.other product line accounting for
as

much

capitalization

Outstanding

wise evident abroad

ad¬

justed for the issuance of the addi¬
$250,145,000 of funded debt; $13,241,900 of preferred stock of for¬
eign subsidiaries; and 10,048,846
of

$5

value

par

common

stock.

associated with
Co. Inc., in the
underwriting are: The First Bos¬
ton
Corp.; Kuhn, Loeb & Co.;
Morgan Stanley & Co.; Blyth &
Co., Inc.; Glore, Forgan & Co.;
Harriman Ripley & Co.; Inc.; Kid¬
der, Peabody & Co.; Lazard Freres
& Co.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane;
Among those
Dillon, Read &

Smith,

Barney

&

Co.; Stone &"
Corp.; Union
Securities Corp.; White, Weld &
Co.; Dean Witter & Co.; and A. G.
Becker & Co., Inc.
Webster

Securities

Dean Witter Places
Witter

Co.

&

of

San

Francisco, Calif., has arranged to
place privately $2,100,000 of Interstate Finance Corp.,
(of Evansville, Ind.) \.xk% serial deben¬
tures, series E (subordinated), due
July 1, 1958 to 1965.

First

Co.

Trust

and Martin

bonds,

of

Lincoln, Neb.,

Investment

Co. at par

interest.

accrued

Of

$1,250,000 have
and $1,250,000

livered

delivered

these

been

de¬
be

to

are

later than Nov. 15,
utility will use the pro¬
retire temporary bank

ceeds

to

loans

and

for

construction

pro¬

gram.

Joins

Joseph Blumenthal

(Special to The Financial Chronicle)

BOSTON, Mass.

Jacob Blum¬

—

enthal has been added to the staff
of

Joseph Blumenthal, 79 Milk St.

With Richard J. Buck

-

Pierce

is

Mass.

with

now

He

Weston

W.

Richard

J.

Moors &

with

previously

was

Adams

W.

&

Co.

and

Cabot, Inc.

With Lamont & Co.
(Special to The Financial Chronicle)

BOSTON,

Mass. —Herbert

McDermott has become
with Lamont &

F.

associated

Company, 89 State

Street.

With

Piersol, O'Brien Co.

(Special to The Financial Chronicle)

KANSAS

CITY, Mo.—John
joined the staff

O'Brien

has

Piersol,

O'Brien

&

Adams,

F.
of

Inc.,

1012 Baltimore Avenue.

Garrett & Co. Opens
New York City Branch
Garrett and Company of Dallas
has opened a branch office at 52

Broadway, New York City.

these doubts

as sincere and to understand their
origin and
tenacity of life. In Europe there has been and doubt¬
less still is a good deal of resentment
aboqt our intrusion

into the affairs of the countries of another

ica

farther East. It appears
much of Asia—and Russia is at least

opened

a

of

branch

Third

South

Inc.

Utah

office

at

has

120

Street.

McClellan.

R.

of the New York Stock

passed

away

of

tern

away

&

Conn.,

July 20 at the

ages was

of

the

provided these Western

—

help from outside. But there

hostile to the Soviet. It strains
the United States is

credulity to believe that
really only interested in peace in
Europe and elsewhere, cr so the Russian leaders must
have said to themselves when

so-called

colonial

definite and clear. It

Such

belief

a

powers

painfully
dependencies. It often involved colonization
and economic spoliation' from which our international
policies have been mostly free, but it likewise included
military bases and various other arrangements which gave
was

setting out to Geneva.

or

suspicion on the part of Russia and
Communist China
may well have been the most serious
obstacle to progress toward
the world. Was a real

a
relatively secure peace in
beginning made at Geneva toward

removing it? We

only hope.

can

Jos. Rand

Opens

HOUSTON/ Tex.

-

Two With John Kinnard

Joseph

(Special to The Financial
Chronicle)

H.

Rand

is engaging in a securities
business from offices in the West

Building, under the firm name
Joseph H. Rand & Associates.

With

MINNEAPOLIS, Minn.—T.
ward

of

Johnson

and

have joined

John G. Kinnard &

Ed¬

Edward

D.

the

of

staff

Co., 133 South

Seventh Street.

Haseltine, Gilbert
Minneapolis Assoc. Adds

(Special to The Financial Chronicle)

MINNEAPOLIS, Minn.
liam C.

O'Malley

Wil¬

—

Joyce has been added

(Special to The Financial Chronicle)

to

the

staff of
Haseltine, Gilbert &
Wilson, Foshay Tower.

MINNEAPOLIS, Minn.—Olaf
Norgaard

is

now

with

This

advertisement

appears

as

a

matter

of

record

placed privately through the
undersigned and

no

only.

These

securities

were

public offering is being made.

the colonial power

military dominance. It involved various
multiple intrusions of alien peoples and
governments. It sometimes included loans and invest¬
ment of capital.
r

concessions and

Now it does not

require a great deal of imagination
much alike much of our behavior
during the past decade or two must appear to these rather
benighted people who have known the West chiefly as
represented by the colonial powers of history. We need
only think how we should feel were any of these; foreign
powers to insist upon military bases or other concessions
in the Western hemisphere. We should
certainly find it
difficult to accept protestations that nothing in the nature
of imperialism was intended. Consider our successive steps
to understand how very

$2,100,000

Interstate Finance

Corporation

(of Evansville, Indiana)

4%% Serial Debentures, Series E
(Subordinated)
Due

July 1, 1958

to 1965

innumerable

across

total

No

of imperialism is intended
clearly understood. The rights and
wrongs, the benefits and the burdens of colonialism, both
to the imperial powers and to the colonial territories, are
matters which lie well beyond the scope of this discussion.
We here merely take note of the fact that colonialism did
exist, that captive peoples have had their fill of it—or
think they have. We further call attention to the fact that
a
good many of our foreign policies to the outsider,
particularly to dependent areas, must smack of historical
imperialism. We have nothing to say at this time about
the wisdom or the unwisdom of this aspect of our foreign
policies. We merely call attention to its existence and to
the interpretation placed upon it by important powers
with whom we are trying to get on better footing. We
concede, indeed we take it for granted, that we actually
have no imperialistic designs upon any peoples or any
condemnation

here. Let that fact be

lands.

Dean Witter & Co.
July 20,1955

This

advertisement

And the
Now there is little

to doubt that Soviet author¬

First

essentially this view of us and our doings.
Russia, it is true, has not in historical times been the sub¬
foreign

power.

powers.

It has,

on

the

with

power

imperialist

ambitions

of

a

large

record
no

only.

These

securities

were

public offering is being made.

Light & Telephone Company, Inc.
Mortgage Bonds, Series H, 3%%
July 1, 1985

(f 1,250,000 of these bonds have been delivered and $1,250,000

contrary, itself been in its way a colonial power, certainly
a

of

1

Due

Neither has it been exploited

ofT the so-called colonial

any

matter

$2,500,000
ml

ities have held

any

a

■

Russians, Too

reason

as

placed privately through the undersigned and

Western

)

appears

to

be delivered

not

suppose

Being in

in

these

age

same

measure

Oriental,

course,
as¬

Com¬

are

later than November 15, 1955)

order.

of 62.

But




in all

sympathizes

that other

with

very

powers

substantial

China

and

peoples against the West. And there is, of

iq the Far East who profess communism.

over

and

Dean Witter & Co.

the

the ideological tie to those peoples of China and

elsewhere

passed

it

terms.

The First Trust Company
of

H.

Minneap¬
Associates, Inc., Rand Tower.

olis

familiar to the

other Asiatic

Hegeman

Stamford,

behavior

member

Exchange,

Joseph Roswell MacMaster,
pany,

be

quite naturally is inclined to

July 18.

with

the

no

powerful United States taking a
very active in¬
European affairs! History strongly suggests that
most of these
countries, if not all of them, are basically

as

forgotten that many of these peoples
have century-long histories of
subjugation and exploita¬
tion by Western powers. When not
actually under the
r rule of foreign powers, they have often been
largely at
their mercy and sometimes ruthlessly exploited. The
pat¬
never

think

Joseph R. MacMaster
sociated

much Asiatic

as

areas.

It must

.

have

powers

Historically, it has thought in terms of imperialism, and

George R. McClellaft
George

on our

European. In all these quarters this sort of distrust and
fear is frequently concerned as much with our
support
of the so-called colonial powers as with
any intentions
we
may have of going directly into any of these contro¬

by

VEGAS, Nev.—Mid Amer¬

Securities

continent, but
part is
to prevail throughout

possible imperialist intentions

located

naturally fearsome

terest in

their

real fear of

are

is the

in light of world history it is not difficult to credit

years

of themselves
against any foresee¬
European powers—although the Rus¬

care

able combination of

European

ample ground for believing that just such
doubts and suspicions of us have been at the root of a
good deal that has been to our disliking in the postwar
years. And if one dispassionately surveys our acts of late

ject of
Mid America Branch
LAS

than

islands to Okinawa and Formosa!

Ralph

—

Buck & Co., Statler Office Build¬

ing.

well able to take

more

sians

in the Pacific. From Hawaii westward

(Special to The Financial Chronicle)

BOSTON,

hardly

Yet there is

not

1955. This

•

Doubts About Us

*

through the

v

An issue of $2,500,000 Western
Light & Telephone Co., Inc. 3%%
first mortgage bonds, due July 1,
1985, was also placed privately
through Dean Witter & Co., The

and

/f

to him to be

for bad behavior!-*

poor excuses

verted

Securities Privately
Dean

seem

includes

stock

common

shares

IIV Sff

As

Germany did to their country. They do not
forget World War I either, and the long, long antagonism
with European
powers. They probably feel reasonably

13%.

as

tional

what Hitler's

Martin Investment Company

Lincoln, Nebraska

July 20,1955

beyond all that, the Soviet authorities

probability, and not without cause, fully remember

—

22

The Commercial

(390)

Financial Chronicle...

ana

this, country.

Continued from first page

own

This Week

—

■

Insurance Stocks

there was discussed here the 1954 gain to the insur¬
stockholder, the gain consisting of his increase in the year

in

equity,

that

liquidating value, plus cash dividends It was thought
1954 was a lush year marketwise, the showing of

or

because

of the companies listed would make an impressive record,
Such were the mark-ups in the market of the higher

many

and it did.

grades

which

equities

of

stocks utilize that, perforce,

the insurance investors in common
liquidating values were sure to bene¬

fit; liquidating value in an insurance stock consists of capital and
surplus, plus a proportion of the company's unearned premium
at the chosen date.

reserve

Naturally, the companies that stressed common stocks in their
portfolio holdings enjoyed a larger increment from the market's
big rise in values, as compared with those units that favored fixed
income media.
Indeed, it was pointed out in another article,

earlier, on the subject of the 1954 change in the value of assets of
the principal fire-casualty insurance companies, that in several
cases the
1954 result was a greater gain than the ten preceding
had shown.

years

However, these articles on insurance stocks have consistently
of longer periods of investment in fire
insurance stocks to derive best

casualty

results, and a ten-

bring out the results for such a span. To
compensate for capital changes in the period, adjustments have
been made for any stock dividends or split-ups; and it is assumed
that exercise of rights, where these were offered, was effected.
stage is taken to

year

liquidating value in this decade, there has
been added the cash dividend payments in the ten years (this, also,
To the increase

in

for stock dividends and split-ups), and in several
after adjusting lor mergers.
This total has then been
the liquidating v^lue at the start of the period, and to

after adjustment
instances

related to

the market price at the same
.

Total

$154.89

198%

20.95

70.56

13.76

39.34

102

American Re Ins—

23.22

6.25

29.47

183

American

41.89

27.50

69.39

99

Surety.-

Ship-

77.48

19.72

28.92

11.24

194

40.16

.

8.47

49.35

318

81.84

22.31

104.15

228

281

21.00

5.20

26.20

178

208

.

Fireman's Fund

Firemen's Ins.
General

323
196

142

The

latter

institutions
to

created

fructify

that is NATO. We strength¬

organ

all by supporting one of these

en

organizations.
If
we
withdraw
support from one, we weaken all.
Pillars

11.14

32.73

70

155

170

46.68

186

263

67.91

174

271

Hartford

Fire

106.08

20.60

126.68

171

210

Insurance...

42.25

16.30

58.55

179

223

Ins. Co. No. Amer._

70.06

16.03

86.09

267

285

12.97

13.90

26.87

75

92

68.21

23.85

92.06

102

165

26.89

15.54

42.43

100

103

43.8 L

13.00

56.81

133

213

102

109

277

National Union
New

Amsterdam

New

Hampshire.—

30.97

19.06

50.03

Insurance

__

76.99

21.33

98.32

220

North River

28,85

11.40

40.25

150

109.13

24.84

133.97

216

64.32

21.66

85.98

129

14.50

16.62

40

22.29

7.21

29.50

174

168

41.62

13.28

54.90

174

242

St. Paul

Fire

25.44

15.30

40.74

85

45.64

19.43

65.07

120

Standard Accident.

45.67

15.45

61.12

145

57.59

15.87

73.46

209

39.49

__

Westchester

While,

of

13.55

53.04

143

9.43

34.13

169

it does

not follow that the higher ratios

This company's growth has been
both rapid and great, and this has been of much weight in estab¬
lishing its excellent growth for its stockholder.
and health field.

.

end?

into

NATIONAL BANE

13 N. Y. City

of INDIA. LIMITED
Bankers

Bank Stocks
Quarter 1955

West

Copy

on

*

Laird, Bissell & Meeds
American

It

\

Bell

BArrlar 7-3500

Teletype—NY

A. Gibbs,

Capital

Reserve

Fund—'

proposed

1-1248-49

banking

Manager Trading Dept.)

-in Bank Stock*




—

.

and

Trusteeships and
.

.

%

«iso

.

are

the

four

best refute

by showing

..}

economies

heavily

upon

the

United

Eu¬

commodities

few

a

dependent

are

in great volume by our

consumed

country.

own

of meeting in April
again in September with the

experience
and

economic experts of Great Britain
the

and

tries

Western#European

who

members

were

coun¬

of

the

Organization

for European Eco¬
Cooperation. During this

nomic

period the United States was

pillars of

a

un¬

reverse

for na¬
prosperity.

Government

States

had

taken actions adequate to counter¬
act

the

business
it within

setback
a

and

to

brief time. The

Europeans were greatly reassured

by these

pily,

payments

is

not

is

It

not.

The

problem

of

facili¬

tating international payments and
of restoring the free convertibility
national

of

solved
cies.

currencies

is

best

by carrying out other poli¬
It
is
a
consequence
of

beneficent

international

economic

relationship,
rather
than
an
enabling condition itself. If we do
other things well, monetary free¬
will

follow

naturally.

One

mistake of American foreign eco¬
nomic policy in the past has been
to

put the cart before the horse.

which, hap¬
by subse¬

statements

borne
quent events.

an

important means toward
foreign economy policy goal.

out

were

the close attention given to
operation of our own economy
by
Europeans,
and
by
Asians,
Latin Americans, and Africans as
well.
Foreign peoples
want to

mate

the

ally

themselves

having

a

economy.

cies

to

For

We

example,

half

of

entire

the

Swiss production
watch

of jewelled
comes
to
the

movements

United

States,
but
Switzerland
buys only a tiny fraction of the
production of American automo¬

biles or any other
U. S. com¬
modity. We must judge our tariff
policy by reference to the rela¬
tionships between our own large
and economically strong situation
and

those of comparatively small
economies, most of them highly
specialized in their productive ap¬
paratus. Small wonder that our
actions

in

watched

international trade

very

are

closely by foreign¬
their effects on in¬

foster

country
been

strong

and

growth

steady

within

this

may hardly be exagger¬
the recent years we have

reasonably successful in this

Pressing for Reductions in Trade
Barriers

established.

-

-

*

second

foreign

our

jective is to

;

.

An

Example

of

in

the

Sustained Economic Growth

Maintaining well-sustained
nomic

eco¬

and

of

Swiss
the

in

bitterly

were

United

mid-1953

States

de¬

raise

the

to

duty, under the "escape" clause of
tariff

act,

jewelled

on

Swiss

watch movements. In actuality the
Swiss
watch
industry was not

seriously hurt by this action; but
it was interpreted by the Swiss
and other Europeans as heralding
basic change in American tariff
policy. The decision in the Swiss

a

watch

case

was

reached partly on

the ground that United States na¬
tional security required the

volved in

main¬

labor skills in¬

tenance of certain

making jewelled watch
Whether

movements.

not

or

this

the case, we

must sedulously
avoid using national security as a
was

shield

for

The

naked

feature

protectionism.

of

tariff

our

laws

that other countries find most ob¬

jectionable is the "escape clause."
this

Under

clause

American

an

manufacturing industry may ob¬
tain
increased
tariff
protection,
through a Presidential order, by
demonstrating that it is being sub¬
stantially damaged by the impor¬
tation of foreign goods. Foreigners
that

argue

their

must spend

manufacturers

heavily in advertising

and promotional expenses in order
to

enter the

ket.

After

vast

American

the foreigner

building

has

mar¬

suc¬

profitable

up a

sales valume, the American manu¬
facturer can then go to the United
States Tariff Commission and the
White

House,

damage,
creased

It

is

exists.

plead

substantial

possibly obtain in¬
tariff protection.
true that this possibility
and

It

is

also

true

that, if we

look at the historical record,

apprehensions
facturers

are

founded.
few

In

tariff

granted

of

foreign

these

manu¬

ill-

be

to

seen

fact,

comparatively

increases

have

been

result of action taken

as a

press

latively low. In

theless, .the possibility that such
action may
more

be taken does inhibit

active

policy ob¬
for reductions

States..

Foreigners

greater

assurance

to

international

1954

billions

are

now

re¬

about ,55%

growth,
in
the
United
imports
States, with widely shared well- entered free of duty; duties
being, deserves first place in our amounted only to about 12% of
foreign program: As a matter of the value of dutiable imports into
of

sistency

produce

and

in

to

market

the

effort

foreign

economic

barriers

$10.2

cision

American

of

magnified by foreign¬
beyond belief. For ex¬

are

achieving

means

quite accurately, that United

our

implications

almost

ers

a

States trade barriers
of

The

dairy

exports are

under the "escape clause." Never¬

endeavor.

A

Zealand's

actions

country

a

strong and successful
The importance of poli¬

economic

ated. In

with

trade. Now it is often pointed out,

-

country

trading.

are

the worlds international trade.

of

ceeded in

Americans must not under-esti-

monetary

monetary freedom feasible,

Providing
,

we

account for between 15% and 20%

our

During 1953 the writer had the

program

security

have been

Executorships i
J

can

notion

-

business. '
-

in

1948-1949, Western

foreign

any

rope's exports to the United States ers, because
dividual countries are much
dropped some 22%. For individual
countries, whose production was greater than we can imagine. A
highly specialized to particular proposal to subsidize United States
exports, as a measure to
groups of commodities, the loss of dairy
market
was
proportionately dispose of our surplus of dairy
greater.
In this same recession products, is viewed by a country
New
Zealand
with
great
Australia's exports dropped 36% like
and Chile's 34%. So that even an alarm, because a quarter of all

and

•.

description of

undertaken

of

United

make

£3,104,687

exchange

to group

markets,
before satisfactory trade and in¬
vestment
conditions, that alone

£2,851,562
;

The Bank conducts every

.

Is.

are

like-minded
the means to

four

international

Branch:

Protectorate.

Paid-Up

v

Telephone:

is

to per¬

and

We have pressed too soon for free

Authorized Capital____£4,562,500

.

120 BROADWAY, NEW YORK 5, N. Y;
.

(London)

land

Fxchanfe

Stock

End

Uganda, Zanzibar, and Somali-

Exchange

Members

in

Square, S. W. 1.
Branches in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,: •

Request

New York Stock

Government

Colony

St. James's

13,

Members

the

to

and Uganda <
Office:
26
Bishopsgate,
London, £. C. 2.

Kenya
Head

Second

of

group

fallacious

dom

ANALYSIS

recession

mild

States

of

which

of

our

This is notable in the case of Continental Casualty, a leader

AND

the

with

the

this

ties

our

equally

equity investors among these units do have relatively favorable
In several cases other factors have contributed to the high

COMPARISON

Most
foreign countries, being
economically smaller or less
diversified than the United States,
depend heavily upon export mar¬
kets to earn their living. During

market

critical

ob¬

broad

our

strengthen

to

the Free World

national

ratios.

in the accident

take

exists.

the promotion of convertible cur¬
rencies
and
freedom
of
inter¬

belong exclusively to equity investors, it is true that all of the

ratios.

there is

this list. It may be asked whether

202

course,

Yet

us.

evidence for it, and we must
account of the fact that it

Some may sense an omission from

193

24.70

U. S. Fire__

justly borne by
some

tional

253

Gty—

intensity. As a
result of our collapse after 1929,
the United States has acquired the
reputation of being the world's
greatest exporter of depressions.
In good part this reputation is un¬

foreign economic

176

U. S. Fid. &

their

about

barriers?

The United States market is, as

ample,

is

These

135

Insurance

in

rather

a

therefore,

observed before, vastly larger and
more diversified than the domestic

whose

that

Granted

basis.

124

Springfield

Security

morbid

in

products.

52

Seaboard Surety...

deep. Indeed, they are almost

very

other

most

concerned

trade

New

"

_

__

are

Fourthly, we can wisely economicsts whether the United
aid and other technical States was again setting the world
assistance to underdeveloped on the path of cumulative eco¬
countries whicch, for one reason nomic decline. Was another 19291932 to occur? The American posi¬
or another, are not yet ready for
large investments on a business tion at this meeting was that the

169

2.12

Insurance

Prov. Wash.

States

provide

347

Phoenix

United

the

abroad.

190

Fire

Pacific

in

cession

an
economic
setback.
an
impressive record of steady dergoing
We
were
reducing our military
growth with widely-shared im¬
expenditures sharply. Currently,
provements in the well-being in
American
business
firms
were
our
own people.
A second means
to our objective is to press per¬ changing from inventory accumu¬
lation to inventory depletion, pro¬
sistently for the reduction of trade
barriers between nations. Thirdly, duction and employment at home
we
should promote an expansion fell off. There was the most seri¬
of United States investment ous concern among the European

84

73.15

in fact, is is the most
weighty of all of the means to
our
goal. The fears felt by the
Western European countries of an
economic collapse or a serious re¬
logic, and

by

Why,

be

we

lowering

ripple in
the United
during which our annual
gross national production fell by
only $100 million (comparing 1949
with 1948) produced a serious ebb
in the exports of certain nations

The United Statets

19.25

should

Program

States

this

10.19

Fire

^compare our

appear

light.

economic

Program

152

14.75

Bonding

Foreign

Our

of

447

53.16

Northern

to fortify and
military-political

the

185

'

economic

were

276

36.49

National

the

or

54.54

Fire

Mass.

tion

Union.

Economic Coopera¬
European Payments

52.02

53.90

American,—

Home

European

6.75

Hanover

Great

for

12.95

21.59

_.

_

■'

The

policy which produced NATO is
fundamentally the same as that
produced the Organization

45.27

_

Ins

Re

Falls

Glens

165

259

63.77

defense.

which

41.59

—

_

"

23.45

40.32

Association

.

136

120.85

22.52

98.33

—

76.78

22.64

54.14

Fidelity & Dep

mutual

for

categories,. First,
the United States must provide the
world with an example of strong
and
sustained economic
growth.
Marxists never tire of repeating
that competitive capitalism is a
weak method of organizing pro¬
duction because it generates
periodic crises and depressions.

369

40.88

Fire

eign political policy and our for¬
eign
economic
policy.
For
example, The United States was
a principal architect of NATO, an
organization of the Western Eu¬
ropean
and
North
American

them

166

Ins

Fidelity Phenix

Similarly, there is need to pre¬
serve the consistency
of our for¬

this

323

Continental Cas

Federal Insurance

cut

measures

are

cloth.

same

countries, what

119

146

97.20

Insurance..

not

we

favorable

with

220

37.04

we

imposed

countries, they

suade neutral nations into affiliate

135
249

186

Continental

the

from

with

144

109

49.61

25.58

&

countries

other

jective

$234

Agricultural

8.70

Need

"re¬

Price

Liq. Value

28.34

carry

are

Economic

Aetna Insurance---

Ins

—

to

prevent

to stand on sound
ground, support similar concepts
in
relation
to
our
foreign eco¬
nomic relations? Thus, an anti¬
trust policy in trade at home and
an anti-tariff policy in trade with

12/31/14

12/31/4*

Cash

$20.30

trade."

we

Four

Dividends

$124.69

is enforced

ideas and

of

also, if

Ratio of

Liq. Value

Boston

straint

Total Gain to

Increase in

Aetna Casualty

Bankers

policy

these

our

time.

.

-Ten Years

American

trust

nations

counseled the employment
and

strictions

Pillars oi Our Foreign
Economic

Last May
ance

If

tariffs with the tariffs, quotas,
currencies and other re¬

blocked

Bank and Insurance Stocks
By ARTHUR B. WALLACF

Thursday, July 28, 1955

United

would

feeL

the

con¬

about

continuity

of

U.

S.

tariff policy if the "escape" clause
were

of

repealed.

damage

industries

Serious

instances

to* essential

domestic

could

be han¬
by
During 1955 Congress renewed
the Reciprocal Trade Agreements
Act for a period of three years,
dled

always
legislation.

Number 5450

Volume 182

assuring
tariff

continuity

some

policy.

We

volving

in
hope

must

administration

aggressive

renewed Act

The Commercial and Financial Chronicle

...

our

on

of the powers

economic
our

tive in this matter.
S.

Investment

funds.

Such

assurances

provided by foreign

gov¬

ernments

or by the United States
Government. Our Foreign Opera¬

Administration

tions

eralized
the

the

in

charged

lib¬

1954

reduced

and

terms

premium

for

insur¬

action in

of

our

There

inducement.

needed

favorable,

an

also

is

at the least,

or,

investment

refer to this matter later.

abroad.

to achieve in

There

is

yet

Extending Economic Aid and
Technical

here
normal private investment under¬
for

taken

profit, and not gifts

or

between

grants

governments, or
After, {au great
War, with the ensuing ^dis¬
ruption of international economic
"political"

loans.

World

and commercial

relationships, it is

natural that foreign investment on

business basis will be laggard in
its
recovery.
It usually revives

a

alter

normal

flows

of

trade

and

payments have been resumed.
International capital movements

from

(apart
nomic

fraction

they

national

not

exports
Since

nessed

eco¬

smaller

incomes than

only

but

movements

erally.

and

much

a

prior to World War I.

true

is

capital
tional

are

of

were

This

military

aid)

U.

of

S.

interna¬

of

of

capital gen¬
we have
wit¬

1947

amazing

an

growth

in

national production which has not

yet been matched by
rise

in

comparable

a

international

the

move¬

ment of

capital. The United States
nowliccounts for about two-thirds
of the

world's savings and capital

formation,
40%

and

produces

about

of world production of mov¬

able

goods.' In

contrast,

net

our

private long-term foreign invest¬
ment in 1954 was about $1 billion
'—little

1%

of

tion.

than

more

our

is

achieve

one-fourth

far

little

too

foreign

our

of

national produc¬

gross

This

policy

to

goals.

the

living

peoples

rapidly
able.

standards

the

of

Moreover,
investment

eign

of

the

World

possible

is

as

Free

desir¬

and

private

our

is

for¬

highly

centrated. Half of it

was

as

con¬

made in

Canada during
1954, and about
three-quarters of the represented
direct

investment
by American
corporations in branches and sub¬
sidiaries rather than portfolio in¬
vestment

securities

in

companies. It
troleum and
As

of foreign
largely in pe¬

was

aid

by the United

States Government to the Western

European countries terminates (it
reached

lion

on

high

of nearly $5 bil¬

1949),

strong
pace

a

in

should

take
step-up the

we

to

measures

of private foreign investment

a'

business basis.

vestment

Extensive in¬

opportunities

Europe,

exist

in

but

compartively little
private American investment has
been

made

Asia,
so

gible
aid,

have

until

recently.

Latin America
only negli¬

and

received

of

amounts
with

and,

Latin
in

there

Africa,

far

economic
exception of

our

the

America, private investment
continents

these

has

also

been

negligible.
The

The fourth road toward

face

we

for¬

are

midable. Foreign investment on a
business

basis

transaction.
vestee"

is

It

not

unilateral

a

requires

"in-

an

willing to act in
a
businesslike way as well as a
willing investor country. The
citizens of foreign countries must
country

tolerate

a

rate

return

of

to

the

Ameipcan
investor
which
does
compensate for the extra risk, un¬

to the economcially underdevel¬
oped nations. There is much con*

fusion

between

aid

technical

and

assistance, on the one hand, and
investment, on the other. Some
regard economic aid, grants, or
gifts as substitutes for foreign in¬
vestment. They are really a neces¬
sary prelude to the establishment
of a flow of foreign investment.
A well-conceived program

of eco¬

nomic aid and technical assistance
can

prepare

hospitable

a

fast

rate

of

relatively small
II

has been

domestic

alternatives

been

so

at

the

expansion.
home

tie,

been

has

in

erred

Western

movements.

Europe

recent example.

a

of¬

Its current

economic boom is in part a prod¬
uct of nearly a decade of Ameri¬
aid

can

and

rendered

technical

to

the wisdom of grant¬

Congressmen

assistance

of

generating

now

vestment

can

in¬

private basis, which
well reach large dimen¬

on

may very

sions.

are

foreign

some

we

a

From

this

experience

we

gain wisdom in dealing with

the hard problems of underdevel¬

oped

economies,

the

best

road

persuading

and

them that democratic

capitalism is

national

to

well-

being.
Broadly

speaking,

a

by which

a

there
are
nation with

ing standards may improve itself.
One course might be called "lift¬
ing yourself by your boot straps."
In essence,

which

sistance.

The

change
task

a

requiring

to

more

ing

to

spend

Technical

tively

requires

the ground

of

vast

too

stock

a

or

much
is

money.

rela¬

not

amounts

America.

of

Money
time

for

It
on

rather than shipments

is

from
substitu-

goods
not

and

•

human
-

,

1

con¬

If

rigorously

nism may

enough,

Commu¬

create the personal and

physical capital by which the pro¬
ductivity

the

of

worker

and

his

ultimately be
this is the
Communist
strategy for under¬
developed countries.
living standards
raised.

The

talism

In

course

is

can

event,

any

of democratic

radically

different, al¬
a discipline
on
the part of the capital receiv¬
ing country. It eases and acceler¬
ates the process of capital accum¬
ulation by providing some of the

equipment
through foreign loans and invest¬
ments. These goods increase out¬
put per man-hour ii^ the under¬
developed nations sooner than it
could
be
increased through do¬
mestic
means.
They enable the
underdeveloped nation to raise its
living standards without tfye
brutal
suppression of human
capital

rights
Our

or

own

road

of personal consumption,
nation

during

trod

the

this

19th

second

century,

have

utilizing the borrowed

other

Western

Euro¬

countries.

pean

We

ing

and

now

confront

task of putting

t£)e challeng¬

the

superior

Finally,

aid and

provide

to

technical

developed countries the President

Action,

that

so

preference
bidders

is

than

more

to

this

to

6%

support of the technical assistance
of the United States. He
requisted a $3V2 billion appropria¬

American

change

program

tion to continue the United States

the

margin of preference to the Amer¬
ican bidder—and of discrimination
against

foreign
substantial.

very

bidder

a

recommended

The

in

$1

These

to

administration.

re¬

quested approval of United States

win

support - of .' neutral
peoples. By steadily widening the
circle of nations which elect to

ister

follow * the

GATT.

(GATT is a general
reciprocal trade treaty negotiated
with a group of nations under the
Reciprocal Trade Agreements Act

capitalism, at home and. abroad*
shall help establish' the condi¬
tions of peace and prosperity in.

and

the

J.

' \

To foster United

ment

abroad,

of

road

•

world

and

advance

national welfare.

our

/

own

:

,

.

invest¬

States

certain

important
proposed.
important was the proposal
to extend the tax-rate preference
ofV. 14
percentage
points,
now
The
First
Boston
granted to Western Hemisphere
Corporation
trade corporations, to all income and
121
associated
underwriters
derived by American businesses completed after the close of thefrom investment abroad. Over a market on July 26 a
secondary
practical

steps

First Boston

< were

Most

Corp

Completes Secondary

period

of

time,

this

have

can

distribution

a

highly

stimulative effect on for¬
eign investment. The Secretary of
the

$103.75
quickly

Treasury also announced that

he would

actively use his current
negotiate tax treaties
foreign, countries,
where-

a

shares

178,100

Ltd.

cf

stock

at

capital

share. The offering
oversubscribed and

was

the

boohs closed.

to

powers

with

of

Aluminium

the

United

States

Chas. Davis Co.

would

Chas. Davis

&

Forming

change, will be formed

quire
the
same
measures
that
proved salutory in the war-torn

eign countries. The lending powers
of the Export-Import Bank were
increased, and the Bank was freed

New York City. Partners will be
Charles Davis, member of the Ex¬

from

will acauire

those

of

Burma

countries of Western

approaches

assistance

and

Europe. New
of aid

methods

and

are

necessary

nations whose cultural
unlike

that

Europe,

radically from

so

our own.

Recent Steps Toward Our

Is the

foreign economic program

advancing us toward our goal, by
taking necessary steps in the four
Presioent
tive

Mr.

Policy,

Randall

legisla¬
pri¬

and

private

in

in

to

Partnership

&

Peck, 120 Broadway,
York City, members of the

New

New

York

Stock

Exchange,

on

Aug. 4 will admit William B. Call

with

other

membership.

a

Call
Adams

Development,

cooperation

interests

Broadway,

Adams & Peck to Admit

Finance

would provide risk capital for new

enterprises

Ex¬

of Aug.

to

coun¬

partnership in the firm.
Mr.
is Manager of the research,

Call

tries. An organization of this kind

department.

*

For¬

on

of

which

was

Chair¬

Commission

Randall

The

construction

as

100

at

The

the capital of the

to

International

offices

mem¬

Stock

recommenda¬

Commission

Clarence

man.

to contribute

proposed

the New York

based

were

the

it.

*

,

,

Eisenhower's

proposals

inhibited

Company,

change, and William F. Igoe who

fyad

Corporation, which, as an affiliate
of the International Bank for Re¬

Goals

of the Eisenhower Administration

fields of action?

previously

which

of

with

5

inheritance, President requested the Congress

Western

of

for

controls

some

bers

Looking for stocks like these?
Assoc. Dev. & Res. —Up

Pyramid Electric

380% since November 1954

;—

"

851%

"

February 1954

—

"

438%

"

July 1954

Walt Disney

cratic cliches. It proposed a series
of moderate,
practical measures

or

these?

immediate

for

action,
not
blueprint of long-term
goals. The major features of the
Eisenhower
program
embraced
idealistic

measures

Up 6,600% since 1949
"

Industries

Investors

4,400%

"

12,700%

"

Diversified

"

previously.

provide for

to

Company

Eastern

in each of the four fields

of action discussed

First,

Cross

For HIGH-GAIN situations

sustained

see

.

.

.

economic

growth, the President
wholeheartedly accepted the phi¬
losophy of the Employment Act

of

1946.

reestablished

He

Council of Economic Advisers. His
Administration
in

cess

had

avoiding

notable

500 OVER-THE-COUNTER STOCK CHARTS

the

suc¬

depression

in

1953-54, and releasing new forces
economic growth. Thereby, it

The Picture Periodical
Covers

weekly prices, annual ranges from 1949
six years' earnings & dividends

...

.

of each

edition

company's business
.

.

on

Unlisted Stocks
cos \
two years'
TRADING-ACTIVITY INDEXES
capsule description

industrials, 77 utilities, 40 banks, 44 insurance

343

..

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new

capitalizations

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.

.

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.

up-and-coming NEW STOCKS in each bi-montnly

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timely special supplements

.

,

.

—

'

,

of

enormously enhanced the prestige
of

the

United

American
way

for

States

prosperity

abroad.

the

paved

liberalization

of

inter¬

national trade and payments more

effectively
could

than

any

Plus New ANALYSTS' DIGEST Section!
Fact-packed
firms

Franklin

Acrovox,

Natl.
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promote

inter¬

a
three-year renewal of the
Reciprocal Trade Agreement Act
with powers to the President to
reduce tariffs by 5% a year, to
reduce tariffs up to 50% on goods
not imported in significant quanti¬
ties, and to reduce to 50% tariffs

all

cases

Carpenter,

above

this

selected

recommendations

Studies

of

Biggins,

&

reports

Chemical,

Harshaw

by
Avon

investment
Products,

Continental Casualty, Riverside Cement,,

8

others

.

.

.

Special

opportunities

in

-v

In all—on invaluable

to

national trade the President asked

ic, competitive, capitalism to work

E.

of

country.

Norris-fhermador,

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1 _l

—

..

-

:

democratic-

we

8400 trade

some

<

the

membership in the Organization
for Trade Cooperation to admin¬

dealing with
tariffs).
" '

;

but

and

He

for

modest

are

our

simplify customs classi¬

customs

earmarked

was

steps toward
foreign economic policy goals;
they are firm steps in the
right direction. If they are taken,
and followed by other steps along
this
road,
we
shall
assuredly
strengthen the Free World and

import
allowance
to
tourists from $500 to $1,000 every
six months, and he asked for legis¬

fication, valuation procedures,

billion

of which about

Southeast Asia.

the

duty-free

lation

and 'tech¬

economic

nical aids program,

was

—

of

program

President

increase

an

under¬

to

asked for continued United States-

U. S. Government busi¬

on

Prior

ness.

no

given

assistance

economies,
like
or Indonesia,
re¬

backward

Capi¬

though it does impose

Congress

that

rights and
and

United States.

