Full text of Commercial and Financial Chronicle : July 5, 1956, Vol. 184, No. 5548

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ESTABLISHED 1839

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of michigan

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Volume 184

New York 7,

Number 5548

EDITORIAL

Price 40

N. Y., Thursday, July 5, 1956

a

Copy

I T
Some More Viewpoints on Economic World to Come and
:,Webee
It
elbairaVm
Annuities Issue
Consequences for America

_

fls
i More than one

Provision was made in last week's issue for
aspect of the controversy now
raging over the amount we should spend on de-/ some of the statements submitted at the June 22
fense and how we should spend it are disquieting.
hearing of the Business Affairs Committee of the
Hew Jersey Senate on bills previously passed by
The ordinary man with the good of his country
the Assembly under which insurance companies
at heart must, of course, wish that he had some
in the State would be permitted to sell so-called
way of knowing what our real needs are in the
variable annuities to the public. The chief pro¬
matter of manpower and military equipment. It
ponent of the common stock-backed annuities is
may well be that some of those charged with the
the Prudential Insurance Company of America
duty of directing our course harbor the same
at whose behest the related bills were introduced
wish. It is certainly not easy to reach a decision,
in the -New Jersey Legislature: Because of the
or
decisions, and feel confident that: the best
course has been selected—and a good deal may | importance of the issues involveds the "Chronicle"

^

;

Consequences for America, according to State Depart¬
ment's Economist, based upon projections
dented

world

J

public should be able to look for sound advice.
this state of mind among the professionalsoldiers and sailors does

more

otherwise sensible and able

than that. It leads

men

to all sorts of

intrigue to get what they want out of Congress
even when what they want is directly at variance
with decisions reached by the professional groups
to whom the task of shaping policy has been

often

,

y

Continued

not

his

future

Moreover, the
inflation

severe

memory

brought

there is
credit

a

latent fear that
fiscal policies

and

our

i

Association

of

New

June 29,

at

appear

of

plans
mate¬

raw

make^ plans to construct new
buildings and plant, or to modernize
present production facilities, he
anticipates the probable course of

his business for years to come.
In the national economy there are

projections

ahead

and

estimates

covering Federal
There

expenditures.
also

of

such

items

Claude

nature

a

H*

as

*

ProchnoW

<

Product,
construction,
employment,
growth of the labor force and investment. Among some
of
the underdeveloped
nations, especially, there are

Gross, National

,

Continued

York

purchases

L.

Benner

Continued

government will pursue

of such

'

with
things to

his

by
' V
minds, and in addition

our

of

businessman

he

of the

about

World War II is still fresh in

a

rials,
his
inventory
of ' finished
goods, or his anticipated sales, he
projects his thinking ahead. When

business

to have van-

can¬

preoccupation

shape

When

are

PICTURES IN THIS ISSUE—Candid shots

DEALERS

f

revenues

now

this

economic

about to slide into
ished.

more fascinating subject than yesterday's
For obvious reasons, the
*

escape

come.

-

24

on page

much

a

the

decade, when business is apparently
again turning upward and when the
Dow
Jones y averages V are
almost
daily making new highs, it is to be *,
expected that the public will become
increasingly aware of the attractive¬

recession, appear

interested in the shape of economic
What tomorrow has Jn store for us is

are

come.

businessman and the economist

as

to

cause

♦An

'

7;

us

happenings.

of investing in common stocks.
Fears, which were rather common a
few years ago, that the nation was

past six months. The thoughtful man must
•

of

things to

ness

assigned. The techniques of "leaks" and of "prim¬
ing" dissident members of Congress have perhaps
never been more assiduously employed as during

economic

our

American economy in twenty years.
All

the country has been experiencing a
stock: market
boomy for '■ nearly a

severe

unprece¬

commerce; (2) added
growth; (3) strategic shifts
of power; and (4) faster underdeveloped countries'
growth iate than that of the U. S., yet the absolute gapy
between us may widen, and, thus, present new problems.
Mr. Prochnow also furnishes projections of $600 billion

stimulus to

■

a

of

include:
(1)
trade flow rendering small by
growth-rate,

comparison present international

.

But

economic

inevitable increased vast

«

jealousy among the services which warps judg- g
ments among those very elements to which the

Department of State

;

—

.

PROCHNOW*

By HON. HERBERT V.

Deputy Under Secretary of State for Economic Affairs

once again is pleased to
present herewith some of
hang on the outcome. It is inevitable that doctors v
the other statements now available.
EDITOR.
disagree in a case of this sort, and it is hard to g
know-Jwho is best equipped to make the right r>';^'g;ggg;g: By CLAUDE L. BENNER
decision.
g President, Continental American Life Insurance Co.,
ggg:-:ggg;' ':gg
' ;
Wilmington, Del.
f The difficulty at best of finding proper solutions V I believe and believe strongly that it would be detri¬
to such questions as these and the importance : mental not only to the life insurance industry but to
of reaching correct decisions render certain de- - the general public if legislation is enacted legalizing the
sale of variable annuities on an in•v
velopments in Washington of late months inex- J dividual basis,
g.g
y
cusabley First of all, there is the deep-seated ;;
g At a time like the present when

the

Cents

on

29

page

June

address

25,

on

page

26

by Mr. Prochnow before the University of Nebraska,

1956.

taken at the Annual Outing of the Investment

the

Sleepy

Hollow

Club

Country

in the 4-page Pictorial Section.

on

State, Municipal

,

in

and

U. S. Government,
State and

Municipal

STATE

Securities
telephone;

n

BONDS

TODAY'S

MONTHLY

;

LETTER

DEPARTMENT

ARE NOW AVAILABLE
ON REQUEST

THE

THE FIRST NATIONAL CITY BANK
OF NEW YORK

DEPARTMENT

ST.,N.Y.

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view

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bank
BOND

Bonds and Notes

y

"POCKET GUIDE FOR

THE

chemical

30 BROAD

Public Housing Agency

COPIES OF OUR
LATEST

HAnover 2-3700

corn exchange

m

MUNICIPAL

AND

Burnham
NEW

and

15 BROAD STREET, NEW
CABUE:

Company
STOCK EXCHANGES

YORK AND AMERICAN

YORK 5, N. Y.

•

Dl 4-1400

Bond Dept.

Harris, Upham
:

Members

Teletypes NY 1-708

York

Stock

&

cq

Chase Manhattan

Exchange

BANK

YORK 5

34 offices from coast to coast

TELETYPE NY f-2262

COBURNHAM

New

120 BROADWAY, NEW

Net Active Markets Maintained

McGregor- V

To Dealers, Banks and Brokers

INVESTMENT

T.L.Watson &Co.
SECURITIES

ESTABLISHED

the

goathuKAt

American

Exchange

BROAD

STREET

NEW YORK 4, N. Y.

gtoUAu>€4t COMPANY
9AUAS




DIRECT

DEPARTMENT

WIRES TO MONTREAL

•

PERTH AMBOY

Pohdhoh Securities

AND TORONTO

Grporatioti

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

our

115 BROADWAY
NEW YORK

upon

request to

Unlisted Trading Dept.

Regular Rates

Teletype NY 1-2270

23

FIRST

CANADIAN

Stock Exchange

Analysis

Executed On AH

Canadian Exchanges At

Doniger, Inc.

BONDS & STOCKS

SECURITIES
Commission Orders

New York Stock

CANADIAN

1832

Members

of

CANADIAN

1 NORTH LA SALLE ST.
XHICAG0

IRAHAUPT&CO.
Members New
and

other

York Stock Exchange

Principal Exchanges

111 Broadway, N.
40

Exchange Place, New York 5, N.Y.

Teletype NY 1-702-3

WHitehall 4-8161

WOrth 4-6000
Boston

•

Y. 6

Teletype NY 1-2708

Telephone:

Enterprise 1820

(62)

For

The Commercial and Financial Chronicle

v.-!

Banks,

The

Brokers, Dealers only

.'Get'Me Markets

week, a different group of experts
advisory field from all lection's 6f the country
participate and give their reasons for favoring a particular security.

Mountain

need markets for sevplace one phone

eral issues, just
TWX

or

will

save

call

CALVIN P. GADDIS

It

"Hanseatic."

to

time and you reach
throughout

you

hundreds of markets
the

,,}

country.

Our

large trading department,
supplemented by a nationwide
network of private wires is al¬
ways

disposal.

at your

M

1

buys

in

owners

grated natural

the

utility the

gas

another

Associate

./■

these

1920

.

PHILADELPHIA

{

Private

CHICAGO

•

SAN FRANCISCO

•

to Principal Cities

Wires

of

the

owns

tion of natural

with

gas

and distribu¬
tion to the ul¬

SCRIP

&

•McDonnell & To.
Members

120

Stock

York

Stock

Exchange

BROADWAY, NEW YORK 5

oil

of

utility serves
rapidly growing

to

126,081,

from

period

148%.

or

Alabama-Tennessee Natural

gas

Even

the company anticipates

about

as

many new
the
10,778

as

"customers

in

connections

made in

Southeastern Telephone Co.

1955, and this growth is
expected to continue.
A

Scott, Horner <&.
Mason, Inc.

new

the

20-year contract between
and

comnanv

west

Pipeline

suonly

Pacific

North¬

Corporation

Mountain

Fuel

will

with

50

not

Trading Markets

Investment Co. of America
Warrants

Donnelley & Sons Co.

1929

Tel. HAnover 2-4850

new

those

also

needing
new

flexi¬

gives

a

distance

of

the

marketing

area.

It is here

that the company takes
the "sDecial situation" look.

on

Fuel

leaseholdings
acres

spread

of

controls

about

over

-

large

700.000

southwestern

Wyoming, northwestern Colorado
and

in Utah selected

geological merit.

one

gas

Boston

on

the basis

This

area

is

'"home

of the hottest spots for oil and

search in the country.

discoveries

of

gas

and

Major
have

oil

already been made along the pipe¬
by Shell, Gulf, PhiUios,

line route

our

Sinclair and several independents.
With Mountain Fuel's large, stra¬

New Offices

tegically

/ located

leaseholdings,

the

drilling activity of their own
department
and
the
increasing

KELLER BROTHERS
CO.

BBO COURT STREET, BOSTON 9, MAS.




historically
high price-

relatively

a

Current levels

$1.20 dividend

a

26 with

near

reflect

may

some

unpopularity of natural gas stocks,
but represents a
long-term bar¬
gain for the realization of utility
growth and one of the safest ways
to participate in oil and gas ex¬

search by others, the
stock appears to be

play

size.

on

bigger

that of many straight oil

production

The

re shit

' of

western

Auto

neapolis
form

PUr'ts

(the

Co.

initials

of

of

Min¬

a

companies

of

the

than

and

Investment

The stock

is

listed

the Pittsburgh Stock Exchange
is
primarily traded in the

its

larger

(Detroit

real

brewing business, and its
the time

at

of

the

of

merger

buildings leased

Members Midwest Stock

on

the

that

accumulated tax loss of

an

Exchange

distinctly

has

been

under¬

passed

by

yet

assets

of

division

business

such

a

must

of

of

buses.

In

previously

of

the

manu¬

into

have

the

holds

semble

the

to

been

integrated

to

sold

a new

tries.
sion
for
and

Irving J.

Rice

look¬

of

all

for

loaned

Ones.

The company expects to drill

-

Its

I

in

name

the

am

these
is

Inc.—certainly

/

The

Commodity

to

foreign

Y.

Exchange
of

Cotton

other

Cotton

Inc.
Trade

Exchange

exchanges

Exchange Bldg.

NEW YORK 4, N. Y.

no

coun¬

Exchange

Exchange,

Board

New Orleans

N.

Exchange

Cotton

York

and

trucks

Stock
Stock

New

Chicago

Detroit

•

Miami Beach

HoUy wood, Fla.

•

•

Pittsburgh
Coral Gables

•

,

t

Beverly Hills, CaL

Geneva, Switzerland

Napco Products divi¬
a four-wheel drive

Amsterdam, Holland

produces
trucks

known as Power-Pak,
recently announced a $3 mil¬
order

this

from

General

product.

Truck
is

The

Motors

Federal

(established

in

the.

of

the

1910)

business

potential

this

spent

in

industries

-

about

and

to

specifications.

Napco
an

securities

de¬
'

Industries,

unknown

field,

ten
to

other

$240,000,
period
!

-

the

amounted

characteris¬

offsetting features to its desirable
issue

for

York

American'

of

earning

combination

is

moviftg the va¬
from
Detroit,

N. Q. B.

one

in¬

con¬

fits

Members
New

Chicago

and supervision could be in
location, thus avoiding the
mistake made by many companies
of spreading management too thin.
Net shipments of goods,
therefore,

that

tics of this particular stock, to be
certain
that it does not possess

The

H. Hentz & Co.

world's

parts

1856

ment

bargains, has missed it.
found, a searching scrutiny

scribe

Established

Mich., St. Paul, and other cities,
to Minneapolis, so>that
manage¬

for

other

made

the

be

in

or

largely

be

sur¬

production, principally
equipment that has been

rious

must

-

73 King St. West—Toronto, Canada

Federal

in

of

Once

COMPANY

and

LIMITED

one

in Turkey
and the
rounding European area.

cause

vestor,
stantly
ing for

LTD.

Stock

tremendous, the balance of 1955
and the first quarter of 1956 was

ob-

avid

WISENER

com¬

trucks

power

it

of

reason

Common

mentioned, all

and ' distribute

i ty, be¬

the

I PETROLEUM,

40 %

While

secu¬

or

CANADIAN DELHI

Transo-

Westinghouse

addition

which

s c u r

Some

>

—

manufacturing heavy-duty trucks.

be¬

name,

Trading Market

Highway

panies

division

If

be

cause

Branches

Bankers

Safety
Appliances, Inc., manufacturers of

Motor

char¬

exists,

70

Maintained in

the Elston sanderS for trucks and

for

has

unusual

rity

1897

—

Broadway,N.Y.6 COrtlandt 7-5680

Firm

a

Airbrake, and in June of 1955 ac¬
quired all of the assets, inventory
and

lion

movers,

and

acteristics.

111

half. /

a

the business And

facturing
Loader

longer

of

fast

growth

Tokyo

Investment

Shortly thereafter the company
acquired

Arifty

is

that

parade

Office

Brokers

10-year leasfe with option to
a
substantial cash position,

a

and

business

The security I like best at this
stage of the economic cycle must

valued,

Established
Home

to

leading
supplier of military spare" parts,
and
does a substantial
foreign

Napco Industries

one

;

write

or

Yamaichi
Securities Co., Ltd.

The Northwestern Parts division

Irving J. Rice & Co., Inc.
St. Paul, Minn.

be

Call

the Falstaff Brewing Corporation

claims

IRVING J. RICE

gas

several important wildcat tests in
1956 in addition to normal devel-

Co;

information

current

very

leaseholdings.

on

For

present name Napco),
Motor Truck Co. (De¬

holding
company),
and
Berghoff
Brewing Corporation.
Berghoff had long since disposed
of

remaining at practically
stationary levels for three years /
now
appear to be stirring due
to improved
Japanese economy.

which

estate

offices

after

the

Federal

branch

our

STOCKS

was

MUtch 31, 1955, as a
the merger 6f North¬

on

firm, the company
of the capital" stock
promising area., -otsa Turkish corporation, Federal
Current price levels seem to re/
Turk Kamyonlari, A. S., which
fleet only utility value and give
has a capitali'zUtid'n ;o'f 20 million
little effect to the company's sub¬ Turkish lire '
(approximately $7
stantial reserves and
little, if any, million), and which stands on
value to its aggressive explora¬
Napco's books at a nominal
tion
department
and
its
large amotint.- This company will as¬

ploration in

more

park"
to
Mountain
Fuel's
fully staffed exploration
department and now represents

Tsistyp* BS-630

on

dend.

some

division,
enabling the company to extend
its area of operation
beyond the
point of economic transoortation

of

T«l*phmt« Richmond 2-2530

sold

has

company

earnings ratio and low yield. The
11)55 high was 31V2 on a $1 divi¬

supply

bility to the exploration

the

'eouAsiLLe*
cJ.

The

faster

grown

This

of the pres¬
distribution depart¬

the

Mountain

^Teenae^CompaTui

has

gas

from

but

gas,

Dover Corp.

for

reserves.

on.

ment

Commonwealth Oil

•

pansion
companv's territory without sellin^ additional stock.

discovery record, de¬

only relieves

sure

Carlisle Corp.

fine

ation.

adopted

MY 1-1557

JAPANESE

corporations now forms a
and interesting oper¬

million and

finance the possible ex¬
into new markets in the

Direct wires to

most sizable

buy,

also

HAnover 2-0700

Mobile, Ala.

plans for increasing transmission
a stepped tip explora¬
tion
and
development program

facilities,

San Juan Basin. Despite Mountain

mand

visit

to
expansion

company

Over-the-Counter Market.

than

in

the

current

'

but

cubic feet of gas per day
Pacific's new line from the

Fuel's

When

its

/

corporations- merged to
form jthis interesting company,
and With the subsequent acquisi¬
known

Exchange

Exchange

NewOrleans, La.- Birmingham, Ala.

Five

consisted

enable

from

LD 33

ex¬

Stock

Stock

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

Exchange.

assets

million

Lynchburg, Va.

37 Wall St., N. Y.

to

still being imposed.

are

so,

1956

Company

ESTABLISHED

able

in its service area, and restric¬
tions in certain classes of indus¬

trial

R. R.

proven gas

gas

.'

facilities and

new

York

Members American

M.

51).t *2

fully satisfy all of the demand for

Products, Inc.

Tele. LY 62

the

Though the

it has not been

reserves,

Trading Markets

Gas

gas

of

one

proximately tripled its

Bank of Virginia

and

areas in the
customers incr^a^d

10-year

more

Steiner, Rouse & Co
Members New

aftd

profit"1 from' addi¬

The

a

Bought—S old—Quoted

,

troit), NUpco-Detroit, Inc., R, W.

complete

utility operation, plus

the exploration division.

in

'

components of this company have
a long and successful
history. It
is listed on the Midwest Stock

should

reasonable; income

Gas

'

/

Inc., St. Paul, Minn. (Page 2)

in
sound
financial
position with a
capit&l ratio of 40% debt and 60%
equity.
This conservative ratio

'

most

is attested by

company now
about 1,400 bil¬

feet, equivalent to

Louisiana Securities

tion of products from other well-

de¬

larger reserves to service the
pansion
finds
the
company

'"V-

company
has
approximately
doubled its phyical volume of gas
sales in the past 10 years and ap¬

TEL. REctor 2-7815

Air Control

Caddis

i;

discoveries

nation.

Exchange

of

potential

tional

by

American

P.

suf-,

assurance

the

Since 1917

New

on

inherent in

the

(Page 2)

the demands for
Calvin

ficiency makes the company com¬
paratively unique in the industry.
Integration gives to the Mountain
Fuel stockholder the stability and

Specialists in

RIGHTS

self

/Utah.

The continuous rapid expansion
of the company's service area and

The degree of
and

Utah

Despite

unfilled

the

controls

or

the

and

than 20 years' supply at the pres¬
ent rate of consumption.
/ >

timate user.

IVHBMIUI!

from

program

that

lion ciibic

its

transmission

integrati

fact

fields

Company.

and

other

success of the company's

exploration

produc¬

.

Teletype NY 1-40

BOSTON

erations

mand, the

development

Exchange

120 Broadway, New York 5
WOrth 4-2300

op¬

Gas

and

Member

"

Stock

bines

restrictions

from

same

remainder

Natural

the

18%

Company

Napco Industries—Irving J. Rice,
President, Irving j. Rice & Co.,
com¬ V

55% of its natural gas re¬
pany that is producing and selling
an
quirements from 138 gas and oil
economic necessity at a very
wells in 11 fields located in Wylow price in a growing, protected
i
oming, Colorado and Utah and
market.
As a

inte¬

■

19

were
drilled by the
resulted in nine gas wells,
two gas and oil wells and eight
dry holes. The company produces

company com¬

American

fields.

when

'over

New York Hanseatic
Established

existing
1955

wells

Mountain Fuel Supply is a com¬

fully

Corporation

in
in

Supply

<■'

—Calvin P. Gaddis, of Edward
L. Burton & Co., Salt Lake
City,

pany,

Mountain Fuel

-

wells

opment

Development

Edward L. Burton & Company
r
Salt Lake City /''//.vv,/

Fuel

-

Alabama &

Their Selections

// (The articles contained in this forum are nut intended to be, nor
are they to be regarded, as an offer to sell the securities
discussed.)

;

■*

'

Week's;

Forum Participants and

A continuous forum in which, each

Try "HANSEATIC"

Thursday, July 5, 1956

.

■»

This

in the investment and

With One Call

When you

Security I like Best

..

months

$4,700,000,

income

and

net
to

came

of

an

1955

rentals

additional

profit

for

$272,627.

that

Ship¬

ments for the first quarter of 1956
amounted to

a

million and

the next full month

a

the

(April) $814,-

000, and production schedules

Continued

14-Year Performance of
35 Industrial Stocks
,

FOLDER ON REQUEST

half,

for

name

yet

OVER-THE-COUNTER 7
INDUSTRIAL STOCK INDEX

National Quotation Boreao
Incorporated

46 Front Street
on

page

10

New York 4, N.

Y.

Volume 184

Number 5548

.

.

The

.

Commercial and Financial Chroniele
(63)

I N D E

id-Year Construction Outlook
<

Articles and News

Page

■

-

:■

Mid-year
"the

recapitulation

first

still

$60 billion

January

supports

construction

( - V:
forecast of :

history"

in

year

Economic World to Come and
Consequences

the y

—

—Hon. Herbert V. Prochnow

eleventh consecutive rise, and finds,, however, non-residential *
construction should increase 10% more than earlier estimate, I

Some More Viewpoints

offsetting

Mid-Year

lower decline in homebuilding than previously
anticipated. Present growth rate indicates an annual $75 bil¬

.

a

lion copstruction

total in 1965, providing

v

proposed Federal longe-range highway
Last

December,

stated that

we

cline

in

was

potential for

a

construction

$44 billion in 1956.

new

more

volume of

a

than

our

lar

_,

1955

pace,

investment

plants
enterprises s in v

commercial

and

in

the private categories, and high-

January

we

placed

the

figure

at

$44.5

billion, which,,
when an estivmated volume
of

than

more

•

$15

billion

in

maintenance
and

repair

might
James

this

Marshall

D.

added,
make

the

$60

first

billion

construction

construction in
Y

•

/•

;•

„

1956.',

^

.

.

that

prospect

total

*

;

i

7

.yV--'/

-

k

v.v"'t* '25s J.,/ '<:c-.'

*

*•

:'■

y;

10
.-

.

'•; "V.

'

LITHIUM CORP.

;^luck. ^
v*'
*

11'

«

'

-v.-.-

•'

' J.„'

*•»

-

J '

'■ *:/•;•

j.

•.

•

•■/*\

/ Y-.

•'

STRATEGIC

Expanding Economy

an

12

_

Problems to

MATERIALS

at

last year,

rate

a

should

25%

billion mark—more than

category which

'n .-v*-

<

.Commercial

at

•

.

.

a

Strong__

HELICOPTER

19

RIDDLE AIRLINES

Spiral in Offing, Says First

National City Bank

Y___ 18

•

Reserve

Credit

42

~

consecutive

There

however,

are,

changes within the various
gories
the

of

construction

estimates

of

cate-

noted

work

in

put-in-

place during the first five months.
Nonresidential

Construction

Expanding
It is readily apparent from the

poten-

set forth

we

construction

while

is

nonresidential

in

y-

being

realized,

lagging volume in the
lield is the only

a

homebuilding
.major

sector .of

decline.

to

field,

we

Jhat

our

v

the

experts

on

this

in

would like to point out

January

forecast

was

•perhaps the least optimistic re¬
garding residential construction,
Stating that it would "fall slightly
the result of a

ing

in

taken

money

and

steps

by the government to curb

credit".
i

general tighten-

supply

In

-

-

its

the

estimate

A.

that

G.

C.

nonresi-

categories.

approach $28

1956.

lion

will hit $29 billion, a healthy 10%
increase
over
the
new
volume
and

for

these categories
than

more

in 1955,
offsetting the de-

^Statement

Outlook

by Mr.
Symposium
sponsored
by

Marshall at
the
the
Business
the Chamber of

on

.

.

Man's

..Cover

educational and

va^e

activity
Farm

keen

which

upward

2955

estimates,

on

is

bil-»

the basis of

expected

to

:Y-\

"iV'i;,

;

8
.Y':

/.jVY-: '

J;

•

Ahead

of the

8

Mexican Gulf

decline

j^ews—-Carlisle Bargeron... 15
1

...

News About Banks and Bankers..

Observations—A. Wilfred May

Public Construction

1956

public construction in
reach $13.3 billion, a

new

may

7% increase

billion,

over

despite

Our

drastic

a

in

'

Direct

by

kinds

Public

Utility

Securities

'i

and

%

1

For Worthwhile

32

-

construction

by

which

government

The Market

Speculative Profit

37

SOUTHLAND

18

on

pol-

page

.

.

and

You—By Wallace Streete

The Security I Like Best

16

i

...

CORP;

24

Washington

and

You

Y_/

:

_

44

Around

^

Park

DANA

Place,

REctor

Spencer Trask & Co.;
(.

.

W¥i i iam
WILLIAM

25 BROAD ST., NEW YORK 4, N. Y.

Albany

„

Boston

•

Nashville

.




•

Chicago

Schenectady

•

•

Worcester

to

•

President
rresiuen*

s,tate and city news, etc.).

•

/

"i Y
"*

as second-class matter Febru-

of

Canada,

other Countries, $67.00

-

,

Other

,

Bank

and

i

•

•

•

:

$1.75
'

;

'

.

Southland, America's
and

modern

8.

Since

of

creased

per year;
In
$63.00
per
year.

at

cost

racing

of

over

Eighty-day Track Meet

Opening Aug. 30.

1945

greyhound

beauti¬

most

greyhound

built

was

Scheduled

annual attendance

racing

per

year.

from

tracks

has

at

in¬

million.

2

million

Send for latest

to

over

8

Report

Publications
—

Monthly,

(Foreign postage extra.)

Note-On account of the lluetu.tlon. In
rBfB

*

$1,000,000.

•

Quotation Record

$40.00 per year.

'

track

Pan-American Union, t60.00
Dominion-

.

ful

Subscription Rates

,

^

,

Eng-

Subscriptions in United States, U.
Possessions,
Territories
and
Members

Cle*rln8''

Si?r •!! YX'lS.1; nS

C.

>
-

1956

S.

YoW N. Y.fY/ertt'e Acfof

7, N. Y.

9576

SEIBERT
hfclBfcKi,

London,

Com,™,

Reentered

;

•

SEIBERT, Editor & Publisher

Thursday, July 5,

Glens Falls

P>""

Every Thursday (general news and advertising issue) and every Monday (complete statistical issue — market
quotation

TELETYPE N. Y. 1-5

•

New York

Gardens,

0/0 ®dw"d'

•

COMPANY, P.'bM.h.r.

2-9570

riANA
DANA

Drapers'

CHRONICLE

i

HERBERT D.

Stock Exchange

TELEPHONE HAnover 2-4300

1

Reg. U. S. Patent Office

WILLIAM B.
25

-

Weekly

COMMERCIAL and

FINANCIAL

PREFERRED STOCKS

Members New York

Twice

;

Common Stock

v

it The

specialized in

'h.*

J1

f'

4

•

have

i

RACING

-

2

The State of Trade and Industry j

construction,; | which

Continued

.

"

is

icy.

Highway

Prospective Security Offerings

Securities Salesman's Corner

increase,
than offsetting the declines

Federal

to

25

Securities Now-in Registration

re-

the

on

Wires

Chicago * Los Angeies

19

Railroad Securities

a

are

*

43

"

.....

INC.

Exchange Pl.fN. Y.

>

disappointing

conservation

40

Philadelphia

Our Reporter's Report
-

tremendous demand by a growing population,
state and local public works of
more

23

Mackie,

Teletype NY 1-1825 & 1-4844

5

Governments

on

&

HA 2-0270

development work.

Pushed

all

Singer, Bean

reduc-

atomic energy program, a smaller
than expected increase in military

of

Reporter

t__

last year's $12.4

a

31

20

on]y slightly to about $1.5 billion;

All

Sulphur

9y

.

Mutual Punds
i:-.—40

new

Sulphur,

Pan American Sulphur

"'y

Activity

Business

Sulphur

Texas Int.

44

Traie* Recession"......

Indications of Current

has

to $1.6

construction,

revised

ijon for

From Washington

slight

Y^Y-

Gulf

21

^

Bookshelf

Einzig: "British Motor

institutional

experiencing

are

declines.

!_ 1

Dealer-Broker Investment Recommendations

t

Published

For many years we

4

Teletype NY 1-4643

.

.

1

-

are in sight for
social, recreational; land
mjscejianeoug construction, while
the other minor categories of pri-

,

.

!"

(Editorial)

Slight increases

Commerce of the United States, Washing¬
ton, D. C., June 17, 1956.,
/
,

-

Coming Events in the Investment Field

church,

determined
v

Mid-year

Business

this year.

source

Today, it appears probable that
ascending nonresidential activity

See It

Bank and Insurance Stocks..__x.„

and should reach $4.7 bil¬

volume

total

As We

1955 according to the latest re-.
vised statistics of the government,
is
showing
an
unexpected
in¬

construction, and

in

'

v

Regular, Features -

'

(

.

.

and

billion

DIgby 4-4970

Private public utility construction, whicn totaled $4.6 billion in

dential construction, both private

public, should

'

..

Broadway, New York

22

step up its increase during the

tion in the Federal Government's

December,

stated

.

summer

While

the A. G. C. leaves the details

housing

may

crease,

•actMlconstru^on figures tor the
.first five months that the
tial

current rate of 23% ahead of 1955,

months, and the A. G. C.
sticks by its prediction of a posimportant sible $3.8 billion total in these

year,
with
an
inperhaps 4% over 1955.

of

'crease

Spahr

i

'

J.F.ReilIy&Co.,Inc.

Actually Expanding, According to Walter E.

,

'vnT

■■,

Arthur Motley Urges Security Bealers to
"Merchandise".,..^^.. 21

„

construction,

•

No General Downward Business

$3

made by the

was

-

.

Tax Aspects of Foreign Trade—^A.
M.

the

even

TEXOTA OIL

_

,

ahead

the

pass

14.

Savings Banks in Future Mortgage Lending
C—Joseph J. Braceland_i__
15
ti ■: : :
V-r^ '
/
'
Y,
■ ; ■
Y
■ ;
Air Conditioning Investor
Advice~-Roger W; Babsop-.l'—.i-1J 17'

$9-4 billion this year, an increase
of 24% over the 1955 total/ f >
"
Industrial
construction,
now
of

'

*

Bole of

•

Private Construction

proceeding

Bp Overcome inHarnessing theAtom

;-vPaul" Dl-

It is expected that private nonresidential building construction,
placed by surges in commercial
and industrial activity, will total

construction

volume again will smash all
pre,vious -records
for
the
eleventh

STREET, NEW YORK
Telephone: WHitehall 4-6551

v

.—I-

-1

;

•

.

..

A. G. C.

the

♦;*:

.

Government's Changing Role in

,

-at

with

Armstrong_4._^^__>._i.^____„_-

/ Y{—Devereux C.~ Josephsir-j-.r—

most'optimistic forecast for this

point,

•

stew

WALL

ways

year in history. We are happy to
say that that potential still .exists

this'midyear

s».

,

"

work is

•'

•*

•

and other types of state and.
local public works are emerging
as
the giants of .nonresidential

about

'

a

told her what to dot

we

Obsolete Securities
Dept.
09

RegardingProxy

The Electric Industry's
Future—Fischer

'

'•••;

r

Business

regu-

annual

Sinclair

Until

6

-

currently is about 7% behind the;

forecast in

I

•

Obsolete* had her in

3

.

4

Life Insurance Companies and the
Taxation Problem

a

In

MarshalL-!>_:____

P.

Cobleigh

Problems

which y Y*-—William F. Gliss_«..__^___
"V:ft
i
A
tf«' Yv-;".l

work

*

tfiere

Solicitations—J.

.

i

and

AUNTIE MAME

Variable Annuities Issue_»l_U_Cover

on

Construction Outlook—James

Pending: Legislation

program.

residential

,

Cover

What About Real
Estate Credit?—Daniel W. Hogan, Jr

.

breakdown of private and public construction, including the

for America

.Y--——

Eastbound Canadian Gas—Ira U,

steel and cement

suppliers schedule larger expansion programs to increase -supplies during, next seyfrad years. Data
supplied for the

.

as

.t

By JAMES P. MARSHALL*

Executive Director, Associated General Constructors of America

•

^

X

3

0,

for

General Investing Corp.
Members

American Stock Exchange

for.

"

other

Chicago

Offices:

3,

HI.

135

South

La

Sail©

St.,

(Telephone STata 2-0613);

eign subscriptions and advertisements nut
—

an

New

York

funds.

80 Wall St.,

New York 5 • B0 9-1600

r
4

The Commercial and Financial Chronicle

(64)

"

Eastbound Canadian Gas
'

'•

'

fey

Tennessee Gas Transmission

upon Canada's forthcoming Trans-Canada
Who will supply the gas, who will distribute it,

Pipeline.

and where does the investor fit in?
After

.

'

facility which, in due course, will
propel gas some 2,240 miles from

of the hottest legisla¬

one

Domin¬

tive hassles in history, the

to Montreal.
government at Ottawa finally
approved the Trans-Canada pipe The first 4eg-^574 miles of 34 inch
line project, conduit from the Alberta-Saskatand agreed to chewan border to Winnipeg—will
loan the com¬ be started this month; and, if all
pany $80 mil¬ goes--well,-finished by the end of
lion to hasten the year. The City of Winnipeg
construction. will get the first deliveries (esti¬
It wasn't easy. mated at almost 15 million C. F.
First of a 11, daily).the fields of Alberta

ion

,

'

Canadians

From

Winnipeg -the line nar¬
rows down
to 30 inches, and the
next 600 miles across thinly popu¬
lated Ontario, will be build by the
government, and the Province of

did n't'like the
that

idea

vital

r

so

eco¬

an

nomic

project

controlled

was

Ontario, at

by Americans,
d

an

U.

Cobleigh

"outlanders."

of. t h

thrashed

out

to

loan

a

e

thing was
fare-thee-well,

Among

that

(1)

volve

r a n

s-C

whole

by
a n a

2, 1957 or
would lose the

the

works;r (2)

to have

company

majority of its di¬
rectors Canadian citizens; and (3)

was

a

51% of the

common

offered

Canada

in

stock must be
and

to

total

will

It

investment

of

in¬

Cana¬

be

and

C.

able

F.

to

of

$360

'-

Production

Electric Output
Retail

State of Trade

*

Trade .-.

V;-1-.".

Commodity Price Index
Food Price

V'

Index,:

•

Auto Production

and Industry

Business Failures

f

;

Mild

>

expansion was noted in total industrial output for the
country-at-large in the period-ended on Wednesday of last week,
with production moderately above that of the like week a
year

£ ago.,.
V
Output increases took place in the steel, automobile and lum¬
ber industries.
In the steel industry,
however, even though the
in
mills hoped for ..a peaceful.settlement of the
wage issue before the
through shareholding in the above
June 30 deadline, they began at mid-week an
orderly shutdown, of
companies
(Canadi an. G u If,
thfeir facilities. L
through Gulf Oil), some of the
During the week the employment situation registered a 6%
smaller producing units also have
decline in initial claims for unemployment
insurance, but they
stockholder appeal. We'll mention'
were 3% higher than those of last
year.
The most noticeable de¬
a few.
-.
/.:•
creases
were
reported in Pennsylvania, Wisconsin and Massa¬
cents

1,000 C. F. at the well
While, investors can share
t>ese r gas
delivery .-profits
per

head.

-

-

-

Canadian Delhi Petroleum Ltd.
listed

original partner
in the pipe line.
It is also a big
gas and oil producer in its own"
right. Its reserves are presently
estimated at around $40 million;
and a contract for gas delivery to
was

as

an

cubic feet

which

the next 25 years,

over

should

produce, after de¬
and expenses, about
gas $40 million in cash. With the start
daily.
of pipe line sales, a more aggres¬
Quite a project, this, and power¬ sive exploration program may be
ful new factor in Canadian ex¬ expected here.
Fact is, if ;you
pansion.
Many large industries were to pick Just one security for
such as paper, nickel, chemicals, across - the - board representation
the Trans-Canada picture,
and steel plants will snap up this in
it
volatile fuel, and home heating, would no doubt be Canadian Delhi
There
are
now done mainly by coal or oil, common.
3,492,928
presents
a
terrific
prospective shares outstanding s el ling at
around 6%.— — - market..
In particular; Ontario,

April
a

Montreal.

to

million

625

<

d

a

million

these provisions were
the $80 million loan be

back

paid
T

East

on

and, finally, because of a number
of provisions slanting the project
more towards Canadians, the show
got on the road.

an

s.-

Carloadings

in the offing will
probably include $140 in mortgage

bonds, $65 million in convertible
bonds, and $45 million in common.
On
the
supply side the big¬
gest gas deliveries will be Cana¬
dian Gulf, Standard Oil of Cali¬
fornia, Home Oil and a lot of
smaller
ones.
They'll: start off
with a base selling price of 10

Steel

The

17%.

probably named town of Kapuskasing, Ontario, the line will run Trans-Canada of about 20 billion

to

The

a

(with

option to
buy) to Trans-Canada Pipe Lines,
Ltd. for 20 years.
From the im¬

tookla dim

government" making

cost of $120 million;

a

leased

and

many

view

■■

;

Thursday, July 5, 1956

.

:/k

New financing

reflections

Some

by the outlay of some $15 million
by five partners—Canadian .Dejhi
Oil Co. 24j/2%, Western Pipelines,
24%%, Hudson's Bay Oil and Gas
17%, Canadian Gulf Oil 17%, and

IRA U. COBLEIGH

Enterprise Economist

Ira

.

.

1L

transport velopment

chusetts where labor cutbacks in

parel industries

the

mining, automobile

and ap¬

reduced.

were

Fewer people filed initial claims for state
unemployment com¬
pensation during the week ended June 23 than in the preceding
week or the corresponding week a year ago, states the United
States Department of Labor's Bureau of Employment Security.

First claims for unemployment benefits totaled
193,700 dur¬
ing the week ended June 23, the Bureau noted. That was 3,800
fewer than the week before and 4,000 less than in the
year-ago
period.
*
'
The

natural

of

drop in initial jobless benefits claims occurred in spite
layoffs in the automobile industry, the report added.

new

Special reports from
fourths

of

workers

the

were

laid Off

called to Work.
The

states employing

seven

nation's

automobile

workers

during the week

an

than

on

that

only 3,000

and

6,000
re¬

were

.

number

of

autoworkers

laid

off

totaled 202,000 for the week ended June
was

than three-

more

showed

and

not

yet

recalled

23, the report said.

increase of 3,000 over the
preceding week
June 2, the Bureau observed.

This

but 8,000 lower

Secretary Weeks of the United States Department of Com¬
lying along the path of the pipe,
Another, smaller but quite in¬
teresting supplier is Canso KTatural o merce currently reports that a mid-year survey of key industries
should benefit enormously.
and
indicated "a continuance of high level operation in most areas of
Gas Ltd., with 3,139,790 common
much
disputed line gets under : Up to now Trans-Canada Pipe shares listed on American Stock
activity" during the second half of the yearr
way — an imaginative transport Lines, Ltd. has been brought along
Exchange and Toronto Stock Ex¬
Mr. Weeks! optimistic forecast was made despite the
predic¬
change, and now selling around ations of reduced activity in such key industries as iron and

dians.

So

now

this long-heralded

,;.Vf

-,V|

i *:

-■

1%.

A feature of Canso is its

re¬

ported position as the tegest in¬
dividual
holder
of proved
and

f-

developed gas reserves in Saskat¬
chewan.
It has a long term con¬
with

tract

We

pleased to

are

that

announce

Saskatchewan

Corporation; and
Trans-Canada
from

developed

Sibbold

SlEGMUND G. WARBURG

for

lying

sale

of

reserves

gas

in

the

field; and large reserves
the first 300 miles of

Another favored

developer

gas

to be Provo Gas Producers
Limited, listed in Toronto and

appears

have been admitted

as

effective

General Partners of

June 30, 1956

our

firm

selling around $2.20. With recent
exercise
of
options about four
million

'

shares

common

are

Including purchase
of certain gas holdings from Im¬
perial Oil in the Dorothy field,
Provo

now

has

it, too, has

a

a-

-

*. v»

*«

was

outlook,

made with the steel strike

men

Before the steel strike is settled, the country
may
tons or more of steel ingots. The shutdown is

There is nothing to suggest an early end to the strike.
way things stand this week,
weeks or more, it states.
Both

sides

miles

the walkout could easily

run

4

basic points, with length of
contract a relatively minor item.
Furthermore, they are both
smarting under the lash of public name-calling of the last several
weeks, it declares.
Dave

he

are

McDonald

of

apart

on

labor made

steel

a

figuring the industry would hold still for

big gamble
a

and lost,
big-time settlement,

Continued

on

page

July 2, 19l>6

Management

with consider¬

WE

ARE

PLEASED

TO

ANNOUNCE

THAT

Canada.
Other

ifi

nite
a/re

fi/eaAee/ to

announce

that

H.

Ward

member

new

Edwin

common

with

Pallesen, jr.

Walter

Sidney

L.

L.

some

Carey

George l.

Export

Gas

sells

at

Ernest b. schwarzenbach

Bailey
whose

13%, Home

Oil

'
-

common

tractive

at

13%

issue

new

(and

of

nye

detail are,
Ltd., with

shares selling around 6%,
Selbrun
Oil
&
Gas- Ltd.

stock exchange

Lefevre, jr.

Charles J.

investigate in

Canadian

Reighley

york

enterprises with a defi¬
place in the gas supply pro¬

gram, and which it might pay you
to

an

"

at¬

and

convertible

debentures, recently offered by
prospectus)
and
Dome
Western
Exploration,
whose
common
is

caleb

stone

,quoted at 8%, in Toronto and New

Parry

York.

HAVE

Altogether

haue /we n ae/mittect to

reserves

^e^terat

0<irtners/ufi

in

our

firm

Odd Lot Dealers

on

&

Doremus

the New York Stock

Exchange

West
now

19 trillion C. F.

pretty
which

DE Coppet

are

Canada

This represents a

stock
Trans-Canada

WALL STREET, NEW YORK 5,
Telephone DIgby 4-1000

JULY 1,

1980




N. Y.

DAY

BECOME

PARTNERS

pile

IN OUR FIRM

,

from

can

draw;
and when the pipe
actually gets
to pushing the
gas through, new
fields are certain to be
brought in
and

63

THIS

gas

placed at above

fancy

older ones
expanded.
This
Canadian "Big Inch" is just what
the
prairie drillers
have
been

praying for.
If

Continued

Smith, Barney & Co.
O,

enlarged vistas for
on

gas

pro-

page 27

The

to eight

billion

able reputation for successful pe¬
troleum
development
in
West

up

lose 17,000,costing the
nation 2,100,000 tons of raw steel each week, reports "The Iron
Age," national metalworking weekly, this week.
000

supply contract

with Trans-Canada.

is in hands of
>

survey

C. F. in recoverable gas reserves.
Provo has around $900,000 in cash
and

,

300

over

possible, since the

in the air.

now

outstanding.

Kuhn, Loeb & Co.

was

near

the line.

DAVID T. MIRALIA

He said that "no firm forecast" of the iron and steel

Power

contract with

a

steel,

nutou, home building, aluminum, copper and other metals.

Members New York and other leading exchanges

42

Volume 184

Number 5548

,.

i

.

The Commercial and Financial Chronicle

.

(65)

A
Vn&M •+«***;-Jf***'

Stockholder Proposals
The

status

of the

stockholder's privilege to have a;
"T®prbpo^al circularized to his fellow-'

\ •

•

questionable

via

owners

management's

proxy

which will come up
hearings^ is high¬
lighted
by
new
SEC-divulged
data. ;r These
show-' stockholder

«statements,

By A. WILFRED MAY
PROXY CONTESTS; AND CONTROVERSY
-The'

interest

"Fulbright
on

regulation,
-

^

enhanced

annual

rr

by

ballot

:j submitted; He
thp
tne

17)

to

Rankinff
Cu
v

■

the
a
"

Wilfred

on

at all, unless he

k;o

^ T"
proxiesTor

the election of directors fail to inform

the

stockholders

as

Bill

(thr

would

%

s'

TTnihricrht

-kJw*SL«!£2
bring unlisted

olc;rt

.

tt

shown

J

j

+v>q

ovictinn

rni00

flL °"®

stockholder proposals which have
„
opposed- by
management

(averaging about 50
u

a

year)

has

• ;

flnnrnUpH

p

j The 0pp0rtunity will be embraced at this time for exploration of the status of the public

thecases neither
»r equivalent

Z

T.

;54 to. 62j Under "}e existing rules,

which°F wi +h^° d° n0t vc?lunteer to disclose
be
snhipr?
he
P3ld t0

S.2054

which

nn

.

to- the

onor

tn

pending

1QRi;

.

^

j..

sturit J^h 4 S / 1 nominees; 87% do not
resoect m the
t' 6 p™c,pal occuPatl°"
respect to the 'f?
of
directors and
nominees;
and

May

%Q

•

that the number of proposals exeluded from 1954 to 1955 rose from

§- V tGr l*% °
porations in soliciting

l

a

a

£

d\rZ

near

eC ^

of

far tn

stockholders whose- proposals
^rnefc. ™ ud^ q »
'
™er?ts
,/ ?1Q?
during the first half of 1955 and

proposal.

a

nV tv,fl
at the meeting or takes.
other affirmative action to

some

forth

results
•

or not vote

anH

P

setting

.

A.

r

against

or;

appears

nfv
rency,

r

for

must either vote for thepro-:

posal

c « n a + ^
senate

Committee

solicitation; in 73%

proxy

c+

recently

(May

frustration from-the fact that the

report concurrent with

prior to

.the SEC's Re-

port

week's

or-[lum':>er G^vstockholdersventuring
10
Pr°P°sals
of the- cases, the identity of the over mG pas^^rtC?ie
lQif
nominees was not disclosed; and a?
' ^
-U^
Jfiondnr
in 52 of the casesreviewed, the
^
*
form of proxy gave the stock-' y^ar
1^5C?'
holder no opportunity to cast a afamst 52 in 1954,and the number

this :"week's

Committee"^hearings
contests - and ; proxy scheduled > to *'begin
; ^Thursday,
is

.proxy

!.

in

this

at

? proxy statement

stockholder

information of any kind was fur-

in

versus
management
nrooosal area
It must be

this

ticmP of1

^raorat<?dwcwSfnn nished to the stockholders in man- realized that effective support for
the corporate provision agement's solicitation of proxies such Proposals
onlv be
^ the election o£ direct0rs* The l^i^d and secured throu^h proxy
t lL''
Z
I
soliciting material has likewise statements; and unless they are
can

e

been'

Al^n

fnr

•

?

+

session. been found deficient in the giving

+

Aiso_ stimulating interest

nrrfoi„i„«T^en
to

pertaining
Jan.

17,

*

°I

and

expressions

of

With;

its

the

is,

0f information

lts,ruiles zation

contests,

last,

adopted
subsequent

[n

satisfaction

tnere-

on

.the more recent'-;
divulging ? by ? the Commission of
data
bearing
on
stockholders'
proposals

includable

in

manage-

X-14A-8),

Vnri^irrcr

t\

existing

f

'

^

-

Gross Deficiencies

:

via

^ v.

:

Annual Suggestion Box

■'.'*'/»
Under the present rules, man:y - •agement is required to include in

Fulbright

its

type of
some * other

doubt

no

inconsistent

foolish

^

^

V

situation.

earned

with

Problems

the

of

statement in supsecurity
holder's

a

any

proper proposal which it opposes.
But such proposals, irrespective
of their technicalities, are limited,

otherwise

and

material

port",

means ^r|ll be employed to remedy
this

-

-

'

'

-

Remedy'Called For'

not

legislation,

ment^ proxy statements (under

Rule

;:

A

consideration.

ex-

and voting
consolidations,

and

mergers
>

or

securities,

'

if

and

of new securities, ruled out of order and denied all

modification

on

of

included in the notice of meeting
proxy . statement,
may
be

regarding authori-

or issue

voting

change

by

and

so-^

con-

inflexibly to

Constitutional

maximum of 100

a

controversial

Other

:

-

i

still

open

should
the

Wilma

questions

be

lot,

re-introduction,

advance

ladies

the

the
to

to

is

four year wait.

»•••-

:,£

Paying the War Costs

;

for and

seem

7

;.

to

furnish

which

i

important
be

would

in-

the power of the

re-

islate is sufficient

quired

by ^ the
Commission's
existing proxy rules with respect
to

the

election

of directors, and
proposals
requiring
stockholder approval. With respect

significant

to election
e

lal

directors, such

4-ii

ma«

typically consists only of

notice of
proxy,

of

meeting and

accompanied

or

eral

f

reeulation

g

-

P

After

the

,

a

by

corporations,

almost

preceded

virtue

of

interstate

its

is

Commission

ther in this

the

all

of

charters,
to

power

necessarily present
necessarily present

by

to
to

his

entail

that

for
bis

its

own

shouldering

Co.*120
Broadway, New York City, mem«?
bers

of the New York Stock

change,

department. Mr. Bloom
formerly vice president " Of
Public

to be called

National

H

is

contended

Bank

&

eo
go

management's

accuracy

devolving ;on the chal¬
lenger of management, without
any
reassurance
of
reimburse¬
ment, by itself tends to^ concen¬

Two With Jobin Inv.
(Special to The Financial Chronicle)

ST.

trate active dissent to individuals

according

to

inappropriate

PETERSBURG, FLA.—Floyd
Kneisly and John M. Rule, Jr.

D;

cri¬

are

with

now

the great Investments,

possession of

teria, as
financial

wherewithal,

or

Gerard

Ltd.,

R.

242

Drive, North.
personal
motives
("raiding") which are so widely
Francis I. du Pont Adds
decried.
Perhaps the anti-man¬
' (Special to The Financial Chronicle)
agement faction could be reim¬
CHICAGO, ILL. — Paak Shing
bursed for contest expenses if it
Wu has become associated with
succeeds in winning a minimum
Francis
I.
du
Pont
& Co.,
208
proportion of the vote fixed at
South La Salle Street. '
>
j
less than a 51% majority.
.

The

*

manner:

fiduciaries,
ever

of,^ voting

'

who

by

becoming

are

important,

more

will

be

weighed.
Approval

§ Joins Glore, Forgan Co.
(Special to The Financial Chronicle)
:

CHICAGO, ILL. — Burton M.
Eggan- is
now
connected
with
Glore, Forgan & Co., 135 South

of the Multer Bill
bring banks under
the SEC's proxy rules, is again
being urged by Lewis D. Gilbert,

which

would

Salle

La

Street.

:

•

•

With Reynolds & Co. ■:,!
(Special to The Financial Chronicle)

CHICAGO, ILL.—Walter Rubinson is now with Reynolds
& Co.,

;

South La Salle Street. He

39

tory, and not discretionary, solici¬
annually.

tation of proxies

formerly
Co.

with

Bear,

Also

being re-agitated by Mrs.

:

that

iZ
re-

/i./eaAect /o

awe

mr.

annoanee

t&at

james e. osborn II
(New York)

and

Mr. Seymour h. knox III

We Are Pleased to Announce that1~
,

1

(Buffalo)

'

Zia/ve leen admitted ad

general ^/a/drterA

cawftwm, amd

■■■■

•

mr. d. stewart patterson £
(Montreal)

Has Joined Our

Firm

Aai /teen attmittd ad
as

a

I/imtted 0adner-

a

Registered Representative

Dominick
14 Wall Street-

Cruttenden <P Co
m
209 S. LA SALLE STREET

•

j

*

CHICAGO 4, ILLINOIS

New York 5

&

Dominick

Marine Trust Co,
...

Canadian

Buildings,

Buffalo 3

Affiliate

DOMINICK CORPORATION OF CANADA

DEarborn 2-0500
•

•

•;
•

y

•

•

WEIIBfRS NEW V.ORK STOCK EXCHARGi. AN& OTHEft PR1NCIP4I




6^

'

"

•

v

360 St.

James Street W, Montreal

was

Stearns

buttals.

PHILIP T. COLLINS

Jobin

Beach

with

compensating

ife

y: 'f;

the

Company.

practicable. The enormous

^ fif"

JorJn®
of

furfur

area.

was

Trust

outlay

great

further

power

Ex?

of the invest¬

as manager

ment

would

of

asso¬

ciated with Sutro Bros. &

position;

on

.

Sutro Bros; & Co.
£ Jacob Bloom has become

expense,

regulate

the

commerce,

out

from

bewilder¬

securities
shareholder

have 1 State

furnish

of

pointed

electioneering

all, if the Congress
issue

fuHher

lay-woman

problem

management> with the cost defrayed from corporate funds, can
exert vast additional pressure in

public in-

a

,.

of the corporations studied by the
not

Ir is

incidence

the incidence

which

by an annual report. At least 23%

did

of

form of

a

restrictioirVun

the tehgth of management's reply.

matters, which have
terest.

of

basis for Fedthe

a

of Proxy contests and other proxy

regulates

lack

complete

Congress to leg-

the

Jacob Bloom Joins

matter; in contrast, to the

t

failure

aid

approval. "* The

plumping for a
society" type of help
are

?

The SEC reports that the studypossibility of enacting such uni- words. • In' most cases i this pre-; the volunteer "Protector" of the
of, proxy soliciting material cir- form
community
of
public
legislation necessary for the vents adequate; education of the nation's
culated
by
unlisted
companies, Federal Government's conta*ol can lay stockholder rank-and-file on stockholders. The same quarter
has demons t r a t.e d a
general presumably be ,managed. Surely the
is continuing to urge the manda¬

formation

and

might

ment.

warranting1 consideration;
is the manner of shouldering the
great expense
involved
in the
waging of proxy contests. Equi¬
table restriction on
expenditure
by the corporation on behalf of
the management side may be im¬
practicable. But in the handling
of the anti-management agitation,
would

which

proxy

proxy

Also

measures

of

rescue

their

otherwise
subjected

year,

re-introduction

*

a

third

the

pension

funds

also

Vlegal

now

requires 6% the second year, and
10%

of

Sharehold¬

bindingly benefit management in

3% favorable vote to be

for

covering

retirement

,

eligible

Women

a place for a write-in.
objects to riders on union

contracts

uary,'.1954, a non-management
proposal, which used to require
a

with

-

And she

,

President

of

is an uninstructed secret bal¬

ers,

setting of minimum votes as a

prerequisite
for
re-introduction
of a proposal before waiting four
years.''
*•;
Under the; rules revision of Jan¬

merely

Soss,

Federation

the years, which
resolved, - include

over

now.

5

-

&

8

The Commercial and Financial Chronicle

(66)

rate

What About Real Estate Ciedit?

the

Oklahoma City, Oklahoma

L

j

,

banker predicts mortgage lending and building busiaess is headed towards a 5% gain over 1955, and that there is
plenty of money available for sound mortgage loans. Mr. Hogan
avers:
(1) we have gone far beyond the concept of helping
people who otherwise could rtot own their own home, in the
course of emphasizing the modern conventional mortgage and
in de-emphasizing the insUred-guaranteed mortgages;
(2)
flexible intetefct frate is the solution

'

■

'!■
;

.

banks

be

can

bank

-

♦

r

let's

not

this

world

new

let

it

to

go

of

ours:

heads!

our

*

Keep
;■

a

in

this

mat

is

only

phase or the busi¬
Lets not forget the

temporary

ness

cycle.

exuberance of 1929

7

and tne deso¬
lation of the black days tnat tollowed. LET'S NOT BE TRAPPED

AGAIN! x;Surely > we ve
learned
lesson. ) Surely, better Public

r

'

bur
-

Relations
ment
25

new

and

Increased

manage¬

know-hbvv»,; during the last
have

years,

orougni

.close

us

,.

-

.

..

t

t

,

Such is the

,

£

h

o r

Just

t

Jnd ^
wi^fctrv Qa

years.

think

of

+

j

case

of the guaranteed

f

and insured loan!
The

I United

States

Supreme

Court has ruled that anything that
7
government subsidizes, it can

'

-

which

way

,

v'
■ enougn to Mr. Average Man, as a
THEM KNOW that YOU HAVE
Mortgage business is big
It all depends on the volume of customer, as a
friend, and as a
business!
It's big to the tune of new construction!
A SAVINGS DEPARTMENT and
* -.
voter, so that when the chips are
$130 billion, which is the actual 77 But with five months of the
that you want their accounts
very
down,
we'll
find
him. in
our
dollar value of real estate mortmuch! Roll out the plush carpet!
year already behind us, it looks
corner.
^
Tell your customer about the con¬
like
full-steam
ahead, with the^
But, to get on with the story
now held
venience of one-stop banking and
by
possibility of chalking up a new
wbanks, qt the present time, do
ell types of.record.
ho\y simple it is for him to SAVE
In.. f act, ~ the Associated. not own the enormous
blocks of *
investors. $130
where
he
BANKS.
Invite
7General Contractors of America
him,
short-term7governmentr b-o h d s coax
him, urge him, GIVE HIM
billion! It's a m
.9 ■ predict-a total volume of $60 bil- that
they once owned.
This is
"THE" WORKS!; 7
staggering,
}H°n for ne^
?on,s^"c^lc!n . fn? the type of bond that can be painail-time high,
.property repairs im 1956, provided, lessly
Three Mortgage Categories
sold/marketwise, in oroer
an increase of
of.' course, that there is a con- to recruit funds
for reinvestment.
: - Mortgage
loans, fall into three
351%
in
10
tihued high level of economic ac-

The

a

benefits him concretely and in the

course,

,

mind

restitution in

actual

your

you£ land of opportunity
deposits—for new money!

The knack, of
tracting brand

.

in

pensating him for those lost years,
be sure that we're making

let's

7

Savings Department of
is

Thursday, July 5, 1956

long v run.
Let's
not, V through
hamstring
lies in at¬ socialistic, legislation,
him with> a stultifying form of
new
savings cus-*
tomers and wangling larger sav- government, load him with debt
ings deposits from old customers. and taxation, and deny him the
This is a fact
which
even
the freedom to grow and prosper as
an
individual, even7. though he
largest/metropolitan
banks
are
now
recognizing, perhaps for the may represent a third of the vot¬
first time, in a realistic, practical ing population.
^
Sometimes measures adopted to
way.
'
v
meet an emergency
turn out to
WHAT WE NEED—is a posi¬
be a political football. They prove rtive, hard-hitting program, packed
themselves too convenient to be
with vim, vigor, and vitality, in
order to educate the public oh the easily discontinued, long after the
advantages Of saving money in a emergency has ceased to exist. In
BANK. We need a repetitious pro- fact, there's a universal tendency
to add to these measures and to
gram, factual and full of imagina¬
extend them
into a complicated
tion, so we can sell our BRAND
network of rules and regulations |
NAME to Mr. and Mrs. America.
which
ultimately
become
per¬
Now that you're
ready to go manent and so-called indispen- [
after your own
customers, LET sable fixtures in our economy. I
for

i

selective

more

Savings

Department

^

The

finding himself in

nowadays,
in
their
investment
policy, and less fearful of com¬
petition.
.
But, just a word of caution,
here

fronting fixed interest rate mortgages; (3) open-end mortgages
might bfetter be ieplaced with financing through ^ Instalment
Loan Department, FHA Title I, or a modernization loan plan
"of our own so as to save the cfrst of insurance"; and (4)
many factors poitit ericdtiraginfcly to the underlying strengths
in the housing market for the long pull.

)
7

■

the competition con*

to

is

>

'

driver's

So

Oklrfoma

7

>

seat, for a change.
We've got something that people
i want
very
much. It's MONEY!

