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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 The Commercial and Financial Chronicle ... » . New Issues ' ' - - ' . - ; • .• . $100,870,000 ;\ ' . • ■ 7 (375) ^ ■ Housing Authority Bonds The Bonds of each issue will be secured Public by a first pledge of annual contributions unconditionally payable pursuant to an Annual Contributions Contract between the Public Housing Administration and the Local Agency issuing said Bonds in the opinions of bond counsel. Said annual contributions will be payable directly to the fiscal agent of said Local Public Agency in an amount which, together with other funds of the Local Public Agency which are actually available for such purpose, will be sufficient to pay the principal of and interest on the Bonds when due. A-:. A ,■ V;■; : - contributions v ; ■ ; '• ' amended, solemnly pledges the faith of the United States to the payment of the annual . The United States Housing Act . of 1937, as by the Public Housing Administration pursuant to the aforesaid Annual Contributions Contracts. Quotation of the from United an opinion States, to of The the Hon. President United the "IN SUMMARY, 1 AM OF THE VIEW THAT: * * CONTRIBUTIONS ENTERED INTO BY Brownell, Herbert of THE Jr., Attorney dated States, May \ ., . . j - . ,rc J v General 1953: 15, * A CONTRACT TO PAY ANNUAL PHAi CONFORMANCE IN THE WITH PROVISIONS OF THE ACT* IS VALID AND BINDING UPON THE UNITED STATES, AND THAT THE FAITH OF THE UNITED STATES HAS BEEN SOLEMNLY PLEDGED TO THE PAYMENT OF SUCH CONTRIBUTIONS IN THE SAME TERMS ITS FAITH HAS PLEDGED TO THE PAYMENT OF ITS BEEN 1 Public INTEREST-BEARING ■V 2 United States Housing Act of Housing Administration. 1937, Interest Exempt, in the opinion of counsel to OBLIGATIONS." as amended. the Underwriters, from Federal Income Taxes by the provisions of the United States Housing Act of 1937, as amended, f i Legal Investments, in the opinion of counsel to the Underwriters, for Savings Banks and Trust Funds in New York and certain other States, Bonds Issued • Scale A- ■ by Local Public Agencies which located in: -Scale C-2- $ 3,095,000 Hartford, Connecticut 2^% $14,060,000 Philadelphia, Pennsylvania 2/*% are, or are Scale B- Scale D- 1,190,000 Madison County, Illinois 2^% 1,695,000 Trenton, New Jersey 2}4% 2,400,000 Saginaw, Michigan 2^% 2j^% 6,64 5,000 Newark, New Jersey 2 ^ % 7,680,000 New Orleans, Louisiana 2$4% 9,415,000 Atlanta, Georgia 2/2% 16,075,000 Baltimore, Maryland 2/2% 12,960,000 Cincinnati, Ohio - $5,910,000 Tampa, Florida 2}4% $1,255,000 Athens, Georgia 2-^% 1,875,000 Columbia, South Carolina 2jd{% 1 4,880,000 Norfolk, Virginia 2^% -Scale C-l > $11,735,000 New York City, New York c \ 1 ... • 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 '• ' - . 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 — — < — (and accrued interest) t Priced to the first dale at which the bonds are The Bonds of each issue will be callable ten years from their date at a call price of 104 and accrued interest, The Bonds t ' - * Drexel & Co. Eastman, Dillon & Co. A.C. Allyn and Company 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 .. . . new capitalizations . . . . . . up-and-coming NEW STOCKS in each bi-montnly . 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. L. 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, TODAY'S MARKET.. amount. tariff reductions are In to be guide to successful investing in O.T.C. Stocks! JULY-AUGUST EDITION NOW AVAILABLE... ORDER TODAY! FREE for placing of funds abroad. Secondly, the Bank, other action have. Secondly, rates summaries throughout O-T-C PUBLISHING 14-F Elm Street, Morristown, □ Send new CO. SAMPLE N. J. edition of 500 Over-the-Counter STOCK CHARTS <5 $8.75 □ Send FREE SAMPLE CHARTS, complete stock list, and foldei. NA 'J. ADDRESS— ... 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