The President modified the "BuyAmerican"
policy by Executive

cified period, just as it now gives
credit for taxes imposed by for¬

praisal of our foreign economic
policy. It broke away from tradi¬
tional
Republican
and
Demo¬

cesses.

could
fill
a
real
gap
in inter¬
national finances.*

re¬

concessions Jo

give full credit for taxes waived
by foreign countries, for a spe¬

performed a signal service to the
country by making a fresh ap¬

democratic pro¬
pursued
long enough

negotiation in

granted him most of these powers.

under

.

physical capital by measures
which impair freedom, violate civil
spurns

through

for reciprocal

23

Finally, there is the danger of
falling into the error of believing

Economic

national

a

assistance

eign

the

of

>

expensive operation.
personal instruction

an

down

produce capital goods.

aspects

to

There is also the danger of try¬

the

builds

many

is

generation
accomplish.

upon

it

in

countries

people's culture. Obviously, this is

of

workers to

strong,

initially

not

important

marily

Thus

A

problem

underdeveloped

tions

forcing

aid.

may

this is the method pro¬
posed by Communism. Commu¬
nism creates physical capital by
taking away personal economic
freedoms, by brutally rationing

by

na¬

Then there is the danger of be¬
coming impatient. We tend to ex¬
pect results too quickly from a
program of aid and technical as¬

backward economy and low liv¬

consumption,

con¬

our

to add to military strength.

differs

two ways

economic

means

appear

table

Producitivity

Agency. In 1954 and 1955

to

that

security is best "purchased"
by taking a long view of the re¬

tacts.

European

is

one,

tional

through the institutional

the

Con¬

pursuade

important

with




though it would have

even

harder

apparatus of the OEEC, the EPU,
and

obvi¬

an

ing aid. The harder task, and the

drivts and incentives of democrat¬

as

insist upon

to

gressmen to

to deter the

attractive

States

United

past in tying economic aid too

ous

create a

for

mutually
private
capital

advantageous
fers

and

way,

climate,

lands,

The

the

free economy is our best ally. Yet
it
requires time
to
create, by

vestment has been

War

The

sults

capital of
the United Kingdom, the Nether¬

World

First, there is the danger of con¬
fusing economic and military aid.

for¬

certainty, and effort involved in
a foreign commitment. One reason
why American private foreign in¬
since

there are
against.

guarded

eco¬

our

nomic aid and technical assistance

necessary

problems

be

under¬

of

mineral industries.

economic

Assistance

eign policy goal is to provide

It fails to advance the production
and

economies,

to

vince

considering

are

dangers

more

foreign invest¬

ment than in trade and tariff bar¬

We

developed

the

wiser not

providing

non-discriminatory tax treatment
of foreign investments. We shall

riers.

century/

extending economic aid and

technical assistance to

made
turn

the

vestments, thus

foreign economic program is per¬
sistently to promote United States
more

In

of

closely to short-term military ob¬
jectives.
We would have
been

added

t

course

be

can

foreign gov¬
inability to

a

against

or

withdraw

development

during the second

20th

the

of

against expropriation or in¬
convertibility of U. S. foreign in¬

Abroad

A third

property by

ernment

ance

U.

of

economic

the

half

part to take the initia¬

Promotion

in

the Free World

make it the part of wis¬

our

to

assurances

the

of

strength and the diversity of
dom

for

of his

Congress granted him to
negotiate reciprocal reductions in

economy

need

a

the investor against expropriation

which

trade barriers. Our great

is

for

by the President in¬

utilization

there

(391)

OFFER!

_

*

The Commercial ancl Financial Chronicle

(392)

24

Continued from page

confined

6

of

plus

unit by

which to measure our out¬

what

computing

labor

for

of

purposes

changes in productivity.

nothing of other factors, vir¬
tually precludes finding a singlefigure index of "physical units"

customers

Let

repeat—for

me

labor productivity, es¬
when we begin to use

measuring

pecially
that

for

measure

labor,
find

even

sometimes

by

it

period of

a

Now,
aware

of

arate

years.

I

course,

that most of

measure

productivity
on
the
individual
operation, and that with all the
precision
(and perhaps a little
guesswork and averaging) made
possible by stop-watches and the
most approved methods-time-mo¬
tion procedures available.
I am
not objecting to that, nor depre¬
ciating its value.
I am simply
saying that despite all of that,
we
cannot collect
into a single
figure for our entire plant, the
several productive rates on indi¬
vidual operations.
We have no
means of constructing a composite
index
of
physical-unit produc¬
tivity that will reflect the variety
of grades, qualities, styles, colors,
sizes and shapes of our output.
And even if we did have, a few
changes in specifications would
make our original unit increas¬
ingly less trustworthy for pur¬
poses of
measuring productivity
per
man-hour of labor, or per
dollar of payroll. And even if we
hurdled that one, we would face
still another.
We

be

faced

with

di¬

and down movements in

verse up

The

tion

Value

Production

remaining

from

sales

prices and in wage-rates, so that
would have no good %nd uni¬
formly trustworthy means of con¬
verting our physical-unit measure
into something we could
safely
compare with man-hours of labor.
we

I suppose that

purposes

dollar

the

deducting

the

output,

of

mate¬

raw

Value

line

plant;
somewhere
in making up a

Gross

National

contribution

with

Product

that

all

of

others, becomes a part of the na¬
tional figure. The national Gross

hand in

business,

our

satisfactory
cial

perfectly

of

measure

economic

or

a

commer¬

output, and likewise of
input. What is it?
As

respects

know

both

of

measure

labor

the

our

our

labor

Product

is
simply
the
"value
by the
entire national
productive effort.
It is national
Production Value.

Production
on both a national basis
an
individual plant basis, is
100.0% of our internally dis¬

and
also

of

course,

is; there isn't
In

each

That is all there

any

more.

individual

found

that

total

fact

This

this

we

to

cost

a

surprise you.
me when I

may

Certainly, it surprised
first

discovered

for

entire

firms.

gives
This

years.

identifies

"direct

labor"

as

a

single figure, and lumps indirect
labor and "fringe" into the fac¬
tory burden account, but they can
be

sorted

out

so

as

to

obtain

a

So also

can

we

obtain the

Now, how

may we

best

2

get

single-figure

a

can

showing

l1^

]" f

Manufacturers'

(Productivity

AH

1.

Product*!!

2.

Hourly gross

3.

1953

for

data,

U.

S.

from

de¬

a

Nickels

$3.50

39.395%,
oiher

In

entire
which

period,
we

have

In

deviation

that

percentage

Productivity and
Combined,

from

Company,

per

is

Manufactures

available

U.

S.

The

or

is

Pay,

value

(economic

wages

S.

Census

of

Labor Cost)

Manufacturers data,

data

with

extended

per

by

of

measure

man-hour.

pec

productivity
is a single

This

the

product

What
that

we

happen,

instead,
consciously pay

shall

with, in

ally,

Production

in

on

propor¬

Value.

Actu¬

most

haps. To illustrate:
Let

1952

*1953

man-hour

your

with

III

this

for

the

attention

to

paper.

Here

five

years

means

of

the

(Copyright 1955 by The Eddy-Rucker-Nickels Company)

Rucker

near-

Since

to

a

provide
3

paper

in

sented

got for

we

the

form

our

of

internally
disposable income. This is an ex¬

is

a

or

cludes

amount

of

aware

let

the

with

piece-rate,

already

such

form

some

premium-hour

or

dividual-worker

incentive

of
in-

plan.

plants, management will

know the standard and the actual

output for

variety of operations,

a

for each individual

and

covered

And

employee

by the plan.

yet

have

not

did

they

•

a
single-figure which
the productivity of the
a whole. Even when the

as

performance

average

workers

is

of

it

used,

covered

excludes

least the indirect labor and

much
is

of

not

the

Moreover, of
ratio

is

not

known

any

direct

covered

at

often

labor

which

such

plans.

by

course, that average
expressed in either
physical-unit or yet

any

the

come

these

and

available

ratio

figures

money

would

into

should have

we

to

be

"Production

Value" per man-hour or per dol¬
lar of wages paid. It is not other¬
wise

possible

measure

This

find

to

of economic

fact

does

measured standards

operations

purposes

well

useful, and
It simply

for

certain

broader

of management, physical-

the
be

broad

that

individual

essential.

unit operational
serve

mean

on

not

are

true

a

productivity.

not

standards do not

purpose.

that

they

economic

And,

it

not

do

may
serve

aims, either. For

example, such plans paying the
employee on a 1:1 basis, repre¬
sent

constant

a

piece

per

unit

labor-cost

operation.

or

no

money-saving

direct-labor,
be passed

insofar

on

There

is

time-saving

or

for

what

what

as

to the customer.

apears

away

If

is

our

an

dian

trend.

mail in

to

be

an

from indi¬

in

wages

proportion
economic

firms
As

are

nearly

a

few Cana¬

following
as

I

can

this
judge

this

tendency, it will end up by
fewer firms paying labor on
a
basis of operations or pieces per
hour—a physical unit basis. But
it will not end up by abandoning

in

was

the

to

commercial

they
same

direct

increase

productivity.

labor

cost

was

in

The
a

con¬

stant, that is 39.395% within

very

limits of

narrow

minus.

And

industry

of

turn

fluctuations, plus
this

Now,

been

the

also,

agement's

costs,"

the

the years."
You

as

controllers

clined

to

reserve

'American

paying

since

find

we

is,

that

man¬

"over

labor

productivity

dollars minus

the

economic

man-hour.

And,

the
consequently,
per¬
centage "margin over labor-costs"
60.605%

was

within

narrow

plus
brief,
management's share of production
minus

or

fluctuations.

value tends to be

just

as

a

In

near-constant,

does labor's share of pio-

duction.

"Can

it

happen here?

words, is such
my business?"

a

I realize that

first

impression
possible."
Let

In

other

thing possible in
is

to

say

industry

time

hasten to say, therefore,
that I have examined
scores
of
different
industries
and
firms,
both

here

and

emphasize

and

observation:

deed

in

it

which

Europe. Then I
underscore

is

rare

a

does

not

this

firm in¬

tend

con¬

tinuously to p^y to labor a nearly
constant

share

of

its

production

been

in

the

cut

time-sav¬

the average

on

five

past

unit

per

to

by

years

the almost,

1914. That

un¬

engineers

that

made

if

we

have

said

modern

a

car

by the methods and at the produc¬
tivity rate of the year 1914, the

selling for $3,000 today would
to sell for
$30,000 of the

car

have

kind!

same

In

plant in the mid-west,
automotive,
the
time-andmotion study
engineers showed
me
conclusively that they had cut
labor-time in a five-year period
one

not

by

than

more

20%.

Nonetheless,

their wages remained almost
pre¬

cisely

the

same

Production

percentage
to
before—the

Value

as

of variation

one-half of

less

was

than

one

percentage point.
Why is this? The reason will at
occur

to you. We make

ings

in

meal

basis, first in

labor-time

on

operation

and then in another. But

wage-rate

changes

board" and

we

year.

On

raises

hourly

twice

make

we

"across

whole,
it

as

industry

rates

wage

almost

decrease

can

labor-time per unit of product.
If this were not the
case, com¬

petition
from

would

rising

prevent

at

all.

wage-rate increases

prices

That

is,

if

limited

were

strictly to improvements in phy¬
sical-unit
productivity,
prices
would tend to remain stable.
if there were not

And,
improvements
respect, prices would rise
practically the exact same rate

in

that

the

increases in hourly
They would have to,

rates.

wage

in¬

or

dustry would become bankrupt.
So, as a sort of compensating

mechanism, oujr private enterprise
system strikes a balance; it ends
up by paying labor in proportion
to the realized market worth of
the conversion process, in
propor¬
tion to Production Value. And it
also ends up by paying

manage¬

ment

on

exactly

ciple,

a

virtually

of

production

the

same

constant

value.

prin¬
share

(See

Table

II and

appended chart.)
It is well that this is so.
gentle¬
men.
For consider what would

happen if it

were not so.

•Either
rise

as

total-* wages would
fast as production

they would rise faster.

wage

payments

lag

or

•then

somewhere

one

say

29%

would

If total

behind

pro¬

becoming less than

39%

no

not

values,

duction value,

or
19% or 9%,
along that road,

work

for

We

us.

would indeed have labor
we

not

troubles;
might be fortunate if we did
have

a

revolution.

On the other

hand, if wages rise

from 39% to 49% to 59%

portionate

haps to 89% or 99% of production
value, then somewhere along that

economic

produc¬

tivity—and all increases in money
wages
are
proportionate to in¬
creases

You

in

may

economic

want

to

productivity.

look

again

at

II,

showing
the
U.
S.
Manufacturing experience since
1914. Regardless of boom and de¬
pression, war and peace, inflation
or
deflation.
Republicans
or
Democrats, this virtual law of in-

road

and per¬

there would

not be anyone
to work for—most firms
would be

bankrupt.

,

In brief, any
persistent reduc¬
tion in management's share
of pro¬
duction would diminish the incen¬

tive

for

continue

managers

in

and

owners

business., And

to

like¬

wise, any persistent reduction

in

Operations
Control — How
to
Measure
Labor
Savings,
Reason
552
available from Tjbe Eddy-Rucker-Nickels

labor's share of production
would
diminish labor's incentive to
work
but probably add

Company."

labor's incentive

3 See

,

the

-

do it almost every

the

fast

as

sav¬

piece¬

a

one

value. In other words, pay is pro¬

to

-

is why some

automobile

or

me

have

to

unit of prod¬

per

believable figure of 70%; as com-

pared

your

"im¬

tended

;

has cut labor-time about 20%; in
the past 40 years, it has cut labor-

at

productivity

indeed

There

uct.

as

$2,779 in 1954. For all practical
purposes, the increase was the
same
percentagewise as the in¬
in

have

labor-time

ings. I figure that

per

to

per

in¬

ask "where are those labor-'
savings?" You and I know full
well
that
improved equipment,

per

wages

hour, likewise has risen over the
past five years. It rose from $2,001

crease

be

may

judgment until

you

same

century.

margin

that

hour in

is

which

has

the

Table

Cambridge, Mass.,

indication, not

pay

percentage of this economic pro¬
ductivity — even though hourly
wage-earnings rose from $1,329 to
$1,807. In other words, the in¬

or

associates
engineers

impossible; look at all the
labor-savings we have made over',

once

five-year period
exactly
the

a

crease

your

possibly have some objec¬
They will tell you, "But

tions.

range

to

average

almost

expresses

plant

from

effort;
Simply
this
$4.59 in the year 1954,

Pear-constant

those plants will

even

phy¬
price

manu¬

to obtain

average

paid

measure

plants

$3.33 to

well. What did

am

plants

many

man-

only improved
productivity per

as

of

What

the

that is

labor per man-hour?

of the output per
direct-labor hour only. Those are
a

from

rose

see

the fact that for certain

operations,
have

per

that I

say

one

man-hour paid for.

Over

me

Value

shall

we

little later.

a

But first

any

simply give

not

productive

agement.
more

to

pre¬

a five-year period.
This
sizable increase in commercial
economic productivity. It in¬

per

this,

first

we

figures

man-hour

per

traordinarily important figure in
showing the effectiveness of man¬
Of

glad

$4,586 in

facturers

in

which

Production

be

hour, i.e., commercial productivity

ef¬

is, what

will

pen

of the original

copy

these

hours,

that
forts

labor

I

Value

who wants it, I shall
this summary:

increases

of

manufacturing

Production

man-hour.

nomic

utilization

past

American

sical-unit

*1954

figures supplied.

the

ol

industrial

some

sign,

call

me

have

we

will have one veryobjection to this; or at

you

among

will

(See

firms are doing this more
capital investment/' better
without realizing it per-> methods and
better product de¬

anyway,

Table

Now
serious
least

is"

have to pay

we

other words,

to

as

for

may be im¬
by the piece.

pay

the basis of what

tion

twice

collect

can

unit, it

may

we

figure for an entire plant, for any
given accounting period, month,
quarter-year or fiscal year.
This figure tells us the eco¬

vidual-worker incentives.

1951

constants.




only to divide Produc¬

American trend

$3,330
$3,784
$4,041
$4,246
$4,485
$4,586
share) —1.329 —1.459 —1.609 —1.673 —1.767 —1.807

*Preliminary estimates from B.L.S.

nomic

part,

Hourly oper. margin (Mrmnt.'s shr.)
82.001
$2,325
82.432
$2,573
82.718
$2,779
margin to production value 00.09% 61.44% 60.18% 60.60% 00.00% 00.00%
U.

of out¬

This realization
accounts, in some

Percent

SOURCE:

Produc¬

measure

Value by total man-hours of
labor input, and we have the eco¬

may

product.)

(Labor's

We need

in

Cambridge, 38, Mass.

copy.

1950

prices

as

perative NOT to

tion

1914-

Eddy-Rucker-

Manufacturing
1947-49

our

put.

return,

the

Man-Hour minus Hourly

Per Man-Hour

4.

to

wages to rise more than
fast

per

back

40

Operating Margin Above Labor Costs

per

as

use

we

to

the

TABLE II

|

tion Value

productivity

when

company

for

almost

1.6%.

the

over

Progress

1947,

we

minus

of

man-hour

accompanying
data

taken

fluctuation in

measure

how

measurement

translate

percentage

or

1914

all

words,

what happens in the

see

that

That

near-constants

own

of that country.

us

means

put?

other

Let

contribution.

the plant's utilization of labor in¬

In

its

often

official

by

have

only by random chance will
they be
close
to
the
national

both

over

cor¬

responding hours worked
hourly rated labor.

States, Canada, Eng¬
Germany, that each firm

indeed

words,

single-figure labor expenditure.

United

land arid

centage of Production Value, the
measure
of
industry's economic

plus

the national

as

We have found both in

averages.

the

same

near-

indi¬

per¬

often

constants the

or,plant

own

for

and

including direct and indi¬ tailed report entitled "Progress
rect, premium pay and shift dif¬ in Productivity and Pay."2
ferentials, vacations and holiday
Our research reveals that man¬
pay, and all forms of deferred or
ufacturing wages in the United
"fringe"
benefits.
Te
be
sure,
States are almost a constant
accounting

firm

true,

is

the
is

20

penny,

conventional

Rucker

monetary figure of company
return for the effort. If we try to

it

The

States

than

more

mation's

vidual

United

it

But

ago.

years

individual

no

expect to have its

can

In

plant, we
figure best
integrates all changes in product
specifications, process and meth¬
ods improvement, wage-rates and
productivity in terms of physical
units. It is directly proportionate,
or
tends
to be directly propor¬
have

chart

input,'

that

added"

And,
Value,

the

as

near-constants; as we shall see
shortly they are extremely use¬
ful figures.
Let me interject here,
however,

Produc¬

a

And it may be unnecessary, es¬
pecially when most of us have at

known

are

operation;
tendency
of

averages

it could be done,
fashion, and with tionate to labor costs. Or to turn
the
expenditure of uneconomic. the equation around,
amounts of time and effort, and
Total labor costs are directly
money. Nothing is impossible, but
proportionate, or tend to be
it may be altogether impracticable
directly proportionate to total
for most of us, nonetheless.
Production Value.
at least after

ures

,

the

the

man-hour, and gross wages (in¬
cluding fringes and overtime) per

of

of

value

our

nation's

including

non-compensation
ownership obligations
profit. These two fig¬

by

or

will

ma¬

represents
100.0% of the economic contribu¬

our

and

of

piece

and

raw

rials, supplies, and other items.
As you will readily appreciate,

the

costs,

costs"

compensa¬

units per hour; But
essential to pay labor by

indeed s- with

dustry continues to operate.
also the appended chart.)

to

sep¬

after

purchases

of

tion

other

are

more

not

the

we

it

efforts,

is

Value

sum

along

all

fs

if

of

is
not
always an easy and simple
thing;
it
requires
considerable
"know-how"and experience. How¬
ever, it is easy to describe it so
that
everyone
will recognize it.

tion

labor

above

for

obtain
it

essential

are

worth

from

these

for

Production

"margin

us

these

average

distinct

determination

outside

100.0%

as

improving methods and output;

because

market

posable income.

would

"in¬
term

costs.

fully

am

do

us

and

terial

for

Value

the

productive

own

(

"value
or

conversion"—I

Production

represents
our

called

manufacture,"

from

come

a

that

is

ure

added

compensating

it is almost impossible to
physical unit of measure
would
remain
unchanged
for a few months, let alone

of

input, quite clearly distin¬
guished from raw material costs
with whose production our own
labor has nothing to do. This fig¬

of

purposes

man-hours

labor

know it.

we

the

for

re¬

we

internally dis¬
then
paying

or

income,

costs,

standable

say

as

the

input?

simplest and most under¬
figure is that repre¬
senting what we received from

The con¬

posable

60.605%

for

return

economic

our

a

The

in specifications, to

change

stant

in

got

we

if

gard Production Value
of

time and motion study as a means
of

39.395% for labor alone leaves

Of Productivity Measurement
put

1.6%.

token,

same

band

narrow

a

minus

the

By

Economic and Financial Aspects

within

or

Thursday, July 28, 1955

...

tremendously to
(and reason) for

\

Volume 182

Number 5450...The Commercial and Financial Chronicle

quitting and

scored

for striking, or

even

It

is

that

man-hour
in the first month of operation.
These references simply by way

good thing indeed

very

a

have this wonderful

we

com¬

pensating balance in our private
enterprise ssytem — that pay is
proportionate to production value.
For purposes of overall business

control,

and

pensation

for

intelligent

policies

and

of

to

for

third

A

measure

productivity

gives
ity that
needs

the

even

worker

of

one

useful

tools.

All

grasp.

is

know

illiterate

most

easily

can

to

be

can

most

meaning to productiv¬

a

how

to

he

count

ity and

,

What

productivity?

I

mea¬

suspect

controllers is

this

measure,

of

management
productiv¬

a

a

and

probably

above and below
this straight-line trend. With this
ness

worse; that prices always rise fas¬
ter
than
wages,
or
wages
fall
faster than prices decline.
If you

higher

figure,

with

will be upwards of five million

standard

your

"labor

restore

the

balance,

expansion in the Canadian

The

Once this fact be¬

throughout indus¬
try, and among working men and

It should

continuously

about 77%

wages

behind

lag

prices,

at

or

least do not rise faster than prices.
It is an exclusive characteristic
of

in

This

capitalism that wage
rise faster than prices.

truth

is

for

work

statement

a

private capitalism's

Rucker Principle of

derstandable and predictable basis

duction.

for

compensating our helo. and for
winning greater cooperation with

of facts known

management in raising oroductivity.
Wherever we offer to pay
labor its historic share of produc¬

area
am

future

in

tion,

bright

one.

tive for labor to help us in man¬

agement
value

known

to 16 years,

industries

in

a

the

in

opinion. I
encouraged to believe that its
that

respect alone is a
know of no other

I

that

approach

equals

plicity,

Plan,

it

sim¬

fo*-

understanding by

common

appealing to

sense

of

peo¬

Such

measurements

produc¬
high usefulness in

States,

tivity

have

other

England.

fields.

among us does not wish to antici¬
pate the future, especially the fu¬
ture growth of our country and of

In

one

English

plant, the first
England to install the
Rucker Plan, the union shop stew¬
ard

in

first asked

over

40

our

questions,

a

For example, who

business?

ments

on

Which

few

show

for

that,

the

'do'."

management

nomic

TABLE

and

constructive

for

aspects in

project the

Table III.

eco¬

If you

concerned with the

more

my point of observation,
I venture the general forecast that

will

ten

years

based

and far
based

the

less

far

be

sight

man

a

more

trend

on

controller
hind¬

of

historical figures,
the man of foresight

on

of

subscribe
the

share. Shareholders may*
subscribe for the additional shares
the

at

each

The

satisfaction.
I

»

of

121

its

possibilities

to

Meaning, Its Measurement and Its
Industrial Future.

a

new

SALT LAKE

engaging in

will

wanted

Corp.

be

CITY, Utah—Utah

Salomon Bros. & Hutzler.

ceeds to

In

(Special to The Financial Chronicle)

and

World

other

combination

of

higher prices will serve to main¬
tain stable the respective shares
of
labor
and
management in
Production Value.
the

On

average,

in

light

the

of

the

offset

to

wage-rates;

rise

hourly

in

maintain

nomic balance in industry

eco¬

prices

will, therefore, have to be ad¬
vanced,
probably
about 27%

(1949=100.0)

and Percent

Test

Increase, 1954 to 1964
Canadian Industry

2.

Labor

MANUFACTURING OUTPUT
—per

force

•

La

joined
Hue

the

&

Co.,

staff

of

Pioneer

capita of population

4.

'

Man-hours

5.

PRODUCTIVITY per M/H.

6.

Payroll,

7.

Wages,

employment

17, 1955.
The company's most recent divi¬

(Special to The Financial Chronicle)

ST.

Minn.—William

PAUL,

/

D.

Hurley and Joseph R. Powers are
now

93

with

Juran

&

Moody, Inc.,

East Sixth Street.

Joins Kalman Staff

average

hourly

9.

10.

(a) Decline,

of

With State Bond & Mtg.
(Special to The Financial Chronicle)

Index

compound

annual

have

Growth

projection
is not

a

tuations

been

Rates

Bond

&

Mortgage

Co., 28

North

Co.;
Merrill
Lynch
Pierce, Fenner & Beane; Smith,
Barney & Co.; Stone & Webster

of Validity by Empiric Data from official U.S. Census of Manufactures, 1914-1947,
by use of the Rucker near-constants and R.L.S. Payroll data.

White, Weld & Co.;

Also

A.

C.

Co.

Inc.;
&
Co.; A. G. Becker & Co., Inc.;
Alex. Brown & Sons; Dominick
& Dominick: Drexel & Co.; Equi¬
Bache

table

&

Allyn

Co.;

Bear,

Co.,

&

Stearns

Securities Corp.; HaUgart^ri

Hayden,

Co.;

Hemphill,

Noyes

Stone

Co.;

&

&

Webber,

Paine,

Co.;

Curtis;

R.

Jackson

&

W.

&

Co.; Wertheim & Co.

MIAMI, Fla.

—

members of the

Exchange, have opened
at

8430

& Co.,

Farrell

New York
a

Northeast

Stock

branch
Second

Avenue under the maangement

of

McCarthy.

Mr. McCarthy

recently been

conducting his

Griffin
has

John C. Legg

Exhibit

years

opened an office here.
William
Longfellow will represent the

firm.

Jay W. Kaufmann Admits

ab¬

at the

Necessarily,

—

J.

Shipman has been
partnership in Jay
Kaufmann & Co., Ill Broad¬

Frederic
I.

(10)

Branch

John C. Legg
& Company, members of the NewYork
Stock
Exchange, have
TRAPPFJ, Md.

—36.2(a)

^Projected in

investment business in Miami.

own

56.8

51.0

in

9

Dean Witter &

,

26.8

projected for ten

shown

Lazard

Co.;

&

&

New Farrell Branch

Manufacturing Combined

'

admitted

this

assumes no change in those Growth Rates.
Hence, this table
forecast, but simply a projection of possibilities. Cyclical fluc¬
above and below the straight-line trend
may be expected.
(Copyright 1952, The Eddy-Rucker-Nickels Company)




Peabody

Co.;
Kid¬

Minnesota Street.

I

numbers

&

Pressprich & Co.;
NEW ULM,
Minn.—Robert E. Reynolds & Co. Inc.; L. F. Roths¬
Cartwrignt and Paull R. Huggins child & Co.; Shields & Co.; Spen¬
are
now
connected
with
State cer Trask & Co.; G. H. Walker

26.8

^Preliminary, subject to later revision.
complete data.

NOTE:

Sachs

Co.; HornPAUL, Minn. — John A. blower & Weeks; W. E. Hutton.
Wilkie
has
joined the staff of & Co.; Ladenburg, Thalmann &
Kalman & Company, Inc., EndiCo.; W. C. Langlev & Co.; Lee
cott Building.
Higginson Corp.: Carl M. Loeb,
Rhoades & Co.; F. S. Moseley &

98.6
"

142.8

SOURCES:
sence

Goldman,

Co.;

ST.

145.6

142.8

wages

underwriting:

Harriman Ripley & Co., Inc.;

13.8

279.6

PRICES, manufactures
Prices, relative to hourly

the

in

Blyth & Co., Inc.: East¬

Dillon & Co.; Glore, Forg^.n-

man.

£56.8

.

196.2
±

share, paid on

34.7

368.4

power of
Labor costs per unit

a

equivalent to the divi¬
paid prior to the split.
15,

group are:

&
(Special to The Financial Chronicle)

£77.4

{196.2

—purchasing
8.

25 cents

was

July

curities Corp.;

17.2

£236.5
121.2

production workers

during 1954, as

Securities Corporation: Union Se¬

Juran & Moody Adds

31.8%

157.6

_____

$9,589,898, equal
number of

was

for-one split of the shares on.May

der,

Smith,

secu¬

Net income from current opera¬

tions in 1954

office

126.0

___,

vast

a

modernization

and

due 1980.

Freres

have

1954 to 15*i4

150.1

3.

Western

out

Pcrcchi Increase

(1949=^14HM>)

1. Population

II,

only other outstanding

Lean

with extension to 1952

Index 1904
'

•

ex¬

rities of the company are $38,500,000 of 25-year 4V8% debentures

The Rucker Share Of Production Principle
AH U. S.

War

carried

mechanization

III

•

has

H. Kuhlman and Malcolm A. Mc¬

tinuously under the necessity of
balancing its changes,
the

the pro¬

plant

in its fac¬
private wire services.

Since
Union

use

future

particularly

simile

&

MINNEAPOLIS, Minn.—Walter

words, management will be con¬

that

finance

pansion,

securities business

a

Building.

might expect, but also far, far
less
than
enough to prevent

rising.

group
headed

Kuhn, Loeb & Co.; Lehman.
Brothers; Clark, Dodge & Co., and

Included

gain in average productivity
per man-hour at present rates
would
be approximately
57%,
far
more
than
perhaps
you

from

under¬

adjusted to give effect to the four-

The

prices

been

investment dealers

shares outstanding

Two With Smith, La Hue

a

and for more constructive

policy
in every firm.

has

nationwide

a

to $1.94 on the average

Utah Nat'I Sees.

growing family population on
the bread-winner's pocket-book.
It is almost trite to reiterate that
compensation

by

by

the

commend

especially in the area of in¬
creasing management and labor
understanding of Productivity, Its

reflecting
above men¬
of

record

of

the

you,

compen¬

pressure

share for

new

held

dynamic program and gross additions to its
factors of economic development.
plant have totaled $162,900,000.
It is a field full of bright promise
With the issuance of the addi¬
for advancement, containing some
tional shares, the company will
hazards, but likewise overflowing have outstanding 6,217,849 shareswith ^opportunity for constructive
of common stock.' As a result of
achievement and intense personal a
refunding completed last month,

years,

the

and

tioned

Growth Projection

For

offering

written

the firm.

ten

one

July 22. The subscription rights
expire on Aug. 8, 1955.

dend

in

of

shares

on

~

Index Numbers

rate

five

dend

labor-shortage

company's

at $20 a

from offices in the Ness Building.
Chris S. Metos is a principal of

the

evidencing their rights
to
1,036,052 shares
common stock

to

Hourly-wage earnings, at current
rates
of
growth, will almost
double

Telegraph

shareholders

its

Western Union will

From

within

to

sent

of

National Securities Corporation is

to

I have endeavored to

To

capable of increasingly broad
From a past responsibility

Union

Western

has

warrants

opments will present.

ductivity will not be sufficient

growth of Canada in certain

fair

a

a

increasingly more alert to the
coming problems, and the coming
opportunities, which those devel¬

Here,
anticipate the

"bringing the future into

we've

had

will

be,

impact of dynamic eco¬
nomic development upon his com¬
pany's growth.
And he will be

past five years, the gain in pro¬

focus" I close.

ever

future

perhaps must

primarily
and
often
solely with the impact of internal
operating
factors
on
company
costs and profits, he will soon be

supply.

may

com¬

a

Then he volunteered:
"I'm all for it; it is the first time

all pointed.

be,

in "the

Co.

policies and progressive
increases in capital investment.

so

of

Canada. Porto Rico, Germany and

firm

to

somehow

ple.

varied list of

United

of

ease

the innate

Rucker

Plan, has been used for periods of
one

of guesswork and

all concerned, and so

the

as

area

down the

narrow

This

man-hour.

ner

generally

want

to labor and man¬

production

increase

to

outlined, the
share-of-pro-

one

sation

effect

to broaden the

serves

agement, and to

immediate incen¬

an

need

.

The principle here

use of this principle
perfectly natural, un¬

have

again,

contract

1

in

employment

labor

available

more

the

>

of growth, will gain about 14%
by 1964. This gain is less than
the gain in the labor force, fore¬
casting probably a coming de¬
cline in tl'ie length of the work¬
week, and the drain of expand¬
ing service industries on the

changes that will make it harder
to
get business from
the cus¬

The second

we

to

tomer."

a

In

of

manufacturing* at present rates

personally

that "we don't want any

continuance.

is that it is

elements.
instance

working out the final solution.

teered

for

to actively support,

wage-earners
and

incentive

an

three
one

In two instances, the union volun¬

private

earnings

the

known to me, the management has
had the active help of the union

selling and

advertising.

not be too difficult to

than

1954, and will

and will need better

estimate then what proportion of

by

over

up

gain, however, only 34% per
capita of population. You will
want more capital investment,

all

those types of countries, note that

keep

Manufacturing Output will be

or¬

of

and

attract

good workers.

the total needs to be accounted for

we

coming labor scarcity and a

'

you

need have no fear of
communism
and
socialism.
In

women,

however, will
only about 17%—a signal
Force,

warning to put your compensa¬
tion policy on a basis that will

three.

known

comes

Labor

grow
of

increase prices, fii) in¬
productivity or (iii) bar¬
combination

mar¬

ket; also great pressure on hour¬
ly wage rates.

(i)

some

things of life—a great

Man-hours

Then you know that in

To Its Stockholders'
The

future

the share will result.

Canada

the contrary.

to

only natural to expect that

controller

more

.

effect

States; quite

It is

the good

gain down the union demand—or

the United

essential

trying to antici¬

velopments and contingencies.

house, and to provide with all

Compare the present year's

deviation.

bodies to feed, clothe and

more

or

will look again at Table I, you will
see that this is not true in either
or

almost

in

pate and to provide for future de¬

Population will be more than 30%

strike of days

a

and note any

crease

become

Underwrite/,

Western Union Offer

computations

concerned

we

share of production."

must

Bankers

will be quick to appreci¬

management

man

going to arbitration?

to

will

25

the

on

vision.

Find

<d)

levels

productivity

the

showing what we can do in the
first place, or we don't have them

der

ate,

mind, what is ahead in Canada
at the rates of growth computed
from 1929 to 1954, as in Table III?

(c) Then add in the union's de¬
the effect that under private capi¬
talism, the condition of the worker mand, and see what increases in
tends always to become worse and

As you

probably have over 20 million
people.
In other words, there

do

What's the point of all this fool¬
ishness?
Either we have figures

(b)

carry

current

average.

greater than now; Canada will

often, after

some

score

may

in

weeks, does management settle

foremost,

this principle of share of produc¬
tion spikes forever the doctrine of
Karl Marx. That doetrine was to

cyclical fluctuations in busi¬

years

a union's
demands; and declaring flatly that
it will not raise wage rates? And

(a)

a

will know that in the next ten

you

sensible to do this:

thinking.

above

accept

as

that the

hear

often

How

already far, far ahead of me in
in the second place either. Then
answering that question. The uses
are almost
unlimited; let me citO a why "go to war" with our help?
few, perhaps in a somewhat dif¬ Why not go and get the figures?
ferent order than you are now To me it is simpler, and more
First,

this as a projection,
forecast, and will realize
projection is necessarily
straight-line trend of growth,

not

guide in collective bar¬

a

without

dp with this

can we

of

that this audience of

of

use

will

management condemning

at

Future

production

of

of commercial

gaining.

or

Productivity—Its Industrial

share

that

is

how

money.

this

turn

without installing the Rucker

even

Plan,

It

to

how

good account.

of

management's

per

productivity and this

of

principle of

com¬

even

value

illustrating

measure

collective bargaining, this measure

sure

increase of almost 15%

an

in production

Worse.

(393)

U CmKT

u wtf

PROGRESS
Ittl4

i047--

m

W.

trnwM»

PRODUCTIVITY AND PAT Alt U.S.

way,

U.S. Ctmnt •/ Mtmmfmmru. U.S. thfi- •/ Ctmrntrt*

'V47-I9JI- -'mV

4

US- D+i. 1/

t

ipjf, if

Tm

Xikiu-Nmuj VM4*j*r,

the

C.

to

New York City,
American

Stock

members of
Exchange.

The Commercial and Financial Chronicle..

26

certain

that

LETTER TO EDITOR:

tion?"