'

President, City National Bank and Trust Company

banker

the

By DANIEL W. HOG AN, JR.*

)v

taking their toll of the -.7;Vj Stresses Banks'

are

money supply. The demand; for
loans is terrific! And as a result,

...

the

control. Herein lies the danger of
the entire guaranteed

and insured

.

loan

set-up. Because the govern- L
ment irisures thesb loans or gudr- ^
antees them, there is the constant
.

temptation to change the rules of 'r
the game according
to political»

expediency, to depart further and
Furthemore, 7-banks ' cannot7 be separate
categories,
namely
blamed for their hesitancy, to take VETERANS ADMINISTRATION further from the precepts of Free

$2l*SS$thafthe stiff
medium

Enterprise, and to encruacn deeper
and deeper into the banking field.
7. Therefore, it behooves us all to
toward a 5% eain ovter 1955 and -?uItinS reinvestment is at a tidy FHA LOANS, which are insured
scrutinize with an eagle eye every
strength, and
IJJ1oil
increase in interest.
by an agency of the government,
energy,
and
2 ^a
it£
So we see that mortgage loans, and CONVENTIONAL LOANS, related bill which is dropped into vigor into the
the Congressional hopper,.
7
7
t 9nn nnn at fixed rates, must compete, .not ~whicti. we might' say/ are oil-the
economic
We talk so much about presentDan w
Ho«n. Jr
only with commercial and fnsfaU- house. It's a fact that reliance on
bloodstream
*
*
day creeping socialism! Well,
fr0m last vear
but In all orob
ment loans' but also with bonds- the guaranteed and insured mort¬ there's a
of our great
country, circulating
Housing Bill pending in and industrial There are some other factors at gage continues to grow at a
dispro¬
mbney and stimulating business. ab
?na ? k
work which make mortgage lend- portionate pace. And it's signficant Congress today, which, if passed,
$130
billion
at
would
work, building
spur
socialism
on
to a *
up
'ing a little bit less appealing and that most of this
growth has taken
homes, creating jobs, expanding * Z
gallop. There's no need, whatso¬
7which have a tendency to throw
plants, and raising the standard
Getting down to where we live, a nionkey wrench into the build- place during the last 10 years. ever, for liberalizing VA mortgage
J955 produced a bumper
of living, from boast to cbdst.
crop of
It
is another year when banks jng Up 0J the
terms any further. Quite the conmortgage portfolio, both FHA and VA
takes this kind of
applications
big money to will find;, a brisk demand for trary! We're trying very hard to
and
1956
promises
to
be
no
support a
booming construction mortgage money. BUT, something Argues for Flexible Interest Rate
ease the government out of direct
slouch. Where, are we headed?
industry, which, along with its 'NEW has been added: MONEY is
But, there is a solution, and
lending, out of competition with ■
The original purpose of FHA was
twin, a thriving automobile in- no longer growing on trees! And that solution is a flexible
private enterprise, out of Fanny
interest to
help people who couldn't other¬
dustry, is vital to the health and Rfn. ,fs >are no longer
treating 7rate! We can't very well ignore wise own their own homes. But May, in fact, out of all home
growth of our unique American meir brains out for loans. No sir! the fundamental
law
of
mortgage business. But proposed
supply we've
gone far, far beyond this
economy. In fact, the spectacular, They're out beating the bushes and demand.
For instance, when
legislation in this election year is
concept! Furthermore, down-pay¬
economic splurge of 1955 has no
* deposits. The overwhelming money was
demanding even deeper entrench¬
easy, rates were low. ments are
peace-time equal. Production ca- demand for commercial loans, the jvjow
vanishing and terms are ment of
that the situation is somegovernment in business.
beginning to look like an epoch
pacity fairly bulged at the seams! Pu^llc s c°otinued interest in con- what
Incidentally, have you written
reversed, mortgage appii- in
Banks have a big stake in this
geological time.' .'
;
EH"???7 Soods, and the fact that the canfs will have to bid up for tneir
your Congressman lately to tell
mortgage business. As a matter of f1Ed ls. PuttlnS on the brakes, $11
jOf course, there's a definite him how
money.
Then there s another asyou feel about govern¬
fact, in 1955, banks, alone, held
place in our economy for the in¬ ment hand-outs?
?.pour- iold, water on the pect to be considered. Every7.
sured and guaranteed loan.
mortgages amounting to $38 bil- temptation of banks to go overFor
thing under the shining sun has
lion, an increase of over $5 billion
instancy, use of FHA and VA has
Voluntary Home Mortgage
s Nourishing mort- gone up in price except "the. rent
In one year. No. bankers were not ^ge market.
developed a broad, volume mar¬
:
ori mone,y.
; ; Credit Program
,
:
At last, we've had a
sitting on their hands last year!
ket, enabling mortgages from a
-This is a healthy condition! In break!
The
Did you know that ABA's Savartificial
>
grip has
On the
contrary, the record shows reality, the tensile strength bf
rapidly growing community to bs
finally been loosened and monev
ings and Mortgage Division has a y.
that they were out in the thick the current
readily sold in more stable com¬ committee whose
money market is in
is again worth
specialty is Real
something, which
ol it,
planning, developing, build- precise balance.. In other words, seems
munities, where savings funds are Estate
only fair,
Mortgages? Not only does ing ! their communities
chafing at the bit for investment. this
through there's plenty of money around 7 There's no
hard-working committee keep
question about the
mortgage lending — and making for good, sound mortgage loans,
4,200,000
GI's
have
already up with new developments, trends,
availability of monev the monev
money, to boot.
~
?
taken advantage of VA loans dur¬
.y/., h7 Consequently, growth in the moi^- is
and
activities
in
the
mortgage
there, all right: It's simply a
ing the past 11 years. But there
7
gage portfolio for this year will matter
of
the
wiiiinfrnp««
of
Mortgage Lending Prospects ' still be
field, but it also keeps posted on
are
healthy and the higher
15,000,000 veterans, who are
to
the
pertinent Federal legislation. It
Now what are the prospects for interest rates will make
still eligible for loans before the
the effort
long-term monev market and to
analyzes each bill and then pre¬
Act expires in
1957 for World
pares
testimoney to be used in
c ■:
War II veterans and in 1965 for
«A. address
appearing
before
Congressional
by Mr. Hos.„ before the ing business is
Korean veterans. Today, VA loans
using a mint of
And' just where is all of this
£4th
Annual
committees
in behalf
of sound
Convention
of
/vmencan
American
inuuey
money
these
uiese
days
uays
ana
and
that availahle mnnPv
mat
may be written for 30 years, at
«hm 1
fr-nrr, •>
Institute of Banking,
banking.
Dallas, June 4, 1956. periodic boosts in the
rediscount
41/2%, for 98% of appraised value,
How ig ft getting
The answer of private enter¬
the
and with a guaranty of 60% of the
lending stream of the bank?
prise to the
lack of mortgage
mortgage loan or $7,500.00, which¬
It's coming from the
credit in small, remote communi¬
regroup¬ ever is the lower.
ing of dollars! It's coming from
ties is the
successful Voluntary
These Notes were
placed privately through the undersigned with
Regardless
of
the
guaranty, Home
the collection of low-rate
Mortgage Credit Program.
an institution
loans, sound banking
purchasing them for investment.
principles dictate
from maturing
The
National
Committee of
investments, from that a bank should
weigh each
payments of consumer loans,
VHMCP is composed of a group
VA case on its own
it! $130 billion

lcss involved in selling

maturities

if the

even

MKBH

re-

LOANS, which
agency
of

.an.

guaranteed by
the* government,

are

onr££ttin

Lnlfdll fil dthtw

£bilitvCommercial
^ktructi0n wlU take
...

.

n

thi
the

.

v

,

.

bba^3^r£°ofay

,

-

.

,

-

.

_

moitgage^ applicants

==?» M'"1 '* *M,?

S^t

"S.iK-no-Sffu,.,

'

01

r,«

ba^k Into

merit and

from

^increased deposits due to

highef-

wages, and from funds at¬
tracted
from
other
institutions.

$10,000,000*

And

Elliott Company
4!/2% Promissory Notes due 1971

there's

A

Fed

to

good

banks

many

tap

for

look¬

are

share

ket,
the

they

of

the

must

SAVINGS

mortgage

woo

a^d

mar¬

pursue

Look

ahead

out

interest

Marriage"

smaller

the

F. Eberstadt

&

Co.

on

chicken

29,

1956




Hit

Parade

other

hand,

and

fame.

unlike

the

egg, there's
no
question as to which of these
two, comes first. Very definitely,

it's
June

of

the

the

it's

no

money
on

it.

that

until you

you

get

he find

loan

accent

tod

with

the

veteran!

him that the extra
af pretty stiff price to

th| respite of sligMly
moftthly payments. Will

himself in 30

years

paid off, but with

a

wi^i

housing and mortgage

hands

made

ice

of

all

made

house in

of

loans

have

been

private lenders which
might otherwise have been made
direct by the government. It's true
that

by

banks

and

panies have done
job, and
of

us

direct

it's

that

insurance
a

to' the credit of all
the

need

Administration

loans

com¬

ban?-up good

has

for
to

the

make

just about dried

up.

Government
We

thousands

-Veterans

a

shambles?

can't lend

your

to

to

is

for

pay

Savings Account, because
secret

NOT

available.

Point

Yes, Savings arid Mortgage go
together
just
like
"Love
and
Yet,

and

long terms simply because they're

DOLLAR.

of energetic

bigwigs, from both business and
Each
month, they
conventional loan. This is a good government.
meet
to
discuss the
perplexing
way to stay out of trouble! And
problems which confront the in¬
speaking of trouble, the banker
dustry. This program is working
should
counsel
with
the
young
out
astonishingly well! In fact,
veteran, NOT to get into debt over

ing the situation squarely in the
face, realizing, of course, that if his head
they are to take care of their
full

*$8,000,000 has been borrowed by the
Company. The balance may be taken up by the
Company on the terms and conditions set forth in the Note Purchase
Agreement. •

the

temporary needs.

as

carefully as it analyses the risk
margin of safety in making a

and

"Open-End"

Control

appreciate the sacrifices

bv the veteran
his

country.

in the

But

in

serv¬

com¬

Mortgage

Question

We'll be

about

hearing more and more
the
"open-end" mortgage
Continued

on

vaae

41

Volume 184

Number 5548

The Commercial and Financial Chronicle

...

(67)
corporate

Pending Legislation and Problems
Regarding Proxy Solicitations
J.

By

SINCLAIR

Chairman, Securities and

about

their

identity

ence

officers and 10% stockholders;

veloping

lected.

investor interest;

vor

January, 1956 the Securities and
Exchange Commission adopted re¬
visions of its proxy rules designed
to

clarify and

make

more

specific >the

.

intent
rules

of\the

The

of: di¬
The

prevision

con-

stituted
amendments
the

J. Sinclair Armstrong

adopted under
Action
14(a)

Y

of the Securities

1934,
the
on

Exchange Act of

applicable

securities

national

Prior

Com-

mission's Reg¬
ulation
X-14,

•

to

corporations;,

of which

listed

are

securities .exchanges.

to

these

amendments

adopted by the Commission in
January, 1956, the proxy rules did
not

contain

provisions
specifi¬
directed to the many dis¬

cally

closure problems arising in proxy
contests for control of listed cor-

porations.

The rhore general disclosure requirements of the
rules,
which

were

primarily directed to
solicitations for the usual meeting
of security holders for the
pur-*
of electing

poses

taking
rate

other
action,

directors

or

appropriate

for

corpo¬

applied

were

on

a

case-by-case approach to the problems

which

in

arose

proxy

Currency.

I addressed

reviewed

revising

the

that time.:
the

rules

going

was

.

Commission

from

of

1954

be

yeafCthe

of

Corporation
point of view

the

proxy

that

reviewed

1 ment be submitted for
eration.

It

however,
ence

-in

felt

was

that

to be

proxy

the

by the
Finance
the

of

its consid¬

at

that

additional

time,

experi¬

gained under the rules

effect

during

;

the

1955

wouldP assist in the

season

development of the

submitted

1955.

contests

new

which

rules for

would

be

changing patterns of
solicitations particularly in

contests for control.

proxy

first

.

rule revision proposal

announced

sion release

in

by Commis¬
August, 1955,2 but

prior to that time

I had discussed
the problems and some of the
pro*An

address

Tenth

ican

We

also

considered

committee

all

by Mr. Armstrong before
Meeting of the Amer¬
Corporate
Secretaries,

of

National

1 Securities

5276, Jan. 17,
2 Securities

5212,

Obligations

of

Securities,

on

from

ing

Stock

that

State

Market

Commission's

Study.

•

•

•

rules, in

~

Continued on page

a proxy

|

'

-

•

•

<

.

Overseas Branches,

-

„

/

'
•

•

Offices, and Affiliates Y.
•

•

•••••••••••

•

•

action

in

eral years-concentrated

.Acceptances,

study and

■

in connection with proxy contests

of

the

ad-

in

V.

.

Other Assets

.

Total

.

•

V

.

•

.

.

«

.

.

.'

•

to

elicit detailed information
deemed

persons

ticipants in

to

be

-

64,044,007

.

.

v1

Portfolio

.

.

.

.

.

Capital

.

.

.

.

and

Other

...

.

26,060,635

.

.

.

.

.

35,125,845

6,000,000

.

$200,000,000
(.10,000,000 Shares—$20 Par)
fPi
.

-

.

.

.

.

3,558,930

Surplus

6,763,953

..

22,042,500

.

Interest, Taxes, Other Accrued
Expenses, etc
.
.

34,543,905

.

Y

.

.

7,000,000

.

68,046,170

11,370,647

for:

Dividend

.

.

$79,416,817

.

Yv* Unearned Income

15,000,000

.

.

•

f

\

:

v

' ''

r

-

par-

Chairman of the Board
HOWARD C. ShEPERD

Undivided Profits

are as

,y.

.

Total

$6,969,629,898;

«•

v..

300,000,000

.

.

62,634,360

562,634,360
$6,°69,629,898

•

of June 25.

'

member federal deposit insurance corporation
'*■■■■

Chairman of the Executive Committee
ALEXANDER C. NAGLE

:

f \

...

.

:

;'

:

President

Vice-Chairman of the Board

JAMES S. ROCKEFELLER

RICHARD S. PERKINS

-

proxy contest,

a

Bills.

Foreign Central Banks

Reserves

Figures of Overseas Branches

addition, the rules were
amended more precisely to define
about

to

$6,249,720,388

.

1519,982,422 of United States Government Obligations and $28,118,300 of other assets are pledged
to secure Public and Trust
Deposits and for other purposes required or permitted by law.

In

and

39,510,743

.

.

{In Foreign Currencies)

3,477,523,982

,

Branches

..

.

T\Y

Unearned Discount

t

with

.

Accept¬

on

ances in

:

Due

124,112,626

Securities.

proxy contest cases under the gen-r
eral rules as they had been in ef->

feet.

,

467,182,961

International

Transit

.

Less: Own Accept-

5,576,158

for

.

.

;

.

.

....

and

rrinistrative

interpretations and
practices of the commission in the

Liability

......

Banking Corporation

Items

The amendments reflect in large
codification

of

Bank Premises

during that period.

Deposits

.

Federal Reserve Bank

in

Ownership

review of soliciting material filed

measure

.

Discounts

and

Stock

$1,611,279,820. >

ances and

Other Federal

Customers' Liability

adopting
the revision in January of this
year was the culmination of sev¬

of June 30, 1956

as

1,113,532,813

.

,

.......

Real Estate Loans

the

Conditio^

LIABILITIES

Banks

from

Municipal Securities

and

Loans

1955

Thus

Due

Other Securities

bearing

Committee's

of

Agencies

the proxy problem and result¬

on

In

the
my

announcing the adoption of '
revision

in

January,

stated *

I

belief that the amendments of

the
proxy
rules represented an
important step forward under the

Federal

Securities Exchange Act
protection of investors in se-^

mrities

listed

ties exchanges.
control

cf

represent

national

on

Aug.

Park.

Exchange Act

No.

Exchange Act

Release

No.

23,

1955.




v

Proxy fights for

corporate management
fo~ the power

Head

administration of

disposition of
significant aggregations of cabital
bv

Office: 22 William Street, New York

Affiliate of The First National City

to direct the use and

corporate assets
in turn, are

Statement of Condition

These,

as

Bank of New York for
trust

separate

functions

of June 30,1956

represented

by billions of dollars
outstanding securities held by
public investors. The savings of

ASSETS

of

the

public investors,
channeled
through our capital markets into
the securities of corporations, have

developed.

As

of the

owners

corporate enterprises, public inves¬
tors should have the right at the

Very1 least under

ou~

free

enter¬

prise system to be fully and fairly
informed about the interests which
seek

to

elect directors

and

about

Cash

Due

and

Banks

from

Obligations

of

or are

offered bv others to

assume

responsibility for management.
owners

of

the

businesses,

.

.

.

,

State

and

$ 33,894,180

Deposits

Reserves

2,997,127

Municipal Securities

Other Securities

,

.....

.

$106,592,409

79,587,896

Other Federal

17,168,818

.

.

,

.

.

2,602,330,

.

.

.

and

1

Real Estate Loans
Stock

in

...

and

Securities

Federal Reserve Bank

.

.

Bank Premises

Other Assets

.

.

Capital

$10,000,000

10,000,000

Undivided Profits

Advances

6,014,327

.......

1,961,097

,

...

{Includes Reserve for Dividend $500,952)

Surplus

Loans

12,917,871

600,000

2,399,940
........

Total

4,313,218

$145,524,607

.

Total

.

.

32,917,871
$145,524,607

.

$9,491 ,<585 of United States Government Obligations are pledged to secure
Public Deposits and for other purposes required or permitted by law.

of savings
public investors have a

great stake in the outcome of all

.*

..

Agencies

with billions of dollars

invested,

LIABILITIES

.

U. S. Government Obligations.

the nominees who offer themselves

As
Release

1956.

any t

securi-

contests

Annual

Society

Yosemite

•

U. S. Government Obligations

testimony, proceedings and re¬
ports of the Senate Banking and
Currency Committee, and its Sub¬

and

the

.

new

ASSETS
and

re-

required by the new
Schedule 14B with respect to man-

removal of di-

or

Office: 55 Wall Street, New York

Offices ifl

Statement of

the

proxy

was

•

Cash, Goi.d

is

set

quired by a new schedule provided by the rule (Schedule 14B).
if the solicitation is by manage-

uniform

The FIRST

Greater New York '

in

suited to the

A

must

agement participants must be filed

Under the

We received and

provided
the
capital
funds
by
which the American system of fr^e
private enterprise has been built

proxy

corporation

statement

well-con¬

many

comments

problems presented by proxy con¬ represented
tests and that proposals for amend-. and credit.

then

the

for the election
rectors.

75

,

14,1955, and those advanced orally
at a public hearing held Nov. 17,

for

-

the

directed

rules

Division

-

~

.

end

in August of that

proxy

of

This

ofNew

writing upon the original August,'
1955,-amendment proposal and the
modified proposal published Dec.

annual

your

forward. I will review that briefly
and tell you of our progress since

,

listed.

forth the detailed information

con¬

meeting a year ago at Bretton
Woods, I told you how our work

season

security

se-

anv

formation

Head

the public
August, 1955, we

had the benefit of

curities exchange with which

NA.TTO VAI CITY BANK

;

Following

announcement in

Commission and each national

than did the prior rules the types
of disclosure required in contests

llll#®lllll|

Banking and

on

statement

January, 1956 Proxy Revision

When

At

revised

Securities of the

Senate Committee

a

ground rules governing pre-proxy
statement solicitations, a signifi- ment
in
opposition to
another
development of recent years, group or in anticipation of
oppoand defining in more precise terms sition
by another group, the in¬

in February, 1955, before
Chicago Chapter, and also in
June, 1955, in my statement to the
on

unless

concerning each participant in that
solicitation is first filed with the

cant

your

Subcommittee

commenced

back¬

*

rules estab-

lished for the first time

posals

tests. •*

in

The revised proxy

counter-

information about the participants,
both the nominees for election as

and (3) the problem of de¬

and

^

tlj,e stockholders' fa¬
and

cam¬

information

TT«iT>„I^
U
farm Rujes for F rst Time

rules are designed
protect public investors
in
the
exercise of their voting
rights by assuring detailed factual

from the public.

or re¬

rectors.1

to

se-

particularly true
as opposing fac¬

statements

contest, no solicitation of proxies
by an opposition group may be

par¬

election

sidered and constructive comments

for.* the

moval

to be

to aid and

*

con¬

to

tests

election

is

corporation

are

fusing than enlightening.

they

as

relate

and

insufficient information."

After two years of intense study,

the

statements, charges and. counter¬
charges, sometimes are more con¬

(2) the

1956 proxy revisions are designed to aid and
protect investors'
voting rights by requiring information to which they, as owners
of business amounting to over billions of dollars, should be
entitled to, and that the Commission is scrupulously neutral
and does not violate freedom of speech in
preventing false,

in

to advance the

of

their

ground, their interest in securities
of
the
corporation, and certain
other important information hav|ng a bearing upon the contest.

contests,

tions vie for

workable rule preventing brokers from improperly
using their customers' voting rights. Avers that the January,

or

ability,

This

in proxy

a

misleading

and

interests

and its stockholders

Commission,

(1) pending Congressional legisla¬

substantial public

actively

portance if persons best qualified1,
by reason of background, experi¬
best

deferment of Section 16(6) application to these firms until
more is
learned regarding short-swing trading by directors,

those

includes

"insider

which there is

and

This

reporting, proxy solicitation,
trading" provisions of the SEC Act to about
1,205 firms not listed on a national securities exchange but in

i

.

directors

paign.

tion which would extend financial

and

careful

ticipating in

Washington, D. C.

SEC Chairman discusses:

The

intelligent exercise of their
voting rights is of the utmost im¬

ARMSTRONG*
Exchange

elections.

and

1

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Chairman of the Board

Vice-Chairman of the Board

HOWARD C. SHEPERD

LINDSAY BRADFORD

President

RICHARD S. PERKINS

8

Chemical Corp.;— Memorandum

Food Machinery &
&
W.

Dealer-Broker Investment

Co., 120 Broadway, New York 5,
R.

Wyo. P. U. D. No. 2

York

New

Purcell &

A.

Co., 50 Broadway,

Rate and Financial

Bank

randum

Associates Investment Co.

on

Certificates — Semi-annual appraisal as of
30, 1956—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.
Also available is an appraisal of City of Philadelphia and Philadelphia School Dis-

Hammill

June

r

Saskatchewan

Bulletin

—

—

Japanese Stocks

Industrial

12th

&

&

Charles

Lome

—

Industry—Analysis—With particular reference to Inter¬
Co.

Canada

of

Ltd,

5, N. Y,

•

-

v

Falconbridge

third

annual

Alumni
School

Dean's

Day

Association
of

Business

Election Year—Proceedings of

of

Business

Administration

Harold

610,

University, Room
Y.—paper—$2.00.

Graduate

—

115

York

market

&

showing

an

up-to-date

•

performance over
Bureau,, Inc:, 46

Front

4, N. Y.

:
—

Department, Albany, N. Y.

,

.

Dreyfus & Co., 50

Aluminium

Company

Ltd.

111

—

Lerner

&

Co., 10 Post

—

Securities

Corcoran Street, Durham, N. C.

stock, at $5.75 per
being made today (July

is

5)
by
an
investment
banking
syndicate
headed
by
Johnson,
Lane, Space & Co., Inc. Of the
total offering, 149,000 shares are
being sold on behalf of the com¬

51,000. shares on behalf of
selling stockholders.
Net proceeds from the sale of
its 149,000 shares, of the stock, will
be used by the company for the

convertil^e preferred stock;
the

and

to

reduction

of bank loans,
working capital.
H. W. Lay & Co., Inc., with its
principal office in Chamblee, Ga.,
is engaged in the production of a
wide
variety of food products,

Paper Company — Analysis in
issue of "Business & Financial
Digest"—Loewi &
Co., 225 East Mason Street, Milwaukee
2, Wis. Also in the
same issue is an
analysis of Bank of America, N. T. & S. A.

current

such

increase

potato

as

flavored

Dominion Steel and Coal
Corporation
Jackson &

Limited—Analysis—L S
Company, Limited, 132 St. James Street, West!

etts,"

and

wiches,

&

4

'

■

nuts

:

"Missile Makers"
♦

Troster, Singer
2400

Y.

Security

Dealers

& Co.
Association

NY
74

Trinity Place, New York 6, N. Y.




peanut

cookie

sand¬

and

salted

pea¬

nuts, all of which

DEPENDABLE MARKETS
I'

▼

N.

Puffs,"

sweet

other

Highlights No. 32

Members

barbecue
"Fritos," "Corn-

popcorn,

and

'

•

1-

376

meeting

Co.,

Nov.

annual

*

Statler

the

at

Hilton

^

3-6, 1957

(Hot Springs, Va.)

ciation Annual

Asso¬

Convention.

17, N. Y.

Investing
•

With Vance Securities
(Special to The Financial Chronicle)

GREENSBORO, N. C.—Thomas
M. Vance is now with Vance Se¬

Corp.,

Corporation,

curities

'*

Jefferson

'Building.

Two With Eastern Sees.

attractively

DEMPSEY

packaged

in

JACKSONVILLE, N. C.¬

double cellophane bags and wrap¬

Margaret E, Stinnett and Walter
ping materials or in tin cans. M.
Thompson
have joined the
Manufacturing plants are oper¬ staff of Eastern Securities Cor¬
ated in Chamblee, Ga.; Jackson¬
poration, 331 Marine Boulevard;
ville,
Fla.;
J a c k s o n,
Miss.;
Memphis, Tenn.; Louisville, Ky.;
Butler, Wick Adds
Richmond, Va.; Bethesda, Md.;
and Greensboro, N. C. The com¬
(Special to Ttnc FiNANcrALCHRONXCLE)/
pany
also owns and operates a
YOUNGSTOWN, Ohio—Francis
fleet of more than 290 trucks, in¬ W. Hone is now with
Butler, Wick
cluding 29 big tractor-trailer rigs, & Co., Union National Bank Bldg.,
,

which
and

handle

local

distributions

shipments

to
various sales
maintained throughout

branches

the company's territory.

Other members of the

of

members
1

Midwest

the

Stock

New

York

,

and

Exchanges.

Form Wash. Underwriters
offering

WASHINGTON, D. C.—Wash¬
include — The
Robinsonington
Underwriters,
Inc.
has
Humphrey Co., Inc.; Scott, Horner been formed with offices in the

group

&

Mason, Inc.; Interstate Securi¬
Corp.; Alester. G. Furman
Co.; Atwill & Co., Inc.; Clark,
Landstreet
&
Kirkpatrick, Inc.;
Jack M. Bass & Co.; Pierce, Carrison, Wulbern, Inc.; Howard, Weil,
Labouisse, Friedrichs & Co.; G.
H. Crawford Co., Inc.; and Roman
ties

and

Johnson.

Warner

Building to engage iri a
business. Troy V. Post,
principal of the firm. '

securities
Jr.

is

a

Sidney Weinberger Opens
BELLE

HARBOR,

N.

Y.—Sid¬

Weinberger is engaging in a
securities business from offices at

ney

255

Beach

137th Street.

White Co. Adds to Staff

Robert H. Boiman Opens

(Special to The Financial Chronicle)

> ST.

LOUIS,

Rudde is
pany,

Cohn

Presently Available—

2-

chips,

chips,

"Bacon

butter

Montreal, Que., Canada.

Corp. of America—Memorandum—Kiser
Shumaker, Inc., Circle Tower, Indianapolis 4, Ind.

>

Hotel.

b'

>

White & Company, Mississippi
1, Mo.
'

pany,

for

&

Dynamics

>

*

Louis

common

share

tive

*

subscription, $15.

HA

—

St.

ing 7,680 shares of 5.2% cumula¬

Corp.,

News Letter,
Mason Street, San Francisco
2, Calif.—Three month trial

'•

Report

retirement of all of its outstand¬

C°/?f £orr oration of America—Bulletin—North's
414
Consolidated Water Power

—

Building,

certain

Co.—Memorandum-—First

■

£s

Analysis — New York
120 Broadway, New York 5, N. Y.

Hanseatic Corporation,
.Central Telephone

Corp.—Report—General

Public' offering of 200,000 shares
H. W. Lay & Co., Inc. class

A

t

^

Co., Inc.—Analysis
Office Square, Boston
9, Mass.

.

Association

National Security Traders

Street, New York 5, N. Y.
Trust

(Dallas, Tex.),
of
Investment

Group

Bankers

&

Lay & Co. Shares

Also in the same
Getty Oil Company and Webb & Knapp Preferred.

Campbell

Texas

Company—Memorandum—Albert* J. #r.'

Johnson, Lane, Space
& Co., Inc., Offers H. W.

-

'

American Marietta Co.—A
Glimpse Ahead—Descriptive bulle¬
tin—American Marietta Co., 101 East Ontario
Street, Chicago

Valley

t

of

♦

Racing

■.

(Special to The Financial Chronicle)

Co., 1 Wall Street,
issue is an analysis of

m

Company—Analysis—Pacific

are

Stocks for Investment at Mid Year—Selected
issues—in current
».
issue of "Gleanings"—Francis I. du Pont &

*

at

April 21-23, 1957

Lexington Avenue, New York

Stancan Uranium

'

,

New York 5, N. Y.

— Harris, Upham & Co.,
120
Also available is an analysis

Mining Co.—Memorandum—A. G. Edwards

Electric

-

Association
America annual convention
the Hollywood Beach Hotel.

of

Southwestern Public Service.

%

Securities Considered Legal Investments for
Savings Banks in
New York—As of
July 1, ,1956-^New York State Banking

British

Eureka

(Hollywood

Beach, Fla.)

Investment Bankers

Timber

and

meeting of Board of Gov¬

25-30, 1956

Nov.

Street, New York 6, N. Y.

Carolina

80 Wall

New '

Street,

Firms

(New York City)
of Stock Exchange

ernors^

Co.,

'

Analysis

Insurance

Sons, 501

com¬

Averages, both as to
a
13-year period —

Quotation

Association

Gas—Analysis—Zuckerman, Smith
& Co., 61 Broadway, New York 6, N. Y.
Also in the same
bulletin
are
analyses of Southern California Edison and

"

MacDowell), New
Broadway, New York 6,

Building Machinery —.Appraisal
Broadway, New York 4, N. Y.

'

Beaver

South

W.

Road

S.

60

Richmond

of

parison between the listed industrial stocks used in the Dow'Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau
and

Life

Southland

Over-the-Counter Index—Folder

National

-

the

School

Williston &

at

Convention

Annual

Nov. 14, 1956

Caplan & Co., 1516 Locust Street, Philadelphia 2, Pa..

Homecoming Conference of the
York University's
Graduate

(Dr.

York

yield

Pyramid

New

Administration

National Security Traders A«n-

McDermoit

Radio Corporation of America—Memorandum—H. Hentz &

for Business for the last six months of 1956—Panel
review—The First National Bank of Chicago, Chicago 90, 111.
an

Pulp

Sound

St»rinii

(Palm

1956

the El Mirador Hotel.

Northwest Company, Terminal Box 3686, Seattle 24, Wash.

'•.

■

—

:'yi■

24-27,

q$tion

Broadway, New York 6, N. Y.

Puget

Nickel

Outlook

Outlook for Business in

Inc.—'Analysis—J. R.

Broadway, New York 5, N. Y.
of U. S. Vitamin Corporation.

Mines, Ltd., Sherritt Co., Gordon Mines Ltd., and Nickel Rim
Mines, Ltd.—Sutro Bros. & Co.*. 120 Broadway, New York v

A.

Co.,

&

Street, New York 5, N. Y.

Makers—Highlights No. 32—Troster, Singer & Co., 74
Trinity Place, New York 6, N. Y.

Nickel

Oct.

Philips Lamps—Memorandum—Smith, Barney & Co., 14 Wall

Yamaichi Securities

Missile

N.

Pfizer

Stock Exchange
meeting of Board of Gov-

ernors.

.

•/

Turnpike—Progress report—De Leuw, Cather &

:

(Detroit, Mich.)
of

Calif.)

Railroad—Bulletin—Peter P.

Polaroid Corporation

national

Firms

Company, Farm Bureau Building, Oklahoma City 5, Okla.

Development

Avenue

Co., Ltd., Ill Broadway, New York 7, N. Y.

Nickel

4-6, 1956

Association

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

115

Current information

—

Oct.

Corp.—Memorandum—Shearson,

Products

Central

Northeastern

Office, Province of Saskatchewan,
Street, Regina, Sask., Canada. -

try Club.

Jones

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

&

York

New

:

trict Bonds.

Industrial

Ding" at the Forest Hills Coun¬
Co., 120 Broadway, New

Inc.—Analysis—Unlisted Trading Depart¬

Distillers

National

Equipment Trust
■.

(Rockford, III.)

Rockford Securities Dealers As¬

ganization, 100 Broadway, New York 5, N. Y.

'

and

Hotel

the

at

sociation seventh annual "Fling-

Montrose Chemical

a

Bank

Radisson.

ment, Jra Haupt & Co.; Ill Broadway, New York 6, N. Y.
Company—-Bulletin—de Witt Conklin Or-

1, 1945 to date—Folder—Salomon Bros. & Hutzler,
Street, New York 5, N. Y. Also available is a memo-

of

Convention

-

meeting

Sept. 27, 1956

Fuller & Co., 39 Broad-

5, N. Y. Also in the same bulletin are data on
& Laughlin Steel Corp. and Union Oil of California.

McGregor-Doniger,

t

34th

' annual

140 Federal Street,

York

Paper Rates

"

Association

Women

Also in the same bulletin are data on the

Lone Star Cement—Data—Abraham &

from Jan.
60 Wall

Minn.)
National

■

(Minneapolis,

1956

1-21,

Sept.

New York 6, N. Y. ' •

r:;; way,

Monthly investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y.
Prime

Laird, Bissell & Meeds, 120

—.

Richardson Company.

—

Rate,

System

Leetronics Inc.—Memorandum—S. D.

Dept. C., 1033 Thirtieth Street, N. W., Washington 7, D. C.

Discount

—

5, N. Y.

Freight

Boston 10, Mass.

(No. 18) dated June 1, containing comments on

uranium guarantee extension, atomic Navy, guided missiles,
atomic aircraft — Atomic Development Mutual Fund, Inc.,

Bumham View

Motor

Kennedy's Inc.—Data—May & Gannon, Inc.,

4, N. Y.

Letter

Analysis

>

Memorandum — Wm. C.
Roney & Co., Buhl Building, Detroit 26, Mich. Also available
is a memorandum on Kuhlman Electric Co.

.

Atomic

—

Broadway, New York
Interstate
MA

Airlines—Analysis—Edward

EVENTS

N. Y.

IIars£o Corporation

mentioned will be pleased
interested parties the following literature:

send

to

, _.

In the same bulletin are data on Visking Corp.
Also available is a memorandum on St. Regis Paper Co.

understood that the firms

Thursday, July 5, 1956

.

COMING

Wall Street, New

36

.

,

Walston
J'.•/**;<>

Bowds—Data—Park, Ryan
Inc., 70 Pine; Street, New York 5, N. Y.

Recommendations & Literature
It is

—

N. JYV

Co.,

&

Co.—Data—Bache

Grace

York 5,

,

Grant County,

:

Financial Chronicle

The Commercial and

(68)

now

Mo.

—

Fred

W.

with White & Com¬

Mississippi Valley Building,

members

Exchange.

of

the

Midwest

Stock

(Special to The Financial Chronicle)

>-0

Robert H.
engaging in a securities
business from offices at 50 Camino
ORINDA, CALIF.

—

Boiman is

Lanada.

'

-

...

'

/

Volume 184 " Number 5548 i

i

The Commercial and Financial Chronicle

.

(69)

relations

James C. Sargent %
Member of the SEC

become
_

certainty

By PAUL EINZIG

-

■;>#•

.'V

j

i,

y;

.

-

.

'

•

■■■■"

^

v

•

-V

•'

~

• ...

them

*•

,r»

industry is criticized by Dr.
Einzig for "its gross miscalculation of its prospective markets"
the draining of inadequate labor by bidding-up wages "to sat¬
isfy its exaggerated requirements," and neglect of the foreign
market in the face of increasing - competition. Absolves the

The over-expanded British motor

V

the.

dundancy

to " pass

.

James C.

Schwabacher Absorbs

-

an' acute

is

shortage

Sargent has become

a

member of the Securities and Ex¬

Commission,

change

There

.

succeeding

Muir, Dumke & Light

of

'■*'

SALT

LAKE

CITY> Utah—Ef-

fective July 16 the, investment
business of Muir, Dumke & Light,

of

V

80

and the greater disinflationary

stralian and other markets

re-

dismissals,

consumer.

f

of* the

industry for not foreseeing the unexpected contraction

of :, being' able
to

on

of

.....

.

9

measures

f^2

Af

°L

allocation

Y of surplus labor to regions and industries with labor scarcity.

y'

ployrnent

YY:? For some time it has been evi-. safeguard : their dwindling man
Yy dent that all is not well in, the power. Even industries working
Vv British i automobile industry, t in at a loss such as: British Railways
common
with the motor indus- had to consent to increases far
tiesi 0f;other beyond their means, in order to •
of > other
countries
tries, ifavoid being depleted of labor. :?Y
"

'

'

>a

;ar s
appe

'

to

6

v

,!Motor

have
-over-

It

it

to

been

Nor could

foreseen.

busi-

nessm^n^ reasonably to peeled
-rf..-.

-w

..

during the flationary
measures
that
the
past two years Government would #have to adopt
V.V
'fit •"
":■$+% ''.At*rinw : '4,j-»--a; aaaa'
4*1**a4"
ir% -PI a
or so, the mo/
in order to cope with the: inflator works have
expanded their tionary situation. In 1952 a much
plants.
At the same time they more modest degree of disinflahave increased their capacity also tion sufficed to correct the bal-

i by

1

The British Motor Corporation
capacity to has been subject to much sharp
full
extent, criticism, not only on the part
to the decline in demand, of the unions and their political

anything
owing

fThe

like

its

of ' some 6,000
the/ British Motor

dismissal

workers

by

Corporation
June

has

to

state

a

existed

towards

some

-significance

was

quatelyJ either

by

politicians.

by

or

has

r

years.

It would of course be too

consultations
and
^pay
of
one
week's wages. Much of this criticism is undoubtedly unfair., It
would have been impracticable to
the

warn

;

'

«

-

.

>

Miscalculatmg Prospective

•

miscalculation

road system to cop^

increased

.natural

the

hmit to

capacity of the
.The

traffic

motor

is too modest to
appreciable difference

make
this

m

^

tions
,stin

making the yearly offi-

to

cars.

new

'Eycn so, overcrowding of r°ads
and parking difficulties *re liable
to discourage domestic demand.
The

of ?

manufacturers

-

to

the

-

cars

,

to

have

British

cars

v

,; r

the

the re- ?

motor

'did
on
?

Owing

"not

their

concentrate
overseas

for

is

open

the

way

expanding its output.

4.

motor

-view

works

,

from

the

point

of profit margins had to

crease

their

wages

in




order

of

into

Bills

,

Incorporated

C. JOSEPHS

LAMONT

Surplus.

Vice-Chairman

\

gQod

result Qf
the confidence

As

squeeze,

a

the# going

was

the5credit
of

em-r

ployers to be able to raise their

L.

LEFFINGWELL

F.

21,044,114
30,000,000

...........

30,000,000
,

*

..

16,350,085

*;>»• •
3

$919,042,348

■;

JUNIUS S.
P.

MORGAN
SLOAN, JR.

securities carried at $72,485,296 in
pledged to qualify for fiduciary powers, to

United Slates Government
the above statement are

GUSTAY MET2MAN

ALFRED

v

McCOLLUM
President

r

>

....... ....

Undivided profits.

Continental Oil Company

the-reallocation

while

C.

J

-

Capital—300,000 shares..

R.

6,737,786

payable, reserve for taxes, etc.

Acceptances outstanding and letters of
:i
credit issued,............,.:...... .y

.

factures

25,000,000

payable

Accounts

IA/e Insurance Company

New York

70,487,654

'$789,910,363

Chairman

?

680,219,204
"

Official checks outstanding

JAY

D.

Director

DEVEREUX

$ 39,203,505

All other

President

N.

LIABILITIES

Deposits: U. S. Government;....

GILBERT

Morgan &• Cie.

need it.. The cost of such "hoard-

increase

20,939,188

DEUPREE

R.

CARL J.

? :??.

Ing'V of labor could easily be
added to the price of the manu-

all-round

for

Liability of customers on letters

T

Could Help Solve Economic
"' "
-Problem j

in

wages,

:3,ooo,ooo

$919,042,348

CHARLES D. DICKEY
Committee

in-

employers who were
favorably placed than the

an

was

less

The result

1.560.001

Corporation
,

of credit and acceptances

?

The Gillette Company

ployers to retain workers they do
j10? need any longer, for fear of
beinS unable to secure additional
labor if and when they should

.

Chairman

to
in

exaggerated requirements. It was j
bidding up wages in order to attract
labor for the purpose
of j

.....

The Procter & Gamble Company

of labor byforcing employers to dismiss their

sufficiently, in

1.800.000

Co.
Morgan $ Cie. Incorporated,

.

;•'

Chairman, Executive

redundant workers. Under a nonstop expansion such as we haves
which it drained the inadequate (been witnessing in recent years, v
industrial manpower to satisfy its ^ *s much too. tempting for em-^;
also

COLLYER

4,071,957

......

Morgan Grenfell

and 15 Broad Street

_

ease

markets.

trade

motor

The

criticism

'

the

to

receivable, etc.

of the Federal Reserve Bank.

Limited,

CHEST ON

410,659,225

-

Investments in

Chairman

RICHARD

10,769,876

purchased".

Banking house
JOHN L.

53,651,874

Other bonds and securities

Stock

CARTER

The B. F. Goodrich Company

170,324,005.

municipal bonds and notes

Accrued interest, accounts

Incorporated

Morgan &» Cie.

CHARLES S.

State and

securities.

.

Corporation

"

THOMAS S.

'

•

$.242,266,222

hand and due from, banks

Loans and bills

Chairman

with
The credit squeeze could conwhich it was possible to expand tribute
substantially towards
the domestic market during re- solving Britain's economic probcertt years, British manufacturers lorn,-precisely
through assistingahead.

President

BERNARD S.

is

dustry where they are not needed,

rivals
forging

also

are

,v.->

unions

public interest to retain thouin

•

State Street Investment

indus¬

French

and

try,' German

!

CABOT

C.

PAUL

more

automobile

American

the

of

paid

•

?

on

United States Government

BECHTEL

Bechlel Corporation

men.

men

'i.!'r.v.

>:

Condition June 30,1958

ASSETS

Cash

President

been

atten- and to compel other industries to
tion
to? what
was
happening 'resort to further wages increases
abroad. Apart from the spectacu- in order to' induce these men to
lar increase of the capacities of change their occupations.
"

ought

Condensed Statement of

'

In the circumwould be clearly against '

of

'

:

-

Vice-President

,

si0wed down because there are

stances it

NEW YORK

if

y
.??■'

C.-R. ATKIN

I.

.

STEPHEN D.

-men,

enough

;

ARTHUR M. ANDERSOff

they
should
be ■
Which, in condiof overfull-employment that
exists in Britain> would be -

sands

rA

•

possible solution,
After all> many branches of the '
engineering
industry
have
to
te j
delivery dates for lack
of manpower,: Railway transport

the

President

*

.

about tbe worsf

not

FIF Man-

agement Corporation.

J. P. MORGAN & CO.

H. P: DAVIS Off
■

be-

sugge.V

,
SACRAMENTO, Calif.—Michael

Lynch, Pierce, Fenner & A. Taron is now with

,1'#

.

secure

public monies as required by

law, and for other purposes.

Member Federal Reserve

Member Federal

System

y

Deposit Insurance Corporation

Honorary Chairman

General• Motors Corporation

['*
i

.

JAMES L.

THOMSON

Finance Committee

Hartford Fire Insurance Company

GEORGE
JOHN S.

MORGAN

CIE. INCORPORATED

14, Place Vendome, Paris,

France

WHITNEY '
ZINSSER

Vice-Chairman
Merck & Co., Inc.

D.

(Special to The Financial Chronicle)

>

Beane, 1125 Van Ness Avenue.

Cpairjnanr. -jf

i

;
r

feather-bedded.

testing of old cars compulsory
is liable to cause a certain
.switching over of demand from
cars

that

that jnstead of dismissing
dundant

cial

second-hand

have

;i"

"

Daniel

—

9235 WaShire

INCORPORATED

preliminary con-

have- had

/respect for years to come. It is
-true
the
legislation
introduced
jrecently

there

All

sultations.

building

.program

WOuid'

Nor

much point in

absorbing

road

it

measures,

a

domestic market.

Governments

any

with

set

see

ALEXANDER

HEXR Y C.

to resort to such

necessary

drastic

j

prospective

^dequacy of .the

British
.the

its

of

came

before it

right itself

would

^

vT° some extent the motor industry is to blame for .its gross

to

,

■

Joins FIF Staff

GeOrge Flint,

has been added to the staffof:

Merrill

DIRECTORS

'because it did not appear unreasonabie t0 hope that the situation

,

»'
-

them

Jr

with

now

are

v

months ahead,

workers

Dratz

WestonT Co /lnc

Calif.

.

severance

a

&

HILLS,

-

■

l.;W*•

bo°m

the

during

expect

preliminary
with *,

BEVERLY

Lynch Adds

FRESNO, Calif.

KnDnt

+Krx

works

to

Roberts

Shelley,

of

wri

r-niif

(Special to The Financial Chronicle)

they received from

pay

staff

;

9486 Santa Monica Boulevard.
Merrill

•

high

mT t q

ji,Boulevard.

motor

side, for having disthe; 6,000 men wjio have
become, redundant without
any

employers, or
their unions,

~

the

has not been any justification for
W
•'
:
the

V

(Special to The Financial Chronicle)

-rv

But then there

cept lower pay.

si^ce NovlmbS

SEC

1955.

Two With Daniel Weston

missed

time, but whose
not realized ade-

employees//and

by

which

unemployment. It

^flee 0/the

;

(Speciai to the pxnancml chronicib)

servative

the

affairs

of

for

of

expire?*.

Shelley, Roberts Adds

they WQu|d have tQ ac. Co.,

i,

supporters, but even from Con-

end cf
public attention

drawn

interval

ls ^

much

of payments.

ance

they
their increased

now

tise

.

%

of automation. And
find it impossible to

means

aa

term

Sre^t

Mr

barge"> 10™err.
ty engaged in the practice of law
in New York, has been adminisj"
v™"u

established
in 1919, has nine offices in Cali-

g®*a*f£n_'^men-.prepared to flange location

_

Dr; Paul Einzig
v

Hardships caused/by dismissals

whose

Adams

H

hafIxoirJ'

,

^
& Co.,

in existing conditions of employ- fornia and New York City.
ment have been^grossly exag. . .

Sargent

.

.

'

;

C.'

james

darence

will be continued by Schwabacher

is

and occupation, they could step
could-not hawefrom one$cb into another without

ahd elsewhere
been

as

increasing

.

the

before

fe^!aiJV l°bs with lower pay P®r~ Muir. Given A Light will be sales
but
wim the Certainty of being per- manager of ; the office. Muir,
manager
have become once more Dumke & Light's membership in
attractiv^even if ^e pay offered the Salt Lake Stock Exchange

a

large

through import cuts in Australia

the

at

has

that

ILyhad

as

Exchanges, will
operate the Salt Lake City office

r
X Cn
Hardships Grossly' Exaggerated
Hardshins Grossly Eva^p-pratpil •••'•*"schwabacher
„ ?'

Be

on

Stock

wa^. But now that conditions of un(jer the management of Edemployment - have become -less mun(j W. Dumke and Richard W."

'

.

rate

same

admitted

>

memDersnip

noius

wiiicfi

vu..

em-, American

in^ contraction of its foreign markets are

indefi-

nitely

be

-

c v

.

arindst«; overfulL

lower than-in industry.-,
" -: .?-•> fy/yyyC * V

extent the motor industry cannot be blamed for its
present difficulties.
The sudden

con-

to

crease

must

very

demand
tinue

Cannot

Blamed

that " the

would

industry

On

expanded.
tion

?

,,,

?i same the New York, San Francisco and

atfrabtion

pared to change location and occupation"—through

MORGAN GRENFELL

Z8, Great Winchester Street,

4- CO.

LIMITED

London E. C. 2,

England

10

The Commercial and Financial Chronicle

(70)

Representative

Life Insurance

Companies

is Chairman of

of

adverse

the

Difficulties

licity in recent months concern¬
ing the matter of taxation of life
insurance companies, a review of

written

to

the situation is in order.

and

V

The

held, hearings and at the con¬
clusion ,pf these hearings made a
number of changes in the ex¬

it

as

discussion for
In

1921

emptions allowed but

than 25 years.
method was evolved

the

of basing the

more

the

income.

tax on net invest¬
This approach,

to

ment income only.

which has been
ber

modified

a

tax

which

rate

investment

method

a

Because
rates

should

income

apply

and

set

and

calculating

then

was

sent

The

basis

on

agreement
the Senate pro¬

law

passed

was

jon

to,apply Only to 1 £k>5
The

Treasury

Depart¬
makes

ment stated that; it^ would

forth

further

calculating the tax.
changes in y interest
changing methods of

study

and

prepare

rec¬

ommendations for action by Con¬

in

gress

the life
Congress
by

reserves

to

where

House

earnings.

to

agreed

investment

of

Bill

reached

posal.
this

of
of

The

and

was

times, is the one in effect
today.
In 1942 Congress passed
legislation which determined the

7.8%

joint Committee of the Sen¬

a

ate

num¬

of

of

rate

On

the

session.

present

April 16, 1956 the; New
"Times," under the head¬

industry,

York

permanent law to supersede the

a

that the newspaper had been mis¬
informed. It is our opinion that

"stopgap" legislation of the previ¬
three

ous

years.

the

House

Committee

than

Ways

undertook

and

of

to

the
that

House
it

of

pass

under
Plans

a

tax

a

formula

permanent

of

which

While the Bill

study

nance

Committee,

by

the

the

second J article

a

headline
Insurance

17.

S.

Delays

on

14%

What

sales

income"

Total

year.

of the

some

there

is

the

difficulty

$13 9 billion for thi

verbis

even

,

other

Will fall equally.
Secondly, can
the

so

benefit

to

the

are

life

insurance

-r

.

the

media

for

capitalizing

hanging

over the mar¬

ket has been the
uncertainty con¬
cerning the tax to be applied; If

conclusion, that it is unlikely

my

on

life insurance

-

com¬

panies will
be drastically
in¬
creased, is correct, life insurance
stocks

of

should

the

better

companies

be

purchased
capital appreciation.

for

future

Powell With Schwabacher

be

SAN
B.

FRANCISCO, Calif.—Jas.

Powell

with

has

become

Schwabacher

associated

&

Co.,

100
Montgomery Street, members of
the New York and San Francisco
Stock Exchanges. Mr. Powell was

formerly

in

the

ment of the

of

trading

depart¬

San Francisco

office

Harris, Upham & Co.

FRANCISCO,
Bevis

has

Calif.

been

100

million

Mr.

Bevis

Protected

added

policy¬

formerly

was

Investors

of

—

to

with

America.

and try to have
something
shape for next year. This rules
out, application of
any new tax

summer

in

reasonable

order to

to

With R. F.

maintain

such

a

position, companies writing par¬
ticipating business would have to
pass on a

materially increased tax
policyholders through re¬

bill

insurance companies,
according to

duction in dividends.

to

impossible

to

pass

Two With H. L. Jamieson
(Special to The Financial Chronicle)

assume

SAN

tax

on

with

quate

Equipment Trust Certificates

surplus

Future

of both participating and
non-participating policies would
pay a higher price for this very

City of Philadelphia

Life
In

service.

.

Stocks Should Be

X.

Jamieson

Co.,

Inc.,

-

the light of past

Philadelphia School District Bonds

shares,

Calif.

Montgomery Street.

—

/

(Special to The Financial Chronicle)

M I A M

Fla.

I,

has

—

been

Norman

added

to

A.
the

staff of Columbia Securities Com¬
pany,
cayne

Inc. of Florida,
Boulevard.

3898

Bis-

•

A Continuing Interest in

X

aggregates




•

Parchment

$1

Samuel K. Phillips & Co.

ALLENTOWN

•

LANCASTER

•

SCRANTON

Stock

Established

Exchange

Pennsylvania Bidg., Philadelphia
Teletype

N. Y. Phone

PH 375

COrtlandt 7-6814

dividend

$2

per

share

of

15c

be

share
Thus

for the

necessary

com¬

pany to pay a dividend of 85c in
1956 to permit the holders of

class

stock

to

striction.
not

convert

If

without

115

Broadway

New York 6,

CO 7-1200

conditions are
holders of the class

met, the

of 14,400 shares per
year.
Until
converted, the class B common
shares receive no dividend unless
the
common
shareholders shall
have received 50c per share
per

management

of

the

com*

is aggressive and highly re¬
garded 'in its community and in
trade circles. Price range lor the
issue

since

the

Thus

we

7;

1956

to

"

-

have

a

of

this

date

-

-

ATT

.,

,t

security meet¬

ing specifications of the first
graph

1955

merger was

high 11%, low
high 10, low 8.

article.

It

para¬

is

cer-

obscure,

having a new
name.
Its earning power is
just
beginnjing to be manifested in

combination,
rate

units

had

although

a

of

the

the

sepa¬

company have
past history of

splendid
earning power. Recent perform¬

ance gives some
indication of cur¬
rent earning power. New
products
and new contracts assure contin¬
ued
growth. The desire
of
the

management, which holds the B
stock, to convert the entire issue
into

common stock
promises a good
dividend return. At current mar¬

price

of

approximately

ZVz,

become "The Secu¬

New Branch Offices
For E. F. Huttori & Co.
F. Hutton
& Company, 61
Broadway, New York City, mem¬

bers

of

the

New

York

Stock

Ex¬

change, will take over the follow¬
ing offices of Beer and Company:
233

Carondelet

leans,

under

Michel

A.

Street,

the

New

Or¬

management

Willem

and

of

G.

Henry
A.
Thomas; Trust Company of
Georgia Building, Atlanta, under
management

of

Norris

A.

Dillon; and
Rouge, La., 234 Third Street,
the direction of
Hugh B.

O'Connor.

Inv.

BOSTON, MASS.
Sobil has

Walnut Street

LO 8-0900

Teletype PH

Planning Adds

(Special to The Financial
Chronicle)

Philadelphia 2, Pa.

N. Y.

re-

the

B stock may convert a>maximum

under

1914

1529

%-X

years.,
per

paid in December 1955.

was

BOENNING & CO.

Phila-Balt.

least

share shall have been paid

per

A

Keyes Fibre Co.

Members

to

aggregating at least

during two consecutive

Baton

Pratt Read Co. Common

V

at

and dividends

INCORPORATED

PHILADELPHIA 9

converted

agement of William S.

Grinnell Corp.

Guarantee Bank & Trust Co.

PITTSBURGH

be

Longview, Texas, at 301 A East
Methvin Street, under the man¬

Kalamazoo Vegetable

•

•

may

are

management.

Broyles and Jackson P. Dick,
Jr.;

Continental Telephone Co.

Buck Hills Falls Co.

NEW YORK

top

'

Pocono Hotels Units

STROUD & COMPANY

the

B

E.

With Columbia Sees, of Fla.

4s, 1990

your copy

outstanding

shares which

rity I Like Best."

Leonard J. Swiger has been added
the staff of Reynolds &
Co.,

Public Service Coordinated

Now available
for distribution

com¬

share for share if the net
income for two consecutive
years

the

John B. Stetson Pfd.

•"*

com¬

common

ket

FRANCISCO,

to

the

of

129,600

common

by

Class

to

425

and

class B

this stock has

(Special to The Financial Chronicle)

SAN

Trevour
Purchased

history and
considering the problems involved,

and

30, 1956

L.

Building.

buyers

essential

of June

positions.

—

With Reynolds & Co.

existing non-particinating policv-

Semi-annual Appraisals

H.

Russ

to

holders which might make it dif¬
ficult for companies writing this
type of business to maintain ade¬

x

Calif.

Thomas C. Brown and Thomas R.
Nelson
have
become
affiliated

It would be

the

FRANCISCO,

assuming that all

converted

capitalization

taintly

Building.

by a crowing nonulation unless it
is allowed to build an
exception¬
ally strong surplus position.

be

$1.50

pany

(Special to The Financial Chronicle)

SAN

at

on

The

York Adds to Staff

Palmer

are

Earnr

therefore

year.

said

that

should

year

April 30, 1956, consisted
629,450
outstanding common

of

B

(Special to The Financial Chronicle)

of

pany

it will

this

through the

month,

stock.

held

higher rate,

over

seems

the

even

shares
The

are most favorable.

that taxes

B

com¬

growth of the American

The pall

*

.

difference

method

Thirdly, the life insurance in¬
dustry is vested with the protec¬

It

of

1956

share

mon

that the tax

<

a

firmer

it would Xthe staff of York & Co., 235 Mont¬
present a gross example of unfair gomery Street, members, of the
San
Francisco
Stock
Exchange.
Competition.

they would

next

or approxi¬
share. Earnings for

per

balance

for

30

X

$179,000,

of defi¬

the

per

loss of $40,000.

the

per

"ec&TKyny

as¬

tives. If mutual companies are ex¬
empted and onlv stock companies

of

for

April, was
mately 24c
the

net

a

profit

conservatively estimated

inconsistent with the present treat¬
ment of other types of coopera¬

tion

ing, showed
Net

interest

and

aver¬

$800,000

may

excellent

factors

plan shall be used

a

some

The first quarter of
1956,
while the
company was still in
the process of
moving and build¬

April level.

on

to be
equal. The dilemma then is what

at

shipments of

month.

ings

bine to make life insurance stocks

the companies to show dif¬

ferent operating results

taxed

$16.3

were

All of the conditions which

to

culate g reserves and yet another
the full preliminarv term method.
These variations will produce dif¬
ferent reserve amounts and will

in

1956

the balance of 1956
call for

age

average at the

nite

ferent. One company may assum
an interest rate of
2%%, .another
3 -f.
One company may use the
net Jevel premium method of cal¬

made

in

companies.

reserve

suming all

far

rates of recent months

compute reserves.
computations are
different, the tax base will be dif¬

pause

thus

|| |I Like Best |

period in 1955. Mortality ex¬
perience continues to be very fa¬

of
determining what constitutes
earnings for tax purposes. Com¬
panies use different combinations

Since

Security

vorable

are

formula to the 1956 income of life

for

higher than last

billion-

Treasury

Write

or

same

"total

Fi¬

as

prevailing

try has continued to break all rec¬
ords. The value of policies written
in April rose to $4.2 billion, about

on

Tax.

in

was

Senate

income.

officials said
continue to work on

against this in¬
come.
In July, 1955 this Bill was
passed by the House and referred
under

applying the tax to

"The

would be allowed

lo the Senate.

approach

problem was so 'very complicated'
that the project could not be com¬
pleted on schedule.

produced
approximately 7.8% of

fnvestmenet income together with
a
schedule of exemptions which

the

ficials

legislation HR 7201 which Bill set
forth

of

been

conditions

poor

threatening in a company or in¬
dustry.-The life insurance indus¬

;

of factors

The

de¬

Quoting holders. manv of them widows and
Campeau \
printing, "Treasury of¬ children with no other source
(Special to The Financial Chronicle)
today, however, that of income. The industry cannot
DETROIT, Mich. — Bernard J.
the Department's staff of
experts maintain the strong financial back¬ Ryan is now connected with R. F.
had been so busy on other press¬
ing nolicvholders expect and also Campeau C o m p a n y, Penobscot
ing matters and the insurance tax provide the protection called for
from

Representa¬

as

that

yet

workable tax

other

any

"Times'' printed

of
the
industry. After lengthy
study this Committee recommend¬

tives

using

not
a

On May 26, 1956 the New York

the problem and held
hearings at
which appeared members of.both
the mutual
and
stock
branches

ed

has

formulate

investment

Means

study

a

to

plan

Policy
The

Treasury

able

Congress Continues Same Tax

of

Rate ^

taxing
stock and mutual companies? .Ap¬
modified the law in 1950. In 1951
line, U. S. Acts to Raise Insurance
proximately 65% of the life insur¬
the law was again changed in an
Taxes, said, "Well-posted sources ance in force
today is written by
attempt to reflect changing con¬ predicted today that the Treasury
mutual companies. On the other
ditions. The 1951 formula which soon would
lay before Congress hand, the number of stock com¬
worked
out
to
approximately a tough new formula for taxing panies is far
greater. Mutual Life
6.5% of investment income was life insurance
companies." Inves¬ Insurance Companies are, in
effect,
extended
each
year
until
1954 tigation of this statement by in¬
cooperatives. They belong to their
when the matter was reexamined terviews
with responsible people policyholders. If a
heavy tax bur¬
by Congress in an effort to pass in Washington led me to believe
den is placed on them, it would be
insurance

have

Declining market prices of
any stocks usually reflect loss of
confidence by investors because

wouldn't

I

difficulties? ;

study the problem.

Continued from
page 2

approach.

mer.

approach.

The Senate Finance! Committee

problem of taxation

ap¬

The
inability
to
meet
their
schedule, plus their admission that
the problem was so "very compli¬

First,

Thursday, July 5, 1956

.

based

severely in market price
since, the high point of last sum¬

Base

the

.

clined

companies

requested more time

income

insurance stocks

cated." gives evidence of the many
difficulties involved in taxing life

'

applies to life insurance opera¬
tions is not new. It has been under

Life

Changed

a

the total

on

quoted

* •*.

in

•

Department made it known that
they did not approve the Bill as

pub¬

*

year

regular corporate rate

recommen¬

was

think there would be any change."/

endorsed
for future capital appreciation in view of: (1) favorable conditions permitting such stocks to capitalize on the economy's
growth; (2) unlikelihood taxes will be drastically increased;
and (3) declined market price — due to tax uncertainty—
though the industry continues to break all records. Difficulties
confronting Treasury officials are explained in support of the
assumption that there is little "uncertainty concerning the tax
i to be applied."

Because

the

quite likely that we will have/
to extend the present formula for

Baltimore

Life insurance stocks of the better companies are

■

Mills

saying, "It would"

as

another

^

Mr.

unlikely that the life in¬
industry will be taxed at

seems

surance

pear

Manager, Insurance Stocks Department
John C. Legg & Company,

it

Mills,

a

awaiting the Treasury
dations."

further

By WILLIAM F. GLISS

;

D.

Mr. Mills

House Ways and
Means subcommittee that has been

And the Taxation Problem
v

Wilbur

Democrat of Arkansas.

.

of

Investors

tion

of

—

Arthur

S.

been added to the staff

New

Planning

England,

Devonshire Street.

Corpora¬

Inc.,

68

Volume 184

Number 5548

.

.

The Commercial and, Financial Chronicle

.

(71)

Here,r too,

The Electric Industry's Future

abound.'

tied
■

By FISCHER BLACK*

\

Publisher and Editor "Electric World"

13,000 kwhr

gross

*

the

For

try,

electric

most

indus¬

power

forecasts

too

are

con¬

servative and that

is

be.

forecasts
adequate

to r

planning

cap¬

Conservative;
*

;

it

as

ital

should
are

expendi¬

tures.'. But
tnis

i.i

industry

our

goals and

our

results

should always

much

be

than

higher
1

forecasts,

cur

and

goals

can

all

we

-work

together
make
Fischer Black
-

-

dustry

-

.

10

every

does

years' or

every

15

f

Residential Demand

v

years.

residential

demand,
example—up 5 times, 15 mil¬

for
lion

customers of which

new

third

of

the

homes

one-

already

were

national

the

the

product,

Can

we

commercial

That will be

use/

for

1970 forecasts for

;We wanted to

in

tomer

be fair to you

goal and fair to the

a

taking his money away
appliances. He spent
average
for appli¬

the

on

in 1955 and by 1970 we only

expect another $100 per year.
Just 9% of his increased income.
.

.

residential

average

standard

and

V

million

that

workers

dustry

was

we

will

PALM BEACH, FLA.—William
M.

manager

been

associated

with

Blair & Co.

Incorporated in their
Philadelphia office.
*.;
of / William
F.
Thayer,
Jr.
has
joined the staff of Frank B. Bate-,

be

'

/■V••»'.. ■

man.

Philip T. Collins With.

using 18,008 kwh per

per

has

man

Last year, in¬

he using 32,000 kwh

become -associ¬

Bateman, 243
Country Road, as
sales
as of July 10th. Mr. Bate¬

South

Crutlenden & Co.

worker per year. On a conservative basis, industry in .1970 will

AG&E's -all-electric

will

Bateman

ated with Frank B.

The sale of electricity to indus¬
try is expected to supplant 2 to 10
short in" that yfear:

project the rate of in¬
past io years into

for the

Join Frank B. Bateman

industrial of conoutput
our goals

income

grand

Wjiliam Bateman to
.

(;!?ound 35 compared to the lp-'-i
average of 40 hours per week)
£h? PWduction .per worker must
"crea„se. 2^.% per year to sustain

living.

a

the future 15 years.

^^"nf Ifwer hours... per» week

sumer

you

crease

.

reach

possibility to hit

total Of about 2 trillion kwh sales
in 1970.
That is the figure you

get if

™°Je workers when we exPect.7«.% more production..
• These workers will probably be

thJ;„§?'"
needed to

That's just

CHICAGO,

worker

Co.,

209

111.—Cruttenden

South

Salle

La

&

Street,

buildings, we would per year,
members of the New York and
today's comInterpreting this industrial pro- Midwest Stock Exchanges, an¬
brought duction and kwh use per worker nounce that
Philip T. Collins has
up to the standards of the Socony- into - industrial
electric
power
joined their firm as a registered
Mobil
Building,- they would- be sales j we find that it meant 248
well above our 1970 estimates of billion
kwh last year and will representative. Mr. Collins, who

more

than

double

mercial sales. If they were

230

billion

kwh

and

climb to

than

more

570 billion

kwh in

This forecast makes

triple today's commercial sales.

no

has been in

1970.

provision

for the unknown demand like the

Industrial

We have found* that the annual
in

realm of

only

means

why stop there.

selling
^

commercial

in

cus¬

for electrical

increase

of

prb-

„

^^Or force, up to 82 mil-

hon workers.' This

commer-

on

doubling every ten years. Instead
pi ,1,3 ,trillion, kw,h,sales in 1970,
I
believe that it is within the

UP

had occasion to look
at the flans for one customer in
that/field - the Socony Mobil

standards

*

But

year some 69 million peo-.

In checking the reasonableness
our

rise in

a

.

count

we can

1.3 trillion kwh in 1970.

million abovq 1940. In the
next 15 years a gain of another
13 million is anticipated—bring-

times the 13,000

over $200J billion, and
Building across- from Grand Ce'nspending money will be
tr'al-Station in New York. That
up only 56%.
v
customer will
have
1.6
million
In
the
past 15 years, family
square foot of floor-space.- It will
real income increased only about
be buying 31 million kwh during
25%,
while ? residential
electric
the first year of full occupancy
sales
per customer tripled.
But rrhic
This figures out to nearly 20 kwh
we believe average family income
per year per square foot of office
will go up another 25% by 1970
space.
Or if we take 10 all-elec¬
to
$6,700.
In addition, most of
tric commercial buildings on the
this added income of $1,100 per
AG&E system, we find 13 kwh
year is discretionary.- It can be
per year per square foot.
>
:
spent on vacations, cars, church—^
If the minimum estimate of 13
or
on - living
better electrically billion
square foot of commercial
with electric heating and cooling
space in the country were brought
in 'every home.
•
• ' •
y
up
merely
to
the present-day

setting

'

think

we

Ple,we re finding gainful employ'-merit in our economy. That "was

consumer

Electric Appliances :

Last

for V'

forecasts

cial sales, I

.

the

Take

/

of

$166

years.

and

use by the average commercial customer today.
/
'

ances

triple

duction.

kwh

of

gain

a

that

it

the past 15

as

56% in real dollars.

to

Our in-

way.

.

double

not

if

reached

be

rate

same

willing

are

disposable ; income

on

1970 at about 2%

(3)

could be 2 trillion kwhr sales if the next 15

1970

year's rate of increase is at the

Or

—

capacity for such

project

—without including Atomic Energy; and (4) total 1.3 trillion;
kwhr in

that customers

available

industry will increase 248 billion kwhr in 1955 to 570 billion
;

Whereas we are mow spending
about $35 billion a year on new
plant and equipment, conservative economists think we will 4>e
spending $45 .bjUipp A year in
1970. .This will easily provide me

•

is

disposable -income

1 Based

projecting probable demand for electric power to 1970/
finds: (1) consumer sales to residential customers will be four
times;

prospects
closely

outlook

to buy.

and in

higher—462 billion kwhr;* (2) today's
average commercial customer will increase

happy

This

spending-' money—because it depends heavily on the services and
goods

Author reviews trends in electric power industry since 1940,

times

to

11

Few

Demand

companies

can

now

Atomic- Energy Commission
In¬
stallations of the past. In a single

afford

ness

for

the investment busi¬

30

years,

formerly

was

vice-president of Herbert J. Sifris
&

Co., Inc., in charge of the Chi¬

of

electricity is proportionate to produce their own power, and' area, the Ohio Valley, 1 million cago office.
-:V/-' V.
occupied but not electrified.
In to
disposable
income.
On
this wage demands have stimulated kw of capacity will be installed
the past 15 years some enterpris¬
basis' we reach 7,700 kilowatt*increasing the use of power. Last, over the next three years. Thus
With Goodbody & Co*
ing
manufacturers,
wholesalers hours per customer in 1970—add¬ but not
least, 40% of the 15-year you already have on the books 8
and dealers produced and sold a
(Special to The Financial Chronicle) /
ing about 2 kwh per dollar of increase in electric energy sales billion kilowatt-hours coming on
few
remarkably
useful
appli¬ consumer
ST. PETERSBURG, FLA.—An¬
investment
compared to industry came from the atom, the line of a single system.
:
ances.
Yet there were four years
drew
C.
with 1% kwh today..
Ramsey is now with
aluminum and magnesium indus¬
in this period when no appliances
Total Electric Power Sales
Goodbody & Co., 218 Beach Drive,
tries.
/v;
use

.

y/eve produced and about half the
Big sellers of today were only on
the market for* half the period.
The
has

residential

market

growth

brought with it only

dou¬

a

With these conservative figures

kwh
ers

easily predict 462 billion

can

we

sales

residential

to

custom¬

in
1970 . , , up
almost '4
compared with 5 times, in
.the past 15 years. But one does
,

,

times

in average bill with
£ not
have to stop there. We can
tripling in average use. In real
have 50% more residential elec¬
dollars, the customer today is
tric sales—How?
By reaching an
paying
considerably
more
for
annual rate of IV2 million elec¬
bling

electricity

But
of

than

is

it

still

he

did

than

less

cigarettes.
Well, the last

,

1940.

in

the

cost
c

.

15 years look
mighty good. But let's forget that
our
industry just doubles every
ten years as in the past, and see
the
opportunities
that
can
be

If all the 20 million new homes

1970

*An

address

alysts,

families

the

we

cars

could

residential

a

by

whole will

York

Mr.

Black

for

City,

who

before
19,

today
„

account

sales. *";

'•

announcement
an

is

offer to buy

/

lnuu^trial production index

for 1955

was

139%

save

of the 1947-49

T,

238.

•

.

.

North.

.

.

..

.

sales last year of 479 billion

(Special to The Financial Chronicle)

•

BOSTON, MASS.

From total industry power

you-

With Coffin & Burr

mental anguish,

.

£oin£ to add it up

>

lishment,

a

the

This

advertisement
of

any

is

and

not

today

is

—

of

such

securities.

Richmond is with Coffin & Burr,

to

be

construed

a

offering

an

as

solicitation of an offer to buy
The offering is made only by the Prospectus.
as

any
,

July 5, 1956

own

homes,

doubling

200,000 Shares

Demand

of

circumstances

no

H. W. Lay &
•'

electricity

yl

Company,

(A Tennessee Corporation)

an¬

has just doubled

since 1940/

.

an

offer to sell

nor

a

Class A Common Stock

^

solicitation of

of these securities. The offering is
only by the Prospectus.

Price $5.75

any

per

Share

NEW ISSUE

400,000 Shares

Copies of the Prospectus
the several underwriters

MINES

UNION

Stock

(Par Value $.10 per

are

be obtained in any State only from such of
registered dealers in securities in such State.

;;V;-•;

\

The

'ft

V..'-'

Johnson, Lane, Space & Co., Inc.

Incorporated
Class A

may

as

^

Scott, Horner & Mason, Inc.

Robinson-Humphrey Company, Inc.

share)

Alester G. Furman Co.

Interstate Securities Corporation
$2

per

Clark, Landstreet & Kirkpatrick, Inc.

share

Copies of the Prospectus may be obtained from such of the undersigned,
as
may legally offer these securities in this State.

Incorporated

115 Broadway, New York 6

; V

Inc.

Jack M. Bass & Company

. »

^

Pierce, Garrison, Wulbern, Inc#

Howard, Weil, Labouisse, Friedrichs and Company *

Milton D. Blauner & Co.




*

Atwill and Company,

Price

."

G. H. Crawford Co., Inc.

,

*

i

.

.

Joshua B.

kwh, >' Incorporated, 60 State Street.

NEW ISSUE

business estab¬

cost

under

oi these securities for sale or

fell swoop.

For the average

1956.

neither

made

you any more
.

®

average. In the next 15 years that
index is estimated to rise 70% to

^

This

Now yve have the, necessary figfo£ putting together the total
electric power sales for 1970. To
ures

would

we

near

one

Commercial

be up

security

June

ine

and

kilowatt-hours.

come

in

now

all-electric

had

compared

conducted

New

all-electric,

were

with 33
million gain in the past 15 years.

conference

between

reach 600 billion

First, we have more population
growth to look forward to — 40

as

build

will

we

two

Business

power

sales

than half of all electric

trically heated and cooled homes

If

more

more

by 1970—and doubling the annual
increase in lighting that year.

ahead.

million

Industrial
for

Roman and Johnson

*

The Commercial and Financial Chronicle

.

Thursday, July 5, 1956

.

.

(72)

12

bor-saving devices were looked
upon, suspiciously and we feared

Government's Changing Role |
In an Expanding Economy
In

theory

ment

work

laissez-faire doctrine has been properly
we can learn to tame the excesses of the
1920's and the ravages of the 1930's, and that society is reunmitigated

in

1

were

of business and government to guide
through cross-currents of rising economic tide."

and

"ability

*

It

to

seems

next

that the

me

will witness enormous
material expansion, but into our
evolving
social fabric will » be
woven £, many
years

that

strands

bear the stamp
of

the

assem¬

bly line. There
will

be

pres¬

to

sures

form,

con¬

some

which

must

resisted

be
and

of

some

which

are un-

avoidable.
The

a

d i ustbetween

ment

as

time

days were
belong,
in spite of the date, to the 19th
century.
This
was
a
time, of
stability.. To be sure, there was

the comfortable assurance that

!

C. Josephs

we

individfreedom

1

is

one

desire for

insatiable

our

seems.

it.

to

the

of

rents

rising economic tide,

.

-

of

these

our

for

a

progress,

had

com-

They

were

men

characteristics.

individualists. They com-

rugged

.

sponsibiUty., They-lived in a-time
when great differences of economic ; and

Laissez Faire Banished

,

status

This

species

!

were
»

of

leader

is

a
,

now

almost unknown except for a few

mounted

heads

of

room

in

the

trophy

the collector of internal

revenue.

The

leaders

current

cannot

"boss" their

employees, they must
instead manage their business or
professional affairs through the
persuasion
status

of

-

associates

approaches

whose

with

parity

theirs. Economic and social level-

ling is

~

social

matter of course.

certainly-the/current diof

rection

the

industrial

new

^
,

Next Decade's Economic Prospects

as

an

in

are 1

Most

.

each

—

Your guess ds as good as mine revolution.
>
as tp
whether this last condition
Another clearly
be sufficiently well

can

met. We

trend

marked

is the urbanization of

culture,

our

What is it we look forward to?
circle
are only beginning to understand
The cities and towns are growing
it would always arrive back
a What can a reasonable person ex¬ the
operation of economic con-' larger, the rural areas less popuWell, it will require no
little in advance
of its former pect?
trols and balances. But we are lated. In consequence, t new patplace but not enough to be dis¬ polishing of the crystal! ball for 3
learning. We have pro perl y terns and relationships are being
clearly defined econbmic-forecast»
turbing.
turned

it

nformity

and

second

-

in

restrained

a

.

c o

Devereux

and

foremen;
professional and tech-

more

the century of
change and truly we look forward

resisted. Civiliza¬
thought to move forward
gradual upward spiral with

a

already

how out of date it

tion Was
as

75%

personnel; 45%

craftsmen

in

.

and

^personnel to staff our" econ- tuiy ethical, eodes or troubled hy
in 1975—a 50% increase in a keen sehse^ of> broad social re-

A

was slow,
feared and it could often Truly,

successfully

be

control

-

gradual change but it
wap

..

Jnon

increasing diversity
of goods and services. One other
condition is the least predictable
ship and for sensitive; qualitative and the most
important of the
discrimination.
three. It relates to the ability, of
This last quotation was written
business and government to guide
only a few years ago, and yet; the
nation through, the cross cur-

undergraduate

Explorers

omy

clerical and sales

finality of human life, rob it
of
opportunities
for
individual
creation, for pride of workman¬

before World War I. They

it

automatic

on

f Or

com¬

potential source of so¬

a

times.

manded
obedience" from* their
derivations from'- some' estimates employees. They were not corithe government of the. needs,fined-in their action by 20th cen-

more

it as

who

of

the

any.

My

some

leaders

to statesand generals. Traders, plantrailroad builders, manufac-

ers,

by

<

^

History has

our

and

turers, financiers
while
dominated

.

.

that

'

v.

their

men

What; does / all this mean in
of jobs? Here ; are * a "few

apprehensions'
summed up in an article hf
Scientific
American.
The
declared

of

business

billion

$580

to

heroes

frontiersmen gave way

bur economic fu-

x

its

terhis

out of work."

men

whose

reasonable

naturally have been characteristic

billion
of the

average

an

of those

comes

1966/

had

great innational

a

gross

is to estimate

ture

;

rate that
there will

years

spells

with

;k\::

Each period of

larger

nical personnel and about 25%
this direction will
fewer laborers.
,;••'/"*
be
accompanied
by
large-scale
Productivity is one of the conunemployment — that an auto¬
.ditions of an expanding economy,
matic technology will impoverish

graduation from college in
is

a

our

away

these

expansion

1915

convenient

it

harmony.

/."• •..V

the

in

year—and

a

cial evil—that continued technical

nation

—my

as

two

jrtillion

mentators
see

at

than

author

an

taking
such a

It is

jobs

population

forecasts

adjustments

com-

the

of

product. It is now at $400

machinery," they said,

1952

the

-

.

expanding economy : productivity ; insatiable demand for increasing diversity of goods and services;

three conditions of

20

In

a

worker and the growth

per

crease ;

a

time::

rapidly making human
at
producing - goods - un¬

less

be

Interprets
"the least governgoverned." Lists

is

Here

that

of

very

factory

dislocated,

at

output

of

result

productivity in

combination

The

/

1933.

of

>

made

necessary.

Believes

adage that least government is best to mean
ment consonant with problems confronting

10

of

"Modern

"is

inevitable

the

and

increased

remember the
Technocracy and/ the

Technocrats

expanding economic'* prospects and expected
decade ahead, Mr. Josephs avers Govern¬
will become an increasingly important factor in our lives,

sponsible for the welfare of the individuals who are
from time to time, through no'fault of their own.

*' /'

...

statement

reviewing

and

cal

op¬

Some of you may

social changes in the

banished.

of

transfer

of direction in the past to give us
confidence that we can make our

today. This is the logi-

case

to/ the petitive society.

~ ."

many.

is the

broadening of

the

the

portunity

Company

York Life Insurance

Chairman of the Board, New

and

wealth

JOSEPHS*

DEVEREUX COLT

By

effects ,.of

the

real spendable income than

more

Permanence

the

was

the

of

in

aim

in wealth, in architec¬
ture, in social convention and in

customs,

decade—provided

next

make two

we

assumptions: first, that

the young

relegated

theV 19th. century,

to

established.

There

is

doubt

no

where it belongs,

tt&t

unmitigated

accept conformities demanded by

the doctrine of
laissez faire. I for

have

we

learn

to

how

to

,

and women of to- one
believe that our nation which crowded
living
yet
retain
the
is
the enigma
which you will class distinctions. There was a day an4 tomorrow will want and
has displayed such enterprise and. freedom of
thought and expreshave to solve. The search for es¬
work to get as much as or morq
half-hearted
belief
during
the
ingenuity in the expansion and Sion that is the object of our
sential
than their parents enjoyed and a
principles
will /become 1920's
that
the
earlier
period
management of industry cah learn civilization.
more urgent as they become more
second assumption which must be
could be reconstructed—a dream
to tame, such excesses as appeared
Fiftv
'
,of
olir
difficult to recognize. This kind
stated unequivocally — that theVe
that was shattered in 1929. How
Tn the 1920's and such ravages as
of world
will offer
will be no thermo-nuclear wat.
.V

u a

men

;

new

many

and

challenging opportunities for
the educated man. My mair* pur¬

is to indicate some of the
things for which you should be
pose

prepared in the
*:

To take such

into

get

the future

running

a

■

is

a

to

necessary

start.

I will go

purpose

hazardous jump

it

So

long

for

way

this

back

•*t»,

..

'An address

lives.

our

opportunity
was

not

The

We

not

cen¬

regard

it

as

an

This

threat.

a

tential
lasted

Baltimore, Md., June

12,

1956.

century

regarded the

rival

a

as

master

if

not

that

and

well through

No calculation of the future could

integral part

an

in the 19th century.

so

19th

machine

a

po¬

attitude

the period of

a

chine

about the

written

lot

.

Lets

underestimate

not

the

Besides, we strength of our economy or the
have a right to believe that such vigor and ingenuity of Our people.
a
horrible
future
is
avoidable In less than half a century we
been
the
overwhelming
provided we are ever ready with have
power in two world wars, sureffective
defense
and
the
cer¬
vived a decade of choking deprestainty of immediate and devas¬
si°n and digested a pervasive sotating retaliation.
V
I

disaster^

I should add

guess

assumption for

producer not only

a

suffered In the 1930's.

we

of such in¬

the face

in

calculable

ma¬

of
goods but of unemployment. Laas

made

be

transition. During the 1930's there
was

by Mr. Josephs before the

Johns Hopkins University Commencement

Exercises,

of

mid-twentieth

the

Changte is

tury!

ahead.

years
a

different

is

obvious

an

more

one

protection. It

my

one—that

you

are

the

type of mature people who
can accept forecasts in the spirit
in which they are offered.
Lets

then, what are the
prospects for the next

decade.

We

in the

are

midst

of

a

worldwide

expanding
economy
with heaviest growth in the U. S.
There

Sound Canadian Investments

are'

in

now

work

our

of

vitality and

our

we

count

can

it provided we give intelliattention
to
guiding the

upon

gent

forces of prosperity.

is

Now

there

not the

time

record

to

is

nor

the

details

Our

V

•

force will grow to 81 million. This
16% increase is no unsupported

complete investment service to United States investors

includes:

up

tion

V

A
in

:

V

Department with up-to-date informamajor Canadian companies.

on

Correspondence Department set
securities by mail.

Private

teletype service to
New York.

up

offices

our

Canada and ^o
V

to

for those who will make
this increase are already born,

guess,

■

A Research

and the youngest of

\

already
The

deal

proportion

These
a

higher

living and
for there has
long-term .trend in that

a

get

direction.
abled the
f

—and

invited.

and

The

do with
the

our

been

years

more

50

KING

STREET WEST, TORONTO,

CANADA

week
>

Montreal

Calgary

Ottawa

Kitchener




Winnipeg

Quebec

London*

Hamilton

Sherbrooke

Vancouver

the

What will

of

span

the

than

recent

and

-slightly
vacation:

Economists have

New York
a

decade

dividual

productivity

has

increased

2%

years

is

com¬

we

life?

hence
or

will

be

available?

the

Of
for

in

course,

the

end

of

giving
10

by

nicely

a

dividual

larger
raise

pull

I

do

—nor

calculated
imply

income.

it

which

:

change from individual selfsufficiency to the interdependof our assembly line society,

a

ence

control

over

man

has lost much

the supply of things

he needs. No longer is he able to

independent

an

liveli-

his family, for

cannot feed

He

the

example,
moids

rubber

Akron

at

he

treads

nor

the

can

farmer, until recently the symbol
the rugged individualist, raise

Gf

one-tenth

that

each

each

of

of the systemthat

labor

of

has

poured out so many products for
our
use
and enjoyment. It will
not

change

should

direction

its

you

so

be prepared for more spe-

help

ence.

more

interdepend-

will

problem

a

division

cialization and

some

That is

down.

only

and

consequence

atic

25%

a

will

Some

average

in-

Interdependence is an unavoidable

Changing Role of Government

indi¬
We have adopted
and pressed
viduals will have to solve. /:/'■!/ forward with enormous ingenuity
us

take

now

that

changes

you

This

is

a

of

prediction.

much

comfortable
vant

like

we

a

character in the
a

plot

novel

of

a

can

the

semi-auto-

are

and

no

rele-

last

ity of society for the
the
individuals
who
time

to

time

welfare of
are
from

dislocated

through

fault of their own. *

no

.

•

attempting to guess

creasingly important factor in our

sequel.

lives

expect

because

have

of

Government will become an in¬

a

are a

,

few clues,

continuation

of

already well estabthey are bringing

expanding

there

plenty

this abundance is the responsibil-

chap-

certain trends

lished

the

to

matic factory but the price tag on

dangerous

There

statistics

the
rea-

ahead,

years

more

However, there

us

at

may

patterns from the past. It is

the

We

as

look

a

sonably expect in the

the

family will have 25%

I do not

years

will emerge with

the

has

in¬

forecast

a

imply that each year will proceed

it

average

Auto-

Lt^an£nf o //!/ // We had
1 ke it that way.

in

estimated that

patterns in

new

be ter ge

ter of

lengthening

I

farm to fectory

Thjs drift £rpm

mation, electronics, atomic fission his crop without machinery from
and fusions will .all create new
Detroit, oil from Texas and ferdevelopments. This is going to be tilizers from Florida.

steadily shortening work

a

average

machines

be the

area

faster—this

even

face of

of

power

•.

individual

by

the

'as

more

pounded.- Of
Investment Dealers Since 1921

jobs

Let

50

yearly

LIMITED

has

of

social

dexterity

the

machine

our

butter

increased leisure and

lengthening

en¬

even

For
of

it,

crop

I guess

us.

hood.

\yorker to produce more

have grown.

McLeod,Young,Weir & Company

want

of

standard

been

affiliate, member*

ship in leading Stock Exchanges in Canada.

are

;..//'/

individuals will all

tion of

Inquiries from investors

avail¬

women

been made for this trend,

will

'

schooling.

across

j.

our

of

are

able for employment is gradually
increasing and due allowance has

they

Canada, and through

the group

their

starting

Membership in The Investment Dealers* Associa¬

-

three million

statistically as unem¬
ployed.- Ten years from now this

annual

Benson wishes we
guns
out - of

make

ucts will affect us?

the^ division of labor? What kind

another

and

classified

could

achieve

What will

service

buy through us many high
quality Canadian securities which make very sound
investments. Some of these also have attractive growth
possibilities.
..
can

the

as

that Secretary

along the road. What new prod-

cluding
United States investors

eat

can

of farm bills reminds

The individual

occasion

force about 70 million

people, in¬
three million in military

it wds over 60%. But
only 12 %% raise more than

n0w
we

Workers OnT hundred

ago

m_rev0 uhon.
is not just a change from rural to
.That certainly is an indication urban patterns of living. It is also

see,

economic

fa™

or

years

been

prosperity.
enough

Also

changes

because

form

ment

not
any

have to per-

alleviation

and

clearly
one

it will

functions

many

of

the
us.

of

adjust-

which

are

responsibility
Fine

as

the

of
old

adage is that the best government

is

the

least

government,

it

must

Number 5548

Volume 134

be

least' gov¬

as? the

interpreted

the

with

consonant

ernment

the

confronting

problems

The Commercial and Financial Chronicle

.

..

'X'X ':A "];•*:-j;'i

governed. ''

This penetration of
into our business and

further into
tion in

the

age

and also
their relations tions your textbooks, ,-dnd your
government.. Freedom,, ip-, associates your teachers,
dividualism, and conformity are
And one 'last ' word!' DhrtT 'be*

sions,

of specializa¬

Communication be¬
specialists is getting harder

harder

government
private af¬ management

to

achieve.

ana

bound

The

the

Yet

freedom

coordination of

fairs must be reckoned with more
and

in

more

Here

future.

-^the

main concern will be
maintain
a
reasonable

again

our

will

be the

specialty

ground

best off. Besides your

will also have to
how
to
balance between as much free¬ maintain a generalized familiarity
dom
of
choice, action and in¬ with all the important compo¬
nents of our American culture.
dividuality as possible on the one
you.

,

hand
the

self-restrictions

the

and

hand

other

industrial

on

imposed' by

living.

an

urban

and

economy

, v,

,

:

The third and last of the

sary

attitudes

neces¬

is a general flexi¬

The size of the World will con¬

of

shrink

to

will

communication

industrialization

As

channels

the

and

effective

an

improve.
into

filters

change.

ity,
of

and

/

to

eco¬

are

the

like

which

guide

creativeliess

you

continuance

who

but

& Co.

If

you

/

-

,v;. /:,

trained

been

to

want

study. Many

demic

the 'staff -of

will

become

,

v.*'

•

.

,

„

Chronicle)
OAKLAND, Calif .—William K.
Fujita is now with United Western
Securities, Inc., 1419 Broadway.
V (Special to The Financial

For many years he was with Halsey,

nothing

property

i

Stuart & Co., Inc.

of

acquisition

make

to

man—or

a

a

nation—cautious.

.Faster Growing Uncommitted

DRYING TRUST COMPANY

Income

tangible
nation should

Along with the
perity of

our

pros¬
come;

growing leisure and wherewithal
to enjoy it. The economist talks
of

discretionary

!

NEW

'

,

YORK

'

super-subsis¬

or

tence income. This is the uncom¬

income which

mitted

is left

OF

STATEMENT

over

CONDITION,591UJ
6

after the. accustomed standard of
food, clothing, and housing have
their
share, and it will
grow
much faster than the in¬
crease
of gross income,
In
this way
we
will have a

S.

Cash and Due froiri Banks

areas—the

new

lion,

d d i t ion

a

arts,

U» S.

leisure,, un¬
appliances,
greater convenience
a 1

foods of

and

even

host

a

of

hitherto

luxuries

Other Securities

I

scale.

think

play

,

347*009,250

interpreter. It is time to
it safe, abandon prophecy

and turn to the harmless occupa¬

4,530,098

its

Agencies

■

,,

~

393,685,859

President,

.

.

.

. .

.

.

.

59,993,998

•'

.

HARVEY, JR.

DAVID

by
■;

.

.

10,334,042

few

a

R.

MACDONALD

Chairman and

President,

General Cable

Corporation

Mortgages

DON

22,780,271

Customers' Liability for

Acceptances Outstanding

•

•

9

•

33,610,925

Accrued Interest and
..

.

con¬

0

0

W.

$1,676,510,235

Canada

Deposits

MICHAEL A.
New

Dividend Payable July 2,

wards

in

people.

the

with

and

men

couple

a

or

older.

diverse

world

of

Portfolio

PETER

.

.

f

$1,492,755,232
11,350,305

.

1956

with

denominator
and

more

specialization. The

Other Liabilities

2,000,000

■

36,037,445

•

6,356,331

'.

Total Liabilities

1,548,499,313

....

CAPITAL

spirit

and

in

ACCOIXTS

Capital Stock (5,000,000 shares—$10 par)
Surplus

23,010,922

Undivided Profits

more

Total Capital Accounts

better

50,000,000
55,000,000

s

.

.

.

.

128,010,922

.

.

The second

recognition

Capital Accounts

in

our

increas¬

complicated

trained

man

will

be

society

the

the

moving * further




and

PETERSON

President,

DONALD C.

Company

POWER

President,
General

Telephone Corporation

RAYMOND

H.

REISS

Manufacturing Corporation

.

....

$1,676,510,235

E.

SMITH

Former Chairman
and

of the Board

Chief Executive Officer,

United States Rubber
E.

E.

Company

STEWART

President, National Dairy

Corporation

WILLIAM J.

U.

S. Government Securities

monies

and for
:

:

pledged to

other purposes

secure

required by

deposits of public
law amounted to

FRANCIS

WARDALL

Francis H.

$89,430,634.

MEMBER

FEDERAL

DEPOSIT

INSURANCE

L.

WHITMARSH

President,

off.

best

Here, however, there is ah added
difficulty. As I have said before,
are

WHITNEY

J.

New York, N.Y.

—

ingly

we

.

pocket-

valuable attitude is

that

\

PETERSEN

A.

Products

Total Liabilities and

\

book.

■

Pennsylvania Co.

President, Otis Elevator Company

Reiss

1

in

,

'

HERBERT

cultivate the art of human
relations, the more successful you
be

-

PAINE

President,

you

will

S.

United States Tobacco

.

age

contemporaries. People will

this

.

.

be

younger

compete

be the only common
in

not

MURPHY

Senior Vice President

Acceptances: Less Amount in

to¬

of my

decades

will

.

.

•—

competition
will

women

of

You

attitude

Your
ahead

years

or

your

your

MORRISSEY

York, N. Y.

New York &

•

.........

Taxes and Other Expenses

comes

.

Dry Ginger Ale, Inc.

President,

to you who graduate
there
any
attitudes

First

MOORE

President,

5,905,379

•

Total Assets

and economic changes may mean

today? Are
that
you
should keep particularly in mind
for this exciting future? I have
three things to suggest:
'

MITCHELL

GEORGE A.
0

.

G.

Sylvania Electric Products Inc.
ROY

16,735,355

.

Treasurer,

Chairman,

1,921,136

Real Estate

Other Assets

MILLIKEN

Deering, Milliken & Co., Inc.

20,859,135

;

Conventional First Mortgages

.

K.

Vice President and

U. S. Government Insured

EIABIEITIES

social

these

LUKE, JR;

Pulp and Paper Company
J.

LEROY

least

what

to

L.

MINOT

Banking Houses

;

Company, Inc.

President, West Virginia '

Mortgages:

on

;

* •>>

.696,318,871

Suggested Attitudes to Adopt

as

;/,"V

766,646,911

would not eat Daniel.

there at

FOGARTY

,

Continental Can

they drew the line at prophets."

clusions

BRISTOL

President, The Flintkote Company

Other Loans

They could eat most things, but

Are

P.

THOMAS C.

•4Y

Insured

or

U. S. Government Securities

F.H.A.

;

r

:n'.;:

.

I. J.

or

:

'

Chairman, Bristol-Myers: Company

by U. S.-Government
Loans Secured

WEST

H.

President

3'

HENRY

3,150,000

f

.

-

giving advice to someone
or other, I cannot
forget Samuel Butler's dictum—
"The-lions

\.y:

38,996,511:

.

;.

v

Loans Guaranteed

tion of

else. Somehow

of the Board

Underwritten

or

Loans:

part in improving it.
Here the image in the crystal
ball
loses
its
sharpness and I
begin to lose some of my boldness
an

r

will

it

steadily become a happier way of
of life, and you who graduate
today will enjoy it and have your

as

... ♦

...

We have
achieved
this
country mass
wealth, mass goods, mass leisure
arid
mass
access
to education.
This is a new way to live on a
national

Y

■-

briefly.

up
in

.

by, U. S. Government Agencies

beyond the reach of most.
The social. change through,
which we
are.- passing
can
be
summed

Government^ Securities

Stock in Federal Reserve Bank
:%

ENSTROM

■

Securities Issued

recrear

dreamed of household

437*145,535

.

N.

Chairman

of the indi¬
vidual. Mass markets will appear
in

WILLIAM

RICHARD

whim

or

if J

Securities;

huge growing pool of purchasing
power that may be spent at the
discretion

.

"

DIRECTORS

ASSETS

taken

CORPORATION

California, 225

With United Western

■

-

aca-

your

of

joined

Securities

South Beverly Drive.

A.

„

Columbia

Inc.

Company,

Richard

—

°maha: National Bank Building,

buildings, current publica-

*

and Lloyd A. Wadum have

(Special to The Financial Chronicle)

OMAHA,, Neb.

„

—

con¬

Co.,

R. Folsom, Sr., Paul J. Furst

gar

The

portunities lie close at hand
libraries

op-

&

BEVERLY HILLS, Calif. —Ed¬

;

With
Kirkpatriclc-Pettis Co.

enjoyment

Calif.

become

Three With Columbia Sees.

R. A. Nelsen I$6w

the

has

Bache

(Special to The Financial Chronicle)

stage in

new

Stein

with

44$
North Roxbury Drive.
He was
formerly with Daniel D. Weston

to

and social
generation

your

D.

nected

mighty future and
trained will lead the,

a

are

:

,

and useful life,
of your""?

happy

a

enriched

David

pray

intelligence

economic

have

This occasion
achievement of
a

ardently

the

and

"beVeRLY' •falLtS,

Amer-

way.

education

in

-

of

have the peace

so

we

with

our

machine

us

national aims. There

is

goal

have

an

for

together

will

the

the

sanguine

(Special to The Financial Chronicle)

the resulting adjustments at leisure
you
will
continue- the Nelsen has become associated
growing edge where innova¬ pursuit of knowledge. You have with Kirkpatrick-Pettis Company,

backward

each other's

not

is

be

to

jca>s future. Let

flexibil-

lifetime of learning.

a

afraid

education.

your

your

of

and

from

come

today

voca¬

nations, the tions are tested. We must be
difference between
our
plenty ready to reassess all the relations,
and their scarcity will decline in for example, between various in¬
relative if not in absolute terms.
dustries, associations, and profes¬
Thus we may hope that there
will be a better understanding of
hitherto

autonomy,

will

to

Social

authority

epqless story.

includes

nomic change is inevitable and so

encroach-

measure

commencement of

tional

personal

-The only sure way to maintain

:

*

tinue

the

bility in mind and opinion which
adaptability

meanings,

new

preserve

governmental

old and

an

is

on

to

against

of

merit

specialists require it. Those, then,
who cultivate the common

take

to

effort

13

Bache Add 5 to Staff

with

professions, careers and in

factory.

tween

and

an

(73)

Leggett & Company

,

14

The Commercial and Financial Chronicle

i|

(74)

plants

lision and the danger

In Harnersitiq the Atom

radioactive

Research Consultant, Oakmont, Pa.
tly-:;
V
V"''1;.-"/

ST

-v://

<\\ v

industry can be established. Dr. Foote encourages
costly research and development, to achieve eco¬

reactors^l^) increasing reactor's operating life and greatly j

T

reducing!

A

:

core

(3)

costs;

estabijshWut

of

of fissionable material and

recovery

industry for refining radioactive ash;

an

(4) disposition and utilization of recoverable fission products;
and (5) water disposal hazard, as at the Columbia River Hanford plant Deprecates nuclear energy as a panacea for under-

developed countries, and other extravagant claims.
There Is
tween

close correlation be¬

a

omists

of

living.

and

five mills per kwhr., of
which only three mills is due to
coal. Hence, if nuclear fuel were
free, a reduction in cost to the
averages

production and the

energy

standard

Social

econ¬

humanitarians

have

tnerefore her¬
alded

the

nu¬

vent

10%. The main cost of
in our homes is due to
transmission,
distribution,
cus¬
tomer service, amorti zation, and

power

clear energy as
a

for

panacea

u n

could not

consumer

exceed

ad-

of

non-industrial

.overhead,

developed
utter

Deprecates Extravagant Claims

non¬

Every issue of

Indus¬

sense.

trialisation

contains

is

ary
process.
The Hottentot

financial

farmer; must

sound

symposia

ly

and

from

sickle

the

to

cpvthp

t h

basis.

held

are

economic

on

a

Countless
the

on

social

in

pacity.

The entire nation appears
an
impact complex. Fi¬

have

conceivable

every

ca¬

aower, to the reaper, to the com¬

to

bine, and

nancial advisors issue reports por¬

so

One

on.

cannot

ex¬

pect

a
nation that has failed to
utilize coal and oil, whose
people
are unfamiliar with the
mechan¬
ics of a monkey

traying

a

impact of nuclear
the fossil fuel indus¬

power upon

try.

Many

agencies recommend
liquidation of petroleum and

the

wrench, to profit

by the presentation of

the

coal stocks.

compli¬

Here

cated nuclear reactor. It is a wellestablished fact that utilization of
e3ectrical power requires an in¬

day

a

port of 1955:

vestment within the concentrated

few typi¬
Babson re¬

are

area

cal quotations from

"Trucks

equal in dollars to
the annual kilowatt-hour
capacity
of the plant.
Thus, a 200,000 kw.

money of $50 million for
plant incurs a

a

liability of

thing
for

between

facilities

$1

and

some¬

$2

billion

that

permit its in¬
utilization.
Such facili¬

dustrial
ties

probably would require dec¬
for efficient
utilization, but
not
immediately forthcoming

ades
if

would

result

in

discontent

unfriendly relations,

has been

as

demonstrated by most of

intentioned
The

though the

amounts

our

well-

philanthropy abroad.

oft-quoted

fbe fissioning of
even

and

statement

a

that

pound of U235,

mass so

destroyed

to

only 16/1,000 of an
ounce, is equivalent to the burn¬
ing of three million pounds of bi¬
tuminous
coal, suggests to the
public a cheap source of fuel.1
Even conservative

Lj;St~auss,

Admiral Lewis

Chairman

Atomic Energy

of

the

Commission, stated

in

September 1954 before a meet¬
ing of the National Association of

they

too

prices

27

to

cheap to meter."
householder
pays

30

mills

considered

by

kwhr.,
Utility

per

the

eration,
are

modern

the

bus

bar

of

a

conventional power plant

*An address by Dr. Foote before the
Society for Advancement of Management,

Pittsburgh, Pa.
1

Expressed

in

dollars

cheap. At $5/ton the
while

a

pcurd of

this

is

costs

fabricated would be double the coal value.
This

cost

tripled

to

must

allow

be

again

doubled

for incomplete

or

burn-up.




porations

and

responsible

the

for

technologists

the

several

cleaT-powered1. electrical
under construction

heating,

motor

or

fuels,
the firing line."

on

etc."

Such statements have

evidence

economic basis what¬

or

The

soever.

predicted

factual

no

industrial

for

the

next

expansion
few dec¬

ades, and supported by sound eco¬
nomic
reasoning,
will
require

nu-

on

for

improved designs to
veloped
later,
probably
1960-70

decade.

de4

in

the

/

v

#

be

stone

in

for

pioneering

engineering

most difficult field.

a

quesne

that

Company

the

first

amount

has

year's

The Du-

estimated

production

the

to

50

million

kwhr.

average annual produc¬
tion for the first five-year
period
will be 294 million kwhr.
The

mills

Production

for

kwhr.,'this

per

the

amount,

of

electricity is worth at the bus bar
$7,337,500.
The Atomic Energy
Commission has published
ment that the

this- period

a

state¬

development during

will

have

cost

Du¬

$30 million, possibly
is

ject to

investment, sub¬
amortization1, with a sim¬

ilar

greater

or

sum

subsidized bv

the government.
Admiral
Rirkovpr " estimates
the

production
actor

costs
at

core

knows

""'11

las*

of

52

how

but

the

mills

)twhr.

long such

with

H.

G.

power
first re¬

No
core

a

accumulation

operating data and development

research he hopes that the second

add

"•4

industrialization

will

spiral the demand for lubricating
and technical oils
It

must

be

and fuels.

admitted

long-time trend of the
as

well

costs

in

a

cost of pe¬
is grad¬

trend

development

new

at least based

perience

prises.

the

nuclear power should de¬

as

crease,

the

coal

as

ually increasing, while
of

that

with

on

other

past

new

Eventually the two

electrical
cross;

positive

ex¬

enter¬
curves

power
as

evidence

production

far

as

exists

any

today,

that time is in the distant
future,
assuming that direct and indirect
government

and

all
of

subsidy is eliminated
faqtors are considered—*
which will

be

^

However ^questionable

statistical

Nuclear Automobile
are

totally

automo¬

inconceivable,

pro¬

Estimating Costs
The

pe¬

nuclear

problem
at

Lane,

an

AEC.

of

estimating

cost

power

stated

Geneva

well

was

by

James A.
engineer of

economic

Quoting, "The main prob¬

lem is not
much

one

of

determining how

the nuclear plant will

cost,
estimating (a) how long it
last, (b) the operating and

but in
will

maintenance costs and (c) the net
fuel cost after adding charges due
to fuel inventories, fuel
burn-up
and

fuel

reprocessing,

tracting the value of

and

new

sub¬

fission¬

able material in the reactor; Since
there is no actual operating ex¬

perience with large-scale nuclear
reactors available at the
present time, most nuclear power
power

cost estimates

are greatly affected
by the degree of optimism used
in selecting the reactor amortiza¬

complaint regarding the cost of tion period, the load factor and
for
operating a
pocket the operating
and maintenance
flashlight.
Although one
pays costs."
anywhere from $200 to $600 per
Countless reactor designs have
kwhr for this convenience, he is been made on
paper by hundreds
quite satisfied if it helps in locat¬ of engineers supported by the AEQ
and
ing a keyhole on a dark night.
by numerous utilities and
equipment
manufacturers.
The

Economical

Power

Here

and

economics

Abroad

The

of

problem

economical

power
for industrial,
commercial, and domestic pur¬
poses is quite a different proposi¬
tion. Electrical

demand has

power

been

doubling

both

here

ten

every

and

broad.

years,

In

the

States, the utility produc¬
1955

around

was

them

of

many

has

subjected
to
accounting
All of the estimates
procedure.
may be questioned because broad
assumptions must be made since
few

practical operating data

be

before

secured

estimates
rect

involve

esti¬

the

of

it

indi¬

or

to

often
that

say

within

are

will

Many"

subsidy,

Suffice

estimates

distance

1960.

direct

government

concealed.

bil-

570

conservative

and

of

been

electrical

shooting

conventional

power,

mate's, based on sound economic at least for the high-cost sections
predictions involving Gross Na¬ of the country. The lowest esti¬
tional
Product,
population
in¬ mate by engineers of the recently
crease, and many other factors, approved Consumers Power nu¬
indicate that the demand in

1975

clear

energy

at

require

a

60%

load

factor

plant is

This

will be 1,400 billion kwh. To pro¬
duce
this
amount
of
electrical

plant

11

will

mills per
be

kwhr.

located

near

Lincoln, Nebraska, where the cost
at coal-fired plants is 8 mills per

will

total of 266 million kw.

kwhr. AEC Commissioner Willard

generating. capacity.
The
1955
utility service capacity was 113

clear

million

with

kw.,

so

new

F.

capacity

data

be, the

may

coal. /. A few of the smaller
plants

show
of

Libby believes that large, nu¬
plants should be available
costs

power

6

around

to

8

new

neering for the distant, future.
Few people realize
that, for the
production

of

nuclear

fuel, the
Atomic Energy Commission is the
largest consumer of convention¬

gives

western states.

our

the

■\;/ Conditions

quite

are

different

by

of

U.

the

S.~

sales

AEC.

of

These

power

maintained
level
at

a

at
a
sufficiently low
plutonium can be sold
premium.
and

Produced in Problems

atom

capture

of

in Great Britain.

fissioned

by the
splits into

neutron

a

two other

total

products.

AEC

equal

for

what

to

the

is

country

mine

o n s

Hence,
mostly

on

dozen

by

nuclear

has

coming ten
means

plants

petroleum,

to

Miners will

so

a

to

paper,

nuclear

no

and

present operating conunder
nationalization.

England

the

ours

simply unable

sufficient coal.

not accept

d i t i

the

production

fuel, its percentage rate

increase is similar to

the

a

only

requires

of nuclear
of

Even though tne
demand of Britain is

power

roughly

a

Mw day of electrical power,
of radioactive fission

grams

products

These

periodic table from zinc of atomic
number 30 to

number

elements

gadolinium of atom¬

64.

Since most

formed

so

trons, the build-up of these prod¬

that

ucts will eventually kill the chain

reaction, and the reactor must be

certainty

can

compete

with

that

several

coal-

Continued
I

AEC

Number

^

/

of

6-Year
Billion

Year

Kwhr

Equivalent

Duquesne-Westinghouse

'

Fiscal

page

/'y/;-./'

Electrical Power Consumption by
^

on

% Total

1948-49

3.6

1.3

1950-51

Settled

Production

1.4

3.7

5th-Year

Average

U. S. Sales

12

*

13

;

Production

7
8

4.2

1.3

14

9

7.3

2.1

25

15

enough, do not include minor in¬

1952-53

10.1

or

the power used

by

several thousand contractors other

than

those

government

operating
plants.

the
-

major
-

-

2.6

34

21

19.8

4.8

67

41

40.0

9.0

136

1955-56

59.2

12.8

1956-57

64.8

1953-54
1954-55

______

the

neu¬

plants. It

1951-52

although

of

absorb

astonishing

figures,

em¬

something like 80 primary
isotopes extending throughout the

table

».

formed.

are

brace

about

years

power

four

program, ic

construct

atoms, known as fission
! Assuming
25%
effi¬
of heat
conversion,
for

ciency
every

1949-50

total

power, used

Table I

.

Every

-

ten of

is a free by¬
is, if the unknown
chemical processing costs can be

capacity.

ally developed electrical"power in
the
world, and indirectly is a
major consumer of coal. Its elec¬
trical requirements exceed that of

and

product—that

situation that nuclear energy must
compete for a small fraction of

is

its pio¬

modern

power pro¬
duction exceeds 8 mills. We have

serves

admiration- in

total

plenty of coal for the foreseeable
future, so that it is against such a

project is certainly not a moneymaking venture.
Duauesne re¬
our

made,

higher costs, but only 4%

the

over

stallations,

Nuclear-power-driven
biles

mills.

these

discussed

later.

new

being con¬
imported from

now

oil

Venezuela and the Middle East.

of

that

are

fuel

power

.

but,

to

fifth

charge will produce power at 39
mills, and the'third installation at

ex¬

plants

verted

oil,

Even the most
must admit

posed

amounting to* 153 million kw., is mills and small plants at 10 to
necessary. According to the Fed¬ 30 mills.
Some of the more op¬
vear. after all the
operating dif¬ eral Power
Commission, the gen¬ timistic crusaders have even sug¬
ficulties have been
overcome, is
erating , costs by large mouern gested negative costs through the
estimated at 482
million; kwhr/ conventional plants run from
2l/z use of breeder reactors. In such a
For the total production over the
to 8% mills per kwhr., depending
design, the more expensive the
five-year period, Duquesne esti¬
upon location and accessibility to fuel
charge, the more money is
mates 1.4675 billion kwhr. At five
settled

Decentralization
and
suburbani¬
zation will increase
mileage, more
turnpikes and better roads will

panding

a

fired plants and certain

a

tion for

Shippingport; certainly an outtanding achievement of the Westinghouse Company and a mile¬

of

fuel.

consumption, and the

of

had

we

For example, I have never heard

lian kwhr.

Let us consider for a moment
the Duquesne-60,000 kw. plant at

gasoline

to

crusaders

barrels

barrel

one

would claim

United

Non-Money Pioneering

ever-increasing amounts of pe¬
troleum. More autos will use more
hydrocarbon

several

produce

the

and data that will be useful

ence

one

and

required

ardent

plants

or

All, so far, are
costly experimental developments
designed primarily for the pur¬
pose of securing operating experi¬

long-time future,

so

$7,500
$11,350 and

/
ha* greater admiration

one

,<

than you? sneaker for the splen¬
did pioneering ..work of th* cor¬

half of which

some
not

coal is worth

U235

No-

'

quesne some

should

at

•

"Gasoline stations and local fuel
face
a
questionable

for

electricity

quite independent
nuclear power develop¬

companies

turn

as ra
reasonable re¬
investment. The value of

trans¬

|

,

obviously

Commissions
on

cross-country
.

"Businesses concerned with
any
phase of conventional power gen¬

cal

present

obvi¬

priced out of the market

are

such

energy

to

(Reference

by more efficient atomic fuels."

troleum

The

use."

fu¬

•

Science Writers that "it is not too
much to expect that our
children
will enjoy in their homes electri¬

around

some¬

"Coal and petroleum
will be
used for synthetic chemicals after

an¬

power

may

our

economy,

of any
ment.

and

buses

from

portation).

plant operating at 70% load factor
nually. Hence, Mr. Stassen's phil¬
anthropic gift with the taxpayers'

and

run

highway
ously is

'numerically

will produce 1.2 billion
kwhr.

ture

will

overhead power
lines with atomic batteries for off-

for efficient elec¬
distribution that is roughly

necessary

trical

a

fixtures in

permanent

impact of nuclear

energy

e

the

to

items

news

become well established

now

progress slow¬

Dr. Paul D. Foote

daily press

our

extravagant

is

drawing boards.

regarding the nuclear power in¬
dustry^ which it is assumed has

evolution¬

an

be

now

countries. This
is

it

vast

nomical power, an4 discussal such problems as J (1) estimat¬
ing costs without actual operating experience with large-scale

+

merely to offset

of troleum industry.

supply

volumns

Duquesne

it will be many years before 200
finq$ from oil shale, of which a Duquesne plants or their equiva¬
supply exists, and from lique¬ lent are in operation.
fied coal and lignite.
There are many uses of nuclear
Further¬
more, long before the fossil fuels power for which the dollar con¬
are exhausted, the scientists will
sideration is of secondary impor¬
nave perfected systems tor syn*
tance. The strategic value of nuthesizing fluid fuel from solar clear-powered submarines, of
photochemical energy transforma¬ small power . plants at isolated
tion. > Our present fossil fuels are military
bases,
possibly
large
simply stored sunlight of past ships such as carriers, and, less
eons, and our photochemists al¬ evident perhaps, nuclear-propelled
ready have far surpassed nature airplanes, is ample justification
in the efficiency of this process. for
devoting a portion of the na¬
The auto, with its internal com¬ tional tax
budget to such devel¬
bustion motor or turbine, and the opments.
We have many ana¬
service station, will continue to logous experiences in civilian life.

probes the baffling problem* still to be solved and concludes
before an economical nuclear domes¬

'T

to
one

our

exhausted, service sta¬
tions will dispense liquid fuel re-

that it will be many years
continued

oil
no

crude

Former Executive Vice-President, Gulf Research Laboratory,

tic power

If

when

fifth

the AEC electrical power demand
for the production oi nuclear fuel.

of scattered
The

products.

ing liouid fuel.
Even
domestic and foreign

.

*

fission

and

number / of

,r

necessary

cheapest power converter we have
today is the automobile engine us¬

By PAUL D. FOOTE*

j

fourth

showthe

cle and because of the risk of col-,

Problems to Be Overcome
r

The

partly because
of the tons of
shielding required for each vehi¬

Thursday, July 5, 1956

...

83

202

123

220

134

-

22

Volume 184

Number 5548

.

.

.

The Commercial and Financial
Chronicle

(75) * 15

attractive

up

Mortgage Lending

what
in

all

meet

flow, and

savings and loan associations.

There

are

527 mutual

some

posit

sav-

ings banks in the country and the
overwhelming majority of them
are tucked
way up in its Northeast
are

at all

none

the

and

only

a

nSnV

and

Mid-

1946

West. In Penn¬

sylvania,

Hor

the

and

10

we

Vifr

were

site

easily

v

state,
there are only
seven; but in
New England

u*

for

I

need

not

by

the

job

was

have been

never

Federal

Veterans

They,

like

where

local

thick-

concerned.
.

_

I

K

,•' "

well

thing could happen to

same

become

2f

lending

a°;;S

of

10

last

years,

T»Jninn

ihn£l
J-Za

iri

You

32

billion

than 55%

dollars

it '

Hn

.

new job to do.

adds

and

up

our

was

to

^rtgage

the

life

insurance

compa-

are
the
only
mortgage
lenders whose operations are na-

on

the

comparative

national

many

years.

The other principal sources of
mortgage funds, and I mean specifically the federal savings and

loan associations and the

cial

banks,

make

a

at

jn

their

own

immediate

mortgage money. ;
Ten years ago, we

order

to

obtain

Contrasting us, for a moment,
with the life insurance companies,
find

you

that

they

more

lend

money to
mutual savings

the

have a lot
than do the

national

mortgage market.

banks; but as a
matter of actual practice, they do
not invest as substantial a portion
of their assets in mortgages as do
my brethren. The combined mort-

..........

___

When

we

,

state operations,
activities

to

_

,

confined

we

FHA

out-of-.

our

VA

and

We found that the

gages.

our

mort¬

govern-

companies average somewhere be-- mental guaranty which accompatween

30

figures
to

and

40%.

which

obtain

I

The

have

nied these loans

latest

been

indicate that

tive

able

of

life

was

a

very

effee-

to

preserver

have

Jan.

strapped around us when we ven1, 1055, their gross mortgage hold- tured into strange waters.
If I
ings amounted to 26 billion dol-' may mix metaphors, VA and FHA
lars as contrasted with our 17!£ provided a pipeline
through which
billion.

*

as

;

;

Mortgage Ratio
If
II

vou
you

revf ®

review

th„
tne

>

mortgage-

half

in

tering into

their

assets.

York
gage

tb

exceeded

Many of

contemporaries
portfolios

70%

mutual

«ny

have

running

of their

some

savings

of

mort-

65

num¬

of the

banks

in

the country.
The

money

ei.ty

tent

we

a
or

to

operate.

New think

from

assets, and

bered among these are

largest

40%

one

officers
the

activities

ing

our

sena

few times
the itnc?
fES! Thi last
a

rapidly expanding communities; It
usual
was

spend

we

have

to

invest

01

a

our

lenaing

few weeks

in

whic1?, we proposed to

Generally speaking, we
did a reasonably compe-

job, but we realized that we
not hope to become experts

could
on

any

town

."

period.
Let

me

;■■

give

in

lender

can

two-week

a

'

•

you

the mistakes that

which

an

an

example of

inexperienced

make.

the mortgage
officer of a New York institutional
lender financed an operation in

address by Mr. Br.dand belore
the Northwest Mi>rt«ja-<»
cii-iic. M-rtra-e

eageTanT^nd"^then'kfdde^me
®a°
loans ana men Kiaaea me

Baakar,

A,soei.,i„„

America "s«,lie




We

ran

legal

into

perfect
imposed

*a

obstacles

legislatures

in whieh
Most

of

the

maze

obstacles

advance

who

of

guard

month

give

Qr

If

we

having
might

qualified
be

to

.denied

courts and be in

force

the event of default.

^hcT

wiir

'

A few years

to

finance

this

because

are,

the

very

if

we.

didn't

would be in

we

a

:
"...

doors

and

.

when

X.

.

problem

'--yX'.

i

of four big shots in tho labor move-: ^
McDonald and Lewis..
And ;each,
as

now

Reuther,

statesmanlike

as
we
are
told by the newspaper labor writers
they are, is jealous of the other and each wants to make a bigger*
showing than the other, to have more power. The workers are*
their pawns in a game for high stakes.
:
-

Particularly is McDonald jealous of Reuther. and the two of
them are jealous of John L. Lewis.
So they pursue their ends
without regard to the economy of the country.
They are all
men in control of automatons.
When they sav strike, the workers
have nothing to say about it. They strike. The whole
theory of
v

the

organized labor movement is that man as an individual is
just another statistic, incapable of taking care of himself. Labor
leaders deal with

of

individual

the
:

On the other f

mass

I

men

if

as

they

;

so many cattle, incaoablb
ability. Considering man in
not questioning their attitude in the slightest.

thought

am

were

individual

or

-

It may be that the majority of the steel workers wouli like
to take an additional vacation.
But it is a fact that when they
return to work no increase in wages which they may get will
,

:

make up
an

for the time they have lost.

And the farmers will feel

additional pinch of the price-cost squeeze

less farm implements and automobiles.

they

<

are

in and bu^

;

Accept" service~~on °our
doinp

so

we

leave

With FIF Management

There

wp

arp-

even

are some states in'
not; oermitted
to

if

wanted'

we

to.

King Merritt Adds

(Special to The Financial Chronicle)

our-

(Special to The Financial Chronicle)

SAN

MATEO,

Christenson

B*

PORTLAND,

Calif.—Wendell

is

now

with

FIF

G.

MAINE—Sanford
with King Mer¬
& Co., Inc., Casco Bank Build¬

Stern

ritt

Management Corporation.
M:

•

is

now

ing.

Sometimes you are required to file
franchise and income-tax" returns,

With Sheffield & Co.

even though the income from your
mortgsge investments is not taxable. The extent to which we can
make

both

inspections -of
prior-

are

on

some

The

ago,

aboutmissing
opportunity

taxable.

Bill

was

We have the

we

qualify, we must work
our
way
through a maze of red
tape. We must file copies of our
Charter and By-Laws, pav a li¬
cense fee and appoint a local agent

old

Their language before such gatherings is usually' *
-X r'w
^ .•
j '

are.

mentr Meany,

es¬

we

behalf* In

they

to the animals.

position to en¬
contracts in

no

long ball..

,

their

to

a

poor

•

without

do *so,

access

even

they are haranguing
At the top of the late Phil Murray's
career, when
being portrayed as a great labor statesman, I happened
to get "into one Of his meetings with
f\vorkers. He was not now^
watching his language, his dees and dose were frequent. It was a
speech of incitement against the "capitalistic class."
:
Similarly with Walter Reuther. I was once privileged to read,
the transcript of his remarks in closed
negotiations with General
Motors.
They; were not fit to; be printed. The outout of the
CIO's educational department is a continual
feeding of raw meathe

mortgage

our

hand, if

real

and

their followers.

found to be doing

are

fellow who hit

Murray

are

negotiating behind closed

These

green

secured upon out-of-state

or some

Phil

tremendously helpful to the public, and more
information than they will get from the "labor specialists," if
they
could hear the language of these labor leaders when
they are

and
had passed,-.

tw0

a

catcher

But it would be

light or
forbid us t0 lend mortgage money
jn this or that jurisdiction.-: •
us

Carlisle Bargerwa

a

Workers.

we

faultless.

examine the local laws gov-

a

as

George Meany, Walter Reuther and David McDonald o£

as

Steel

men

attorneys

our

or a

the late

way,

.

they are the principal reason
why our investment activities are
confined- to
approximately
25
rather than 48 ctates

and

have them,
pickle.
| These men go around making speeches to Chamber of Commerce groups, to school and other civic
gatherings and their auditors usually come away
thinking what businesslike-conservative

and

states

pitcher

positions; of leadership
traditionally inspired as they

of

exist

leaders

come

:

statesC

still

they have added
specialist mani¬

labor
labor

their.

proposed to operate. '

we

of .these

cultivate

for

Regardless of what they do or . what they*,
assured by the labor specialist writers that they
are
all big four and square
men,-steeped in the traditions o£
American free enterprise, and it is a
very good thing they, are in

the

by

various

a

this

demand,

states

own

specialist.: A

to

the

properties

purchase

of

Joins Keller Brothers

(Special to The Financial Chronicle)

NEW

&

Conn. —John

LONDON,

F. Pescatell is

now

Company, 325

(Special to The Financial Chronicle)

with Sheffield

TY

our

books

are

State Street.

Street.

mortgage

L.

regulated in

jurisdictions.

3 With

contract

which

institution has with its out-

of-state correspondents, and there

BOSTON, MASS.—Ralph Radio
has become affiliated with Keller

Brothers Securities Co., Zero

mortgages and after the mortgages

.

is essentially time
money.
By that, I mean it is not subject
to withdrawal by check. Our de-

Wash.

the

from being out of the woodsy

practice, when en-. whiph
new lending area, to
quaiifv
two

or

in

gone

to popularize some of them, to refer to them
labor "statesmen" just as the sports writers have been wont to-

such

' mortgage funds flowed out of the*"selves
open to the°possibility thatNortheast into other, and more we might at some future date be

lending history of the life insuronly

our

business in certain states
,

A

started

the

cover

come to be deified.
So much so, indeed, that the well« £
heeled labor movement has put up memorials to them.
-;;
\
And it follows that the current crop ar^ all labor statesmen'

their

way

tate.

VA-FHA Aids Mortgage Flow

holdings of the life insurance

gage

ohstaclesr which

labor

In

were hamWft
■
„.,pnrf,11v hanking Inpered by legislation imposed upon.
stitutionS) and itta all important
us
by our own states. But along
for us to make sure that we are
about 1949 and 1950, we succeeded
not deemed to be doing business
in breaking these artificial barri¬
when we purchase mortgage loans
ers
and moved into

area.

to

man

Green have

When« we finally- succeeded
clearing out of the way the legal

either

reaching out
all over the country to acquire
mortgage loans. For the Most part,
they confine their activities, to

a

to cover Perhaps, state

man

But the newspapers
In this light

glamorize

*

after

desperate need of

practice of

ad-

has been the

have

as

^ynamic: communities' .f^^ut-rf-state®correspondents
amuch faster pace than did our.

their operations.

in

a

result he has

that in every case we have a separate type of mortgage contract
wtlich we must submit to our at-

and

essentially local
They do not

are

another

people

a

P°lice»

cover

festly has to

most pressing need for ft
in,
ernjng out.0f-state mortgage lendthe South, the southwest and;
Thev would exchange fiveThey would exchange fivealong the West Coast. These newer. or 'ten_page letters with their

commer-

madV*as

specialization.

o&tAlS built^ur Sms^'^nd?

in the Northeastern states and the

"

unquestionably

the

was intense.. We sought'
to extend
our. mortgage
which the flow of Eastern mort¬
lending activities into other areas,
gage money was ^diverted.^
We had, and we still have, this
In opening up a new territory,
immense concentration
of
time
our way is usually cleared
by an
money stored up in this reservoir

mortgage
We are

new-comers.

portfolio

ways

The life insurance
have, of course, been

these

scene

government; bond

for all practical purposes cash
^Ye soon found that in

vestments

tional in scope.
active

in

spite of the fast pace of new construction in our own territories,
the competition for mortgage in-

hies,

companies

ihat

that

"

lenden We.

time"

■

,

in hand.

approximatelv 17 ¥2 billion dollars
worth of mortgages. We, together
with

^

remember

to

City Hal1'

^orneyS

those days, the Federal Reserve
System supported the market, and

of this is invested

mortgages, -This

will

think

ntman

un-' stltutl0ns ln the East and we find

nrocu^bi^4himfgh

^

j

development of labor specialists by our press,
Newspapers used to be run so that there was

mortgage loans from bankin^ in~

preceding

WhAn

ad-

citizens to give him
yp and .now we can't
that,:: butthe very title of global leader
which the United Nations, with our paying
the bill, has bestowed upon us should make
au 0f us pr0ud. nO.^v'.'■*
:
,

-nn* freQuently are offered the opporinnf
tunity to purchase- conventional

of course

Americans have

national politics-

ernment, holdings pf qufs.

have

we

an

some

in. &

and:

areas

^

,

^t/nr

we

global
chests with pride. It doesn't
particularly matter^hat back in the
days when we were not a global leader we
could tell any nation that was
holding one of
a

vance we bave

EJ

found 11

M

i

Teadilv

Iiu

-

'important factor in
the
national
mortgage
market,
These savings banks have assets
more

the*-

us

that

,

out-of-state

demobiliZed^ePrTemen°UThi

weTe

>

the

-;

j

that

.

doubt

.

„

full

little

in recent years.
Our accomplishment in
leader should make us all throw out our

do

.

realized

be

our
■

nIededinfo ' £vesffa* mortgaged

utaceiand

j.

s^U^Ldts savings
In

•

values

,

they

cluster

.

my

to

seems

tremendously

becoming

Housing

the

or

•>"

There

'vanced

ap¬

building boom got under way, and,:consumlng and expensive.
. .
has been
rolling merrily along
state Legal Barriers

and New York

State,

vy

By CARLISLE BARGERON

that

this

which

on

add

^

haH

w

had

he

He will find this out-

fooled

were

Vr? ^

fh^

home

bedsprings.

situation

a

time.

com--""J,

the

years

fn hiin ffnannp
inrtsfi i/A
1

my

Washington
Ahead
of the News

It

old

ThprAhpi" hnnn

hnnH«

during

fill.
was

group, were on the scene and not

bank.

«in«iLSawo

through¬

the

out

commercial

From

ground that

slow^.^^

relatively
of

due

proved

two

here

there

is

to that

The end of World War

dot¬

ted

turnover

of

Administration

of

rate

sort

^ Administration.

;

venture much more deeply
into the mortgage field than could

South

three

or

It

the

fore,

_____

-

of

good fill.

even

mercial banks, and we may, there-

There

corner.

m

Notes that

compared

as

feet

built would

mortgage portfolio increase has exceeded deposit growth rate. '

.

on

20

'

helping to make possible lending
savings banks' liquidity-portfolio require¬

compares

built

<

is

Praises VA-FHA program for
ments with

was

least

bought into.

curtailed, ability to
compete with securities market—even though bonds have re¬
cently shown a spectacular yield rise, and the $17% billion
portfolio to have close to $2 billion annual runoff to reinvest.
,

we

automobile bodies and

ample mortgage funds to
construction

was

I didn't have the heart to tell him

Philadelphia savings banker anticipates continued nation-wide
new

it

at

wasn't

By JOSEPH J. BR ACEL AND *

mortgage lending flow,

right underhad passed
this particular job because we

had

Vice-President, The Philadelphia Savings Fund Society

reasonable needs if

Actually,

knew

Future
1

job that

our noses.