Dissects Views of Hairy Seats

On

gold-producers are,
a
state of frustra¬

"in

perhaps,

Decline in Government Office

Conspiracy Against Gold"

"The

to "a

Sears attributes

Saul and Otto

Fromkes, Senior Executive Officers of tie City
Title Insurance Company of New York, estimate a fall of
government office tenancy of 16% accounts for the slight

higuly

very

placed and influential member of
present Administration" the

point-by-point views expressed in

Frederick G. ShuII examines

Editor, Commercial and Financial
12,000-word address by Mr.
President of Cala¬
Central Gold
Mining Co.,

Harry

Ltd., delivered
Mining
Con¬

the

at

Western

Denver,

gress,

and carried in

t

sibly have promoted Mr. Sears to

merely

There

Communist

order to
one

and
Frederick G. Shull

it

have been: "The
Against An Honest
American Dollar." Skipping that,
for the moment,
let's examine,
point by point, Mr. Sears' views
as
to the part gold plays in our
would

heading

Conspiracy

financial

economic

and

structure.

Right at the start he takes issue
those

with
to

who

attribute

"value"

gold, and continues: "Gold has
had

not

'value'

is

founded

not

hasn't been

Reserve
effect

gold.

Act

that

and

when
to

1934"

of

$35

went

hasn't

into

carried

a

easily

can

Administration

be

rectified

at $35 an ounce of gold,
restoring the age-old privi¬
lege of redeemability-on-demand

promised in the Administra¬

question

Platform.

On

this

of

"value," it was the
wise Andrew Carnegie who told
the Economic Club of New York,
in 1908: "There is only one sub¬
stance in

the world which cannot

fall in value, because it is in itself
the world's standard of

that

is

gold, which

value, and

the

civilized nations have

banks

of

their

as

Sears

velt, in

radio address

a

"The

United

firmly

the

into

control

our

dollar."
not

of

hands

own

gold value

of

That idea, of course,

originate

with

had

derstand

practiced

and

Presidential
of

Oct. 22,

States ' must

its

the

on

Roosevelt—it

that

assuming

for

is

Mr.

Sears

pressed

by

ster,"

on

he

attributes

"published in
1780."
Whether,

latiah"

an

Philadelphia
or not, "Pe¬

related to "Daniel"

was

is

"Noah"

not

stated;

or

the

but

Encyclopedia Britannica, for some
reason, has overlooked "Pelatiah."
The expression "Continental
money"

in

appears

quotation

Sears'

Mr.

that "essay";

from

born until

with

1792, it

was

prompting the saying:

worth

Franklin

been

well

by

Administration

George

un¬

every

from

Washington

to

Herbert Hoover, inclusive—as

re¬

quired by The Constitution. Such
legitimate power of government is
recognized by Mr. Sears for, later
in his article, he says: "Control of

shall

"Not

Vt.,

industry would

organ

the

$100,000,000

tail

level.

already

is

1871,"
"We

decision

follows:

as

all

know," says Mr. Web¬
ster, "that the establishment of a
sound

and

uniform

currency

of the greatest

one

Constitution

metals

alone

.

.

was

ends contem¬

plated in the .adoption of the
ent

perform

.

answer

the

the precious
these pur¬

functions

of

long

bank

as

paper

retains this quality it is a substi¬
tute for money. Divested of this,

nothing

can

give

"value"

grains

of

of

grains

in

establish

the

fine

that "value"

1830's
16

at

And

the
24.75

while

reduced to 23.22

was

the
the

Dollar

gold.

set

to

1

in

order

to

relationship

of

gold to silver, it was never
again tampered with until 1933, or

for

practically

can

criticize Mr. Roosevelt for at¬

a

century.

None

tributing to the United States the
duty of "controlling the gold value
of

our

dollar";

but

he

can

be

severely criticized, along with his
New-Deal Congress, for
tamper¬
ing with the gold value of the




indication

music

the

that

of

any

At

first

it

glance

Court"

that

charac¬

at

words

these

"Su¬

mentioning

"Mr.

Webster," I gained the er¬
roneous impression that "Pelatiah"

that

apparent

quoting
Daniel

the

"Court"

views held
Webster

of what Mr.

the

emphasis in

by

the

was

great

as

Webster said on that

article,

1955," in the June 30, 1955

issue of the "Commercial
nancial

Chronicle,"

the

headed "Daniel Webster,

Passing
page

of

mentions

now

Mr.

to

home

the

a

cen¬

market.

and

Fi¬

He

He

said

that

"fanatics"

who

ers

have

and

he

"econ¬

to

seems

by

be

music deal¬
handled

never

line to pick

organ

any

organ fran¬

up

chises.

561,286

of

pancy

223,082,153

96.76%.

or

totaling 230,-

feet reported

square

favorable

This

feet,

quite

97.12%

in

recorded

occu¬

square

not

was

the

as

or

buildings with

rentable office space

as

overall

May,

the

when 2,523 buildings

survey,

230,368,616

of

feet

square

totaling 223,738,240

feet.

square

Government Tenancy Falls

Separate data with the

however, showed

Fromkes.

16%

survey,

a

Buildings

predicted

electronic

organ

probably
hind

put

more

promotion

months

than

that

in

the

in

that many manufacturers are

news¬

estimated that well
$6,000,000 will be spent in
direction.

over

this

He warnpd,

petition
the

will

however, that
be

dealer

keen

level who

who

record

He

explained

the

does

out¬

the lo¬

on

year

figures.

that

most

optimism

music

that many expect

1954 sales

will

will finish the

sales

among

com¬

it

and

standing promotion job

and

cam¬

He

papers.

cal

six

next

planning heavy advertising
paigns in magazines and

be

the

,

industry
will
emphasis be¬

any other period
history of the industry. He

in the
said

is

dealers

included in
only 7,to
Federal,

Charles

S.

Carlson

A. Davey have

been

and

these

May 1

on

occupancy

tion's

government-rented

subtracted

are

total

from

figures in the associa¬

main

survey

Fromkes

seen

that

Mr.

report,

noted, it can be
private-enterprise

the

tenancy in May amounted to 215,-

163,474
over

feet,

soua^f

South

of
The
rate

such occupancy year earlier.

private-enterprise
93.33%

was

increase

this

over

occupancy

spring,

93.23 in

also

an

May, 1954.

.Most of the 1,047,132 square feet
in
government occu¬

reduction

contraction in
Federal
rentals,
863,908 square
feet.
State and local agencies re¬
linquished 183,908 square feet. On
May 1 this yea*- the Federal ten¬
ancy in the 1,589 buildings with
government leases participating
in
this
survey
totaled
5.544.951
represented

pancy

the

square,

state

and

ancies 2.373,728 square

is

wards

lower

lo^al
feet.

La

Salle

William

Weeks, 134

Street.

Average office space rental in¬

ten¬

according

now

connected with
&

"Sky¬

current

Management" magazine,
Fromkes,
lists
a

occuoamw

City

last

A. G.

Ed¬

for

rate

New

when

May,

278

buildings with rentable space to¬
66,077,792

taling

labor

costs

cents

per

from

rose

80

83

to

foot.
In the,
buildings participating in this sur*'
vey vacancies rose from 1.6%
in
square

1953 to 2.3%
On

in 1954.

calculation based

a

a

fice

building

received

100,000

458

collected in

in
the

feet of rent¬
1954, or $8,$321,768 he

operating

expenses

retained

have

have
from,

But after meet¬

1953.

increased
would

in

square

space

than

more

would
rents

owner

$330,226

office

able

From¬

hypothetical "average" of-"

kes,

each

these,

on

figures, said Messrs.

of

net

a

before non-operat¬
ing exoenses and income taxes, or
$542 less than he netted at the
same point,
on the same soace in
1959.
Reduction per square foot:
$103,226

only

$0.00542.
•'

.

'

<

•

*

■

>

-

I

Brisbane City Council

Bonds Sold Privalely
The

Brisbane

today

nounces

City Council an¬

28)

(July

has sold $6,000,000 of 4V4%

that it
serial

bonds to mature in eouil amounts
$400,000

of

1956

to

each July 27 from
inclusive to 12 in-,
investors. The financ¬
on

1970,

stitutional

arranged through Mor¬
Stanlfv & Co. and Smith,t

ing

was

gan

Ba^nev & Co.

Proceeds

this

from

issue

to¬

gether wi:Ti funds from the city's
treasury wiH be used to redeem
nrior to rra+untv $3 022 010 of 5%
bonds

1927

of

1957

1.

due

Sept. 1, 1955 and S3.310 000 of

on

5°7r,

bonds
on

19°8

of

due

Feb.

1,

Aug. 1, 1955.

square

feet

re¬

Chicago Mutual Inv. Adds
(Special to The Financial Chronicle)

CHICAGO,
erick is

,

Brod-

with Chicago Mutual

now

Investment

tage Grove

J.

111 —John

Company,

8151

Cot¬

Avenue.

T
f

ported occupancy totaling 64,829,-

York

98.24%,

Sons, 336 Maine Street.

foot,,

1954,
N.A.B.O.M. re¬

this

to

port, but at the same time operT
ating costs rose 9 cents, from $2.18
to $2.28. Within the latter figures,

1958

Messrs.

said

New

QUINCY, 111.—John P. Hoeff'er

11 cents per square

rose

from $3.27 in 1953 to $3.38 in

datq in

survey

association's

939 square feet. A year

(Special to The Financial Chronicle)

profits.

'

5

NA.B.O.M.

The
the

98.11%

With A. G. Edwards

frustration."

other industries last year—

greater sales income, but slightly

increase

or an

the 214,772,429 square feet

Berg,

added to the

staff of Hornblower &

talking about 'value' when all
they are discussing is 'price,' hence
they are in a state of perpetual
possible

When
areas

York

111.—Norman

meal ticket"

it be

agencies

.

(Special to The Financial Chronicle)

on

manv

he

scraper

(which later excludes
me), and continues: "They insist

Fromkes,
picture that

918,679

feet

added
revealed
the
developed in

operations,

space

Messrs.
same

ing

to increase

by at least 30 to 40%.

Hornblower & Weeks Add
*

fice

this survey were renting
square

Office

Higher

of these "Experience
Reports" covering of¬

Analysis
Exchange

basic

16% droD in
the government tenancy in these
private buildings, said Messrs.

Saul

Minshall

CHICAGO,

omists who make the subject their

Could

of 2,519

managers

Outpace
Rents

come

owners

ants in the 1954 survey.

there

interest

strong

a

section

article,

organ

introduced for the first

was

time at the show.

1834."

the concluding

Sears'

spinet

low-cost

new,

which

"History of the American Dollar:
1792 to

survey,

this year, or 1,047,132 square feet
less than the 8,965,811 square feet
under lease to government ten¬

still

speaking; but on sensing
what was being said, it became

was

in

re¬

industry.

by his company have been on

ter."

preme

the latest

state and local

money

be their representative and
capable of being turned into them

So

in

and

ten

pres¬

must

will.

volume

Expenses

by

added that most of the sales writ¬

occasion please refer to an

Washington

half million

tered

Court

President

clusively delegated

company

from

hi^h

ex¬

written

no

in

said

He

Currency," in the U. S. Senate on
Feb. 22, 1834. For an exact quote

was

his

convention, Minshall said that

and entrusted
to Congress by the Constitution."
That is why the Administration of

money

that

dollars in orders in four days at
the

in

"Experience

pared with $3.65 in 1953.

rentable space reported occupancy

Pointing out

the

In

with

season.

has

both

occupancy

industry still continues to be

"Supreme

for

accounted

was

latest

oc¬

earlier, said Messrs. Fromkes.

will have their best Christmas

ers

with

States

re¬

occu-*

another re¬
report showing

Exchange Reports" averaged only
$3.55 per square foot in 1954, com¬

percentage
in
the
association's
May 1 semi-annual survey, com¬
pared
with
occupancy
a
year

1954,

presented in
his address, "A Redeemable Paper

United

at the

mark

"Pelatiah" essay, Mr. Sears quotes
a

Saul Fromkes

City

Insur¬

increases

music deal¬

there

from

close to

soar

He declared that the

cession

quotations

in

Organ Co., of Brattleboro,
predicted that sales in the

Continental!"

with

As¬

Chicago, Burton
President of the Min-

Minshall,

store

was

N.A.B.O.M.

association's

Officers

the

Space rented by privateenterprise tenants actually showed

Manufacturers

Music

of

Convention

dealing somewhat exhaus¬

a

After

tively

not

of

group

a

increased

issued

by 600
buildings submitting data for the

payers.

manufacturer

before

were

occupancy.)

store

however,

pancy,

government-rented
space-at ultimate savings for tax¬

music dealers at the National

sociation

but

inappro¬

seems

Speaking

(No reports
York

that store income obtained

cupancy

record sales year in 1955.

ex¬

buildings reported
of their store
but this year the- same

Offsetting

year

out that the entire decrease in

High Sales in 1955

Web¬

over

occupancy

New

on

contraction in

up a

views

than

Company, of New York.
Explaining this seeming contra¬
diction, Messrs. Fromkes pointed

recently declared the organ indus¬

"Pelatiah

improve-*,

rentals, in office^
May, 1954. A yearn

cent

tive

Industry
Establishing Record

Mr.

marked

a

store

to Saul & Otto

of

try in the United States will rack

quotes
one

whom

to

that

in

number reported 99.39% store oc¬

according

Title

honest

essay

at

:■

Sees Organ

An electronic organ

showed

ment

cupancy.

ance

on

also

tenants,

space,

Senior Execu¬

correct;

and

was

a

rental to private enterpriser
said the City Title offi-ri
the association's May survey*

space

Fromkes,

'

G. SHULL

with his storv.

"sound

money," let's ^o

was

ago,

Administra¬

present

Chapel Street
New Haven 15, Conn.
July 9, 1955.

That

money."

absolutely

before

but

of

it

of such "frustrated peo¬

the

Occupancy Improves

cers,

97.04%

space

Spring

2009

to return to

They alone, therefore, are
mOney and whatever else is to

ing statement to President Roose¬

did

is

statement

in

in

to

FREDERICK

Rus¬

poses.

Mr, Sears attributes the follow¬

take

to

Store

In line with the upturn in office

ago

fundamentally
stronger this

in

eggs

elected

was

we were

honest

re¬

serve."

1933:

and

sound

and

1952

his

priate to bring "Continental mon¬
ey" into the present discussion,
except that it is to be credited

itself;

firmly fixing the "value" of the

tion's

all

Dollar,

the

is

Dollar

—as

not have

Note improvement in store

outpace higher office rents.

buildings,
1,175

that

demand

basket.

since the American Dollar

Gold

government gets around

our

transfer a portion
goods to Russia, in

fine ounce of
that
lacks

per

isn't

"value"—it

fact; for there

on

gold

of

It

United

the

time since the "Gold

a

that

"value"

in

1933." That statement

States since

will

pledges that

appropriate

a more

Would

add:

more

Holding

Following that tribute

that

me

had

sia, Mr. Sears says: "The present

reading
article

Sears

of his worldly

But

strikes

our

view, it is to be presumed that

a

governmental

that

simi¬

governments
such

freedom."

incompetent

on.

striking

a

office

I will
God we

tion!

the

Mr.

so

is

ple"

gold;
communism;

after

Administration,"

present

data

survey
showed

it would

length of the yardstick,

following hypocrisy make no end of trouble."
If that quotation truly depicts
in
his
money
discourse:
"Your
safety and security as an Ameri¬ the views of "a very highly placed
and
influential
member of
our
can is no greater than it would be
volunteer the

towards

money;

agencies,

pos¬

of

lot of

rritory:

e

could

government towards gold and that

Against Gold,"
covers a

of

larity between the attitude of

"The

spiracy

o n

stability and we
Although the latest survey by
opposed to any
the National Association of Build¬
change in the present gold content
ing Owners and Managers showed
of the dollar. The best thing that
a
slight decrease in gross office
gold does for us is to serve as a
standard of value — a yardstick builoing occu¬
pancy, close
against which to measure other
analysis of the
values.
If we start changing the

Union.

under the

heading

wbnders what

One

demand.

expsnses

say

is

money

if you were a citizen of the Soviet

July 7 is¬

your
sue

was

principle

every

Sound Money.

Sears,

veras

"debauchery"

to

contrary

Chronicle:
The

which

dollar,

and

occupancy

vigorously

are

Mining Co., Ltd., that appeared in July 7 issue of "Chronicle."

thing

important

most

office space

decrease in

ment":

about

President of Calaveras Central Gold

article by Mr. Sears,

an

state¬

"recent

alleged

following
"The

Tenancy

illustrate his point Mr.

To

our

C

.Thursday, July 28, 1955

(394)

,of

buildings
area

of

rate

occupancy

based

63,007,338

earlier the

on

the

square

with

a

64,135,031

was

occupancy

feet

total
square

in

363

rentable

feet.

With Harris,

Upham

(Special to The Financial Ch onicle)

CHICAGO,
Kleehammer
with
Cnn f V*

Harris,
T

r\

111.
is

—

Upham

Qqllri

Wendel

Cfroof

B.

connected

now

&

Co.,

135

olume 182

Number 5450

The Commercial and Financial Chronicle

...

ontinued from first page

27

(395)

of

power

Congress

to

distribute

Federal funds to needy old people
or to disabled and retired citizens

Social Security or
Socialistic Coercion?
to spend billions more than

ues

takes in.

We

are

constantly

re-

because

they are effectively
militantly organized.

inded that, to balance ihe budgnext year,
ent

must

the Federal Govern-

collect

ad of less.

bad

a

But,

taxes

more

election

an

in-

year

time to advocate tax

Any orthodox

eases.

in-

politician

'11 tell you that a candidate who

mpaigns

for

higher

taxes

ked before he starts.

the Federal spenders still de-

s,

and

more

What

then,
have

yers

the

is

The

political

resourceful

had

seductive, habitnarcotic,
popularly
Federal Social Security,

as

at last is

re

ake-cil
11

brand of political
which
the
voters

a

for

gladly

the

pay

tribute

riate

The al-

the

is

rming
own

al-

vote-

alternative

an

pecially made to order.
rnative

liticaJ

and

most

extor-

the

at

al

pitch-men

them.

on

every

nere

ana

who

it

palm

made

great

a

owing virtue out of their
uing itch for more and
your

and
conmore

money.

The

Socialistic

vote

hungry

-

have
planted the great
Security deception deep
wn in the popular mind.
They
tilize
it
heavily
with
good
rds, pious promises and delibnters

cial

ate

falsehood.

oted

Congressmen

ack

To

It

this

tell

the

tegrity of
of

are

afraid

to

truth

about

the

of Federal

in-

Social

a

saint and the

cour-

lion.

Fortunately a few
our Congressmen possess these
cessary qualities.
For instance,
a

presentative Noah Mason of IIis

ois
il

Federal

d has

never

im truth

the

of

aware

of

country for what it is, namely,

fraudulent

Social

Security

hesitated to tell the

about it.

"Pcnzi-Type
in

,

said

ason

to

preservatives:

Game"

have

not

the

"Our

House

Social

of

Se-

andchildren to meet the obliga-

nsjthat the present generation
pposedJv has
is

curity

already

paid

is

people as a plan to
security in old age. It is
Ponzi-type shell game that is
und to collapse when the load
comes tco heavy to carry."
timorous

More

and

less

forth-

ht

Congressmen have told me
at to oppose Social Security is to
mmit political suicide. Nevereless, Representative Mason has
en

ess

elected and reelected to Confor

seven

nstituents
s

candor

straight terms. His

obviously
and

his

approve

courage.

of

Just

t week

Congressman Mason was
e of only three members of the
use Ways and Means
Commite who voted against the current
tempt to raise your taxes under
e
deceptive
misrepresentation
at the new money is going into
trust fund for your disability
id old age. He was one of the
iliant 31 who. voted against the
>w
Social Security bill on the
or

of

This
jrts

the

pending

to

legislation
disability

liberalize

tirernent
hat

House.

the

benefits and

pur-

and

to extend

Social Security
icepticn
"coverage"
to
erybcdv in the United States
ccept medical doctors. What the
great
calls

mding legislation really does is
put riew and higher taxes on all
nplovees, all employers and all
e
self-employed peoole in the
>untry excepting only the doctors,
e doctors have escaped thus far




31

the

for

rolling

by rank and

The

each

over

calculated

on

a

of fact,

without

and

reference to

any

specific reliance
curity

taxes,
propriates in

Congress
cash

or

Social

upon

Se¬
ap¬

now

to

grants

tne

states, approximately $1 billion a
year for thousands of
aged and
disabled

people throughout
the
country. The inherent evil of the
great Social Security deception is
not in the payments that Congress
makes

Social

to

Security

bene¬

of

payments

as

insurance

premiums for the right to get back
specified benefits at a specified
time.

There is

such

no

is

payment

to

important
upon your

ability to plan

day's work
that wi-1 take you before qualified
prospects, and also .when you are
the

interview

toward

the

whether

order you

objective

obtaining

you

the

there

are

not

or

to

haven't had

of

order.
get

an

sales in¬

a

terview—you have just talked.

From

the

If

power

the

Constitutional

of Congress for the

the

Supreme

Court

held

Congress

money,

tax

can

payments

and
earnings of em¬
ployers and employees in the same
way that it can
tax a bottle of

whiskey

or

ticket

a

to

the

ball-

When

years.

tion

of

has

been

until

Congress then judged to be

the general welfare of the country.
The Court held that

Congress has

Constitutional

to

power

ear¬

segregate certain kinds
proceeds for certain pur¬
whether the purposes be
farm-price supports, foreign aid or
or

tax

poses,

Social

Security payments.

Butler

Machine
S.

297

S.-l

U.

Companv

548

—

vs.

Helvering

(U.

S.

Stewart

Davis, 301
vs.

Davis,

301 U. S. 619.)
All Federal taxes,

criminately into the

the

resolution,

the

system

current

pending
medical doctors

only

left out.

are

Congress could continue to col¬
the

payroll

so-called

taxes

Social

though

even

discontinued

Security

all

Con¬
Social Se¬

curity benefit payments. Congress
could wipe out the Social Security
payroll taxes and yet continue to

present tax is raised to

2%%,

or

general tax re¬
ceipts of the Federal Treasury.
Any apparent connection
be¬
payroll

taxes

payment of Social

the

and

Security bene¬

is

be

increase

to

both

the level of salaries

and

include

first

the

then

and

of annual

taxed

to

thousand

six

thousand

earnings.

is

to

the

high

this

of

money-raising es¬
calator except the complete con¬
fiscation
of
all
salaries
by the
government.

range

wage

withholding that they

could-collect

if

never

these
extortionate taxes by their right
name. Through 1950 to the begin¬
ning of 1955, the Federal Govern¬
ment

collected

they called

$18,965

billion

in

Social Security taxes.

power

to establish such

a

it

as

came

in

was

spent

for

foreign

as

fast

aid,

that

expenses

connec¬

was

of the Government. What
aside

put

Then

cus¬

find

possibly

can

the
your

achieve.

few types of quali¬

a

fied investors and

Elderly

individual

in

moderate income brackets—would
he want

more income with
greater
stability?
What does
he
want
most? Larger checks on which to
live, more peace of mind? If so,

offer

him

this.

You

can

do

only

"The

present

fund
is not
quite
large
enough to pay off the benefits of
existing beneficiaries"—those al¬
ready on the receiving end, in
trust

1954

This

"liberalized

ness

into

coverage"

law.

The

believes

now

it

If you are paying

Social Security
there is thus $15 billion

less than nothing in the fund
you

supposed

are

old

your

Small

age.

to

be

that

accumu¬

retirement and

wonder

that

the

Secretary of the Treasury recently
testified that "under the present
provisions of collections and dis¬
bursement the Old Age Survivor's
Insurance

estimates
it will re¬
quire $20 billion per year in taxes
to meet the Social Security pay¬
ments promised in
the pending
bill.

House

1975

Mason

from now,

You

estimate

own

of

vears

make

can

of what

payrolls will

confiscated

in

order

your

percentage
have to be

to

that

meet

gigantic annual obligation.
There is one short, sure
take the sting out of the

to

Social

System without becom¬
ing snarled in the mathematical
hypothications of the
Socialists
who insist that, eventually, it is

the

ultimate

who

paid the

why

between

of

not take

the compulsion

Insurance

lion worth of Government I.O.U.'s.

ance

At the end of last March the much'

people

advertised

out

completely voluntary?

Reserve

Fund

is

actu¬

ally non-existent. The legal illu¬
sion of such a fund was conjured
uo
in
a
political conspiracy to
dissolve popular resistance to one
of the most cruel
tems
upon

and

unjust sys¬
of
taxation
ever
imposed
the American people.

This exposure of the Social

curity tax
against

fraud

is

government

disabled, and retired
are

in

Se¬

argument
aid to aged,

no

and

1955?

reserve

$20,490 billion
I.O.U.'s.

Merely $7,200 bil¬

This

all

fund contained

in

accumulation

is

not

asset. On the contrary,

it costs
current taxpayers $500 million an¬
nually in maintenance or interest
an

charges. Eventually all these bonds
must be paid by additional taxa¬
tion.

who

Testifying before the Ways and
Means Committee of the House of

Social

tax

If it

is not

his

crease

simply an insur¬
then
why
force
into it? Why not make it
other

the

of

Social

hand,

if the

Security

pay¬

benefits

valid

obligation of Govern¬
ment, like national defense, then
let it be paid for
by ALL tax¬
a

payers.

It

is

a

gross

and

tions.

Does

discus¬

a

on

investments

cruel

income.

in

lie
he

have

in¬

His

direc¬

other

large
held
companies that he might wish to
liquidate and thereby place his
estate in a more favorable posi¬
blocks

of

tion

the

He

in

in

stock

event

any

closely

demise?

his

of

wish to speculate
for quick capital gains just fpr
the pleasure of it.
might

I

had

once

real

lation

the

of

yet

if

didn't

that

figured
he

it

losses

had

very

GOV¬
OF

MOST

HIGH

OF HIS

BECAUSE

fun

was

THE

PAID

You

PAYMENTS.

know why

which

in

him

left

profit that he made,

ERNMENT

TAX

specu¬

He

bracket

tax

the

he

and

buying

stocks.

himself

found

little

never

people do things until

talk it

you

for

profits Jie might make,

the

fact

he

account who had

an

reason

common

need
in

even

with them.

over

Then

may be surprised to find the
REAL -REASON
THEY
WILL

you

GIVE

YOU

ORDER.

THE

The Close

The

close

part of

a

interview.
cult

natural

most

There is nothing diffi¬
it.

about

found

the

is

properly conducted sales
After

you

have

interests

what

out

your

than anything else

prospect

more

and

have shown him how he
it, you must have a

you

obtain

can

meeting of minds.
for the

ask

this
to

but

It is

do,
do

only be unfair
also
to
your

not

yourself

prospect.

When you
Unless you

order.

will

you

simple matter of

a

understanding .what you are do¬
If you
are
offering secu¬

ing.

rities

will

that

the

of

life

fill

need

vital

a

another

individual;

if you can
ter

help them obtain more
mind (bet¬
security for their savings),
more peace of

income

real

more

their careers,
fun

speculating
afford
it),

can

after

taxes,

will help them in
or just having some

that

prestige

(for

those

you

who
doing

are

something worthwhile in helping
that

achieve this.

other fellow

Unless

you

believe

can

that

society;
unless you can believe that the
work you are doing is beneficial;
unless
ycu
can
approach
each
prospect that you meet with the
confidence
of
your
convictions
is

job

valuable

that you can

had

mind,

HELP HIM, then you

find

else

or

to

get into this frame of

better

new

a

busi¬

The difference between sue-,

ness.

sales work, is

in

failure

and

cess

primarily on this
factor—if you go

sometimes based

important

one

out

talk

and

to

about

PROSPECTS

QUALIFIED
QUALIFIED

BENEFITS THAT WILL ACCRUE
TO

WHEN

THEM

THE

YOU

THEY

ORDER

THEY

UNTIL

DO

RECEIVE

FITS,

I

make

many

am

substantial

tion

with

government.

exempt

home income

real

injustice to force those who earn
$4,200 a year or less to assume the
entire burden of a general obliga¬
of

Possibly

might

a

svstem,

ment

is

Security?

after all, but

On

Government

within the

persons

need. It is well

1950

in

tax

taxable

terest

your
way

Security

$18,900

his

for

would he like more

take

his

of

income,

year.

tion. For this reason, the so-called
Federal Old Age and Survivors'

billion

his

of

current fiscal

taxes

retirement of those

sion

in

Congressman

plan

sufficient

If not,

income?*

System
is actuarially
(Congressional Record,
July 5, 1955, Page A 4871.) That is
the great understatement of the
unsound."

that. 20

for

"

own

real

was

would

take $35 billion just to pay the
people now receiving benefits.

taxes now,

buy

to

banks

Wealthy retired individual. Does
he

bonds?

wit¬

same

that

local

fund

of

type

the

before

was

going to be just wonderful. While
we are waiting to see who is right,

for

ment

THEM

tsaid:

like

would

some

children?

no

retired

he

in

growth?

prestige purposes. Would he be
interested in a systematic invest¬

where their

see

major interest lies.

lating against

limit

no

national defense and other current

Congress is without Constitutional

prospect

Let's look at

tax

five

first

the

the

The

purely coincidental.
Supreme
Cornt
has
held

benefits.

are

you

terms of

important benefit that

enacted

$7,249 billion? It

benefits out of the

tomer
most

investment

Think in

this tax, this means that 5%
of every pay check under $4,200
a
year will be funneled
into the
Federal Treasury. The next step
pay

curity

Security

the

other words.

tween the collection of Social Se¬

Social

present

makes

offering.

25% above the present level. Since
both employer and employee must

Throughout
the same period, the Government
paid out Social Security benefits
totalling $11,716 billion.
What happened to the differ¬
ence,
the "profit" so-called, of

all

prospect will accomplish when he

ministration

The original tax rate was 1 % on

will

your

1952, the chief
actuary of the Social Security Ad¬

25% Increase

general
fund
of
the
Federal
Treasury.
Meanwhile, the popular illusion
From that general fund. Congress of a Federal Old
Age and Retire¬
makes periodic appropriations for ment Insurance
system enables the
all the purposes of the Federal Federal
spenders to roll up bil¬
Government, including payments lions of dollars in additional tax
for Social Security benefits.
revenues
through Social Security
same

Think of what

Representatives in

the first $3 thousand of earnings.
Under the pending resolution, "the

There

income taxes,
taxes, gasoline taxes and
Security taxes, go indis¬

into

forced

under

A

in its future discre¬
tion, spend that money for what¬

first

was

ranging
from
agricultural labor to
the
selfemployed. One after another, each
of these exempted classifications

Having thus raised the money,
the Supreme Court said that Con¬
could,

Act

people

game.

gress

the

passed
in
1935,
it
expressly
exempted nine separate classifica¬

way

stock

want

and

would show him how he could in¬

will analyze the correct

you

$15,000

he

Possibly

some

Asking for the Order

any

bracket

$25,000.
How
about his plans for his children?

conversation

major

visit,

Unless

a

direct your

can

Young business executive, wife

Would

sale.

inter¬
of the

and two children, income

the

either

type
some

talking too.

on

two

own

conference

close
fail

to

these

of

the

between

of way.

that if and when the Government

fits

both

or

in

view wherein he does

prospects

not you

or

Other

procedures will depend

con¬

no

make

all.

at

try

call.

sort

of

Interview?
it

good

you

stance,

pay

Whether

the
on

right. The

under

obligation

call

never

your

return

benefit of the general fund of the
United States Treasury. In sub¬

gress

and

representation

Security

on

qualify the prospect

making

salesmen

you

taxes

an

calls

promoters

taxing

lect

before

The fraud of the great deception
is the deliberate and official mis¬

Social

make

Security

exercise

U.

have failed to

in

of

salesmen

prospects that are not going to
produce
business
because
they

ficiaries.

j of the great very beginning the Social Security
Tax Act has carried this provision:
deception never
advertised it to the people as a "The right to alter, amend, or re?
slick, easily collectible form of peal any provision of this act is
constantly
increasing
taxation. hereby reserved to the Congress."
Pursuant
to
that
reservation,
Nevertheless, when the1 original
has revamped
and
Federal Social Security Act was Congress
passed upon by the United States changed the taxes, benefits and
the coverage of
Social Security
Supreme Court in 1937, it was
validated by that Court merely as many times during the past 15

vs.

What Is
Some

to handle a sales interview
will go about it in a natural

The

ever

By JOHN DUTTON

year

out of the
general funds of the United States,

Government

;

Supreme Court Ruling

Social

an

Securities Salesman's Corner

Congress;

funds

'

matter

a

tractual

Social

ovide

to

more

false pretenses.

estate

erican

372

once

powered

for.

that

been

the credulous American taxpayers

dishonest and immoral prohas been sold to the

a

reve¬

resolution, but 403
to
nothing
against it. Thus, as; usual, the great
deception of Federal Social Se¬

of

Congressman

rity set-up is an unsound, disnest, inequitable system which
oposes to tax our children and

am

a

by increasing Federal taxes
on
payrolls, then the vote in the
House of Representatives would

no

Shell

1950,
this

to increase Federal

measure

mark

Back

levied

purpose
the world. If the

over

such

the world.

over

As

real purpose of this legislation had
been
frankly
disclosed
to
the

needs

in the political atmosWashington requires the

of

ere

deeply

so

political marijuana.

ious narcotic

curity

is

that the great major-

now

of

and

conceivable

all

States.

for sub¬
sidies to foreign governments all

purpose, namely, to m?^:e
and more money available
for the Federal spenders to wast»

same

Thus have the Fed-

spenders

appropriates

one

for

United

distribute

lavish scale for only a small part
of the money which Congress now

more

sing the praises of the brazen

e

e

for

are

could

nues

money.

rnative?

f

is

Neverthe-

These increased taxes

the

of

you

GIVE

THEY

AND

THOSE

NOT
WILL

THIS

BENE¬

sure that you will
friends and obtain

clients
over

that

will

the years.

stick,

28

Thursday, July 28, 1955

The Commercial and Financial Chronicle...

(396)
i

Powell Company Fund

Mutual Funds

Exhibit Highly Effective

By ROBERT R. RICH
WELLINGTON FUND in the first
of

half

set

1955

total

sales,

gross

the

announced.

iund,

Gross

of

crided

June

26-year-old

this

lor

the

sales
fund

mutual

30,

1955,

Fund

$32,-

were

Wellington

1955,

30,

total

record

had

assets

net

$459,688,000, equal to $26.78 a

share

the 17,164,632 shares then

on

outstanding.
total

compared with
of $335,151,000,

This

assets

net

foo ?oq°"vP^'15outstanding on June
a/?ar5'°U theT15'"
129 128 shares
Mr wnkins attributed the
recite

results

half-year

ner

record

to

value

portfolio securities and to the ad¬
of 11,000 new shareholders
the past six months-, bringing

dition
in

the

last,

30,

shareholders

of

number

June

at

high

711, representing an increase of
'65.6% over the net asset value of
$119,070,391

new

a

1954.

June 30,

on

The number of shares outstand-

ing

and

number

date.

same

shareholders

of

highs

new

of the

as

43%

Approximately

0f the shares

held

are

by women,

24%

by men, and 20% in joint
ownership. The remaining 13% is
held by

fiduciary and institutional

holders.

Net asset value per share as of
June

3Q> ^

$H 32

compared with

n£w

a

Vreh
March

™

$13.15

on

gain

capital

$0.31%

cents

1,

1955.

to

reflect

per

sentative, all of George B. Powell Co., Inc., and Ernest Williams, representative
Hugh W. Long & Co., Inc.

distribution
of
share on Feb.

The

are also adjusted
2-for-l split which

They
a

became effective

GROUP

SECURITIES, Inc., lead-

the

of

and

year

about

was

Net assets increased

to $55,112,-

000 from $47,218,000 at the begin-

ning

$38,824,000

and

1955

of

iUficant

position
months.

sig-

its over-all
during
the

in

change

investment

°n

Factor

a

..

.

.

..

.

holders of Axe-Houghton

fund

con-

President, pointed out that "con-

common'stocks.^""y inVeSted ta

tinued improvement in, business

tical

the

purposes

Inc.

conditions
that

abroad

contribute

timism.

If

provement

Interested In,

range

Investing In

R

j

c

a

providing

a

investment in securities selected

its shareowners.

other
dealer

from

your

income

120

reported

an-

NUCLEAR

AND

today

that

its

ou

April

30

of

previously owned

Sheraton

tral

J 930

RR.

the

Powell

questions

answering

well

as

Funds

at¬

Company staff
having

as

the

of the sharehold¬
of their respective Funds. They were Don¬

ers

ald

Brayshaw,

Ernest

many

Lord,

Williams,

Abbett

and

W/ Long

Hugh

&

Paul A. Just and William C. King of

Company;
Co., Inc.;
Television

not

were

(the latter two
time the picture was

the

at

present

taken).
This

was

the first experience this firm had in

exhibit of this type and it was very pleased
with the results.
an

were

Chicago,

,

4V2s

_

Fund

With

have
the

Massachusetts

in-

been

additions,

ap-

convertible

nuclear

companies

science

—

15%

nuclear science and

companies

of

agement effort

with

are

engaged

panies deriving principal
from

of

in

in-

in

com-

revenue

45%

significant

in

man-

the

Company collateral trust

6s of 1980.

field.

In

the

or

research in this

overall

position

of

9ft 719 74**

xirith

witn

z»,/iz,/4d

chares

C.

Industries

P.

Chrysler corpP' ZZZZZZZZZZZZZZZZZZ
I. T. Financial Corp.j.

C.

oui

standing and 126,901 shareholders. General Public utilities..
21.00Q
are the highest figures for
^"poWi"uiht":::: n,'Soo
the en" of any quarterly period Ohio Edison company
n'ooo
-

.,

.

,

...

0,

trusts 31-year history and

in

Pullman

Incorporated
on Corp

Sinclair

June

The

the

last

30

net

asset

quarter's

This amount
tal

Sai"

per
^

a

year ago.

Major

capi-

in

$31.80

to

It compares with the

net asset value of

Diversified Investment Fund, Inc.

a

1ir;ii

T.

share.

$31.51.

of 29 cents

equivalent

i

share

per

was

together with

is

$23.06

per

share

in

the

Company—

Shared

American

Tobacco

American

Viscose

10,000

Co

Corp.

.____

15.000

ImSS?"

g^rich <b, pj

}J;°°o

International

Harvester
Iowa Power & Light Co
_

.

,,,

Louisville

Reynoids

J

„

&

Nashville

Tobacco

Southern Calif.

.

.

changes

15>°°o

SALES

value

payment

February

(indXZZZIZlZZZ loiooo

United States steel CorP

year.

end

7.100
34.000

;

in foXern Ran^c^ Company—

$639,851,355

with

compared

on

Fundamental Investors, Inc.

19,400
i5>0oo

Corp

standing and 117,428 shareholders

com-

70.000

20.00

Motors

vested

well-established

—

Consolidated Natural Gas Co

total assets, 27,742,563 shares out- standard oil Co.

in

—30,00

General

out-

snares

Sharfe

Company—
A.

These

at

m

ended June 30,

months

three

1Q4
194

PURCHASES

Trust,

largest mutual
company, reports for

the fund, 83% of its assets are in-

panies.

J

Investors

and

1955, total net assets Of $904,905,-

.

debenture

oldest

first,

investment

in

Billion

M. I. T. Assets Near

..

Corporation

Highest:

G. D. Searle and

Carbide

creased.

Fund's

holdings

in Algom Uranium, Gunnar Mines,

Union

Fund

4%s of 1967, and New York Cen-

Corporation

New York 5, New York

Broodway,

SCIENCE

Chas. Pfizer,

debenture

1 nnc

of several of the

assisted

opportunity of meeting

Television-Electronics Fund and 2 shares Broad

vested

1995,

Securities &

Establ!sh«d

Bond

holdings since

pany

be ob¬
investment

may

and

Shares Management Corporation

proximately 60% of assets

America
Research

long

a

Changes

or:

National

is

Rock Island and Pacific RR. Com-

Prospectus and

information

tained

it

j

by the Fund. These

for possibilities of long-term
growth of capital and income for

in

the

at

retired officer
living in Hallwood,
in that

representative

op-

im-

real

three issues not

Representatives
tended

Co., Inc., was
an
advertising and promotional project.
Four
prizes were offered (5 shares Fundamental In¬
vestors, 10 shares Affiliated Fund, 5 shares

ment

supervised

presided

dignitaries,

nounced the addition to its invest-

stock mutual invest¬

common

ment fund

other

as

their

now

location.

three States,

the

of

is

less¬

general

Manhattan

Series

is

Virginia,

as

The Governors

Eastern Shore. Ellis A. Kerr, a

of the Naval Air Force and

The exhibit of George B. Powell

belief

factor of great importance."

l>ond rund

National Growth Slocks

the

tension
to

Axe,

international

the

is

W.

and

international

ening

Are YOU

Emerson

This company has a long-established clientele

opening ceremony.

prac-

Fund,

well

as

Stock

For all

three

past

music.

the

In the reP°rt to the share-

,

questions regarding

were

tremendous amount of business has resulted.

on

judges; a two-hour
parade comprised of military, floats from the
three States, civic organizations and private in¬
dustries; 50 exhibitors representing different
phases of industry, and climaxed by the Grand
Ball with Blue Barron's orchestra furnishing

June 30, 1954.

T„

a

Some of the activities were a Beauty

ing publications acting

in-

their

to

type of in¬
objective with
space
provided for name, address and phone
number.
Through this medium the company
obtained an excellent prospect list from which

Contest, which is the third largest held in this
country; a National Senior and Junior cooking
contest with entrants from all over the 48 States,
and with Food Editors from all of the top-rank¬

President.
30,
1955,
52.2%

a

visitors

invited to register. On each registra¬

were

slip

which

for

of

vestment desired and investment

—

crease over the $61,905,664 figures

Peace

National Investors made no

Anderson,
at June

reached $94,219,606,

tion

14

was

Virginia.

12

earlier.

months

Herbert R.
Net assets

13,

20,000 people attended the Festival,
sponsored by the Poultry Industry
of the three States
Delaware, Maryland and

a

59% greater than on the same date
ill 1954

June

held

Over

which

six-month period ended June
high
of
$19.20
per
30 at $12,739,872 against $7,013,June 30, 1955.
39? for the same period last year,
This was a gain of 16%
from representing an 82.7%
increase
$16.53 per share reported at the for the year to date, according to
record
share
on

ctart

Festival

Chicken

Onancock, located on Eastern Shore,

at

Investing)

booth

Mutual

Virginia.

inS mutual fund, reports sales for

Corporation increased to

15

Street

Company, Inc., of
Funds at the

Powell

B.

exhibited

Va.,

Delmarva
and

NET ASSETSof National Investors

George

Norfolk,

April 13, 1955.

140,000.

Donald Brayshaw, representative of Lord, Abbett & Co.;

Seated left to right are:

George B. Powell, President; Mrs. Ellen C. Miller, Secretary; Ellis A. Kerr, Repre¬

Thes'e ^pe/share^values ar^ after
these per share values are alter

a

of

to

value

high of $197,153,-

new

a

ban-

substantia] appreciation in
of
Wellington
Fund

sales,
the

reached

also attained

v

June

At

AS OF June .30, 1955, the 101st
Quarterly Report of Fidelity Fund

months

six

542,000.

of

J.

A.

of

Vice-President

Wilkins,

in

and showed that the net asset

resources

shareholders,

of

number

records

new

.
.____

cn

25,000

Co.

Rights- 80.000

10,000

trust's standard oil Co. (Ohio>____

portfolio during the second quar-

SU4y2a% preferred

ter Of 1955 included:

Sunray

nn„

60,000

RR

"B"

Edison

11.109
38,000

76.ooo

Mid-Continent Oil

2nd

Pfd. 38,000

27™ CONSECUTIVE DIVIDEND

Manhattan Bond

The Directors of Television-

Electronics
declared
per

Fund, Inc.

Fund, Inc. have

a

dividend of

EATON & HOWARD

EATON & HOWARD

BALANCED FUND

STOCK FUND

80

Diversified Growth Stock Fund, Inc.

share from investment

income, payable August 31,
1955

to

record

Managed

of

July 29, 1955.

shareholders

EATON

Prospectuses available
Chester D.
July 21, 1955

Tripp

these

mutual

Fiesident

local

investment

135 S. LaSalle Street Chtca;o 3




&

IIO V \ RD

INCORPORATED

illtnoii

funds

on

through

firms,

or:

HUGH W. LONG AND COMPANY

24 Federal Street

INCORPORATED

BOSTON

Elizabeth

3,

New

Jersey

Prospectuses from

J33

BOSTON
ESTABLISHED

your

1914

Montgomery Street

SAN FRANCISCO

Investment Dealer or the above.

;

Number 5450

olume 182

..

The Commercial and Financial Chronicle

.

30, 1955

INVESTMENT COMPANY STATISTICS—JUNE
146

(397)

Hugh W. Long & Co. To Build New Headquarters

companies: 117 open-end companies

member

23

anji 29 closed-end companies
(000's of dollars)

(incl. funded debt and bank loans)

I. TOTAL NET ASSETS

1955

Mar. HI, 1955

Dec. 31,1954

companies $1,298,976

$1,219,788

$1,188,204

7,185,699

6,524,486

6,109,390

$8,484,675

$7,744,274

$7,297,594

June 30,

29 closed-end
117

open-end companies

2nd Quarter

1955

(includ¬

29 closed-end companies

>

r.

<> Months

1955

H. CAPITAL CHANGES
■

ing bank loans)
New

capital

1

$5,617

—

$29,136

Repurchases (incl. partial liqui¬
dations)

391

—

25,704

117

Open-End Companies
Sales of shares (net proceeds to

iund)

•

/

271,976

602,075

109,932

249,971

Redemptions
DISTRIBUTIONS

III.

nd

29 Closed-End Companies

Interest

(i Months

Quarter

1955

1955

•

$194

$360

1,694

3,166

19,880

27,862

$21,768

$31,388

_________

Preferred dividends
Common dividends

—_—

Total payments

of $10,399,000 from investment
capital gains in the 2nd Quarter, with
$17,152,000 and $10,110,000 from respective sources for the first 6 months of 1955.
NOTE—Common

stock

117

consisted

dividends

realized

from

$9,487,000

and

income

Open-End Companies:

2nd

0 Months

Quarter
1955

1955

$54,460
10,723

$108,042
40,700

31

129

$65,214

Dividends from:

$148,871

/

Net investment income.—

Realized capital gains.
Other sources

SHAREHOLDER ACCOUNTS—June 30, 1955:

IV.

-

rities

Gain in

Fund

56%, in net assets during the
months ended June 30, last.

r

2

increase, according to the
1
investment company's

The
u

t

u a

-mi-annual

boosted the
to an all-

report,

in

common

cash

and

The

Oil stocks constituted the fund's

single

building,

9.69%;

utility,

7.19%; food, 6.52%; steel, 6.07%;
railroad, 5.33 %; automotive,
5.22%; airline, 4.50%; chemical,

3.53%; and electrical equipment
at the and electronics 3.31%.
ose of the first half-year.
This
The report called shareholders'
jmpares with net assets totaling attention to the recent declaration
19,699,071 on June 30, a year ago, Of a special 100% stock dividend
nd with $25,126,161 on Dec. 31, payable Aug. 8,
1955.
On that
total

ind's
me

I high

resources

of

$30,792,286

:

,,.

•

share in the
x months period, which W. Linin Nelson, President, described as
te greatest in the fund's 17-year
[story, rose to $22.42 on the 1,13,337 shares outstanding June
Net asset value per

), last,
ere
a

start
when 1,200,667 shares

from $20.93 at the

the year

:

outstanding. Net asset value

June

L8.04
lares

a

1954,

30,

share

on

amounted

to

1,091,791

the

outstanding oh that date.

will be issued

date, shareholders

Delaware Fund stock certificate

a

shares

the number
owned on July 21, 1955.
"When
your fund commenced operations
in 1938," the report pointed out,
"the price per share was $15.00
compared with a price of nearly
$25.00 today. The change in value,
for

as

a

to

equal

result of this

dividend," the

went on to explain, "will
bring the offering price per share
nearer to the fund's original price
report

which, it is believed, will be more
report showed Delaware's
acceptable to shareholders and
ssets diversified among 96 secuThe

investors."

MUTUAL Fund

assets

net

reports

on

June

Inc.

30,

of $4,194,496.05
compared
$2,861,507.30 a year ago, an
increase of 46.6%. This is equiv¬

1955,

with

alent to $20.92 per share on 200,482.805
shares
outstanding.
On
June 30, 1954, net asset

share,

adjusted

for

value per
the 2-for-l

stock split on April

11, 1955, was
$16.80 on 170,266 shares.
Net sales for the first six months
ATOMIC DEVELOPMENT

MUTUAL FUND,

if
•

Inc.

-

designed to provide

of

a

were

PERSONAL

companies participating
inactivities

resulting

from Atomic Science*

First

L.

PROGRESS

Investors

Corporation, an¬
the opening of The Lex¬
ington Branch, at 415 Lexington
Avenue, New York, under the di¬

m rm facts and mt nosncm

UWIC DEVEllPMfRT SECURITIES CI
KUtt THIRTIETH STREET, N. W.,

WASHINGTON 7. D. C




of

Mr.

Agust came
through
the

Square
as

a

up

Sam

Agust.

from

the

company's
office,, where he

Salesman.

In

1954

Mr.
ranks

Times
started
he

promoted to Group Manager.

was

from

New

doubling its fate of assessment
ceipts of financial businesses.

York

City's

the gross

on

re¬

'

The

building is being constructed on a
tree-lined plot at the southwest corner
new

large
of

Westminster Avenue and Parker Road.

red

The

brick

structure, of Georgian Colonial de¬
sign, is similar in exterior appearance to the
Wren Building on the campus of William and

Mary College, Williamsburg, Va. Construction
is to be completed in early 1956.
Commenting on the decision to make Eliza¬

'

beth the permanent

sive

investment

"Elizabeth

is

headquarters of an exten¬
operation, Mr. Long declared,

well

within

what

I

call

the

'management circle,' some 25 miles or so in
radius, containing within it the general admin¬
istrative offices of a. great many of the
leading
corporations and financial institutions of Amer¬
ica." An artist's drawing of the new
building
is shown above.
V

were

three,,

Boom

Selected Shares

The

George

Putnam

try

Fund

of

from

Net

a

asset

year ago.

value

share was
$12.95, compared with $10,375 a
year ago, adjusted to reflect the
100%
stock
distribution
paid
per

tech¬

outstanding totalled $9,000,440, compared with $8,031,430

t|he adjusted basis,

ago on

year

while the number of shareholders
to

31,180 from 27,200

year

a

ago.

George

Putnam,

shareholders,
call

times

Chairman

of

said in his letter to
"We

for

continued

feel

that

increased
care

the

caution

in the

selec¬

stocks

and

85

common

broad

source

diversification

"is

a

of great strength."

The five largest common
investments
du Pont,

on

June

30

stock

were

in

dustrial

structure

atomic

is

the

good

a

in¬
way

magnitude

Conventional

activities

of

curities

&

National

Casualty

Co.,

Continental

$1,995,000,

and

Standard Oil (N. J.), $1,927,500.

well

and

the

sponsors

ment funds with

of

more
a

whose

involves

atomic

"are

in

work

like

reactor

in

engi¬

are

classified

Atomic

■

now

;

,

§ ft

a

as

growing

vigor¬

prospect for im¬

Shares

common

of Selected

continues

stocks

are

to

at¬

to

of

property, earnings and divi¬

dends—both current and pros¬

pective."
Total

net

assets

of

American Shares at June
rose

a

to

Selected

30, 1955,

$46,128,881, equal to $9.39

share, compared

with $32,109,-

526, equal to $7.55 a share on June

Diversified

n-"ier

Activity',"

systems,

tractively priced in relation

nuclear

engaged

directly

schools,

roads,

underlying values in the form

technology in some manner.
"Many organizations," the letter
states,

the

economy.

ahead.

believe

majority of the companies

which

have

the many entirely new

American

its Growth Stock Series are doing
work

for

"The management

National

retained

as

tance

combined assets

are

to

include

proving business for some dis¬

than $245,000,000, reports

securities

to

sewage

ously, afford

Securities Series of mutual invest¬

that

and

industries

Research

Mr.

fit" from atomic technology.
The
corporation, which man¬
ages

need

water

Se¬

velopment, atomic metals produc¬
tion, etc. Others, even more ex¬
tensively engaged in atomic work,

$2,062,500;

The

Corporation
Colton says, "it is
found
that nearly 80%,
or
36
categories, to be exact, may bene¬

studies,"

auto¬

now

out

in

and

major portion of the

dustry and commerce, the letter
points out, comprise 46 basic cate¬
gories — a
generally
accepted
"From

a

be¬

activity

building

seems

broadened

in¬

tors, $2,182,500; Aetna Life Insur¬

Co.,

mobiles,

of

technology."

neering, radiation instrument de¬

ance

renewed

residential

measure

in

industry, which

with

permeates

Mo¬

$2,297,500; General

American

science

America's

Shares,

"The present upward surge of

Elec¬

&

Rubin, President of

report to shareholders, says,

ih the letter

says

P.

American ;

gan

breakdown.

the Trustees,

Atomic

Division,

Edward

Selected

that "the extent to which nuclear

to

Shares

firm's

research
tronics

Spreads,

Report Notes

"benefit

to

atomic

time

same

this

expected

way

Nat'l Securities & Research Corp.
Robert Colton, manager of the

reports total net assets on

1955, of $116,517,800,
compared with $83,301,500 at the

and

some

30,

June

rose

be

can

in

nology," according to an "Atomic
Activities"
letter
published by

Boston

a

Benefits

Nearly 80% of American indus¬

$100 Million

nounces

rection

Fund's

Atom

stocks and Mr. Putnam noted that

THOMAS, President of

the

Assets Now Over

ferred

JOHN

made to escape a tax
shareholders Which

move was

resulted

National Cites

139%

variety of

upon

have

Geo. Putnam Fund

greater than tion of individual investments."
those for the comparable 1954 pe¬
As of June 30, the fund had in¬
riod and equalled 99.3% of the
net sales for the entire year 1954. vestments in 63 bonds, 24 pre¬

managed investment,

in

1955

The

years ago.

new

May 20.
JOHNSTON

the

of

The offices of all firms in the group
transferred to Elizabeth iron? Wall Street

,

st.

Chairman

Hugh W. Long, President of Hugh W. Long &
Co., said, "When we came tovElizabeth in 1952,
our assets totaled $235,000,0001 Operation in
this?,
New Jersey community is conducive
to the /
progress of mutual funds such as those we ad¬
minister. In this setting we have seen our assets
grow to their present level of approximately
$400,000,000."

stock holdings included:

electric

Jr.,

underwriter
and
investment
advisory
organization, respectively, for the four funds.,

industry and accounted for 11.52%
of total
resources.
Other large
common

Brady,

tional

holding by

equity

Gage

building will also be the headquar¬
ters of Hugh W. Long and Company, Inc., and
of Investors Management Company, Inc., na¬

re¬

ceivables.

reported July
record increase of $11,093,215,

a

industries

25

in

remainder

the

William

in preferreds; and

3.52%

largest
6

would

invested

88.80%

with

Assets of 56%

Delaware

Diversified Investment Fund, Man¬
hattan
Bond
Fund, and Diversified Growth
Stock Fund
(today, July 28), announced de¬
tails of a new home office building being con¬
structed in Elizabeth, N. J.
V

representing

stocks;

et

hardship

Investors,

—

elaware Fund

eports

Board of four large mutual funds, Fundamental

2,105,066

Open-end companies
Total

203,977
1,901,089

'

Closed-end companies

30,1954.

*;fc

„

The Commercial and Financial Chronicle...

Thursday, July 28, 19

(398)

30

'

■

Casualties

week.

4

Continued from page

which

The State oi Trade and

Industry

manufacturers

Some makers have

flat-rolled

steel

eloquently

only minor

and

that

some

forced

are

to

a

many

1954 level

turn away fourth

To

a

Continuing in high seasoj
were luggage, sportinl

Car dealers noted

Mixed

general price action.

Steel Institute announced that

halt.

.

ing

in

and prices fell, rather

sure

following

1955, totaled 799,040

were

also down,

decline reflected

period of 1954, whij
July 1

for the four weeks ended

1955,

increase of 8% was rJ
For the period
Jan.

an

corded.

1955 to July 16,
was

1955,

Retail

Ne

in

volume

trade

City last week continued

reflect

from

with

business

good

estimating

tra

gain

the

[

4% to 5% above the level

corresponding

the

gain of 6

a

registered above that of 195

York

-

lack of manufacturer de¬
bags, as

sharply

period

j

ye

a

,

According

to

Board's

serve

Federal

the

Ri

departme'

index,

in New

store sales

York

City i\

Weekly Peak
latest week, ended July 22,

Weather

increase of 3.6% above

government support and surplus disposal

conditiqns

were

increase

a

the

rise

wee

of

period

4%

1%

01

Jan. 1

1955, the

of

Ju|

ended

corresponding

ind{

from

th

period

'

1954.

Rex Merrick Adds
(Special to The Financial Chronicle)

SAN

&

is

Calif.

—

now

MATEO,

Pasquale

Merrick

Level

an

July 16,

the

R.

Holds at New Record

previous

weeks

For

1955, to

favorable in most parts of the belt and

to make good progress.

Trade Volume

reported for the same week a year ago, states

curred.

of

the

of

four

recorded

buying

the crop continued

that
the

For

16," 1955,

liquidation and selling induced by talk

I

1955, advanced 7%

from

lower after fluctuating

against textile sales and reports of improved
business in the goods market helped to sustain values at times.
Reported sales in the 14 markets increased to 38,000 bales, from
35,000 a week earlier. Sales for export continued light in volume,
but inquiries were more numerous in some areas.
Total exports
for the season to date were down slightly from
a year ago.
Mill

with

Edw£
R

Co., 22 Second Ave

For This Season of the Year

"Ward's,"
week's

car

output

rose

above that of the previous week

(
,

while truck output declined by 382 vehicles during
In the corresponding week last year 105,402 cars and

cars,

the week.

17,387 trucks were assembled.
Last week the agency reported there were 27,286 trucks made
in the United States. This compared with 27,668 in the previous
week and

17,387 a year ago.
Canadian output last week was

on

was

not

as

high

far this year, in

street, Inc., reports.




lowest

the week ended July 21, Dun & Brad-

This

compares

with 224 in

the preceding

of

Summer

I.

ANGELES, Calif. —Gle

Dillon

is

with

King Merritt

Co., Inc., 1151 South Broadway.

developed in New England.
off employees as the strike
trolley workers continued.
apparel

the week was esti¬

to 7% higher
Regional estimates varied from
1954 levels by the following percentages: East
+1 to +5; New England and Midwest -f3 to +7;
4-2 to -f 6; Southwest and Pacific Coast +4 to -j-8.

by Dun & Bradstreet, Inc., to be from 3%

than the level

Commercial and industrial failures declined to 172, the

in recent weeks.

as

The total dollar volume of retail trade in

1954 week 6,228 cars and

Dip Sharply in Latest Week

merchandise

Some retail stores in Washington laid
of bus and

mated

Business Failures

(Special to The Financial Chronicle)

LOS

Shoppers' interest in clearance sales of Summer

Shortages

1,727 trucks.

With King Merritt

little variation in total retail trade in the period
Wednesday of last week. It continued to be at a new
was

record level for this time of the year.

-

placed at 9,705 cars and 2,205
trucks. In the previous week Dominion plants built 9,787 cars and
2,417 trucks, and for the comparable

There

ended

1

so

of the similar

a

plans for the staple.

week's output of 195,141 units. It was less than
7% under the all-time high posted at the end of April. A total of

level

period of last year.
In the pr<
ceding week, July 9, 1953, a rif
of 13% was registered from thJ

ago.

swings, reflecting

being the smallest in three months.

of drastic changes in the

Output Climbs 3.6% Above Previous
a Trifle Less Than 7% Under

preceding

by 7,471

a

1

1955, advanced 10% from the lili

above that J
the like period of last year,
j
the preceding week, July 9, 195
a rise of 5%
(revised) was nob

Spot cotton prices finished
nervously during the week.

according to "Ward's Automotive Reports," assembled an
174,944 cars, compared with 167,473 (revised) in the
previous week. The past week's production total of cars and

was

price

narrow

Board's

ended July

the weekly period ended July

ments

estimated

Last

in

week

the

Hog values declined about 75 cents per hundred-weight for the
week.
Swine receipts were the smallest for some time, but ship¬

1955,

122,789 units

lower

trended

buying by

with 241,647 a week earlier and 121,085 bags at this
time a year ago. Lard prices went slightly lower, reflecting con¬
tinued heavy production and slow export and domestic demand.

Week's Rate and

an

as

for

as

Reserve

Federal

observers

,

firm at the higher level established

was

the
dex

sales on
taken fro

store

compared

The

or

.

Warehouse stocks of cocoa were higher at 247,055

mand.

22.4% above the preceding holiday week,

202,230 units,

sugar

somewhat easier position abroad and

sponding week in 1953.

to

raw

week

last

Cocoa

increase of 104,495 cars, or 15% above the corresponding
and an increase of 7,626 cars, or 1% above the corre¬

amounted

fair discounts under old crop but buyers

the result of heavy replacement
refiners wha had allowed their stocks to run down.
early

1954 week,

the

were

Domestic

according to the Association of American Railroads.

trucks

bakery flours quieted down

hesitant and very little business resulted.

were

Loadings of revenue freight for the week ended July 16, 1955,

The automotive industry for the

wheat

Winter

ment starting Sept. 15 at

1955,

Loadings Rise 22.4% in Week Ended July 16

All-Time

sharply due to liberal new crop mar¬

heavy buying which took place early last week.
offering new crop Spring wheat flour for ship¬

the

Some mills

kwh., a new all-time high record. *
The previous high level at 10,440,000,000 kwh. was attained in the
preceding week, according to the Edison Electric Institute.
This week's output advanced 180,000,000 kwh. above that of
the previous week, when the actual output stood at 10,440,000,000
kwh. It increased 1,517,000,000 kwh., or 16.7% above the compar¬
able 1954 week and 2,160,000,000 kwh. over the like week in 1953.

U. S. Automotive

;

record/. Activity in grain and soybean
futures increased sharply on the Chicago Board of Trade the past
week. Daily average sales totaled 58,900,000 bushels, against 41,500,000 the previous week and 56,500,000 bushels a year ago.
i
in hard

goods were u.

minimum.

a

Department

the second largest crop on

Business

hot weatb*

.Wholesale inve

tories of seasonal

country-wide basis

the Southwest was reported

wholesal

major

areas.

some

abo\

Buyer attenc

level.

high, apparently ur

was

ually at

Corn prices barely held their own under the prospect of

ketings.

estimated at 10,620,000,000

July 16,

<

Canada.

western

.

deterred by the very
in

r«

as

noticeably

the

at

ance

centers

...

-

week

last

fcr the Fall sel

were

the year-ago

Excellent growing conditions were also reported
Oats were under considerable hedging pres¬

along than usual.

distributed by the electric light

ended

the improved crop outlook.

on

expaii

season.

Orders

,

were

Harvesting of Winter wheat in

Through to a New All-Time
High Record in the Period Ended July 23

an

moderate

a

trade

wholesale

-

nearing completion, while the progress of the Spring wheat crop
was said to be excellent and the crop is now regarded as further

Electric Output Breaks

Loadings for the week

was

sion in the total dollar volume <

worked irregularly, downward with much

Cash wheat prices

•

i

_Vj

There

.

selling based

than

more

Connecticut-came to an abruj

in

mixed last week with
mark-ups in steel scrap and pig iron outweighing declines in
grains and cottom The daily wholesale commodity price index,
compiled by Dun & Bradstreet,'Inc., closed al 273.04 on July 19, as
compared with 272.55 a week previous and 272.93 a year ago.
'
Grain markets were/nervous with prices trending lower in
the latter part of the week.
movements

price

Commodity

weej

past

The gasoline price wa^

year ago.

in Latest Week

Trend

/

the op¬
having 96.1% of the steelmaking
capacity of the entire industry will be at an average of 94.6% of
capacity for the week beginning July 25, 1955, equivalent to 2,284*000 tons of ingots and steel for castings as compared with
91.0% (revised) and 2,195,000 tons a week ago.
The industry's ingot production rate for the weeks in 1955 is
based on an annual capacity of 125,828,310 tons as of Jan* 1, 1955.
For the like week a month ago the rate was 71.0% and pro¬
duction 1,716,000 tons. A year ago the actual weekly production
was placed at 1,532,000 tons, or 64.2%.
The operating rate is not
comparable because capacity was lower than capacity in 1955.
The percentage figures for> 1954 are based on annual capacity of
124,330,410 tons as of Jan. 1, 1954.

cars,

sell

but continued to

general trend of food price? at the wholesale level.
a

slight le(

a

demand, the

.

tailers prepared

erating rate of steel companies

increased 146,360 cars or

in

down

*

Commodity Price Index Reflected-

Wholesale

beverages.

and

meats

canned

beef, bellies, lard, cottonseed oil, cocoa, beans, peas* eggSj steers,
hogs and lambs.
k
,
The index represents the sum totaLof .the price per pound of
31 raw foodstuffs and- meats in general use and its chief function
is to show the

In high demand were frank
poultry, , dairy
food;|

ago.

l'urters,

Lower prices were listed for flour, .wheat, corn, oatsr

and peanuts.

buying of food was at th

The

highest level so far this year an
continued to surpass that of a yea

Higher in wholesale cost last week were barley,4Lams, coffee

damper on buying enthusiasm, it states.
Prices in all segments of the steel market are on a higher level.
Practically all producers have announced new schedules with most recent advances of 6 cents a pound on high speed steels and 5.8%
on
tool steels.
"Steel's composite on finished steel stands at

Car

condi

in most sec

common

goods, automobile parts and har

2V2 Year Low Point

only 3.5% above the pie-Korea level of $5.96.

now

they can
schedule.
The plate

industry for the week ended Saturday, July 23,

of air

tions.

a

and power

prices

the

were

popularity

Four regions

general downtrend in foodstuffs continued for the fifth
week, bringing the Dun & Bradstreet wholesale food
price index for July 19 to $6.17, a new low since Feb. 3, 1953 when
it stood at $6.13. Down 1.4% from $6.26 a week earlier, the cur¬
rent number marks a drop of 14.7% from $7.23 a year ago. . It is

peak for the year in the fourth quarter. Most observers are
certain it will unless inventory accumulations at consumers' plants

was

well abov
Sharp reduc

tioners

The

a

The amount of electric energy

in

tions

successive

quarter

Still, the producers say there is no serious shortage.
is intensified by surging railroad demand. Structurals
are similarly affected.
The anticipated sharp slump in third quarter activity hasn't
materialized. As things stand, it looks like volume may zoom to

The American'Iron and

level.

goods remained

the year-ago

ware.

squeeze

$126.64, against $118.45 prior to the

buying of housewares w

lowest point as sea
spread. Howevei
total amount spent for house

the

Wholesale Food Price Index Continues Downtrend

requests. Up to six weeks of production may be blanked out in the
quarter to care for the anticipated overflow, continues this
trade journal.
Platemakers are wrestling with a knotty scheduling prob¬

lem, "Steel" points out. They hold more business than
readily accommodate. Deliveries are running behind

t

shopping whic
stores had not fully antic
of

slackness

hold

The sharpest decline from 1954 took

in five regions.

ago

year

depleted by

the year's

sonal

57 from

to

item

popular

most
were

surge

The
at

in

except

the

pated.

testifies to the

next

put

below the

place in the West South Central and Pacific States.
had more casualties than a year ago.

cancellations fouled up plans to such an

mills

recent

wholesaling and construction dropped

dipped

ago.

year

department stor
up
less favorable sal
than did specialty stor
city

stocks

but

90, and Pacific States were down to 47 from 61.
Contrasting with these declines, three regions had more failures
than in the previous week, including the Mountain States where
casualties climbed to 7 from 1. Fewer businesses succumbed than

ties

market prevailing generally. Sheetmakers expected mill
schdules to be in shape by now to permit firm fourth quarter
commitments. But it hasn't worked out that way. Heavy arrear¬
extent

all lines

high

Beachwear and sportswear we
among

wholesaling where they rose to 26 from 22.
The Middle Atlantic States reported a marked drop in casual¬

strong

ages

in

Failures

15.

to 29, while

a

,V

-

in suburban areas.

Commercial service casualties remained the. same at

18.

to 26 and

ize, "Steel" declares.
in

chalked

figures

week when 32 occurred. They rose slightly above the
level of 25. Sixteen of the failing concerns had liabilities
of $100,000 or more, compared with 12 last week.
Retail trade accounted for the week's decline. Failures among
retailers fell to 84 from 106.
Mild dips reduced failures among

opened
books officially for tonnage beyond September on all products
and on a quarterly basis.
Others are booking only some items,
proceeding largely on a monthly basis. Still others, those special¬
izing in one major product, such as plates or bars, haven't opened
books officially for business beyond September. In practically all
cases the lag in scheduling is due to an over-sold condition.
One
reason for this has been failure of expected cutbacks to material¬
situation

Large

'

•

moderately

be

to

that of

than

1953 and

1954 and

year-ago

fabrication, too, continue at a strong pace, it states.

The

tinued

184

previous

quiry is strong, swelled substantially by the resurgence of demand
and shipbuilders, both only moderate tonnage
outlets until lately.
Automotive, building construction and gen¬
forward bookings vary.

comparable weeks of

188 and

with

those

from the railroads

on

moderately from the

when 163 of this size were recorded. Small casualties,
liabilities under $5,000 were as numerous as in the

ago

year

slowing activity through July and
August, but this is not so this summer, it notes. Mill backlogs are
not shrinking appreciably.
Overflow second quarter tonnage is
heavier than had been indicated. Cutbacks from automotive and
related lines haven't materialized in noticeable volume. New in¬

Policies

the

in

down

they fell 31% below the prewar level of 251 in 1939.
Failures involving liabilities of $5,000 or more fell to 140
from 192 in the previous week and were less numerous tnan a

with hot weather and vacations

eral

occurred

were

of

a

year

earlier.

the corresponding
and

South

Northwest

While

the

demand

for

apparel

slipped

seasonally,

it

con-

With Investors

Planning

"

(Special to The Financial Chronicle)

BOSTON, Mass.—Frank G. B<
and Edward G.

Bradbury

are vi

Investors Planning Corporator
New

England, Inc., 68 Devonsl

Street.

Number 5450... The Commercial and Financial Chronicle

Volume 182

The following statistical tabulations

I ndications of Current
Business Activity

latest week
week

Latest

AMERICAN
M '

!.

AMERICAN PETROLEUM

/A

.•y--

'

-

■yif

Crude

(net tons)

output

'

§2,284,000

71.0

*1,716,000

1,532,000

6,626,400

6,596,900

6,625,600

6,297,500

ALUMINUM

117,582,000

7,646,000

7,520,000

6,969,000

25,726,000

26,478,000

25,535,000

23,837,000

1,955,000

1,887,000

2,197,000

2,122,000

gasoline (bbls.) at—

11,167,000

•11,474,000

8,156,000

7,583,000

11,205,000

158,822,000
31,381,000

159,307,000

165,285,000

30,456,000

28,435,000

30,318,000

July 15
July 15

108,932,000

105,167,000

91,269,000

45,304,000

45,684,000

53,355,000

freight loaded (number of cars)
July 16
freight received from connections (no. of cars)..July 16

799,040

652,680

785,425
652,505

Residual

at

;

oil

at

oil

fuel

(Obis.j

(bbls.)

at

ENGINEERING

.

161,786,000

CONSTRUCTION

ENGINEERING

—

4,176,014

47,154

45,025

228,514

'

621,304

.

-

U.

construction—

S.

284,945

216,843

3,015

4,083

2,650

$167,710,000

$158,289,000

$149,812,000

State and

municipal—

$412,067,000

225,458,000

206,527,000

186,609,000

12J,1^4,U0U

89,8.9,000

132,778,000

147,855,000

110,279,000

42,715,000

73,749.000

38,754,000

12,845,000

-

&

12,605

12,029

9,748

*$43,264

$44,355
>11,800

IN THE

BRADSTREET,

June

BUSINESS

_

INVENTORIES

MERCE

NEW

DEPT.

—

SERIES

OF

Month

—

COM¬

of

May

(millions of dollars):

Manufacturing •_!

(UL S. BUREAU OF MINES):

coal and lignite

of

(NEW)

136,166,000

132,614,000

STATES—,DUN

INC.—Month

$259,290,000

371,880,000

July 21
July 21

....

Bituminous

$578,407,000

228,094,000

July 21

Federal
COAL OUTPUT

$360,708,000

July 21

—

t

delivered

cars

BUSINESS INCORPORATIONS

*

July 21

construction

freight

DEBITS—BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM—Month
of May (in thousands)

UNITED

Public construction

Wholesale

(tons)

July 16

Pennsylvania anthracite (tons)

*

4,437,882

5,529,661

36,613

BANK

NEWS-RECORD:

Private

i'-i

5,861,760

4,575,594

21

*

New domestic

"

Total

71,415

4,840,721

_

AMERICAN RAILWAY CAR INSTITUTE—
Month of June:

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

125,138

13,949

539,932

(bbls.)

Distillate fuel

Revenue

126,394

12,052

Manufactured gas sales (M therms)
Mixed gas sal(?s (M therms)

694,545

551,608

Kerosene

CIVIL

131,128

end of May

gas (M therms)—
Natural gas sales (M therms)—

94,794,000

45,482,000

Ago

May:

7,895,000

July 15
July 15

(short tons)

Total

10,086,000

8,109,000

,

Tear

Month

AMERICAN GAS ASSOCIATION—For month of

—

(bbls.)
July 15
Residual fuel oil output (bbls.)
July 15
Stocks at refineries, bulk terminals, in transit, in pipe lines—

of that date:;

Previous

$43,533

Stocks of aluminum

(bbls.)

are as

(BUREAU OF MINES):

Production of primary aluminum in the U.
S.
(in short tons)—Month of May____

,

either for the

are

Month

64.2

(bbls. of July 15
July 15
July 15

(bbls.)

and unfinished

in cases of quotations,

or,

Latest

*2,195,000

*

that date,

Ago

*91.0

§94.6

—July 31

Kerosene output ioois.i
Distillate fuel oil output

finished

Ago

production and other figures for th€

cover

Dates shown in first column

Year

July 15

to stills—dally average

runs

Gasoline

-

Month

on

INSTITUTE:

each)—i,

42 gallons
•■r;

.July 31

Crude oil and condensate output—dally average

,

month ended

or

Week

(percent of capacity).