Role of Savings Banks in

MyrI D. Maynard

'

(Special to The Financial Chronicle)

FREEPORT, ILL.
Harrison,

Dolores

—

C.

Glenn

Meyer

G.
and

He

Robbins

was

&

Court
formerly witth H.

Co., Inc.

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

BOSTON, MASS. — Nancy Mcjoined the staff of Kel¬

Cauliff has

are m0r6 tha" seventy of these' Laureace E. Peck have become ler & Co., 53 State Street. Miss
was very
connected with MyrI D. Maynard McCauliff"was previously with B.
Continued

on page

25 & Co., State Bank Building.

C. Morton & Co.

4

» (76)

The Commercial and Financial Chronicle .IT: Thursday, July

T1

stance,

able to show $3,72

was

for
its

THE MARKET... AND YOU
By WALLACE

thf first three quarters of

a

all

the

adages to

in

510,000,000 Loan
H

William A.

the

,

is

Despite

restrained

more

year against $4.1
greeting the Federal highway
previous year which isn't construction bill's signature,
bad report at all for such and for at least International

troubled times. The company

the contrary, the steel shares

Elliott Co; Places

fiscal

far

were

the

STREETE

would

'

Highway equipment issues

•-

primarily

dip into inventory with General

supplier

a

Motors ' and

the

;

farm

income

simism to

note

in

mand for any kind of substi¬
tute metal,
put on a good

show. It

action

restrained

overall and the overdue
mer

any

*

*

sum¬

in

tions

steels

the

tracted at

that

The fact that June had
traced

re¬

shade less than half

a

summer

rally, it Still lies

case

different

favorable

of

America

peared likely at the start.
An

echo

of

another

strike

in 'a'couple

price

52 cents net
$1.50 dividend.

meager

against

the

posting

account for

bor¬

the

by

covered

The agree¬
negotiated by F. Eber:V,;
„
.

,

■

.

has applied

company

ap¬

indebtedness.

bank

The

balance

is to be used to defray the cost of

constructing

com¬

and

equipping new
testing
of
heavy
electrical
equipment

facilities; for
and

steam

continuous

under

conditions
final

as

load

and

other

they will exist

installation

in

upon

customers* °

expressed in this plants.
■
i
article do not necessarily at any
A portion will also be used in
time coincide with tivose of the
the expansion of motor manufac¬
"Chronicle/' They are presented
turing facilities.
The remaining
as those of the author onlyJ
views

.

$2,000,000 to be borrowed

last year's income near 1 y
quadrupled which could indi¬

NEW

that the downtrend has

has

The balance of

proximately $5,500,000 of the ini¬
tial borrowings to repay all of its
existing long term and current

With Geo. C. Lane Co.

W.

HAVEN,

months

additional

creased

Joins David G. Means
Maine-—Robert

the

capital

to

of

the company's
May 28, 1956 the

As of

company's backlog was approxi¬
$29,500,000 as compared
with $20,000,000 on the same date

mately

(Special to The Financial Chronicle)

BANGOR,

working

volume

business.

from selling
costs and 11% from operating

over

may

finance larger receivables and in¬
ventories resulting from the in¬

Conn. —Robert

Croft is with George C. Lane

lopped 4%

.

be used for
additional plant facilities and for

Co., Inc., 70 College Street.

stopped finally. A really
tight rein on expenses that

18

next

(Special to The Financial Chronicle)

&

been

was

The

were

Management of. the company
changed hands a year ago and

cate

Co. of

ux^ji c e

Elliott Co.

$10,000,000

ment

pany's sales against only 29%
accounted for by agricultural
equipment and tractors.
[The

Ins

the

a

before Dec. 1, 1957.

or

years

60% of the

an¬

with

agreement

$8,000,000.

stadt & Co.

highs * with fair

new

29

agreement will be taken down on

lowest

of

stocks

cement

the

is American construction equipment lines,

reasons

rather sharp drop to

a

1954's

has

ahead.
-

took

its

at

rowed

somewhat unanimity. The truck and

for

News which has.:,paid divi¬
were
Wheeling and
dends for nearly a century
Armco which have large nonbut had to dig into the till to
unionized plants in their line¬
make them, up in the last
up
which will continue to
couple of years as earnings

through the strike.
of the May loss for the indus¬ operate
Obviously these producing
trial average
probably would
units, feeding a rather urgent
qualify as something of a
demand for steel through the
rally for the chartists before
strike, will help greatly to
July dawned, but it was so
make their earnings compari¬
languid throughout that thdre
sons
more
favorable
than
was little
disposition to pin¬
those of the industry general¬
point it as the usual seasonal
ly unless the strike is settled
upsurge. The majority view
far mo^e ; speedily than ap¬
was that if there is to be such
a

Another

least comment and comparisons

able tcfresist the strike

been'available

while

at¬

rally wasn't apparent to
selling
important degree.
were

re¬

cently, which helps out, too.

.

'X'

enough to keep ij', A couple of special situa¬

was

the market

over.

diversification

June

on

purchase

Prudential

all but obscure

third-quarter trim in steel which have been
holding completely the company's im¬
were
sold
on
the
industry operations more or less in¬ their output comparatively
portant status in the truck
strike
this
week
and
the evitable. So the strike is not:
higher than the other auto¬ and construction equipment
aluminums, which to a degree without its benefits since new makers. It has also been ac¬
field. The stock recently has
stand to benefit from the de¬ orders will flood in once it is
a

tive

Elliott, President of

Co.

Elliott

nounced that under the terms of

for decline generated enough pes¬

Ford

.

Harvester

5,1956

E.

in

1955.

,

is helping the profit Bruns is now with David >G. Means,
^
;
Louisville; & Nashville in account and aggressive plans 6 State Street.
Except for the s defensive the
rails, which reported to expand sales are
FKLB Notes On Market
giving the
utilities, which were in
With Minneapolis Assoc.
$2.66 for the first five months
Public offering of $134,000,000
company a brighter outlook
(Special to The Financial Chronicle)
enough demand so that a new last
Federal Home Loan Banks 3%%
year when a two-month than it has had in some time.
quarter
MINNEAPOLIS, Minn.—Russell series C-1957 consolidated noncentury peak
was strike
disrupted operations. At recent prices the issue has W. Maddox has been added to the
posted by the average to start
callable notes, dated July 16, 1956
For the same period this year
shown an indicated yield of staff of Minneapolis Associates, and due March
off July, the
15, 1957, was made
year has been the line
Inc., Rand Tower.
reported $4.73 which, 5% which is above
on July 3
by the Federal Home
average
largely a stalemate for the besides
Loan Bank Board through Everett
looking handsome since the yield on the stocks
quality issues. At the halfway
R. J. Steichen Adds
Smith, Fiscal Agent of the Banks
against last year's depressed used in the industrial
mark the industrial

Quality Stalemate

expenses

is

average

average

was a

scant 4.38

figure, indicated that projec¬ has
points Higher tions of
$12 for the full year

might have to be revised
inconsequential
improvement representing a ward.^xjX;'^

under

(Special to

4%>

Tilt

a nationwide group of securi¬
ties dealers. The notes are priced

and

Financial Chronicle)-

MINNEAPOLIS, Minn:—Donald

at 100%.

M.

Young has joined the staff' of
J.
Steichen
& Co., Roanoke
Building.
R.

up-

an

gain of

hair

a

lately.

than at the end of 1955. This

is

been

Diversified Growth Stock

The
to

in

series

3y8%

W.

of the offering is
$144,240,000 of

purpose

refund

part

consolidated

F-1956

R.

Two With Kentucky Co.
Grace, which can be
notes maturing July 16, 1956.
rUpon completion of the financ¬
(Special to The Financial Chronicle)
percent. The 3.40 gain in the
grouped with any number of
ing and the retirement of the
rail average was even a better been
anything but market the major industrial classifi¬
LOUISVILLE, Ky.
George B.
notes due on July 16, outstanding
wonders despite a rather
cations from
chemicals to Miller, Jr. and Jack A. Moss have note
percentage improvement and
obligations of the banks will
joined the staff of The Kentucky
widespread
view
that
the transportation
came close to
total $919,000,000.
services, has
matching the in¬
Company/Fifth at Liberty, mem¬
worst news is past and the
dustrial gain even
been able to show
though the
superior bers of the Midwest "Stock Ex¬
rail
average
has been the prices of the leading issues market action throughout the change. " '
Four With Reynolds & Co.
been
well
slower moving one in recent have
depressed. recent doldrums. The
(Special to The Financial Chronicle)
1
popu¬
Joins Pacific Northwest
Production figures don't
yet larity is backed by solid fig¬
years.
BOSTON, Mass.
Robert B.
/'-V'A
(Special to The Financial Chronicle)
reflect any marked upturn for
Cay, Gordon G. Coogan, Parke L.
ures
including a jump in sales
A Non-Professional Attitude
PORTLAND,We. —John F. Jackson and Thomas L. Regan,
the industry generally which
in a handful of
years from Gaston has
Jr. have become associated with
joined the staff of Pa¬
The selling in the steels in probably will be the case un¬
$222 million to $427 million cific Northwest
a

mere

fraction of

a

The automotive shares have

—

.

—

^

the face of the
"Don't Sell
taken

in

nervous

age-old advice:

on

some

Strikes!"
circles

response

as

was

til

come

new

models

in¬

are

ux/;:r'',/.r■'y

the
Results

into

.

p.

a

proportionate increase

in net income. A little

ago
diversified
out

the market

Some
of
the
recently. The view
auto
parts
professionals, which companies, however, have
was
near
general, was that been able to maintain fairly
many of the steel customers respectable profits
despite the
were well stocked
up with the sharp reaction in auto output.
metal and without a strike
Kelsey Hayes Wheel, for in-

of

with

month

Satisfactory Auto Parts

of neophyte

investors who have

the

troduced.

the

a

the already wellcompany
spread
.

bit further with

a

trance

over

into

the

an

en¬

petroleum

through a joint venture
with Texas Gulf
Producing.
*

■

*

■.

sjt

ing

is

highly

favored

market circles

as

in

one

of

a

Offered subject to prior sale

with

City

—

Write

*

one

is

a

since
cover

Phone REctor 2-9570




c/o

Edwin L. Beck

Chronicle, 25 Park PI. N.

pointed up dourly
mishap this week in

was

a

of its local

or

—

BOSTON, Mass.—Gerald Rosen

Oppen¬

heimer & Co. has opened a branch
office in the Hotel Lido under the

has
rill

Paine, Webber Adds
BOSTON,

Mass.

E.

Frances

—

Evans has been added to the staff
of

Paine,

Webber,

Jackson

&

Curtis, 24 Federal Street.

Joins Nelson Burbank

-

Joins Gibbs & Co.

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

BOSTON, Mass. — Chen-Kae
Kung has joined the staff of Nel¬
S. Burbank

&

(Special to The Financial Chronicle)

MIAMI, Fla.—Richard M. Ken¬
nedy, Jr. has become associated
with
Thomson
&
McKinnon,
Shoreland Building.

eral

Mer¬

Lynch,

Pierce,
Fenner
Beane, 18' Milk Street.. <

(Special to The Financial Chronicle)

son

plants. It, too,

with

connected

become

WORCESTER, Mass.

Gerald

F.

Madaus has become affiliated with

Company, 80 Fed¬

Gibbs & Co., 507 Main Street.

Street.

broad

spectrum entity
its, electronic items

a

wide range

cations: rather
Y. 7

BEACH, L. I.

(Special to The Financial Chronicle)

With Thomson McKinnon

28-times

far greater growth in
the future
including its par¬
ticipation in atomic energy

Volumes in all.

Available in New York

With Merrill Lynch

Oppenheimer Branch

Sylvania Electrical
just before World War

which

Approximately 130

New

management of Samuel T. Cohn.

It

some

1939 Inclusive

530 Broadway, under the man¬

LIDO

the electronic issues still fac¬

1895 to

at

agement of Donald F. Grannis.

increase

is the

ness

II.

From

Co., Mr. Jackson with Lyons &
Shafto, Inc. and Mr. Regan with
Smith, Barney & Co.

DIEGO, Calif. — Lester,
Ryons & Co. has opened an office

*

A similar fat boost in busi¬

in sales of

Bound Set of "CHRONICLES"

Lester, Ryons Branch
SAN

field

since

"FOR SALE"

Reynolds & Co., 19 Congress St.
Mr. Cay was formerly with Lee
Higginson Corporation, Mr.
Coogan with H. C. Wainwright &

Company, Wilcox
I ' .

Building.

than

specialty status of

of appli¬
the

some

-others in the field.

one

of the

With Mid Continent SECS.

Two With B. C. Morton
(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

BOSTON, Mass. — Albert M.
Fortier, Jr. and Donald E. Kruithoff have, been added
of

B.

C. Morton

Streets; *"•-

&

^\i-

ST. LOUIS, Mo.—Jack M. Thiel,

-

is

to the staff

T. *-?V7 !C

now

curities

Co., 131 State

with

ton Avenue.
1

»'•?

Mid

Continent, Se¬

Corporation, 3520 Hamp¬
-

V
«*'

X

.

•"

s"

.-j,

v

7. "

or

~

*♦

rr

Number 5548

Volume 184

The Commercial and Financial Chronicle-

.v

.

(77)'
& '1k"»'«*

i

»

«

Eastman, Dillon: Union Securities to Combine Air

Conditioning

rather

from

summer

tioning

By ROGER W. BABSON

.

the

and
than

i«

n

»

•

*

*'

<t

■*.

*"

peak load will be

com'e when' its
in

17

gravity
from

condi¬

air

neutralizes

lighting

as

at

present.

advisor

Massachusetts investment
home

the retail store,

measures

automobile air conditioning

and

market, and advises

L. Sanford

potential air conditioning investors to postpone until next
winter the purchase of such stocks.
Recommends big and
small firms, and forecasts the day will come when electric

peak load will be in the

power

Own investment Firm
SAN

FRANCISCO,

Laurence

summer.

Sanford

4

The

gests

hotrweather

recent

column

a

sug-'

'

air condition¬

on

Since we use it here in my
office, I can speak freely regard¬
ing.
ing

it.

A

who

ever,

i nt

n y

how¬

reader,

is

and

needs

vary

Lloyd S. Gilmour (right), senior partner of Eastman, Dillon & Co.,
and

Joseph H.

study

President

name

Lloyd S.
ner

of

Gilmour, senior part¬
Eastman, Dillon & Co. and
F. 1 Randolph,

Francis

the

of

of

board

Corporation,

Union

con¬

pany,

Securities

Natural

that

announce

ar¬

new

firm

as

a

member of the

New

York Stock Exchange under

the

name

Union

of

Dillon,
Joseph

Eastman,

Securities

Co.

&

for
Pioneer
$45,000,000 for

$27,000,000
Gas

and

Beneficial Finance Co.
In

•

1955

their

and

this

date

to

of

firm,
after September the first, will be
Broad

15

new

King, President of Union Se¬
curities Corporation and certain
of the other
officers of Union

at

Securities Corporation will be¬
partners of the new firm.

be in excess of $17,000,000.

New

Street,

York

joining of these two or¬
ganizations, which is expected to
become ■> effective

on

delphia, Boston, Hartford, Buffalo,
Chicago and
Los Angeles,
and
branches in other smaller cities.
All
a

will

offices

wire

private

will

by

connected

be

system, and the
actively in
of
corporate,

new

firm

the

underwriting

engage

public utility, railroad and
nicipal
securities,
and
in
brokerage business.
^
•

Tri

closed

Continental

investment

end

with assets in

excess

company

of $290,000,-

000, is the sole owner of the stock
of Union Securities Corporation.
Union Securities Corporation

will

Salle

For the

period from Jan. 1, 1955
to date, the two firms had under¬
writing
and
private
placement

positions of about $620,000,000 in
corporate issues offered to the

public, aggregating approximately
$5,000,000,000.
Included
in the
$750,000,000
-

'

which

in

excess

were

financing

of

headed

has

porations, many of which are
among the largest companies in
their respective fields in industry.
The

two

firrris have

been

par¬

ticularly active in financing cor¬

porations in the natural gas pipe
line, and oil industries. Among
their

recent

$150,000,000

large

issues

financing

for




was

for¬

and

prior thereto was with Re¬
public Investment Co. and was an
officer of Webber, Simpson & Co.

CINCINNATI,

Ohio —West¬
heimer & Company, members of
the New York Stock Exchange,
have announced that John E. To¬
bias has become

general partner
Tobias, 32, is the
of Charles H. Tobias, who has

been

were

West-

the firm since

Other members of the firm

Irvin

are

a

Mr.

partner in

a

F.

Westheimer, Charles

Westheimer, Robert Westheimer,
Troy Kaichen, Fred Korros and
Harry C. Vonderhaar.
Mr,

Tobias

Phillips

is

graduate

a

Exeter

Academy

Dartmouth College.

the

Marine

theatre
was

Corps

of
and

He served in

in

the

Pacific

during World War II and

later recalled into the Marines

where he held the rank of Captain
in Korea.

He has been associated

with Westheimer & Company for

six years.
Tobias'

Mr.

firm

was

" i
admission

to

hold

is

in

50

Broad

more

business
nam

the

will;

be

is

late

too

install

to

now

this

for

BANK

clerks

can
be promised air
ditioning for next summer.

1§5 Broadway, New York

con¬

The

will

summer

go by quickly, and
merchants
can
give
than can shop¬

downtown
better

Founded 1824

air

c€o<ndilion

c(DC4iden&e</ SPta/em&nl

vacations

At the close

of business June 30, 1956

ping-center merchants.
Homes and Autos

of

the

ASSETS

homes

new

are

offering complete air con¬
ditioning.
It will soon be fairly
economical to buy a new heating
arrangement which will provide
also for air conditioning. At pres¬
ent, such complete instalments are
rather expensive, but I am sure
that the prices of these combina¬
tion

units

cially

in

will

the

be

reduced,

enjoying natural

espe¬

which

sections

As

gas.

a

are

Cash and Due from Banks

,

.

U. S. Government Obligations

.

718,345,208.52

$

.

497,202,923.29

.

State, Municipal and Public Securities
Other Bonds and Investments

.

.

.

Loans

•

•

265,913,912.51

.

•

.

.

,

.

.

.

.

13,130,672.80

,

1,468,719,423.21

Banking Premises and Equipment

14,445,061.50

Customers' Liability on Acceptances

45,056,839.02

7,9^0^09^67

Accrued Interest and Accounts Receivable
Other Assets

.

•

,

;

.

.

.

1,742,646.96

.

$3,032,477,197.48

prac¬

tical

matter, most homes desire
or two bedrooms, a liv¬
and kitchen air con¬
ditioning. (There certainly is no

only

ing

one

LIABILITIES

room,

for

reason

air

bedrooms of
rooms

can

conditioning

the

These few

children.)

Capital Stock
Surplus

$

,

.

53,138,250.00
146,861^750.00

.

.

26,614,171.43 $

Undivided Profits

be air conditioned with

individual

machines

attached

to

Reserve for

Reserves for

ditioned.

Acceptances Outstanding (Net)

Probably the

will

eration

insist

new

upon

Until this past week

conditioning

was

more

or

of
of

less

this

more.

automobiles
fad.

a

to

be

Payable July 1, 1956

Deposits

.

.

...

,

,

2,656,912.50

.

47,152,601.57

5,336,675.90

.

•

.

.

.

11,170,438.13

•

2,734,259,960.04
$3,032,477,197.48

Yet I

comment

made when self-starters.

Dividend

Taxes, Expenses, etc.

Other Liabilities

I felt that

same

introduced.

gen¬

226,614,171.43
5,286,437.91

Contingencies

windows. Almost every home will
have at least one room air con¬

were

Securities carried at $192,800,428.44
to secure

in the foregoing statement are deposited

public funds and for other purposes

required by law.

General Motors
accomplish

to

able

Convenient Offices

Throughout Greater New York

a

offices at

almost

advertising.

Opens

a

ful

I

ne1

sufficient

by

anything

rer

expected

to

parking lot look more color¬

than

a

petunia

auto dealers are now

bed!

Many

asking about

Y.

—

Mario Di

in

a

securites

$500

offices at

130 Put¬

ing. I forecast that this price will

from

COfeN EXCHANGE

summer,

N.

Avenue.

CHEMICAL

if the latter give

engaged

FREEPORT,
is

than

wages

merchants
pay,

conditioning

see

Nonni

mer¬

clerks

first

Street, New York City.

Mario Di Nonni

men

their

remember

Opens

conducting

securities business from

day, but

air

seems

Chinn

will
be
very president;
Marvin
M.
Bressler,
local
electric vice president; and Edward KalThe day will ligh, secretary and treasurer.

the

good clerks. It
shopping-center mer¬

cost

was

Norman

.

to

to

go

conditioning will help

chants

the

the "Chronicle" of June 14.

Nbrman Chinn

than

can

any

air

reported

previously

to The Financial Chronicle)

now

Westheimer Partner

in the firm.

a

they

lighting and

rather

men

Many

been

arranged by the two firms in re¬
cent years for more than 80 .cor¬

.

Vacha

La

the trading department
Krensky & Co., Inc.

merly in

-by xne two firms either alone, or
jointly with others.
V
Corporate

39 South

Inc.,

Mr.

Street.

1928.

issues

Co.,

of Arthur M.

will continue
to utilize its large capital resources
to acquire securities or interests
which
may
require
extended
holding to realize the potentiali¬
ties of development and profit,
f The new partnership will con¬
tinue
a
close
relationship with
Tri Continental Corporation.

were

&

(Special

cannot.

it

C.

James

—

'

such companies as was formerly an officer of Shea &
•
Corp., Borg-Warner, Company, Inc.
Carrier
Corp.,
Fedders-Quigan,
Trane
Company, York, Holland
Form Battery Securities
Furnace, and Worthington Corp.,
Battery
Securities
Corp.
has
which specialize in air condition¬ been formed with offices at 70
ing, might be better to buy or Pine Street, New York City, to
sell at the above suggested times.
engage
in a securities business.
In closing, let me forecast that Officers
are
Stanley
Kligfeld,

equal advantages as
conditioning, parking fa¬
cilities, vacations, lunches, etc. If

Vacha has become associated with
Leason

son

above

ILL.

Coburn Middlebrook

4

Admiral

They

Women

shopping center

to

(Special to The Financial Chronicle)

change its name to reflect its with¬
drawal from the securities business
with the public, but

to

women.

Lynch With

conditioning business of
BOSTON, MASS. — James E.
big companies, however, is Lynch has become associated with
compared with their total Coburn & Middlebrook, Incorpo¬
! '
rated, 75 State Street. Mr. Lynch

may also, air
conditioning
gradually
shift
over
to
men's helpful
to
your
clothing, underwear, office sup¬ power company.
plies, hardware, etc., which ap¬

their

CHICAGO,

but

to

as

conditioning.

obliged to

With Leascn & Go.

the
a

air

downtown

James G. Vacha New

mu¬

Corporation,

opportunity;

chants.,

Sept.

new'shop¬

fully convinced

am

must modernize

will

about

or

1, 1956, will bring together
two
of
the
larger
investment
banking and distributing organ¬
izations. The resulting firm will
have offices in New York, Phila¬

distinct

James E.

Therefore,

ping centers. I

Air

will

come

The

sales.

must compete with the

City.
The capital of the new firm

small

Roger W. Bab son

sally adopt air conditioning. This
especially ; applies to downtown
"Main u Street"
merchants
who

peal

$900,000,000.

The head office of the

H.

i

year

participations in
municipal
bond
issues
totalled
about
$150,000,000.
During
the
same
period the combined firms
headed municipal accounts either
alone, or with others, totalling in
excess

in

to

that the downtown stores have

combined

con¬

air

these

trad e,
univer¬

must

Transmission, Limited, $50,000,000 for Tide Water Oil Com¬

The

hold

order

their

coast

Chairman

rangements have been concluded
to
combine
the
underwriting
business and personnel of Union
Securities Corporation with
the
business and personnel of East¬
man, Dillon & Co., and to operate
the

of Union

which

weather! Air

products
offered
by
Electric,
Westinghouse,
Chrysler, Philco, and others of
the
big electric 1 appliance com¬
panies are to be recommended.

that

merchants,

Securities Corporation,
combined their firms under the
of Eastman, Dillon, Union Securities & Co.
King,

agreement

merger

summer

General

country,
am

try

be

ditioning

sections of the

I

not

the hot

different

vinced

formed

&

in the Russ

the same trick, it & Co. A graduate of Northwest¬
smart,
whatever
the ern University in investment man¬
of the market, to buy air agement, he has been in the se¬
conditioning stocks during snow¬ curities businesT in San Francisco
storms
and
sell
them
v
1* \ during for the past six years.

plumber.

for

Calif.—

trend

his local agent

Prices

has

>

might

should consult

or

Sanford

Company with offices
Building to specialize
It is probably too late in this in life insurance
stocks, Pacific
season
Coast Securities, special situations
to
buy good air condi¬
Mr. Sanford
tioning stocks. Investors had bet¬ and mutual funds.
ter wait until next winter before was formerly associated with Wal¬
doing so. If too many investors ter C. Gorey Co. and Schwabacher
Thoughts for Investors

do

t ed

e r e s

Opens

for installing

be very

air condition¬

much reduced.

Every Banking and Trust
Charter Member New

Member Federal Reserve System

Service at Home and Abroad

York Clearing House Association

Member Federal Deposit Insurance

Corporation

.

18

The Commercial and Financial Chronicle

(78)

No General Downward Business Spiral
first

Expected

National City Bank

"Letter" assesses the third quarter
prospects of the economy; the industries which sell and buy
production,

price maladjustments are not bunched to the
causing a general downward spiral."

or

■

'

i

/

..

■

.

*.

i

•

.

business

Favorable

jt.'

■

.

reports

through late June indicate no
spread
and
perhaps some im¬
provement in the soft spots, over¬
all employment and initial sales
achieving near record levels, rec¬
ord-breaking non-residential and
business outlay pace, bond
and
stock
market improvement, and
Reserve support of seasonal cred¬
it needs, "have banished," accord¬
ing to First National City Bank's
monthly July "Letter," "most of
the
forebodings
based on
the
describing the third quarter

Letter"

"Monthly

the

prospects,

points out:

T

"

industries
which sell to and buy from the
steel mills, the economy at mid¬
year
shows no striking change
from

"Apart

the

from the months before. The usual

lull

summer

in

trade is starting

production and
from a relatively

high level this year. However, the
vacation
slackening
in
output,
often means the
closing of entire plants or indus¬
tries for the vacation period, may
be accentuated by the need of a

which nowadays

industries

of

number

stocks. Even without

a

would look for

many

than

operations.

to

steel strike,

'

"On the other hand, few expect
the slackening to have depressing
effects

business

buying
Business

consumer

on

spending.

or

re-

jK>rts through late June have been

fufficiently favorable to moderate
the

pessimism

after

which

discount

the

appeared

rate

increase

jpnd the
^

disappointing automobile
news
in mid-April.
Recent reports indicate no spread and per¬
haps some improvement in the
£oft
spots. - For 'one thing, the
automobile
industry
is
cutting
down its inventories at

Over-all

tory

rate.

and

retail

sales

veys

a

satisfac¬

employment

have

levels.

near-record

achieved

Official

sur¬

indicate that non-residential

construction activity and business
capital expenditures will continue

(Jieir record-breaking pace in the
aecond half. The additional funds
made

available

credit

needs,

stability

ished

and

bond

the

on

the

of

tightening of

Continuous
"The

•

business activity
which

has

has

money.

feature

of

in the first half

been

the

persisted

retail

144%

the

of

of
In

rales

1947-49

have

months
billion

average,

a

fluctuated

for

14

between
a

$15.3 and $15.8
month, and in May were

dose

to

rales

have

the

peak; auto dealers'
declined, but other

rales have risen

Over-all

to

a

new

A

sales.

of

total

$3.6

tarrte

in
the
2V2

million greater than in May 1955.

'Wage rates have been rising and
will get a new impetus from steel
wage increases. To be sure, there
is danger of labor pricing itself
out of the market, due to inability
of employers to pass on increased
costs. So far, however, more peo¬
ple
have had
work
at
higher
wages.
There has been a steady
rise in labor income, as well as
income
Even

from

other

most

sources;

agricultural income has

vived

the

to

vember.

latest

The

(April)
at

come

$317.1

rate

best

billion.;

re¬

No¬

figures avail¬

personal

show

record

a

since

annual

in¬

rate

of

,

"In

June, there .was fresh evi¬
dence
of
strength
in
business
men's plans for buying new plant
and equipment—one of the basic
props
of current prosperity.
A
survey by the Securities and Ex¬
change Commission and the U. S.
Department of Commerce indi¬
cates that these expenditures are
scheduled
to
continue
growing
during the third quarter, to an
annual

rate

$36.7 billion, in¬
leveling off after mid¬
Of course businessmen
not be able to spend as much
of

stead

year.
may

they plan to, particularly if

as

extended

ly

steel

cancellation

strike

into

long-term

of

new

estimated
with

the

at

even

of

1,300,000

The Inventory

"Wheri

business

—and

Position

kinds

of

worked

steel

down

will
in

have

the

next

to

be

of

in

.'continue to rise while others




lines
turn

.

70,000 in

rind

at

May and

rfatfovnwiont

-Rudolf

industry's goal

appar¬

reduce inventories to
half a million cars or lower
by
the end of the '56
run in August
or

September.'
"Both

present

steel

special

*

"

and

bers^

natit

iw

automobiles

tbat

New"
^(^k
New YorK btocK

and

emphasized.

are

excellent

it

text

'>

••

others

and

should

terested in
....

,

give everyone in¬
acquiring background
-

,

-

.

,

,

salesman

statistician.

a

should

INVESTMENT

Krowl-

-

only be
gainecj by constant reading, study,

should

never

walkinff

a

v.- s*

others,

Excnange, ^

attempt

j

1S a

to

True

Appoints Mathews

slient

Leave

answers

questions

Math-

nTaceri

been

D-een P1®06"

j

understanding and
convincer.
It will be

^Trailer pects antd .u'ierl,M
to the $64

Robert C.

vice-

President, has

knowledge

charge of the
based upo
Bond

Depart- '

ment

approach to your pros-

your

jr

ews

prove

.—j—*—^

that

announced

what

obvious in your speech, your manner>

|

ATLANTA, Ga. —Marshall B.
Hall> president of the Trust Company of Georgia in Atlanta, has

con-

that

know.

you

i

and

rather

obviously

you

)

>*v-'

a

making decisions, of advising,

vincing

ANALYSIS
;•

Trust Co, of Ga.3? "

one

aotuarv

spouter of dry facts, or a "showoff" of any kind. It is what
you
know that gives you the power
of

•

..

can

of answering questions

iraner

under-

Next Week We Will Begin to Look
at the Other Side
of the Coin—

believed

*

the
th

operates,

and what the fiscal policy-of the

always

securities

a

become'

-

named Chairman of
lairman

±tau
Rail

have

I

and doing, but

finance Com-

the

of

bank

the
to

A native of
Concord

in

Us'subsidiary- ^>se wh°

g0 on,th® Programs- Pike County,
for* your customers desire guidance Ga.,Mr.Mathuoran(j

Van Par
van car

poration

they will trust

of

to

you

guide

ews

them if you are on solid ground.
So read and study to learn the

Chicago, itwas
Kugene

r.

M

scholar,

Smutny
a direc-:

also is
tvuauif

Smutny

ated

Gas
Trailer

Oil

u

:

^

and

Company,

Train

on <<Money-"

mittee of Webb &

can

procure

But

one

excellent

Knapp, Inc

.

he

a

new

formed
New

rm

Tnixr

corporat?on

York

i

«

Ktu

will

be

membership on the
Stock Exchange. Offi-

be

maintained

York

corporation

at

487

120

Broadway
Officers of the

will

be

*

secretary.

'

Whittlesev

of

Pennsylvania,
* ciHiajri»oxua,

Corporation, 65.

Broadway,

New York City,: an-that William E. Simon has
been appointed an Assistant
VicePresident of the
company.

qounces

With Gibbs & Co.

The chanters

with

507 Main Street.

Gibbs

published
puoiisnea

&

For
.

Co.,

many

,

Florida

of

by Mac-Dy Mac-

Mr.

years

widely

in

.

the

Mathews
State

of

,.

connection

in

with

the;

distribution of bonds in that State
is

and

well

known

to

bankers

there.

on bank reserves and

-

—

-—

m

•

on:

the, workings bf-

system

and the

active bond departments in the
country. It engciges in the distribu-v
tion of United States Government;
and municipal securities through-^
out

the

Southeast

as

well

as

ii\

major

financial centers all over
the country. - A'well-staffed office
Reserve:, in the financial
district of New

banking

our

Federal

Basic Principles of .Federal Re-: York
serve

Money
and

Policy.
and

Banking

'

by.
.

In

ten years.

Boom

Developments

City has been maintained
the Trust Company \for over,

After

V

7■

'r

•

Depression.

Financial

.With California Investors

World War II.

(Special to The Financial CHRONictsl

Deflation

the

and
,

F.

named Assistant Vice-

The Bond Department
of the
?n+*
deP°slt creation,
I6]3!1?11 0 ^onomic ac" Trust Company of Georgia is one:
^Vlt;y' a^d total spending and the of the oldest and best established.

J-

Monetary

WORCESTER, Mass.—Renato
now

TTnivprcilv

was

traveled

LOS ANGELES, Calif.

Banks.

(Special to The Financial Chronicle)

is

1946 he

milIan and ComPan^ New York-

Inflation,

.

tho

Assistant

an

President and in 1953 Vice-President.

this sub-

which will provide you with background for the following chapters

Corp. ;
Appoints W, E. Simon;

Borci

library.
interesting

on

career

every position in.
Department, he was
Secretary. In,

Bond

made

your

most

business

practically

the

are
you

business activity and
are ;so.-.dearly♦..developed' Ross -'
j' they
give vou a basic
Lvon^ UI?dersta. ing .of - these forces-

Union Securities
Union Securities

ing

Sidney

Lyon, *; president;
Harry
treasurer; and Martin R.
Mnrnfor,,

from
the

entire

with that organization. After hold-

ject I have Fead is "Principles and
Practices of Money and
Banking,"
revised
edition, by Charles R.

with

will

ces

dis<?olvpH

of

There

textbooks

and informative texts

,.

will

college

his

spent

Money

on

are many good books you

can

iVlaihews, Jr.

®ankting' He was m 1922 and has
employed by the
Trust Company

.

Excellent Book

There

v..

Institute "of

"

T,.

Company, and is
Chairman of the Executive Com¬

m,

KeS

.

V-W....JC.HV

New Corporation

lanta and from

»

beTOme^orfsurce^sM
^

tor of Associ¬

Hi eh

School in At-

walking encyclopedia

or a

from

Rovs

a

Trader

erad-

was

uateT

EuTeife Fy thi"ga wl?ich will help you to be
better investment advisor—you

.

inventory situa¬
tions, with liquidation both more

use

skeptical of the idea

was

because

Smutny, senior ..partner that

has been

may

ently is to

like

"What to

on

Rea(j", j

of Salomon Bros. & Hutzler, memhere
York
ock Exchange
Exchange

100,000 or more in
At that rate, new car stocks
expected to total about 700,000

mid-year, slightly below their
New Year's Day
level, and nearly
below
their
February

This

Federal , Government means and,
the direction in which it is headed;-

Study
Reading

e(jge an(j background

Smiifny Named By
Two Chicago Cos,

reduced

The

,

Qif^nfnpd
sustained

thA
the

and government now in itiaixt
view.'

City.

are

.

.

v

new

industry,

rity prices

when I first thought o' writing:

.

question^ O^rthec

mht"1ificAf is in
i^^n
The
offset

New

peak.

some

a.

ensue.

*

which

largely

is

and

automobile

near

0U^s.taiJding

Broadway,

be

be

may

these, adjvstments spread

months, but the big question is
how much general liquidation will
"The

ex-?

the government as they relate to
business activity, money rates, and
their recurrent effect upon secu¬

banking system

Ross, Lyon to Form

couple

upon

clearly

The method and manner;

stand Federal Reserve operations,;:

Your

>•;

not become

>

There is little doubt that
automobiles and some

effect

*

Simplify
-

,

?xruC^u
Whether

dis¬

200,000

justment,""

moment
,

Co

of

market;

open

are

in which our banking system
0perates and the fiscal policies ot

to

achieved

Series SLKn
this series of articles

and

$75-77 billion for

ing of the phrase "rolling read¬

that

been

hand, in the aggregate - the
extra push will be
missing.^ Adjustment to more prompt delivery;
schedules also involves reducing

all level.

stocks

neural factor in
fluctuations, at an

mean¬

something

stocks has

at

inventory situation, the
topic generally splits into three
parts: steel, autos, and the over¬

recent business

ual lines, It illustrates the

added

course,

level of

the

cuss

manu-

>

observers

we

to
their

and

reserves

plained.

Fluctuating
Medium
of
exchange which is constantly under
the control of governmental and
quasi-governmental
bodies,
no

over-all demand. Once the desired

now

this spring
1,200,000 and
which were com¬

bank

concern-

ing investments, but since

relating

operations

qualified

a

con-

cerning money as the method by;
which the banking system creates

policies

a

were

private

of

become

*

matters

in *he investment business a sound
bringing working
understanding of Money and our
stocks into line with current rates
ar\ Iug §y
*I1,1 Be±ore Vou cjn
of production. This type of accu-. one
can
understand
the
forces IP3" ;he "nancial page and profit
mulation appears to have about
underlying investment without an therefrom before you can evalurun its course.
t
appreciation and
knowledge of a e underlying factors in the econ"The buildup in inventories has,
money and our banking system.
?my\ you must know how our
Some

process.

facturers

compared
annual rate of

earlier this year.

month,

a

ex¬

maintained

the forecasts

smnuai

stability masks a wide
variety of adjustments in individ¬

of $500 million

at

For the most part, this has been a

1,150,000,

average

to

and evaluate information

Mr.

'number

"The

is money

investor and advisor of others, it
not only necessary to obtain

been

have increased stocks

pansion plans.
homes to be started in 1956 is

wish

you

important

money, the rediscount rates of thepederal Reserve, Federal Reserve

'money." It is the other halt of
the equation. Before we go further
let us make this point clear. If

factories

or

cut

not

the

two

coin,

is

uled between the second and third

and

have

the

on

and there is what it will buy
To obtain an understanding of
the science of investment it is
therefore necessary to understand

Trade Inventories

quarters supports the opinion that
a
brief lull in business activity
does

0 halves to

edging lower since February, but

at

'This

uPjer^ ar?

Sales, however, are generally higher in both
dollar and physical volume.

inventories

'
'

.

—

1953 crest.

Ac¬

occurs.

Such

sjdfs °f the fence. There

June.

the past two years.

—

11

—What To Read and Study—

Rough¬
increase in

the

postponement of
The 6% increase sched¬

projects.

in

of

ARTICLE

whole, two faces

voluntary

■

.

Fundamentals of Security Salesmanship

prices; allowing for these higher prices, the
physical volume of goods in stock
may be even with or somewhat

the rate

1

By JOHN DUTTON

the result of rising

"Trade

■"

Securities Salesman's Corner

the past year and a half has been

Lower

■

■

all-time

about 1 % less than had been

were

whittled

rate

of

anticipated three months earlier,
presumably because of shortages
and delayed delivery rather than

gains in non-resi¬
dential construction offset the
lag
government pur¬
chases of goods and services have
been largely a

two-fifths

f

,

in¬

business

•

.

4% above the 1953 peak.

tual expenditures in the first half

record.

housing. Total

of

an

an

expendi¬ present curtailed assembly rates,
stayed at approximate¬ is making progress with inventory
billion monthly for the, reduction. .Dealers' stocks
were
as

at

•

.

10% from the 1954 low and about

of

construction

period,

value

is

'

■

high.
Stocks have been rising steadily
since the end of 1954 (seasonally
adjusted) and when last reported
(April 30) totaled $84.4 billion, an
advance of $7V2 billion or nearly

mil¬

employed

were

persons

65.2

tures have

ly

book

below the

a level* second only to
record
set last August
and

after

2%, since last Septem¬
May it was 142.
Retail

.1-■'

May,

major economic indica¬
tors, apart from the usual seasonal

ber.

'1

"Rising income and employment
a strong underpinning for

month in

range

h\ !

to

provide

mon

fluctuations. Industrial production
lias
stayed
between
141%
and

'

■

•

Evidences of Strength

stability

month

;•

•

•

1,100,000

Stability

remarkable

1956

have* ban¬
forebodings

■•

,

ment" range.

stock

and

improvement;
most

based

together with the
over - all
business

of

measures

market

c!

Re¬

authorities to meet seasonal

curve

*

Federal

by

•

reduce; able

a little more
in industrial

the usual drop

•

lion

tightening of. money,"
In

-i'

down, and in which corrections of
inventory,
production,
or
price
maladjustments are not bunched
to the extent of causing a general
downward spiral.
.Thus far the
indications
are
that
any
thirdquarter inventory adjustment will
hold within the "rolling readjust¬

certain

more

industry in general.

Partly because of the accumula¬
tion of steel and auto stocks,, the
total

extent of
'

than in

ventories

\ from steel mills; and concludes "corrections of inventory,

I

and

necessary
come

Thursday, July 5, 1956

.

.

.

National

Policies

Implications
Debt.

and

of

JaWs

Rboert

j. Martin III

and 'Walter VL Roberts have joined the staff of Cali-

-

Practices In Inter-

—

J. Brett, Mary E. Hickey,

,

the

-

fornia

Investors,

national FinanceBoulevard.

3932

Wilshire

Number 5548

Volume 184

.

.

The Commercial and Financial Chronicle

.

(79)

Tax

Public

Murphy fo Become

Aspects of Foreign Trade

Utility Securities

Partner of Reynolds

By A. M. STRONG*

Consultant, American National Bank and Trust Company of Chicago

James

By OWEN ELY

a

Missouri Public Service
Missouri
Stock

Com¬

Service

Public

is traded

pany

American

the

on

Exchange but

substantial

a

interest in the company is owned

by the
pany

family.

Green

started

was

The
the

as

com¬

Green

souri

In reviewing

Company
Service

Electric

&

Gas

the extent and varieties of governmental inter¬

refers

in
1952
and
other
smaller acquisitions.
The average annual rate of in¬
crease
in share earnings during
1951-55 was 19%. However, 1955

Light & Power Company in 1917 earnings made only a moderate
with generating capacity of only gain over 1954
(91 -cents vs. 90
1,250 kw. The second generation cents) due to problems in con¬
with
a
new
is now represented by President nection
generating
R. J.
Green
and
the third by station, and in the conversion to
Executive Vice-President Richard natural gas at Clinton, Mo. Nine¬
teen fifty-six
C. Green.
V-'V'.
is expected to be
The
territory served by the the company's biggest year. Earn¬

dollar

the

to

and abroad, Mr. Strong
and the tax burden as the

shortage

attack

under

is

Communists

^

many

tion, confisca¬
stringent

1

bor

and"

cluding

agement now feels that the fore-,
cast can be raised to $1.07.

suburban

service

The

area

City.

Kansas
east

runs

past

The company expects to ask for
north of - the Missouri,
River, west to the Kansas State an increase in water rates ap¬
$222,000, which is
Line, and south to a point 30 proximating
miles north of Joplin. Five of the equivalent to about seven cents
counties
served
are
separated per share after taxes. Fuel sav¬
from
the
rest
of the
property. ings are a factor—last year the

Sedalia,

service

Electric

furnished

is

to

approximately
200
communities
(as well as extensive rural areas),
gas service to 13, and water serv¬
ice
to
four; revenues are 77%
electric, 22% gas, and 1% water.
Revenues

for

the

months end¬

12

ing May 31, 1956, were $11,735,600, and net income $1,764,500,
15% of gross being carried

some

down

net.

to

revenues

and

com¬

the

over

past

years

electric

natural

burned 75% coal and 25%

is expected to

it

gas;
this year
burn only 40%

coal and 60% gas.
The company has been i successful
in reducing some heavy line losses
in
its
gas
distributing system.
Since last April it has been able to
make several improvements in the
North Central Gas program which
this project

con¬

tributing a greater amount to net
income during 1956 than original¬

many

Hold "Fling

in

tions
D

Camp.
own

San

tember

and

A. M. Strong

in-

corresponding

of

increases

146%.

191%, and

The

Electric

a

air bases in the State of Missouri.
It

provides all the electrical re¬
quirements for four strip coal

revenues

running

are

the 1956 budget even though

over

actual

large va¬
riety of industrial customers and
also serves three of the five major
has

company

Kansas

the

from

revenues

City Mid-Continent International
Airport for the first five months
were only $28,000
vs. the $47,000
budgeted amount.
TWA did not
begin engine overhaul operations
as soon as they originally planned.
The

mines, including power for their
huge electric shovels—the largest
and latest of which is a $2.5 mil¬

of

lion monster whose

company's $6.5 million line

prove

boom gbes

as

high as a 16-story building. It is
capable of lifting 166 automobiles
at
one
time, swinging them a
distance of 290 feet, setting them
down on the top of a
10 story
building and swinging back for
load

another

all

will

seconds.

It

demand

and

within
have

will

45

to

50

7,000-kw

a

around

operate

the clock with three 8-hour shifts.

one-third of

These mines produce

the entire coal output in Missouri.
Another

industrial

Pittsburg-Corning's
plant

customers include a

of

is

Glass
industry

large number

gunstock
fire-cracker makers, a whis¬
such

enterprises

and

customer

Foam

Light

Sedalia.

at

as

key distillery,, a manufacturer of
baby clothes, a tobacco growing
and marketing center, etc. Indus¬
trial
revenues
constitute
only
electric

of

12%
such

increased

have

revenues

but

revenues,

(The

with

credit

York

New

and

City banks is expected to

Kansas

ample for 1956 construction
purposes.
In 1957 the company
will probably do equity financing
on
a
l-for-10 basis along
with
senior financing.
The

amazing

service

City

area

well

augurs

Since

had

have

pacity

around

area

continue

hillion
billion,

(Special to The Financial Chronicle)

.

Atkins,

enterenter-

These
ihese

is

Kansas

1952-55.

do some

The gas

The

remarkable.

has

customers
revenues

common

connected

645%,

stock

per

share

earnings

1,228%,

2,669%.

and

Of

these statistics came about
partly as the result of the com¬
pany's acquiring City Light &

As

a

cities

result
gas

of

terest

with

B.

C.

'-."i

Co., Mott Foundation Building.

&

the

company

on

these

towns

the

on

from

Cities

Service

have

1945, and the elec¬
system at Clin¬
Missouri,
from
Missouri
Power & Light Company in 1951,
as well as the absorption of Mis¬
distribution

ton,




become

Cormick

and

Company,

is

uation

and

sources.

countries

40

only

United

States.

therefore

up

Mc¬

is

chain

a

staff of

•

Accrued Income Receivable
Other

788,325.64

.

311,581.24

Assets

TOTAL ASSETS

1

$235,146,999.40

......

///

profit

ized

Reserves, Taxes, etc.

do

not

a

of

advantageous
tax

proper

important

a

business.

President

ar¬

in

the
ar¬

operating

loss.

NATIONAL BANK
AND

^Statement
June

by
26,

PATERSON

OF

COMPANY

TRUST

at
18 CONVENIENT OFFICES

IN

.

.

.

•

a

special¬

Methods of selling,

PATERSON

Strong at the IIIAssociation Forum,
1956.

•

P0MPT0N LAKES

BL00MINGDALE
•

PREAKNESS

MEMBER

FEDERAL

D

E

p

O

S

•

•

CLIFTON

•

RINGW00D

MOUNTAIN VIEW •
•

BOROUGH of T0T0WA

•

WANAQUE BOROUGH

Mr.

inoi^fiMahufacturers'

RIAL

P.

set¬

•

Chicago,

Board

Chairman of the
BENJAMIN

the
,

PETERSON

F. RAYMOND
*.

and often means the
between

....'....$235,146,999.40

TOTAL LIABILITIES

a

trade

link

international

3,266,450.83

..............

pay

foreign country is

The

or

7,000,000.00

Undivided Profits

United

the

4,000,000.00

$25.Par)

from

derived
of

-

Surplus

the

in

3,734,714.86

Capital (160,000 shares

taxed

establishment

an

an

of

Deposits

investors.
aire

$217,145,833.71

r o m

some

advan¬

tax

International trade is

Halbert, Hargrove & Co.,

115 Pine Avenue.

They

outside

The

rangement.

f

are

earned

income

on

subsidiary in

Wright

to

offering

income

on

taxes

There

corporations

Foreign

Security

added

330,000.00

3,232,763.68

Banking Houses

laws lowering

American

to

tages

Calif. —Henry

been

16,849,556.76

.

which

derived

income

foreign

(Special to The Financial Chronicle)

has

11,026,232.60

......

Federal Reserve Bank Stock

in
:

Mortgages

foreign trade.

passed

rangements

BEACH,

Other First

unprecedented

our

certain

Halbert, Hargrove Adds

Dunn

25,643,654.47

Mortgages .
Mortgages

domestic corporations on

difference

LONG

at

33.815.035.69
50,710,212.63

V. A. Guaranteed

in¬

.

56.824.179.68

F. H. A. Insured

conditions.

taxation

of

$ 35,615,457.01

Loans and Discounts

are

element

..

Municipal & Other Securities

arrangements,

vital

a

burden

taxes of

Building.

W.

U, S. Government Bonds

Congress recognized this sit¬

Our

new

with

PAttlSON

.. „.

Cash and Due from Banks

de¬

to

accelerated

these

of

impediment to

Calif. —James

affiliated

O)

COMPANY

of June 30, 1956

as

It

great

a

money

abroad

maintained

is

(Special to The Financial Chronicle)

BEACH,

IRUil

ANO

high peacetime levels is a serious

Two With McCormick Co.

E. Rickard and Emmett F.

and

licensing

sources

LONG

spent

picture.

The

eliminated

as

1

NATIONAL BANK

Manufac¬

world.

The

result

this

expects to earn

well

in

Taxation

rehabilitated systems in
as

Statement oi Condition 1

CONDENSED

manufacturing
subsidiaries
and
foreign corporations is primarily

this

be

effort

restrictions.

project,
operating losses in

should

6Y2%

Co'mpany in
tric

represented the

he

London.

in

FLINT, Mich. —Edwin E. Luke
is now affiliated with Goodbody

now
Morton &
are

Co., 131 State Street.

fre¬
quently faced with the dilemma
of either relinquishing these mar¬
kets
or
finding means to meet
competition and overcome import

business is growing rapid¬

presenting

num¬

increased

course,

Traction

the

(Special to The Financial Chronicle)

and

obstacles in

commerce.

have

business

velop

ly, and the North Central Gas
project is
expected to produce
over $1
million revenues by the
end of 1957 and $1.8 million by
1959.

of

deal

reacquired control, growth

dividends

1954

are

the

of

who

States.

Since 1940 when President R. J.

for.

of

Goodbody Adds to Staff

&and

Cahill

Chesley

G

affecting our sales in most

turers

decided to double the size.

was

is

countries

towns.

243%,

A~~*

A.

level, Ameri¬

high

a

international

and

under construction or
proposed.
The Raytown center
was only open two months
when

grain and livestock and
dairying.
S\

of

and

practically closed our markets in
leading Latin American countries

completed,

it

at

of the greatest

one

our

systems to be installed in 13 other

been

1953

chairman

meeting with
increasing difficulties in foreign
markets. The shortage of dollars

ca¬

16,000 farm, customers who raise

ber

Thomas

Raymond

with

interference

exporters

can

the service
City either

in

centers

shopping

future.

and

has

In

.

Three With B. C. Morton

pay
no
interest on
capital -invested ( and no- taxes.

be increased
are now five

to

There

900%.

over

Kansas

to

for the

substations'

three

1952

pany's industrial rates are very
competitive.) The company serves
five
colleges, as well as some

Green

Co.

&

national

..

1950

tion

prises

company's

two

during

was

American Motion Picture Associa¬

of 1956, commer¬
of the Federal
Government numbered 19,771
with
capital assets of approxi-

growth

suburban

in the
adjacent

place

taking

•

com¬

56%

14th).

Grace

revenue,

Missouri Public Service Company

211%,

a

Citizens for Eisenhower Congressional Committee. Between 1948

of ly expected.
While the company
which is had some difficulties last year private enterprise is most exten¬
high compared with the 58% av¬ over higher gas purchase costs, sive in international trade. Ex¬
ports,
imports
and
monetary
erage for the electric utility in¬ they were able to pass on to cus¬
are
controlled
in
dustry. Industry increases during tomers the entire temporary in¬ transactions
the 1945-1955 period were 148%
crease.
When the Citie&^ervice most countries of the world.
in kwh sales, 140% in revenues, Gas ease was settled before the
and 124% in average annual kwh Federal Power Commission, some Dollar Shortage and Tax Burden
While
United
States
exports
usage
per
residential customer; refunds to customers were made.
had

a

Co.,
subsidiary of W.

he

ac¬

$12
$12

as

Kleiser

&

Foster

Francisco,

Vice-

a

continue

R.

tivities. In May
cial
enterprises

matelv
mately

of

presently

will

and

Rockford, Illinois. (Tentative date
previously scheduled was Sep-

commer¬

and

Murphy

"Fling-Ding" has been definitely
scheduled for September 27th at
Forest Hills Country Club of

engaged

dust.rial

L.

the

is heav-

in

Mr. Murphy is

President
director

Our

i 1 y

James

425

at

have announced that their annual

govern¬

ment

cial

main

Francisco

Montgomery Street.

ford Securities Dealers Association

the

mocratic

e

Ding"

at

Reynolds

Co.

&

San

ILL.—The Rock-

ROCKFORD,

na¬

a c-

centered

office

practiced

by

F.

tivities will be

Rockford Dealers to

encroachment

is

by

Murphy's

-

Government

have approximated 79%

total

Station

Generating

should result in

residential

Electric
mercial

Clinton

laws

a

an¬

senior
partner. Mr.

government

or

was

the

ings for this year were currently
budgeted at $1.01, but the man¬

all

covers

York

Staley,

taxes,

part of 25
counties in Western Missouri, in¬
company

&

York

New

of

Thomas

is

Management

New

-

nounced

domestic

in

than

Reynolds

the

Exchange,

it

becoming
cognizant of the need for a better
understanding
of
foreign com¬
merce
problems.

N atianaiiza-

tory

different

trade.

coun¬

Curtain.

Iron

the

are

x

approval
the

promotion, financing and taxation

the

only by

in

but

outside

tries

not

E

of

July 31,
1956 subject to

"often means the difference between
operating at a profit or a loss."
system

members

tive

Avers proper tax set-up

enterprise

of

Broadway,

change, effec¬

principal factors accelerating interest in licensing arrangements, manufacturing subsidiaries and foreign corporations.

private

Murphy will become

partner

120

Stock

'

The

L.

general

Co.,
City

ference with private enterprise, here

Company

19

!

WEST MILF0RD, New Jersey

I

INS

U

RAN

(

G

R

P

O

R

20

(80)

The Commercial and Financial Chronicle

Old
Alms
House
in
City Hall Plains, N. Y., has been appointed
Park, 80 depositors banked a total Manager of the bank's Peekskill
,of $2,807. That was-137 yearj ago. office, according to an announce¬
Since
then
uninterrupted
divi¬ ment made by Ralph T. Tyner, Jr.,

News About Banks

dends

CONSOLIDATIONS
NEW

OFFICERS, ETC.

have been paid
The Bank for

BRANCHES

NEW

Bankers

and

REVISED

CAPITALIZATIONS

over

joined The Marine Midland
Company of

Trust

land

Promotion

after

of

the

o

f

Vice-Presidents

P.

been

of

sonal

with

Trust

the

bank's

Department

Division, Banking

Economic

GUARANTY

TRUST

C<|.

North

$

Total

Atlantic Trea-

Cash

Howard F. Vultee

tion and Euro¬

U.

Regional
Organizations (USRO)
is

Vice-President
Trust

York

a

of

an

rine

S.

banks—

in

Paris.

Loans

The

•v;V/.;

Marine

Company of New

THE

Corporation.

I

:

TRUST

T'

Total
MARINE

MIDLAND

OF

NEW

TRUST

YORK

;

June 30,'56

due

from

D. S. Govt, security

7

holdings
I/5ans

&

profits—
♦

*

John

W.

have

Vice-Presidents

in

appointed

the

bond

de¬

partment of the Chase Manhattan
Bank

of

Baker,

New

J.

York,

ber, of the Bond Department's of¬
ficial staff since 1938, is in the

municipal buying and trading $ivision and Mr. Lane, who
joined
the bank in 1921, is in the cor¬
porate division. Also appointed to
the official staff was William W.
Ormerod as an Assistant Treasurer
the

instalment
*

credit

*

the

Grace

York.

Mr.

Bank

Dugan

has

of

been

organiza¬
Assistant to

tional

planning. As
President Ralph Stillman, he will
carry out market studies and re-,
,

search

with

a

view

toward

promoted

from

Cashier to
ident.

elected

an
Assistant'
Assistant Vice-Pres¬
Kurau
was
recently

President

of

Associates

one-year term.

•

a

.

c^sh and due ffon*
banks

.

.

ment.
*

&

*

*

,

"

OF NEW

M

due

,

39,575,406

43,036,745

holdings
discounts

Undivided

46.528,527
62,807,927

banks

*

Arthur S.

Colonial

.1,862,993
*

1,614,367

*

13,060,963

&

discounts

15,340,106

undi¬

and

vided

Kleeman, President of
Company, of New

York City, announced
election of C. F.

the

Vice-President

and

on

June 27

Bailey

as

Comptroller.

John Van Tassell has been
elected

Assistant

Vice-President,
H.

Von

10,467,581

36,243,671
15,329,616

security

profits

2,615,000
*

MANUFACTURERS
NEW

June

Total

resources-

Deposits
Cash

2,937.053,778 2,760,006,353
2,668,821,091 2,495,074,691

—a—

and

from

Mar. 31, '56

due

banks—

790,434,555

656,556,322

U. S. Govt, secu.

rity holdings.. *
profits
*

•

P.

699,785,295
1,065,731,214 1,008,613,830
51,547,986
49,650,979

discts.

&

....

.

721,848,004

MORGAN

*

&

*

CO.,

NEW

INCORPORATED,

YORK

«

June 30/56

and

Ohlsen, Auditor.

All three officers have been

mem-




Mar. 31/56

Total

1 919,042,348

resource*

—

nnrt

banks

r

due from

—

863,191,880

*

Cash

resources

^

save

bank
make

Bank

39,018,729

14.525,284

14.505,284

66,615 696

*

had
in

a

,

their

is

688

June 26.

to

serve

.<.y. v*
FIRST NATIONAL

COMPANY,

.

:

' ;

Honorary

as

board.

new

money

mutual

their

basement

room

in

the

to become President of the Second
National

Bank

of

Wilkes-Barre,

Mr. Knight joined Ohio Citi¬

Pa.

Trust Officer in

as

1947 and

Vice-President

elected

in

1952.

Previously, he was with the
trust department of the Bank of
America and the Howard Savings
Institution of Newark, N. J.
A

University

Rutgers

of

graduate

of 23 selected

one

was

for

publication and distribution by the
*
*■' .■■■
<''?: American * Banking * Association,
BANK AND TRUST
Mr. Knight is a member of the
Relations

Public

Financial

Asso¬

June

six months of 1956

item

to

are

$1.39

.

banks

-

35,615,457

expected to

holdings
Loans

share.

per

An

50.710,213

56.672,787
49,671,310

profits__

3,266,451

4,091,094

,

A;':v
THE

PHILADELPHIA

'V.

•

Total
Cash

Bedell

'

*

Vice-

1,026,348,207

888,355,227

910,011,851

286,603,210

322,565,199

due

banks--

U. S. Govt, secu¬

rity

*

Loans

&

148,170,012

profits

171,861.981

458,457,898
16,938,316

discts.

Undivid.

*

ties,

referred to his desire for
greater free time to devote to his
interests.

Dean

of

the

the

bank

as

a

policies

throughout

Consultant

and

on

procedures

Westchester.

At

the

H.

Kiley,

Trust

Citizens

of

*15,741,140

of

The

Company

has ■> been

the

will continue

Second

of

elected

National

Board

as

Chairman.

Mr.

Kiley becomes the ninth Pres¬
ident of the Second National since
it was founded in 1863.
Prior to
Mr.

Mulligan's elevation

Pres¬

as

ident in September

1955, at which

time

elected

he

was

dent from

1947 until

was

October 1954.

Ad¬

diversified

of

the

Board
po¬

by Wallace M.
who served as Presi¬

Wakefield,

appointed

member

also

filled

was

Mr.

his death

in

Kiley has had
in

career

both

a

bank¬

visory Board of the Peekskill of¬

ing and business circles. He joined
The

of

National

chester.

ness

In

as an

and

Bank

West¬

of

this capacity he will
authority on local busi¬

bank

conditions

Mr.

in

Seymour

the
was

Vice-President and Cashier of the
Westchester County National Bank
the

at

time

it

consolidated

was

with the present group. His asso¬
ciation with the bank began as a

1903. Before that he

employed by the New York
Central RR. and the Seymour Coal
Fuel Co. of Peekskill.

&

*

"

Robert

E.

*

York

Jr.,

As-

Co.

South

the

ident.

S.

In

of

American

and

Department

New

1938,

he

Caribbean

Kiley started with the
of

The

Ohio

Trust Officer in 1945 when he
additional duties

and

He

as

Chairman

Investment

bank.

Michigan

for

Saginaw

at

Na¬

the-

past five years as Assistant VicePresident.
Prior to that he was
view
pany

As
of

for

Irving

the

credit re¬
Com¬

Trust

of New iYork City.

has

result of

a

National
has in¬
creased its capital from $150,000
to $300,000, the enlarged capital
having become effective June 19.
of

ident

of

of

#

*

heretofore Pres¬

Northwestern

the

Bank

of

Chairman

elected

been

has
the

and
George A. Speer, formerly Execu¬
tive
Vice-President,
has
been
elected
President.
Mr. Meyer,
of

board

bank's

directors,

President

elected

in

1935,

for¬

merly was State Bank Examiner
of Missouri, and an examiner for
the Reconstruction Finance Cor¬
poration.

who joined

Speer,

Mr.

1947

in

Bank

Nothwestern

as

Manager of the Consumer Credit
Department, had been Executive
Vice-President since
July, 1955,
and

was

Vice-President of the bank;
From 1939 to 1947 he

a

since

1953.

assistant in the operations

an

department at Bank of St. Louis.
*

As

June

of

tional

Bank

*

s

the

22
of

Second

Ashland,

Ky.

Na¬
re¬

capital of $700,000, in¬
creased from $500,000 as a result
of a stock dividend of $100,000 and
ported

a

the sale of $100,000
*

of

*

new

stock.

*

The Industrial National Bank of

Miami,

Florida,

amount

key

D.,

and Trust Co. of St. Louis, Mo.

of

in

N.

Fargo,

*

of

the

Fargo

John P. Meyer,

Loan¬

Committee
served

as¬

dividend

stock

a

$150,000 " the

Bank

retary in 1944, Vice-President and

Officer

John C. Hay, Pres¬
the

with

Bank

tional

Steel Export

Citizens Trust Company in Toledo
in April 1942.
He was elected
Trust Officer and Assistant Sec¬

ing

been

and Loan¬

Haulman has been as¬

Mr.

sociated

York, .serving four
firm's Central and

Trust

the

White

New

in

Bank

1930.