Equivalent to—
Steel ingots and castings

month available.

or

Previous

STEEL INSTITUTE:

AND

Indicated steel operations

Jl

•

HtON

31

(399)

9,730,000

Juiy 16

*7,390,000

463,000

9,640,000

7,206,000

533,000

I

22,800

22,800

$78,333

III—

i

:

11,700

23,000

539,000

345,000

:

11,800

Retail

*$77,764

$78,955

'

Total

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
AVERAGE

SYSTEM—1949-49

100

July 16

97

87

117

88

...July 23

=

620,000

10,440,000

10,226,000

9,103,000

172

224

205

188

COAL

:

RDISON ELECTRIC INSTITUTE:

Electric
FAILURES

<

(in

output

(COMMERCIAL

INDUSTRIAL)

AND

—

DUN

Finished steel

1

METAL PRICES

(E.

A

July 19

M. J.

5.178c

4.797c

Straits tin

'i
*

■ifu*

*

$59.03

$59.09

.

$56.53

$56.59

$35.33

$26.83

Lead

(St.

Zinc

Louis) at
Louis)

■{. •

at

i.

f

35.700c

July
July
July
July

at

(East St.

•

35.700c

Ju}y 20

f_.

York)

Lead (New York)

-

July 20

*

29.700c

(tons

—

Average corporate

—

37.225e

35.600c

38,275c

96.375c

94.375c-

96.625c

15.000c

15.000c

15.000c

14.000c

14.800c

14.800c

14.800c

12.500c

12.500c

11.000c

'

**

\

r

■

■■if

Railroad

•/

Public

itj

DEPARTMENT

,v

*

115.24

I

J*

Orders received
Production

J°

109.24
103.79

111.25

2.87

2.79

.J**u
1

i

Percentage

of

Unfilled orders

3.24

3.24

—

3.05

2.8

3.15

3.14

3.14

-

•105

Stocks, seasonally

112

110

♦112

81.5

80.2

81.5

3.21

3.20

3.18

3.31

3.32

404.4

|

•

LIFE

3.21

3.23

3.18

-

3.13

3.10

of

.

-»

COMMERCE

Railway

(1947-49

^

402.0

,

406.6

427.7

225,732

239,200

Employment

INSURANCE—BENEFIT
—

middle

at

155,704

285,547

of

of

55

99

71

LIFE

May:

$187,324,000

$182,525,000

$158,955,000

Matured endowments

50,619,000

9,171,000
36,427,000

45,512,000
9,064,000
33,921,000

41,416,000

Disability payments
Annuity payments

_

—

1
;

76,500,000

^uly 16

642,613

642,257

July 22

106.91

106.88

106.73

79,900,000

66,561,000

$439,941,000

$420,978,000

$377,515,000

Inventories—„
Durables —'
$24,273

*$24,159

$24,908

Policy

—

dividends

Total

1

__—

——

...—

(DEPT.

OF

COMMERCE)

of May

NEW

SERIES—

(millions of dollars):

—

ACCOUNT OF ODDON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t

Odd-lot

sales

Customers'

short

Customers'

other sales

Dollar value

1,113,252

1,245,014

834,871

1,038,593

$59,401,320

$65,549,131

$44,941,752

...

2
2
2
2

1,199,826

1;170,328

825,320

$59,380,239

$58,842,561

$40,934,503

$45,735,376

July

2

261,690

331,530

227,350

314,280

26L630

331~530

227,350
294,000

329,250

METAL

1,205,329

1,175,826

829,583

1,014.84C

5,503

5,4)8

4,268

9,04C

Month

Mine

Gold

1

396,010

402,430

♦26,025

23,204

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):

MINES)—

May:

fine

the

ounces)

(in fine

(in

156,426

140,214

♦3,292,175
*89,108
♦28,602

25,404

$30,009,000

;

3,303,491

91,025

28,612

tons)_^

*146,466

3,248,653

'

ounces)

short

(in short tons)

$29,769,000

$29,870,000

♦$286.7

71,455

IN CIRCULATION—TREASURY DEPT.

of

As

OF

States:

(in

Copper

MONEY

by dealers—

Number of shares

of

(BUREAU

production of recoverable metals In

United

Lead

2
2

OUTPUT

Silver

2

July

Round-lot purchases

$44,335

314,280

J.u}y

sales

19,427

*$43,264

26,534

Sales

*19,105

$43,533

Total

1,005,80C

—July

Short sales

19,260

$51,125,583

2
2

by dealers—

Number of shares—Total sales

Other

*

July
July
July
July

purchases by dealers (customers' sales)—
total sales

Number of orders—Customers'

Round-lot sales

Non-durables

July
July

value

67,400,000

MANUFACTURERS' INVENTORIES AND SALES
Month

•TOCK TRANSACTIONS FOR ODD-LOT
LOT DEALERS AND
SPECIALISTS

Dollar

8,804,000
34,379,000

73,970,000
75,986,000

411,856

107.04

OF

TO

199,338

77

PAYMENTS

INSTITUTE

INSURANCE—Month
Death benefits

192.054

225,674

548,315

Number of shares..

e

COMMISSION—

Average=l00).

Surrender values

228.679

PRICE INDEX—

100

adjusted

POLICYHOLDERS

3.17
3.50

■

,

■

Jujy 16

INTERSTATE

3.04

-

•

3.24
3.51

3.23
3.52

3.33

July 26

at end of period

113

3.15

3.05

3.22

Ju}y 19

(tonS)

AVERAGE

1949

105

June

3.25

Jujy

OIL, PAINT ANB DRUG REPORTER

•97

•100

'

3.07
'

•99

99
101

Index

'

97

98

*

ASSOCIATION:

activity.

100
101

2.44

108.88

3.25

..July 26
July 26

(tons)

L_"

,

110.70

109.79

V

2.94

July 26
July26
July 26

(tons)

___

(average daily), seasonally adjusted
Stocks, unadjusted
.
.

July 26

INDEX—

'

107.44

109.24

109.05
109.42

1

______

PAPERBOARD

Sales

"

107.27

117.03

rU,ly

COMMODITY

MOODY'S

1947-49

—

104.14

JTuJy 29

Group

b9,289

FEDERAL

Y.

103.97

,

Utilities. Group

NATIONAL

N.

103.80

Group

Industrials

OF

103.64

-

106,252

43,340

FED¬

Sales

3.53

Public

DISTRICT,

BANK

109.97

Ju-V 29

Z

Railroad

RESERVE

112.37

Aaa
Aa

t

108.70

A

124,853

(tons

SALES—SECOND

110.52

Average corporate

112,474

Average—100—Month of June:

112.19

'

i rf

STORE

103.88

S. Government Bonds

U.

period

RESERVE

112.19

•

of

110.52'

MOODY'S BOND YIELD DAILY AVERAGES:

86,119

135,042

38,533

end

pounds),—

108.52

'■

—

.

♦106,773

132,842

of 2,000 pounds)—

(tons

Refined copper stocks at
of 2,000

110.34

111.81

*

"15

102,760

100.56

96.11
108.70

108.52

^u)y 29
|a|y 29

Group
Group..

751

131,431

pounds)

110.34

Group

29,512

4,469

,

pounds)

(average monthly), unadjusted
Sales (average daily I "unadjusted—

Utilities

Industrials

2,000

of 2,000

July 26

*•

■*

of

July 26

A.

t

v

95.04
108.70

94.15.

Ju}y 29
July 2b
Jul/26

I f.TTrr—~"

,

13.800c

12.500c

»

.

121,473

32,322

to fabricators—

Iri U. S. A.

29.550c

98.000c

20
20
29

JTu!y jy

.

Aaa

i

1

,

(tons

Deliveries

ERAL

S. Government Bonds

•

151,736

138,407

2,243

tons)

(net

175,198

102,540
43,064

America

(net tons)

Refined

,

,

35.700c

20

MOODY'S BOND PRICES DAILY AVERAGES:
U.

147,847
Central

COPPER INSTITUTE—For month of June:
Copper production in U. S. A.—
Crude

"

1

at.

(New

;

anthracite

Europe (net tons)

and

4.801c

$38.50

*

$40.33

i,

*

*

MINES)—

1(

'

Electrolytic copper—
Domestic refinery at
Export refinery at

OF

Pennsylvania

tons)

,

QUOTATIONS):

*

'

of

North

To Asia
5.176c

-yl,

>.vx;

(BUREAU

April:

To

*

Scrap steel (per gross ton)

of

exports

To

,

Jujy 19
JuJy 19

(per lb.)

Pig iron (per gross tori)

^

S.

(net

July 21

HtON AGE COMPOSITE PRICES:
*

U,

&

BRADSTREET, INC

VJJN

EXPORTS

Month

kwh.)

000

1

(000's omitted)

May 31

TOTAL ROUND-LOT

Total round-lot

sales

—

333,960

407,260

2
2
2

471.180

470,800
11,849,630

13,572,610

9,794.750

10,368,110

12,320,430

14,043,790

10,128,710

10,775,370

ACCOUNT OF MEM¬
SPECIALISTS:
specialists in stocks in which registeredFOR

TRANSACTIONS

BERS, EXCEPT ODD-LOT DEALERS AND
Transactions of

2

272,780

368.920

298,100

373,440

July
July
"July

2
2
2

25,100

18,100

17,700

24,800

254,610

371,330

277.150

389,430

294,850

330,610

July

2

483,272

658.745

523,247

370.038

-July
July
July

Total sales

2
2
2

82,770

84,100

50,510

688,55)

701,407

569,577

530,080

785,507

620,087

588,880

July

NEW

SERIES

—

2

July
July

Total sales

2

Ju}y

sales

PRICES,

2
2

Processed

2,243,682

2,744,385

as

1,974,377

1,985,758




27.3

*27.2

industries

Less

contributions

for

social

34.7

*34.9

5.2

—

employed

195.7

*25.5

5.1

*33.6

in¬

surance

Other

labor

PRICES

non-agricultural
RECEIVED
—

U.

OF

*24.5

—

•17.6

*16.5

286.6

•283.7

♦271.0

244

247

INDEX

AGRICUL¬

TURE— 1910-14=100—As of June

Unadjusted-*All farm products—

*25.9

243

—

FARMERS
DEPT.

*6.5

•48.0

17.6

Income

BY
S,

*6.9

*49.0

26.2

I

Total transfer payments
Total

*4.5

6.9

48.5

income

.'Proprietors and rental income

15:

:

Crops

244

255

232

240

216

196

200

205

grain
Feed grain and hay

251,990

311,810

1.817,007

1,806,360

435

2,118,170

2,575,849

2,068,997

—

Truck

110.3

110.2

110.3

87.7

89.1

91.6

95.8

103.0

103.6

105.5

July 19

102.0

-July 19

84.5

86.8

90.1

116.3

115.7

114.2

274
236

308

197

256

259

283

242

crops

234

249

276

260

296

Dairy -products

235

236

229

Poultry eggs

176

175

169

Meat

animals

1

—

92.1

116.2

445

266,
209

230

Oil-bearing crops —
Livestock and products
110.0

436

266

Cotton
Fruit

243

239

Tobacco

379,600

2,509,497
2,889,097

*Iu;y J?
and foods.

*52.1

355,970

..July 19

Ulncludes 779,000 barrels of foreign crude runs, IBased on. new
of Jan. 1, 1955, as against Jan. 1, 1954. basis of 124.330,410 tons.
tNumber of orders not reported since introduction of Monthly Investment Plan,
figure.

*53.6

2,219,879

July 19

foods

Meats
ah. commodities other than farm
*Revised

58,800

U. S. DEPT. OF

products

♦84.5

54.5

Personal interest income and dividends

(1947-49 —100):

commodities

Farm

♦88.9

Food

771,329

Commodity Group—
All

*204.6

90.6

NUMBER

for account of members—

Total purchases
Short sales

—

*$298.9'

207.1

—

305,810

279,710

Initiated off the floor—

Total round-lot transactions

LABOR

1,198,680

1,714,160

July

sales

WHOLESALE

1,154,060

1,436,760

1,524,310

the floor—

Total purchases
Short sales

Other

970.280

228,210
970,470

1,276,710

Total sales

Other

1,242,220

183,780

243,100

sales

Other

1,153,030

1,487,630

Total purchases
Short sales
i

1,716,720
277,400

2
2
2
2

-

Other transactions Initiated on

$301.1

total

Commodity producing industries
Distributing industries
Government

July
July
July

sales

Total sales

Other transactions

COMMERCE)—Month

"

July

Total purchases
Short sales
Other

OF

May (in billions):
personal income
Wage and salary, receipts,

Total

Service

July
July
iuly

Total sales

ROUND-LOT

(DEPARTMENT

STATES

of

sales—

Short sales

Other

PERSONAL INCOME IN THE UNITED

UNITED

STATES

BUREAU

annual capacity of 125,828,310 tons

(000's

Exports

Imports

OF

EXPORTS
CENSUS

—

AND IMPORTS
Month of May

omitted):
-—

$1,307,500

*$1,262,100

$1,400,200

952,000

870,743

829,059

The Commercial and Financial Chronicle...

(400)

32

Thursday, July 23, 1955

if INDICATES

Securities Now in Registration
Uranium

Academy

Oil

&

:mon

—For mining

Underwriter—Western States

Utah.

•St., Salt Lake City,

city.

investment Co., same
#

Office—65 East Fourth South

operations.

All State Uranium Corp., Moab, Utah

.April 19 (letter of notification) 1,000,000 shares of com¬
mon stock
(par one cent). Price—30 cents per share.
Proceeds—For mining operations.
Underwriter—Gen¬
Investing Corp., New York.

eral

Filing to be amended.

Offering—Expected this week.
Allied Industrial

Development Corp.
June 20 (letter of notification) 300,000 shares of class
A common stock. Price—$1 per share. Proceeds—For oil
•*fld gas

Office—1508 Capitol Ave., Houston,

operations.

Underwriter

Tex.

Paul C. Ferguson & Co., same ad¬

—

dress.

Credit Corp.,

Reno, Nev.
.June 27 (letter of notification) 27,000 shares of 7% cumu¬
lative preferred stock (par $10) and 27,000 shares of
common
stock (par $1) to be offered in units of one
*?hare of each class of stock.
Price—$11 per unit. Pro¬
Altstates

ceeds—For

working

etc. Office—206 No. Vir¬
Underwriter—Senderman & Co.,

capital,

ginia St., Reno, Nev.
address.

<same

American

Asbestos

Co., Ltd.

e

to
on

Natural

American

Gas

28 or 29 (with an oversubscription privilege); rights ex¬
pire Aug. 12-13. Price—To be supplied by amendment.
Proceeds—To be applied to the purchase of equity se¬
curities of subsidiaries or to replace other corporate

:iunds used for that purpose.

Underwriter—To be deter.mined by competitive biding.
Probable bidders: Blyth
& Co., Inc.; The First Boston Corp.; Lehman Brothers;
Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
Bids—Expected to be received in a week or two at 165
Broadway, New York 6, N. Y.

May

Rare Metals Corp.,

N. Y.

300,000 shares of com¬
(par one cent). Price—$1 per share. Proceeds
debt and for general corporate purposes;

(letter of notification)

11

stock

mon

—To

repay

Underwriter—Equity Securities Co., 11 Broadway, New
York, N. Y.
American

Statement effective.

city.

Badger Uranium Corp., Las Vegas, Nev.
July 1 (letter of notification) „6,500,000 shares of com¬
mon
stock.
Price—At par (one cent per share). Pro¬
ceeds—For mining operations. Office—401 Fremont St.,
Las

Vegas, Nev.
city.

Underwriter—Weber Investment Co.,

same

Baldor Electric Co., St. Louis, Mo.
July 6 (letter of notification) 19,124 shares of common
stock (par $10) to be offered for subscription by stock¬
holders. Price—$15 per share. Proceeds—To expand pro¬
duction facilities and/or repair of building and equip¬
ment; to increase inventories; and for working capital.
Office—4327-63 Duncan Ave., St. Louis 10, Mo. Under¬

writer—None.

-

if. Baldwin & Hill Co.
July 21 (letter of notification) 8,515 shares of common
stock (par $1)
to be offered to certain employees of
company and its subsidiaries. Price—85% of average bid
price in over-the-counter market during the two weeks
preceding the date of this offering. Proceeds—For gen¬
eral corporate
purposes. Office — 500 Brennig Ave.,
Trenton 2, N. J. Underwriter—None.
Beehive Uranium Corp., Salt Lake

May 26 (letter of notification) 20,000,000 shares of com¬
stock. Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Office — 156 East Third
South St., Salt Lake City, Utah. Underwriter—Columbia
Securities Co., Denver, Colo., and Salt Lake City, Utah.

Republic Investors, Inc., Dallas, Texas

July

12 filed 500,000

cents).

Price—$1

drill leases and

Porter,

per

shares of common stock (par 10
share.
Proceeds—To explore and

claims in

State of

&

Co.,

Houston,

as

of July 22.

eral

funds.

Ohio.

Price—$60

Office

—

39

per

share

for

share

held

Proceeds—For gen¬

share.

East

each

Chestnut

St., Columbus,

Underwriter—None.

Phoenix, Ariz.
(letter of notification) 300,000 shares of

"best

record

July

15

the basis of $100 of

on

debentures for each 100 shares (or fraction thereof held).
Price—At 100% of principal amount. Proceeds—To pay
current

debt; for drilling expenses and development
program.
Underwriters — Burt, Hamilton & Co., Inc.,
Dallas, Tex.; and N. R. Real & Co., Jersey City, N. J.
California

Electric

by

Carl M. Loeb,

reduce

Power

bank

Co.

(8/23)

common

loans.

stock

(par $1).

Underwriter—To

be

competitive bidding. Probable bidders:
Rhoades & Co. and Bear, Stearns & Co.

(jointly); Kidder, Peabody & Co.; Lehman Brothers;
,Merrill Lynch, Pierce, Fenner & Beane. Bids—Scheduled
to be received on Aug. 23.
if California Electric Power Co. (8/30)
July 2 filed $6,000,000 of first mortgage bonds, due 1985.
be determined by competitive bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; Blair & Co. Incorporated;
White, Weld & Co.; Blyth & Co., Inc. Bids—Scheduled

ton

St., Phoenix, Ariz. Underwriter—First National Life
Phoenix, same address.

Arkansas Oil

Ventures, Inc.
July 6 (letter of notification) 500,000 shares of common
«tock (par one cent). Price — Two cents per share.
Proceeds—For drilling equipment and working capital.
Office—615 Liberty Bank Bldg., Oklahoma City, Okla.
Underwriter—F. R. Chatfield & Co., Inc., Springfield,
Mass.

Atomic

Research Corp.,

Colorado Springs, Colo.
July 11 (letter of notification) 87,500 shares of common
stock (par $1). Price—$2 per share. Proceeds—For pay¬
ment of notes and account payable, purchase of addi¬
tional equipment, and working capital. Office — 1405
Mesita Road, Colorado Springs, Colo. Underwriter—A. H.
Vogel & Co., Detroit, Micln
Automatic Remote Systems,

Inc.

Blarch 3

filed 540,000 shares of common stock (par 50
cents). Price—$3.75 per share. Proceeds—For manufac¬
ture

of Teleac

Sending and Receiving Units, working

Springs Uranium Co., Moab, Utah
shares of common
share. Proceeds—
For mining expenses.
Underwriter—Universal Invest¬
ment Corp., Washington, D. C.

June 8 (letter of notification) 300,000
stock (par five cents). Price—$1 per

Central Reserve Oil Co. (N. Y.)
May 31 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
For general corporate purposes. Office—130 West 42nd
Street, New York, N. Y. Underwriter—United Equities
Co., 136 Liberty Street, New York, N. Y.

Chieftain Uranium Mines* Inc.

April 22 (letter of notification) 4,000,000 shares of capi¬
tal stock. Price—At par (five cents per share). Proceeds
—For mining operations. Office—223 Phillips Petroleum
Bldg., Salt Lake City, Utah. Underwriter—Empire Se¬
curities Corp., same city.
•

to be received

Calumet &

on

Aug. 30.

Hecla, Inc.

June 9 filed 113,592 snares of common stock (par $5) to
be offered in exchange for all of the issued and out¬

standing capital stock of Goodman Lumber Co., Good¬
man, Wis., on the following basis: 18 shares for each
share of Goodman common stock; seven shares for each
share of Goodman 2nd preferred stock; and eight shares
for each share of Goodman 1st preferred stock; offer to
terminate on Sept. 15, 1955 (subject to withdrawal by
Calumet if the required number of Goodman shares have
not been deposited and accepted within 30 days from the
date of the mailing of the prospectus to the Goodman
stockholders). Underwriter—None.
Canadian Petrofina Ltd.
(Montreal, Canada)
July 15 filed 1,434,123 shares of non-cumulative par¬
ticipating preferred stock (par $10), of which 270,943
shares are to be offered in exchange for shares of $1
par capital stock of Calvan Consolidated Oil & Gas Co.
the basis of one share of Canadian Petrofina for
each four shares of Calvin stock and 1,163,180 shares to
be offered in exchange for shares of common stock of
on

Western Leaseholds Ltd. or Leasehold Securities Ltd. on
the basis of three shares of Canadian Petrofina for each
10 shares of Western Leaseholds or Leasehold Securities
stock held. Underwriter—None.

Canadian Uranium Mines, Ltd., Montreal, Canada
3
(regulation "D") 2,000,000 shares of comnion
stock (par one cent). Price—15 cents per share. Pro¬
June

ceeds—For exploration and development
expenses. Un¬
derwriter—Tellier & Co., Jersey City, N. J.

if Capital Gains Fund, Inc., New York
July 20 filed 400,000 shares of capital stock. Price—At
market. Proceeds—For investment.

(Victor V.) Co., Philadelphia, Pa.
(letter of notification) 120,000 shares of common
stock (par 25 cents). Price—$2.50 per share. Proceeds—
For equipment and working capital. Underwriter—Bar¬
rett Herrick & Co., Inc., New York.
Clad-Rex Steel

Boston

Philadelphia

Pittsburgh

San Francisco

Private (Fires




to

all offices

Chicago-

Cleveland

Co., Denver, Colo.

June 6 (letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share). Proceeds—To re¬
tire outstanding debts and for working capital. Office—
40th

Ulster St., Denver,

Ave. and

Securities Corp.

Mountain States

Colo.

Underwriters—

and Carroll, Kirchner

Jaquith, Inc., both of Denver, Colo.
Colohoma

,

Uranium, Inc., Montrose, Colo. (8/31)'
April 21 filed 2,960,000 shares of common stock (par one
cent), of which 2,500,000 shares are to be offered pub¬
licly. Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpor¬
ate
purposes,
Underwriters—General Investing Corp.,
New

York; and Shaiman & Co., Denver, Colo.

Colorado Oil & Uranuim Corp.

Carbon Uranium Co.

(Utah)
April 27 (letter of notification) 746,280 shares of com¬
stock (par one cent). Price — 25 cents per share.
Proceeds—For mining costs. Underwriter—J. E. Call &
Co., Salt Lake City, Utah'.
-

mon

(letter of notification) 300,000 shares of common
(par 20 cents). Price—$1 per share. Proceeds—
oil and mining activities.
Office — 350 Equitable

stock

Bldg., Denver, Colo.
city.

Underwriter—Birkenmayer & Co.,

same

Colorado Sports Racing Association (7/29)
April 29 filed 600,000 shares of common stock (par five
cents). Price—$1 per share. Proceeds—For purchase ol
land and other facilities and for working capital.
Of¬
fice—Grand

Junction, Colo.
vesting Corp., New York.
Commerce

Underwriter—General In¬

Acceptance Co.,

Inc., Atchison, Kan.

July

5 (letter of notification) 3,000 shares of 4%%
cumulative preferred stock. Price — At par ($100 per

share). Proceeds—For working capital. Office—604 Com¬
mercial St., Atchison, Kan. Underwriter—First Securities
Co. of Kansas, Inc., Wichita, Kan.

Community Credit Co., Omaha, Neb.
6
(letter of notification) 1,000 shares of 5Y2%
cumulative preferred stock.
Price—At par ($100 per
share).
Proceeds—For working capital.
Office—3023
Farnam St., Omaha, Neb. Underwriter—Wachob-Bender
Corp., sarpe city.
June

Community Drug Co., inc., Arlington, Va.
6 (letter of notification)
30,000 shares of 6%
cumulative participating preferred stock. Price—At par
($10 per share). Proceeds—For expansion, etc. Under¬
writer
Auchincloss, Parker & Redpath, Washington,
July

—

D.

C.

Confidential Finance Corp., Omaha, Neb
March

11

(letter of notification) 150,000 shares of 7%
preferred stock (par 95 cents) and 15,000
stock (par one cent) to be offered in

cumulative

shares of
units of

common

10

shares of preferred

stock.

stock and

one

share of

Price
$10 per unit. Proceeds — For
working capital. Underwriter—J. J. Riordan & Co., Inc*
42 Broadway, New York City.

common

—

Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—25 cents per share.
Pro¬
ceeds—For mining expenses. Office—326 Wiggett
Bldg.,
Coeur d'Alene, Idaho.
kane, Wash.

Underwriter—M. A. Cleek, Spo¬

Consolidated

Sudbury Basin Mines, Ltd.,
Toronto, Canada
""i
3,000,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—For
exploration and development of properties. Underwrites
Jan. 31 filed

—Stock

to

be

sold

on

through underwriters

or

Toronto

Stock

selected dealers

Exchange
in

or

United

States.
Consumers Power Co.
June 24 filed

,

37^,689 shares of

common stock (no par)
common stockholders

being offered for subscription by
on

the basis of

one

new

share

for each 20 shares held

of

July 21; rights to expire on Aug. 5. Unsubscribed
offered to employees of company and it3
subsidiary. Price—$45.25 per share. Proceeds—For con¬
struction program. Underwriters — Kuhn, Loeb & Co.;
as

New York

Clad

For

com¬

Insurance Co. of

Colo.

Cedar

June 7

stock, class A. Price—At par ($1 per share). Pro¬
ceeds—For working capital. Office—807 West Washing¬

April 4
mon

Underwriter—Mountain States Securities, Inc., Den¬

efforts

Proceeds—For reduction of bank loans. Underwriter—To

Arizona Amortibanc,

etc.
ver,

stockholders of

determined

one-half

on

ISSUE

Caribou Ranch Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,

A Boren Oil & Gas Corp., Wichita Falls, Texas
July 26 filed $600,000 of 6% convertible debentures due
July 15, 1975, to be initially offered for subscription by

•^Approved Finance, Inc., Columbus, Ohio
(letter of notification) 5,000 shares of common
stock (no par) to be offered for subscription by stock¬
of

Tex.,

Bojo Uranium Co., Salt Lake City, Utah
July 8 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For expenses incident to mining operations. Of¬
fice—403 Felt Building, Salt Lake City, Utah.
Under¬
writer—J. E. Call & Co., Salt Lake City, Utah.

Proceeds—To

rate

REVISED

•

Stacy

Underwriter—N one.

at

Underwriter—

basis."

July 15 filed 230,000 shares of

holders

ITEMS

&

July 15 filed 800,000 shares of common stock (par $1).
Price—$10 per share. Proceeds—For working capital, etc.

July 13

Utah.

PREVIOUS

June 17

City, Utah

Black Panther Uranium Co., Oklahoma City, Okla.

Co.

736,856 shares of common stock (par $25)
be offered for subscription by common stockholders
the basis of one share for each five shares held on July
15 filed

American

Md

more.

mon

shares of common stock
(par $1). Price — 50 cents per share. Proceeds—For
general corporate purposes. Underwriter—Maine Invest¬
ment Co., Ltd.
.Feb. 17 (Regulation "D") 600,000

June

corporate purposes. Office—Balti¬
Underwriter—Mitchell Securities, Inc., same

capital and general

Corp.

(letter of notification) 15,000,000 shares of comstock. Price—At par (one cent per share). Proceeds

June 10

ADDITIONS

SINCE
•

shares to be

Ladenburg, Thalmann & Co.: Allen Kc Co.; Blair & Co.

Incorporated;*and Salomon Bros. & Hutzler.

Number 5450

Volume 132

Mining Co.
shares of capi¬
cent). Price—Five cents per share.

Copper Blossom Uranium &

(letter of notification) 5,000,000

June 24
tal

stock

(par one

Proceeds—For

Salt

South,

Securities

Underwriter

Utah.
same city.
City,

Corp.,

Office—65 East 4th

operations.

mining

Lake

Empire

—

stock

Price—Five cents per share. Pro¬
Office—65 East 4th South,

ceeds—For mining expenses.

Salt Lake

Corp.,

Underwriter—Empire Securities

City, Utah.
city.

Cordillera Mining Co., Denver,

Colo.

Mining Co., Denver, Colo.

May 27 (letter of notification) 3,000.000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—404 University

Underwriter—Peters, Writer &
Qhristensen, Inc., Denver, Colo.

Building, Denver, Colo.

Inc., Long Beach, Calif.

Uranium,

Long Beach 6, Calif. Underwriter—Coombs & Co., of
Los Angeles, Inc., San Francisco and Los Angeles, Calif.
Uranium

300,UU0 shares ot capital stock. Price—At
share). Proceeds—For inacwnery and build¬

6

filed

($1

per

working capital. Office — 407 Liberty Truaf
Philadelphia, Pa. Underwriter—None.

ing and

Bldg.,

stock

(par five cents).
Price—$1 per share. Proceeds—For
exploration and development expenses, etc.
Offices—
Toronto, Canada, and New York, N. Y. Underwriter—
James Anthony
Securities Corp., New York.

ISSUE

NEW

it Davenport Manufacturing Co., Oak Park, III.
(letter of notification) 4,000 shares of common
Price — $5 per share. Proceeds — For

July 15
stock

(no par).

(par 50 cents).

Farm

equipment and leasehold improvements and working
capital. Office—538 N. East Ave., Oak Park, 111. Under¬

directly

Dawn Uranium & Oil

June

16

Co., Spokane, Wash.

Price

Proceeds—For

10 cents per share.

—

urqnium and oil exploration. Office—726 Paulsen Bldg.,
Empire State Bldg., same city.

(letter of notification) 2,999,000 shares of com¬

June 23

stock

mon

(par

Price—10 cents per share.
operations. Office—Denver

cent).

one

oil

Proceeds—For

and

gas

Colo. Underwriter—Carroll, KirchJaquith, Inc., Denver, Colo.

Club Bldg., Denver,
&

ner

June 9

For

Corp., Salt Lake City, Utah

(letter of notification) 2,000,000 shares of
Price—At par

stock.

mining

City, Utah.

capital

(15 cents per share). Proceeds—
Office—527 Atlas Bldg., Salt Lake

expenses.

and

to

Hotel,

Common
Common

Inc
$3,375,000

Underwriters—Western Securities Corp. and
Co., both of Salt Lake City, Utah.
Uranium Corp.,

Dinosaur
June 20
mon

1,750,000 shares of com¬
(10 cents per share). Proceeds

stock. Price—At par

—For

mining

Office—1226-1411 Fourth Ave.

expenses.

Wash.

Bldg., Seattle,

(in denominations of $250 each). Proceeds—To provide
with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
other state laws.

by

underwriting)

company—no

Industrial Hardware

Federal Mortgage

Weill,

Sulzberger

Blauner

Co.

&

Inc.)

(Allen

&

and

Co.

Five States

E.

(letter of notification) 3,000,000 shares of com¬
Price—At

Pro¬
Office—1019 Simms Bldg.,
Albuquerque, N. M. Underwriters — Coombs & Co. of
Ogden, Inc., Odgen, Utah; and Shelton Sanders Invest¬
mon

stock.

Common

&

$299,600

C.

Price

—

At par

(Tuesday)

(Bids

to

Becker &

Uranium,

& Co.

Peabody

to

Penner

August 8
Livingston

Oil

Columbia

by

Gas

to

be

&

Co.; J.

H.

Merrill

Lynch,

$40,000,000

Lederer

C».;

Bonds
$10,000,000

EDT)

noon

1

(Saturday)

Telegraph

4

October

(Tuesday)
Debentures

Public Service Electric & Gas Co
(Bids

to

be

invited)

(Israel & Co.)

August 9
"(Allen

&

Dairies,
Co.

and

Co., Inc.—Com.

$35,000,000

October 5

Fowler Telephone

Pacific Power & Light Co
(Expected

by

June 6 filed

Worcester

-Debentures
Hutzler)

(Bids

&

Co.)

to

$3,500,000

850,000 shares

of

debentures

invited)

(Garrett Brothers,

Inc.)

19

Electric & Gas

State
(Bias

to

be

invited)

October 25 (

Common

Corp

Bonds

$25,000,000

Tuesday)

Arkansas Power & Light Co

$3,000,000

to

be

Preferred

invited)

$8,000,000

(Friday)
November

Mississippi Valley Gas Co

Debentures

(Offering to stockholders—underwritten by Equitable
Corp.)




(Wednesday)

and

(Eids

August 19

Bonds

$8,500,000

stock

Trqns-Natidnal Uranium & Oil Corp

Securities

be

(Monday)
New York

Dillon

(Tuesday)

$20,000,000

Nitro-Chemicals, Ltd._Debs. & Common

(Eastman,

$2,000,000

Co.,

Pella, la.

Insurance

Co.,

Berkeley, Calif.

$10).

Proceeds—For capital and surplus.
Business—All insurance coverages, except, life, title an<?
mortgage.
Office—2054 University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this
company by Uni-Insurance Service Corp.
Inc., Alexandria, Va.
260,000 shares of com¬
cents). Price—$1 per share. Pro¬
ceeds—For purchase of factory and working capital.
Office—1710 Mount Vernon Avenue, Alexandria, Va*
Underwriter—T. J. O'Connor and Associates, Washing¬
Enterprises,

March 15
mon

(letter of notification)

stock

(par

10

Southern

9

(Wednesday)

15

filed 300,000 shares

(Bids

to

be

Invited)

500,000

share*

inventory

^ General Minerals Corp., Dallas, Texas
July 21 filed 1,850,000 shares of common stock (par $1).
Price—To be supplied by amendment (may be around
$2 per share). Proceeds—To purchase the production
payments to which the company's oil properties are now
subject; to pay an obligation of S. Y. Guthrie, President;
and for acquisition of additional uranium properties and

exploration, development and mining of its present
properties. Underwriters — Sanders & Newsom and
Rauscher, Pierce & Co., both of Dallas, Tex.; and Laird
&

.Common

Co.

Inc.

of common stock (par $1).
plant expansion, new
and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.
Dec.

Price—$5 per share. Proceeds—For

$3,000,000

County Electric Co._

October

August 15
Northwest

&

for

1,000,000 shares of common stock (par

General Homes,

Preferred

local dealers)

Oct. 18

(Tuesday)
Bros.

and

heater.

Leighton, la., and for conversion of both exchanges to
operation. Underwriter — Wachob-Bender Corp.,

(Wednesday)

$300,000

Inc

Salomon

space

May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in

equipment,

Foremost

system;

infra-red

ton, D. C.

McGrath Securities

$300,000

Western Nebraska Oil & Uranium

marketing of "TropicOffice — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
"Totosave"

Ray"

GAD

Common

Co.

$1,298,500

and

50,000 shares of five selling stockholders. Price—$3 per
Proceeds—For working capital; for exploitation

Price—$22 per share.

(Offering to stockholders—no underwriting) $48,688,100

Common

Corp.)

-

Pitt

Freedom

Debentures

Inc

invited)

Pictograph Mining & Uranium Co., Inc.__Common
Shaiman

York.

Packaging International, Inc.
June 30 filed 300,000 shares of common stock (par 100),
of which 250,000 shares of for account of company and

(Wednesday)

Mountain States Telephone &

(Monday)
& Co.)

both of New

dial

$22,000,000

EDT)

a.m.

System,

(Bids

shares

Co

(Van Alstyne, Noel

Bonds
11

October

638,532

$6,000,000

EDT)

a.m.

Pacific Power & Light Co

(Friday)

Beanei

11

September 27 (Tuesday)

Common

&

for par, for the outstanding 50,000 shares of Philadel¬
phia Dairy Products Co., Inc. first preferred stock. Offer
expected to run from Aug. 9. to Aug. 30. Price—105% of

shares

177,500

Co

50,000 shares

stockholders—underwritten

Pierce,

$15,000,000

Preferred

(Bids

Industries, Inc

(Offering

stock, sinking fund series of 1955 (par $50) at the offer¬
ing price; and $5,000,000 are to be offered in exchange,

Omaha, Neb.

Common
Inc.)

4Vz% cumulative preferred stocK, sink¬

ing fund series (par $50) and 4V2% cumulative preferred

Common

invited)

be

to

(Bids

(Thursday)

August 5
Maule

Ohio Power

250,000 shares

Horner <fc Mason,

stock (par $100),

of

Bonds

September 21

Telephone Co

(Scott,

(Tuesday)

13

invited)

be

to

Ohio Power Co

shares

Common

Ltd

Brothers)

August 4
Southeastern

Common
$325,974

Utah Power & Light Co

(Wednesday)

of Canada,

(Lehman

140,000

(8/9)

share.