Mr.

Trust

at

in

the U.

areas.

Bank

Westchester,

City

in

years

sistant Vice-President of National
of

National

went with

sumed

*

Richardson,

First

has

Haulman

L.

ing Officer of the Michigan Bank
of Detroit
according to an an¬

Vice-Presi¬

Officer

Trust

Ohio,

President

June 30 meeting Mr. Seymour
a

-

♦

Bank
of Wilkes-Barre, Pa.
The
Peekskill, N. Y., retired from that announcement was made by James
on June
30, according to an Mulligan, Chairman and Presi¬
announcement by Ralph T. Tyner. dent, following a meeting of the
Jr., Chairman of the Board and board of Second National. When
President.
Mr. Seymour's retire¬ Mr. Kiley assumes his new duties
ment was accepted by the Board in early September, Mr.
Mulligan

of Directors at its
regular monthly
on June 14. Mr. Seymour,
applying to be relieved of his du¬

*

Vice-President

nouncement by

418,121,229

'■

Toledo,

Harry
named

office

meeting

*

senior credit analyst in

holdings

Ohio

Seymour,

1,007,013.086

i'i

and

from

/

Dec. 30, '55
*• "* $
■"

$

resources,

•Deposits

BANK

PA.

June 30, '56

"•

*

NATIONAL

PHILADELPHIA,

the

*

56.824,180

discounts

&

Undivided

V
on the plans to in¬
capital appeared in our !
Thomas
June 14 issue, page 2843.
dent
and

bearing

crease

36,300,523

U. S. Govt, security

The div¬

Roth, who presided at the meeting
stated that earnings for the first

sav¬

money
The

when

Knight succeeds

Kiley who has resigned

«

PATERSON, N. J.

-

shareholders

record on June 26.
Stock cer¬
tificates representing the pavment
will be distributed on
July 16. Mr.

messenger in

Savings, New York's
savings bank, opened for
business on July
3, 1819. On that
a

of

was

for

in

on

payable

first

first

bay,

rate

nouncement, the action took place
a special meeting of the share¬

serve

41,943,004

where

could

$

41,987,688
72,479,774
*

Yorkers
to

the

at

at

community.

49,029,906

*

ings

Mar. 31/56

'

security

Loaps & discounts
Capital surplus

New

CO.

225,229,656 208,580 757
191,076,913 176,390,885

banks 1

chance

&

Mr.

27.

Thomas H.

stated

would

Chairman of the

of

fice

HARRIMAN

due from

U. S. Goyt,

1,133,422"

shares for each 2,437 shares held.
In accordance with a recent an¬

bank

YORK

June

who

the; "Newark News" would
the leadership of Wil¬

under

242,266,222 214,634,381

*

has

bank's

ing at New Brunswick, N. J., Mr.
Knight's:' thesis,
"The Relation¬
ships of Community Chests and
Community Trusts in Community
Planning for Social Welfare" it is

new

sition

*

the

of Ihe

Department,
Willard
I.
Jr., President, announced

Webb,
cm

head

Trust

Ohio,

Toledo/

of

and its Graduate School of Bank¬

The

;

Chairman, the chief executive

BROTHERS,

and

Monmouth

Bank.

-

by

June 30/56
$
Total

With

Bank.

the

banking profession in Peekskill.
Mr. Seymour will now be retained

-?h"S,A dlsc?.™ts 410.659,225 376.876:486
profits^. J6.350.085 15,197.402
BROWN

Currency for

789,910,363 739,831,079

174.244,080

Trust

Vice-Presi¬

Citizens

Ohio

The

named

-y' f. '

.

issued

personal

£ep°sits
Cash and

of

"

-

bank,

newi.stock

will be

Bartow

30, '56

dent

'•

Knight,

L.

2986.

page

*

County

says

AA^V

President and Manager of the Na¬
tional
Bank
of
Westchester
in

COMPANY

correspondent

issue,

30/56 Dec. 31/55. ciation and Chairman of the Trust
of 550,400 shares
whiph is equiva¬ ■$/,■■■•• Vj .'v.' $ •/ "<■' "
$
'v;
Departmental of that organiza¬
lent to 28.23% of
235.146.999 234,365,142
outstanding cap¬ Total resources
217,145,834 216,698,847 tion's
forthcoming
meeting
in
ital stock, according to Arthur T. Deposits
Cash and due from
.A*" "«•'
Dallas.
Roth, President.
The

*

TRUST

and

21

liam B. Lyman, now Chairman of
the Board of the Second National,

Long J Island,

3,607,000

YORK

staff

a

the

of

National

v; '*

National Bank

Square,

;

holdings

Trust

YORK

42,193,679

Govt,

holdings
Loans

Franklin

Robert

;■

was

office

16,244,557

,'

Bank

Keyport Bank¬
ing Co. would become the Keyport

Nw, Y, has declared a combined
regular and special stock dividend

amount

Deposits

65,718,525

profits—

CO., NEW

Mar. 31/56
$71,599,674 $63,017,969
64,586,796
56,250,061

,

148,256,815 147,416,236
46,550,097

/

,Cash and due from

I

172,794,432 166,905,519

V. S. Govt, security

llichard

——

Surplus

Franklin

by

consolidation

56,200,298

1,094,424 '
*

Red

'

/

18,073,762*
*

June

on

June

our

v..•

•

zens

be

*

The

the Newark Trust Co. were noted

Comptroller of the

11,805,040

discounts

-5,015,000

';■

June 30/56
resources——

$

.

&

idend

TRUST

from

banks

it

YORK

Mar. 31, 56

V

.«

Undivided profits—

of

resources

$85,970,000 and Newark Trust
Company had total resources of
$10,978,000. The plans for the tak¬
ing over of the Farmers Bank bj?

Company,

Bank

the changing of the name of the
''vV'>' Second National to the Monmouth

COMPANY

67,103,997

J.

total

had

Delaware

of

of

will be presented to the banks'
stockholders in August. The plans
it is said call for approval by the

of

NEW

Deposits
Cash and

$

Loans

holders held

*

>

deposits. At May 31,
1956, Farmers Bank of the State

been

News"

men are

•15,785,997

5,020,000
iJC

'•

Deposits

J.

by

11,909,245 '<9,365,091

}

made known

were

N.

>

liabilities,

the

assume

bank's

the

purchase

and

including

of

which according to Red Bank ad¬
vices
to
the
Newark
"Evening

Govt, security

49,257,432

profits
V

Total

•

S.

County,

National

Y;

N:

Cash and due from

banks; i.—

consolidation

V;^'v:V County National

TRUST

—:

the

the Keyport Banking Co. of Keyport
announced
merger
plans,

•

26,534,785

undi¬

holdings- u—170,324,005

June 30,'56
-

12,084,444

Westchester

National

Bank,

Vr"

;••

for

would

assets

21, when directors of the Second

of

announced

bank's

COUNTY

46,253,342
discounts

and

vided
¥

S.

the
.

26,920,461

holdings

Surplus

U. S. Govt,
security

GRACE NATIONAL BANK

resources—.

13,296,309

He has been

-

Mar. 31/56

U. S. Govt, security

Assistant

_..

*

BANKING CORP,
'"'V '.V

115,702,145 *117,"779,753
77,922,704
80^626,646

•

i

7,135,265

.'i:'

resources

Loans

'

.■■;

YORK

•

Undivid.

charge of the bank's for-r
section of the credit depart¬
a

*

SCHRODER

Deposits

Loans

staff member since 1941 and
has

Jjoans

Total

York

Stephen

7,426,908

June 30/56
V:

Bank

been in

Total

profits-'

He has been

Cashier of the bank.

•

231,298,558

HENRY

the

with the bank since 1945.
Toth was named an

_

&

New

of

B.

eign

discounts 235,225,062

•

NEW

an

Mr.

Credit

a

97,049,135

ex¬

panding the bank's services." Two
other appointments were also an¬
nounced.
Robert J. Kurau was

a

91,710,782

-•

U.

of

holdings

96,101,165

SCHRODER

National

-

v

150,158,350
secu-

holdings.

*

,

Exchange

was

Secretary. Both

Deposits

from

Govt

Undivided

*

with the Grace organization since
Feb. 1, 1955, engaged in

for

S.

Loans

depart¬

John L. Dugan, Jr., has been
elected Assistant to' the President
New

due

'

ment.

of

&

curity

J.

■

.f -•
"
" June"30/56 Dec; 31/55
Total resources—i— $77,148,751 $65,948,658

451,878,588 393,474,361

——

of

Monmouth

banks

'

Stewart

President, announced on
Mr. de Milhau, a mem¬

June 29.

in

U,

'

»

KINGS

'U.

30/f56 • Mar. 31, '56
$
$
*
508,408,684 '450,328,604

resources—i

banks

and Arthur

been

*

■"June

/

.

Milhau

de

Lane

*

*

Cash

D.

•

*

8,350,397
' -> Deposits

*

it

BROOKLYN,

THE BANK OF NEW YORK

Total

8,746,882

secu-

,

-

v

plans

two

Monday

Vice-President

Corn

York

Division.

191,156,607 136,273,859'

Govt

98,422,007

,

o'clock

Maude, former As¬
sistant Secretary, has been elected

"

holdings— .153,564,639 155,689,616
Loans & discounts 415,486,050
422,396,08$
Undivided
profits— 9,096.920
8^416,871

86.920,962 102,626,070
280,653,425 262,735,708

discounts

Undivided

;S.

>

138,645,608

6

%

J.

members

*

rity

472,566,648 427,026,236

-

and

banks

from

banks

U.

539,226,068 491*496,308

resources-*

Deposits
Cash

-

Mar. 31/56
$

$

Total

;

Edward

799,471,441 758,130,112
——700,047,3 <0 boO,iuo„>/i

due

of the State of Delaware at Dover,

Del.

oitice

Associated with

Bank

a

in

after¬

resources

Deposits
Cash &

CO.

Friday., and

H. Helm, Chairman.
Mr.
Helm also announced the appoint¬
ment
of
Robert Van Buren as

Mar. 31, '56

.j '• *

Peekskill

service also with the National City
Bank of New York.

Harold

CO., NEW YORK

$

National

Mon¬

to

Chemical

,y,

• v

'

THE

3

noons

609,767,062

June 30. '56

\

•

accepted from

through

New

*

Ad¬

banking window
this week at the 3rd

are

Assistant

NEW YORK
:

'v

offices.

the
year.

Newark, Del.

of

Company

Newark

The

special meeting over the June
30 weekend approved a proposal'
under which the Farmers Bank

72nd. St. office, .where

Assistant

609,499,101
1,476,158,145 1,503,646,097
110,797,728
108,213,538

*

its

,'IC

A

* >

of

through Thu~sdav. /

678,302,102

profits-

Vice-President of Ma¬

Midland

day

•**:.

603,184,748

discts.

&

Undiv.

The bank Manager of
"Early Bird" win¬ for the past

Mar, 31,'56

•

se-

holdgs.

and

accounts

due

Govt,

curity

administrative

an

Midland

Mr.

2,914,363,700 2,931,745,776
2,448,829,241 2,426,197,868

__i.—-

and

from

pean

Vultee

resources

Deposits

Organiza¬

3VIr.

Aye.

OF NEW YORK

June 38, '56

-

,

dent, whose

As¬

Hours"

opened

was

Department.- ;*

'

t y

"Extra

is

Per¬

and

Vice-Presi¬
retirement from the

platform 23rd St. station Lexing- Title & Trust Co. in Stamford,
ton-4th
Ave.,, line.t The newest Conn. His banking career includes

.'

Affairs, United
the

be Sec¬

Denvir

Seymour,

million.

two

at

at

of

Stockholders

office was announced on June 15.
Mr. Richardson has been Assistant

dollars,

savers.

,

*

*

♦

Trust

B.

Ohio Bankers Asso¬
instructor for A.I.B.

as

courses.

joining the main office, 4th Ave. since February, 1955, Mr. Richard¬
at 22nd
St., there are modern son was previously Director of
banking windows at the subway Public Relations at the Fidelity

Denvir

Guaranty

.

four

..

Glorieux with the Public Utilities

Office

States Mission
to

v

of New York has

announced. * Mr.

associated

Director

S.

Glorieux to

Trust Company

rank of Minis¬
as

John

ond

serving f o r a
year with the
ter

Robert

and

-

Corpora-

ilon

of

has

billion

a

200,000

$460

are

dows

■■■''

New York and

Marine M i d

<

of

than

has also added

organization for

many years.

third

a

more

sets
bers of the bank's

re¬

Savings

ciation and

Bartow

depositors. Toaay,

Thursday, July 5, 1956

.

posts in the

Chairman of the Board and Pres¬
ident. Mr. Richardson replaced Mr.

$310,000,000

to

modern offices in Manhattan with

for

On July 2 Howard F. Vultee

amounting

.

.

$1,035,000

as

having

reports

of

a

June

been

capital

21,

the

increased

from $900,000 as a result of a stock

dividend

of

\

$135,000.

•

Volume 184

Number 5548

..

The Commercial and Financial Chronicle

.

(81)

Tell the- Advantages of

Secnrity Dealers Urged to "Merchandize"
Bank and Insurance Stocks

Head of "Parade Publications" contends

-4he

Week

earnings continue to im¬ figure at which the term loan was
made.
And then any renewal of

Bank

.

Bank Stocks

—

prove, and it is expected generally

in

accommodation

such

quarter, now closing, will
register an all-time high for oper¬

of

ating results.

rate, even though rates may in the
interim have softened somewhat.

probably

be

the

for

not

Indeed, they would
even better were it
fact

that

term loan is

a

several years

These better

managements are utilizing this pe¬
riod of lush earnings to effect ma¬

to lead to some

jor physical improvements in their

Security

dealers

chandise"
their
wares
to
the
American public like other retail-

Arthur

ers,

H.

"Red"

Motley,

President
Parade
told

members

large portion of its head office,

by banks in recent periods, the net
on
dividends has been a

Association

lesuit

Santa

Barbara,

higher payment than on the stock
prior to the stock dividend.:
;

June

26.

a

project that is affecting earnings
adversely but improving the
bank's plant substantially.
It

this

is

the

writer's

estimate

New

those

above

the

like

1955

Federal

is

Reserve

Arthur

York,

it

not

stringency

a

■i

has

volume

loan accommodation;
already seen this

quires

from
to

year

{ President of
Pacific North¬

.

west

Pipeline

// second Vice-

President

is

A.

kusseil

succeeded

Allen

L.

second

securities

in

in¬

vestment.

Ftimp

for
He

that

Lindley

position

who

by
becomes

"

Lindley had been Assistant Man¬
ager

will

be

recalled

cently was in the market
large loan for tax needs.
'■/

what

And

of

unprecedented

for

a

Probably
the Federal

was

Reserve's five increases in the dis¬

count rate within
continue

Rates

twelve month.

a

at

figure

a

that,

While not high historically, are at

the

about

best

levels

banks' standpoint for

from

a

the

long

very

period. Increases in rates are not
immediately reflected in greater
income for a bank, as the new
higher rates apply only to renew¬
als

loans

of

rates

books

until

ing which
new

accom¬

loans

old

continue

at

on

the

they mature and

Thus there is

renewed.

the

loan

new

the

modation;
bank's

or

a

a

old

that

so

sizable

a

1952, and last April was ap¬
pointed to the additional position
more

than

20

years

with

The

First Boston Corp., Mr. Russell joined MONY in 1942 as an
industrial specialist.
In this ca¬

propor¬

higher rates. This, of course, does
not apply rapidly to certain types
of loans, such as term paper, for
a
term
loan may
be made tor
several, or even more, years. But

In

1948 Mr. Russell became

sistant

Manager of

As-r

securities

He

in-*

advanced

was

Vice-President

to

around,

the

other

original

when he's

same

it

to

over,

^finally

,

security

urged

their

skill

for

Joins First California

four

LOS ANGELES, Calif.—John E.
Lucas is now affiliated with First
California Comoanv, Incorporated,
South Spring Street.
,
>
,

647

.

In

The first

doing

selling.

f

to

is

as

..

establish

ma^r
confidence,
You can t-have

cli-

a

Motley said,

people right in

your

industry pursing their

own

of

Samuel

B.

Franklin

1;,

wauic

w

STOCKS

Members

Stock

American

120 BROADWAY.

NEW

YORK

West

Telephone:

N. Y.

BArclay 7-3500
Bell Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Dept.)

Specialists

in

Bank

Stocks

:




L

to

the

the

a

the

Government

26

*.

"A

End

E.

C.

2.
(London)
Branch:

13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland

Protectorate.

Authorized

Capital
Capital

Paid-Up
Reserve
Vbe

Bank

Fund
conducts every

banking

and

£4,562,500
£2,851,562
£3,104,687
description of

exchange

business.

Trusteeships and Executorships
also

undertaken

while

fessor

as

£ft?,

a

good

of

share

a

that

clear

make

of

back

Mother's

Day

^

done

the

only lurking

great,

the

for

Motley's

"It

surelv

*

even

But

will

to

haDDen

careful

everv

in

10

part

some

as

touched

that

won't

stem

market

from

securities

'todav"

"That's

news

^

widely

as

the

about
a

has

it

little

sure

possible."

as

s?., ar n0 one
^as successfully built one even

#

Two With Laidlaw

foreign manufacturers.
•'

(Special to The Financial Chronicle)

have

stock

the

on

There

looking for

been,
of

does

a

brakes,
white sidewalls, Laidlaw & Co., 80 Federal Street
racji0 and heater and gold thread Both were formerly with Whitethe upholstery.
What's more, hall Securities Corporation,
th
>u gladly pay for it as Ford

a*.

w. H.

/

■

■

■

.

,

OF CONDITION

STATEMENT

At the Close of Business June

29, 1956

$11,909,245.14

Cash and Due from Banks

15,735,997.15

State and

12,452,872.44

Municipal Securities..........

Other Securities

14,461,644.51

;

721,626.20

Stocks
Bonds and

Mortgages

i

2,638,579.08

;...

18,073,761.69

Loans and Discounts

Bank

587,936.45

Building

517,088.50

Other Assets

$77,148,751.16

se¬

has

only

the

mass

LIABILITIES

$ 2,200.000.00

Capital
Surplus

6.000,000.00

Undivided Profits

1,094,423.99

529,168.91

General Reserve

91,034.54

Unearned Discount!....,
Reserves for Taxes and

130,126.64

Expenses...

67,103.997.08

Deposits

$77,148,751.16

~

the

office

progress

KINGS COUNTY

*

multiplication

investment

want

to

of

clubs.

TRUST COMPANY
tstabliihed 1889

invest.

FULTON STREET at the corner

guy

for

just
in

.

power

deep desire to

economic

times.

Americans

Don't

'

"Because Americans want a *' BOSTON, Mass.—Leo Germanli
quality car—with power steering, and David Weisman are now with

lies open

"must."

surface

the

in

"Aim

mosl;

has—his
you repori

man

United States Government Securities

growth
of
the
mutual
clearly how many

Americans

"So

tha

J^an $1>000.

shows

our

on

said"

Motlev

important thing
pocketbook. Be

''For years there's been talk of
rea]/nA<3ieai> +car posting less it

market, was

mass

people

the

"The

pf

i

d consistent,

market.

share

OCfi

of

investment

if

a

The advertising program
of the New York Stock Exchange,

funds

aA

to

one

ASSETS

curities today than you may have

'

over

left

"It's up to the investment in*
dustry to tell America about tha
opportunities and the possibilities!

take shoddy merchandise. They're

a

he

haooen

not

mav

tavefto^k

'merchan-

third

Americans

But

year.

more

"This happened.
investor

the department

is >the

must.'

a

many years,

don't

«xhis

dising

a

responsible,

which

second

more

good

»

than $1,000,000 be*
of careful investments over

cause

Motley said,
forget quality, Motley told his audience.
" And

a

American."

every

Aim

estate

an

.

have

men

the'

''

when

came

of

estate of

^ * birthday prese,nt
shares lit a mutual

'

policing,

mean

may

market

in

Uganda

Fair,'

of $500,000," Motley remarked.

a

power mower

promote

of

•

are

&

Bishopsgate,

high points of tho

'Sabrina

$10,000

shouldn't

in

job in warning the public
away from
phony Canadian and
other stock deals," he said, "and
in doing so have contributed to
the stability of their own business.
"They should go the next step
and

show

Motley said.

thfe

has

confidence

American

average

Confidence

BANK

Colony and

Office:

London,

5,

play

of

a

Administration

;

been" to restore

INDIA, LIMITED
Kenya

should

and

»

The ""bite wants sound values.
public
values,.
FRAMINGHAM,
FRAMINGHAM. Mass. — Par.!
not penny-dreadful u r a n i u m P. Nesbeda has been added to tha
in the future of Amer- shares.
They re willing to pay staff of W. H. Loftus & Co., 1CJ
absolute necessity for for them."
Concord btreet.

11UW

are

Head

Exchange
Exchange

"One

producwith "

hafJ

P

"Nobody wants to listen to "
Pollyanna, but sound, constructive

to

Company, 215 West Seventh St.

^

£££& SSSJS? "*-n»

financial

(Special to The Financial Chronicle)

is.

thjng

men

actual

ment plans,

vast

swirw-wrs a j;— - —•*,

fringe

Samuel Franklin Adds

Bankers

Stock

in

"Why?.

t fe*
.

racketeers

INSURANCE

Members New York

homeowner

the

newspapers

same

the chauffeur father left

"Every

"market

<2nr»PA«efiii
,

with

acumen

good

(Special to The Financial Chronicle)

of

Laird, Bisseli & Meeds

national

40x50 lawn wants

to

men

wartes

and

successful

/"Investment

NATIONAL

and

our

reason

potential cus¬
tomers how ordinary Americana
have already found
security
through careful, consistent invest¬

willing to pay f°r ^uality-

guessed.

BANK

their

every-

the

the

Securities

sharing

from

one

other selling line- -reporting the n^ws."

tivity

buying

He shops

18

outlined

musts"

.

staff

the

in

lot,of storethe furrier
or.
manager,"

too, Motley pointed out.

be

above

with

decides

leading retailers.

he

„But

a new

thinks

same

so

December,

1955.

to

well

pocket

"merchandise"

tion."

since

term loans do mature and have

are

directly

the
soundness of his government and
Manager of securities investment
the developing future of his na¬
in 1953 and he has been a second
vestment.

as

that

his

Eisenhower

LOS ANGELES, Calif.—Richard
J. Franklin has been added to the

replaced, it is done at rates

the

pacity, he greatly expanded the confidence
company's portfolio in industrial ica is an:
loans through the development of selling in any field.
Perhaps the
single greatest contribution of the
directly negotiated loans.
1

up,"

subject to the

in

"H's the

are

But the present rates have now
been in effect for a long enough

period

investment

of treasurer.

lag dur¬
bank's benefit from

tion of total loans is

securities

since

a

rates has to "catch

for

After

rates?

stemmed

makes

every

the redistribution of wealth that's

conven-

securities for his future.

ties investment and treasurer. Mr.

It

told

man

,gi^s «>e thmg

Vice-President for securi¬

15

Outstanding.

that

is

for

50,-

daily

Mid-

for^him

^

a
very
large in¬
in this city in loan volume

that General Electric Company re¬

Motley

a new car,

<>was~

quarter-dates

the March 15 and June

society

our

their

pro-

the'average'man

Mr. Russell
'
formerly >
"Motley

•

crease

around

a

they'll be in
reason
they'll

is

market

said.

buy

modest

a
thought. Finally, after comparing
prices and products and warranties, he makes up his mind.

MONY

become

Corp.

and

have

we

one an

stock

dollars

has resigned

Mills

the

been

the

of

madeUnewsnanm

Doakes,

.

eral

loan

-

refrigerator lunc1,
v.
:
son, President.
or a new set of bedroom
furniture, v "There are just as many sales
He succeeds
he
shops
around," • Motley re- possibilities open to the securities
Stuart F. Silmarked, /
;
5
retailer as there are to the jewelloway, who

winter trade.

plan under which corporation in¬
come
taxes are,
by steps, being
gotten onto a current basis of pay¬
ment.
This, in many cases, re¬

H.

"When

buy

As has been Indicated here sev¬
times, one spur to the current

J

any

The

market..
in

increase

tion.

Louis W.Daw¬

to

to finance crop movements and to

finance fall and

at

the
be

later,

or

Americans

copies

com¬

he

strongest medium there

air-

office.

"Sooner

security,

I B A

by

announced

was

Mary

world,"

newspapers—just

secretary in

a

the

economics
at
';N*VC"'vS Why" not? He buys one. In the
nuhlkhpr °anrl
sameway 'he'U buy good secu- wesiem
university
cueci.
'master salesltl°U f1 J?/*™ salary^ had never been
Is there any reason why you

Sees, for Mutual Life
Philip A. Russell has been pro¬
moted to Vice-President for secu¬
rities
investment
of Mutual
of
New

and

who's

se¬

—to read the news.

the

*

likely to
develop.
Loan volume is practically at an
all-time high, and this in a pe¬
riod when, seasonally, the trend
is in the opposite direction. Fol¬
lowing the holidays, loan .volume
normally turns down until late
summer, when business begins, to
seek credit for two main needs,
permit

Invest-

Bankers

"Americans

Russell, V.-P. for

pe¬

riod, from operations. While, to be
sure, there cannot be said to be
a
plethora of funds to finance
business, it is evident that the

the

ment

J)ut not at

City banks will
approximately- 10%

of

of

air

In

dividends

of stock

that

York
out

average

banks,

larger

cases

want

quarter earnings of the lead¬

ing

the

all

day

Masses Are in the Market

Inc.,

one

of

worker,

sister

doctor's

Publi-

cations,

in

"Every
000,000

of

properties. For example, one large
New York City institution has in
process the air-conditioning of a

most

craft
his

invest¬

"News is the most salable

modity

"That

"Tell it to Joe Doakes, the

Securities

said,

buyer.

in the market for securities.

'mer-

Motley

ment salesmen must tell what
curities can do for the

through

consumer

masses

should

of
of

persistent rumor
dividend in the case

stock

a

processes

earnings are likely
dividend increases;

is

there

and

for

run

at a relatively high

bank

some

likely to

same

wealth has placed the

the form

by bank stock specialists that the
second

go

goods and services as
in the purchase of
securities, and advises security dealers to
take advantage of this by merchandising like other retailers.
In outlining four "market musts"
necessary to achieve success¬
ful selling, Mr. Motley points out that the redistribution of

By ARTHUR B. WALLACE

This

in buying

consumers

Finally,

21

them—all

tell

the

mink-coated

your

them.

story to the

Cadillac
wife.

of

with

the

of COURT SQUARE

the Heart of the Civic Center,
Mtmktr 'rVcrel

Brooklyn

Otptfll Intuitu f Corptrtlloit

22

The Commercial and Financial Chronicle

(82)

.

.

Thursday, July 5, 1956
'
1
'

.

■

,
,

,

in

Reserve Credit
*

■!

+

*

Actually Expanded, Says Spahr
T

i

A ;

> j» 41

»■

•

.

•

„

'i

'

"

#

'l"

it

'

been

its

the

The

Float.

it

for the 12 weeks, April

apparently

sumed,
the

is

commonly

as¬

rates

■:."V

at the Reserve

in

April, the fact
is

t h

and

the

t

a

fv-

of

amount

credit

tended

*

ex¬

has

tt?

has

If

/

but

b

£> %

on

Spahr

National

fective, total Reserve
outstanding

has

for

of

as

drafts

Motte
lace

T.

Cohu

In

partners
.

.

recharged with fresh

of

April

back

It

and

investment

been

underwriter

an

were

the

has

In

writer

of

and

to

authorizes

create

banks

free

uncollected

the

reserves

of

charge

checks

and

otherwise.

or

Stetson

&

Winslow, Cohu, Stetson
Formed in New York

the

corresponding

Formation of the new partner¬
ship of Winslow, Cohu & Stetson
through the merger of three New

York

Co.

April 13, 1956, at all the Reserve
banks

except

where

it

that

of

became

Chicago

effective

oh

April 20.

1

Wall

will

and

120

maintained

Broadway

until

about

Aug. 1 when aU of its business will
be

Larger

Reserves Supplied
Without Cost

of

borrowing

Reserve banks

from

conducted

at

26

will

While there has been much dis¬
cussion

Street

be

Present offices at

the

by member banks

be

42nd

from

Broadway.

headquarters

Branch

maintained

at

offices

11

West

Street, New York, and in
New Jersey; Syracuse,

Newark,

Rochester

and

Utica,

New

York;
to meet the demands of their bor¬ and
Philadelphia, Harrisburg, Car¬
rowers,
a
common
lisle, and Punxsutawney, Pennsyl¬
implication

being that these member banks are vania.
being penalized perhaps unwisely
Partners
by the Reserve banks, there seems firms have
to

be

that
a

little

their
free

volume

clearing
of any

discount
called

the fact

been

of

feeding

cost in

the

For

banks,

form of

through

Float.

to

reserves

members

rate,

the

of

awareness

the latter have

larger

a

the

a

device

period

April 6-June 20, 1956, the
weekly
average of reserves given these
clearing banks through the Float
(reserves
against
uncollected

items)
The

amounted

weekly

obtained

to

$986,700,000.

average

and advances for the

the

reserves

through loans, discounts,

amounted

If

of

to

same

period

$968,300,000.

after

one

brakes

of

put^
his

automobile

the

three

merged

all

of

W.
are

Stetson

&

funds.

and

Beckman, of Cohu & Co., who
retiring. Samual R. Winslow;

Eugene W. Stetson, Jr.,
of

Frederic

the

a

member

Stock

He

to

forming

will

be

his

active

Underwriting Department
slow, Cohu & Stetson.

of

a

firm's

10

floor

office

an

Mr.
dent

of

the

the

Division

Senior

of

the

;

ecutive Vice-President

of the

As¬

on

ark,

N.

its

H. Wallace

Eugene Walton (New¬
J.) are general partners;

The

bank

continues

item.
and

increase,

one

rates,

Total
not

of

total

the

not

is

the

Reserve

only

Reserve

rise

loans,

in

re¬

in

Chas.

New

1953

was

associated

Haven.

W.

Scranton

&

Co.

in

revealing
credit

in¬

discounts,

advances but credit extended
open
market purchases

through

committee of part¬
which will direct operations

of the

newly-formed organization.
Mr.
McKinney, office managar of
Winslow, Douglas & McEvoy, has
become Comptroller in
charge of

the back
in

office; Mr. Clark

will be

Naga¬

.

rather costly par¬

are

worth,

a

25-Yr. Club Formed

Two With Morton Co.

is

only $12,800.

all

terials
low

the

of

reactor

a

trons

Accord¬

construction

neutron

limits the

kwhr.,

per

ma¬

must

have

absorption.

This

metal for tnermal

to

special

aluminum

neu¬

zirconium

alloys.

or

If aluminum is

employed, the steam temperature
and
hence
thermodynamic effi¬
ciency of the turbogenerator will
be

low.

Even

with

zirconium al¬

loy the steam temperature of the
Duquesne plant is around 500 deg.
F at 600

psig for the turbine inlet.

Contrast

this

with

coal-fired plant

the

modern

utilizing steam at

1,100 deg. F and

pressure

psia.

is

is

Even

this

not

of 2,500

the

limit;
example, Philadelphia Electric

planning

325,000

a

kw.

station

to operate with

1,200 deg. F steam
If the neutrons are
in
the
intermediate
range,
i.e.
much higher kinetic
energy, cer¬
at

5,000 psig.

tain

stainless

steels

be

can

ployed with liquid sodium

em¬

the

as

cations.

agent, thus improv¬

An

intermediate

Some

of

you

trouble with

the

radiator

ing.
of

Abbott
Kalman

has

&

Minn.

joined

Co.,

the

Inc.,

Roger

D.

staff

of

Endicott

placed

modern

heat

must

car

leak¬

or

amounting

roughly 50 kw.
nuclear
much

to

radiators

hp.,

In certain

reactors

larger

dissipate

70

with

than

stacked

few

a

as

of the

core

a

not

truck

cube,

a

or

is,

mendous

accordingly,

problem.

The

is often distributed

as

tre¬

a

uranium

sandwich

a

completely encased with zirconium

alloy,

vacuum

down

to

and

thickness

a

hundredths
small

tight,

of

sheets

of

These

stacked

in

with

accurate,
narrow
through which the heat
fluid

circulates.

called

are

spot

The

fission

the

a

hot

of

the

either

by

in¬

outside corrosion

ruptured

stacks

If

one

is

or

transfer

unit

if

or

units

spacing

fuel elements.

develops,

few

a

inch.

an

are

rolled

strain,
products con¬

transfer

or

fluid

with

disastrous results. There

ty

of research

are plen¬
problems here for

the

metallurgical,
mechanical,
ceramic, and chemical engineers.
Both
be

they and the problems will

with

us

for

decades.

In

metallurgy is fundamental to
ery

process

of

nuclear

fact,
ev¬

power,

the

fuel

before
and

fuel

the
is

material,
Actually,
be

must

radiation

elements.

re¬

theoretical

any

cor¬
to

damage

To

conserve

fuel, the complete elements must
be dissolved in acid,
refined, and
reprocessed for return to
actor.

There

tions
of

the

re¬

countless varia¬

are

proposed to reduce the cost

such

extensive

For

processes.

example, the Duquesne plant will
have

a core containing 115 pounds
highly enriched uranium, i.e.,
nearly pure U235,-valued at per¬
haps a million dollars, surrounded
by 12 tons of ordinary uranium in

of

the

form

of
U02
pellets
and
nearly one-half million

valued at
dollars.

In both cases, these costs

for the raw material. Fabri¬
cation and zirconium
cladding are

are

major

a

expensive

item,

making

the total estimated cost of the

tire

en¬

first

charge around $18 mil¬
The refining of the
spent

lion.

fuel will be somewhat different in
the two
ton

and

cases

blanket

processed

perhaps the 12have

not

may

to

be

often.

so

Westinghouse
hopes for 334 days at full power
before the

blanket requires proc¬

essing but states this "should be
increased by a factor of three to
make large-scale nuclear
power
interesting" and "thd factor might
be eight to ten
considering fabri¬
costs."

500

power,

In

334

million

days at full

kwhr

will

be

developed by expenditure of the
$18 pillion core at a cost of 36
mills per kwhr for this item alone.
It therefore becomes evident that

operating life must be greatly in¬
creased and core costs
greatly re¬
duced

before

economical

power

be approached.

can

the

heat dissipated will be many thou¬
sand
times
this
amount.
Heat

of

fuel

limitYis reached because of

cation

had

At full throttle, the radiator

a

taminate
—

in

of your

becoming overheated

car

radioactive

(Special to The Financial Chronicle)

PAUL,

reactor

have

may

sheets

"ST.

however,

cost

ingly,

mills

may

time the fission

neutron-absorbing
properly
distributed.

the

5

at the

tain

the

and

side

With Kalman & Co.

concerns

reactor

stopping the chain reaction. The
burn-up can be increased by in¬
stalling excess reactivity with cer¬

rosion

transfer

(Special to The Financial Chronicle)

i

products develop to the extent of

volts

,

Emanuel, Deetjen

exhausted

pound of electrons passes
bus bar, with
electricity at

this type will be installed
the submarine Seawolf.

charge of the Research Depart¬ Building.
of
government
securities
and ment; Edward L.
Black, of Wins¬
bankers' acceptances (which did
low, Douglas & McEvoy, heads the Southeastern Sees.
Formed
not increase for the
period 1956 Municipal Bond
Department; and
over the
Southeastern Securities Corpo¬
corresponding period of Mr. Kennedy will be active in the
ration has been formed with of¬
1955), certificates purchased di¬ Institutional
Department.
fices at 335 Broadway, New York
rectly from the U. S.
Treasury,
Winslow, Douglas.'& McEvoy City to
industrial
loans
engage
in a
securities
and
advances, was formed by Samuel Winslow
business.




and

of

executive

ners,

Hiroshima

ing thermodynamic efficiency but
introducing many other compli¬

before

One
a

only a small proportion
costly fissile and fertile

radiation from the

gamma

and

ited

an

behavior

credit,

discount
cludes

to

in

heat transfer

Cohu, general and lim¬
DETROIT, Mich. — William R.
partner; Harold W. McEvoy Gracher
"would hardly be justified in
and
Gerald
M.
Rogers
say¬ and John M.
Lummis, Exchange are now with B. C.
ing that he is braking the speed
Morton & Co.,
members
and
limited
partners; Penobscot
of his travel.
So it is in
Building.
respect and
Barclay Douglas, John B.
to Reserve bank credit
which has
Fowler, Jr., Malcolm Goodridge,
been expanding over the
corre¬
Joins Reynolds Staff
Jr., Nathaniel P. Hill, and Philip
sponding periods of the preceding D.
Holden, all limited partners.
(Special to The Financial Chronicle)
year since, the risejn the redis¬
Mr.
Winslow; Mr. Bianchi of
MINNEAPOLIS, Minn.—James
count rates.
Cohu
&
Co.; Mr. Clark of the E. Stewart is now associated with
^
Winslow firm,
Member Bank Loans But Small
and
Eugene W. Reynolds & Co., 629 Second Ave.,
Stetson, Jr., have been named to South.
Credit Fraction
speed

radiation

sociation of Stock

Exchange firms
joining De Coppet &

;

develop¬

operated before refueling, and

115

Order Clerk's
of

economical.

length of time

the

presi¬

Association

be

few

a

radium, about $670,000 per
pound, and must be employed ef¬
ficiently.
For comparison, each

for

Exchange firms, joined the
firm in 1929.
Mr. Carey has been
with De Coppet & Doremus since
1944. Mr. Parry was
formerly Ex¬

basic

necessary before extensive
nuclear power production can be¬

come

One

ural

of Win-

members

currently

two

are

ments

of

according to Lewis,
when cheaply derived from nat¬

own

Stock

A!

Fred

the

ticles

partner.

Pallesen,

Developments Required

Expressed in another

Neutrons

Lyster C. Reighley,
senior partner of the firm.
Mr.
Lefevre, who has been with De
Coppet & Doremus since 1929, will
be

the

There

roughly equivalent

of

son

fore

the other involves the
refining of
the radioactive ash.
In
general

to

Coppet & Doremus

the

metallurgy and solid
physics will be required be¬
major problems can be
satisfactorily solved.

state

as

hospitals

amount

only five pounds.

manner, the gamma
the reactor is

Five New Partners for

and

alloys.

academic

the

time

De

and

intense

in

research

possibly

and

total

metals

of

years

milligrams.

Eu¬

in

Many

24

handling

in

Exchange; Charles
Bianchi, Charles A. Clark, Jr.;
Walter V.
Austin; William J. Banigan; Pearne W. Billings (Syra¬
Emanuel, Deetjen & Co., 120
cuse); Arthur W. Breyer, Jr.; Wil¬ Broadway, New York City, mem¬
liam V.
Couchman, Exchange bers of the New York Stock Ex¬
member; Donald S. Kennedy; Paul change, announce the formation
V. Land; Malcolm S.
of a 25-year Club for
members
McConihe,
Jr.; William C. McKinney; Henry and employees of the firm.
G. W.
Parmele; Charles W. Snow;
A.

is

the

earth

rare

should recall the hospital
precau¬
tions necessary in

W. Stetson, Jr., was a VicePresident of
Chemical
Bank
&

prior

products including special steels,
beryllium, zirconium, and several

of

radioactivity

reactor

saki bombs*

mutual

such

plant,

laboratories

the world

radium

gene

with

Co.,

the

of
as

writings

larger organization, with the
Doremus
exception of Charles P. Stetsonr

new,

and

pressure

of

become partners in the

generator

the

combined

Stock

tional investors.

in

1951 and has been active in under-

and

because

hours
after shutdown. This is equivalent
to 300 tons of
radium, whereas in

Exchange
member
outstanding was greater than it
De Coppet &
Doremus, 63 Wall
was
during the weeks immedi¬ firms, Cohu & Co., Winslow, Street, New York City, odd lot
ately prior to the raising of the Douglas & McEvoy, and Stetson & dealers on the New York
Stock
Co., is announced today.
rates.
Exchange, announce that H. Ward
The new firm,
with member¬
The rise in discount rates at
Reighley,
Edwin
Lefevre,
Jr.,
ships in both the New York and
the Reserve banks was from
Charles J. Pallesen, Jr., Walter L.
IVz American Stock
Exchanges, offers
to 2%% at all the Reserve banks
Carey and Sidney L. Parry have
expanded facilities as under¬
been admitted to general
except those of Minneapolis and
partner¬
writers, participating distributors
San Francisco where the increase
ship effective July 1.
'
and dealers in municipal and
gen¬
Mr.
was
from
2Vz
to
Reighley, who joined De
3%.
The in¬ eral market
issues, and brokerage
creased rates became effective on
Coppet & Doremus in 1946, is one
services to the
public and institu¬

Mw

300 million curies of

airlines,

formed

was

In

earlier

ShippingpoM

remain

co-under¬

major

many

60

a

the

busi¬

prominent

fails

Harnessing the Atom

chemically
general, the

or

radiation damage and corrosion of
fuel elements.

La-

founded

in

years

ness.

fuel.

processed
reactor

.

Henry Wal¬
the
original
with Myron S. Hall.

Cohu

14

page

Problems to Be Overcome

spe¬

Stock

The roots of Cohu & Co.
go
1923
when the
brothers

Trust

bank credit

preceding year. And,
20, 1956, the volume

June

to

special

as

firm.

exceeded

the

after

Com¬

Monetary Policy.

week
since
those
in¬
creased discount rates became ef?

amount

banks

against
Dr. Walter E.

Every

week of the

as

the

organization.

new

in

for member

dent, Economists'
mittee

4-June 20,
of

the

average

the Reserve authorities

Reserve

f

Dr. Wal¬

made

Act

p

Vice-Presi¬

of

contracting the use aircraft
manufacturing and indus¬
credit, a good place to trial
securities, as well as being
begin would be in the elimination active
in the private purchase and
of the Float. Nothing in the Fed¬
sale of a number of
companies.
eral Reserve

/

been

ter E. Spahr,
Executive

brokerage, and
served

floor

from

has

of Reserve

/

increased,

says

advances

interested

by the

not

trie

as

have

the

on

Exchange

aver¬

13 and April 20.

Reserve banks

restricted

1/26 of

well

as

firm

,

institutional

total
Reserve
bank
credit
out¬ partnership
Through several name changes,
standing for those weeks. More¬
acquisitions
and
mergers
with
over, the increased discount rates
other organizations, the
company
did not apply to that full amount
has had a continuous history of
—only to those loans, discounts,
32

raising of

banks

only

was

The

Exchange in stocks of a number of
leading companies. Specialist

age of approximately $968 million
of loans, discounts, and advances

from

discount

weekly

1917.

Continued

partners in the firm will continue
their activities on the floor of the

of the "float,1and the implica¬
credit has not actually expanded.
and

business

a

active-in

partners

cialists

free of charge through the use

Despite the widespread discus¬
sion of "the tightening of credit
by the Reserve banks" arising, so

in

very

business

Contrary to popular belief, rediscount rate rise has failed to

reserve

succeeding

founded

^

tighten credit in any week since last April's penalty rate in¬
crease, according to monetary economist.
Dr. Spahj decries
practice of supplying larger reserve-volume for member banks
tion that

1939

Reprocessing
As

Problems

an

example of optimistic
thinking, Mobley of General Elec¬
tric

states

costs

"possibly

will

throwing
ments

initial

fuel

so

low

that

spent

fuel

ele¬

become
away

will

be

cheaper

than

re¬

processing them." The statement
properly should be reversed. The
fact

is that reprocessing is so ex¬

pensive

that, up to the present
time, it is cheaper to discard the
spent fuel elements, even though
the

of

cost

mendous.

safe

disposal

is

tre¬

However,

reprocessing
becomes essential when a largescale nuclear power
industry is
forthcoming, and will be a pri¬
requisite if breeder reactors

mary
are

developed.

There

two

schools

the

design of
reprocessing.
In one

for

remote
are

'

are

thought

on

control

necessary

gerous

and

a

of

plant

design,

maintenance

because of the dan¬

radioactivity.

No

human

being
once

can
approach the refinery
it has been placed on stream.

from the extraction of
uranium,
thorium, and other metallic ores,

All

to

control, utilizing periscopes, tele-

the fabrication

of

the

finished

operations,

must

be

including repairs,

carried

on

by

remote

■

Volume 184

Number 5548

-

v.

The Commercial and Financial
Chronicle

.

X83)
vision, and mechanical and elec¬

processing.

trical manipulators.

average,

from

the

therefore, with these optimistic
data, some 8,000 tons of uranium
containing 40 tons of radioactive
fission
products must be proc¬

river

water

sign

is

for

The other de¬

direct

maintenance

•with facilities for decontamination

by circulating

chemical

solutions

and solvents after the system has
been drained. Decontamination is

essed

involved process and many
engineers believe it will not prove
practical for large scale operation.

pacity

a

Contrast

very

Let

first

us

consider

the

mated

that

It

has

MTR

an

fuel

radioactive

sufficient

to

heat

melt

would

a

down

the

be

Actually, it is cooled under
for
several
months,
at
which time it
may, be dissolved in
water

acid using a mercury catalyst. In
general the slurry so produced
contains

uranium, plutonium, alu¬

minum,

and

besides

the

various

50

or

impurities
elements

more

comprising the fission products.
The slurry is diluted to a radio¬
activity equivalent to 150 grams
of radium

have

we

liter.

per

Here indeed

dangerous mixture of
very
valuable chemicals.
Howr
ever, this is vastly different from
a

valuable

a

mixture

when

The

chemicals

costs are consid¬
Idaho plant was de¬

signed for direct maintenance and
for small throughput.

is

merely

and

to

fissile

with

Its purpose
the fertile

recover

material

in

other

located

in

valuable

prod¬

ucts. *

dustry, and
accidents

restricted

a

Vs-mile

plant
site

wide.

is

located
of

struction is

60

the

underground,

tion

being

level.

feet

Normal

on

steel

have

may

tours.

the

lowest

at

safer,

elaborate.

very

grounds

level.

fence with

an

officers.

units

,

tanks

age

a

is

stripping

tanks,

final

as

are

enclosed

The

sibly only

Strauss

estimated
have

that

electrical

by 1975.

At 70%

of

lion

load

annually.

is

is

years

this

the

long-life

strontium

as

heat

a

could

rare

metals,

Ru, Rh, and Pd.

as

so

recovered,

material.
have

for
no

per

These

ton of

values

of

little

meaning today
large scale production, since
uses have
been developed for
than1

more

Xenon

is

amounts

minor

quantities.

employed

in

trace

after an
exposure
to
radiation of 4,000 Mwd of heat
per
ton of uranium.
With advancing
Let

us

It

scale

reactors will be designed to
withstand radiation of 10,000 Mwd
heat per ton of uranium. The

Mw

Duquesne

tons

the

of

same

installed

16,000

plant

uranium

so

is

operations

requires

crete

that

deep

on

containers

water.

1975 estimated

ing

might

countered

require

uranium.

are

dis¬

sea

under

being enclosed in steel

capacity
of

if

although small amounts

basis the

tons

doubtful

very

posal of any radioactive material
will
be
permitted when
large-

cer¬

assume

that

12

birds

and

have

some

gene

and

fish

and

surprising
ial

low-level

posal

contrasted

as

mendous
reactor

problem

very

surpris¬

are
already en¬
concerning marine life.

waste

billions

with

with

times the

of

of Columbia

Ton After 13 Years' Storage

(Data from Glueckauf)
British

Fisher

S/Kg

Scientific

38

1100

16

1900

46

Palladium

7

350

54

Xenon

In

addition,

So Americium

___

13m3
29




and

Value

Reagent
Value

$41,800

$266,000

30,400

144,000

2/g

8400/m3

kg 43 Technetium

(a radiation hazard in

$7/g
9/g

British

2,450

14,000

30/1

110,000

390,000

substantial amounts

recycling of Pu) making

of

sea

93 Neptunium, and
disposal questionable.

J. Veditz Co. Formed
Jean

R.

Veditz

is

;

conducting

a

securities business from offices at
545 Fifth Avenue, New York City,
under the
Veditz

firm

of

name

Jean

R.

Co.

Governments

on

of

The

have

should
lous

em¬

.

plant

power

be located

far from popu¬
vital industrial areas,

or

(2)

In

direction

a

opposite

to

Not
V

and

not

that

major watershed,

a

On

least

tions,

restricted regula¬

much

so

that

the

group
called the Reactor Pre¬

been

lowed

Committee.
in

have

The

been

not

such

a

may

to

only

a

be

violated.

exist,

if

Wmle

possible

atomic

the

catastrophe

such that the liabilities could

The

Federal

amounts

tightening

exceeding

$2

$10

to

permit

me

with

the

agree

as

a

ma¬

jority, that eventually the many
baffling problems will be solved
and this nation and the world will
an

economical nuclear power

We already have

industry,

a

a

nu¬

we

can

claim

a

domestic

nuclear power industry with a net
over-all production of economical

electrical power.

When that time
arrives, the impact will be favor¬
able to
even
as

the

costly

national economy and
competing industry, such

our

to

'■

fossil

fuels.

research

and

-?v

Hand

a

*

after three weeks

Banks,

in which

no

holiday, both of which usually have
the

upon

The

market.

money

a money-

withdrawal

of

large money centers for statement dates, as well
the increase in money in circulation for the July 4th
holiday,

as

tends

to

funds

draw

reserve

conditions

offset

unless

of

out

the

of these

position

the

by

Banks.-

commercial

This

reduces
money

operation of the Central
\!
'
•' •
•
•
:

easing

'

-

banks.

which tightens

institutions,
'•

reported action of the Federal Reserve Banks in buyingopen market operations will be the

Treasury bills indicates that
that

course

one

be

the

be

way

followed

in

another.

This

or

authorities

monetary
in

will

case

forms

of

the

operation

money

gives

the

flexibility than would'

of

be

to

were

influence

to

type

greater degree

a

if other

the discount rate

order

adopted such

as

changes

requirements.

and reserve

Restraint Policy "Mothballed"?

The

June

in

15th
to

seem

that

reports

market

order

to

income

indicate

further

tax

that

loan

the

aid
it

prevent

has

from

demand

restraint

been

tightening
had

•*

to the money
again, after the

given

taken

been

policy of the

powers

of,
that be

care

has been given a back seat temporarily, if not entirely abandoned
for awhile.
factors

there

in

is

The demand for funds will be
the

future

considerable

course

interest

of

one

of the determining

rates

disagreement evident

and,

now

as

even

though

to which way

this trend will be, it appears as though those looking for a decline
in the demand for loanable funds

are

Action
The

more

followers.

market would not be surprised if the discount
Minneapolis and San Francisco Federal Reserve Banks

money

rate of the
were

gaining

Discount Rates Awaited

on

to be reduced

from 3%

to

2%%, to bring them in line with
This would be looked upon as

the ten other banks in the system.
a

cisco would be looked

change in policy.

upon by others as much more than a minor
It is reported it would indicate to them that

the money easing tendencies of the powers that be would con¬
tinue, and might even be followed by further positive action such
as

a

lowering of the discount rate of all of the Federal Reserve

Banks

as

well

as

changes later in

requirements.

Price Level Watched

Bond

.

reserve

a
a

nuclear-propelled Navy ship in¬
dustry. But it will be many years
before

short-term

the

nu¬

industry,
industry, and

reactor

the

funds,

minor change in policy as far as some money market
specialists are concerned. On the other hand, a decrease in the
discount rate of the Central Banks of Minneapolis and San Fran¬

Conclusion

conclusion,
to

Reserve

effect

funds from

only

scientist

of

help was given to the money market, were reportedly again
buyers of Treasury bills in order to ease matters over the months
end, semi-annual statement date, of the commercial banks, and

eas¬

million is under consideration.

In

investment

is

this reason, government insurance
in

the

Reserve Lends

fol¬

heavy steel shell. The
properly wonder why

recommendations

Treas¬

recom¬

single authorized or
proposed location, being circum¬
vented by the principle of con¬
tainment, i.e., by enclosing the
layman

for

quiet market for these securities.

a

reactor in

so

.

market

so

The near-term

good

a

.

tract of land providing
one
acre
for every kw.

very

fill

appearing on the economic horizon.
./
The middle term Government obligations continue to gain
followers, since they also offer good defensive mediums for the
placing of funds. As far as the most distant Issues are concerned,
/the 3s of 1955 continues to be the leading obligation in erratner

a

«re

and

are

The

(4)
at

on

back

light, which means
professional affair, especially as far

demand, with a «■ larger amount of
the purchase of these issues than had been
long ago. Even though there are many other

available

the

prevailing winds,
(3)

to

volume

on

for

tiie Fourth of July

nuclear

and

AEC,

leading scien¬
tists, medical men, and engineers
of the country, has
published the
following
recommendations
for
(1)

continues

market

area

is pretty much of a
longer end of the list is concerned.

ury obligations
funds available

of the

some

instrumentation

Rhodium

it

bond

rather limited

expected

which

membership

braces

nuclear

Ruthenium

Reporter

Government

a

the

,as

upon

of the

clear

per

engaging in

business from offices
261 Broadway, New York City.

at

Governments continue to have attraction because of uncertainties

the

equipment

45

of

radioactivity

Safeguard Committee

clear

44

that

tre¬

ance
actuaries, regarding reactor
safety, especially from the stand¬
point of the general public. The

handled, the reactors are cooled
by a single pass of water taken

Ky

the

disposal

on by the press, Con¬
gressional committees, and insur¬

million

Element

within

dis¬

ing carried

ingly, develop 40
electricity
before

(Cs and Sr separated)

\

Plan Inc. is

securities

a

By JOHN T. CHIPPENDALE, JR.

A great deal of discussion is be¬

industry.

II

'

Moore

&

channels

have

re¬

Co. and First of

poration.

?

The

Reactor Safety

example, at Hanford, where
disposal is most carefully

Valuable Fission Products

Sachs

Our

River water.

waste

TABLE

&

Co.

triv¬

a

billions

could, accord¬
Mwd

Ex¬

formerly with Wm. C. Roney
Michigan Cor¬

was

Goldman, Sachs & Co.

hu¬

waste

of

amount of uranium

complete

for

consequences of

of

case

now

in

Stock

This incident is illustrative of the

con¬

dropped

Detroit

Form Moore Plan

eventually
deleterious effects from
chromosome mutation.

way,

phenomena

For

This

and

Some

are

the

Frederick H. Alliston. Mr. Alliston

citizen

Jack H. Miller Joins

may

ily exceed the assets of any cor¬
poration legally responsible. For

Sea Disposal Hazard

of

60

the

food, but it

in

signs for producing blue to green
color.

Every

and public welfare.

life, Goldman,

marine

thyratrons, highspeed, probability of a serious accident
is almost zero, the magnitude of
photographic
lamps,
and
neon

reprocessing must be

increase.

basis.

(Special to The Financial

and

man

mendations

necessary

tainly

harm

ventive

certain

of

scientists state that this degree of
contamination at present does not

has

of

bers

formidable

Chronicle)
by diatoms,
biologic
growth.
COLUMBUS, Ohio —Jack H.
and fauna are eaten Miller has become associated with

normal, and the fish up to
1,000-times
normal.
Qualified

be

good

source

considering

encourage this enterprise
the sake of national security

ma¬

times

These

fission

the

prod¬

technology, this relation will

to

reactor sites:

plants,

efficient

t

presently accepted fig¬

that

types

new

answer

DETROIT, Mich.—Don W. Miller
& Co., Penobscot
Building, mem¬

prob¬

capacity.

products

ucts, we have a total annual pro¬
duction of 80 million grams or 80
metric tons of radioactive mate¬
ure

can

Table II illustrates the value of

tril¬

a

grams of radioactive fission

The

industry for

polymerization, but only

such

Mw

factor, this
This

by the chemical

tllishn As Partner

pay

through

Co., members
which in turn are consumed
by of the Neyv York Stock Exchange,
birds and fish.
Mr. Milled was formerly Columbus
The birds
are
showing radioactivity up to 5,000- manager for Baxter, Williams &

extraction

20 million Mwd per
year.
one
Mwd
results in four

rial.

and

will

public

and

flora

remaining material could be
for 13 years, to allow the
decay
of
short-life
radioactive
products, and then refined for the

as

Since

industry in promoting cataly¬

reactions

course

kwhr

same

be utilized by the petrol¬

can

with

returning

procedure

by small insects

stored

power

80,000

capacity will produce half

These

the

pos¬

recently
country will

nuclear

capacity

later years.
It is
that such radioactiv¬

extraction,

has

this

installed

an

in

amount

for 50 .years, and the radioactive
cesium might be useful for gamma
radiation.
After such

of uranium annually.

Admiral

be made of

can

radium-equivalent an¬
by 1975, and many times

separated

few hundred pounds

a

use

of

radioactive

vaults.

concrete

the

Doa W. Miller Afaits

wel¬

difficulty of the technology, is change, have announced the ad¬
mission to general partnership of
being conducted on a sound and

absorbed

are

very

now, if recoverable.
dream
of the nuclear

chemical

The

plant described handles

are

handling the residue after solvent
extraction in a plant such as al¬
ready
described.
With
similar

radioactive heat,

by

terials

There is Glueckauf's scheme for

col¬

waste.

which

question.

an

of which,are refriger¬

some

of

of future research

underground stor¬

ated to offset the

expensive,

before

The

plankton,

even

and rubber

The fissionable material is
recovered
and
the
rest
of
the
run to

more

a

water

river.

diluted

.,

some

tons

of

umns.

slurry is

plant is

closes the subject. We still
the problem of disposition

is

tic

plant

There

and

de¬

power

though,

have

eum

operating
gallery
and
control
panels, and various solvent ex¬
traction

permanent

and utilization of the fission
prod¬

ity

high
encircling roadway

for

patrol

by

each

conceivable

Tne

The

enclosed

are

absolutely prevented
through highways

our

The recovery of the fissionable
material so far discussed by no

this

re¬

safety precautions and ventilation
are

only hope that
occur

finally

able, yet the trace radioactive

Perhaps smaller refineries

nually

ground

when

by personnel" is through
labyrinth
corridors
and
doors
at

as

many

solution.

40

quired

located

be

can

chemists that

con¬

one sec¬

below

access

we can

such

—otherwise

It

3/s-mile long by

Much

areas,

daily in
transportation of rolls of sheet

the

valuable

small

might be
but trans¬

lead-shielding
safety will create
lead-trucking in¬

considerable

uranium

the

development

rates, the work,
complexity and

the

ably represents the most careful
treatment in the world of one of
the lowest level wastes conceiv¬

The

for

necessary
a

with

such

for

and

river

While

radium.

whatever

While

for

future

our

should

the

8,000 tons ap¬
this mixture
contains the equivalent of 40 tons
of

trace impuri¬
that has had no

for

essential

decay,

insignificant,

ucts,

"

This

saie

problem.

pear

of

water,

fission products, becomes
high¬
radioactive.
It is impounded

ly

analysis of both.

centers

is

in huge reservoirs for radioactive

ac¬

portation of the ash from the pow¬
er plants to such a center
will be
a

Because

the

means

the

slurry
attempt to refine for the

no

numerous

refining

located

refining

ered.

of

Large

ii> the broad field of nuclear en¬
the next several decades

ergy over

ity

ties,

;

an

by

fare.

contact

.therefore evident that

should involve

ele¬

ment.

is

the

purified

cities.

ca¬

plant

above.

companying, the development of a
nuclear power industry will be
the establishment of a
costly in¬
dustry for
refining radioactive
ash, and all economic discussion

radioactivity of 200 million curies,
Such

small

River.

first

taxation and slightly higher util¬

or

element

equivalent to 200 tons of radium.

the

processing

is

equivalent to the total water sup¬
ply of several large American

Refining Radioactive Ash
It

esti¬

removal from the reactor has

on

with

the

Columbia

chemical coagulation, settling, and
filtration.
The amount used is

annually.

'

Idaho

been

this

of

,

Processing Plant of the
AEC designed to refine the MTR
elements.

the

refabriicated

described

Chemical
fuel

and

On

»

Continued

development

The Government bond

market has

been watching

the course
there
seems to be some disagreement as to whether or not the prices of
these securities have discounted the changes which might come
about with a further easing in money conditions.
Quotations of
many of
these issues have reached levels where it seems as
though there will have to be a more positive course of action in
aiding the money markets if they are to break through and make
progress on the upside.
As far as the downside is concerned,
there is no great amount of anxiety around now, because it seems
as though the feeling is that money conditions will not get tight
of

the

money

with

market

in the foreseeable future.

i

much

interest,

because

again

.

a

less, and-there are many other vital claims upon them.

I As

We See It
reasonable conclusions can be reached
atmosphere.
v

wonder how or if
an

,

And, Congress, Too

i

fuljy as much with Congress as with
the services. It has long been evident that the "opposition ?
in Congress is determined to make all the political capital
it can from the current situation. In point of fact there
are instances where one is almost driven to the conclusion
that there is more interest in defeating and discrediting
the Administration than in reaching rational decisions.
It is for this reason that Capitol Hill is so rewarding a
haven for minority groups in the Pentagon. We suppose
it would be unrealistic to expect any other line of be¬
havior in this, an election year, but, however that'may be;
it seems to us to be a much too serious a situation for
But the fault is

acre

quite unwarranted to say that any consideration of
such matters as these is "political" in its nature. On the
contrary, it is statesmanship at its best—provided, of
course, that the consideration given them is frank and
intelligent. There are a good many who would scorn to
think of such things when foreign aid is under debate,
or when the farmers' demands are
being considered. Still
more apply such a philosophy to defense
matters. The evi¬
dent tendency to do so now in this election year when
reaching a decision as to the number of billions to be
expended on defense is one of the more disheartening
aspects of the current situation.
; /

been

traversed

for

$50

to

commands

acre.

$100
$5,000

ah
tp

Many industries

attracted

to

by

New

the

areia

the

York
studies

have shown similar results.
In many cases, it probably can
shown
that
investment
in

be

building

construction

from

building

the

of

resulting
modern

a

expressway will in a few years

equal the total investment in the

highway itself.

,'f

Summary

-r-'-'v':.-:,;

1956 still may bp

summary,

$60

billion

construction

year,

with

an upsurge in nonresidential
construction
offsetting the de¬

cline

in; bomebuilding.
The- fast upturn of private in¬
dustrial construction may increase

Mid-Yeai Construction Outlook

r.

v

a total of expenditures for Tiighways at the on tjje basis of the capital investpresent
time.
;Assuming
that ^ent plans of business announced
comfortable mar- these expenditures will increase tmsvmonth, which indicate^that
gin
this
year,
and
accelerate gradually in the future, total Plant and equipment expenditures
thereafter under, the impetus of highway construction volume wUl be substantially higher than
the new long-range, 13-year pro- over the 13-year "period could be in
„
a*
"
gram which is in the offing. High- in excess of $109* billion, repreA" records of contract awards
way and-street construction now senting an increase of approxie2 m
1 first quarter
is proceeding at a 13% increase mately 60% over^He current rate, of 195b» and awards continue at
over the 1955
rate.
v
At the present-time, highway a record-breaking pace, substanSewer
and
water
facilities, construction is starting to acceler- hating the outlook for a steady
which exceeded $1 billion for the ate undPr the increased Federal- upturn
in construction put-mfirst time last year, may see a aid program authorized in 1954. P^ace during the latter half of
15% increase in 1956.
In the first quarter of 1956 the
?,rJ?.ar'
'
•
we

find

now

reached

$4.5 billion in 1955, should exceed
$5

such antics to be tolerated.

an

Thruway, and California

a

:y;,

Thursday, July 5,1956

Sold

have

In

from page 3

-

now

$10,000

-

Continued

.

.

merly

It is

Continued from first page

in such

JThe Commercial and Financial Chronicle

m

1

(84)*

billion

by

a

.

In

some

most disquieting of all is the persistent

ways

individual or any official who raises
question of cost or of the economic consequences of
enormous outlays for defense. One well publicized mem*
ber of the Democratic party sometime ago expressed- a
effort to discredit any

any

fear that freedom in the world would die of

a

balanced

budget. The contempt for sanity in managing the financial
affairs of the country implied in this quip is all too prev¬
alent among all too many of the p o 1 i t i c i a n s of the
country today. When related to defense expenditures any
thought of a balanced budget or of prudence ill spending
the funds of the taxpayer becomes with them a "political
consideration." Thus when military men do not get what
they want, and they think the reason is to be found in
the cost of it, they say that "political considerations" were
allowed to interfere.
y
^ ^ '

A

This contempt for

financial good sense is a dangeftms
be found, and should not be per"
gain sustenance in debate about defense expen¬

initted to

may

ditures. The Eisenhower Administration with all it faults

has at least

fit to raise

questions about the cost of
preparedness and to call attention to the- ||ct that
a natioh could bleed
itself weak by devoting too much of
its energy and resources to piling up armaments which in
any event are likely to become obsolete very quickly.
It has repeatedly called attention to the fact that for a
nation to be really strong and prepared to defend itself to
the limit, it must give consideration not only to its materiel
and the like, but also to the state of its
economy, and its
ability to produce many things abundantly in times of
seen

modem

emergency.
Non-New Dealish
Such

ideas

these

as

of

are,

course,

quite

of

out

harmony with the central philosophy of the New Deal and
the Fair Deal, which believe in
spending and spending
and spending. They are enthusiastic about
taxing and
taxing and taxing only when it is the rich and the wellto-do who

are

creasing

than
nosed

but

^

the Administration and the

Deal

«

i

school

is

in

"advanced" in the New

more

part a clash between two ap¬
proaches to national policy in general. And, of course, if
headway is made in promoting defense expenditures
without regard for financial considerations, the defenses
some

of sound public financial management will have been
weakened.
The situation

existing in the world today, whatever

its cause,, and whosoever the
fault, is such to make it ob¬

vious that
or

no

we

cannot

proceed

in the past with little
armament and quite
unprepared to wage effective
as

A distressingly
large portion of our resources and
energies must be devoted to making certain that we shall

war.

not become a victim of another Pearl

This

means

research, to

of

Harbor

or

worse.

course

huge sums of money devoted to
development, the/armament produc¬

weapon

tion and all the rest. This much of

course

is not denied

or

controverted

by any of the parties to current conflicts.
But obviously there must be some limit to such
outlays.
We simply cannot expand
expenditures until all men of
all opinions in the services are satisfied.

at

ttie

slower

a

anticipated

await

some

as

ofThe

outcome

F^deral-Sd
oiners

pro-

to

we

real question, and for
can

reach

a

sane

our

funds

part

conclusion

careful consideration of
our

should

or

our

on

That is the

^

ties,

producers

-

have

scheduled

_

level of

between^! billion and

$? billion a year "by i960. Em- ^ars;

■category is for about $2.6 billion.

du^g . the ^. se»^.

ployment in highway building at realize tne potential ot construe-

i„.rto

ind,.ltrf.i
that time shoulffTeacb between tl0n demanded by a dynamic
a435,000 and 450,000 men as a economy, and plan adequately.
monthly average,-"with upwards
Construction is_ the nation s
vfrnnoht t^ mfnttiJn resource of 630,000 employed during the largest single production activibrought to completion, romnflf
k
summer
months
when ty> and the present growth rate of
„

pea., 8 u.mm_e r

development is lagging, and militarv

yntictriiMinn

^

ciiihtiv

slightly.

•

*

;

montns

wnen ^ pnnrinrr£
ari
Qnniial
Jbe economy indicates an annual

weather is most favorable. This
is in .addition to the approxi-

innroacintf

?

exceedmg $75 billion by

.
mately equal number required in -1965, when the gross
Federal industrial work is nearly mines forests factories transnor- product is expected to
60% behind 1955 - twice th^^.ye«r.
(

expected decline—with the prospect that less than $500 million

the

needed

of

and

eauinment

work

will

be

done

this

offices

year.

to

produce

and deliver
materials
supplies
to

the

'site

It

is

national
surpass

j

Normally accounting for some
15 % of the gross national product>

construction

results

in

the

Military construction i$ proceed- anticipated that the high rate of
ing at a rate which will bring the technological advances that .have
total to
near
$1.5 billion, and fceen continually made in highconservation and. development is
way construction techniques and
behind last years rate which saw
equipment, ther^increasing the
$600 million m such work as
output pe? cor^ttnetion worker,
dams, levees, flood control and WiiJhe maintairibdYover the next

.employment, directly and indir
rectly, of more than 15% of total

s^meTmonths5 onsuc^ proiectl decade, thus .keeping labor reUpper Colorado gge
"6*
* 3 ^ bei"g eVe°

-

~

_

■

Project

and

works could

planned

military

increase the Federal

«

*
It

'

^

goes, without, saying
a long-rar^^rogram

sucb
itself,

construction prospects.

to

more

of operation,

The Highway Program

The
tremendous, long-range
highway .-construction
program
Which has passed both Houses of
Congress in varying forms pro-:
vides for nearly $51
billion in

Federal and state funds combined

that

lends

^

employment in this business of

building for nearly every facet
of community growth.
:
«».

A

/

ace*

-Winners At A5E

5 & 20 Golf Tourney'

Harold J, Brown, Brown, Klernam & Co., New York City, won
.

the golf tournament of the mem--

bers Pf the American Stock Ex-i

"■■efficient methods change's

Five

and

Twenty

Club

fullq^ utilization of

with a score of 83. Low gross was
equipment, and gfyes * a .# clearer won by, Joseph F. Reilly, Laidlaw
picture to mantifsc|urers of The & Co., with a score of 80.
requirements fq^^i^ir materials.
•
•>
•
All possible step^ Will be taken JrOimi Lolumblft oCCS. OiJrlflU
to minimize the rrianpower imMIAMI Fla.—Columbia Securipact in both th^^tual construe- ^ies c0
}nc Q{ Florida has been
tion and in the* engineering per- forme(i with offices at 3898 Bis-:
sonnel required
.prepare plans Cayne Boulevard,
and specificatioris.y In addition to
the training, of; men on the job, .
Q# Kailfmaiin Opens
^

>

to

and improve what is
inadequate, arid in some
cases, seriously outmoded highr
way
system. This, replaces the
present program which, if conenlarge

now

an

tinued

at

the

apprentice trairiing programs
probably will be-stepped up for
legislation, equipment operators.

rate

authorized

.current

in

Federal-aid
provide $22.4 billion of
highways in the. 13-year period.
would

steps
Bureau

being taken

are

of

Public

Roads

by the
and

a

T

;

,

.

.

.

Jrving G.Kau^ann is

conducts
a securities^siness from ofat
Broadway, New York

y'

While the funds will be spread,
over a 13- to 15-year period, the

number of state highway depart- ■
i
17* t_j_
A.-,,- ,
ments to fully utilize photogram- • nowara J. r letas v^pens
size of the program makes it the metry, electronic computers and
Howard J. Fields is engaging in
largest peacetime public works other modern
methods to cut a securities business from offices
undertaking
e ver
authorized, down engineering Time Required at 55 Liberty Street, New York
While most of us here tqday are before projects reach the bidding City, under the firm name of H. J;
more
directly
concerned t with, stage.,
(
■
Fields & Co.
the outlook
for
the
remaining.
The econornic'im'pact of modern '
.
months of 1956, it seems pertihighway construction is not gen- Forms Seymour Klipper Co,
nent to

project

features

of

some

this

which will have

pact

of the main

giant
a

program

beneficial im-

the national

eraUy realized. Sn.addition to the
FATR
TAWN. N
J— Sevmour
improvement of Transportation ithas formed
Sevmour
self, it has been -found that the Klinper & Co with offices
4-14

and

construction

of

the comfort of the public at large,

immediately

attracts

on

economy

$51
is

new

,an

expressway

industries,

A1J^n

cu^ities

S

ctreet

to

encase

in

a

se-

business.

communities, and other con-

struction to the area, increases
Joins Straus, Blosser
independent land values, and increases tax
(Special to The Financial Chronicle)
expenditures of the states, coun- revenues.
For example, studies
KANSAS CITY, Mo. —Jack K.
ties and municipalities for road show that more than $100 million
and
street
construction.
This of plants have been started or Halper
is "now affiliated witn
amounts
to
roughly two thirds finished
along
an
expressway Straus, Blosser & McDowell, 21

billion

stop?

-

?teel and cement. supply, parti*
caused by distribution diffieulr

over

Federal-aid

and

above

program

.

the

.

we

cannot

the

see

how

one

subject without very
position. Neither
yet bur energies are limit-

financial

nor our resources nor




we

,

Studies IndicateTthat total high- large expanapn programs, that
nnn«ririirtiriri" will vrparh
a
Will gradually increase the supconstruction, will, reacn a
?. durinc the next several

problems ansmg from racwl
tegration.
The outlook in this

It should be noted that the

But, How Much?

,

authorized nav? some neaaacnes with a tight

agencies

Tiod ot )955.

&oive

^

But where must

,

d^artaents and

contracts for $7OT>ilUon, an increase of 39% over the same pe-

schoolleeisla-

pause

facility

toll

rate

aSaI

an^otoerS iSuse^tosolve

tion
ikhv ana

to be taxed.

Indeed, spending for armament
has often seemed to be
regarded as a virtue in and of
itself. Thus it may be seen that, this
controversy between

,

,

highway

state

School construction also is in-

xu0

thing, wherever it

,

.

the $5

billion total level of annual

near

Boston, and land that for-

West Tenth Street,

Volume 184

Number 5548

:

...

The Commercial dfid Financial Chronicle

(85)

>laced at about the

$6.8 mil¬

same

lion

resented

as for last year in spite of the
5% increase in coach fares of last

fast

May 1.

$2.43

Thus

the

dividend

Reading

on

'one

as

situations

arid

the

of

its

glamour

stocks

not

are

aihong those most frequently fea¬
tured. This applies particularly to
the common, and as a result of a
certain amount of investor indif¬

ability to control

in the

expenses

face

of the difficult combination
short haul and
high terminal
costs.
With an average haul of
100.49 miles
(per ton) in
of

a

and

less

in

previous

Reading

years,

regularly

1955,
the

about 50%

at

tally, the road's Port Richmond
Terminal at Philadelphia which

price where the

is attractive.
of

34

this

yield alone

At the current price

stock produces

of its traffic.

to

ministration

It is

When

we

year's

bility

of

other

reasons.

to

share
earnings—less than 6 times—is for
limited

One is the

rather

growth

aspects
of
the
The other is related to

Reading.
this, since
of

per

how

it

raises the
the

soon

question

similar

stated

credit

same,

that

will

this

be

about

the

drop-off

having
been
being by the
additional
credit,
estimated
at
about 17 cents per share, arising
from
the
previously mentioned
large freight car orders that "got
under the wire" before the expi¬
a

pro¬

ration

rep¬

privilege.

the

of

fast

amortization

from

15

page

change,- is. said tq be the largest
privately owned terminal in the

in

effect,

to Pennsylvania resi¬
dents. The $2 per share dividend
ori this stock is equivalent to about
$2.14 to most of the residents
.

of

that

state

who

subject

are

to

world.

/To meet the challenge of rising
costs, the Reading has spent $150
million on additions and better¬

v

only the 4-mill property tax and
to $2.28 to holders of
Philadelphia

ments

fers to

arid

modernization
since
the end of World War II.
Among
other things the road is

"Buyer." This, of course, to avoid
any implication of an agency.

Pittsburgh domicile,

for

in¬

stance, where the tax is 8 mills.
The
equivalent yields in these
cases

6.3%

are

6.7%

and

respec¬

tively..

v

"While

Reading

{,7

common may

be

and

tually, 100%
1955, 99.9%

dieselized,
of

its

vir¬

now

and -in

freight

was

moved

under diesel power.
The
small indicated-use of steam
pow¬
er was due to bad weather and an

lacking in appeal for those whose increase in business
occurring to¬

interest is in the direction of

"Seller"

The

correspondent

our

and

refers

to

as

us

were

the

back to health and

to handle

office

the sale

of

more

among our railroads

tained

the

of

one

which main*

stock

common

elite

dividends

throughout the "Big Depression."
A

second

feature

of

the

Read¬

freight

train-hour,

been. 51%
end

between

of .last year

gain

the

alone

gain

1946

has

and

the

while last year's
8.5%.
This,of

was

course, applies to freight traffic,
but this represented almost 90%

ing situation has been the road's
ability to do a somewhat above- ,of revenues in 1955. Reflected in
average job among the roads iden¬ cost ratios, the road's
transporta¬
tified

with

anthracite

origination
in maintaining its traffic
against
the steady -decline in hard coal

tion ratio of 38.9% and total
oper¬
ating ratio of 79.1% for 1955 com¬

shipment, and particularly in

corresponding

cent

re¬

most

pares

favorably
ratios

with

the

39%

and

of

Taking advantage of 78.6% for 1950 despite
the vitality of its
territory, which stantial increase in costs
years.

the road describes as "one of the
fastest growing in the

had

Reading

the

sub¬

that have,

control.

nation," the
aggressively

,has
gone i
after diversification of its business

through

the

location

of

in¬

new

dustries

on its lines.
This has re¬
sulted in the addition of about
$11
million
of annual
revenue
over

the past
million

10

10 years and,

the

revenues

What
looked

decline

this

the

the

Also,

over¬

territorial
and

-

1948.

The

that

held its

own

the

20%

equal

to trend of traffic

oyer the past decade as measured
by the index of ton-mileage based
the

on

1947-49

average

as

100

whereas the
corresponding indices
for the
Central Eastern Region
and

32%

for

Class I gained 3.3%
respectively.

On the other

has made
son

hand, the Reading

much better compari¬
trend of revenues, this

(1947-1949 average as 100)
haying increased from 86 in 1946
101

last

year

as

sponding increases
for

and

the

Central

from

85

to

against

Eastern
for

What has happened to
gree is that the

corre¬

from 86 to

112

a

107

District

Class

I.

large de¬

Reading has been

able to

substitute the higher rate
diversified traffic for anthracite

coal.

The third

expense

however,

oars,

and

is

planning

As against the 1955 outlay of $11
million for Additions and Better¬

the Reading situation is the road's




that

is

disgruntled ex-home owner

a

not

too

likely to take carq of
the property in which he is living.
Certainly, it is a prospect that
lenders

institutional

most

cannot

contemplate with equanimity.

know,

you

the

Federal

As
Housing

Administration will not hand
debentures

to

over

institutional

an

lender until the expiration of

redemption period.

handles

Administration

differently.

this
The Veterans

They will

matters

pay

off and

take their chances on the property

thereafter.
In
some
states, Texas, for example,
the mortgage may be foreclosed
being

redeemed

riod after foreclosure.

freight cars ordered last year to
take advantage of fast amortiza¬

this

tion

that ended

The

result

with

1955

that

was

orders.

the

3,450

in

the

improvement will go for

construction

of

the

Lebanon

Valley "wye" which will permit
by-passing the Reading yard by
using also the Blandon Low Grade
completed last year. The freight
efficiency factor of gross ton-miles
per
freight train hour and, the
transportation ratio depend
on
other things besides
dieselization,
and

this

It

the

Reading
point.
is

does

miss

estimated

officially

not

that

earnings will be a trifle
less than those of 1955 despite the
gain

of

first

five

almost

$500,000

months.

It

officially estimated that
should
as

amount

to

in

has

the
been

1956

$5.64

per

against $5.78 earned

per

net

share
share

last

year.

due

to

rate

increase, only about 80%

the

Part^gf the decline is
facfrthat the freight
of

There is

from

some

passenger*

$6.5 mil¬
wage

The

operations

in¬
loss

is

here

in

we would be under
the necessity of filling out an ap¬

plication, filing it and paying a
nominal
fee.
Thereafter, there
be

an

computed

on

our

would

annual

license fee,
complicated
formula. We mutual savings banks
have no capital stock and the fee
is
computed by comparing the
of

a

very

assets

within

the

As

we

examine the background

tually, however, they have worked
out to
the
disadvantage of the

they have forced
them to pay more for mortgage
funds than they would otherwise
have to pay.
The cost may be
buried in the price of the property
which
they buy, but it's ines¬
capably ther^. As to whether or
buyers because

not there
will ever be, a reeal
necessity for these laws, that is a
question which I leave up to your
good judgment.
I

remember

early

30's

tions,
cases

nity
out

all

when
of

too vividly the

we

home

reasons

had literally
owners

could

not

who

live

their contractual obliga¬
and
in almost all
those

where

we

had the opportu¬

to sit down
with

the

and

home

talk

things

owners,

we

told

us

the

formula

attor^

our

the

us

that

making

of

in their

mortgage

loans in this jurisdiction might be
more trouble and expense than it
would be

Tennessee

attorney,

no

bit dazed and

to

opinion

paid

were

am

that

in the last paragraph of their

neys

letter

loans

recall

a

worth, taking into con¬
the
relatively
high
•

foreclosure costs and the one-year

Law

of

pressed

market.

real

estate

in

de¬

a

Certainly, that's
mutual
savings
banks, supervised by banking au¬
thorities, who in their anxiety to
preserve our liquidity, insist upon
our
disposing of property at the
very first opportunity even though
the

the

market

think

some

made

to'

dictates

otherwise.

I

arrangements could be
afford

the

farmer

a

of protection with mora¬

measure

torium laws

without, at the same
bringing the urban home

time,

within

owner

laws.

the

of those

scope

Several states have recently

faced

up
to the problems con¬
fronting the out-of-state mortgage

lender

I

all

realize

have

and

enacted

legisla¬

tion which clearly defines the sta¬
tus of the foreign investor. A for¬

eign investor statute

enacted

was

banks

in

I

that

nelled
The

into

of

which

bank

my

drafted

was

attorneys helped draft it.
makes

clear

that

out-of-state

within

so

savings

was

and

our

This bill

long

as

bank

an

stays

reasonable

limits, it will
be subject to local taxation or
other penalties.

not
any

Last

month

in

Atlanta,

Earl

vital factor
New

very

into

institu-j

our

the mortgage market.

of

rate

growth of our mort¬
portfolio has far exceeded
the rate of growth in deposits. In
gage

the money obtained
deposits, all of the funds

to

obtained

from

mortgage

bill

will

and

are

belief that prosperity is here to
stay, are spending their money
just as fast as they can get it. Yes,
even before they get it, as witness
the phenomenal rise in instalment
debt. Our deposit gain has never¬
theless been steady, if unspectacu¬
lar, and all of it has been chan¬

proached
A

savings

mortgage

tions has not kept pace with the
flow of previous years. It appears
that our citizens,
serene in the

ties

leaders,

a

flowing

in Tennessee got together and ap¬

one.

of

of

in the national lending field.

addition

institutional

we

continue to be

money

from any

various

role

future

•

and

bankers

the

the

think

Some

mortgage

have hardly

lending?

estate.

the

have wandered

and

Lending Role

about

bankers

of

lot

Future

How

in Tennessee in 1953, which in my
opinion, is'a model law. Prior to
its passage, our attorneys would
not permit us to buy
mortgage
loans secured upon Tennessee real
commercial

that I

the

over

with

case

have

the

been

sale

of securi*

diverted

market.

We

to

are

the

mort¬

gage-minded, and I think we will
Many of the New
savings banks which are
more
heavily invested in mort¬
gages afe under the necessity of
paying 3% interest to their depos¬
itors and this can be accomplished
these days only by a substantial
continue to be.

York

investment in mortgages. Remem¬

eastern

ber too, that for the $17 xk billion
portfolio, we have a runoff of
approximately 10% to reinvest. It

would

look

afford

source

alone,

is

each year.

Schwulst in addressing the South¬

Mortgage Conference pro¬
posed that mortgage bankers pre¬
pare a model law which would
protection to out-of-state
lending institutions. I think this
excellent idea.

an

As many of you know, so-called
state laws are approved

uniform

from time to time by the National
Conference Commissioners on Uni¬

been

overwhelming bulk of urban home

they

do

I

me

volume

form

find,
a phrase from ex-Presi¬
Hoover, that they were an
experiment noble in purpose.
Usually, they were enacted to af¬
ford immunity to the farmer who
was faced with a crop failure. Ac¬
dent

these

nurse

surplus. -1

our

left

touched upon the subject on which
I was scheduled to comment.

to borrow

to

million.

estate,

concluded to

we

business

period of redemption.

of these foreclosure laws, we

up

$5.1

the

quoted by national mort¬
gage
brokers when they
offer
packages of mortgages for sale.

annual basis whereas increased

placed at

in

spread

valid

of

those

redemption jurisdictions.
This is often reflected in the price

thousands

annually including

marketable

one-year

for

creases

do

possi¬

real

I don't think any institutional
mortgage lender in his right mind
is out to acquire any considerable

very

more

than

merchandise

be effective this year,
placed at only $5.3 million on
are

no

much

are

is

costs

a

Might I add
that mortgages in states such as

which will

an

nominal
redemption pe¬

few weeks at

a

cost.

Part of the $5.7 million balance
for road

lion

noteworthy feature of

time within the ensuing
year. It's true the right is seldom
exercised, but most of these re¬
demption laws provide that the
mortgagor can remain in posses¬
sion of the property during this
period; and I think you will agree
any

ments, the road's plans call for
over $32.5 million this
year. More
than $26 million
of this is for

this year's

index

to

by

further large expenditures to pro¬
mote further gains in
efficiency.

and

a

to

as

mean

period.

The Reading is not resting on its

latter

remains, how¬
Reading has only

as

we

this

year.

fact

the

This is what

in

60%.

than (2.38 times)
revenues
of 1955,

anthracite
whereas they were almost
less in 1946 and were about
ever,

borne

bitu¬

from

increased
from

be

freight cars ordered by the Read¬
ing was the - largest freight car
order ever placed by it in
any one

more

the

in

its

10-year period,

has

revenues

138%

were

be

with anthracite is

revenue

coal

period.

same

Reading

same

road's

minous

anthracite

tend
to
because of the
of

The

almost

in

during the

lcng association
in

1955.

may

location
that

of this, $1

in

achievement

year

-

equals

added

was

to

to

sideration
Model

gether in the final two weeks of life insurance.
last year. To meet such
emergen¬ /
In addition to the handicaps I
cies, the roadhas retained 40
have just referred, to, there are the
distinction.
This
is
its
steam
locomotives as a standby
51-year
further complications of foreclo¬
record
of
consecutive
dividend Rafter
having retired 10 - during sure laws and
periods of redemppayment
at
varying
rates, but 1955. This may not be necessary,
vtion after foreclosure has taken
never less than $1 per share, This
however, since the road has just place.r There are Isome . states
was paid
in 1933 and then after ordered
two
2400
hp.
"Train where it takes much more than a
increases to $1.50 and $2 during Masters" for
delivery in October. year to foreclose a mortgage and
the next five years, was put back
Largely as the result of dieselhaving completed foreclosure, the
to: $1 per share again for the whole ization the
road's efficiency fac¬
title which you have acquired is
1939-47
period.
The present $2 tors have shown notable
improve¬ flawed, in that an ex-obligor has
rate has been maintained since ment.
Summed up in the overall
the right to redeem the property
1948.
As
all
this
implies, the measure of /gross ton-miles per
was

the

mortgages

Seattle

Washington,

but

off long since.

insurance

local

to

the

companies need
not tread so softly.
Most of the
big ones have qualified to do
business in every state and have a

^t

able

as

dynamic situations, this stock has,
nevertheless, one special mark- of

Reading

qualify

into

purchasing

found that if

we

to

Role of Savings Banks in
Fntuie Mortgage Lending

;

..

looked

upon

state boundaries and relating this

handles water-borne traffic inter¬

of almost 6% to anyone and more,

Continued

secured

value

substantial

portion of net income that is

Inciden¬

yield

a

the Federal Housing Ad¬
at
a
1%
penalty.

gage to

1955

averted for the time

relative

problems. In the event of default,
they can simply assign the mort¬

in

sells

terminates

ference, it is permitted to remain
a

amounted

share

common

least.

The Reading Company is not re¬

from

"filled

40% of reported net.

per

over

officially

time

some

Reading Company

be

can

credit

stock

By GERALD D. McKEEVER

The
garded

deferment

tax

This

looks eminently safe for
to come, to say the
The low price at which this

common
=

or

by

amortization

out."

25

State
in

Laws.

This

existence

body has

for

over

65

The Commissioners derive

years.

their

authority from appointment
by the Governors in their respec¬
tive states.
They meet annually
and they have to their credit such
laws

as

the Uniform Stock Trans¬

fer

Law, Uniform Trust Receipts
Law and the Uniform Negotiable
Instruments Act. They have gone
far to improve and simplify inter¬
state

I

commerce.

think

that if you gentlemen
Mortgage Bankers Associa¬
tion can take any steps which will
permit the unrestricted flow of

of the

funds

mortgage

dictions,
your

into

will

be

your

well

juris¬
worth

me

get down to cases.

example,

have

no

We,

mortgage

investments in the State of Wash¬

ington,

in

the

thriving City
savings
banks
have
mortgage
holdings
here and in Oregon, but I find
that for the most part, they have
confined them to 608s, where they
need never face up to foreclosure
of

nor

Seattle.

Some

mutual

we

billion

two

that

from

this

will have close

dollars

to

reinvest

We may not, of course,
sight of the fact that we are
a banking institution and that we
must maintain a degree of liquid¬
ity. We are not committed to the
making of mortgage loans in the
same
degree as the federal sav¬
ings and loan associations. These
lenders are organized for the ex¬
lose

press purpose

of making mortgage

Our problem is somewhat
different.
The dollar that comes
loans.

in

our

front door will find its way

either into

a

bond portfolio or into

the mortgage department,

depend¬
which division puts up
the best talk; and by this, I mean
the highest yield consistent with
safety. For the past 10 years, the
mortgage market has had all the
best of it, and I believe that we
can still keep open water between
ing

upon

and

us

our

curities

competition in the se¬

even though the
high-grade bonds has
spectacular rise in recent

market,

yield

while.

Let
for

it

to

then

in

shown

a

months.
To summarize, therefore,
will
continue
to
be

we

seekers

vestments for
ture

I think
active

after prime mortgage

and

curtailed

if
to

in¬

the foreseeable fu¬

new

any

construction

is

marked degree,

mortgage funds should be ample
to meet all reasonable demands.

/

Financial Chronicle

The Commercial and

.

.

.

Thursday, July 5, 1955

(36)

26

-

•.

r»

continued from first p g

crucjai

are

Economic Woxld lo Come and

:

Consequences for America
'

■

power" was the only raw

"brain

boundaries

economic drama involves more
nomic ^trends for
than new gadgets and material
advance
It is reasonable to as- 1933 with 18.4 youngsters per 1,- things.
It gives people more!
sume
that it would likewise be 000 of population, but it rose to choices on what to do with their
desirable to try
to obtain some a new high of over 26 per thou- lives. It is a peaceful revolution
Uwll

°

*

_

idea of the future

the

tools available.

statistical

best

with

ahead

projections

by

American

and

to

start

even

looking ahead

is a ne¬

increase

the

In

State,

of

Department
well-being of

the

with

peo¬

our

closely related to that of
the people of other countries, it is
necessary not only to make short-run decisions, but also at the same
time to project economic policies
for the longer range. In spite of
ple

so

difficulties

the

of economic

with
to

all

is obvious.
of housing constrQo

forecasting,

must

we

do

earnestness

best

our

possible

economic

developments over the world. The
projections
admittedly
will
be
faulty but they may outline at
least in
bold relief the
general

million

12

of

the

during

Second, although there
limits

such

to

as

man¬

materials,

there

and

is

foreseeable

no

technology.

In

primary

our

without
other

it

sense,1-'this-is
resource,
because
usefulness

the

man

concerned, there has been
this

of

amount

kind

great

a

economic

of

analysis here and throughout the
world
In

many

nomic

American

the

of

economy.

not only our eco¬

ways,

but the economic
future of many other countries is
directly involved with our own.
future,

Our economic

development has

been remarkable, greater than any

people perhaps has a right to ex¬
pect. Consider our Gross National
Product, that is, the grand total of
the goods and services produced
annually in the United States.

In

1940, our Gross National Product
was
$206 billion — in terms of
present day prices.

In 1948 it

nearly

National

Today,

our

$300 billion.

Gross

was

reached

imately

$400

United

can

States

be

to

be

to

economy

ing

of

expect

we

Economic

$500

Future

the future?

What

the output of our
in 1965? Accord¬

it

billion.

gressional Joint Committee

Con¬

on

Economic Report has said that
Gross National Product could
to

$540

output

billion

the
our

in-

per

fabulous increase

hour by con¬

stantly devising new and better
machinery and methods to aug¬
effort.

human

ment

three

than

worker in

times
40

a

grandparents
hours.

hour week

did
just

And,

into the longer

much

as

per
our

as

working
70
to take a look

future—at the rate

have been increasing our pro¬

we

to

1975

book

same

American

It

our

around

1955,

they

Gross

National

Product

in

1960

World

developments
II—atomic

War

pf

energy

is

Technology
continue

ample.

productivity —per
machine.

be

can

to

to

authors

that

explained

the "medium pro¬

was

jection" of their

survey, and they
that the 1960 fig¬
"might be as low as $350 bil¬
or
as
high" as $490 billion,"

went

and

to

on

say

added

that

"under wartime

conditions it could rise
■»"

emergency
+

y $ 00 billion.

this

not

but

confuse

to

I mention

the

subject,

in order to illustrate the haz¬

of

ards

trends projecting and to
against the sin of compla¬
As stated so well in the

guard
cency.

general prosperity cannot

ance of

be taken for granted.

In

high-

a

man,

acre,

per

per

very

recession

of

distant."

United

Actually,

about

in

the

upon

20

Years

most

that

im-

be

can

the

United

the

for

economy

turns

of

predictions

portant
made

States
one

next

States

20

years

percentage point,

one

along*

such

ances

(as

as

we

go

Incidentally, all these projections
in terms of today's prices —
that is, they represent entirely ac-

are

tual

increases

ices

in

goods and

serv-

mot mere increases in mone-

tary values.
f

Some people may well wonder
how, with our economy now operating at near capacity, it will be

Consider

what

If United States pro-

means.

an

average

an-

nual rate of 2%, production per
man-hour will double in 35 years,
increase to four times- in 70 years
and eight times in 105 years. But
if

American

productivity

rises at

an annual rate of 3%, production
Per man-hour will double in less

than 24 years, increase four times
in 47 years and eight times in 71

3 6 billion

of

we

cannot

assume

dis-

economic progress will
pose of all our problems.

2000 A.D. That is less
than the figure I have just mentioned for 1975. When the Woy-

conclude

we

may

future

economic

about

the

in

the world?

in

„

rest

What will be hap¬

Asia,

in

Europe,

^ _,

of this additional percentage point

cknw norin/i
short "period r*f time.
of

are

a

a

moment to examine

t

„+

Let
one

us
or

take
two

Sak0/%ucheantingh tOday tWWeh
such
achievement pos-

make

an

are

ctatfoorina

«

staggering indeed,

one

tain

wi^hec

that

spiritual

h*

social

™,,ia

,

in

...

South

we

ing still? Obviously they will not.
They too are on the move. In fact,

produced

housing
and
refrigerators and
radio sets and improved health
ing now that previous estimates and education, the implications of
have been on the low side.
these
prospective developments
of humanity

ments

there

good

are

in

instant,
for think-

an

reasons

^

and"
would

invention

Now let
we

but

consider

us

of

tion

the

are

adequate data

on

current

labor input, the absence
clear-cut historical trends for

countries
and

.

,

,

.

First, look at what, is happento the American population,
big surprise of the postwar dec-

*rig
A




keep

enlightenment

pace

progress

that

with

and

our

* grow more

scientific

our

economic

individualism
pronounced

growth,
would

as our ma-

however, before it begins to ap-

proach the level of living to
which we are accustomed, we
should note that even if the world
average output on a per capita
produc- basis does reach $604 in 1975, it

and

many

and

numerous

prob-

accounting

will still be far below the present
Per capita figure ln the United
States and Canada. This now is
OV€jr

available data we^
comparable statistics. Even in more
the
face
of
these
uncertainties, some
in

lems

reducing

can obtain some idea
general economic shape of
the world 20 years hence.

of

To

To mention
complicating
hampered by in-

ground.

few

a

production,
on much

find ourselves

certain

less

encouraging.

show how far the world has to go,

the

may
even

$2,000, and by 1975 it ™ay
^e above $3,000. Furtherthe per capita output nv
underdeveloped coua^
ramam
i0Wj
a I
neaily doub es l
e
tha

nex* 20 years-

the total output of
Thus we see ahead of us a difgoods and services in the world—t ferent world; a world in which
the
sum
of all
Gross
National mechanization is no longer the
In

1950,

Products—or,
World

Gross

we

may

Product

—

say,
was

the
per-

haps in the neighborhood of $868
billion.
the

At

present time it is prob-

exclusive possession of a few
countries; a world in which the
production of goods and services,
will far outstrip anything in our

previous experience,

ably well beyond $1 trillion, or
What will this world economic
account for a slightiy one thousand billions, and is ex- growth
mean
to
the
United
smaller share relatively of the panding rapidly.
States?
world's nroduction in the 1960's
In
1960, it could be about $1
The impact of our own economic
and 1970's than it does now.
trillion 300 billion.
.'
growth on the individual Amerimay

even

Everywhere

DGODiGS

are

governments

anxious

to

and

are anxious to acmeve
improvement. Some of
them are inexperienced and face
peoples

formidable
are

obstacles,

determined to

There

is

urgency

a

but

overcome

of

sense

In

achieve

they
them.

"

.

extremely

are

World Production Growth

it is possible that the United
States, with all its coming growth,

economic
kq

rate three times that of population growth.
If this is correct, it will mean

their massive that the per capita output of the
World
Population and world will rise significantly. AcProduction, in 1953, they thought cording to the projections it will
Notestein's
projection
was
too rise more than 75% in that 25high, and revised it downward a year period, that is, from about
little.
But trend-projecting is a $341 per capita in 1950 to about
dynamic, fast-changing business, $604 per capita in 1975.
and
barring a nuclear conflict
In terms of human well-being,
that would wipe out whole seg- in terms of food and clothing and
tinskys

-

ES? in° such SUCh ec0;?»,,c
heights in o.eahCh
comparatively

more

volume,

however, we

What

of

production may exrapidly than in the
past is that the industrial nations
may well be more successful than,
hitherto in maintaining a high
and stable level of total demand./
If so, this should make the drag."
of
any
recessions
on
average
rates of growth much less severe
than in previous periods,
A second significant fact about
our projections is that world output is expected to rise a great
deal faster than world population.
According to the projections,
population will rise about 50%
between 1950 and 1975.
And in
the same period, production may
be expected to rise 150%, or at a
world

why

to

The World's Economic Future

the

million

345

be

in

An even more important reason

for the year

technical

that

so

that

America, in Africa, while
advance
to
new
economic
achievements? Will they be stand-

3%.

of

example,

projected

work,

ductivity rises at

basis,

same

ulation

now.

earlier projecFrank W.
a world pop-

many

For

tions.

Notestein

of

ally

this

higher than

is

it

these figures are

that

public
and
private
investment,
and the shortening of hours of

and

average

than

time

realize

factors—we

pening

on

I

million, and that even
growth will be greater

temporary inbalagriculture today),
the increased savings needed for
as

in

this added percentage point actu-

services

that

at

Here,

Moreover, there will be serious

problems of adjustment
The

be

ever

can

almost 20 years from
and have predicted an outpouring of $670 billion of goods
—

quite possible that the human
will number as many as 3

rate

nor

threat

million

35

and by

year,

the rate of

the

than

more

1960 it should be
approaching 2 billion 900 million,
Five years later, in 1965, it may
be
up ; to
3 billion 100 million,
And ten years after that, in 1975,
a

billion 600

ex¬

increase

population is growing at

that looks like a

rather low estimate, but in a foot¬
note

some

States

absoflute
expected to grow
lead

our

larger.

pand

of

rate

Probably the most spectacular ex- level threat of like ours, neither
economy inflation
the
"the

by 1965, or
if computed

now,

World

the

it is

about $414 billion (at

$414 billion

in

are

—though
terms can

how

precisely

there

people

1954 prices)._ In the light of what
we know today,

present
higher, or

countries.

ductivity over the past 100 years,
recent "Economic Report of the
by the year 2050 we should be President":
producing as much in one sevenhour day as we do now in a 40- '
"To meet the challenge of proshour
week.
Actually, we have perity, we must above all things
only just begun to exploit the avoid complacency. The continutechnolosical

know

not

many

the

that

suggested

may

faster rate than the United

the

million

200

is

do

we

Going to
beginning of

the

press

that

likely

seems

half billion,

a

about 2 billion 700 million, though

marvels

technological

about two and

figure

the

describes

even increase their production between now and 1975 at a

In

population.

consider

First,

for
example,
of Latin America,

areas,

India and parts

J950, the population of the world
was

at which I have-hinted.

lion

technology has always been
dynamic. Today we produce more

Productivity, which has been inalmost $500 billion
creasing at an average of 2% a
4'at
factor
cost"
which
means, year for nearly a century, and at
roughly, after deducting taxes and 3% since 1950, will probably consubsidies.
Others have projected
tinue to increase over the next
present day trends even further— quarter
century
by an
annual
crease

developed

per¬

of

footnotes, for ^ shall not bore you
with them here,

World Population Growth

make it possible.

democratization

This

ure

^

Our

should

The

our

Over the past century we

pected

projection,

one

above

has

billion.

what

And

Product

annual rate of approx-

an

of

would be severely

resources

a

is

of

exhaustion

in

States

lavish

of footnotes. For example, even
if we knew exactly what foreign
production was going to be, the
problems of translating it into
figures, comparable for all countries, would still be staggering,
But you will have to imagine the

same

material

the

command
service to

a

have achieved

United

the

be

may

resources

basic

power

economic trends.
as

could
sonal

The

limited.

far

important

few
were able to enjoy a high stand¬
ard of living, because they alone

new

ca-

all
Let me pick out two significant
continents permits the passage of facts about these projections:
electronic impulses.
It is prob.• •'_*
'
abl,e that no other country is
Rate of Growth
heading for a $600 billion econFirst, world output may very
omy
in the next 20 years, but viell expand in the next 20 years
they are headed for more eco- faster than it has in the past.
nomic goods than they have now.
One reason for thinking that
Economic growth has gone far- this may occur relates to the unthest in America, but it is not derdeveloped countries.
The deexclusively an American affair, termined efforts of many of those
Long-term projections suggest the countries to speed up their ecopossibility that world population nomic
growth seem
likely to
and world production will experi- achieve
a
considerable measure
ence
unprecedented rates of of success, in spite of vast and
growth
during
the
next
two formidable difficulties which condecades.
^ front them. Some of the under¬

the favored

only

is

copter rotor; and the ether of

benefiei«ries of this great material
progress.
In every past age and

1950.

magnitude of future problems and
So

t^prt^s SE

InTn

civilization

dec-

current

pervasive

more

a

the

ade. By 1960 it is estimated that ;
is the inevitable
annual construction expenditures ^ay or me
ian-un„i
on housing may be more than $33 °ut<:ome of •a p:rogre;ssive technolbillion, or 22% greater than in ogy applied to production.

uncertainties

and

anticipate

houses

A.

-

material standard of

™ass °fth^ people, it is

prospects are for demand and con¬
struction

Qur

and

SiSSnf th?«

of

tion, which has played so impor¬
tant a part in our prosperity, the

Policies

Economic

growth

the field

in

Department of State Projects

-n

yance

the
For example,

the

on

economy

life.

economic

million.

215

1

T\

_

,

]iving

the neighborhood of
The impact of this

should

cessity in business, industry and
in almost every segment of our

*

.1

-n

J. Frederic Dewhurst
in
their book:

those of us now
passing middle age have within our
lifetime experienced a greater ad-

occurred

notwithstanding all the risks

T

....

Associates,

"In many ways

ing their heads for decades.
author's
apparent belief is
economists cannot predict.
How¬
involved,

A.

_

society.

lows:

after. It was this interpretation
which underlay some of the comments about a mature oiv stagnaThe tion economy. Now it appears that
that our population in 1965 can be

ever,

»

_

anci

a few years,
decline there-

within

static

come

_

in

Not many

1,000.

per

contiheht

of

air

it was predicted that the "America's Needs and Resources:
population would be- a New Survey," express it as fol-

years ago

pub¬
lished in which the author states
that
the
history
of
economic
thought
constitutes "a
gigantic
blind
alley, against the end of
which economists have been bash-

»

Since then the rate

1947.

been 25

has

4-Y~k

1 H/1'7

^

sand in

has recently been

book

A

1

J

_

world economy

as

every

put in modern packages; the
every
continent behaves
to a jet plane or a heli-

and

American

of the unfolding of the

i■

of

pable of supporting factorymade
houses; the food of every continent is capable of being frozen

anticipated eco- ade was the sharp growth in popuseveral years in lation. The birth rate was low in

oroiections of the

crossing international
never before.
The

is

portant,

im-

less

economically

be

would

earth

m

m

m

ten for a learned publication, I
should have to supply a long list

without which all other resources

In fact, a

questions.

recent "speculative projection"

i

jm

These

terial standards advanced.

-

economic

i

reach

could

.

impressive statistic

about

$1

trillion 600

*

billion

can in te™1? of his physical environment and his daily man^r
of living probably needs no elabo¬
ration.

And
186

for

All

of

1975

the

over

almost

these

1953.

times

Consequences for
But there

are

America

additional conse-

terms quences for America which will
of the result from the phenomenal ecoIf this were writ- nomic
growth of the world in

figures
purchasing

dollar in

trillion,

$2

three
world production.

billion,

the 1950

everywhere in the world.

Technology, which, as I have in¬
dicated, is a primary resource,

this

1965

are

in

power

Volume 184

general,

Number 5548

Let

mention

me

.

.

The Commercial and Financial Chronicle

.

some

of

(87)

old ones. It will not neces¬ Ralph W. Davis & Co.; Gerald V,
sarily simplify our foreign rela¬ Hollins, Jr., Harris, Upham & Co.;
tions—especially with the under¬ George Knott; John M* Marston,
developed countries. While their Ball, Burge & Kraus, (Cleveland);
rate of growth might exceed that Joseph
B.
Reynolds,
Benj.
D.

27

eases

those consequences:r

IVlq^e Americans will be travel¬

Smith, Barney & Go. Admits Three Partners
The investment banking firm of
Smith, Barney & Co., 14 Wall
Street, New York City, members of the New York Stock
Exchange,
have announced that George L.
Nye, Ernest B. Schwarzenbach and
Caleb Stone have been admitted to general
partnership in the firm.

ing abroad on business or pleas¬
ure, and traveling faster and more
Bartlett &' Co.
(Cincinnati); G.
cheaply as the years go by. Other of the United States, the absolute
Edward
Slezak, The Milwaukee
peoples, in turn, will visit us in gap between us may widen, This
larger numbers and get to know ^situation will call for all the dip¬ Company (Milwaukee); Irving C.
lomatic skill and public under¬ Stein; Jerome F. Tegeler, Dempus better. Already it is easier and
& Co.,
(St. Louis);
that
we
can
muster. sey-Tegeler
quicker to circle the earth and standing
Warner M. Washburn; James G.
pay
a
leisurely visit to every Rightly or wrongly, peoples abroad
Peterson, J. M. Dain & Company,
think
in
terms
of
country, than it was for our an¬ frequently
cestors to cross our own continent,
"catching up" with Western stand¬ (Minneapolis).
Advisors to the Board of Gov¬
r World
economic
growth will ards of living—or at least of nar¬
ernors of the Midwest Stock Ex¬
also bring Americans into closer
rowing the gap that has so long
between
them
touch
withother -countries existed
and
the change for the ensuing year are:
-

through
tions..

improved

'West.

communica¬

5

V

-

.

be

Thus they are not

pleased

other economi¬ -which

and

Americans

-

-

with

this

and the space

out

to

in

be*

extremely difficult, and the problem of maintaining political and
social stability under these cir¬

about what the earth

more

cover

turn

may"

'

cally developing- peoples will dis¬

around it are real¬

John W. Evers, President Com¬
monwealth Edison Company; Wil¬

likely to

situation

a

cumstances will

It takes considerable eco¬
nomic advancement, for example,

require great un¬
derstanding. While economic prog¬

to
place a satellite filled with
measuring instruments in the sky.
One very important accompani¬
ment to world economic develop-

liam V.

Kahler, President Illinois
Telephone Co.; Edward P.
Rubin, Security Supervisors and
Bell

,

Selected American

art

Harrison,

Shares; H. Stu¬
Vice-President of

George

ress

ly like.

well be the opening of

business

enterprise

their

carry

investments
Such

foreign

to

in

investments,

contribute
in

concerns

faster

to

countries

the

After all, material
an end in itself,
to a better life in

President

the

Cleveland

but

to

the

means

all its aspects.
The economic" world

of

to

come

proving the welfare of free
everywhere.
!

are

As

Caleb

Stone

Mr.

Schwarzenbach, Manager of the Foreign Department, has

been with the firm and its
predecessors since 1922.
Mr. Stone has resigned as VicePresident of The
Insurance Company of America to

Huttig Sash & Door

Prudential

accept partnership in the in¬

vestment

Richard C. Noel

banking firm.

Prudential in
He

ment.

Alstyne, Noel & Co., New York
City,
and
a
governor
of
the

was

1931

Mr.

when

elected

a

Stone

became

associated

with

The

he

joined the company's bond depart¬
Second Vice-President in 1934 and a Vice-

President in 1943.

women

higher

men

Schwarzenbach

men

and

world, achieve

the

over

B.

Statistics.

Richard C. Noel, partner in Van

world dedicated to im¬

a

E.

Nye

Mr. Nye has been with
Smith, Barney & Co. and its predeces¬
sors sincb 1929 and is
Manager of its Department of Research and

•

must be

L.

'

Cliffs

Co., St. Louis.

well-being is not

development

they

free society.

a

and their
countries.
turn, will

where

the continued existence of

assures

larger and more appealing oppor¬
tunities for American citizens and
American

of

Iron Co.; Goodrich Lowry, Presi¬
is a necessary ingredient to
dent of Northwest Bancorporation,
improving the welfare of free men
Minneapolis; and Roy R. Siegel,
everywhere, it alone by no means

*

ment may

Finance

Continued

from

page

4

made.

standards of living, not only they
Then, too, economic growth may ■but the world will be better off.;
bring long term strategic shifts of The chances of mankind to
•

"

centers in the world, since

power

achieve

the

social

and

Eastbound Canadian Gas

spiritual

population
and
output - - do - not rblessings of a free society will be
everywhere expand at the same .; increased to tfre extent that the
rate.
That is a subject in itself,
economic well-being of individual
and I shall not try to discuss it
men
and
women
is
improved.
today, but only to comment that Now for the first time in all his¬
such
shifts
will
probably lead tory, hundreds of millions of
peo¬
Americans to realize, even more
ple in all continents of the world
clearly than now, that we cannot are
beginning to see that new and
work out our destiny alone.' The
challenging economic opportunineed for sound international rela¬
; ties may be ooened to them which
tions • is
not
going, to get any will raise theirStandards of living.
smaller in our lifetime.
We can
This is the ^vision w° mav see
be fairly certain of that.
as we lift our
eyes to the future.

duction and sales at the well head

bring
panies,
in

•

the

of

One

greatest

conse¬

of world economic ex¬
pansion is trade. '
/' •'
As world output climbs into the

quences

a

our commerce

countries
flow

in

almost

will
a

volume

so

as

CHICAGO,

to

Governors

small

by comparison the
international trade of the present.

render

111.—The
the

of

Board

Midwest

Richard C.

American
been

of

Stock

,

.

-

i

'

brackets
our

of

ard-Elwood

$500
billion
national production,

and

Robert

Co.;

That demand
be met increasingly

expand accordingly.
have

will

to

We shall need

overseas.

\yill grow as times goes on.
used

to

be

a

-

net

exporter

a

K.

net

importer.

We used

to

can

produce but which are not as

certain other products.
The

prospect
of
greatly in¬
creased world production will of
course,

,

bring new problems as it




wife

as

vic¬

in

the

land Natural

on

ated

peg,

beneficiaries will be Winnipeg
Central

Gas

Company.

This

Northern

interest

in

Lake¬

Gas,

a company cre¬
natural gas fran¬

secure

in

$2 million
will be built

Great

Eastern

Ontario

and

along the St. Lawrence. Lakeland
already has franchises in 17 com¬
munities

of the earliest franchise

one

to

chises

first

including Belleville,
Hope, Coburg and Trenton.

Port

&

Great

en¬

panding

Northern

is

Gas

with

earner

an

net

ex¬

profit

&

Hall,

Bank

of

terprising utility anticipates that,

per

entry into this picture may be in

1961,

will

it

distribute

than IF billion cubic feet

more

of

America

meanwhile

it
is
serving
developments with

housing

*

new

warrants themselves sell at
Both New York Capital
Fund, and Scudder Fund of Can¬

Winnipeg & Central has

D.

Corsaro has been added to the

staff of

Gross, Rogers & Co., 559
South Figueroa Street, members
of
the
Los
Angeles Stock Ex¬
change.
■

Holmes With Shearson Co.
(Special to The Financial Chronicle)

LOS
dore

ANGELES, Calif.

B.

sociated

Holmes

has

—

Theo¬

become

as¬

with

Shearson, Hammill
Co., 520 South Grand Avenue.
Mr. Holmes, who has been in the
&

investment

business

for

operating at a loss, actual
pipe line gas is expected
deliver sizable profits, which

ada
here.

doubt accounts for the current

Canada

to

ANGELES, Calif.—Joseph

many

formerly with Sutro &
Co. and Dempsey-Tegeler & Co.
years, was

no

quotation
common

of

13 V\

shares

stages

Another

beneficiary of
piping
is
Great

Northern Gas Utilities.

©Id

already a
producer distributing
gas in 10 towns in Alberta, Fort
St. John, British Columbia; pro¬
pane gas to 13 cities and towns in

deliver

W.

Hutton

E.

&

Co., 14 Wall
Street, New York City, members
of The New York Stock Exchange,
announces
today
that Orin
R.
Dudley, Jr., has become associated
as a registered rep¬

with the firm

such

This

sales

Gas

line,

contract to

a

million

C. F.
daily
subsidiary of

a

Transmission

has

contract

will

of the

success

already

200

Tennessee

Co.

not

yet, how¬
ever, been approved by FPC.
This swift coverage of TransCanada
Pipe Lines Ltd. is, of
course, but a sketch. For current

British

greater

(uranium)

least,

into the U. S. via

substantial

Columbia
including
Vancouver and Victoria
areas; and manufactured and pro¬
pane
gas
to 10 communities in
Ontario
including
Blind
River

at

and there is

This nine

is

company

thing about Transneglected to mention

one

we

be vital to the

logical

Trans-Canada

stockholders

common

and that is the sale of gas into the
U. S. Many feel that, in the
early

on the 584,990
presently
out¬

standing.

year

are

There is

details

about

each

company

you

must consult your broker, adviser,
or
the financial services.
There

and Sault Ste. Marie.

can

be

no

doubt, however, that

this line adds

For

With W. E. Hutton

6%,

The

pro¬

flow of

(Special to The Financial Chronicle)

LOS

at

(per $1,000 bond) warrants to buy
the comon at $5 till Jan.
14, 1958.

been

r

sells

debentures carrying 35

$3.25.

While

Gross, Rogers Adds

which

common

the 4%%

pane.

Building.

share in 1955 of 39 cents. Your

the

nat¬

ural gas per year, and serve 27,000
new residential customers.
In the

has been added to the staff of

Hall

specifically deriving profits
from the pipeline, however, Great

dimension

Northern

and

wherever

been

introduced, great prosperity

has

two

important

as¬

The first is the franchise to

sets.
serve

Brandon,

the third largest

Battles &

resentative.

ai^/d

seems

to

a

to

have

new

and

Canada's
natural

dynamic

industry;
gas

has

ensued.

Company Official Changes

With

Emanuel, Deetjen
Inc., '
Oscar H. Wibbing,*
Emanuel, Deetjen & Co., 120
O. H. Wibbing^& Co?,
St.-Louis;. Broadway, New York City, mem-1
George E. Hachtmann; Robert C. bers of The New York Stock Ex¬
Wilson.
*; VJ"
change, announce that Mrs. Roser Floor
marie deT. Steward and William
Procedure:
Thomas
S/
Koehler, Chairman; David G. G. Fallon have become registered
Skall, A. G. Becker & Co. Inc., representatives of the firm.
fc,

.

-

our own

advantageous to us to produce as

ThOrtipson, Jr., Lamson
Co., Vyie-Chairman; Edde
Hays, Central Republic Com¬

(Minneapolis)

of

his

has

FRESNO, Calif.—Charles J. Dinan

pany;? Edw
J. McKendrick,
Johnson
McKendrick
Co;, t

We

iron ore; now we
import a considerable amount. We
bring in bauxite, nickel, tin, man¬
ganese, uranium.
As our popu¬
lation grows we shall also need
ever-larger quantities of consumeV goods which we cannot pro¬
duce, like coffee and bananas, and
even of consumer goods which we
dig all

E. Ferguson,
MyKinnon, Chairman;

Edward F.

petroleum and copper; now we
are

B.-^Schwinn,

Bros. &

rely heavily on foreign
of supply and this reliance

with

Exchange,

(Minneapolis);

William

Thomson &

we

sources

Leslie

listed

Noel

(Special to The Financial Chronicle)

Podeita, Cruttenden &

Finance:

an

ever-larger volume of imports to
satisfy • the American consumer
and to serve our industries.
Al¬
ready

'GqJ

L. B.
Schwinn &
Co^Cleveland); Clyde
H. Bidgood; Afch C.
Doty.

demand for raw materials will

from

A.

Stock

With Hall & Hall

-

billion

taken;

target point on
the pipe line is the City of Winni¬

tims of the double plane crash
Arizona.

,

$400

have

one-half

a

A

system

by

Exchange has .vapproved the fol¬
lowing standing. committees pre-The streams of trade, in turn, will
sented
by
George
E.
Barnes,
give added stimulus to our eco¬
nomic growth — in fact, without Chairman, to serve for the ensuing year:
^ \
trade our projected growth might
Executive:
Walter
J.
Buhler,.
not take place.
/,
Chairman; William E. Ferguson,
Thomson
& *McKinnon,
ViceRapidly Expanding Markets
As
regions
develop
economi¬ j Chairman; Arthur A. Christophel,
Reinholdt & Gardner, (St. Louis);
cally, they become bigger markets.
W. Yost Fulton-, Fulton, Reid &
Their people can buy more goods
Co. (Cleveland.) ^Clarence A.
Horn,
and services. There will be comvFirst of Michigan Corp. (Detroit);
petitioM
for
these
markets,
of
James
W.
Hope;
Edward
F.
course.
There
should
be.
But
Thompson, Jr.,; Lamson Bros. &
when
markets
are
expanding
Co.; Robert AsrPodesta, Cruttensteadily there is room for those
den & Co.; Robert C. Wilson.
who can produce the things that
Admissions: Gerald V. Hollins,
are in demand.
We in the United
States yill be sending our prod¬ Jr., Harris, Upham & Co., Chair¬
ucts
abroad
in quantities much man; GuentherdVL Philipp, Paine,
Webber, JacksdS & Curtis; Vicegreater than those of today.
Chairman; Robert L. John, WoodAs our own country passes the
,

too,

area,

Manitoba.

Secondly,

has

distributors

hue of potential prosperity.
few
notes
on
some
of these

Since

Appoints Committees

inevitably
vast

certain

might be in order.

Midwest Stock Exch.

with other

the

then

in

distribution
here.

new.

A

-

trillions,

city

vastly .improved
earning
to some of the above com¬

power

'

'

Vice-C hair

Scott Davis,
Co.; Norman
Freehling, Freejiling Meyerhoff &
Co.; George ErHachtmann; Edde
K. Hays, Central Republic Com¬

Ralph

pany;

W.

m a

Dayis

n; •

James W. Pope.

Public

Relations:

Paidar, Goodbody
man;

Harry

Hommer &

Seymour

A.

f

-

&

&

v

t

With Dixon & Co.
PHILADELPHIA—Dixon & Co.,

Philadelphia National Bank Bldg.,
of the New York

members

Leonard

J.

Co., Chair¬

Baum,

Wayne

Co.; Clyde H. Bidgood;
Clonick;
Scott
Davis,

William

W.

Battles

Winthrop

H.

Battles

P.

DeWitt

Turner

Stock

Hayes, Jr., is now associated with

PHILADELPHIA, Pa.—Battles & Company, 1528 Walnut St.,
members of the Philadelphia-Baltimore Stock Exchangel, announced
the election of William W. Battles as Chairman of the Board and

them

Winthrop H. Battles ,as President

Exchange

tive.

as

a

announce

that Samuel

registered representa¬

banking firm.

of this 66-year-old investment

P. DeWitt Turner was elected First Vice-President.

The Commercial and Financial Chronicle

28

7

Continued from page

Pending Legislation and Problems
Regarding Proxy Solicitations
after the first solicita¬
term "participant" in¬
cludes, in addition to the corpora¬
tion
and
its directors, and any
nominees for directors, all persons
and groups primarily engaged in,
promptly

The

tion.

financing and responsible for, the
conduct of the proxy solicitation.

lending money

or

or

financing

influ¬

otherwise

or

provisions should make available
to the security holders informa¬
tion about the background and the
financial and other interests not
only of all persons who are nomi¬
for election as directors, but

nees

who may repre¬
sent the real interests behind the
formal nominees, and should re¬
duce substantially
the difficulty
we have had in the past/with un¬
also of all persons

principals,

disclosed

"fronts."

or

participant is required to

Each

filed in
response to Schedule 14B, his oc¬
cupational background and per¬
sonal history, the amount of the
disclose, in the document

securities he

corporation's

acquired, the cir¬
under which he be¬

participant in the solici¬
and any arrangement or

a

tation,

future

respecting

understanding

employment or other transactions
with the corporation. A summary
of
this
information
concerning
participants must be included in
the respective proxy statements of
the contesting groups.
These

disclosures

of

protection

the

for

Important

vitally

are

investors in contests for corporate

When persons seek

control.

to be

appointed fiduciaries of the prop¬
erty interests of security holders,
conflicts
of interests should be
identified
and disclosed. In the
past,

participants

tests

have

conceal

nancial

in

proxy con¬
sometimes attempted

background,

their

in

interests

the

fi¬

corpora¬

activities in the solicita¬

tion and
tion for

proxies.

soliciting material
of prepared speeches,

of

releases, and radio and tele¬
vision scripts must be filed with
the
Commission
promptly after

press

their

As

use.

convenience

administrative

an

the

to

such

public,

be filed, and if
filed, will be reviewed by the
Commission, in advance of use.
documents

The

may

continue

rules

new

to

re¬

quire that all advertisements used
as
soliciting material in a proxy
contest be filed with the Commis¬

bitter contests for control of

and

Thursday, July 5, 1953

.

.

again

The

Commission.

of the

function

the

state

to

Commission, as

bipartisan inde-

a

pendent regulatory agency of the ;
government, objectively and im-

partially scrutinizes the proxy ma*
terial of participants for the purpose of enforcing the standards of
fair and adequate disclosure to investors which are clearly set forth
as primary objectives of the Fed-

and

author

the

of

consent

and

in

is

for its republication.

material facts

financial

annual

reoort

of

corporation to its security hold¬
ers is not usually considered to be

a

soliciting

proxy

not treated

material

and

is

"filing" with the
Commission. However, if any por¬
tion

as

the

of

a

annual

report

the solicitation of

cusses

an

dis*

obtain

to

for

and

investors

lief

in

Federal Courts

the

statute

provides

of

subiect to the proxy rules by the
1956
amendments
and
must
be

The basic theme, flowing through

specific

provisions

of the type I
mentioned, is the statutory
standard, expressed in the rules,4
have

that

solicitation shall be made

no

which

contains

statement

any

which, at the time and in the light
of the circumstances under which

it

is

made is

false

or

misleading

ceedings connected

opposing groups will bring out
lenough of the vfacts to enabl'je
the

shareholders to form

an

ade-

judgment as to the merits
of the competing parties.
There
has been challenge in the Courts
of the Commission's jurisdiction
in cases of stockholders' disputes
with management. The argument
quate

in

that

tation

solicitation,

reimbursement

will be
corporation.

penses

Street

anticipated

the

contracts,

of

cost

for

and whether
soliciting ex¬

sought

from

the

Changing

any

heat of proxy fights, may be made
and

which, depending on the par¬
facts, may be misleading.

ticular

These include:

proxy

the fact that

contest spring
a

Predictions

future market

as

to

specific

values, earnings, or

considerable

portion of the corporation's out¬
standing shares are often held in
names and their ownership

.street

such

immoral conduct

or

or

asso¬

constantly changing.
Partici¬
pants in a proxy contest no longer
can
rely on being able to com¬

ciations,

municate with the beneficial own¬

statement, form of proxy and other
soliciting material as to clearly
distinguish it from the soliciting

is

ers

of

indirectly through solicitation
the

stockholders

of

record.

Therefore, the widespread use of
paid advertisements, nrepared

releases,

press

radio

.and

and

press

interviews,

television

broad¬

has
become
common
attempting to reach security

casts,
in

"holders and to
of the

sway

public and

advise

security

the opinion

who may
holders with

oersons

Jespect to giving, revoking

holding

or with¬

proxies.

Whether state¬
ments are written or oral, are pre¬
pared in advance or are spontane¬
ous
they nevertheless constitute

material

a

continuous plan to influ¬

stockholders and

are

deemed

subject to the Commission's stand¬
ards of fair disclosure

and, specifi¬




factual

of

so

any

founda¬

identify

other

persons

soliciting

meeting

or

for

a proxy

person

the

same

subject matter.

the

heat

of

bitter

struggles

for control, argumentation of this

in proxy soliciting material
tend to confuse and mislead

security
and

cise

Jl_

±.