(Bids

Class A Common

and McCormick & Co.)

August 3
Scudder Fund

(Monday)

Housatonic Public Service Corp
(Offering to stockholders—no underwriting)

160,000 shares

Thomas Industries, Inc.___
(Kidder,

Common
& Co.) $1,250,000

Sept. 2D (Tuesday)

Common
Inc.)

Inc.

Jan.

principal amount. Proceeds—To redeem preferred stocks.
Underwriters—Allen & Co. and Salomon Bros. & Hutzler,

Inc

Sept. 5

Dairies,

$20,000,000 of 4*/2% subordinated deben¬
1, 1981, of which $15,000,000 are to be
offered first to holders of the outstanding $4.50 preferred

Fort

$2,000,000

Inc.)

Co.

Becker & Co.

G.

$6,000,000

(Wednesday)
and Shaiman

Foremost

par

Bonds

Utah Power & Light Co

Pacific Far East Line, Inc
(A.

$67,000,000

(Tuesday)

invited)

be

Investing Corp.

(General

(Bids
G.

Debentures

Preferred

Pacific Far East Line, Inc
(A.

Common

230,000 shares

invited)

be

to

(Bids

August 2

($1 per share). Proceeds — For
for costs on anticipated orders,

reserve

development; and related expenses. Office
Ave., Long Beach, Calif. Underwriter—

Lime

—3372

tures-due

Co

Telegraph Co

September

$276,000

Bowling)

(10 cents per share).

July 21 filed

(Tuesday)

Power

August 31

2,000,000 shares

Insurance Co._-Common

Tennessee Life & Service

shares

200,000 shares

Siboney Development & Exploration Co—Common
(Dempsey-Tegeler & Co.)

100,000

Inc.)

Electric Power Co

Colohoma

Co.)

Co.

&

Pacific Telephone &

Common
Towbin.

par

ceeds—For miaing expenses.

Common

August 30

stock

Rauscher, Pierce & Co.)

(Jesse

Eberstadt

(Bids

Common

Unterberg,

.

Uranium Corp.

None.

invited) $19,500,000

to be

Electric

California

Shoes, Inc
(C.

Bonds

Bonds

Kirhy Oil & Gas Co.___
National

(F.

Co., Inc. and
debentures and 300,000

$1,500,000
of

(8/1)

Underwriter—None.

research and

(Monday)

(James), Inc

Brothers &

Baruch

shares

(Bids

Talcott

'

Mfg. Co., Inc.

Co.;

&

Corp. of Massachusetts

July 15 (letter of notification) $75,000 of 12% bonds due
in five years commencing Dec. 31, 1959. Price—At par
(in denominations of $100 each). Proceeds—For working
capital. Office—59 Olmsted Drive. Springfield, Mass.

★ Fluidal Valves, Inc., Long Beach, Calif.
(letter of notification) 142,500 shares of capital

Francisco Ry.__

St. Louis-San

$75,000

Debentures
(Hallowell

Underwriter—None.

Mortgage Corp. of Connecticut
(8/1)
July 15 (letter of notification) $75,000 of 12% bonds
due in five years commencing Dec. 31, 1959. Price—
At par (in denominations of $100 each). Proceeds—For
working capital. Office—c/o Wilbur Duberstein, Colonial
Green, Westport, Conn. Underwriter—None.

stock.

(Bids to be invited)

Federal Mortgage Corp. of Massachusetts
(Offer

Federations and

of principal amount

July 11

CALENDAR

August 23

underwriting) $75,000

by company—no

Bureau

ments, Albuquerque, N. M.

California

Bonds

»

company

June 30

Seattle, Wash.

(letter of notification)

j

(Monday)

Federal Mortgage Co. of Connecticut
(Offered

Farm

Price—At 100%

Potter Investment

Inc.)

(Golden-Dersch & Co. and Combs & Co. of Las Vegas,

August 1

State

$600,000

Corp.)

<

share.

Federal

Denver-Golden Oil & Uranium Co.

August 22

Association

Investing

(General

Sun

per

Family Mutual Insurance Co., Albany, N. Y$1,500,000 of 5% debentures to be offered
to members of the American Farm Bureau

local organization.

1,500,000 shares of com¬

(letter of notification)

stock.

mon

(Friday)

July 29

Price—$1

June 28 filed

working capital;

Colorado Sports Racing

-

Proceeds—
For mining expenses.
Office—2320 South Main Street,
Salt Lake City, Utah.
Underwriter — Eliason, Taylor,
Cafarelli Co., Las Vegas, Nev.

Co., Inc.

& Development

May 25 (regulation "D") 300,000 shares of common stock

*

Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 share? of. capital

Deseret Uranium

(letter of notification) 3,000,000 shares of capi¬
tal stock. Price—At par (10 cents per share). Proceeds
—For mining expenses.
Office—2485—American Ave.,

May 31

Cromwell

par

Federation

notification) 2,995,000 shares of common
stock.
Price—At par (10 cents per share). Proceeds—
For mining operations.
Offices — 738 Majestic Bldg.,
Denver, Colo., and 317 Main St., Grand Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.

June 8 (letter of

Coso

Jan.

writer—None.

same

Cortez Uranium &

Electronics Co. of Ireland

Casper, Wyo.

New York.

notification) 5,000,000 shares of capital

(par one cent).

Uranium Co.,

May 6 (letter of notification) 225,435 shares of common
stock (par five cents). Price—At market (estimated at
about 15 cents per share). Proceeds—To selling stock¬
holder who received these shares in exchange for shares
of Kontika Lead & Zinc Mines, Ltd. Office—205 Star
Bldg., Casper, Wyo. Underwriter—Justin Steppler, Inc.,

Copper Blossom Uranium & Mining Co.
June 24 (letter of

Crown

33

(401)

The Commercial and Financial Chronicle

...

Co., Wilmington, Del.

Continued

on

page

31

/

34

Continued jrom page

Interstate Adjusteze Corp.

33
i

General

Waterworks

shares of 5%
par ($100 per
share). Proceeds—To retire bank loans. Underwriters—
Southern Securities Corp., and Hill, Crawford & Lanford, Inc., both of Little Rock, Ark.; and Security &
Bond Co., Lexington, Ky.
j.
3,000

cumulative

—

'

s

Medical

•-

June 23 filed

•

Corp.

(letter of notification)
preferred stock. Price

30

June

At

345,534 shares of common stock (par $1)
to be offered for subscription by common stockholders
of Interstate
Engineering Corp. on a share-for-share
basis from about July 22 to Aug. 5. Price—$2 per share.
Proceeds—For machinery and equipment; and for work¬
ing capital. Office — Anaheim, Calif. Underwriters—

Dempsey-Tegeler & Co., St. Louis, Mo.; Cruttenden &
Co., Chicago, 111.; and Fairman & Co., Los Angeles, Calif.

it Gibralter Uranium Corp., Aurora, Colo.
July 18 (letter of notification) 2,000,000 shares of com¬
stock (par one cent). Price — 15 cents per share.
Proceeds—For expenses incident to mining. Office—701
Moline St., Aurora, Colo. Underwriter—Robert J. Con-

it Interstate Amiesite Corp.
V *.
July 19 filed $438,200 of 5%% convertible debentures
due 1965, to be offered first for subscription by stock¬

nell, Inc., Denver, Colo.

Proceeds

mon

•

Goodyear Tire & Rubber Co., Akron, Ohio
June 28 filed 913,531 shares of common stock (par $5)
being offered for subscription by stockholders of record
July 21 on the basis of one new share for each 10 shares
held; rights to expire on Aug. 8. Price—$50 per share.
Proceeds—For expansion and working capital.
UnderwTiter—Dillon, Read & Co., Inc., New York.
Great Eastern Mutual Life

(letter of notification) 45,583 shares of common
(par $1) to be offered for subscription by stock¬

holders of record June

10 in

the ratio of

new

one

,

holders

at

share

for each three

the

held.

shares

—

of

rate

of

$20

debentures

each

for

16

To be supplied by amendment.
working capital. Business — Bituminous

Price

For

paving materials. Office—Delaware Trust Bldg.,
Wilmington 99, Del. Underwriter—None.

it Investment Trust of Boston, Boston, Mass.
July 15 filed (by amendment) 800,000 shares of bene¬
ficial interest in the Trust. Price—At market. Proceeds—

28

(par

one

Plantations, Ltd.
filed 24,900 shares of ordinary common stock
Israeli pound). Price—$10 per share. Proceeds

—For capital expenditures.

Underwriter—None.

Offices

—Natanya, Israel, and New York, N. Y.

holders, $3

stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Office—206 N. Virginia
St., Reno,

Boston

Bldg., Denver,

Great Yellowstone

June 29

Uranium

Underwriter—None.
Co.

(par

Proceeds—For

10

cents).

mining

ginia St., Reno, Nev.

1,200,000 shares of com¬
Price—25 cents per share.

operations. Office—139 N. Vir¬
Underwriters—Cromer Brokerage

Co. and Walter Sondrup &

Nev.

common

Underwriter—Whitney, Cranmer & Schulder, Inc.,

Denver, Colo.

(letter of notification)

stock

mon

Colo.

Co., both of Salt Lake City,

Utah.

•
Kirby Oil & Gas Co. (8/1-2)
July 8 filed 200,000 shares of common stock

of which

100,000 shares

are

(par $1),

for the account of the

son-Richardson

financial

interests

of

Texas.

Price—To

be

it Hand-Skill Looms, Inc., Woonsocket, R. I.
July 20 (letter of notification) 19,000 shares of 6%

supplied by amendment. Proceeds—To retire out¬
standing bank loans and for exploration of oil and gas
cu¬

mulative preferred
ferred

stock (par $5) and 57,000 shares of
(par $2) to be offered in units of one pre¬

stock

common

three

and

Proceeds

—

For

capital, etc.

common

shares.

development

Office

—

Price—$11

per unit.
expansion; working

and

59 Social

St., Woonsocket, R. I.

Underwriter—None.

leases.

Underwriters—Allen & Co., New York; and Rauscher, Pierce & Co., Dallas, Texas.

Price—At par

($10

per

share).

common

Proceeds

purchase of properties and working capital.

—

For

Underwriter

—None.

Hardy-Griffin Engineering Corp., Houston, Texas
July 8 (letter of notification) 240,000 shares of common
stock (par one cent). Price—$1.25 per share. Proceeds—
For purchase of machinery and equipment and working
capital. Underwriter—Benjamin & Co., Houston, Texas.
Hawk Lake Uranium Corp.
April 12 filed 200,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For mining
expenses, etc. / Underwriter—Dobbs & Co., New York
City, will act as agents.

•

LeBlanc Medicine Co.,
Inc., Lafayette, La.
April 6 filed 1,000,000 shares ot common stock (par 10
cents).
Price—$1 per share.
Proceeds—For purchase
of land, plant,
warehouse, office building and equip¬
ment; and additional working capital. Business—Proc¬
essing, packaging and merchandising of new pronri^torv

medicine,

KARY-ON.

withdrawn.

Underwriter

—

None.

Statement

stock

common

and

10,838

5,419 shares of class A
shares of class B common

stock. Price—At par ($10 per share). Proceeds—For ex¬
pansion, equipment and working capital. Underwriter—

Butcher &

Sherrerd, Philadelphia, Pa.

Home-Stake Production Co.,
Tulsa, Okla.
May 12 filed 60,000 shares of capital stock (par $5) and
1,000 debentures (par $100) to be offered for sale in
units

of

60

shares of

stock

and

$100 debenture, or
multiples thereof. Price—$400 per unit. Proceeds—For
working capital. Underwriter—None. O. Strother Simp¬
son, of Tulsa, Okla., is President.
Horton Aircraft Corp., Las
April 26 filed 500,000 shares of

one

Leborn Oil & Uranium Co.

Vegas, Nev.

common stock (no
par),
of which 400,000 shares are to be offered for
account of

company

and

100,000 shares for account of William E.
Price—$1 per share. Proceeds—For

Horton, President.
construction

of

model

and expenses incident

of

"Horton

thereto.

Wingless

Aircraft"

Underwriter—None.

(letter of notification) 6,000,000 shares of capital
stock.. Price—At par (five cents per share). Proceeds—
For mining expenses.
Office — 124y2 South Main St.,

Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
Life and Accident Insurance Co. of Alabama
June 2 filed 750,000 shares of class B
(non-voting) com¬
mon stock (par $1).
Price—$3 per share. Proceeds—To
increase capital and surplus.

Office—Gadsden, Ala. Un¬
None, sales to be handled by Burlus Ran¬
dolph Winstead, Secretary and Treasurer of the com¬

derwriter

Office

Houston, Tex.
Underwriters—Hunter Securities Corp., New
York; and
Garrett & Co., Dallas, Tex.
Inca

Uranium

25

Salt Lake

City, Utah. Underwriter
Co., Salt Lake City, and Moab, Utah.
•

Industrial Hardware Mfg. Co.

—

for acquisition of additional proper¬
ties; and for working capital and other purposes. Under¬
writer—Peters, Writer & Christensen, Inc., Denver, Colo.

sup¬

plied

by amendment.
Proceeds—To purchase Hugh H.
Eby Co. and Wirt Co. Underwriters—Hallowell, Sulz¬
berger & Co., Philadelphia; and Baruch Brothers &
Co.,
Inc., Weill, Blauner & Co., Inc., both of New York.

• Inland Oil & Uranium Corp.,
Denver, Colo.
July 18 (letter of notification) 1,200,000 shares of
stock

(par 10 cents).

Price

—

25

cents

per

com¬

Proceeds—For expenses incident to oil and
gas activities.
Office—3975 East 58th
Ave., Denver, Colo. Underwriter
•—Shaiman & Co., Denver, Colo.

International Fidelity Insurance
Co., Dallas, Tex.
March 30 filed 119,000 shares of
common stock (no par).
Price—$5.75 per share. Proceeds—To 12 selling stock¬
holders.
Underwriter—Franklin Securities Co., Dallas,
Texas.




it Meter Advertising Co., Yakima, Wash.
(letter of notification) 7,501 shares of common
stock. Price—At par ($5 per share). Proceeds—For pur¬
chase of meter advertising devices and miscellaneous
expenses.
Office—416 South 18th Ave., Yakima, Wash.
July 12

Underwriter—None.
•

Midwestern

May

United

25 filed 75,000

Life

Insurance Co.

shares of

common

stock to be of¬
1

fered for subscription by stockholders of record June
on

l-for-4

a

For

capital

Fort

basis.

and

Price—$2 per share.
Proceeds—
Office—229 West Berry St.,
Underwriter—'None. Statement effec¬

surplus.

Wayne, Ind.

Mitchell Mining Co., Inc., Mount Vernon, Wash.
May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box 301, Mount
Vernon, Wash. Underwriter—Standard Securities Corp.,
Spokane, Wash.
Moab King, Inc.
April 4 (letter of notification) 10,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Office—210 Zions Savings
Bank

Building,

Salt Lake
Co.,

City, Utah.
city.

Underwriter

—

same

it Moapa Uranium Corp., Las Vegas, Nev.
(letter of notification) 3,000,000 shares of com¬
mon stock.
Price—A.t par (10 cents per share). Proceeds
—For mining expenses.
Office—1112 Fremont St., Las
Vegas, Nev. Underwriter—None.
July 11

Monte

Carlo

Uranium

Mines, Inc.
notification) 6,000.000 shares of com¬
mon
stn^k.
Price—At par (five ^nts per share). Pro¬
ceeds—For mining expenses.
Office — 706 Newhouse
Bldg., Salt Lake City, Utah.
Underwriter—Mid-Con¬
tinent Securities, Inc., same city.
June

6

(letter of

Morning Sun
mon

14

Uranium, Inc., Spokane, Wash.
notification) 700,000 shares of com¬

(letter of

stock

(par 10 cents).

Proceeds—For

mining
Bldg., Spokane, Wash.
same city.

Price

expenses.

—

25

Office

cents
—

per

415

share.

Paulsen

Underwriter—Pennaluna & Co.,

it Murdock Acceptance Corp., Memphis, Texm.
July 15 (letter of notification) 26,000 shares of common
stock (par $5). Price—$11.50 per share. Proceeds — For
working capital.
Office — 400 Union Ave., Memphis,
Tenn. Underwriters—Equitable Securities Ccrp., Nash¬
ville, Tenn.; and Bullington-Schas & Co., Memphis,

cents).

Price—$2.75

per

share.

Proceeds—For purchase

of properties and

working capital.
Alstyne,, Noel & Co., New York.

Underwriter

—

Nichols Co., Las Vegas, Nev.
Lutah Uranium &

(par one cent). Price—10 cents per share.
Proceeds—For mining operations.
Office—Suite 1003,
Continental Bank Bldg., Salt Lake
City, Utah. Under¬

•

city.

same

Maule

Industries, Inc., Miami, Fla. (8/5)
July 15 filed 638,532 shares of common stock (par $1),
to be offered for subscription
by common stockholders
at

convertible

National
com¬

stock

writer—Havenor-Cayias. Inc.,

June

Tenn.

Oil, Inc.

the rate

of one new share for each
2% shares held
Aug. 5; rights to expire Aug. 22. Price—To be
supplied by amendment. Proceeds
To pay purchase
money notes issued in connection with property acquisi¬
tions; to pay bank loans; and to exercise an option to

May

Credit Corp., Phoenix, Ariz.
6 filed 300,000 shares of common stock (par $1).
per
share.
Proceeds—For working capital.

Price—$3

Underwriter—None.
• National
Shoes, Inc. (8/1)
July 15 (letter of notification) 42.800 shares of common
stock (par $1). Price—$7 per share. Proceeds—For work¬
ing capital. Office—595 Gerard Ave., Bronx, New York

City.

Underwriter—C.

E.

Unterberg, Towbin

purchase the Lake plant property. Business—Production
and sale of concrete
aggregates, concrete blocks and
ready-mix concretes.
Underwriter
Merrill Lynch
—

Pierce, Fenner & Beane, New York.

it McFarland Manufacturing Corp., Houston, Texas
July 18 (letter of notification) 7,500 shares of common
stcok.

Price—$10

per

capital and expansion.

ton, Tex.

share.

Proceeds

Office—1630

Underwriter—None.

■—

For

Roberts

working

St., Hous¬

Co., New

York.

about

—

share.

l^-for-l

a

Lone Star Uranium &
Drilling Co., Inc.
April 7 (letter of notification) 570,000 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—1100
Fidelity UnioD
Life Bldg., Dallas, Tex.
Underwriter — Christopulos-

Livingston Oil Co., Tulsa, Okla. (8/8-12)
16 filed 742,000 shares of common stock
(par 10

June

mon

(8/1-5)

on

basis; and 548 shares of class B common stockholders of
The Osgood Co. on a 1-for-l1/^ basis. Underwrriter—None.

Van

Statement effective July 11.

May 23 (letter of notification) 3,000,000 shares of

$1,500,000 of 5% debentures due
1975 and 300,000 shares of common stock
(par 50 cents),
of which 85,000 shares are to be
sold to Seymour and
Bernard Offerman at $5 per share. Price—To be

127,623 shares to common stockhold¬
Shipbuilding Corp. on a share-for-share
basis; 53,324 shares to common stockholders of Ten¬
nessee Products & Chemical Corp. on a 1^4-for-l basis;
13,453 shares to common stockholders of Newport Steel
Corp. on a l-for-2.1 basis; 10,899 shares to common
of New York

Mortgage Associates, Inc., Philadelphia, Pa.
7 (letter of notification) 20,000 shares of 60-cent
preferred stock (par $5) and 20,000 shares
of common stock (par 10 cents). Price—For preferred,
$10 per share; and for common, $2.50 per share. Proceeds
—For construction loans and acquisitions. Underwriters
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S. Hope & Co., Scranton, Pa.

Guss & Mednick

May 12 (amendment)

mon

Uranium

—

Corp., Salt Lake City, Utah
(letter of notification) 15,000,000 shares of
capital stock. Price—At par (one cent per
share). Pro¬
ceeds—For mining expenses.
Office—1946 S. Main St.,
April

lV3-for-l basis;

naissance surveys;

•

Formerly Humble Sulphur Co.

Merritt-Chapman & Scott Corp., New York
28
filed 314,718 shares
of common stock (par
$12.50) to be offered in exchange as follows: 102,250
shares to class A stockholders of Devoe & Raynolds &
Co., Inc. on basis of 1% shares for each Devoe share;
6,621 shares to class B common stockholders of Devoe
June

June
Star

Co., Inc., Casper, Wyo.
May 25 filed 5,000,000 shares of common stock (par 10
cents). Price—15 cents per share. Proceeds—To pur¬
chase machinery and equipment; for
drilling and recon¬

•

Houston Gulf Sulphur Co.
April 25 filed 500,000 shares of common stock (par one
cent). Price—$1.20 per share. Proceeds—For explora¬
tion for sulphur and related activities.
Name Changed—

—

pany.

Little

sale
sub¬

Underwriter—None.

Potter Investment

'

.,-•••••

June 8

it Hedges Diesel, Inc.
July 25 (letter of notification)

tropical fruits.

gen¬

tive.

it LaFayette Mills, Inc., LaFayette, Ga.
July 15 (letter of notification) 28,400 shares of
stock.

working capital and other

and

groves

eral corporate purposes. Business—Production and
of citrus fruits in State of Israel; also plans to grow

com¬

and 100,000 shares for the account of the Murchi-

pany

additional

stockholders of Marion Power Shovel Co.

Kachina Uranium Corp., Reno, Nev.
May 12 (letter of notification) 600,000 shares of

210

(letter of

Mehadrin Plantations, Inc., New York
April 28 filed 70,000 shares of common stock (par $10).
Price—$10.75 per share.
Proceeds—For acquisition of

ers

Pecan

shares held; stock not subscribed for by
Sept. 10, 1955 will be offered to public. Price—To stock¬

per share; and to public, $5 per share.
Pro¬
ceeds—To increase capital and surplus accounts. Office—

15

stock

mon

on

For investment.
Israel

Abstracts, Inc., Philadelphia, Pa.
notification) 300,OOu shares of com¬
(par one cent). Price—$1 per share. Proceeds
—For working capital, etc. Office—825 Western Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
Bliedung, Washington, D. C.
June

—

concrete

Feb.

Insurance Co.

June 23
stock

.Thursday, July 28, 1955

The Commercial and Financial Chronicle..

(402)

I

Navajo Cliffs

Uranium

Corp.,

^

■

Provo,

Utah

July 6 (letter of notification) 6.000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
University
Ave., Provo. Utah. Underwriter — Lindquist Securities,

ceeds—For mining exnenses. Office—156 No.

Salt Lake

City, Utah.

it Nekoosa-Edwards Paper Co., Port Edwards, Wis.
July 18 (letter of notification) 1,062 shares of common
stock

(par $10) to be offered to employees pursuant to
Employees' Stock Option Plan. Price—$12.75 per share.
Proceeds—For general corporate purposes.

—None.

Underwriter

Volume 182

Number 5450

...

The Commercial and Financial Chronicle
'MiL

,

★ Neva-U-Tex Uranium, Inc., Goldfield, Nev.
15 (letter of notification) 4,000,000 shares of

July
ital

stock.

Price—Five

cents

Lake

N. Mex.
Underwriter
Corp., Salt Lake City, Utah." v

City, Utah.
23

stock

cent).

/

St., New York, N. Y.

of

cent)

to be

$50 of debentures and five shares of stock.

construct

capital

a

and

other

"as

share. Proceeds—
Office—Fortune Arms

Price—$1

per

exploration.

mulative

-

,

outstanding, intends to exercise rights to

purchase the 117,877 shares to which it is entitled. Price
—$8

share.

per

Proceeds—For equipment, to acquire oil

and
gas
interests, exploration and possibly drilling
costs; and to pay all or a portion of a $705,000 mortgage
note.
OH ice
New Orleans, La.
Underwriters—None,
but Morgan Stanley & Co. (New York) and Reinholdt
& Gardner (St. Louis, Mo.) have agreed to use their
—

best elf cits to sell any
of 107,789 shares).

unsubscribed share

(a maximum

the

on

basis of

held; rights to expire

one

new

share

for

each

share

Price—$21 per share.
increase its premium vol-ume.
Giiice—Greensburg, Pa. Underwriter—The First
Boston Corp.., New York.
Proceeds—To

on

diversify

Aug. 8.

and

if Orange Hotel, Inc., Dallas, Texas
July 19 filed $450,000 of registered 4% sinking fund
debentures due May 1, 1985, which are to be offered
in exchange for $375,000
principal amount of registered
.

4% debentures and 3.750 shares of $20 par stock of
Orange Community Hotel Co. in the ratio of $120 of new
debentures for each $100 of debentures and 20 shares of
stock of the

Community

Pacific Far East

July

32

filed

company. Underwriter—None.

Line, Inc.

80,000

cumulative

convertible

preferred stock (par $25) and 160,000 shares of
stock

sold

$5).

(par
for

Of
of

account

account of the

the
the

latter, 100,000 share
company

and

common

are

to

be

60,000 shares for

Chicago Corp.

Price—To be supplied by
Proceeds—To retire a small issue of junior

amendment.

preferred stock and for fleet replacement program. Of- ~
Francisco, Calif. Underwriter—A. G. Becker

fice—San
&

Co.

Inc., Chicago, 111.

Pacific
June

Uranium & Oil

Corp.

6

(letter of notification) 3,000,000 shares of com¬
stock (par two cents).
Price—10 cents per share.
Proceeds
For mining expenses.
Office — 811 Boston
Bldg., Denver, Colo. Underwriter—Amos C. Sudler &
Co., same city.
mon

—

Palestine Economic
Corp., New York
1 filed 50,000 shares of common stock

July
and

—-Of

amount.

Israel

Proceeds

industry;

—

For further

development

of

$25)

development of

urban

and

suburban

areas; extension of
and

working

credit; financing of exports to Israel;
capital and general corporate purposes.

Underwriter—None, sales
pany

to

be

handled

through

com¬

officials and employees.

Panama

Minerals, Inc., S. A.

(Republic of

Panama)
June

30 filed

400,000 shares of

Price—$1.25 per share.

Office—Denver, Colo.

stock

common

(par $1).

Proceeds—For mining expenses.
Underwriter—None.

ir Pandora Uranium Mines, Inc.
July 14 (]etter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For

incident

expenses

to

mining operations.
Office—5Q0 Main St., Groad Junction, Colo. Underwriter
—Columbia
Lake

Securities

Co.,

Denver

2,

Colo,

and

Salt

City, Utah.

Pelican Uranium

Corp., Salt Lake City, Utah
May 25 (letter of notification) 300,000 shares of common
stcck (par five cents).
Price—10 cent? per share. Pro¬
ceeds—For

mining

South,

Lake

Salt

expenses.

City,

Western

Brokerage
Lake City, Utah.

Co.,

Office

—

688

East

21st

Utah.
Underwriter
TransNew Orleans, La., and Salt
—

Permian Basin Uranium Corn.

June 2
stock.
For

(letter of notification)
Price—At

mining costs.

640,000 shares of common
(10 cents per share). Proceeds—
Office—613 Simms Building, Albu¬

par




Price—$10

per share
working capital and
Office—Houston. Tex. Un¬

Proceeds—For

6%

preferred

common

stock

derwriter—None.
Powder River Pipeline,
Inc., Billings, Mont.
/
May 31 (letter of notification) $300,000 of 5V2% 10-year

debentures.

Price—At

(in denominations of $1,000
each). Proceeds—For expenses incident to oil and gas
activities. Underwriter—The First Trust Co. of
Neb.
•

par

Lincoln,

Office—Fratt Bldg., Billings, Mont.

Primary Minerals Corp.

May 24 filed 1,400,000 shares of common stock (par one
cent). Price—50 cents per share. Proceeds—For acquisi¬
tion of mining equipment and other
mining expenses.
Office

San

Francisco, Calif.
Underwriter
General
Investing Corp., New York. Statement withdrawn.
—

General share. Offer is conditioned upon St. Regis
obtaining 80% of outstanding General stock. Underwriter
one

—None.

if Salerno Uranium Mining Co., Patagonia, Ariz.
July 18 (letter of notification) 75,000 shares of capital
stcok.

if Produce Materials Cooperative Association, Inc.
June 23 (letter of notification)
250 shares of capital
stock and 250 membership ($100
each). Price—At par
($100 per share). Proceeds — For expenses incident to
packaging agricultural products and reselling to mem¬
Address—Box

683, Salinas, Calif.

Underwriter—

Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per share).
Proceeds—For
swimming pool, club furnishings and equipment, golf
course and organization and develoment
expense. Office
—Bowie, Md. Underwriter—L. L. Hubble & Co., Inc.,
Baltimore, Md.
Pyramid Electric Co.
May 3 filed 50,000 shares

of common stock (par $1).
supplied by amendment. Proceeds — To
selling stockholders. Underwriter r- S*,D. Fuller & Co.,
Price—To

be

New York.

if Radium Hill Uranium, Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of common
(par one cent). Price—32 cents per share. Pro¬

stock

For

incident to mining operations.
Bldg., Montrose, Colo.
Underwriters—
General Investing Corp., New York, N.
Y., and Shaiman
& Co., Denver, Colo.
—

Price—$4

share.

per

Proceeds—For

mining

ex¬

Underwriter—None.

San Juan Uranium

Corp.
(letter of notification) 89,850 shares of common
(par one cent), represented by options issued to
underwriters. Price—50 cents per share. - Proceeds—To
selling stockholder. Office
Fidelity Bldg., Oklahoma
City, Okla. Underwriter — E. W. Whitney, Wewoka,
June 23
stock

—

Okla.; and through

company.

Sanitary Products Corp., Chicago, III.
June 27 (letter of notification) 15,000 shares of common
stock (par $1).'
Price—At market (estimated at $1.62V2
to $2
per
share).
Proceeds—To selling stockholder.
Office—10 So. LaSalle St., Chicago, 111.
Cruttenden

&

Underwriter—

Co., Chicago, 111.

Santa Fe Uranium &

Oil Co., Inc.
(letter of notification) 2,959,500 shares of com¬
(par one cent). Price — 10 cents per share.

May 26

stock

mon

Proceeds—For mining operations.
dence

Office—416 Indepen¬

Bldg., Colorado Springs, Colo.
Co., Denver, Colo.

Underwriter—Co¬

lumbia Securities
•

Savoy Oil Co., Inc., Tulsa, Okla. (7/29)
July 8 (letter of notification) 20,000 shares of common
stock (par 25 cents) to be offered for subscription by
stockholders of record July 29 on a l-for-13 basis; rights
to expire on Aug. 15.
Price—$7 per share. Proceeds—
For exploration, development and acquisition of proper¬
ties.

Office—417

McBurney Bldg., Tulsa, Okla.

Under¬

writer—None.

—

Saxon Uranium Mines Ltd., Toronto, Canada
April 29 filed 1,500,000 shares of common stock (par $1).
Price—40 cents per share. Proceeds — For exploration
and working capital; also to repay advances and other

liabilities.

Underwriter

New York.

—

Securities

Degaetano

Corp.,

Statement effective July 6.

• Scudder Fund of
Canada, Ltd. (8/3-4)
July 14 filed 250,000 additional shares of common stock
(par $1). Price — At to be supplied by amendment.

Proceeds

For

—

investment.

Underwriter

Lehman.

—

Brothers, New York.
Shoni Uranium Corp., Riverton, Wyo.
April 21 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds
For mining expenses. Address — Box 489,
Riverton, Wyo. Underwriter — Melvin F. Schroeder,
Denver, Colo.
1
—

Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining expenses.
Office — 6 Kirby St.,
Moab, Utah. Underwriter—Skyline Securities Inc., Den¬
ver, Colo.
June 20

Siboney

expenses

Okla.

Office—Bryant

Development &

Exploration Co.,

June 27 filed

2,000,000 shares of

common

stock

Price—To be supplied by amendment.

cents).

Tulsa,

(8/1-5)

(par 10

Proceeds

—For

if Rampart Uranium Co., Colorado Springs, Colo.
July 19 (letter of notification) 2,475,000 shares of com¬
mon

stock.

Price—At par (10 cents per share).

Proceeds
incident to mining operations. Office—
Mining Exchange Bldg., Colorado Springs, Colo. Under¬
writer—A1 J. Johnson & Co., same address.
—For

expenses

Rebel Oil & Uranium Co., Denver, Colo.
May 27 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining
operations.
Office—636 South
Broadway, Denver, Colo. Underwriter—Lester Gould &
Co., Inc., same city.

Realty, Inc., Cincinnati, Ohio
$1,000,000 of 5Vz% cumulative convertible
debentures due Jan. 1, 1980 and 25,000 shares of common
stock (no par). Price—Par for debentures and $100 per
March 8 filed

share for stock.

Proceeds

Interest therein.

Underwriter—Stanley Cooper Co., Inc.,

—

To purchase

real estate

or

Cincinnati, O.
if Rocket Mining Corp., Salt Lake City, Utah
15 (letter of notification) 6,000,000 shares of cap¬
ital stock (par one cent).
Price—Five cents per share.
Proceeds—For
mining operations.
Office—530 Judge
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri¬
July

Securities, Inc., of Utah, 26 W. Broadway, Salt Lake
City, Utah.

ca

if Royal Register Co., Inc., Nashua, N. H.
July 20 (letter of notification) 25,000 shares of class A
common stock (par $1).
Price—$10 per share. Proceeds
—For purchase cf materials and supplies; capital
equip¬
ment

and

geological and geophysical surveys and for drilling
exploratory wells.
Underwriter—Dempsey-Tegeler

of
&

Co., St. Louis, Mo.
Aircraft

Silvaire
June 17

reduction of

note

debt; and for working cap¬
ital. Office
1 Pine St.,
Nashua, N. H. Underwriter—
Lamont & Co., Boston, Mass.

exceed

$150,000).

Proceeds—For working capital. Office

—Walker Bank Bldg., Salt Lake City, Utah. Underwriter

—Whitney & Co.,

same

city.

No general offer planned.

Saint Anne's Oil Production Co.

—$6.25 per share.
related activities.

—None.

Proceeds

—

For oil and mineral and

Co.

Denver, Colo.
Smith-Dieterich

July
stock

Corp.

(letter of notification) 8,677 shares of capital
(par $2.50)
to be offered for subscription by

12

on

basis of

one new

share for each 10 shares

share. Proceeds—To obtain addi¬
tional
patents; to repay certain loans; and working
capital/ Business—Photographic equipment. Office—50
Church St., New York. Underwriter—None.
held. Price—$5.50

Sonoma

per

Quicksilver Mines, Inc.

April 27 filed 800,000 shares of capital stock (par 10
cents), of which 80,000 shares are to be initially offered
to public. Price—To be fixed on the basis of the market
value at the time of their first sale or $1 per share,
which

ever

is

lower.

Purpose

To

—

increase facilities

and invest in other

quicksilver properties: and for work¬
ing capital.
Office—San Francisco, Calif. Underwriter
—Norman R. Whittall, Ltd., Vancouver, B. C., Canada.
Southeastern Telephone

Co..

(8/4)

July 15 filed 50,000 shares of common stock (par $10).
Price—To be supplied by amendment. Proceeds—To re¬
bank loans and for construction program. Under¬
writer—Scott, Horner & Mason, Inc., Lynchburg, Va.

pay

Stancan Uranium

Corp., Toronto, Canada

April 18 filed 200,000 shares of cumulative convertible

preferred stock, series A (par one cent). Price—To be
supplied by amendment. Proceeds—For exploration and
development expenses and for general corporate pur¬
poses.
Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc., both of New York.
Strevell-Paterson

Finance Co.

June 16 (letter of notification) 352,000

shares of common
be offered for subscription by
unsubscribed shares
to be publicly offered at $85 per 100 shares. Proceeds—
For working capital.
Office—76 West Sixth South St.,
stock

May 9 (letter of notification) 20,000 shares of common
stock (par $1) to be first offered to stockholders. Price

Uranium

stock

—

Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of common
stock (par five cents).
Price—At market (total not to

&

(letter of notification)

3,000,000 shares of com¬
(par one cent); Price —10 cents per share).
Proceeds—For mining operations. Office—Fort Collins,
Colo.
Underwriter—Carroll, Kirchner & Jaquith, Inc.,
mon

stockholders

Revere

(par

$2,000,000 of five-year 5% notes, series 1955. Price
stock, $28 per share; and of notes, at 100% of prin¬

cipal

common stock (par $1)
entitling the holder to purchase
prices ranging from $13 to $20

the exercise date.

upon

Regis Paper Co., New York

penses.

working capital and operating expenses. Office—
Connecticut Ave., N. W., Washington 6, D. C. Un¬

1025

ceeds

(8/2)

of

shares

of

None.

stock (par $5)
being offered for subscription by stockholders of record
30

ex¬

St.

35

June 28 filed 329,327 shares of common stock (par $5) to
be offered in
exchange for common stock of General
Container Corp. on basis of 2% shares of St. Regis for

—For

bers.