_

_

•

It

The

legislative history of the
Act indicates that the
Congress was concerned with the
abuse of proxies by seekers
of
corporate power as well as by
management.
One of the Congressional reports states that "the

holders and the public
impair the free and fair exer¬
of

the

corporate franchise.

statutory

authority

of the

Securities and Exchange Commis¬
sion to regulate the solicitation of
3 Rule
4 Rule

second

,

paragraph of its

e^Phas126 says:
'Appellants' fundamental corn,5
apPears
9,5
stock.

with each side
charges with com¬

contests,
hurl

to

parative unrestraint, the assump¬
tion being that the opposing side
is then at liberty to refute and

thus effectively deflate the 'campaign oratory of lts adversary,
Such, however, was not the policy
9* 9.9ngre®s aa enacte<J in the Sepurities Exchange Act. There
Congress has clearly entrusted to
the Commission the duty of protecting the investing pubic
gainst

misleading

the standards of dis¬
by the Com¬
missions proxy rules under Section 14 of the Exchange Act; This
deficiency in information is par¬
ticularly striking - in
connection
with

the

investors from promiscuous
solicitation of their proxies,
on the one hand, by irresponsible
outsiders seeking to wrest control
of
a
corporation
away
from

It is particularly pleasing to me
to have this decision rendered by
a Court
of very high standing
sustaining our rules against the
challenge that they violated

con-

stitutional guarantees of freedom
of speech and press because of
fears
expressed
in
the
press,
which

T

I

U^ll—1

believe

have

i

■

been

now

allayed, that the Act of the Con¬
gress imposing standards of fair¬
ness
and accuracy of disclosure

W1
respect to certain corporate
"ac^s such as proxy soliciting in
s^^16 way impinged on these traditional and deeply cherished
constitutional liberties.

and

conscientious

corpo-

X-14-A-9.

X-14-A-9.

officials; and, on the other
by unscrupulous corporate
officials seeking to retain control
of the management by concealing
or distorting facts." 5

hand,

In

this connection, it is also in-

teresting

to

note

the

the United

de-

recent

States

SEC Act to 1.205 Firm,

Legislation7

protect

honest

now pending in the

Congress would extend the finanClaj reporting, proxy solicitation,
anc*
insider trading" provisions
°f
Securities Exchange Act to
about 1,025 corporations, the securities of which are not listed
on a. rational securities exchange
bu^ ln 1^there is a substantial public investor interest. Generally, the corporations which the

bjLj°"ld
J?

th"

Pwdhin„ thf?
Exchange Act

°

Federal

®

Court

Appeals for the Second Circuit.
rejecting such contentions.
The
Court
of
Appeals affirmed an
order which granted the Commission
preliminary

S £ 7^
St
51^" " itfe.
s? ^

against

iion.

Of the

have

more

of

,

enjoining

further solicitations

violation

of
.

means

,

of

the

of

the

5 Senate

73d

proxy

.

and

in

rules "by
.

,

false

statements and
all

proxies

the management,

,

..

ald

ing

and
furnished

I1 ™i„lho.n.

mil!

$2
1,205 companies, 963
than $5 million of

assets and 673 have

more

than $10

The aS§re§at.e

assets of the 1,205 corporations

misleading

over

in

connection

is

$35 billion.

without disclosing

persons

Committee

Cong., 2d Sess.,

on

whose

Report

page

77.

No.

be145S,

of

4

directors.

6

S-E.C.

v.

this

legis-

May, et aL, C. A. 2, Jan. 11,

19SQ.

2054, H. R. 7045.

proxy

are

,

the cases, not even the

identity of
disclosed,?

nominees for election is
let

aione

pertinent

concerning

them.

information

In

many

cases

>

i

where proposals are submitted for>

stockholder

provided

action,

on

the

or
against
Taking into

data

ballot

no

form

of

and

and

on

in

our

vote-

can

Currency

on

Bank¬

the

on

basis of

ta¬

report

Committee

the

is

proxy

the proposal.
»
consideration the:

contained
Senate

study,

continu¬

our

ing study of the problem, we have
advised the Congress that we be¬
lieve enactment of the bill, sub¬
ject to certain changes we have:
suggested,
would be in accord
with

the

ba«c

of

purposes

theii

Federal
the

securities laws and that
principles and^objectives of

the

bill

The legisla¬
provide
additional
protection to investors in corpo¬
rate securities, in which there is.
broad public investor interest and

tion

are

sound.

would

which

are

requiring
business

sold

in

traded

and

the

securities

interstate

markets, by
disclosure of the-

fair

financial

and

facts

per¬

taining to the corporations issu¬
ing them, thus contributing to thestability of the markets and theprotection
of
investors
against
fraud and deception.
Short-Swing Trading

Parenthetically,
that

have

we

the

I

should

recommended

say

that

the extension

Congress defer

of Section

16(b) of the Exchange
Act
to
these corporations until
further information can be devel¬
oped on the effect which the ap¬

plication of this section, which
provides for the recovery by the
corporation of profit from shortswing (6-month) trading by di¬
rectors, officers and 10% stock¬
holders,
would have upon
the
maintenance
of
adequate overthe-counter trading markets and
new capital markets for the secu¬
rities of these corporations.8
Another

problem of the regula¬
solicitations involves

tion of proxy

giving of proxies by\brokers
dealers

and

Section

in

14(b)

makes

Act

securities

listed

for

their
owned by customers.
registered

names

the Exchange

of

unlawful

it

but

for

any-

such member, broker or dealer to

give

with respect to a
carried for the ac¬

proxy

a

listed security
count of

a

customer in contraven¬

tion of such rules and
as

the Commission

as

necessary or

public interest
tion

was

regulations

prescribe
appropriate in the
for the protec¬
may

or

The

investors.

of

Stock

Exchange

Report ort

Practices

which

issued by the Senate Commit¬
on

Banking and Currency at

the time when the

Securities Ex¬

change Act was passed, in refer¬
ring to this provision, states:
"The
the
it

rules and regulations [of
Commission] will also render

impossible

for

brokers

no

beneficial interest in

to

usurp

the

franchise

customers

and

a

having
security
of

power

thereby de-

8

Report of the Securities and Exchange?
Commission on S. 2454 to the Committee?
on
Banking and Currency, 84th Cong^
2nd

7 S.

of

their security holders
corporations, and noth- *
ing resembling a proxy statement*
is provided.
In three-fourths of

their

with

notice of meet¬

a

form

a

by these

tee

°r

f

injunction,puwf^fnd'tota^ass^f

soliciting

group

a

in opposition to

election

Typically, only

statements

*9ade in the course of a struggle
*or corporate control,

byd th?cSSLSTJm lending

gated

cision of

solicitation.

may

»*

a.

Exchange

or

(d) Claims made prior to a meet¬
ing regarding the results of a

type

•

rate

(c) Failure to

The

part of
ence

without

tion.

In

solicit-

groups

established

the

(b) Material which directly or
indirectly impugns character, in¬
tegrity or personal reputation, or
directly
or
indirectly makes
charges concerning improper, il¬
legal

various

the

proxies should be free to
engage in the same type of "cam.JlAl
paign oratory" as that of partici¬
pants in a "political contest."
-

has given ex¬
amples of statements which, in the

dividends.

Many of the more difficult prob¬
from

misleading.

or

The Commission

(A)
and

Names

Ownership

lems in

made not false

advanced

been

cases

fhe

opi,9lon „w9n,

free

been

has

It

'

political

ing

tion of the methods of solicitation

J

in the eyes of the law just as are

oppo¬

that portion is made

.

by

closure

ing

the

by

c^orsblb;

holder disputes should be viewed

Contests

judged

ttle

nm

p

and

Are Not Political

Fights

^ 1559.l!tL

™

necessary,

misleading statements.
Proxy

%

ih? rLi

false

when

dissemination

the

:

soliciting

by which the stockholder

constitutional guarantee S0f freedo?L
speech' This the Court

the

as

3

proxy
and " practices

for

refers to

forP «ceLorsW'

M d

to prevent, by

and

seeking appropriate injunctive re-

suggested, in pro¬
with our administration of the rules, that in
filed with tfre Commission prior viewTOf the apparent similarity of
to distribution.
proxy contests
to political campaigns the clash of debate, the
Basic Theme and Misleading
charges and counter-charges, reIllustrations
buttals, and sur-rebuttals of the

sition group,

*5®. a£

stockholders the fair disclosure of

fact necessary to make statements

and the material features of solici¬

„ s

J plfSn

nn,Iimo^

rules

prescribing

goverCnUrproexyans1)IkUaS

directors, the proxy statement is
also required to include a descrip¬

election

the

®dhe£
insurgent,
•

^

scrupu-

Commission

publication to use the material has
been obtained, and if anv consid¬
eration has been, or will be, made
The

be

must

neutral; it neither takes
sides nor plays favorites in proxy
contests.
The
objective
of
the

has

for

Commissions

the

^ by Otherwise"

Th

lously

of the

and

is

mission

are

parties themselves
develop. The Com-

to choose and

with respect to any material fact
or which omits to state a material

contests

.

^r°^ ™les, a® a£p
v.
*

ar¬

whether

disclosing

,

r:

..

Furthermore,

These

cor-

developed

with the information necessary to
exercise an informed vote when

.

attempt to shape or define issues
disclosure.

these

.

,

except as they may be a by-prodfair

of

study

of the

unauthorized - delegations of
f5lve P°w®r."?nd otherwise,
?e c9nten^ons hav9 99
of participants
in a contest for
P™erQn& £l°ht
control. The Commission does not hPA:\
TT'C
S
undertake, in fact we avoid, any
K™?
States, 321 U.S. 414.
of

*

proxy *.

,

fs

no
attempt to guide,
interfere in the strategy

or

This

that the

material

/A,PP?1lalntSoargu.e.. tha£ s?ctl0n
44 ^ ,nile
AeSo chan8e
7
,■!?*
Section
J8n(a), and regulations adopted
thereunder,, are^ .unconstitutional
Jeg.
but

makes

control

the

quoted in the

person

any

ticle

the fact

Two paragraphs of the opinion
of the Court of Appeals are most
important. The first is as follows:
,

practices

porations.

technically designated committee

matters for the

and

soliciting

reporting and

of most;
corporations which would
subject to the bill are wholly
who in fact are .
in the opposition inadequate to furnish investors

members or nominees.

eral securities laws. The Commis-

or

ously published material used in
soliciting proxies also must be
filed prior to use, together with a
statement indentifying the author

the financial

group s

sion

of

In

leading factors

proposal,: the Commission
a study with
respect to

has made

be

formation and activities
notwithstanding the circumstance
role and that some of such persons are not

several large, well-known corporations.
So it is appropriate for
me

all persons

publicized of

of (highly

number

a

uct

prior to publication. Reprints
republications of any previ¬

lative

proxies, as well as Commission half the solicitations were being
rule-making
and, administrative made.® Although these proceedpolicy in this respect, has become ings
were
brought under the
increasingly important and the Commission's proxy rules as in
subject of much discussion, in the effect prior to the January, 1956,
Congress, in the press, and gen- revision, the Court held, among
erally.
In part this has been other things, that Schedule 14A
caused by the public interest in of
the rules requires disclosure

sion

were

cumstances
came

owns,
which
the

in

transactions

securities

require, however,

rules

in the form

encing the contest, are included in
the definition of participant. These

to

participants in an election contest.
copies

$500,

the

the

to

new

furnishing credit for the purpose
of

made

that

a

all statements
general public by

of publication

vance

stockholders' commit¬
group or contributing more

tee or

than

misleading statements.3
It would be impractical for the
Commission to scrutinize in ad¬
and

The

ganizing

false

cally, to the rule prohibiting

taking the initiative in or¬

Those

f

.

(88)

Sess.,

1956).

(Committee

Print,

May

25..

Volume l84

Number 5548

The
Commercial and Financial Chronicle

...

(8Sf

!

.

'

^

'

"

_

*

1

V,

•

'

■

>

prive the, latter. ;of their, .voice in
the control, of thecorporations in
which they hofd^eciirities.^ v.
.

Section

34 (b); has * ttever
implemented :by rule.

I"-?:

been
•-

.

rule, X-14B-1, on this subject in bility ofserious inflation. LikeMay, 1955\ Many thoughtful and Wise, in attempting to sell variable
helpful comments were received, annuities, the agent would have
After consideration of these comr to
bring up ■ the probability of
ments,

circulated

The

'

revised

a

Workable Brokers' Proxy Rule

revised

A

Commission

develop

is

seeking

workable

a

rule

will

prevent brokers from

ing

or

voting
the

We

are

the

at

interfere with

considering the adoption

rule which would set out the

a

conditions

of

which

and

orderly solicitation of proxies
the voting of shares.

and

of

rights

time will not

same

assum¬

usurping their customers'

under which

national

a

brokers

and

business

give

members

securities
and

exchange

dealers

who

do

through : members, may
covering securities
an exchange and carried

proxies

listed

on

for the

of

account

customers.

proposal was

April,
,

,

.,.

,

,

The Commission first circulated
for public comment a proposed

.

sim-

plified the proposed requirements
and covered

number of practical

a

serious inflation unless the
Unfortunately,

any

ajjOUt

inflation

buy

ceived and we

are

the

desire

conventional

talk

such

of

would

people

life

to

,

now

A good deal of careful

against the purchase of life insur-

thought is going into our effort to

ha^^esp^££

ing them.

achieve

workable

a

will give the owners of
in the
ers
"

names

stock held

of brokers and deal-

effective voice in the

more

a

which

rule

7

x.

v.-

.

,

affairs of the corporation in whicn

«»£
Q£

inflation, then it
been more difficult

insurance,

9 Senate

element such

insurance

ordinary life,

as

It

f

;

would

if

even

f

therefore

that,
companies could

life

the

seem

somehow solve
the
problem of
training agents successfully to sell
/;■ varying annuities to individuals,
their doing so would be harmful

association has

been, granted

exercised

the

over

past

in the interests of
investors

17

from first

page

Some More Viewpoints on
The Variable Annuities
a

-general

prices

upward

less indefinitely in

more or

the days

ahead.

These conditions

certainly creating

are

ment

in

movement

conducive

environ¬

an

the

to

sale

of

speculative securities and it is not

tent

nuities

would

life

consideration

annuity

is

does

for

is

and

the

life

sale

of

annuities

specific

for

amounts.

been

so

small

by

comparison with the sale of life

But the

ins"rarlf *hat the life companies
9,an afford to do anything about
ity business which wou d

this

the sale of life msur-

the

to

and

sum

for

an-

has

sorts

immediate

an

single

a

make

which

the

of

Moreover, the sale of annuities of
all

variable group annuities.

fact

business

insurance

guaranteed

similar

be

;

main

companies,

immediate

individual

the

to

significant,ance*
H the field forces of the life
companies should ever become

a

Under
the
surprising
that
the
investment difference.
varying
public now begins to look askance annuity principle, the entire conat fixed
i

income investments.

sideration

■

for

immediate

an

an-

really sold

on

the idea of variable

annuities, they would certainly
fund investment companies clearly at. one time and obviously there Put- the strongest pressure on the
indicates this. There assets appear have been many times in the past companies to issue variable life
The

to

recent> growth

be

growing

than

rate

at

those

of

a

of

mutual

rapid

more

the

insurance

nuity would be invested in stocks

where

such

While

the

varying
principle
be
applied to
individual
premium immediate
an-

could

tices

ma.y

nuities,

meet

the

new

in order to
the

of

needs

hour

single

would work out

tice that

valuable

could

companies have rendered

surance

in the past.
Some

students

the

of

problem

suggesting that the companies
are commonly known

are

write what
variable

as

annuities.

suggesting

Others

are

that

decreasing term
insurance should be written, ac¬
companied
by installment pur¬
chase

of

While
that

mutual

still

the

mitted

to

fund

advocating
companies be per¬

cost of their

increasing

an

stocks and

common

doing be able to

so

shares.

are

purchase

of

amount

others

life

by

the net

vary

insurance, and in this
problem.

meet the

manner

The

Teachers

Insurance

and

Annuity Association of America

period

over

long

a

of

time, payments which
persumably invested immedi¬

are

ately. The purpose of issuing vari¬
able annuities is to provide a pen¬
sion which will do

meeting

the

sioner,

a

better

job in

having

needs

of

the

badly in

prac-

reputable organization

no

issuing them,
either
directly, or indirectly
through a subsidiary corporation,
The\ next question is whether
the varying principle could be applied
mium
all

individual

to

deferred

annual

annuities

pre-

such

as

companies

have been issuing
for many years.
These annuities
are similar to those illustrated by
T. I. A. A., except that convenannuities

tional

of

are

course

guaranteed amount.

a

It

to

seems

me

for

that it would be

difficult indeed for the life
either
directly or
through a subsidiary corporation
companies
issue

to

variable

individual
the

need

annuities

basis.

be enacted,

to

annuities

on

Wholly

laws

new

that

an

apart
would

the selling of

would

pen¬

in
mind
the
changes in the purchasing power
of the dollar, than would a guar¬
anteed dollar annuity.

create :

• a

and

salesmen

the Association
on

the

road

has

no

selling the

annuities.

the securities

and

I

of

Training

before this Committee

452, which would permit the

sale

of

instrument

an

been called

a

by

which

companies.

certain

considered

It

that

assume

these

life company. I can't imagine
hew it would be possible to train
a

field force

annuities

to

sell

and

insurance.

both

variable

conventional

The problem

life

of train-

ing salesmen would be utterly different

than

in

the

field

group

where the real

in

so

far

The

as

benefits

company

salesmen
sure

be

company

life

insurance

of

to

Some

of

us

the

There

diate

consider

single
are

values

Pertinent

no

Questions
first

permitted

be

to

this proposed

matter

how

had

fore

and

contracts

ance

have

well-defined

securities

are

sold

anteed.
be

amount would be guarSettlement options would

variable

therefore

and

not

guaranteed. Premiums for a particular policy would vary from
year to year when; expressed in
dollars. There could be no table
of guaranteed values

because

would there be

any

no

Nor

policy loans,

There might be a provision for
cash value but the amount of cash
value could not be guaranteed,
This

illustrates

how

im-

utterly

possible it would be to handle the
sale

variable

of

life

insurance

through the existing field forces
of the life companies who are Re¬
to

sell

conventional

are

make

that
more

Even

understood it, and I
a
small proportion

highly

-gifted

life

agents would understand

of

the

transaction

intelligible
only a very small proportion
their prospects.

the

cas^
Then,
annuity. the life

too,

the

such

panies.

19, 1956. It is the

belief

sociation that the

legislation

by
the

of

sale

in

consider

states

in

in

general

scribed

of the important life companics should begin to sell individual variable annuities. I have

ina buyers.

If,

as

the

JOHN W. LINDSEY

certain

are

they

such instruments or contracts

are,

should

be

regarded

as

securities,

then any abuses in this field which

ultimately damage individual investors
and
the
public interest
will

be

only

to

the

to

The

of

cause

a

investors
entire

concern,

not

generally,

but

securities

business,

private organizations of this

country which are interested in
the capital markets have, for many

through their own powers
through recommendations to
State and Federal bodies, advoyears,

and

General

Counsel

National

Asso-

j
as

appear

before this Committee

General Counsel of and

on

be-

Dealers, Inc. That association is a registered securities
an

amendment

to

the

Securities

Exchange Act of 1934, which was
adopted in 1938. The purpose and
function

provide

of

the

association

self-regulation

is

with

to
re-

and securities business,
and, to the extent possible under

attendant

risks

with

all

thereof.

We-

also advised that the National

are

Association

of

Securities

Admin-

istrators

representing the various
regulatory bodies, also re-

state

curities.

instruments

The

"annuity"

instrument

is

undoubtedly
cated

be

se-

of

the

name

in

of

this

deceptive, and will
the unsophisti-

lull

purchaser

unfounded

to

use

very

sense

into
of

false

and

safety and

cer-

a

tainty as
to
income
payments,
particularly since they would be
sold by insurance companies.
;
a

;

.

Must Be Regulated

securities,

as

particularly

-

s*nce it has been said that, should
this^ legislation be adopted, these
contracts will be immediately
available for sale in many states,
This is of great concern to us beof

cause

knowledge of tbe

our

problems of the* needed regulation,
the saie °f securities to uninformed buyers.
™e, therefore, recommend and
suggest:
:
.
,

(1) That this Committee conelude that the "Variable Annuity
Contract," which could be issued
if this legislation is enacted, is a

on

state commerce is subject to the
Federal Securities Act of 1933 and
must be sold pursuant to the requirements of that statute under a

had

prospectus which would make, at

banking
their

own

tent

of

authority and to the

the

a

measure

limited

influence

authorities,

regulatory

of

success

the public and

have

ex-

in educating

protecting the pub¬

interest.

lic

minimum,

a

the

use

of the

sincere belief that
"annuity" in

word

we are expressing our
belief that the use of

"annuity"

word
is

a

Theresin-

and 452.

misnomer

in
and

this

the

instance

tends

full

disclosure

that

is

to

be

misleading.

of

in¬

The record of the holdings

of the particular segregated

of contracts which might
ultimately result is improoer and
may very well tend to confuse and
mislead the public.
Over a long
period of time, the word "annuity" has been used and understood
to mean a series of guaranteed periodic payments, fixed in amount,

cere

a

of contract
volved, including:
type

(a)
(b)

fund;
and

amount of selling

The

administrative costs involved; and

(c)

clear

A

statement

the

on

front page of a prosoectus that
the document being sold is not a
fixed dollar contract.

(3) We

are

that

ion

documents

ali

0f

should

of

to
the

that

are

subject

law

State

and

applicable

be

requirements

the

Federal

further of the opinselling
such

salesmen

to

securities salesmen,

(4) To protect the pubhe inter¬
it is our clear belief that
there must be prescribed stand¬
ards for sales literature relative
est,

to this type of policy so that there
no
chance for misunderstand-

is

ing
as

or

insofar

misinterpretation

the public is concerned.

(5) The public interest requires
there be provisions for cus¬

that

Cites

South

Carolina

Court

Opinion
As
one

I
of

country

stated, as
organizations of this
representing
the great

have previously
the

bulk of the securities business
have

a

could justify to

surance

folio

we

great interest in anything
has

an

impact

upon

the

markets.
Of course, incompanies, both directly

and indirectly,

possi-~ lation of the approximately 50,000

Annuities,"

securities

tightening of regulation security, and we suggest that the
in the public interest, have advoCommittee report so state;
cated
qualifications for individ(2) We further believe that the
uals engaged in
the investment, sale of such securities in inter-

half of the National Association of
Securities

fact

cated the

fore,

ciation of Securities Dealers, Inc.

"Variable

as

in

lated

we

by Bills 450, 451

.

organibusiness,

these

Therefore, it is the considered
protect the public interest and" judgment of this association that
to avoid the possibility of misleadsuch instruments should be regu-

no objection to separate corporations being established for the
purpose of selling variable an- continued for life or some other
nuities. I simply believe that it specified period. Such meaning
w°uld harm the life insurance cq/inot be applied to the instrucompanies to get mixed up in this ment here under discussion and
which is proposed to be permitted
business,
_

be

to

the types

some

that all

securities

to

I

f?re>.that the entire business of
insurance would be hurt if

the

particular instruments, heretofore misleadingly de-

in¬

there-

in

to this type of instrument in order,.

breadth of the U. S., and the regu-




as-

safeguards

many

securities

It is our very

thinking,

advised

are

equally essential to be applied,

are

which

the

same

this

and of investment company shares,

soect to the securities business of

emphasizing

Tuesday;
strong

under Federal law and

necessary

annuities only by referring to and

probably

com-

that have heretofore been deemed

issued imme¬
ex-

We

zations

very

the members of

of

an

only the letter and the spirit
statute, but
is
contrary to the purpose and
theory of life insurance."

word

June

on

that this is

of the South Carolina

District

the

help

convinced

am

gards such

Columbia

Jbe

concepts

insurance doctrines.

not

It would appear that this

capital

annuities, hence to this

"I

so^

Hits "Annuity" Term

cannot

life

also is the position of the SEC by
of the. action filed in the

its approximately 3,600 members
located throughout the length and

company

sound

bust*-

may

investment scheme which violates

reason

of

securities

tain investment features similar
to mutual funds, it was stated:

is,

by the respective insurance

the

a

a policy that
combined life insurance with cer-

stock fund to be administered

mon

on

Life Insurance Co. of

Annuity Conin essence, an offering
the public of shares in a com-

to

IP

the language of Judge Martin
of South Carolina in an order barring the sale, in the State of Sotith*
Carolina, by the-Coastal States

contracts

The

great

In

"Variable

tract"

its agents the issuance of variable

nor

insur-

not

are

as

hereto-

in

engage

theory which
contrary to fundamental

normally known in the mind

called

of

management

to

ness

meanings,

of the public or the law.

Favors Separate Corporations

no

if

pur-

legislation,
by the

there is k

that

of

public interest' and
public policy involved when insurance companies are permitted

instru-

described

of words which

use

the

believe

question

and the Committees

loan

premium

cash values

in presently

would

it, they in turn would be able to
make

agents.

Let

the

concerned,

are

whatsoever.

am

by

no

ance,

individual

ent

the

directly

guaranteed amounts of life insur-

is

of the association that the

suant to

has

"Variable Annuity"

judgment of the Board

of Governors

ments

We

Qf

appear

and

Salesmen *

annuities would have to be sold by
the regular field force of the par-

We
face
an
entirely different
problem when it is suggested that
the principle of variable annuities
sold

Here We would run into some
real
complications.
Instead
of

busi-

in opposition to the proposals contained in Assembly Bills 450, 451

surance.

Problem

guarantee

applied to individual annuities

After all, this

^ne most important part of their
sales and contributes mainly to
their livelihood. If annuitants
should properly be protected in
their old age against inflation,
then the beneficiaries of life lnsurance policies ought similarly to
be protected,

customed

problem.

selling is done by a
small corps of extremely intelligent and highly trained specialists,
The variable annuity which the In a variable
annuity, there isn't
Teachers Insurance Association is a
single figure which a salesman
selling is a group annuity. It is can sink his teeth into.
No defoffered only to schools and col¬
inite number of dollars is involved
leges

policies.

insurance

values would be guaranteed.

-

very

such

began issuing vari¬
able annuities for pension
pur¬
poses., ' These variable
annuities
are purchased
by means of peri¬
payments made

so

idea

the

a

few years ago

odic

think

afford to risk

from

The Teachers' Annuity Plan

should

I

without, of

course, destroying the
services which life in¬

would

have turned out very, very badly.

companies. This naturally raises
the
question of the extent to
which present life insurance prac¬
be altered

transaction

a

years

public, the

itself.

ness

I

the

-

Continued

the capital markets of this nation
.

by Act of Congress certain disciplinary functions which have been

no

Harm Regular Insurance Sales

;

1455, 73rd Cong

Report No.
Sess., Page 77.

to

™here there is little investment

v

2nd

it has
sell life

seems

life

even

The

insurance

annuiHes, ^ose for £uaraJJ-

teed amounts.
While even the
probability
of
serious
inflation
consider- ought not to be a valid argument

,

,

serious

weaken

problems raised in the comments.
,

pros-'

himself should bring it up.

L,
Further suggestions have been re-

they have invested.

..

The

1956.

proposal clarified and

to

which

in

registered representatives or. sales
personnel of such member firms.

through their porttransactions, are involved in

todianship,
diversification,
per¬
centage of ownership and supervision comparable to that set up
under
the
Federal
Investment
Company Act of 1940.
(6)

disthe
and offering for sale of

There

ci0sure

0f

jgSuance

COntracts

should

and

aiso

control

be

over

by any company

investment

in

policies
,

whose

this

field
ftit

Continued on page 30

The Commercial and Financial Chronicle

Continued

from

It

29

page

seemed

inconsistent to college
university officials to seek
a
higher yields and some protection

to

against

inflation

able to eat

tutions

while

banking goes, "have been able
sleep weU''.;<W;hile those whom
they aim to /protect "were not

and

Some More Viewpoints oxr
The Variable Annuities Issue
completely untried and whose
ability to administer a common
stock fund, into which people are
invited to invest their money, is
are

unknown.

Interest

Involved

In conclusion, it is the sincere
belief of the association, its Board
of

Governors, its committees and

its

ment

the last 20 years dividend
yields on common stocks have
exceeded
yields
obtainable
on
fixed

dollar

-

investments.

members

that

At

a

very

serious

the

is

in¬

provisions of these

securities

business

may

Such

abuses, if they
arise, may very well affect
confidence of the public and
investor in the integrity of
capital markets of the nation
indeed

and

mortgages

has

been

effect

the

However,

of

slightly higher return
of years
is
difference
of

small.
even

over

a

pe-

in

A

the

the
and

the

poned until all aspects of the pub¬
interest can be thoroughly

lic

studied.

'

It

should

Assistant Professor at the Amos
Tuck School of Business Administration at Dartmouth
College,

Hanover,
hoiiPVA

New
that

ties should be

uf
lie.

Hampshire

T/ariahio

offered

to the Dub-

°

„

Complete dependence

conventional fixed-dollar

„„PVL
the
on

type of

annuity for retirement income has
become

un¬

that

noted

the

annre-

vafueP

market

The

stocks^would have ex¬
same1 effect as higher
dividend yields.
Average capital
appreciation ^ of -1%
per
year

the

also

would

produce

benefits for the
tant

noted

The

not

above.

statement

has

hardship

I

the

do

It

idea.

in
irr

created

for

made

success.

this

to

inflation

has

years

been

annuity depends

inflation for

subscribe
that

more

imaginary annui¬

that the variable
upon

20%

is

oast 15
past 15

extreme

an

annuitants.

many

faculty

and

I

a

the

Associa¬

Fund

the pnrf

nf

lQr,r

fails

1952.

of

plan

will

be

^t°^»u^_^ea?'frsr.since
sophisticated
group

a

this

teachers

harl
had

mcn

T

.

..

that

inclined to purchase

able

annuity- ^ntract
„»a^4.

how

-'

,

.

believe

I

panies

variable

life

the

are

*

logical

annuity

issuers

Even

,

because

inflation,
declining

ments

yields

individuals

fixed

proven

oven, to

from
dollars

-

losses

happily,

longer life

ex¬

of

and

over

any

years.

stocks

common

Most
have

minimized

in

the

of

case

and

reduce

annual

annuity

benefits.

annuity offers consider¬

I

believe

tne

able

promise of at least partially
alleviating the problems created
by inflation and declining yields
from fixed-dollar investments.

the

impossible

to

state

with

yariable annuity investment mahcontract holder.
I believe skilled
sentative
stock

number

issues.

of

Most

^

«ublSs

WOIllH
would

have

a

confidence

likelihood

of

inflations

over

typically

retirement

lished

of

government

policies

to

maintain

high
employment
by
fostering low interest rates, main¬
taining farm commodity prices

and

adopting deficit financing are
generally recognized as inflationcontinuing
wages

labor

on

It is unlikely that the
pressure
for
higher

the

part

of

organized

be

can

fully
offset
by
greater productivity. Careful in¬
vestigation has indicated that the
holder

of

a

variable

annuity

would have fared
quite well dur¬

ing

inflationary

periods

in

New

of

Hampshire

behalf

the

sale

of

nrw

£-!CeS

ovp!

p

C°m-

certainly not

u

Some

institutions

period

of

A

As

noted

previously,

fixed-dollar

primarily

its

be

I

of

variable

as-

yields

investments,

bonds and
mortgages,
have declined
quite substantially
since the 1920s and
early 1930s.




little white space and many dif-

ferent provisions, options, and
terms of settlement, It is^clear
that the hfe insurance companies
a*"e trying to

to

of

<■

is

rise

in

hands

the

life

;been

stocks.

000,000 security portfolio in

com¬

ket

value,

is

securities.

common

sented 70%

57%

of

At

stock

tion*

to

pro»-

i d

e

more

a

fnr

the

mar¬

repre¬

of all securities. Divi-

30>

1955>

12

months

were

°Ck?

ended

June

$1,200,000,

over

one-quarter of the College's total

educational

Dartmouth's

usual among
schools,
The
new.

position

purposes.

is

privately

variable

not

un-

endowed

annuity

is

not

We

teachers have had
it
since 1952 in the form of the
Col-

lege

Retirement

Equities

when

offer

disadvan-;

surance

and

companies,

that

and

better

a

the standard

of

See,k thiS "eW

tained better than it has been by

for

are

fixed

the

of

which

forms

older

occupied

the entire field in past decades,

and

first

great

war

compatiies
above
Arthur R.

Upgren

Fund,

competence
of

for

investments.

successful

others

the

-*

•

—

•

because

they

of

are

"a

not

promoting

2^%"

performing

the

maximum

policy purchasers. For all too long
a
period, the life insurance comkind

avoided

which

useful
may

as

the

proposals

could

service.

was

'

_

a

.

great

eighteenth-century democracy. The last word

twentieth-century

on

Independence

constitutions
tries that

is

democracy

the

Socialist

of the Soviet Union and other

coun¬

liberated themselves from the power

of

capitalists and landlords."
*

*

*

of

expand

They

standard

"A state whose

history started with the struggle

to retreat

safe

amount of secure income for their

panies

act of

of

.r'

*

These

their economic function in
aggres¬

sively

in fact

was

nation against colonial

*

*

Declaration

"The

great and
companies
should

realms

independence

a

greatest colonial empire of the world—England."

have

staffs of great
the management

really not be permitted
into

all

for

of

war

oppression. From it starts the disintegration of the
•

this

their

themselves

saying

in

against colonial oppression is
its

leading classes into

a

now

transformed by

fortress of the old bank¬

rupt system of colonial oppression."—David Zaslav-

sky. Professional Propagandist for the Soviet Union.
These
clever

but
a

as¬

liv-

the

the; value

in

'The American
the

ih-

which

improved prospects for

better income

a

placed in the
fe

surance

insurance

naturally

was

rise

Bonds

income

people. Life
.insurance

the

.

for

all

form of protection will be main-

desirable

based

$30,-

This

of

price level not being

as

by

in

are

a

these

protection

all,

experimenta-

at the close of its last fiscal
year,

stocks.

this

supporting the-protection for the American pqo-

reason

have

the-- -proposed

very

.

College, for example,

of

nee<is °f

.n?eeJ,

wish

permit

,

Dartmouth

cost

who

those

and slJ|ch needs can be further

taSeous to me as a result of the ing of those who

case,

protection for
the American

mon

of terms

►

provisions.^Today

more^recently acquired j? hare^ full of *^*ich Hnej>ript,

« «srws «

matched,

the interest of

in

1955, had 57% of

minimum

^

annuities...

change

stantially

June 30,

a

fine Print

Surely this is the time to with-

'

nancial affairs have invested
sub¬
common

.

draw barriers standing in the way
of. sound, new plans for income

policies

*

<.

First
--

v
_

.

and

accordingly substantial

benefit-payment

generally considered to be rela¬
tively conservative in their fi¬

y

from

which

'

..

,<jC:

and

variable annuity plart '^y*
premium amount call pes

any

in

fixed

since

broadly

f1 reasonably close inebme far

extended

'

he

r

statement

a

proposals

varying
period

years.

.

There is double pleasure in this

pe¬

at
a

will

world

of a ^hcy of We msurance
my own father. That policy
mncfiv
with
white
filled mostly , with white

space

Moreover,

bonds.

pe¬

receive

for

to

un-

amounts-beneficiaries

A second

Administration of
Dartmouth College, Hanover,

time.

the

r^ationship between
Suv

some

levels

need

pensi#ns,

age

purchase of variable annuities is pie. such as the variable annuity

Business

will

benefits

stock market

to old

gain to the holder of the policy or
the variable annuity.
"

By ARTHUR R. UPGREN

where a variable
annuity
is purchased
by a single premium
the buyer

the long-term exceeds the
probability of declining prices. Estab-

forces.

the

would

,

Even

ary

^plo^ment com^Son?'etc.;

can
(

on

one

uv
by eiwucs r. Taft
Charles P. iwi

discovered the

requires that there be
with great benefit to all by
long-run economic growth in the the introduction of the variable
annuity.---:;
-

life^insurance companS

opportunity to make

any

atiu
ago

United States in order that there

/

payments
at- retirement.
this way the purchaser would
not be
unduly affected by stock

at

one

Ple only

Thev

buyer of the risks, as well as the
advantages, of a variable annuity.

In

prices

capabilities of
might

Here

up

will

high stake in main¬

riodic-

market

years
years

sume

of

Life

taining this confidence by care¬
fully advising each prospective

common

purchasers

variable annuities would pay
riodic premiums followed by

further

experience
price
inflation
in
the
ahead. However, I believe

20

^

direction.

Dean and Director of Research of
the
Amos
Tuck
School
of

agement would result in adequate
diversification
among
a
reprb-

assurance that we will

the

advantage of the

•

^iiiuuiixcs
companies nave aemevea considhave achieved L-onsin

,

Leonard E. Morri.sey

to kefit
sales force.

his

face

—

variable annuity. Buying on marwould be impossible for a

variable

years

are

{° deal witht the actuanal Prob- £hiciary with payT,"ts ™urchJne

ateent

,gin

the typ¬
period of

is

held

period

in

invest-

institutions

when

it

quote the classic statement made
a

Itaally,

or

crease

retirement

.p_art.?_f

These'dtngers arePSther'

a

pectancy, al¬
though it does,
of course, in¬

It

both

because

protection which is not as simple
as
apparently he thinks it must

'SSordiWVvanation iivL ntfward
record is a variation in an upward

w e

welcome

ical

,

general

in

superior

lieht

_

S3

Quite

unfavorable

would represent an instrument of

:

|XedUto d?vebrXngor0nfanuaregitno

expect-

a n c y.

,

be

for

extended

investments,
and increasing
life

.

Comi
Common stocks have

of

he

SK SW*
&toCKS ana aiviaenasupon uiein
XSwr HapSy teTng-rart was,;

_

wise

in-

then

for

„

life

has told

an

ceive to the extenfthat values of

that we
the future,

in

large

a

who

in

assuming

inflation

no

of

views the variable annuity in

annual dollar amounts
insurance agents would not feel
of payments, the beneficiary feels
compelled to make unwise sales
the advantage of larger share purthe variable annuity, dffers con- of variable annuities where it apsiderable promise of leading to P.eared that a prospective pur- chases in periods of declining markets and lesser share purchases in
greater
public
participation in chaser would be better served by
periods of booming markets. This
the expected benefits of a
grow- p°re life insurance or a conven¬
tional
ing economy.
annuity.
Life
insurance "equal dollar investment" princi-f

have

of

company

C0mm0n
This in my
iS
a
very important reason
"Nothing in this
permitting the sale of the vari-r
simpie again."
able annuity which is "variable'1

com¬

contracts.

is

me

surance

vlew

it

,

insurance

is,

tieS

a:

understanding

head

for

be

operates.

certain as

—

dollars

higher earning rate which over
long years does accrue to equi-

hive

wiU

of

'?v;

One

the

vari

a

number

ing.

my

protection

■

First there is

public,

most

that

In

living.

fixed numher

a

rather small comfort when it pur¬
chases a reduced standard of liv¬

this ^°tecti°n %th*

r

S

many.

.

the

in

we

R?tur„e,™™^uquli!elLUild
I believe;the advantages

quite

,

American

of

contrast, to have

(CREF).

difficulty in
plan would

the

...

standard

sus-

Dartmouth College, I

classics,

particularly those who would

difficulty

impels

Annuity Association;

ME* ?3.is
I had fre- one's retirement'
of

no

perceiving how
work. I
doubt
.

and

?! r^i 1° 1

capacity

protect American la.iiALxw with
families

ow.n rete™™tptowlhichoriginates with

intelligence,

languages and other subjects

The.s°eV men

which

reason

in academic life to

"l?*colle&e which provides that part of

opportunity to discuss the
plan with my associates, many of

These

second

person

surance

quent

are

certainly
in terms

of variable annuities is that

when the variable annuity plan

whom

it

protection

academic work already have these
variable
annuities
and
we
like
them. Through the Teachers In¬

go down as well as up.
I
believe such claims overstate the

In

but

view, our large and able
companies can do
job than they have done
and
the
variable
annuity is, a
studied, forward-looking step to
enable them to do a better job
insurance

aPPlica.ti°n ,for the sale °f dollars received

whereas

DartmouthWColWe

invest-

better

a

a

A

under-

may

public

therefore

such

were pledged so to try

the public would fail to
recognize
that
benefits
are
variable
and

?™J""i
level of

from

In my

life

wprp

are

a

ation.

lives

give

DaI?iciDantshere Were

college

era!

to

participants.

Some people have claimed that
the

their
1

•

larger income of reasonably
maintained purchasing power to

received

thprp

['

stitutional

Re¬

in

circumscribing
i

_1

_

"unvariable"

or

payments

received

by beneficiaries, the command
of purchasing
power
fell
as the price level rose.

almost

J

_

As

amounts.

entirely to ultragilt-edged investments, may be an
unirritating way to lead their in¬
"1 A

«r

College

unchanging
were

view of, the investment

narrow

Thursday, July 5, 1956

.

welVfJn other words, ments

horizons,

mem--choices

r-1

«

Annuity

Equities

25.000
25,000

great economic progress

have

same

study cov¬
70 years, the Teachers

plan has been well

But equally important, annuitants
have not shared at all in the very
we

insti¬

the

careful

a

of

common

actly

made.

ann„i

he

Tn

elation

r»

of

"

following his retirement

years

true

By LEONARD E. MORRISSEY

one

ignoring

introduced

tirement

a

riod

do
the

integrity of insurance companies should
they par¬
ticipate in such activity. It is the
potential of such abuse which
gives rise to our urgent request
that this legislation either be de¬
feated or consideration be post¬

T

Insurance
tion

yields obtainable from bonds

15

the

some

some

into

result of the

arise.

ering

anr,

present, this
present, tnis
between stoek yields and

proposed bills.
These bills may
very well open up a field in which
potential abuses by newcomers

question

volved, not only in the State of
New Jersey, but in the nation, as
a

After

spread

quite startling.
percentage
point in yields would produce an
annuity
approximately
20%
greater for an
individual
who
purchased an annuity by making
annual premium payments from
age 50 to age 65 and then lived

interest

public

A

bers.

For

their

it affected the retire¬

as

incomes

Korc?

times, sucn as at the
such
tne

Public

Serious

problem

for

.

.

at

Kremlin

mouthpieces

are

dangerously

twisting truth to make traps for fools,

he would

very poor

have

to

be

a

very

ignorant

man

observer to fall for this polemic.

or

v

Volume 184

Number 5548

.

The Commercial and Financial
Chronicle

..

(91)

The

Indications of

Business Activity
AMERICAN

AND

STEEL

Indicated steel operations

Week

July

8

Wfif

,

A

July

Age

42

oil

Crude

INSTITUTE:
condensate output—daily

and

gallons

Gasoline

(bbls.

output

(bbls.)

8

§2,314,000

;

2,380,000

-June 22

at————^.—y—

Residual fuel oil (bbls.) at

—June 22
June 22

.

Revenue freight
CIVIL

received

ENGINEERING

from

7,953,000
27,363,000

7,797,000
25,649,000

U.

S.

Private
f

Public

;

Y

1,762,000

(no. of cars)—June 23

COAL

7.696,000

7,563,000

180,725,000

181,487,000

183,510,000

164,471,000

24,583,000

23,793,000

20,699,000

29,132,000

87,793,000

84,996,000

72,027,000

96,338,000

38,050,000

37,319,000

34,787,000

45,584,000

1

(U.

coal

CIVIL

Pennsylvania

S.

7,615,000

BUREAU

GINEERING

Private

anthracite

(tons)—

(COMMERCIAL

AGE

State

■•j

steel

662,640

$415,928,000

$562,586,000

$439,115,000

390,820,000

277.673,000
161,442,000

Durable

110,078,000

Employment

38,630,000

METAL PRICES

(E„

&

Lead

(St.

Lead

Zinc

tin

INDUSTRIAL)

DUN

—

York)

Louis)

10,230,000

—

538,000

109

YY.'^Y131

All

U- S.

Government

,

All

51,364,000

642,000

117

103

■j'>>

,498,000

11,478,000

10,598,000

238

245

5.179c
<

5.179c

,

$60.29

5.179c

!Y

$60.29

f

\

U.

S.

$44.83

$47.50

$36.50

95.000c

13Y00C

•'

45.500c

36.550c

96.625c

94.875c

;

juiy

rY

16.000c

i

94.90

—July

.

16.000c

;
___

'

94.41

95.24

110.52

OIL, PAINT AND
1949

STOCK

DRUG

AV ERAGE

of

—

Odd-lot Yales

Number

REPORTER

f

of

AND

dealers

of

3

of

motor

106.04

109.97

Number

of

buses

Y

2.86

2.81

,

3.26

3.05

3.35

3.14

1

3.50

3.48
3.74

3.51

3.57

31

FOR

Total

round-lot

Short

YY

3.41

3 40

3.55

3.31

3.44

mY

3.45

'

3.22

3.39

414.5

235,162

,

239,176

108.72

106.76

Y.

STOCK

total

value

of
of

Total

9

1,053,127

1,093,393

1,451,531

$54,626,039

$55,850,219

$76,312,009

sales

1,158,592
4,235

ON

THE

N.

Y.

$40,421,355

$59,600,053

225,390

175,680

290,780

324,160

225,390

1*75,680

290,780

324Y 60

June

446,680

483,540

550,260

497,270

9

FOR

ACCOUNT

OF

$317.1

*$315.2

218.7

♦217.5

95.3

*94.4

88.9

58.1

*57.7

53.6

28.9

27.2

36.4

♦36.5

34.9

STATES

UNITED

—-

total

receipts,

industries.
__:

,

—_————

—

$298.9
204.6

*

contribution

special

for

in¬
5.7

—

5.7

5.1

.

7.3

6.9

♦49.4

49.0

29.0

28.7

18.2

18.0

17.6

302.5

•301.1

283.7

242

*235

*242

•245

♦249

272

*260

•263

income.—

Total

transfer

——

PRICES

RECEIVED

TURE
All

payments—

nonagricultural

—

income
FARMERS

BY

U.

DEPT.

S.

25.9

INDEX

—

AGRICUL¬

OF

1910-1914—100—As of May 15:

—

farm

products.,

<-

—

Feed,

560,780

598.300

12,823,970

14.787,060

Food

9,131,520

13,384,750

15,385,360

Fruit

on

the

1,484,550

1,227,600

1,712,550

255,650

265,900
1,176,950

350,340

1,355,130

1,533,700

1,442,850

1,705,470

1,856,140

1,824,060

June

282.700

178,150

354,410

17,700

23,400

48,000

192,950

367,300

340,100

210,650

390,700

=

U.

8

560,565

476,604

653,390

40,090

89,090

695,550

621,668

557,577

784,640

960,483

Net

tYY

2,327,815

1,882,354

2,720,350

2,894,039

328,750

323,690

462,830

June

2,119.088

1,887,387

2,417,980

of

railway

2,211,077

2,880,810

113.8

114.0

114.3

110.0

89.5

90.7

90.7

90.o

June 26

101 4

101.9

102.6

102.5

77.5

79.4

83.2

86.2

June 26

121.4

121.4

121.6

115.7

Slncludes 953,000 barrels of
fore'gn cr"de i^ins. §Based on
Jan
of 125,828.319 tons.
tNumber of
because of stee 1 strike.

1, 1956.
1, 1955 basis
 Plan. fFigures
Monthly Investment
delayed


OF U.

S, CLASS

180

*176

231

226

•258

$67,038,901

$98,564,474

18,862,622

18,480,137

85,901,523

117,044,611

I

Commission)—

Income

operating
;

income

Miscellaneous

3,328,433

June 26
and /foods

260

178

March:

income

Total

2,864,393

2,447,838

June 26
__

a^inst

-

ITEMS

deductions

Income

available
after

for

from

fixed

income—

charges

OF

:

farm

—

464,040

-*

than

eggs

INCOME

Month

Other
Tiima

__June 26

Meats

236

237

8^6,P8"

-r-June

and

(Interstate Commerce

RYS.

93,60u

517,487

100):

Farm

•235

20,540.212

—•.

227

$88,976,188

———

Wool

685,979

56,500
565,168

*

commodities

other

animals

—

246

251

products

products

Poultry

SELECTED

DEPT.

233

247

109,516,400

and

Income

—

436

511,810

sales

SERIES

♦278

463,810

-June

floor-

;

( l.947-49

Dairy

384,000

16,600

—

Livestock

Meat

-June

NEW

Tobacco

259

234
453

283

454

322,440

1,230,420

—-June

PRICES,

209

253

265

crops—.

240

"

*

floor—

the

—

Potatoes

June

—June

off

200

218

270
—_—
—

'—.—

266

185

229

233

hay—

and

275

192
226

—

grains
grains

Oil-bearing

1,486,070
-

initiated

fresh.

(

june

initiated

vegetables,

Cotton

;

427,710

8,703,810

jUne

Commodity Group—

_

100,127

2,205,753

MEM¬

sales

as

104,458,956

76,341

2,334,849

7.3

9,754,320

Tune

'Revised figure.

102,898,554

2,371,587

49.6

430.080
w

June

Jan.

104,115,390
70,122

211,896,052
i—

46,746

COMMERCE)—Month

industries

labor

10,184,400

—

of

927,963
182,829,779

income-

Commercial

June

sales

commodities

895,710
224,681,678

shares

producing

employees'

v

Total sales

All

326,997

869,672

balances—.

industries

NUMBER

323,500

products
Processed foods

$2,731,191

33,012

360,516

Total

$61,712,211

June

TRANSACTIONS

—

$2,820,776

37,715
337,406

1.228.618

V

_____

LAPOR

$2,847,308

—

S

bonds__

IN THE

surance

STOCK TRANSACTIONS
MEMBERS < SHARES):

.

All

U.

STOCK

sales

WHOLESALE

313

May

Proprietors and rental income—.—-^——
Persona) interest income and dividends..

6,380

1,154,357

June

sales

Other

In

credit

free

OF

salary,-

and

Other

1,234,998

6,078

774,159

——June

•

purchases

Short

371

252

780,237

$43,655,436

round-lot transactions for account of members—

Total

127,941

362

1

(in billions):

personal

Wage

$70,676,763

4.906

Total sales
Total

April

Commodity

1,374,389

9

847,667

sales

01her

721,139

101,081

28.9

banks

listed

Government

June

purchases

Short

849,393

552,881

—,—_

customers—,

listed

(DEPARTMENT
of

Less

842.761

sales—

transactions

of

borrowings on U. S. Govt, issues.
Member borrowings on other collateral—__

Service

sales

purchases

Other

654,333

margin accounts—

in

customers'

PERSONAL INCOME

,•

v

;

SALES

of

Distributing

Total sales

Other

570,486

purchases)—1

sales

Short

26,025

Y

;

.

to

and

value

Total

Short sales

Total

♦27,095

ROUND-LOT
OF

transactions

27,266

$24,159

96,114

Member

280,600

108.05

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
of specialists in stocks in which
registered—
Total purchases

Other

$43,264

,

258,244

285,603

,

108.07

N.

hand

Market

403.8

June 29

O'her ^ sales

Other

19,105

*$47,433

474,010 Vj"

'

INDEX—

ON

omitted):

Market

Transactions

_

^

$47,927

_____—

EXCHANGE—As

extended

on

Total

3.17

412.1

Y

Credit

99

sales

ROUND-LOT

•>.*

•

♦20,001

T

cars—

customer's net debt balances--——

Cast

June

ACCOUNT

••

FROM

—-———-

STOCK

(000's

Total

525,731

__.

AND

'•

*$27,432

trucks—_—

Member firms carrying

3.23

3.77

3.56

YORK

NEW

3.23

99

shares

EXCHANGE

^

3.50

3.46

490,043

—

1

3.43

229,362

sales.

STOCK

SALES

(Vehicles———

passenger

497,608

sales

ROUND-LOT

of

of

2.93

414.7 '

purchases by dealers—

Number

"

*?

S.—AUTOMOTIVE MANU-

U.

of

—

shares—Total

IN

number

Number

EXCHANGE COMMISSION:

sales

Round-lot

TOTAL

PLANTS

Number

443,477

sales

Other

i

,FACTURER'S ASSN.—Month of May:
Total

107.44

99

"

Short

$5,645,000
"

y y

.

U

—

FACTORY

105.69

3.46

Round-lot sales by dealers—
Number

i

$27,722

—

VEHICLE

109.06

289,328

:

*

$4,612,000

••

-——_

103.30

June

short

540,000

20,205

105.17

„

97

PRICE

(customers'

other

'

—i-.

105.00

..

281,176

__:

Customers'

-

103.13

104.83

.June 23

SPECIALISTS

orders—Customers'

Dollar value

'

103.97

June 23

shares

Customers'

*

■'

-

108.88

100.16

3.78

purchases by dealers (customers' sales)—

Number

•-

104.48

June 23

_

SECURITIES

by

of

Dollar value

Odd-lot

-

106.74

99.68

;

period

10(»

—

DEALERS

EXCHANGE
«Y

Y

June 23

4

*

;

106.56

104.14

TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

LOT

.

Y'"' 108.34

106.56

——

end

$4,208,000

'• •'

\

INVENTORIES AND SALES

OF

Sales

MOTOR

•

_

at

2,602,000

108.88

3.26

July

—.

Y

(tons)

1,022,000

.

ASSOCIATION:

(tons)

orders

$3,003,000
587,000

$2,503,000

527,000

April

COMMERCE) NEW: SERIES—
Month of April (millions of dollars):
Inventories—: "j

112.19

3.36

July

INDEX

.Percentage of activityunfilled

of

.__—

>' %

;

(DEPT.

95.81

104.83
108.34

3.47

r

Orders received (tons)
Production

Month

Durables

3.25

July

———

.y

6,841,000

Nondurables

2.89

July

__

.MOODY'S COMMODITY

—

——.

—.

Y'

14.P00C

105.86

Group

.NATIONAL PAPERBOARD

16,337,000
9,496,000

6,976,000

12.500c

July

.

Public Utilities Group
Industrials Group

'

*

9,783,000

6,935,000

PURCHASERS—INSTITUTE

INSURANCE

15.000c

July

—

;

16,759,000

9,706,000
——,—-

omitted):

15.800c

::.Y. 104.66

July

Bonds

.

LIFE

13.500c

102.96
-

July
;

jj.

150.1

AVERAGES:

A

Railroad

*158.2

16,641,000
;

goods

INSURANCE

15.800c

104.66

July
July

.__

104.1

155.5

—

goods

13.500c

.

>

3.36

Baa

5,353,000

'106.C

Average=100)—All

Total

Aa

t"

7,520,000

5,442,000

Avge.=100)—

manufacturing

Total

35.700c

140.400c

94.750c

id&£00c

.JUne 27

45.075C

40.400c

;

f

16.000c

—Jiine 27

July

.

12,873,000

7,671,000

105.0

(1947-49

MANUFACTURER'S

_

Average corporate
Aaa

..

"

(1947-49

.

844,000

!

45.450c

38.825c

Group:

Government

:

Industrial____—

.

—June 27

_

at

DAILf

-Y

-

goods
Indexes

Indexes

(000's

-

——Jqne 27

YIELD

13,113,000

5,399,000

of

workers)

$56.59

99.52

BOND

12,985,000

SERIES—Month

(production

goods

Durable

4.797c

$60.29

Y

$44.83

June 27

;

Group

MOODY'S

187,667

DEPT.

number of employees in manufac¬
turing industries—

J'. *•/•••

at_

Group

192,593

Estimated

231

104.14

Utilities

587,991

128,617

manufacturing

OF

Y;'Y'!

249

-

Public

775.658

639,653

10,138,000

108.52

Industrials

1,105,886

832,246

7,586,000

S.

manufacturing

9,535.000

404,000

LIFE

1

_

10,120,000
y

*

Railroad

PAYROLLS—U.

LABOR—REVISED

Nondurable

June 27

—

Bonds
—

AND

Nondurable

.MOODY'S BOND PRICES DAILY AVERAGES:

■Y Average'Corporate-

$1,881,544

1,287,524

597,135

_

$2,119,770

895,828
725,752

——

_

manufacturing

All

June 23

-June 26

_

;

171,766,000
133,136,000

10,280,000

595,000

Y

June 26

—-

at_.

Louis)

—

'

at__

(East St.

24,835,000

June 28
J

J. QUOTATIONS):

M.

(New

$1,621,580

of

_u__

municipal

EMPLOYMENT

&

_

~

ton)

York!

(New

43,905,000

--June 26

Electrolytic copper—
Domestic refinery at__
Export refinery -at.
Straits

217,352,000

154,671,000
261,257,000

A'"Y: '<*V

lb,).

gross

$78,300

___

664,762

June 30

AND

Pig iron (per gross ton)—

Y Scrap steel (per

$83,800

$2,837,000

.

INC.—

(per

and

651,826

$443,517,000
305,516,000
138,001,000
113,166,000

June 23

.

COMPOSITE PRICES:

Finished

11,800
23,000

EN¬

—

Month

—

construction

Payroll

"

BRADSTREET,

construction'

Public

661,510

Y,

June 23

—

IRON

CONSTRUCTION

NEWS-RECORD

June (000's omitted):
U.
S.
construction

OF MINES):

lignite (tons)

ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)

Y

$43,500

12.600

23,800

794,427

June 28

.

'EDISON

FAILURES

$47,400

12,600

Total

788,297

June 28

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1941-49 AVERAGE
100

.

$47,900

._

ENGINEERING

801,431

June 28

—

and

J,

23,800

799,461

June 28
.

municipal

OUTPUT

dollars):

_;

May:

—

Bituminous

Ago

April

_

OF

June 28

construction

Federal

^

Year

Month

1,946,000

11,522,000

ENGINEERING

—

construction

and

of

25,850,000

2,034,000
12,044.000

12,121,000
8,042,000

.

Previous

COM¬

Federal

construction

State

of

OF

SERIES —Month

$84,400

Retail

NEWS-RECORD:
Total

NEW

!

1,954,000

12,487,000

•*

of that date:;

7,464,000

*27,263,000

June 23

connections

CONSTRUCTION

INVENTORIES—DEPT.

(millions

6,636,700

June 22

ASSOCIATION OF AMERICAN RAILROADS:
*.
Revenue freight loaded
(number of cars)

,

7,070,800

118,087,000

June 22

■f

BUSINESS

2,073,000

7,065,650

—

Distillate fuel oil (bbls.)

either for the

are

are as

Latest

7,055,850

22

of quotations,

cases

Month

85.9

Wholesale

(bbls.)
-June 22
fuel oil output (bb'ls.).
;■—___June 22
Stocks at refineries, bulk terminals, in transit, in
pipe lines—
Finished and unfinished gasoline (bbls.) at
June 22
Kerosene (bbls.) at__

-•>.

in

or,

Manufacturing

-June

Kerosene output (bbls.)
Distillate fuel oil output
Residual

96.7

MERCE

June 22

stills—daily average (bbls.)

that date,

Age

Y

of

each)

to

runs

average

on

production and other figures for tha

cover

Dates shown in first column

Year

§94.0.

AMERICAN PETROLEUM
Crude

month available.

Month

-

ingots and castings (net tons)

or

month ended

or

Previous

INSTITUTE:

(percent of capacity).

Equivalent to—
Steel

week
Latest

IRON

following statistical tabulations

latest week

31

Net

annual

orders

not

capacity of
reported

128,363,000 tons

since

introduction

4,384,314

112,660,297

50,506,606

82,107,280

4,365,044

3,432,660

4,069,027

70,078,196

—•—

47,073,946

78,038.253

Depreciation (way & structure & equipment)

45.401,420

45,282,986

.44,212,102

Federal

39,234,167

24,371,175

40,777,952

21,135,676

36,122,378

20,088,610

2,918,813

13,441.936

4,094,127

income

Dividend

taxes

appropriations:

common

On

Stock

preferred

as

of

4,468,619
81.432,904

74,443,240

charges

—

income

On
new

fixed

deductions

Other

4,441,058
105,075,342

Ratio

of

income

stock
to

fixed

charges

3.43

2.63

3.69

I:

Financial Chronicle

Tht Commercial and
32

.

T. Thursday,

July 5, 195f

(92)
.jf

i

#■»*#•

t"

•

if INDICATES

Abundant Uranium,

Registration

Now in

Securities

Halsey, Stuart & Co. Inc.

First Boston Corp. and

Colo.

Inc., Grand Junction,

(jointly);

(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium

Bids—Expected to be received
up to 11:30 a.m.
(EDT) on July 10 at 195 Broadway,
New York, N. Y.
/
'«
-Y-YY--;

M.

Co., Los Angeles, Calif.
l
b
June 15 filed $4,099,300 of 5% subordinated debentures

Feb. 23

Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo.
' .

Supply Mfg. Co., Inc.

Aero

UnderwritersMargolis and Leo A. Strauss, directors of the
"•
..,-YY
••'/ Y'-//Y 'YY"- Y

Office—611

Henry M.
company.

Allied
June

West

&

Oil

Main

Pa.

Corry,

St.,

(letter of notification) too,000 shares of capital
(par 10 cents). Price—$2 per share/ Proceeds—
the acquisition of oil and gas leasehold interests

working capital. Office — 403 Wilson Bldg., 2601
Main St., Houston, Texas,
Underwriter — Muir Invest¬
ment Corp., San Antonio, Texas.; D. N. Silverman & Co.,
New Orleans, La.; Texas National Corp., San Antonio,
and

Charles B. White & Co., Houston, Texas.;
Sloan Co., Dallas, Texas..

Texas.;
Reed

and

and

Co., Milwaukee, Wis. (7/19)
June 29 filed $3,000,000 of sinking fund debentures due
July 1, 1976. Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans.
Underwriter—Robert W.
Baird & Co., Inc.. Milwaukee, Wis.
(Louis)

if Allis

Co., Milwaukee,

Wis.

be

to

are

offered

holders at the rate of one share for each
Price

To

—

Underwriter—None.

bank loans.

repay

Proceeds

supplied by amendment.

be

Public

Finance

To

/; :;Y, Y'YyYY

■

.

Phoenix,

Co.,

—

Ariz.

'

16 filed 78,006,081 shares of common stock to be
for subscription by holders of life insurance

Sept.

REVISED

Big Horn Mountain Gold & Uranium Co.
(letter of notification) 9,300,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.
Proceeds—To be used for exploratory work on mining
mineral

Office—1424 Pearl Street, Boulder,Boulder, Colo.

properties.

Underwriter—Lamey & Co.,

Colo.

Birnaye Oil & Uranium

and

1, 1964)

ITEMS

ISSUE

PREVIOUS

Feb. 23

..

share held, while the common shares
for subscription by common stock¬
10 shares held.

for each preferred

Co., Denver, Coio.'

(letter of notification) 1,000,000 shares of class
A common stockH(par five cents). Price — 10 cents per
share. Proceeds — For mining expenses. Office — 762
Denver Club Bldg., Denver, Colo. Underwriter—BirkenApril 6

& Co., Denver. Colo.

mayer

;

.

if Black Hills Power & Light Co.
June 26 (letter of notification) 11,700 shares of common
stock (par $1) to be offered for subscription by stock¬
holders. Price—To be supplied by amendment. Proceeds

Office—Rapid City, S. D. Un¬
YY' YYY"Y'YY^Y.YYY YY " YYYY''YY

—For construction costs.

offered

derwriter—None.

policies issued by Public Life Insurance Co. Price—20cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
aalesman of the insurance firm.
/YY:

if Blue Bird Mines, Inc. of Pinal County "
June 25 (letter of notification) 290,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬

■

Armstrong Rubber Co.

$9,250,000

filed

31

May

subordinated

15. 1971.

acquisition of new plants and equipment and for work¬
ing capital. Office—West Haven, Conn. Underwriter—
Reynolds & Co., Inc., New York.
Associated

Underwriter—

Y a/YY--' YfYYYYY Yyy /Y/"' -:YYY Y Y^YYYY

if Boone County Coal Corp., Philadelphia, Pa.
YY- (7/iD :;';V:/Y..;yY-v;Y/,y.Y;Y/:Y:Y YYY
:YY!Y
June 25 (letter of notification) 10,000 shares of common

offered first to common stockholders
rate of one new share for each

stock (par $5) to be
of

June

record

25

at

eight shares held. Price—$25 per share.
working capital.
Underwriter—Janney,

Proceeds—For
Dulles & Co.,

;YYYY-YYY*';Y Y;Y

Inc., Philadelphia, Pa. ■-

Seattle, Wash.