Old Republic Insurance Co.
June 10 filed 100,000 shares of common
'

June

one

purchase

stock
(par $100)
and 15,200
(par $1). Common stock is of¬
pursuant1 to option provided by preferred, such
option covering 10 shares of common at $1 per share at
any time prior to July 1, 1958.
Price—At par. Proceeds

Drilling & Exploration Co.
June 23 filed 225,666 shares of common stock (par $1)
being offered for subscription by common stockholders
of record July 13 on the basis of two new share for each
nine shares held; rights to expire on July 28.
Murphy
Corp., which owns 530,450 shares (52%) of the 1,015,500
shares

for

fered

Ocean

common

and

Mortgage & Development Corp.

speculation."

a

shares of

Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah.
•

(8/8)-

stock (par
Proceeds—For

Statement effective July 14.
if Porter International Co., Washington, D. C.
July 18 (letter of notification) 250 shares of non-cu¬

York.

(par 50 cents).

-

derwriter—None.

Price—To

Oasis Uranium & Oil Corp., Fort Worth, Texas
June 8 (letter of notification) 265,000 shares of common
stock

Securities

V

common

share.

operations

general corporate purposes.

units

corporate purposes.
Office—Calgary,
Underwriters—Eastman, Dillon & Co.,

For uranium and oil

mining

per

additional share at

depending

by amendment. Proceeds—To buy land and
synthetic fertilizer plant; and for working

Alberts, Canada.
New

in

offered

cents

with warrants attached

it Northwest Nitro-Chemicals, Ltd. (8/15-19)
21 filed £8,500,000 of 10-year subordinate income
debentures, series A and B, due 1S65, and 850,000 shares

be supplied

„

April 27 filed 300,UUO shares of

Office—

Underwriter—None.

duly

one

and

Pioneer

one

(par

^

or
leases when justi¬
Office—Edgemont, S. D. Underwriters—Shaiman
Co., Denver, Colo.; and J. H. Lederer Co. and McGrath
Securities Corp., both of New York
City.

on
the basis of one share for each 3V2 shares
(with an oversubscription privilege). Price—To be
supplied by amendment. Proceeds—To repay bank loans

stock

'

&

holders

common

-

fied.

held

of

Western

equipment and additional claims

(letter of notification) 4,438 shares of common
to be offered for subscription by stock¬

and accounts payable and for new construction.

Price—25

ploration

(no par)

50 Church

■'

Pictograph Mining & Uranium Co., Inc.

June 15 filed 2,400,000 shares of

Northport Water Works Co.
June

—

per

Utah Uranium Brokers, Salt

—

(403)

*

querque,
cap¬

share. Proceeds—For
Office—312 East Crook St., Gold-

mining expenses, etc.
field, Nev. Underwriter

•,<

(par 50 cents)

stockholders at 70

to

cents per share;

Office—Northwood, Iowa. Underwriter
i

Continued

on

page

36

Thunderbird Uranium Corp.,

Continued from page 35

For

Hotel, Inc., Las Vegas, Nev. (7/29-8/1)
filed (as amended) 3,750,000 shares oi com¬
(par one cent). Price—$2.50 per share. Pro¬
ceeds—To construct hotel and for working capital. Un¬
derwriters—Golden-Dersch & Co., Inc., New York; and
Sun

16

Feb.

notification) 3,000,000 shares of common
par (10 cents per share).
Proceeds—
Office—915 Simms Bldg., Albu¬
N. M. Underwriter—Hicks, Newton & Co., Inc.,

June 9 (letter of

Price—At

stock.

city.

& Co., same

Albuquerque,

Mexico

New

Underwriter—Harrison S. Brothers

Salt Lake City, Utah.

»

mining

querque,

expenses.

Coombs & Co. of Las Vegas, Inc., Las

& Oil

Corp.

(8/15)

1

at $1.50 per

if Sunlanc Farms, Inc., Las Vegas, Nev.
July 15 (letter of notification) 300,000 shares of non¬
assessable capital stock. Price—At par ($1 per share).
Proceeds — For balance due on property, construction

and operating capital and reserve. Office—425
Las Vegas, Nev. Underwriter—None.

expense

Fremont St.,

Super-Seal Piston Ring Corp., Brownwood, Tex.
(letter of notification) 575,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For
machinery and
working capital.
Office—1812
Belle Plain Ave.,
Brownwood, Texas.
UnderwriterGreat Southwest Securities Co.
June 3

Tasha Oil & Uranium

Co., Denver, Colo.

(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—1890 S. Pearl
May 11
mon

stock

Underwriter
city.

St., Denver, Colo.

Jaquith, Inc., same

Carroll, Kirchner &

—

^Teenager Cosmetics, Inc., Las Vegas, Nev.
July 18 (letter of notification) 287,000 shares of common
-dock. Price—At par ($1 per share) in units of 100 shares
each.
Proceeds—For current liabilities, overhead and

operational expense, advertising, research, development
Office—221 West Charleston Blvd.,

—

Inc., Dallas, Tex.

Underwriter—Utah Uranium Brokers,

Vegas, Nev.
"Las Vegas, Nev.

^

/

Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
stock.
Price—At par (50 cents per share). Proceeds—
For mining

operations.

Office

—

Lake

City, Utah. Underwriter
Washington, D. C.

506 Judge Bldg., Salt

Lewellen-Bybee Co.,

—

Natural Gas Co., Tucson,

Tri-State

.Tungsten Mountain Mining Co., Fallon, Nev.
June 8 (letter of notification) 149,800 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
mining operations. Address — P. O. Box 456, Fallon,
Churchill County, Nev. Underwriter—H. P. Pratt & Co.,
Seattle, Wash.
Uranium

Turner

held;'rights to expire on Aug. 15. Price—At par
{in denominations of $500 and $1,000 each). Proceeds—
To retire outstanding loans from Commercial
Credit

stock

Corp.; to purchase additional stock of Nuclear Consult¬
ants, Inc.; for expansion of present merchandising activi¬

ties; and for general corporate purposes.

Underwriter—

None.

Tel-Instrument

Electronics

June 28 (letter of notification)
.stock (par 10 cents).

Corp.

199,999 shares of common

share. Proceeds—
For acquisitions and working capital.
Office—728 Gar¬
den St., Carlstadt, N. J. Underwriter—Batkin & Co., New
York, N. Y.
c

Price—$1.50

per

Tennessee Life & Service Insurance Co.
20

June

(8/1)

(letter of notification)

9,200 shares of common
(par $5) to be offered for subscription by stock¬
holders.
Price—$30 per share.
Proceeds—To increase

Hall Avenue,

Underwriter—Mel-

Salt Lake City, Utah.
Co., same city.

Salt

States

City, Utah. Underwriter
Co., Tulsa, Okla.

Investment

Ucon

Lake

Western

—

Uranium

Corp., Salt Lake City, Utah
(letter of notification) 5,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining costs.
Office—406 Judge Build¬
ing, Salt Lake City, Utah. Underwriter—Empire Secu¬
rities Corp., Las Vegas, Nev.
U-Kan Uranium & Oil Co., Salt Lake City, Utah
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—For mining expenses.
Office — Judge Bldg., Salt Lake
City, Utah.
Underwriter — Northern Securities, Inc.,

Seattle, Wash.

July 19 filed 3,500,000 shares of common stock no par.
Price—$2 per share. Proceeds—For organization of two

if Texas Eastern Transmission Corp.
of common stock (par $7)
to be offered in exchange for shares of capital stock

balance to be used to engage

Eastern

Production

share of Transmission stock
duction stock. The offer is
at

least

Corp.

in

contingent

duction

will

thereafter

own

of Pro¬

the tender of
Company so that

upon

263,402 shares of Production

Transmission

the ratio of one

2.6 shares

for each

80%

or

more

of Pro¬

capital stock.

common

stock

(par 25 cents). Price—$1 per share. Proceeds—
For payment of accounts payable of operating company;

expansion and working capital.

Office—2514 McKinney
Underwriter—Ray Johnson & Co.,

Ave., Houston, Texas.

Inc., Houston.

mon

&

Uranium

Co., Denver, Colo.
5,960,000 shares of com¬
Price—Five cents per share.

(letter of notification)

stock

(par

Proceeds—For

one

cent).

mining

expenses.

National Bldg., Denver, Colo.
ter &

Co.,

same

Office

—

407

Denver

Underwriter—Floyd Ros¬

address.

Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
aerially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
Feb. 1, 1962 to Aug. 1, 1966. Price—To be supplied by
Proceds—To construct and operate a manu¬

facturing

plant near Orange, Tex., for the purpose of
manufacturing insulation
building
products.
Under¬

writer—None.

wholly-owned insurance compaies, to be named United
American Life Insurance Co. and Tourists Indemnity Co.;
and

C. F.

McDougal of Dallas, Tex., is Presi¬

dent.

shares

of

common

stock.

an

Price—At

additional
market.

500.000

Proceeds—

Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills).
Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes. Underwriter—None.
Uranium Prince Mining Co., Wallace, Ida.
April 18 (letter of notification) 1,750,000 shares of com¬
mon stock.
Price
10 cents per share.
Proceeds—For
mining operations. Address — Box 709, Wallace, Ida.

Underwriter—Wallace Brokerage Co., same city.

for

invested

Industries, Inc.

(8/2)

in

equipment

penses.

U.

S.

Savings bonds and the balance
and exploration and development e x-

Underwriter—None.

30

(letter

common

stock

Proceeds

—

State

St.,

of

Corp., Salt Lake City, Utah
notification) 30,000,000 shares of

par).
Price—One cent per share.
mining activities. Office — 1101 South

(no

For

Salt Lake

City, Utah.

Underwriter—Ander-

son-Hackett Investment Co., same city.
USeven

mon

Corp., Stockton, N. J.
1,000,000 shares of

July 11 filed 140,000 shares of class A common stock (par
$1), of which 75,000 shares are to be offered for account

Proceeds

of the

(par

one

cent).

Price—25

cents

per

_

com¬

share.

nium

company and

to 65,000 shares for account of
24 seling stockholders. Price—To be
supplied by amend¬
ment.
Proceds—For expansion program and general
corporate purposes. Office—Fort Atkinson, Wis. Under¬
up

writers—Kidder, Peabody & Co. and McCormick & Co.,
both

of

Chicago.

Thompson (H. I.) Fiber Glass Co.
July 8 (letter of notification) 4,470 shares
stock

(par $1). Price—$11

at

of

common

market

(estimated at $11
per share). Proceeds—To Harry I. Thompson, President.
Office—1733 Cordova St, Los Angeles, Calif.
Under¬

writer— Shearson, Hammill & Co., New York, N. Y.; and

xirst California

Co., Inc., San Francisco, Calif.




capital.

—

For

Corp.

300,000 shqres of com¬
Proceeds—To
manufacture, process, rebulid and market television pic¬
tures tubes, etc.
Underwriter — Zone Investments Co.,

May

notification)

(letter of

13

Price—At par

mon

stock.

Fort

Worth, Texas.

($1 per share).

Salt Lake City, Utah
3,000,000 shares of com¬
(par one cent). Price — 10 cents per share.
For mining expenses. Underwriter — I. J.

Vanura Uranium, Inc.,
June

16

(letter of notification)

stock

mon

Proceeds

—

York. Name Change—The company
as San Miguel Uranium, Inc.

Schenin & Co., New
was

formerly known

Drilling Co., Monticello, Utah
notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining operations.
Underwriter—Skyline Secu¬
Uranium

&

June 20 (letter of

rities

Inc., Denver, Colo.
Corp., Moab, Utah

(letter of notification) 10,000,000 shares of
tal stock. Price—At par (three cents per share).
10

capi¬

Pro¬
Underwriter—Moab Bro¬
kerage Co. and National Securities, Inc., 368 South State
St., Salt Lake City, Utah.

ceeds—For

mining expenses.

Warwick

Associates,

Hotel

New York

$4,250,000 of participations in
in Associates in minimum amount

22 filed

interest

partnership
of

$10,000.

Warwick
Hotel, Philadelphia, Pa., and related expenses. Under¬
Proceeds

—

To

part of purchase price of

pay

writer—None.

Lowell, Wash.
(par $5,000).
Proceeds—To purchase plywood mill of Walton Plywood
Co., Inc., etc. Underwriter—Albert Walter Braedt.
Welch Industries, Inc., Houston, Texas
*
June 23, letter of notification)) 150,000 shares of common
stock (par 50 cents).
Price—$2 per share. Proceeds—
For erection of plant, machinery and working capital.
Office—427 Lovett Blvd., Houston, Tex.
UnderwriterWashington Plywood Co., Inc.,
13 filed

June

Warren

shares of common stock

296

Clark &

Co., same city.

Western Nebraska Oil & Uranium

Co., Inc.

(8/8-12)

April 4 (letter of notification) 200,000 shares of common
(par 10 cents). Price—$1.50 per share. Proceeds—
For exploration
and development costs and working
capital. Office—924 Broadway, Denver, Colo. Under¬
writer—Israel & Co., New York.
stock

•

Western

Union

Telegraph Co.

shares of common stock (par
being offered for subscription by stockholders of
record July 22 on the basis of one new share for each
five shares held; rights to expire on Aug. 8, 1955, Price
—$20 per share. Proceeds — For construction urogram.
Underwriters
Kuhn, Loeb & Co.; Lehman Brothers;
Clark, Dodge & Co.; and Salomon Bros. & Hutzler, all
filed

30

1,036,052

$2.50)

—

of

New

York

City.

Wet Mountain

Mining, Inc.

(letter of notification) 6,000,000 shares of com¬
(par one cent).
Price—Five cents per share.
Proceeds
For mining activities.
Office — 105y2 East
Pikes Peak, Colorado
Springs, Colo.
Underwriter —
Hicks, Newton & Co., Inc., Denver, Colo.

June 29

stock

mon

White

Horse

Uranium, Inc., Salt Lake City, Utah

(letter of notification) 2,900,000 shares of capital
stock (par 2lk cents).
Price—10 cents per share. Pro¬
ceeds—For mining expenses.
Office—1030 South Sixth

June 9

St.,

Salt

Lake

City, Utah.
Colo.

Underwriter—J.

W.

Hicks & Co., Inc., Denver,

Wicker-Baldwin

Uranium Mining Co.

May 26 (letter of notification) 900,000 shares of common
stock.
Price—At par (25 cents per share).
Proceeds—
For

mining expenses. Office—616 Sixth St., Rapid City,
Underwriter—Driscoll-Hanson, Inc., same city.

S. D.

(letter of notification)

stock

Inc., Vale, Ore.

fice—Lytle Building, Vale, Ore. Underwriter—Hansen
Uranium Brokerage, Salt Lak^e City, Utah.

West

Uranium Technicians

June

same

—

Uranium Properties, Ltd., Virginia City, Nev.
June 13 filed $600,000 of Grubstake Loans to be offered
in amounts of $25 or multiple thereof.
Proceeds—75%
be

LaFortune,

(letter of notification) 10,000.000 shares of com¬
mon
stock (par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬

June

I

For investment.

June 28

Thomas

Underwriter—None.

fields.

related

in mortgage loan business

if United Funds Canada, Ltd.
July 21 filed (by amendment)

to

Jah.

amendment.

Ga.

—

Texas Western Oil
15

Investment Co., Atlanta,

Universal Service Corp.,

Texas Toy Co., Houston, Texas
July 8 (letter of notification) 300,000 shares of

June

United American

Uranium & Diata,

Utore

June

June 2

.

Underwriter—Lester L.

Nev.

July 8

June

Jay Uranium Co., Salt Lake City, Utah
May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—32 Exchange
Two

working capital for agency expansion. Office — 14i»9
Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse C.
Bowling, 16 M Street, Bedford, Ind.

of Texas

Vegas,
city.

Wabash Uranium

stock

July 25 filed 275,908 shares

(letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per share).
Proceeds—
For
mining expenses.
Office—210 N. Third St., Las

vin G. Flegal &

Place,

Uranium Co., Las Vegas, Nev.

Utah Southern
June 6

Vas

Corp.

April 1 (letter of notification) 2,000,000 shares of com¬
mon stock
(par 2% cents). Price—10 cents per share.
Proceeds
For mining operations.
Office — 130 Social
—

TelAutograph Corp., Los Angeles, Calif.
July 1 filed $2,396,500 of 4%% convertible subordinated
debentures due July 15, 1965, being offered for subscrip¬
tion by common stockholders of record July 27, 1955 on
the basis of $500 of debentures for each 50 shares of
•

& Co. and Merrill Lynch, Pierce, Fenner &
(jointly); Blyth & Co., Inc.; The First Boston
be received on Sept. 13.

Vactron

Ariz.

July 6 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For expenses incident to oil and gas activities. Office—
15 Washington St., Tucson, Ariz.
Underwriter—Frank
L. Edenfield & Co., Miami, Fla.

and manufacturing.
Las

bidding. Probable bidders: Lehman Brothers; Union Se¬
curities Corp. and Smith, Barney & Co. (jointly); Kidder,

Corp. Bids—To

filed 2,000,000 shares of common stock (par 20
Price—To be supplied by amendment (expected
share). Proceeds—To acquire part of prop¬
erties presently subject to option in favor of company,
and for expenses incident to mining and oil activies.
Office
Dallas, Tex. Underwriter — Garrett Brothers,

July

be determined by competitive

Underwriter—To

gram.

Beane

Uranium

Trans-National

cents).

Vegas, Nev.

if Utah Power & Light Co. (9/13)
July 26 filed 177,500 shares of common stock (no par).
Proceeds—To repay bank loans and for construction pro¬

Peabody

Denver, Colo.

stock

mon

Financial Chronicle... Thursday, July 28, 1955

The Commercial and

(404)

36

equipment, drilling costs, and working

Business—To explore, develop and operate ura¬

mining properties. Address—P. O. Box 99, Stock¬
ton, N. J. Underwriter—None.

if Utah Power & Light Co. (9/13)
July 26 filed $15,000,000 of first mortgage bonds due
1985, Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

Inc.; Union Securities Corp. and Smith, Barney & Co.
(jointly); Kidder, Peabody & Co.; Salomon Bros. &
Hutzler; White, Weld & Co. and Stone & Webster Se¬
curities Corp, (jointly); The First Boston Corp.; Lehman
Brothers and Bear, Stearns & Co. (jointly). Bids—To be
received Sept. 13.

Wizard

Boats, Inc., Costa Mesa, Calif.
of notification) 120.000 shares of common
Price—$2 per share. Proceeds—For ex¬

June 30 (letter
stock

(par $1).

pansion and working capital. Underwriter—Neary, Purcell & Co., Los Angeles, Calif.
Wyco Uranium, Inc., Salt Lake City, Utah

April 7
mon

(letter of notification) 2,900,000 shares of com¬
(par one cent). Price — 10 cents per share.

stock

Proceeds—For mining expenses.

Salt Lake City,

Utah.

Wyoming Uranium

Office—429 Ness Bldg.,

Underwriter

—

Rocky Mountain

Corp., Salt Lake City, Utah

(letter of notification) 833,333 shares of com¬
(par one cent). Price—3M> cents per share.
Proceeds—For mining expenses. Office—522 Felt Bldg.,
April 22
mon

Salt

stock

Lake .City,

Utah.

Underwriter—James E. Reed &

Co., Salt Lake City, Utah; and Coombs &

ington, D. C.

Co., of Wash¬

Number 5450

Volume 182

...

The Commercial and Financial Chronicle

Probable

York Oil & Uranium Co.

(letter of notification) 10,000,000 shares of capi¬
tal stock. Price—At par (two cents per share). Proceeds
—For mining and oil activities.
Address—P. O. Box

June 3

348, Newcastle, Wyo. Underwriter—Empire
Corp., Salt Lake City, Utah.

Securities

Stuart

Co.

&

Inc.;

Morgan

Consolidated Uranium Mines,

Inc.

July 23, 1954, stockholders authorized issuance and sale
of not to exceed $6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines of

June

Stockholders will vote

Aug. 9 on increasing the authorized common stock from
1,200,000 shares (1,117,650 shares outstanding) to 1,600,000 shares.
Proceeds—For construction of a new $21,-

000,000 rayon staple fiber plant. Underwriter—Harriman
Ripley & Co. Inc., New York. Offering—Expected some¬
part of August. Registration—To
be made shortly with SEC.
J. i 'i

time during the latter

debentures

proportion to his holdings

in

of stock

(probably on the basis of $100 of debentures for each
eight share of stock held). Underwriter—None. Offer¬
ing—Probably in September or October.
Arkansas

& Light Co.
(10/25)
reported company plans to issue and sell
about 80,000 shares of cumulative preferred stock (par
$100). Proceeds—To repay bank loans and for new con¬
struction. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Lehman Brothers; Blyth
& Co., Inc. and Smith, Barney & Co. (jointly); Equitable

May 27 it

Power

was

Securities

Corp.

and

White, Weld & Co.

UnionjSecurities Corp.

(jointly);

Bids—Expected to be received

on

Oct. 25.

13

future of

—Van

it

was reported
company plans sale in near
$2,000,000 convertible debentures. Underwriter

Continental Can Co., Inc.

New York.

National

Denver

Bank, Denver, Colo.
that company plans to offer
to its stockholders the right to subscribe for 50,000 addi¬
tional shares of capital stock (par $10) on the basis of
June 30 it

one new

was

announced

share for each four shares held.

Price—$30

per

share.

Proceeds—To increase capital and surplus. Meet¬
ing—Stockholders to vote July 28 on approving financ¬

ing and 25% stock dividend.

Edison

Detroit

May
about

Co.

stockholders

2

stock.

Blackhawk Fire & Casualty Insurance Co.
April 5 it was reported company plans to issue and sell
200,000 shares of common stock. Price—Expected at $5
per share. Proceeds—To acquire Blackhawk Mutual In¬
surance
Co., Rockford, 111.
Underwriter — Arthur M.
Krensky & Co., Inc., Chicago, 111.
Bliss (E. W.) Co.
April 26 stockholders increased the authorized common
stock (par $1) from 1,000,000 shares to 1,500,000 shares.
tUnderwriter—Previous financing was handled by Allen
& Co., New York. -

Camden Trust Co.f Camden/
29 it was announced Bank

June

N. J.
its

plans to offer to

stockholders the right to subscribe for 72,500 additional
shares of capital stock (par

$5), with

13-day standby.

a

Underwriter—Price & Co., Inc., Camden, N. J. Meeting
—Stockholders on July 29 will vote on approving financ¬

ing and merger with Bank of Oaklyn National Bank.
Cavendish

April
sale

Mines Corp.

was announced company
debenture issue of several

it

19
of

Uranium

a

Proceeds—For

a

plans issue
million

$60,000,000

of

without

proposal

a

convertible

offer of convertible debentures

authorizing

debentures.

was

made to

Previous
stockhold¬

underwriting.

and

dollars.

concentrating mill, mining equipment

development. Underwriter—James
Anthony Securities Corp., New York.
31, W. F. Wyman, President, stated that company

plans to issue and sell some additional common stock,
par $10 (probably to stockholders) in the latter part of
1955. Proceeds—For construction

Underwriter
—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr, Inc.
(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.
and Kidder, Peabody & Co. (jointly). Meeting—Stock¬
holders on May 11 voted to increase the authorized
stock

program.

from

3,250,000 to 3,500,000 shares.' Of¬
fering—Probably in September.
common

+

Chicago, Milwaukee, St. Paul & Pacific RR.

July 13 stockholders approved the creation of an issue
©f $60,000,000 5% income debentures, series A, to be
offered

in exchange for 600,000 shares of outstanding
preferred stock, series A, on a par for par basis; offer
to commence Aug. 1 and will run through
Aug. 31.
Dealer-Manager — Merrill Lynch, Pierce, Fenner &

Beane, New York.

■jAr-Columbia Gas, System, Inc.

July

25 it

Sept. 21.

Registration—Expected

on

Aug. 25.

will

cost

about

$125,000,0000 in 1955. Underwriters—
For. last equity financing were The First Boston Corp.
and Glore, Forgan & Co.
Consolidated Edison Co. of New York, Inc.
June
from

14

it

was

announced

company

$40,000,000 to $50,000,000 bonds

the current year.

expects

to

sell

time during
Proceeds—For construction program.
some

Underwriter—To be determined by competitive bidding.




International Oil & Metals

W*

Corp., Seattle, WasKk

was reported company may do some financing
time in the future. William D. Bost of Whitcomb

&

Co., New York, is Chairman of the Board.

natural

resources
companies. An offering of stock isplanned in the Fall of this year. Investment AdviserCapital Research & Management Co., Los Angeles, Calif.
Underwriter—Kidder,. Peabody & Co., New York.
r

Isthmus Sulphur Co.
March 30 it

(Texas)

reported early registration is planned
undertermined number of (common shares. Under¬

&

an

was

Co., New York, and Garrett
Co., Dallas, Tex.; and others.

Kaiser Aluminum & Chemical Corp.
July 11 it was reported that company is understood tobe contemplating the sale to the public of 700,000 shares
of sinking fund preferred stock this Fall and private
debt financing of about $40,000,000.
Stockholders will
vote Aug. 12 on approving an increase in the authorized
preferred stock from 700,000 to 1,500,000 shares. Pro¬
ceeds—For expansion program and working capital.
Underwriters—The First Boston Corp., New York; and
Dean Witter & Co., San Francisco, Calif.

Keystone Wholesale Hardware Co., Atlanta, Ga.
was stated that the company plans at a later
to offer additional shares for sale nationally. An.
offering of 16,666 shares of common stock was recently
made to residents of Georgia only at $3 per share.
Office—517 Stephens St., S.W., Atlanta, Ga.

date

if Kwikset Lock, Inc., Anaheim, Calif.
July 20 it was reported a secondary offering of about
20,000 shares of common stock is expected momentarily.
Price—Expected around $16.75 per share. Underwriter
—Rodman &

Lithium
June

was

First National Bank of Arizona

^

,

July 1 stockholders of record June 29 were offered the
right to subscribe on or before July 29 for 160,000 shares
(par $10) at the rate of one new share
for eaeh three shares held.
Price—$30 per share. Pro¬
ceeds—To increase capital and surplus.
of capital stock

Florida Powei* Corp.
was announced company may issue and sell
between $10,000,000 and $12,000,000 of first mortgage
bonds. Underwriters—To be determined by competitive

Renshaw, Chicago, 111.

Developments, Inc., Cleveland, Ohio

9

it was announced that company plans soon t©»
registration statement with the SEC covering a
proposed issue of 600,000 shares of common stock. Pro¬
ceeds—For general corporate purposes.
Underwriter—
George A. Searight, New York, will head group.

file

a

Long Island Lighting Co.
April 23 it was announced company plans to sell am
of $15,000,000 first mortgage bonds,
series H,
due 1985. Proceeds—For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders—Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp. and Blyth & Co., Inc. (jointly); W. C. Langley
& Co.; Smith, Barney & Co.; Baxter, Williams & Co*.
Offering—Expected late in 1955.
issue

April 14 it

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly); Glore. Forgan & Co.: and The First
Boston Corp. Offering—Expected late in 1955 or early
1956.
Ford

Motor

Co., Detroit, Mich.
reported that following a probable 10stock split, an offering of approximately 4,000,006

March 15 it

shares will be made to the public. Price—Expected
to be around $60 per share.
Proceeds — To the Ford
Foundation.
Offering—Probably not until "latter pari
of

1955, if then."

the authorized

Gulf States Utilities Co.

16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market conditions
permit. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers;
Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salomon Bros.
& Hutzler and Union Securities Corp. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.
Hammermill Paper Co.

May 10 stockholders approved a proposal on increasing
the debt authority to $20,000,000.
Underwriter—A. G.
Becker & Co. (Inc.), Chicago, 111.
(Walter E.)

common

stock

a proposal to increase
(par $1.25) from 1,000,000

shares to 2,000,000 shares (there are 804,063 shares out¬
standing). It was reported previously that the companyproposed to raise approximately $1,500,000 through thei
sale of 150,000 shares. However, no immediate financing
is planned. Underwriter—Probably Blair & Co. Incor¬

porated, New York.
Maine Central RR.

14, E. Spencer Miller, President, said company ha&

Feb.
not

given

first

the idea of refunding the $17,000,000 5%%
and collateral trust bonds due 1978-

up

mortgage

for new bonds may include Halsey„
Kidder, Peabody & Co.; W. C. Langley
& Co.; Coffin & Burr, Inc.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane; Blyth & Co.*
Inc.; Glore, Forgan & Co.
Probable

bidders

Stuart & Co. Inc.;

May

& Co.

July 18 it was reported that the company maybe con¬
sidering some new financing. Underwriter—F. Eberstadt
& Co. Inc., New York.
Housatonic Public Service Corp. (9/5)
20 it was reported company plans to

June

issue and
stock (par $15)
Sept. 5 on the basis
of one new share for each 25 shares held; rights to
expire on Sept. 26. Price—$22 per share.
Proceeds—
For construction program. Underwriter—None. Unsub¬
scribed shares to be sold to highest bidder.

additional shares of

common

Lucky Stores, Inc.
April 20 stockholders approved

was

new

to

Jan. 24, Willis Gale, Chairman, announced it should be
Fall before the company undertakes its next financing.
Proceeds—-For new construction, which, it is estimated,

of

*

sell 14,817

Commonwealth Edison Co.

anticipation

reported company plans to issue and sell
additional first mortgage bonds. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Inccorporated. Offering—Expected this Fall.

(9/21)

reported company plans to issue and sell
$40,000,000 of debentures due 1980. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders—Halsey, Stuart
.& Co. Inc.; Morgan Stanley & Co. Bids — Planned for

shares in

some

Heller

was

3,000,000

Essex County Electric Co.

July 18 it

for-1

Central Maine Power Co.

shares to

1,000,000

and for underground

Dec.

726 Jackson Place, N.

Jan. 27 it

-

approved

expansion of the company's activities. Underwriter—
Previous financing handled by Greene & Co., New York.

cumulative

$5

—

writers—L. D. Sherman &

proposal to increase
the authorized common stock
(par $1) from 500,000
shares to 1,000,000 shares to provide for future financing
and expansion. Underwriter—Hirsch & Co., New York.
a

preferred

outstanding

Office

Business—Industrial merchant bank¬

ers.

of

Daitch Crystal Dairies, Inc.
April 28 stockholders approved

Doman Helicopters, Inc.
Feb. 17 Donald S. B. Waters, President, announced stock¬
holders voted to increase authorized capital stock from

of

Washington, D. C.

to

April 18, preferred stockholders approved creation of
not to exceed an additional $25,000,000 of debentures or
other indebtedness maturing later than one year after
the date thereof.
The company has no present plans
for making any additional borrowings. Underwriters—
Goldman, Sachs & Co. and Lehman Brothers, both of

ers

shares

tumn of this year.

International Resources Fund, Inc.
July 20 it was announced this company will be formed
specialize in worldwide investment in the field of

Alstyne, Noel & Co., New York.

Bangor & Aroostook RR.
July 14 it was announced company has applied to the
ICC for exemption from competitive bidding of an issue
©f $4,000,000 income debentures. Proceeds — To redeem
38,280

International Bank, Washington, D. C.
April 25 it was announced company, in addition to plac-..
ing privately an issue of $500,000 convertible deben¬
tures, will • offer additional convertible debentures to
shareholders, the latter probably sometime in the Au¬

some

.

Telegraph Co.
April 20 stockholders approved a new issue of not to
exceed $650,000,000 convertible debentures.
When is¬
sued, each stockholder would receive ^rights to purchase
American Telephone &

the

37

May 23 it

Corp.

stockholders.

Halsey,

Continental Aviation & Engineering Co.

July 20, John E. Bassill, President, announces that the
corporation proposes to raise approximately $11,000,000
through the sale of additional common stock (par $5)
to present common

bidders:

Stanley & Co.; The First Boston Corp.

America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co.,
Jersey, City, N. J.

Prospective Offerings
American Enka

(405)

common

stockholders of record

Hupp Corp.
May 13 stockholders approved a proposal increasing the
authorized capital stock from 3,000,000 to 4,200,000 shares
(200,000 of such increased shares shall be (new) serial
preferred stock, $50 par value and 1,000,000 shares shall
be common stock, $1 par valup); also waiving of pre¬
emptive rights to such increased shares.

Majestic Auto Club, Inc.
Aug. 25 it was announced company plans to offer 500,-*
000 shares (par five cents) to the motorist and general

public shortly after completion of the current offering
of

100,000 shares to service station owners and operator*.
Office—Room 717, 141 Broadway. Npw York 6, N. Y.

if Mississippi Valley Gas Co. (8/19)
July 25 it was reported early registration is expected
of about $2,000,000 of convertible debentures which are*
to be offered for subscription by stockholders about Aug.
19

to

Sept. 8.

Private sale of about $12,000,000 of first

mortgage bonds also expected. Underwriter—Equitable
Securities Corp., Nashville, Tenn.
•

Mountain States Telephone & Telegraph
Co.

(10/1)

July 19 directors authorized an offering to stockholders
of 486,881 additional shares of capital stock on basis of
one new share for each five shares held as of Sept. 27;

rights to expire on Oct. 28. Warrants will be mailed on
Oct. 1. Price—At par ($100 per share). Control—Ameri¬
Telephone & Telegraph Co. owns about 86.7% of
presently outstanding common stock. Underwriter

can

the
—•-

None.

Murphy

April

(G. C.)

Co., McKeesport, Pa.

12 stockholders approved a proposal to increase
limit of indebtedness from $3,000,000 to

the authorized

$20,000,000.

Proceeds—For expansion program. Under¬
Lynch, Pierce, Fenner &c Beane, New

writer—Merrill

York, handled preferred stock

financing in 1942.
Continued

on

page

3S

The Commercial and Financial Chronicle

•

Continued, from page

37

,

& Watch Co'
announced that in connection with its pro¬
posed plan of recapitalization to be voted upon July 26,
the company plans to raise not less than $300,000 of new
Haven Clock

New

Underwriter—Probably Reynolds & Co., New

capital.
York.

Public Service Inc.
announced that company plans this year
to issue some first mortgage bonds due 1985.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Orleans

4 it was

The First Boston Corp.;
Union Securities Corp.
(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and Stone & Webster

Co.; Blair & Co. Incorporated;
Equitable Securities Corp. and

(jointly); and Lehman Brothers.

Securities Corp.

Electric & Gas Corp.

State

York

New

(10/19)

July 8 it was announced company plans to issue and
sell $25,000,000 of first mortgage bonds due 1985. Pro¬
repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.. Inc.; Kidder,
ceeds—To

Ripley & Co. Inc.; The First
Corp. and Glore, Forgan & Co. (jointly); Blyth
& Co., Inc. and Smith, Barney & Co; (jointly);
Bids—
Expected to be received on Oct. 19.
Peabody & Co.; Harriman
Boston

Keith S. McHugh, President, announced that
the company will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion and improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For and bonds,
to
be
determined by competitive bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
17,

Northern

Illinois Gas Co.

June 14, Marvin

Chandler, President, announced that the
company plans to spend $60,000,000 on new construction
through 1958, and that about $25,000,000 would be raised
through the sale of bonds in the period. Underwriters—
The First Boston Corp., Halsey, Stuart & Co. Inc. and
Glore, Forgan & Co.
Northern

March

29

ments

for

it

Power Co.

States
was

announced

•

new

announced company plans to

Pacific Telephone

June

it

21

was

termined

announced

company

bidding.

competitive

by

of

been

with

approximate $31,000,000.

Present

plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint¬
ly); Smith, Barney & Co.; Lehman Brothers and Riter
& Co. (jointly); Glore, Forgan & Co.
Nuclear-Electronics
June

Corp.

announced that it is planned, following
into company of Olympic Radio &
Television, Inc., and Victoreen Instrument Co., to issue
and sell $2,500,000 of debentures.
Underwriters—Van
Alstyne, Noel & Co. and Barrett Herrick & Co., Inc.,
both of New York. Meeting — Stockholders to vote on
merger in August, 1955.

28, it

proposed

was

merger

bidders:

Probable

Halsev, Stuart & Co. Inc.; Morgan Stanley & Co.;
White, Weld & Co., Lehman Brothers and Union Secu¬
rities
Corp.
(jointly).
Registration—Planned for the
latter part of July. Bids—Expected to be opened Aug. 23.
Pennsylvania Electric Co.
i
Feb. 15 it was reported company plans to issue and sell
later this year $9,300,000 of first mortgage bonds.
Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding,
,

probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co.; Kidder, Peaoody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Inc.

Ohio Power Co.

June 20 it

(9/20)

reported company plans to issue and sell
60,000 shares of cumulative preferred stock (par $100).
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb
& Co.; Harriman Ripley & Co., Inc. and Stone & Web¬
ster Securities Corp. (jointly); The First Boston Corp.;
Union Securities Corp. and Salomon Bros. & Hutzler
(jointly).
Registration—Planned for Aug. 17. Bids—
Expected to be received up to 11 a.m. (EDT) on Sept. 20.
was

was

Co. Inc.

Pennsylvania Power & Light Co.
April 19, Charles E. Oakes, President, announced that
company plans this year to issue and sell $15,000,000 of
first mortgage bonds and use the proceeds for its con¬
struction

Previous

bond

financing was ar-ranged privately through Drexel & Co. and The First
Boston Corp.
program.

July 11 it

Southern

Dec.

(10/4)

Ohio Power Co.

(9/20)

July 18 it was reported company now plans to issue and
sell $17,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To retire bank loans and for construction program.
Underwriter—To
be determined
by competitive bid¬

Stuart & Co.

Inc.; Kuhn, Loeb & Co. and Lehman Broth¬
ers
(jointly), Morgan Stanley & Co. and Drexel & Co..
(jointly); The First Boston Corp. Bids—Expected to be
received up to 11 a.m. (EST) on Oct. 4.
Public

Service

of several million dollars."

The company has scheduled
large-scale expansion program, involving $75,000,000
in order to keep abreast of estimated load growth over
a

five

next

Webster

years.

Securities

April 9 stockholders approved the possible Issuance oi
convertible

debenture

28

it

was

Co.

reported

near

future.

burse

the

Proceeds—To retire

bank

loans and

reim¬

company's treasury for construction expendi¬

tures.

Pacific

Power

&

Light Co.

(9/27)
plans to issue and sell

July 6 it was reported company
$10,000,000 of first mortgage bonds due 1985. Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders—Halsey, Stuart & Co.
Inc.; Union Securi¬
ties Corp. and Kidder, Peabody & Co.,
(jointly); Leh¬
man
Brothers, Bear, Stearns & Co. and Salomon Bros.
& Hutzler
(jointly); Blyth & Co., Inc. and White, Weld
& Co.
(jointly). Bids—Tentatively planned to be re¬
ceived

up

Expected

to
on

noon
or

(EDT)

on

Sept. 27.

Registration-

about Aug. 24.

Pacific Power & Light Co.
(10/5)
July 5 it was reported company plans to issue and sell
30,000 shares of cumulative preferred stock
(par $100).
Underwriter—Expected to be local dealers. Registration
—Expected on Aug. 24.




This

would

not

time within the next 12 months.

any

exceed

of the

Under¬

June 7 stockholders approved a proposal increasing the
authorized indebtedness of the company to $125,000,000.
Funded debt at Dec. 31, 1954 totaled
$84,077,350. If, in

the future,

the directors should deem it in the best in¬
terests of the company to issue bonds, the board will
the

the

of

bonds.

Application

Commission

has

for

ex¬

(11/9)

announced

in

additional stock of

Underwriter—To

be

issue

and

Probable

the

terms

bidders:

and

Halsey,

Inc.; Morgan Stanley & Co.

it Rochester Telephone Corp.
company advised New York P. S. Commission
it plans to make an offering of 195,312 additional

subsidiary companies.;

determined

by competitive bid¬
ding. Probable bidders: The First Boston Corp., Laden-:
burg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and
Wertheim & Co.
(jointly); Blyth & Co., Inc., Bear,
Stearns & Co. and Dean

Witter

& Co.

(jointly); Union

Securities Corp. and Equitable Securities Corp(jointly);
Lehman Brothers; Morgan Stanley & Co.;

Kidder, Pea¬
body & Co., and Merrill Lynch, Pierce, Fenner & Bean®.Bids—Tentatively scheduled for Nov. 9. Kefir:rattan—
Southland, Frozen

April 18 it
000

of

was

v

12.

Foods,

•

Inc.

reported company plans to offer $600,-

debentures

6%

60.000

smd

shares

of

common-

Office—160

stock.

Broadway, New York City. Under¬
writer—Eisele & King, Libaire, Stdtit &
Co., New York.
Offering—I£xp£cted in* July.",
* ~
A

-Sterling Precision Instrument Corp.

-

*/

June 6 the stockholders voted-to approve an authorized'
issue of 500,000 shares of first preferred stock (par
$10),
of which 300,000 shares (to be convertible into

common)'

are

to be publicly offered.

tal.

Proceeds—For working capi¬

"

Office—Buffalo, N. Y.

*

.

'

..

.

★ Talcott (James), Inc. (8/22-26)
July 20 directors authorized a proposed public offering
of 100,000 shares of common stock. Proceeds—For work¬
ing capital. Underwriter—F. EbertsacR & Co., Inc., New
early part of next week.

Texas Gas Transmission Co.

March

it

15

reported company plans

was

to sell addi¬

tional first mortgage bonds later to finance cost of

new

construction, which is estimated at about S17.500,000w
Underwriter—Dillon, Read & Co. Inc., New York.
• Union Bank & Trust
Co., Los Angeles, Calif.
July 26 it was announced stockholders of record July 22
1955, have been given the right to subscribe on or before
Aug. 15 for 95,000 additional shares of capital stock
(par $10) on the basis of one new share for each five

shares held.
and

Price—$33 per share. Proceeds—For capital

surplus.

Underwriter—Blyth & Co., Inc., Los An¬

geles, Calif.
Union
Jan.

Co.

Eleclric

it

24

of

Missouri

reported company expects to sell about
$30,000,000 30-year first mortgage bonds late in 1955.
Proceeds—To repay bank loans and for new construc¬
was

tion. Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc. and Union Securities Corp. (jointly);
—

The

First

Boston

Corp.; Lehman Brothers and Bear,
(jointly); White. WaIH k Co. anrf shield®
(jointly).
Bids — Expected to be received in

Stearns & Co.
&

Co.

November

or

Brothers

1955.

Co.,

Cambridge, Mass.
19 stockholders approved a plan to refinance the
outstanding 40,665 shares of $2.50 cumulative preferred
stock (par $50).
It is proposed to issue not more than
July

$2,500,000 of notes, bonds
whole

or

less

in

than

not

Reading Co.

amount

U.

(par $5). Proceeds—To repay bank loans and for"

investment

in

writer—Probably Smith, Barney & Co., New York.

or

debentures which

part convertible

$50

per

ferred stock, to pay

share.

off

a

into

common

Proceeds—To

may

be

stock

at

retire

pre¬

$225,000 loan and for working

"./

capital.

Westpan Hydrocarbon Co.
March 2 it

announced Sinclair Oil

was

shares

of

Westpan stock

Coim, has agreed

investmjl^nsf

with the SEC to divest itself of its

384,380
Underwriter—Union

(52.8%).

Securities

Corp., New York, underwrote recent sale of
Sinclair's holdings of Colorado Interstate Gas Co.
White,
Weld & Co., New York, may be included
among the
bidders.

July 25

Worcester

that

shares of
of

plans to issue and
$1,000,000 of first mortgage bonds and $300,000 of
additional common stock (the latter to
stockholders) in
company

issue.

$50,000,000 and would be issued at the discretion
directors

P.

company plans to Issue and
public 500,000 additional shares ot common'

Warren

Pure Oil Co.

of

Ohio Water Service

Co.

was

the

to

stock

it

October

bonds.

the

March

Underwriters—Probably Stone &

Corp., The

First Boston Corp. and
Smith, Barney & Co. Halsey, Stuart & Co. Inc., is re¬
ported to head a group to bid approximately $25,000,000

Stuart & Co.

sell

Co.

Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction
purposes from outside sources—at least to the extent

conditions

*

Gas

stock (par $100)* "Underwriters—May be Morgan Stan-'
ley & Co., Drexel & Co. and Glore, Forgan & Co.

determine

bidders: Halsey, Stuart & Co. Inc.;
Ripley & Co. Inc. and Stone & Webster
Corp. (jointly); Kuhn, Loeb & Co.; Blyth
& Co., Inc.; Union Securities Corp. and Salomon Bros
& Hutzler (jointly); The First Boston Corp.
Registra¬
tion—Planned for Aug. 17.
Bids—Expected to be re¬
ceived up to 11 a.m. (EDT, on Sept. 20.

&

was

Securities

Probable

Electric

stated that company may issue and sell
late in September 250,000 shares of cumulative preferred

July 11 it

Harriman

ding.

California

York. " Registration—Expected

$35,000,000 of debentures. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,

a

30

sell

reported company plans to issue and sell

was

plans to issue and sell

bonds.

mortgage

Not expected until Oct

Electric Co.
reported company proposes issuance and
sale of $7,500,000 of preferred stock later this year. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston Corp.; Smith, Barney & Co.; Harriman Ripley &

of

first

company

Biyth & Co., inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly); Lehman Brothers.

Pennsylvania

the

filed

Gas Co.

reported

$40,000,000

.

will

1955

was

from competitive bidding.
Bids received on
last sale of bonds were from Halsey, Stuart & Co.
Inc.;

plans to issue and

Public Service Electric & Gas Co.

capital require*'

California

Southern

Feb. 28 it

emption

(8/23)

& Telegraph Co.

$67,000,000 of 36-year debentures due 1991. Proceeds
construction program.
Underwriter—To be de¬

sell

Corp. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; The First Boston Corp.;,
White, Weld & Co. and Shields & Co. (jointly). Offer¬
ing—Expected in September.

—For

(Minn.)

that

was

Underwriter—None.

Feb. 21 it

York Telephone Co.

New

Jan.

Telephone & Telegraph Co.

offer to its
preferred and common stockholders in September 1,339,196 additional shares of common stock on a l-for-6
basis. (American Telephone & Telegraph Co., the parent,
owns
a
majority of the common and preferred stocks
presently outstanding.) Price—At par ($100 per share).
Proceeds—To repay bank loans and for new construc¬
tion.

New

Feb

Pacific

June 21 it

June 7 it was

/

Thursday, July 28, 1955

...

(406)

38

be

one

common

new

its stockholders

share for each four

determined

gram.

stock to

later.

Proceeds

on

shares held.

—

the basis

Price—To

For construction

of

Underwriter—The First Boston Corp., New York.

tions

and

sey,

improvements.

Stuart &

San Diego

be

deter¬

Probable bidders: Hal¬

Co. Inc.; The First Boston

Securities Corp.; Blyth &
& Co. Inc. (jointly).

E.

Underwriter—To

by competitive bidding.

Corp.; Union
Co., Inc. and Harriman Ripley

Sherwin, President, recently reported that the
company will need a minimum of $11,000,000 new capital
to help finance its current $20,000,000 construction pro¬
gram. The financing will probably take the form of a
bond issue or preferred stock.
Underwriters—(1) For
preferred stock, Blyth & Co., Inc., San Francisco, Calif.
(2) For bonds, to be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
&

Hutzler;

Blyth

the

& Co.,

Inc.; Union Securities

County Electric Co.
proposes

to

file

a

(10/18)
registration statement

SEC

$8,500,000

early in September with respect to sale
first mortgage bonds, series D, due 1985.

Proceeds—For

struction.

of

payment

bank

Underwriter—To

be

loans

and

determined

new

by

con¬

compe¬

titive

bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane, Salomdn
Bros. & Hutzler and Stroud

& Co., Inc. (jointly); Coffin
Burr, Inc.; Kidder, Peabody & Co., Blyth & Co., Inc.
White, Weld & Co. (jointly); Blair & Co. Incor¬
porated and Baxter, Williams & Co. (jointly); The First
Boston Corp. Bids—Tentatively scheduled to be received
&

ana

on

Oct. 18 at company's

Mass.

June

29

issuance
first

office, 441 Stuart St., Boston 16,

...

York

Gas & Electric Co.

D.

Bros.

company

with

pro¬

St. Louis-San Francisco Ry
(8/22)
May 10 stockholders approved an additional Issue of
up to $25,000,000 of first mortgage bonds, of which it
is planned to sell initially $19,500,000 principal amount"
to mature in 40-years.
Proceeds — For property addi¬

mined

The

County Gas Co., York, Pa.
it

was

and

mortgage

determined.

and

announced

sale later

company

this year

bonds, in

of

a

contemplates
new

the

series of its

aggregate amount not yet
for new construction
issue of $560,000 4%% first

an

Proceeds—To

pay

probably to refund an
mortgage bonds due 1978. Underwriter—May be deter¬
by competitive bidding.
Probable bidders: Hal¬

mined

Stuart & Co. Inc.; A. C. Allyn & Co. Inc.; White,
& Co. and Shields & Co.
(jointly).* It -is also
possible that issue may be placed privately.
sey,

Weld

i

Volume 182

-

Number 545(1... The Commercial and Financial Chtonicle
htonu

30

(407)

Minshall

produced by

vacuum

lar

Organ Go.

found

those

to

tubes simi¬

in

radio

Jackson Adds

and

Stc<k Offered at $3
A

•

public

shares of

offering

of

stock

common

of Minshall Organ Co.

The

100,000

(par $1)

of Brattle-

boro, Vt., is being made through
Baruch Brothers & Co., Inc., New
York City, at $3 per share on a
best-efforts basis.

net

proceeds from

a

called

also

the

inventor

of sound

system,

"Tone-Arama." This sound

system gives the listener the feel¬

ing that
gan is

the

music

from

the

of

the

with
31

Joins

than

electronic

&

Company,

Inc.,

Bona

ing

to

liquidate

debts,

the dssue,

of

V

-*■

1

pay

ex¬

for

and

re-

intro¬
that

organ

The

electronic
The

for

organs

instrument

home

is.-

use.

completely

electronic, containing

no

parts.

effects

All

comparable organ in the in¬

dustry.

Mass.

tones

and

moving
are

of

Street, members of the New York
and Boston Stock

Exchanges.

chere

will

of

ssue

DIVIDEND NOTICES

be

out

total

a

JOHN W. BRENNAN, Secretary & Treasurer

Phila.

Y.

A

2,

200th

Common

(85(f)
the

declared

of

The

1955,

1,

of

26,

uigust

Checks

will

Harry

be

in

cash

record

1955.

D"Tk

July

26,

October

1955

close

ito^holderS
l5
1955.

N- Y.

Brooklyn.

the

meeting

business

;

V

B.

ASHBY,

Secretary.

Pittsburgh

Board

ending

of

21,

0

A 'egular auarterly dividend of
r\ orty-f ve cen s $.45) per share on

he Common capital s'ock
icsued and

AMERICAN

&

FOREIGN

POWER

pub

TWO RECTOR STREET,
'

COMMON

NEW

a-

6,

YORK

the

o. the Company
outstanding m he hands or the
teen declared payab e Sep-

1955,

Directors

September

has

30,

declared

1955

for

DIVIDEND

o

holders of record

he

W. J. ROSE, Secre
.'u'v 27

Also

declared

1,

10,

of
62'ac
per
payable Septem¬
of
record
August

STOCK,

1955.

1955

shareholders

to

held

F.

CRONMILLER, JR.
President and Secretary

Vice

a/y

this

H

July 22, 1955

EATON

OHIO

DIVIDEND No. 137

COMPANY

July 22, 1955. the Board of
a

dividend of

cents (50cJ per share on the
shares of the Company,

common

payable August 25. 1955,
holders of record
business

at

to share¬
the close of

August 5, 1955.
K.G. HENGS'I. Secretary

JV. Y..

share has been de¬

of Allied Chemical &

September 2,

the

close

of

dividend

No.

of

148

dollar

one

seventy-five cents ($1.75)

main

open.

EXTRA

close of business

On

July 22, 1955, the Board of

Directors declared

Secretary

fifty

July 26, 1955.

a

dividend of

cents (50c) per share on the
shares of the Company,

common

South Africa

non-resident

and

ft. G. HEN GST
:

61

F. A. SCHECK, Secretary.

share

per

on

Southern

J. EGER, Secretary

A

Secretary

Ohio

Kenosha

dividend

cents

share

per

Company

record

An

close

the

at

business

of

Sep¬

share

September

at

record

of

1955,
the

(50(0

fifty

declared, payable

was

27,

of

A dividend of sevenly-five cents
share

2,596,400

on

way

of

ber 1, ot

on

the

per

on

31,

1955,

the fiscal

1954,

payable

to

stockholders

close of

business

on

J.

on

the

5'/?

cents per shore to

of

on

September 1, at 40 '/Bth cents per shore, to

shareholders of record Augusl

record

W.

5.

D. FORSTER,

JOHN

SUNRAY

the

at

MID-CONTINENT

1955.

MAHER, Secretary

TULSA, OKLAHOMA

SUNRAY BLDG.

business

G. GREENBURGH,
Treasurer.

dividend of fifteen

A

(15^)

cents

the

share

per

Common

clared
1955

||

of

Stock

this Corporation was

|:

de-

payable Sept. 15,

to

||
|
f|

Checks will be mailed.
CHARLES-L. NACE

I

TREASURER

Philadelphia, Pa.

|

July 22, 1955.

S3

2| Manufacturers of
||

I

HA Quarterly dividends

Tile

^

mtf

K

§
f|

TILING
COMPANY, INC.

||

COMMON STOCK DIVIDEND

ferred

Declared July 20, 1955

share

||

cigar

•.

cigar




%

|

15 cents per share

|3

Payable August 30, 1955

««

Record Date August

the

*|

a

on

$1.00

stock,
$4.00

a

share

1955
at

share

convertible

stock,
on

tember

business

1, 1955,

to

stockholders of record

on

the

AS

America's OLDEST Name hi Tile

fumnc

isSflUBKSKKHiS:

per

,

Preferred Stock,

4.75% Convertible Series

a

Preferred Stock,

4.50% Convertible Series

tember

close

12,

$1.18%
$1.12%
$0.35

Common Stock

October 1,

of business

Sep¬

Secretary
TEXAS

EASTERN

/tam

1955.
John H. Gage,

July 26, 1955

Share

de¬

to.stockholders of record

the

Sep¬

Preferred Stock, 5.50% First Preferred Series.. .$1.3714
Preferred Stock, 5.00% Series
.$1.25 .

$ 1.06

been

on

close of

Amount

Security

pre¬

have

at

August 1, 1955:

SHREVEPORT,

lis

Company has declared

following quarterly dividends, all payable

on

the $4.25 second pre¬

on

the

second

and

stock

July 20, 1955
The Board of Directors of the

stock,

the $3.50 cumulative preferred

clared, payable

16, 195-5

s^are

a

common

87V2<c

ferred

WEBSTER
The modern-mild

RAIIWAY, N. J.
Wall &

! ENCAUSTIC

S3

PHILLIES
America's No. 1

MERCK & CO.. INC.
floor

I AMERICAN

shareholders of

record Aug. 31, 1955.

Common andPreferred Dividend Notice

$

on

Treasurer

Secretary

15,

September 15, 1955.

Wis., Lackawanna,

iV. y., and London, Ont.

Septem¬

sharehold¬

Augusl 5, and the initial dividend
per cent Cumulative Convertible

period from May 16 to September 1, will be paid

September

August 15,
J.

3213/'6lh

of record

ended December

year

cent Cumula¬

Second Preferred Stock, Series of 1955, for the

surplus of net profits of the Com¬

for

per

for the period from

Rail¬

Company has today been declared out

the

regular

Common

Stock without par value of Southern

stockholders

to

close

(75c)

of

shares

o

the Common Slock, payable on

May 16 to September 1, will be paid on

ers

pany

dividend

on

The initial dividend

New York,'July 20, 1955.

of

1955.

extra

per

stockholders of

to

share

September 70 to shareholders of record August 5.

NOTICE

DIVIDEND

(50if)

fifty

July 15, declared

tive Preferred Stock, Series A,

declared, payable

was

September 27, 1955,
tember 15,

of

on

quarterly dividend (No 63) of thirty (30) cents

Broadway, New York 6, N. Y. '

quarterly

NOTICE

DIVIDEND
The directors,

per

July 20, 1055

cents

Manufacturing plants in
(five), Michigan (five),

I

tax

New York, N. Y„ July 27, 1955,

MIAMI COPPER COMPANY

holders of record at the close of

August 5, 1955.

shareholders

rate of 7.05 % will be deducted.
By Order of the board of Directors,

Railway

payable August 25,1955, to share¬
business

!

;Vice President & Treasurer

July 22, 1955

August 5, 1955.

on

GERARD

COMPANY

(DIVIDEND 138)

S. T. Crossland

shares

preferred stock payable September
1, 1955, to stockholders of record at the

re¬

business

American

the

CLEVELAND 10. OHIO

August 12, 1955.
W.C.KING,

August 5, 1955.

on

amount to approximately $2.79 per share,
-subject, however,-to any change which may
occur in the rate of exchange for South Africa
ftipds prior to August 30, 1955. Union of

and London, Ont.

EATON

of

1955

issued under the terms of the Deposit Agree¬
ment dated June 24, 1946. The dividend will

Company have declared quarterly

er

MANUFACTURING

Dye Cor¬

poration, payable September
9, 1955 to stockholders of

of business

The stock transfer books will re*"'

September 9, 1955 to

on

the Common Stock

on

stockholders of record at the close

at. the

The Directors pf International Harvest¬

Manufacturing plants in
Ohio( jive), Michigan (Jive),
Kenosha, Wis., Lackawanna,

Quarterly dividend No. 138 of

at

~

HARVESTER

fifty

cord

INTERNATIONAL

COMPANY
10

CLEVELAND

BALC00YFNi

Directors declared

clared

Exchange Control.

has been declared this dayi.
payable on September 10, 1955, to

pany

'

MANUFACTURING

Vice President and Secretary

per

Board of Directors today declared a
th'tlings per share on the
Ordinary Shares of the Company payable
August 30, 1955, subject to approval of

on

On

$.75

The

the holders of record at the close of business

cents per

w;

quarterly dividend of

on

N«. 35

The Directors authorized the distribution

day,

A regular

seventy-five cents (75^) per share
the Capital Slock of the Com¬

Limited
Dividend

South African

1955

Dividend

Consecutive

O'okiep Copper Company

of the said dividend

declared a
share on
the Common Stock for payment September
9, 1955, to the shareholders, of record
August 10, 1955.
meeting

quarterly dividend of 15

COMPANY

THE TEXAS

dividend of twenty
G.

The Board of Directors of the Company,
—a

Senior Vice President & Treasurer

ONE

*

•

August

DIVIDEND

a

COMMON

on

ber

record

quarter
of

ONE-HALF
PER
CENT
or
$1.50
share
on
PREFERRED
STOCK,
payable
October
20,
1955
to
shareholders
of
record
October 6, 1955.

share

of

-212th-

per

busines: August 10, 1955.

c.ose or

N.Y.

DIVIDEND

•

ha:

c

ernber 10

COMPANY INC.

\>

on

1955

and

L

i-

:
a

Pennsylvania

July

Hilyard, Treasurer
Common Stock Dividend

^

Paul E. Shroads

REFRACTORIES COMPANY

ANII El ECl ltlC COMi*ANY

stock¬

to

the close of

at

26, 1955.

of
WIEIIICAN GAS

1955

July 8, 1955, de¬
clared a
quarterly dividend of
seventy-five cents per share on
the capital stock, which will be
payable September 13, 1955, to

to stock

of

Sept. 1,

Aug. 5, 1955.

Vice-President and Secretary

Dividend
The Board of Directors at

on

of

per

KENNETH IJ. HANNAN,

103rd Consecutive

per

of

S+eck

15,

(75^)

holders of record

of

dpclavd

dividend

business

payable

ri»red

bee" e
1, iys3'ji

1955

dividend
($.50)

been

Capital
the

at

cash

payable

Common

^

Cents

Forty

of

102

Dividend No.
($.40)

A

stockholders

July 26. 1955

AND CANSON CONDONATION

Seventy-five
share on the
outstanding capital stock of this
Corporation has been declared,

HARBISON-WALKER

August 10,

Union Carbide

S Cretan/.

,

MANUFACTURING COWPANLWC.

on

mailed.

L.

26,1955.

VANDERSTUCKEN, JR.,

E. F.

ucc

STREET

American

stockholders

to

record at the close of business
1955.

upon

holders

'

A

COMPANY

Pa.,

has

payable September

Company,

W.

Stock

Company, payable

September

fhe

Eighty-five Cents

share has been

per

Common

Tobacco

Dividend

of

record at the close of business Aug.

cents

Cents

share

regular dividend

the 10,020,000
Company's capital stock out¬
standing and entitled to receive dividends,

authorized

quarterly

Fifty

A

dend of 50 cents per share on

,

Stock has

New York 3, N.

Foundry Company

and

The Board of Directors has declared a divi¬

shares,

RACE

remain open.

The transfer books will

TEXAS GULF SULPHUR COMPANY

-

Incorporated
1513

111 Fifth Avenue

.

United States Pipe

shares of the

DIVIDEND NOTICES

DIVIDEND NOTICES

METER

declared'a

The Board of Directors this day

quarterly dividend of seventy-five cents (75£>
per share on the. outstanding Common Stock
of this Company, payable September 9, 1955,
to stockholders of record on August 19, 1955.

1,000,000 shares.

AMERICAN

York, N. Y., July 22, 1955

New

outstanding 200,000

of

and Foadry Coipnf

United States Pipe

with

payable Sept. 15, 1955, to stockholders of

abovementioned

shares,

associated

DIVIDEND NOTICES

Lobkowicz has joined the staff of
H. C. Wainwright & Co., 60 State

giving effect to the sale

the

now

G.

Martin

—

L

After

manufactures

company

is

Wainwright Staff

'<

tooling and working capital,
i

sells for $890, the lowest price of
any

DIVIDEND NOTICES

Di

A.

Renyx, Field & Co.

*

penses

Renyx, Field

QUINCY, Mass.—Richard

(Special to The Financial Chronicle)

BOSTON,

recently

company
an

Jackson

Milk Street.

sec¬

rather

room,

BOSTON, Mass. — Lester W.
Hodgdon
has become
affiliated

from the instrument.

duced

With

(Special to The Financial Chronicle)

or¬

coming from different

tions

use

the offer¬

is

type

new

The

The Minshall Organ Co. will
the

of

firm

Staff

to

(Special to The Financial Chronicle)

television sets.

LOUISIANA

diem*

The Commercial and Financial Chronicle...

Thursday, July 28, 1955

(408)

40

ing. In January the Administra¬

BUSINESS BUZZ

tion estimated this would fall to

$34,375
out

came

Washington...
A

Behind - the - Scene Interpretations
from the Nation's

Capital

gJ

*

the actual figures.

(This column is intended to

W

JL " Cv

JljL m

(

million.
It
actually
to be $35,847 million,

$1,472 million more than es¬
timated just six months prior to
or

re¬

flect the "behind the scene" inter¬

pretation from the nation's Capital
and may or may not coincide with

the "Chronicle's

C.—Con¬

WASHINGTON, D.
that

lieve

be¬

conservatives

gressional

Humphrey

George

clear warning that ac¬
celerated tax amortization can
become
a
potent tool in the
bands
of
economic
planners,
a

gave

he discussed that subject

-when

before

recently

House'

a

com¬

mittee.

of the

Most

played the

press

angle of Secretary Hum¬

fiscal

Humphrey

testimony.

phrey's

approximately

that

estimated

$880 million of revenue was be¬
ing lost because of outstanding
certificates of accelerated amor¬
This special tax relief,

tization.

head hinted, jeop¬
prospect for gen¬
relief.
This was the

the Treasury

the

ardizes
tax

eral

pitch the daily press gave to the
testimony.

-

hand, while the

On the other

tions.

identify "economic planning" as
what he had in mind, he did ap-

|

Communications

Plan Huge New

Network
is

There

launched

being

a

wire communications
network
for
the
Continental
Air Defense Command.
It will
huge

new

cost, according to Senator Den¬

(D., N. Mex.) in the

nis Chavez

neighborhood of $2 billion to
construct, and will take two to
three years to

Air

The

American

build.
which

Forces,

with

to point to this, if indirectly.
accelerated tax write¬

"The

off
a

J

is

artificial stimulant of

an

type,"

dangerous

Hum¬

Mr.

Brand of the Tartan—The

Story of

and

Manu¬

priations Committee hearing, to >
that

stood

principal

the

Minnesota

It is under¬

build this network.

con¬

in

now

by

use

Budget

1,500
the Continental

constructed,

versus

ganization

defense

fense

and

tems

that

economic
capacity cannot be
soundly
separated
from
the
broad base of productive capac¬
range,

with

automatic

The

is

basis

that

built,

strength.
may

controls,"

well become artificial

Secretary Humphrey stated.

and

capacity,

cially in steel.
At that time, in
conditions
<steel

then

industry

espe¬

the light of
the
reluctant to

was

expand to the great extent de¬
sired
by
the aggressive eco¬
nomic planners and
left-wing
Jaborites.

The latter groups na¬

economic
expansion, to which they were
totally wedded, as the way of
preventing any slack from de¬
turally

looked

upon

veloping in the economy.
Then

came

the Korean affair

Government

Federal

the

and

gleefully launched

a

long-range

build-up and projected

^defense

tens of billions of

additional de¬

into

lines,

these

with

circuits,

"tele¬

the

published intra

wires,
is

as

the

amortized
lines

the

to

capital

over

cost

On the other

Forces

these

leases

period,

the

then

with

gleefully
fast

a

to

help

AT&T

arising

the
from'

payments

when

loss

any

shortfall.

a

The

annual

the system
cost

is fully installed will
estimated $240 million,

an

If

some

tensions

and

as

a

of

Bites

Cat

another

of

Mouse

This

is

"mouse

bites

cat"

cold

category

Benson,

all

ally

come

over

who

loan

government

ance

consequence

war,

U. S. de¬

there

were

<coeted

the

to

not

something

replace
as

then

planners of

might well

this

con-

Federal

"contribution

a

economy,"

nomic

the

come up

expansion

steamed

up

with

by

to

eco¬

another

capacity

a

day

the place, has fin¬

out

against

such

of

one

the

to

majority

Committee

House

of

the

Agricul¬

on

"loan

finance for cities

the construction of new, pretty,
and
efficient markets for the
of

fresh

fruits, vegetables,
other perishable farm prod¬

accelerated

miracle

happened,
however, the "slack" could well
a

be taken up
program

to

economy

of

by

loan and grant
rehabilitate
the
a

Russia.

For

Administration believes




the

that

a

fiscal

Spending Rises

show

1955

one

to

the
spending has set in.

actual outturn

million. This

spending

revenues

more

than

gress

most

There

The actual outturn

$994 million or
billion more than

or

$1

came

a

some

has

was

was

bill

was

twice

out in recent years

Committee

again

day,

reported
was

once

on

Con¬

officials

expect farm

are

number of known

a

indicate

that

in

items of expenditure a rise
in.

set

Thus,

the

postal

Actual outpayments
and other foreign
aid are likely to rise.
Housing
costs are going up.

FHA,

system
to

of

out

to

be

$4,192

million,

less than the

more

the

than

revenue

The chief actual reduction

of

Yearbook—

Currency

of the world's
leading currencies — Pick's
World Currency report, 75 West
Analysis

74

of

N.

6,

York

New

with

the

last

year

tration,

Oil

Facts,
Orchard
subscrip¬

of

Handbook

Forum

Factors & Formulae—B.

Lisle—Offered
tion

the

to

on new

Oil

Forum

for one

cost of $2.00—The Oil
Forum, Majestic Building, Fort
Worth 2, Texas.
;
at

year

a

Stock

Counter

the

Over

Charts

covering 343 industrials, 77 util¬

insurance
years'
weekly prices and annual ranges

ities,

.banks,

40

from

Co.,

1949—O

N.

T.

Elm

14-F

town,

44

with

companies

two

Publishing

C

Morris(also avail¬
sample
charts,

Street,

J.—$8.75
free

in

ar¬

in military spend-

was

New Views

on

RIVERSIDE CEMENT CO.
CALIFORNIA

CLASS

B

(Common)

Copies

STOCK

on request

was

LERNER & CO.

guarantee

85%

Investment

10

like
of

Carl Marks

a

loans

FOREIGN

would

tially, but there was official tes¬
timony that this would finance
markets only in New York

SECURITIES

SO BROAD STREET

TEL:

"

HANOVER 2-0050

1'

»

■

'

V.m

Co. Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

\

Iif--miinil-1lir• i-iili-rr■ r- irrmii

•

&

ii.«.r,.y.

Y.

(cloth), $35.00.

ranged by the Truman Adminis¬

expen¬

ail

Uni¬

was

pared
story is

run for 40 years.
A sum of $100
million would be authorized ini¬

new

Pick's

1955

without

insurance

The

School of Business, Indiana

versity, Bloomington, Ind.

total Federal spending, as com¬

expected.

municipality's cost of establish¬
ing a new market for perishable
commodities.

Marketing of Sugar—Jack Turner
—Bureau of Business Research,

list and folder).

it provides that the Depart¬
ment of Agriculture should set
a

Institute

Pasadena, Calif, (paper), $1.00.

are

recommitted.

once

D.

Relations

able

other

objection by the House and

in Corpora¬
Gray—Indus¬
Section,
Cali¬
of Technology,

Facts

and

tions—Robert

stock

Agriculture,

passed

Fantasies

raises.

reported

the

C.

D.

military

by the House

out

25,

for

the deficit

estimated $4.5 billion, notwith¬
standing the windfall of $1,303

So

the

nor

deficit, other personnel costs
will rise, because of government

al¬

Washington
300.

pay
consequence

only $308 million

million

fact

neither the

levels

which

factors

forecast.
As

case

any

Budget esti¬
spending at $63.5

total

the

to

them

price supports to cost about as
much this
fiscal year as last.

estim¬

Last January the

billion.

support

materially in
the face of rising surpluses.
In

big business boom.
mated

that

had the hardihood to low¬

support

er

$60,303

was

they

of

crop

due

was

between

that

in

Administration

was

when

U. S_
Office,
(paper),

Documents,
Printing

Street,
in

rise

The

$1,303 million

was

1956

estimates

time.

out¬

rise

end;

an

their

made

trend: the era of re¬
Federal
spending
has

come

until

effective

standing
duced

these

that

knew

levels, much less
substantively economical than
advertised, would not become

diture rise.

This

up

program

for

new

lower support

you slice them, the
preliminary figures

Treasury's

$64,494,

Secretary of Agriculture
opposed that old chestnut, so

new

amortization.
If

has

insur¬

The

and

spending declined, and if

spending

of

those schemes.

turn

fense

ministration

be

may

ated, reflecting the push of the

Taft

Ezra

backed

Federal

The

those

items.

news

sale

to lessen

were

the

hence

and

ob¬

the

January

supports were in low so the Ad¬

self-

January the Budget es¬
timated revenues of $59 billion.

uce.

miracle

"the

are

In

servers.

Last

beginning about 1958.

tax

the trick.

ventures

However

government

will be liable to make up to

to

scheme

such

fiscal

informed

convince

devel¬

not

does

of

Government

fornia

rationalization

This

Government—Superin¬

the

tendent

trial

1956."

year

that
market facil¬
shows

fiscal

until

effective

become

this
of the

hand, if the Air

terminate

insurance"

forward

price supports lowered in legis¬
lation enacted in 1954 "did not

at

soundly

been

liquidating,

short of the 10-year contracting

ity became imperative to carry
The Tru¬
Administration

"Experience

flexible

the

because

million

pre¬

financed by private capital."

up a system of

came

cannot

price supports of $1,251

of farm

Acting

the

Morse,

time recommend passage

have

Subcommittee
on Organ¬

of

Director, attempted to
ascribe entirely to a rise in costs

Budget

reflecting
Secretary
observed that

Department

oped,

10-year period.

ture, to set

man

the

—

report—Commission

ization of the Executive Branch,

views,

where plans for a

these

of

committee,

Benson's

of

statement

joint

Secretary Humphrey
Rowland R. Hughes, the

Treasury

(D., N. C.) of the

Secretary; True D.

sumably

the

C.

D.

25,

and

D. Cooley

House

ity

the

pay

enlarged steel production capac¬

write-off

for

needed

letter to Chairman Har¬

a

bill.

be.

may

case

expected

inter¬

or

commer¬

dear

out the immobilization.

old

10-year

expenditures, which re¬
solved the argument.
A vastly

fense

In

system is largely

enter

customers?"

This

Another $100

be

would

other cities.

contracting

leasing rates for

such

apparent,

million

phone companies," paying estab¬

cial

Humphrey's
re¬
marks acquire this significance
against the backdrop of the late
1940's, when the perfervid eco¬
nomic
planners and the CIO
were jointly propagandizing fu¬
riously for a boost broadly in
industrial

of

This

Secretary

basic

will

lished

Enlarged Capacity

and Philadelphia.

Printing Of¬

Government

S.

—

Documents,

of

Depot Utilization

sys¬

manual,

-

the

equipment

state

Recalls Demand for

the bottom of the barrel for

in 1958, then the Air

say

Forces

U.

semi-auto¬

or

for

the

as

leases

stimulants

"Artificial

warning

largely

Government

fice,
Washington
(paper), 300.

"Think Broadbottom and Bubbledome may be scraping

Task

—

Executivej

the

of
the

of

Superintendent

replace
air de¬

to

among

radar
are

matic equipment.

ity in general on which our na¬
relies
for
its
economic

tion

is

System,

integral

basic defense

Branch

of this huge construc¬
tion job,
necessary
because it
exceeds the existing capacity of
purpose

Bell

Accounting

and

report, Commission on Or- !

force

The

Command.

Defense

Air

Mining

Appleton-Century-Crofts,
Inc.,
New York, N. Y. (cloth), $3.50.

circuits will

In all some 25,000
be

.

facturing Co.—Virginia Huck—

tractor will be the Bell System.

communications

orderly, longgrowth. Our

part of our broad,

(cloth), $3.50.

;

cial record of the Senate Appro¬

the

phrey observed.
"Expansion
of our
facilities should be an

Attitudes

—-

panies," according to the offi¬

'

pear

Economy

Opinions—A. Dudley Ward '
Harper & Brothers, 49 East i
33rd Street, New York 16, N. Y.
and

are

the project, are con¬
"telephone com¬

handling
tracting

specifically

not

did

Secretary

views.)

own

high standard of living makes
peaceful out of belligerent na¬

Securities.

Post Office

Square

Boston, Mass.
Phone HUbbard 2-1990

Teletype BS-69

1