Inc.,

Grocers,

Address—Superior, Ariz.

ing expenses.
None.

(7/10)
of convertible

Price—100% of principal
amount. Proceeds—Together with $7,750,000 to be bor¬
rowed from insurance companies, for construction or

(7/19)

47,729 shares of common stock (par $10)
be offered for subscription by common stockholders

..

(convertible until July

1986

1,

debentures due June

(Louis)

if Allis

July

Arizona

14

v

63,614 shares of common stock (par $1). The debentures
are to be offered for subscription by preferred stockhold¬
ers
at the rate of $10 principal amount of debentures

Corp.

Industries

stock

J?or

.

Arden Farms

due

-

v-

103,903 shares of common
stock (par $1) to be offered to stockholders on a basis
•of one new share for each 4% shares held. Price—$2 per
share.
Proceeds—For relocating machinery and equip¬
ment in plant, additional equipment and working capital.
(letter of notification)

June 4

Stanley & Co.

Morgan

ADDITIONS

SINCE
•

* California Interstate Telephone Co. (7/16-20)
June 28 filed 50,000 shares of 5
% cumulative con¬

sion and working
&

capital. Underwriter—Robert W. Baird
Co., Inc., Milwaukee, Wis.
'
V
YY

April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds. Price — Of
stock. $50 per share; and of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.
Underwriter—None.

•

Altec

if Canadian Husky Oil Ltd., Calgary, Alta., Canada
June 29 filed 71,363 shares of 6% cumulative redeemable

29 filed

June
to

July 18, 1956 at the rate of one new share for
Price—To be supplied by amend¬

•of record

each five shares held.

Proceeds—To

ment.

repay

bank loans, and for

expan- *

Companies, Inc., New York (7/17)
June 26 filed 100,000 shares of capital stock (par $1), of
which 35,000 shares are to be offered for account of the
company and 65,000 shares for certain selling stockhold¬
ers.
Price—To be supplied by amendment. Proceeds—
To be advanced to Altec

Lansing Corp., a wholly-owned
subsidiary, to be used for its expansion program. Under¬
writer
Dean Witter & Co., San Francisco and New
York.'
-'ff
'
—v i,.; r".
"I Y.¬
—

.

American

Horse

Racing Stables, Inc.' *"
-r
3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds
For organizing and operating a racing stable.
Office—Virginia and Truckee Bldg., Carson City, Nev.
May 11

Light Co. (7/11)
June 20 filed 88,280 shares of common stock (par $10)
to be offered for subscription by common stockholders
1956 on the basis of one new share
for each 10 shares held; rights to expire on July 31,
1956. Price—To be supplied by amendment. Proceeds—
To reduce bank loans and for new construction. Under¬
of

Underwriter—Columbia Securities Co., Inc.

American

of California,

Y

Beverly Hills, Calif.

record

&

Co.

Insurors'

Development Co.
Feb. 10 filed 400,000 shares of common stock (par $1).
Price
$2.50 per share. Proceeds—=To expand service
business.
Office
Birmingham, Ala.
Underwriter —
Odess, Martin & Herzberg, Inc., Birmingham, Ala.

10,

York; and Courts
Co., Inc., both of

filed

20

'

:

•

,

Atlanta Gas
June

Robinson-Humphrey

The

and

Atlanta, Ga.

:

-

Y

:

:

Light Co. (7/17)
$5,000,000 of first mortgage bonds
reduce bank loans and for

due

Proceeds—To

1981.

construction.

Underwriter—To

be determined by

new

com¬

bidding. Probable bidders: Halsey, Stuart &
Shields & Co.; The First Boston Corp.; Dean
Witter & Co. and Lazard Freres & Co. (jointly). Bids—

petitive
Co.

\

July

writers—The First Boston Corp., New

(letter of notification)

—

/ £ ■,

Gas

Atlanta

Inc.;

Expected to be received up to 11 a.m.
17 at 90 Broad St., New York 4, N. Y.

(EDT) on July

Atlantic Oil Corp.,

American

Machine &

Foundry Co.
June 1 filed $10,897,000 of 4*4% subordinated debentures
due July 1, 1981, being offered for subscription by com¬
stockholders of record June

mon

27, 1956, at the rate of
$100 of debentures for each 25 shares of stock then held;
rights to expire on July 11. Price—At par (flat). Pro¬
ceeds—To reduce bank loans and for working capital.
Underwriter—Union Securities Corp., New York.
American Tar & Turpentine Co., Inc.
June 5 (letter of notification) $200,000
principal

amount,
20Vz-year 5%% subordinated debentures due May 15,
a976 and 20,000 shares of common stock
(no par) to be
offered in units of 10 shares of common stock and
$100
of debenture.
Price—$110 per unit. Proceeds—For in¬
stalling a new plant in Winfield, La. Office—219 Carondelet St., New Orleans, La.
Underwriters
Scharff &
—

?»rS' *nc-' anc* Nusloch, Baudean & Smith, Inc., both

*

of New Orleans, La.
American
June

18

Telephone & Telegraph Co. (7/10)
filed $250,000,000 of
34-year debentures due

July 1, 1990.
associated

Proceeds—For advances to subsidiary and
companies; for investments; for extensions,
improvements to properties; and for gen¬

additions and
eral

corporate

mined

by

purposes.

competitive

Underwriter—To

bidding.

Probable

be

deter¬

bidders:

The

Tulsa, Okla.

April 30 filed 2,000,000 shares of common

general corporate purposes.
named by amendment.
and

•

Underwriter

To be

—

\

:

Philadelphia, Pa.
$600,000 of 6% convertible subordinated
due June 15, 1968. Price—100% of principal

Credit Corp.,

Atlas

filed

11

June

stock (par $1);

Proceeds—For working capital

Price—$1.50 per share.

debentures

Proceeds—To

amount.

retire

indebtedness

of the

com¬

pany to its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,

and
•

V
Feb. 28 filed 9,890,095 shares of common stock (par $1)
being issued pursuant to an agreement of merger with
this corporation of Airfleets, Inc., Albuquerque Asso¬
ciated Oil Co., RKO Pictures Corp., San Diego Corp.
and Wasatch Corp. on the following basis: Four shares
for one of Atlas common; 2.4 shares for one share of
Airfleets comrhon; one share for each share of Albu¬
querque common;
four shares for each 5.25 shares of
RKO common; 2.4 shares for each share of San Diego
common; 13 shares for each share of Wasatch cumulative
preferred; and 1.3 shares for each share of Wasatch
Corp.

The

registration statement also covers 1,250,000 shares of 5% cumulative preferred stock (par $20)

common.

which will become issuable upon and to the extent that

shares of

common

preferred stock.
Statement

24.

Automation

stock

are

convertible

into

share*

Stockholders approved merger

effective

April

Industries

(par $20). Price—To be sup¬
Proceeds—To discharge current

stock

amendment.

aggregating $1,000,000. Un¬
Angeles, Calif.

Staats & Co., Los

derwriter—William R.

preferred stock (par $50) and 1,069,231 shares of common

to be offered in exchange for the out¬
of Husky Oil & Refining Ltd. on,the
following basis: One share of Canadian Husky common
for each Husky Oil common share of $1 par value and
one share of Canadian Husky preferred stock for each
stock .(Par

standing

$1)

stock

Husky Oil 6% cumulative redeemable preference share
of $50 par value.
The exchange will become effective
if, as a result of the exchange offer, Canadian Husky
will hold at least 90% of the shares of each class of
stock of Husky Oil; and Canadian Husky reserves the
right to declare the exchange effective if less than 90%,
but more than 80%, of such shares are to be so held.
•

Canadian

ment.

(7/18)

supplied by amendment.

Price—
Proceeds—For invest¬

Investment Advisers—Van

Strum & Towne, Inc.,

be

To

International Growth Fund Ltd.

15 filed 625,000

June

shares of common stock.

York, and Mutual Funds Statistical Surveys Ltd.,
Montreal, Canada. Underwriter—Hayden, Stone & Co.,
New York.
"-Y
v V-Vv V
Y. •'/Y:':Y YyY

if Carver Loan & Investment Co., Inc.
22
(letter of notification)
15,000 shares of 6%
cumulative preferred stock (par $10)
and $150,000 of
five-year 6% subordinated $10 renewable debentures to
be offered in denominations of $10 and $100 each. Price

June

—At

par.

Proceeds

Office—1910

W.

—

For general corporate purposes.
Philadelphia, Pa. Un¬

Columbia Ave.,

derwriter—None.

if Champion Paper & Fibre Co.

(7/23-27)

July 3 filed $4,000,000 of debentures due July 15,
Price
To be supplied by amendment.
Proceeds

on

of

1981.
—

To

of term notes currently outstanding
and for general corporate purposes/ Underwriter—Gold¬
man, Sachs & Co., New York.
prepay

$3,500,000

Chesapeake

Shores

Country

Club,

Inc.

May 29 filed 5,000 shares of common stock, of which it is
the company's intention to offer for sale at this time
only 2,500 shares. Price—At par ($300 per share). Pro¬
ceeds
To construct and operate a recreation resort.
—

Office—Upper Marlboro, Md.
C.

I. T.

Underwriter—None.

Financial Corp.

May 17 filed $75,000,000 of debentures due June 1, 1971.
be supplied by amendment.
Proceeds—Pri¬
marily for furnishing Working funds to company's sub¬
sidiaries.
Underwriters—Dillon, Read & Co. Inc., Kuhn,
Loeb & Co. and Lehman Brothers, all of New York.

Price—To

Offering—Temporarily postponed.

May

20.

Corp., Washington,

D. C.

May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Harry Kahn, Jr., of Washington, D. C., is President and
Treasurer.

preferred

by

short term .bank borrowings

—

Weill, Blauner & Co., Inc. of New York.

Atlas

plied

New

—

—

vertible

Sparks Buying Action!
No other advertising

medium reachbs

as many

of Mid-

,

if Axe Science & Electronics Corp.
June 27 filed 2,000,000 shares of capital stock. Price—At
market.
Proceeds—For investment.
Office—Tarrytown,
N. Y.

Beta Frozen Food Storage, Inc.

New York.

Boston

Philadelphia

Pittsburgh

San Francisco

Private Wires




to

all

-

offices

Chicago

Cleveland
. — -

Y■

For facts that show how you can

this rich and
or

nearest

sell

more

securities in

growing market, call your advertising counsel

Chicago Tribune advertising representative today.

May 14 filed 15,000 shares of preferred stock (par $50)
'and $100,000 convertible debenture bonds.
Price — At

Proceeds—For capital expenditures and working
capital. Office;—Baltimore, Md. Underwriter — None.

par.

William H. Burton is President of company.

-jw

^

Number 5548

Volume 184

-

.

Colonial

of

•

of

additional

1966 to be offered for subscription by holders
stock at the rate of $1.30 for each share

1,

(Each

;

shares of

General

working

Proceeds—For

amount.

capital,

.•

June 21

stock

cents).

stock

of

v

Commodity Holding Corp.
June 6 (letter of
notification) 3,000,000 shares of

Columbia

:

Co.

Office

Houston,. Tex.

—

Offering—Temporarily

stock

be

offered

eral funds

initially

share.

per

and for

stockholders

to

—

Commonwealth, Inc., Portland, Ore.

common

March 23

(letter of notification) 5,912 shares of 6% cu¬
being offered for subscription
by stockholders of record April 16, 1956 on a pro rata
basis; rights to expire on July 2, 1956. Price—At par ($50
per share).
Proceeds — For working capital. Office—
Equitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore
Underwriter—None.
;
mulative preferred stock

$2).

Proceeds—To be added to gen¬

expansion of business.; Office—5579

Pershing Ave., St.- Louis, Mo.

Underwriter—Edward D.

Jones & Co., St.

.pool and related activities, bowling alley, site preparation

;

Louis, Mo.

':

;

,

■

/
com¬

Price—10 cents per share.

Proceeds—To trade

(7/9)

(par

(par five cents).

in commodities. Office—15
Exchange
Place, Jersey City, N. J. Underwriter
Southeastern
Securities Corp., 335 Broadway, New York.

suspended.

(letter of notification) 50,000 shares of

to

.

filed-500,000 shares of common stock/par 10
Price—$1' per- share. Proceeds—For swimming

5

—

Commercial Life Insurance Co. of Missouri

Price—$5.50

Inc.

^Colorado Springs Aquatic Center,
June

•

construction,

purchase of Dover plant, etc. Office—90 Broad St., New
York, N. Y. Underwriter—None.
: .
/

including

Insurance

Life

Underwriter—None.

18
Price—At 100% of principal

stock.)

common

investments,

convertible into

debentures is

of

$100

Investment Corp.

mon

common

held.

Columbia General

33

Commodity Fund for Capital Growth, Inc.
May 28 (letter of notification) 60,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For trad¬
ing in commodity future contracts. Office
436 West
20th St., New York 11, N. Y. .Underwriter —
Arthur N.
Economu Associates, New York, N. Y.

March 29 filed 100,000 shares of common stock (par $1)
to be offered for subscription by stockholders only. Price
—A maximum of $4.50 -per share.
Proceeds—To make'

Utilities Corp.

(letter

amount

June

of common stock (no par)
the company's "Restricted
Employees" to certain em¬
its subsidiaries.

notification) $109,245.50 principal
of 6% convertible subordinate debentures, due

4

(93)

including parking, and land cost ($95,000). Underwriters
—Arthur L. Weir & Co., Colorado Springs, Colo.; and
Copley & Co.

New York

it C. I. T. Financial Corp.,
461,900 shares
to
be- "offered
pursuant to
Stock Option Plan for Key
ployees of the company and

June 29 filed

June

The Commercial and Financial Chronicle

.

.

Connecticut Water Co.,
Clinton, Conn. (7/17)
filed 45,000 shares of common stock
(no pair).
be supplied by amendment.
Proceeds—To¬
gether with funds from private sale of bonds, to be
used to purchase water
properties and franchises of
Connecticut Light & Power Co.
Underwriter—Putnam

June 25

ew
July 6
.(Shearsonr;Hammill

Radalite

364,280

Co.)

&

.

t

(Vickers

.

,

Brothers)

Kansas Power

^

Common

(The

.

&

Brothers)

Co., Inc.. .Com.

$300,000

&

Light Co.

First

Boston

Common

(Offering

Common

to

stockholders—no

Common

underwriting)

42,000

/

Cement

Superior

Oil

15 filed 300,000 shares of
cents), of which 100,000 shares

shares

(Edward

^

D.

Jones

:

Bond

Indianapolis

••

Rare Metals Corp.

'

Wheland
*'
'■

Weld

White,

El

of

Gas

Natural

Western

'

Co.

and

by

Wheland Corp. „—
>•••>.' (Hemphill, "Noyes & Co.;.Courts & Co.;
Securities

:

;

Debentures
Co.,

&

V

Inland

Inc.)

Co.,

Co

Steel

.'(Dominick

:/v

t

.

Common

Dominick

&

Stevens (J. P.)

(Goldman,

■.

•.*•

—Common

Ball,

and

Burge

&

Kraus)

& Co., Inc

:

,\"1;

$50,000,000

Co.)

&

North American Coal Corp
♦:

I,

Loeb

Sachs

July

_

250,000

shs.

___Debentures

&

$30,000,000

Co.)

.

(Monday)

23

.

(Tuesday)

(Goldman,

American Telephone & Telegraph Co...Debentures

Sachs

&

Debentures

Co.)

:r.

11:30

(Bids
-

;

'

V

-

$250,000,000

EDT)

a.m.

Rubber -Co.

Armstrong

(Reynolds

,

& Co.,

(Van

Alstyne,

(Baker,

Noel

Co.)

&

Illinois Power

Common
Leeds

&

-''-V

Sperry Rand Corp.

—1

——

Tennessee
<Stone

.

,■

Transmission

Gas

Securities

Webster

&

Co..

...Common

Barncy( & Co.)

(Kidder,

■

Boston

Boone

Dulles

&

Co.)

115,000 shares

$30,000,000

Peabody & Co.)

and Smith,

Research

(Paine,

/

(The

July 12

Rico
First

Water

Boston

Consumers Power Co
(Bids

Ira

&

Weld

(Bids

and

B.

Co.)

July 16
R.

G.

Becker

&

&

July
Altec

by

&

Illinois

Bell

(Offering

stockholders—no

to

Atlantic

Gas

Witter

100,000

Co.)

& Light

(Bids

Connecticut

11

Water
(Putnam

Air

Lines,

(Bids

$570,000

Co.)

100,000

Bonds
EDT),

&

$5,000,000

45,000

125,000

a.m.

EDT)

International

(Bids

shares

Co

Ohio Power

Higginson

Lynch,

Corp.;

Pierce,

A.

G.

Fenner

Fund, Ltd.—Com.




Beane)

Co.,

Inc.;

325,711

be

Debentures
$30,000,000

invited)

17

&

and Merrill Lynch,
Pierce, Fen¬
Beane, all of New York and Chicago.

Cooper Tire & Rubber Co., Findlay, Ohio

June 6 filed

97,950 shares of common stock (no par) be¬
ing offered for subscription by common stockholders on
as

basis

of

of June

1%

new

shares

19, 1956 (with

for

each

two

shares

held

oversubscription privilege);
rights to expire on July 12, 1956. Price — $10.50 per
share.
Proceeds—For working capital.
Underwriter—
Prescott & Co., Cleveland, O.
an

* Copeland Refrigeration Corp.
(7/23-27)
July 2 filed 12^.000 shares of common stock (par $1).
Price—To be supplied
by amendment.
Proceeds—For
capital expenditures and working capital. Underwriter

Mining & Milling Co., Inc.

March 8 (letter of notification) 575,000 shares of common
Price—50 cents per share. Proceeds—For mining

Office

expenses.

Springs, Colo.
Denver, Colo.

—

1902

Underwriter

East
—

San Rafael, Colorado
Skyline Securities, Inc,

11

Bonds
EDT)

a.m.

(Bids

Minerals Corp. (Texas)
(letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—To repay bank loans, and for expansion and
working
capital.
Underwriter — Lepow Securities Corp., New
York.

a.m.

EDT)

and Merril

shares

June

Edison
(Bids

to

be

invited)

$10,000,000

Lines, Inc., Atlanta, Ga.

(7/17)

filed 125,000 shares of common stock (par $3).
Price—To be supplied by amendment.
Proceeds—For

Atlanta, Ga.

purposes.

Underwriter—Courts & Co.,

.

Land

&

Marine

Construction

Co., Inc.

(7/18)

May

$6,000,000

(Tuesday)

Co.—1——

Air

19

Devall

$28,000,000

16

(letter of notification) 150,000 shares of com¬
(par $1). Price—$2 per share. Proceeds—For
of notes, to purchase and equip three boata

stock

payments

*

Metropolitan

(7/16)1

Dalmid Oil & Uranium, Inc., Grand Junction, Colo»
April 16 (letter of notification) 2,700,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses. Office—1730 North 7tk
Street, Grand Junction, Cclo.
Underwriter—Columbia
Securities Co., Denver, Colo.

mon

13

Columbus, Ind.

100,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To cer¬
tain selling stockholders. Underwriter—A. G. Becker &

.Preferred
11

Offering—Temporarily postponed.

general corporate

(Wednesday)

—

November
Common

Becker &
&

A. G. Becker & Co. Inc.

Delta

(Tuesday)

Ohio Power Co

625,000 shares

Controls Co. of America.

to

October

$40,000,000

Growth

Bonds
$10,000,000

Columbia Gas System, Inc

(Wednesday)

(Hayden, Stone & Co.)

(Lee

Bonds

$20,000,000

(Monday)

be invited)

October 2

shares

(Bids

Canadian

r

Co., Inc., Chicago, 111.

(Tuesday)

invited)

to be

(Bids to

.Common
Co.)

,'.*•••

Price—To
be supplied
by amendment.
Proceeds—To
selling stockholders. Underwriter—Lee Higginson Corp.,

Cummins Engine Co., Inc.,

Bonds

Tampa Electric Co

•

Common
Co.)

,

Co.-6f America, Schiller Park, III.
(7/18).
'
June 28 filed 325,711 shares of common stock (par
$5).
* Controls

June 26 filed

$15,000,000

invited)

be

October 1

shares

Co

July 18

i

to

Virginia Electric & Power Co.—

Bonds
11

Bonds
$15,000,000

(Wednesday)

12

September 25

Union Electric Co
(Bids

(Tuesday)

Common

a.m.

&

.Common
$58,053,100

Common

(Tuesday)

&

Proceeds—To in¬

March 30

Co

Northern States Power Co

shares

Inc

(Courts

•

underwriting)

invited)

be

to

September

Common

Light Co..
(Bids

$61,301,000

.

Companies, Inc
(Dean

underwriting)

September 11

(Bids

*

Delta

17

;

Carolina Power

$1,000,000

Co.)

Co., Inc.)

Morgan

$30,000,000

August 31 (Friday)
Telephone Co

Preferred

Mica & Minerals Corp. of America...
(Peter

stockholders—no

to

share.

Office—Alexandria, La. Un¬

stock.

298,410

Cummins Engine Co., Inc
(A.

Van

(Monday)

Staats

invited)

per

derwriter—None.

Crater Lake

Debentures

Co

B stock, 50 cents
capital and surplus.

—Baker, Simonds & Co., Detroit, Mich.

(Tuesday)

Gas

'

■

Cullen

underwritten
shares

be

be

to

Debentures

$78,000,000

PDT)

a.m.

August 29 (Wednesday)
,
/
New England Telephone & Telegraph Co.—Com.
(Offering

California Interstate Telephone Co
(William

J.

...—Common

Corp...

&

8:30

Consolidated Natural

(Friday)

stockholders—to

to

(Tuesday)

August 28

341,550 shares

$22,000,000

Co.)

San Jacinto Petroleum
White,

(Bids

Common

Co.

&

$40,000,000

Pacific Telephone & Telegraph Co

Authority—.Bonds

Haupt

EDT)

a.m.

•

■

-

Bonds

.....—

11:30

August 21

EDT)

a.m.

(Tuesday)

$6,000,000

(Thursday)

Corp.;

Ingen

(Offering

11

Resources

July 13
>

120,000 shs.

"

-..

Equity Securities Corp.

of class

the

$3,750,000

Inc.)

14

.'

28 filed 40,000 shares of class A common stock
(par $5) and 80,000 shares of class B common stock (par
50 cents). Price—Of class A
stock, $12.50 per share, and

•

—L—Bonds

(Wednesday)
Otis,

&

filed

Continental

ner

..Common

August

Debentures

—-

to stockholders—bids

$1,000,000

$10,000,000

EDT)

a.m.

(Gearhart

$4,020,000

Pacific Power & Light Co

11

August 1
'

Equip. Trust Ctfs.
EDT)

noon

Inc.)

.

Curtis)

&

Dealers,

Minerals, Inc.

Common

—;

Jackson

Securities

(Bids

Common

Hague, Noble & Co.)

Corp

Webber,

(Bids

Puerto

State

Class A

July 31 (Tuesday)
Jersey Central Power & Light Co

York, Chicago & St. Louis RR.

(Offering

Gold Seal Dairy Products Corp.—

First

Janney,

by

—

■

i

The

(Monday)

July. 30

;

(All

$250,000

—

iCruttenden & Co.

New

by

—.—

stockholders—underwritten

to

Co.

National

'

Common
underwritten

be

County Coal Corp

(Offering

Kirsch

and

:

Courts
& Co.;
and
The Robinson-Humphrey
Co., Inc.) 88,280 shares

Corp.;
'/

■

Co.;

(Wednesday)

stockholders—to

to

(Offering

r

18

crease

Co

July 25 (Wednesday)*"'
Food Machinery & Chemical Corp
^Debentures

Debentures

Corp.; White, Weld &
Co. Inc.) $30,000,000

Halsey, Stuart &

v

July 11

:

;

Common

Atlanta Gas Light Co—
;

: I

$300,000

Inc.)

$20,000,000

,

•

f

Co.,

(Offering to stockholders—to be underwritten by Merrill Lynch,
Pierce, tFenner & Beane) 2,570,846 shares

;

J

;

&

Smith,

,,

i_.—Common

Blauner

D.

(Milton

invited)

be

Office—Stamford,
Alstyne, Noel & Co., New

March

shares

125,000

(Tuesday)
Bonds

to

Northrup

'

0 General Transistor Corp

Co.)

&

receivable.

Van

—

:

Ind.

Common

Co

(Bids

shares

300,000

Simonds

July 24

Inc.) $9,250,000

Diesel Electric Corp...

Consolidated

;

*'

Debentures

accounts

$4,000,000

Copeland Refrigeration Corp

*

10
the

payment of bank loans and other obligations totaling
$184,000, and for the purchase of securities of company's
subsidiaries. Underwriters — The Milwaukee, Co., Mil¬
waukee, Wis.; Harjeyv flaydon, & Co., Inc.,... Madison,
Wis.; and Indianapolis Bond & Share Corp., Indianapolis,

'

•

of

Co., Chicago, III. (7/9)
$330,000 of 5% convertible debentures
due June 1, 1976 and 26,000 shares of class A common
stock (par $10). Price—Of
debentures, 100% of principal
amount; and of stock, $12 per share. Proceeds—For

.Bonds

;

(Kuhn,

(par

Consolidated Water

June

■

Champion Paper & Fibre Co
;

10

July

■

•

underwritten by Robert W.
47,729 shares

be

stock

$3,000,000

Inc.)

Common
&

and

Underwriter

York.

(

y v

Equitable-;'

and

Conn.

+

Baird

W.

Baird

,

136.000 shares

Corp.)

(Thursday)

(Offering to stockholders—to

'

V

$60,000,01)0

Co

-

'

shares

& Co.; and Equitable
$2,000,000
;>
"
i

Corp.)

Co

(Robert

.——.Debentures

Securities

(Louis)

.

Courts

Co.;

&

Noyes
.

Gas

underwritten

be

1,400,000

Co.)

and

(Louis)

Allis

Inc.;

..Common

Natural

Paso

Co.—to

&

Corp.

(Hemphill,

Co.,

Allis

*

$642,000

of America..—

stockholders

(Offering; to

Haydon &
Share Corp.)

&

Class A Stk.

&

Co.;. Harley,

Milwaukee

(The
..

Debens.

$9,650,000

Inc.)

for

200,000 shares for account of certain
selling stockholders. Price—To be supplied by amend¬
ment.
Proceeds—For working capital and to finance

.Debentures
Co.

&

(7/10-11)
account

common

are

and

company

inventories

$275,000

Co.)

&

Brothers)

Read

July 19

"

;

Common

Co...

(Dillon,

Commercial Life Insurance Co. of Missouri..Com.
Consolidated Water Co

Corp

(Vickers

;V

9 "(Monday)

July
V

Republic

Electric Corp.

June

*

-.-(Offering -to stockholders—to be underwritten by
V' '
Morgan Stanley & Co.) about 270,000 shares

Co., Hartford, Conn.
Consolidated Diesel

shares

270,000

Corp.)

Marquardt Aircraft Co......

$299,250

Yale & Towne Manufacturing Co

"

(Vickers

shares

Corp.

•

.

Devall Land & Marine Construction

Class A Common

Kay Lab

■V

calendar

"/■

(Friday)

-

issue

Price—To

Bonds

Continued

on

page

34

34

The Commercial and Financial Chronicle

(94)

Continued

from

page

General

33

Jan.

Brothers,

Underwriter—Vickers

Charles, La.
Tex.

Houston,

'
^

(N. J.), New York

■1

,

t

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.

-

Under%iter—None. Maurice Schack, Middletown, N. Yn

Office—1111 No. First Ave., Lake

and working capital.

Uranium Corp.

filed

18

-

Is President.
Giffen

Statement effective March 11.

Holden Mining Co., Winterhaven, Calif.
April 13 (letter of notification) 250,000 shares of capital
Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Address — P. O. Box 308, Winterhaven,
Calif.
Underwriter—Arthur B. Hogan, Inc., Hollywood,
Calif.

^

Industries, Inc.

Thursday, July 5, 1956

.

stock.

Doctors Oil Corp.,

Carrol Iton, Tex.
Feb. 23 filed 500,000 shares of common stock (par 1C
cents). Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring
developing and operating oil and gas properties; and tc
pay off $13,590.80 liabilities.
Underwriter — Jameg C
McKeever & Associates, Oklahoma City, Okla.

.

.

:

-

.

Hometrust

Corp., Inc., Montgomery, Ala.'
<
June 18 (letter of notification) 80,000 shares of common ? Jan. 5 filed
125,000 shares of common stock (par $1).
stock (par $2.50).
Price—$3.75 per share. Proceeds— ' Price—$5 per share. Proceeds — To expand
operations
To pay note payable.
Office-—4112 Aurora St., Coral
of subsidiary and increase investment therein
Under¬
Gables, Fla, Underwriter—Atwill & Co., Inc., Miami ■ writer—None.
Beach, Fla.
\
,*VV
Idaho-Alta Metals Corp.
>
i
if Gillette Co., Boston, Mass." '•,/'*
Douglas Corp., Fort Collins, Colo.
March 7 (letter of notification) 120,000 shares of com¬
'/'O/'t'V.'
June 28 filed 40,000 .shares of common stock (par $1) ;
March 26 (letter of notification) 2,997,800 shares of common stock
(par 10 cents). Price—$1.50 per share. /Pro¬
to be offered for sale to selected employees of the com- v
mon stock
(par one cent). Price — 10 cents per share
ceeds—For exploration and development expenses. Un¬
Proceeds—For mining expenses.%Office—155 North Col- . pany and
its subsidiaries pursuant to the company's
derwriter
Fenner Corp. (formerly Fenner-Streitman
lege Ave., Fort Collins, Colo. Underwriter — Columbii V Stock Purchase Plan. K
& Co.), New York.
••
v
:';V ;
Securities Co., Denver 2, Colo.
;
Golden Dawn Uranium Corp., Buena Vista, Colo,
f
Ideal-Aerosmith, Inc., Hawthorne, Calif.
V
Dec. 27 (letter of notification) 3,000,000 shares of capital
it Eastern-Northern Explorations, Ltd.,
.•'/
Dec. 16 (letter of notification) 150,000 shares of capital
r
itock (par five cents). Price—10 cents per share. t ProToronto, Canada
itock (par $1)./ Price — $2 per share/ Proceeds —For
J
June 4 (regulation "D") 50,000 shares of common stockseeds — For mining expenses.
Underwriter — Bel-Air
equipment, machinery, inventory, etc. Office—12909 So.
(par $1). Price—60 cents per share. Proceeds—For gen¬ Securities Co., Provo, Utah. "-"//■
//V'.-' ■■
Cerise Ave., Hawthorne, Calif. Underwriter—Samuel B.
eral corporate purposes.
Underwriter — Foster-Mann,
Franklin & Co., Los Angeles, Calif.
• Gold Seal
<
^ ^
^
Dairy Products Corp. (7/30-8/1) *
Inc., New York.'
J,'-/ov ■.
June 22 filed 200,000 shares of class A stock (par 10
Illinois Power Co.
(7/24)
if El Paso Natural Gas Co.
cents)'. Price—$5 per share. Proceeds—For expansion
June 27 filed $^0,000,00u nm mortgage bonds due 1986,
and to repay outstanding obligations. /Office—Remsen,
July 3 filed 250,000 shares of cumulative preferred
Proceeds—To repay bank loans and for new construction.
stock (par $100). Price—To be supplied by amendment.
N. Y. Underwriter—All States Securities Dealers,
Underwriter—To be determined by competitive bidding.
Inc.,
Proceeds—To reduce bank loans.
New York.
Underwriter—White,
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Weld & Co., New York. Offering—Expected late in July
Boston Corp.; White, Weld & Co. and Merrill Lynch,
^ Gordos Corp. :
or
early August.
Pierce, Fenner & Beane/(jointly); Harriman, Ripley &
June 20 (letter of notification) $40,000 5% five year
Co. Inc. and Glore, Forgan & Co. (jointly); Union Se¬
ic Essar Rock Products, Inc.
convertible bonds.
Proceeds
To reduce bank loans.
June 5 (letter of notification) 150,000 shares of common
curities Corp, Bids—Expected to be received on July 24.
Business
Gas filled electronic tubes
and mercury
.

—

.

.

'

•

—

—

stock.

Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office — Virginia-Truckee Bldg., Carson
City, Nev. Underwriter—None.
★

Eureka

Corp., Ltd., New York

April 30 filed 2,276,924 shares of

common

of which 1,991,210 shares are to be
offered for subscription by stockholders of record May
18, 1956 at the rate of one new share for each five
The

remaining 285,714 shares are to be is¬
as compensation in connection
offering. Price—$1.75 per share. Proceeds—
To explore, develop and exploit the TL Shaft area. Un¬
derwriters—Alator Corp., Ltd. and Rickev Petroleum#
& Mines, Ltd., both of
Toronto, Canada. Offering—Can¬
sued to the underwriters

with

the

celled.'

and

more

than 25 people,

will declare itself

pany

an

change the offering

whereupon the com¬
open-end investment company
price of the remaining 40,000

shares to net asset value plus a
distributing charge.
vestment Adviser—First National Investment

In¬

Corp., San

Francisco, Calif. Underwriter—First
Co.,

same

National

Securities

city, of which Wiley S. Killingsworth is Presi-

dent.

.

Florida

Sun Life

•

Grain

Elevator

stock

Warehouse

Co.

and

10

National

of

National

tendered

★ Fontana Steel Co.

a

com¬

2,270 shares are
offered to employees of the company. Price — $50
per
share. Proceeds—For working capital. Office—6102
Har-:
risburg Blvd., Houston, Tex. Underwriter—Npne.

May 28 filed 600,000 shares of common stock (par $1)
to be offered primarily to individuals" and firms who
are
engaged in or closely allied to the growing and
shipping industry. Price—$3 per share. Proceeds—For
working capital, capital expenditures and other corpo¬
Underwriter—None.

in units of one $100 debenture and
one
common stock.
Price—$130 per unit. Proceeds
—For payment of accounts
payable and notes payable
and for working
capital. Office — 17190 Valley Road,

Fontana, Calif. Underwriter—None.

ir Food Machinery & Chemical Corp.
June

28

filed

(7/25)

Proceeds

$30,000,000

of sinking fund debentures
Price—To be supplied by amendment.
Proceeds—To repay $15,500,000 of
promissory notes and
for modernization and
expansion of facilities. Under¬
writer—Kidder, Peabody & Co., New York.

★ Freeman Oil Co., Del Rio, Texas
June 25 (letter of
notification) 150,000 shares of common
stock (par $1).
Price—$1.25 per share.' Proceeds—For
oil drilling
expenses.
Office—Del Rio Bank & Trust
Bldg., Del Rio, Tex. Underwriter—None.
Hills

O.

Box

2231,

business.

Mining and Oil, Inc.

Jan. 4

(letter of notification)
1,200,000 shares of com¬
mon stock
(par five cents). Price
25 cents per share
Proceeds—For expenses incident to
mining operation!

/

Gordon

For expenses incident to commercial
grain
Underwriter—W. R. Olson Co., Fargo, N. D.

—

Hard Rock Mining Co., Pittsburgh, Pa.
<
(letter of notification) 1,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—To purchase machinery and equipment and
Feb. 20

for

working capital. .Office — 377 McKee Place, Pitts¬
burgh, Pa. Underwriter—Graham & Co., Pittsburgh, Pa.

20

59,445 shares of $1.60 cumulative con¬
vertible preference stock
(no par) and 59,445 shares
of common stock
(par $1) to be offered in
exchange for
5% preferred stock and common
stock of
Graflex

Inc

in the ratio of
one-quarter share of General preference
stock for each Graflex
preferred share and
one-quarter
share of General common
stock in
exchange for each
Graflex common share.

Underwriter
None.
Transistor Corp.
(7/10)
June 11 (letter of
notification) 100,000 shares of com¬
mon stock (par 25
cents). Price—$3 per share. Proceeds
*~~For machinery and
equipment, to repay bank loan
and advances and for
working capital, etc. Office —
130-11 90th
Ave., Richmond Hill, New York City
Un¬
derwriter—Milton D. Blauner &
Co., Inc.,
★

General

City.




New'York

;

share for

each

if Hardware Wholesalers, Inc.
(letter of notification) 2,200 shares of common
stock (par $50).
Price—$1,000 per unit (each unit con¬
sisting of 20 shares). Proceeds—To purchase and carry

held.

share

ceeds—For capital

Price—$16

increase inventories.

Incl.

Office—Nelson Road, Fort Wayne,
Underwriter—None.

share.

Pro¬

Office—750 Main
Underwriter—Putnam & Co., Hart¬

ford, Conn.
•

per

stock and surplus.

v,

v..;\V

■;/y.

■■■ ■

.

Iron

Interiake

Corp.
June 4 filed 80,561 snares of common stock (no par)
to be offered in exchange for common stock of Globe
Metallurgical Corp. at the rate of 0.4666% of one share
Globe

share.

Offer to expire on

July 20, 1956,

Statement effective June 28..

International

International

Plastic

;

*

Basic

Metals, Inc.
Jan. 27 (letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For mining expenses. Office—155 West South
Terrmle St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake City, Utah.
Industries

Oct. 12 (letter of notification)
stock

(par

10

For advances

ment, etc.
N. Y.

cents).
to

per

share;

common

Proceed!—

Arliss

Office

—

Co., Inc. for purchase of equip¬
369-375 UpKalb Avp
^ooklyn 5,

Underwriter—Kamen

Isthmus

Corp.
150,000 shares of

Price—$2

&

June 25

Co.. New York.

/

Steamship & Salvage Co., Inc.

May 4 (letter of notification)

luo,uU0 snares of common
(par 10 cents). Price—$3 per share. Proceeds—For
working capital and for purchase of a ship and ;equipstock

Office—1214 Ainsley
Bldg., Miami, Fla. Under¬
writer—Foster-Mann, Inc., New York, N. Y.
V
ment.

Hidden Dome Exploration Co., Inc. 4
May 15 (letter of notification) 3,000,000 shares of capital
stock. Price—At par (10 cents
per share).
Proceeds—
For the

General Precision
Equipment Corp.

if Insurance City Life Co., Hartford, Conn.
28 (letter of notification) 15,805 shares of capital
stock (par $10) to be offered for subscription by stock¬
holders of record June 8, 1956 on the basis of one new.

June

for each

—

Office—Kemmerer, Wyo. Underwriter—Philip
& Co., Inc., New York 6. N.
Y.

Underwriter—Alexander Watt & Co., Inc., hag
as underwriter; new one to be named.

withdrawn

unless extended.

& Sons, Fargo, N. D.

May 25 (letter of notification) 1,800 shares of 5% cumu¬
lative preferred stock (par $100). Price—$98 per share.

due July 15, 1981.

Gas

working capital. Address—P.
Underwriter—None.

8aton Rouge, La.

(R. F.)

Circuits, Inc., Belleville, N, J.

St., Hartford, Conn.

Dec.

Gunkelman

Insulated

.

ceeds—For

offered

;

purposes.

Salinas, Calif.

share of

be

,

Nov. 10 filed 100,000 shares of 6% convertible preferred
stock (cumulative if and to the extent earned). Price— 1
At par ($5 per share). Proceeds—For ppnorol c-morate

rata to the holders of class A stock and

Guaranty Income Life Insurance Co.
30 (letter of notification) 24,000 shares of
capital
itock (par $5) to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬

to

if Inland Steel Co., Chicago, III.* (7/19)
June 29 filed $50,000,000 of first mortgage bonds, series
J, due July 1, 1981. Price—To be supplied by amend¬
ment.
Proceeds—For expansion program.
Underwriter
—Kuhn, Loeb & Co., New York.
r;
:

of the sub¬

(letter of notification) $125,000 of 7% 15-year
debentures and 1,250 shares of common stock
(no par)

4

record June 30 on a l3/4-for-l basis (with an over¬
subscription privilege); rights to expire in days. Price
—$1.70 per share. Proceeds—For construction * of an ab¬
sorption type gasoline plant. Office—11950 San Vincente Blvd., Suite 207, Los Angeles 49, Calif.
Under¬
writer—Bennett & Co., Hollywood 28, Calif.

Gray Tool Co., Houston, Texas
May 3 (letter of notification) 3,270 shares of class B stock
(no par), of which 1,000 shares are to be offered pro

rate purposes.

com¬

Proceeds—For

of

common

part

share.

,

scription. Proceeds—For capital expenditures and work¬
ing capital. Underwriter—None.

Growers Container Corp.,

Insurance Co.

as

1,000,000 shares of

per

Inglewood Gasoline Co.
^
May 18 (letter of notification) 175,725.9 shares of capital
stock (par 50 cents) being first offered to sfockholders

shares;
to expire on July 16. Price—$50 per unit. In
exercising the subscription rights, credit will be given
toward the subscription price on the basis of $45 for
stock

Development Corp.
cents

•

rights

mon

Price—Five

development and working capital. Office—Moab, Utah.
Underwriter—I. J. Schenin Co., New York.
:

(par 10 cents)

such unit for each

one

Minerals

(letter of notification)

stock.

mon

being offered for subscription
in units of $50 of debentures and one common share by
preferred and common stockholders of National Alfalfa
Dehydrating & Milling Co. of record June 20, 1956 on
the basis of ®ne such unit for each preferred of National
mon

■;

March 16 filed 32,000 shares of common stock
(par $1).
Price—$10 per share. Proceeds—To expand company's
business. Office—Fort
Lauderdale, Fla. Underwriter—
None. Offering will be made
through James C. Dean,
President of company.

June

Industrial
March 7

f

each share of preferred and $15 for each share of

v

★ First National Mutual Fund, Inc.
June 27 filed 50,000 shares of common stock
(par $1), of
which 10,000 shares are to be offered for sale at
$10 per
share to not

Bloomfield, N. J.

Underwriter—None.

May 28 filed $6,302,950 of 5% convertible subordinated
stock (par 25 \ debentures due 1976, together with 126,059 shares of com¬

cents-Canadian),

shares held.

Office—250 Glen wood Ave.,

switches;

development of oil and gas properties. Office—
219 E. Fremont Ave., Las
Vegas, Nev. Underwriter—
National Securities Co., Las Vegas, Nev.
Hill & Hill

March

13

1956 Oil

filed

to be offered for

Exploration Capital Fund
$450,000 of participations in this Fund
public sale in minimum units of $15,000.

Proceeds—For payment of various
property and explor¬
atory well costs and expenses. Business—George P. Hill
and

Houston

production

of

Hill

oil

are

and

engaged in
gas

as

a

exploration for

joint venture.

and

Office—

Fort

Worth, Tex. Underwriters — William D. McCabe
Emerson, South Texas Bldg., San Antonio, Tex.
Hiskey Uranium Corp.
May 31 filed 500,000 shares of common stock (par 30
cents). Price—$1 per share. Proceeds—For drilling ex¬
and E. S.

penses, purchase

of properties and

working caoifal. Of¬
fices—Las Vegas, Nev., and Salt Lake
City, Utah. Under¬
writer—Ackerson-Hackett Investment Co., Reno, Nev.

Israel-Mediterranean Petroleum, Inc. (Panama)
May 29 filed American voting trust certificates for 1,430,000

shares

of

common
stock
(par one cent), of which
1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to
options and 250,000 shares apd certificates therefor are

to be offered for sale outside of the United States.
Price
be the market price on the American Stock Ex¬

'—To

change. Proceeds — For carrying out the expl'orafory
drilling and development of presently licensed
acreage,
operations and expenses of the cbmpany, and
acquisition,
exploration and development of additional
acreage. Un¬
derwriter—H. Kook & Co., Inc., New York.

ir Jersev Central

Power & Light Co.
(7/31)
July 2 filed $10,000,000 first mortgage bonds due 1986.
Proceeds
To repay bank loans and for
construction
program.
Underwriter—To be determined by
competi¬
tive bidding.
Probable bidders: Halsey, Stuart &
Co.,
Inc.; Lehman Brothers; White, Weld & Co.;
Kidder,
Peabody & Co.; Union Securities Corp., Salomon Bros.
—

\
Number 5548

Volume 184

.

.

.

The Commercial and Financial Chronicle

(95)

&

Hutzler

and

Merrill Lynch, Pierce,

July
offices cf General Public Utilities Corp., 67

New York,

N. Y.

—For

Fenner & Beane

Bids—Expected to

(jointly); Blair & Co. Incorporated.
be received up to 11 a.m.
(EDT)

on

'

June

-

Colo.

—

Underwriter

New York.

—

; '•<

-■

326

-

.

^

»'

Kansas Power & Light Co.

_

;

(7/18)

-J.

■/;

?

;

be

-

>

by! amendment^ - Proceeds—Torepay
for new .construction.
Under-.'
writer—The First Boston Corp., New York.
t

Kay Lab, San Diego, Calif. (7/6)
May 23 filed 364,280 shares of class A common stock (par:
$1), of which 307,400 shares are to be offered to the

Co., Los Angeles, Calif.

shares of non¬
(par one cent). Price—10 nenti
per share.
Proceeds—For expenses incident to mining
operations. Office— Simms Bldg., Albuquerque, N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt
Lake

City, Utah.

:

;

—

*

A
common

stock

(par $1), Price—To be supplied by amendment (expect¬
share). Proceeds—To pay loans from banks
and for working capital and other corporate

Lumberman's Investment & Mortgage Co.

>

Price—$12

per

Office

—

Colo.

Denver,

units of

Business—Prefabricated homes, house trailers
Co., New York.

•

Kropp Forge Co.
4 (letter of notification) 18,804 shares of common

June

cents). Price—At market (estimated at
$3.50 per share). Proceeds — To selling stockholder.
.Underwriter—Sincere & Co., Chicago, 111.
stock

(par 33Vz

i< Lakeside Monarch Mining Co.
:
>
June 20 (letter of notification) an undetermined num¬
ber of shares of common stock (par 40 cents). Proceeds
■i—For mining expenses.
Office—Uranium Bldg., Moab,
„

Utah.

Underwriter—None.

:

v

v/./'V;/

'

Lawyers Mortgage & Title Co.
May 11 (letter of notification) 133,000 shares of com¬
mon stock (par 65 cents).
Price—$1.50 per share. .Pro¬
ceeds—For working capital. Office—115 Broadway, New
York* 6, N. Y. Underwriter—None.
r -

Lay (H. W.) & Co., Inc.
May 25 filed 200,000 shares of class A common stock
(par 50 cents), of which 149,000 shares are to be of¬
fered by the company and 51,000 shares for account
of certain selling stockholders. • Price—$5.75 per share.
Proceeds—To repay

shares

of

$300,000 of bank loans, retire 7,879
cumulative convertible preferred stock,

5.2%

and for working

Business—Produces food prod¬
Ga.
Underwriter
Johnson,
Lane, Space & Co.. Inc., Savannah, Ga.
-2*8
ucts.

Office

—

capital.

Chamblee.

—

it Leeds & Northrup Co., Philadelphia, Pa./(!7/J24)
June 28 filed 115,000 shares of common stock tear 50
cents), of which 100,000 shares are to be offered
the
public and 15,000 shares to employees. Price—To %.|upplied by Amendment. Proceeds—To; reduce short-term
bank loans and for general corporate purposes. /Under¬
writer
Smith, Barney & Co., New York. Me«$mg—
'Stockholders1 on July 23 will vote on the propose<£*wofor-one split of the present $1- par shares.
*5®
—

-

Lester

Engineering Co., Cleveland,,Ohio
Feb. 24 (letter of notification) 37,500 shares of cqgmaon
stock (par $1) to be offered for subscription by coriamon
stockholders of record March 1, 1956 *n the basis pf one
new

share for each 4 V4 shares held. Of the unsubscribed

portion,
ployees.

to 7,500 shares are to be offered toj em¬
Price—$8 per share. Proceeds — For general

up

Office—2711
Underwriter—None.

-corporate purposes.

land, Ohio.

Church Ave., Cleve¬

Lewisohn Copper Corp.
March 30 filed

100,000 shares of common stock (ppif 10
cents). Price—To be supplied by amendment. Proceeds
—For exploration and evaluation of leasehold properties,

equipment and for general corporate
purposes.
Office—Tucson. Ariz.
Underwriter-^George
F. Breen, New York. Offering—Postponed.
improvements,

Lithium Developments, Inc., Cleveland, Ohtar.
June 21 filed 600,000 shares of common stock (par

10
cents), of which 600,000 shares are to be sold fat ac¬
count of the company and 90,000 shares for selling si&ckholders. Price—$1 per share, by amendment. Proceeds




unit.

per

of

8%

stock

(par $50) and
(no par) to be offered in

Proceeds

one

share of

common.

For mining expenses
Office—2508 Auburn Ave., Cincin¬

and

—

processing silica.
nati, Ohio. Underwriter—None.

;

^ Montana Drilling & Mining Corp.
June 25 (letter of
notification) 500,000 shares of common
stock.
Price—At par (10 cents per
share). Proceeds—
For mining expenses. Office
Power Block, Helena.
Mont. Underwriter—None.
—

Mormon Trail Mining
Corp., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of capital

Feb. 9

(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—223
Phillips Petrol¬
eum

Bldg., Salt Lake City, Utah. Underwriter—Frontier

Investment, Inc., Las Vegas, Nev.
• Naptunalia

Seaford Co.,
Thunderbolt, Ga.
(letter of notification) 75,000 shares of common
stock. Price
At par ($1 per share). Proceeds — For
working capital and to construct and equip a
processing
plant.; Underwriter—None.
—

•

Nash Finch Co.
June 1' (letter of
notification) 1,000
stock (par $10). Price—At
market

stock.

share).

Proceeds—To

selling stockholder. Under¬
Minneapolis, Minn.

writer—J. M. Dain &
Co., Inc.,
common

Price—At par ($1 per share). Proceeds—For min¬

National

ing expenses.

19

stock

Federal

>•

Mammoth Milling & Uranium Co., Inc.
/
May 11 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par, (10 cents per share).
Proceeds—
For mining expenses. Office—205 Carlson Bldg., Poca*
tello, Idaho. Underwriter—Columbia Securities Co., Inc.

By-Products, Inc.
(letter of notification) 2,000 shares of common
(par $1). Price—$5 per share. Proceeds—To pay

June

Office—2010-C 24th St., Los Alamos, N. M.
Underwriter—Malcolm I. Cole, Los Alamos, N. M.

of

v

shares ot common
(estimated at $18.50

per

(letter of notification) 50,000 shares of

?

estate

taxes.

Office—800

Bankers

Trust

Des

Moines, Iowa. Underwriter—T. C. Henderson
Inc., Des Moines, Iowa.
.
.

Bldg.,
Co.,

&

ur.

National Consolidated
Mining Corp.
May 9 (letter of notification) 87,000 shares of

California, Beverly Hills, Calif.

stock

Manufacturers

For

Cutter

Corp.
(letter of notification) 300,000 shares of class A
stock. Price—At par ($1 per share). Proceeds—
To repay loans, and for new equipment and
working
capital. Business—Cutting tools. Office—275 Jefferson
St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
•ame city.

(par

cent).

one

mining expenses.

writer—Pummill

Oct. 18

Price—$3
Address

per

share.

common

Proceeds—

Salida, Colo.
Enterprises, Houston, Tex.
—

Under¬

common

it Lampar Co., Dallas, Texas
June 28 (letter of notification) 100,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For in¬
ventory; financing of accounts receivable; expansion;
purchase of raw materials; and working capital/Office
—2727 W. Mockingbird Lane, Dalals, Tex. Underwriter
.—None.

stock

share of preferred and

one

Price—-$60

it Malco Exploration Co., Inc.
June 22

and lumber. Underwriter—Ira Haupt &

preferred

common

June 22

★ Magdalena Mining & Milling Co.
June 26 (letter of notification)
50,000 shares of preferred
-stock (par $4) and 50,000 shares of common stock
(par
$1). Price—$4 per share for preferred (with one share
iof common as a bonus). Proceeds—For
mining expenses.
/Office—2040 South Navajo St., Denver Co. Underwriter
—None.
'■/ ■ / ' ;
' •
-

ed at $4 per

-

stock

(par $10),
share. Proceeds—For working capital and
common

and factors;

purposes.

convertible

3,000 shares of

stock

v

May 2 filed 50,000 shares of

(7/11)

be

Mohawk Silica Co., Cincinnati, Ohio
March 23 (letter of
notification) 3,000 shares
.

;

dumulative

filed 120;000 shares "of common stock

Corp., Thomson, Ga.
,/,Lj/:
June 20 filed 150,000 shares of class A

provide capital and surplus'funds for the activation of
this insurance
company.
Underwriter—Arizona Mutual
Benefit Insurance Co.,
Phoenix, Ariz.
\

Underwriters—

Los

corporate purposes.
Underwriter—N one.

Knox

Modern Pioneers' Life Insurance Co.
May 24 (letter of notification) $300,000 of trust fund cer¬
tificates. Price—At par. ($2 per unit). Proceeds — To
'■

.

unsatisfactory market conditions.

general

(par $5):
supplied tey amendment*
Proceeds—To
selling stockholders.
Business —/.Drapery hardware.
Underwriters
Cruttenden & Co., Chicago, 111.; and
Smith, Hague, Noble & Co., Detroit, Mich.
;
>
\
•

States

assessable capital stock

•

Price—To

Co., Jackson, Miss.

market.

All

Lost Canyon Uranium & Oil Co.
6 (letter of notification) 3,000,000

$343,700 to pa^ accounts payable and commissions pay¬
able; and the balance of approximately $200,000 to be
added initially to working capital to be used for general
corporate purposes. Underwriter—Shearson, Hammill &
Co., New York, and Los Angeles, Calif.
Co., Sfurgis, Mich.

—

Oct.

public and 56,880 shares to certain stockholders. PriceTo be supplied by amendment. Proceeds—$2,455,361 to
be applied to the repayment of notes and bank loans;

Kirsch

.

Proceeds—To repay bank loans.

writer—Dean Witter &

•

June 21

Price—At

Angeles Airways, Inc., Los Angeles, Calif.
April 23 (letter of notification) 645 shares of common
stock (par $10). Price — $54 per share. Proceeds — To
Clarence M. Belinn, the selling stockholder. Office—5901
West Imperial Highway, Los Angeles
49, Calif. Under¬

supplied
bank Joans and

;

Series.

Co., Dallas, Texas.

because of present

June 25 filed 270,000 shares of common stock (par $8.75).*
Price—To

Growth

For investment. Underwriter

Blyth & Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed

'

»

shares. Price—$40 per unit. Proceeds — For
pur¬
chase of machinery and equipment. Office—New
Albany,
Miss. Underwriter—Lewis &
mon

April 5 filed 120,000 shares of cumulative preferred stock,
(par $100). Price—To be supplied by amend¬

Montezuma

.."

Fund, Dallas, Texas

Long Island Lighting Co.

ment.

expenses

West

Mission Appliance Corp. of
Mississippi
v
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of
qpmmon stock (par
$5) to be offered in units of one preferred and four com¬

series G

non¬

incident to mining
St., Cortez,
Bay Securities Corp., New York,-

Proceeds—For
Office

general

*

Industrial
—

Management

assessable common stock (par one cent). Price—10 cents

share.

of

Proceeds

V

activities.

other

filed

shares

.

per

and

125,000 shares of Balanced Income Series;
125,000 shares of Insurance Growth Series; and 125,000

if John Marshall Life Insurance Co.
•
June 28 (letter of notification) 59,000 shares of common
stock (par $1). Price—$4 per share. Proceeds—For oper¬
ating capital and surplus. Office—1001 South 22nd St.,
Birmingham, Ala. Underwriter—None.
Jurassic Minerals, inc., Cortez, Colo.
Aug.* 26 (letter of notification) 2,855,000 shares of

1

development

Underwriter—George A. Searight,

City.

Lone Star

'.j.l' '■

and

purposes.

New York

31 at the
Broad St.,

.

exploration

corporate

/

33

National

Lithium Corp.,

Denver, Colo.

Dec. 27 (letter of notification)
300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club
Bldg.,

Denver, Colo.
city.

•

Marquardt Aircraft Co., Van Nuys, Calif. (7/18)
25 filed 42,000 shares of capital stock
(par $1) to
be offered for subscription by stockholders of record
about July 18 on a pro rata basis; rights to expire on or
about Aug. 7. Price—To be supplied by amendment. Pro¬

Underwriter

—

Investment Service

Co.,

same

June

National

Metallizing Corp.
(letter of notification) 24,000 shares of Class A
(par $1) and 40,000 shares of Class B stock (par
$1) to be offered for subscription by Class A and Class
March 5

stock

ceeds—From

sale of stock, together with funds from
private placement of $2,000,000 of first mortgage 5V4%
bonds, for capital improvement, equipment and general
corporate
purposes.
Underwriter—None. Unsubscribed
shares will be bought by Olin Mathiesen Chemical Corp.,
and

Laurence

S.

Rockefeller,

B stockholders of record Feb.

Price—$2

1, 1956

Proceeds—For

on a

l-for-4 basis.

vacuum

None.

the two principal stock¬

National Old Line Insurance Co.
&

Minerals

Nov.

15 filed 50,000 shares of class A common
stock
(par $2) and 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Pro¬
ceeds
To selling stockholders.
Office
Little Rock,

Corp. of America (7/16)
June 13 filed 570,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To repayment of
loans, to exercise option to purchase property now under
lease, for construction of a plant, and for further explo¬
ration, working capital and other general corporate pur¬

Office—Wilmington, Del.

poses.

share.

metallizing,
conditioning, slitting and inspection machinery. Office—
1145-19th St., N. W.,
Washington, D. C. Underwriter—

holders.

Mica

per

Underwriter

—

Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely

Peter

—

—

Ark.

postponed.

Morgan & Co., New York.
•

^Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976.
Proceeds—To pay off short term bank loans
and

for

construction

program.-

*

Underwriter

—

To

Mill-Continent

Uranium

ver 2, Colo. Underwriter—General Investing
Corp., New
York, N. Y.

Midland General
Jan.

12

Hospital, Inc., Bronx, N. Y.

filed

24,120 shares of common stock (no par)
shares of $6 dividend preferred stock (no
company does not intend presently to sell
more stock than is required to raise, at most, $2,700,000.
Price
$100 per share. Proceeds — For construction,
and

30,000

par).

The

Proceeds—$3,000,000 in payments of capital
Corp., a wholly-owned subsidiary;

for advances to said subsidiary and for
general corporate
Business—Scientific research and the com¬
mercial development of the results obtained.
Office—

/purposes.

Cambridge, Mass. Underwriter—Paine, Webber, Jack¬
& Curtis, Boston, Mass., and New
York, N. Y.

son

Corp.

-May 31 (letter of notification) 100,000 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—For mining expenses. Office—728
Symes Bldg., Den¬

(7/11-12)

stock of NRC Metals

pected at end of month.
^

Research Corp.

principal

amount.

be

determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Harriman
Ripley & Co. Inc.; Blyth & Co., Inc. Bids—Ex¬

National

June 21 filed $6,000,000 of convertible subordinated de¬
bentures due July 1, 1976.
Price — 100% of

:

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon

stock

Proceeds
State

(par 3%

—

For

cents). Price—10 cents per share.
mining expenses. Office ^—345 South

St., Salt Lake City, Utah.
Co., Denver, Colo.

Underwriter—Birken-

mayer &

Nicholson

Jan.

16

filed

Price—$25

(W. H.) & Co., Wilkes-Barre, Pa.
20,000 shares of common stock (par $5).
share. Proceeds — For working capital.

per

Underwriter—None.

A. E. Nicholson Jr. of

—

working capital,

reserve, etc.

Minerals, Inc., New York

(8/1)
2,500,000 shares of common stock (par
one cent).
Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin lead-zinc-copper-silver mine
located in South Central Peru, and for general corporate
purposes.
Underwriter — Gearhart & Otis, Inc., New
June

York.

22

filed

Kingston, Pa,

is President.

Underwriter—None.
North

American

Coal

Corp.

(7/19)

June

25 filed 250,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For

mining machinery and working capital. Office—Cleve¬
land, Ohio. Underwriters—Dominick & Dominick, New
York; and Ball, Burge & Kraus, Cleveland, Ohio.

Continued

on

page

36

36

The Commercial and Financial Chronicle

(96)

35 * ,. ♦ ■

Continued from page

Reinsurance Investment Corp., Birmingham, Ala.

;

2,485,000 shares are to be offered to public and 500,000

N. M.
notification) 2,000,000 shares of common
4tock (par five cents). Price—15 cents per share. Pro¬
ceeds—For exploration and development and other gen¬
Co., New York.
-A-

shares

8 (letter of

<y.

»

Oceanium, Inc.

'

shares of common
Proceeds — For
1035 S. W. Fifth, Portland,

(letter of notification) 25,000
Price—At par ($1 per share).

June 26

stock.

(Calif. )

Pacific Finance Corp.

1

♦/■ »••/;/

■.

1

Pacific Power & Light Co.

(7/11)
shares of common stock (par $6.50)

June 7 filed 341,550

subscription by

stockholders
record July 11, 1956 at the rate of one additional share
for each 10 shares then held; rights to expire on Aug. 2,
1956. Price—To be set by board of directors. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Leh¬
man Brothers, .Union Securities Corp., Bear,
Stearns &
offered for

be

to

common

(jointly); Kidder, Peabody
to 11 a.m. (EDT) on July
2033, Two Rector St., New York 6, N. Y.

purposes.
•

Pan-Israel Oil Co., Inc. (Panama)
May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent), of which
1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to
options and 25,000 shares and certificates therefor are to
be offered for sale outside of the United States.

Pinellas
Feb.

16

;

•

*

basis of 0.6158

of notification)

Price—$7.50
to

one

new

one

Ar Procter & Gamble Co.
filed 300,000 shares of

June 29

stock

common

to

Sierra

each

Minerals, Inc., Reno, Nev.

struction

cents).

(7/6)

Price

interchangeable letter Radalite
N. Y.

Underwriter—Vickers Brothers, New York.
"

Radium Hill Uranium, Inc.,
Montrose, Colo.

Teton Oil & Minerals Co.

Securities Co., Denver,

Office—Bryant Bldg.,

Underwriter—Shaiman & Co., Denver,

Colo.

"■/'

Rare Metals Corp. of America
15 filed 1,400,000 shares of

(7/9-20)
capital stock

.to

be

offered

of

El

Paso

Co.

the basis

on

each

five shares

stock

and

Shares

or

common

during
"—To

for

a

be

subscription by

Natural

one

of
or

Gas
one

At the market/ Proceeds— To selling v
Underwriter—None.
/

Corp.
(letter of notification) 90,000 shares of common
stock
(par $1).
Price—$2 per share.
Proceeds—For
cost of negotiating additional license agreements and
the demonstration of equipment to be licensed.
Office
—15 Chardon St., Boston, Mass.
Underwriter—Jackson
& Co., Inc., Boston, Mass.
Southwestern

Oklahoma Oil Co.,

♦

Inc.

stockholders

Natural

share of Rare

of

Rare

thereof

The

of

Metals

Metals

stock

Western

offering

two-week period

supplied

common

Western

and

is

expected

for

to

for

common

each
Gas

(letter of notification) 15,001 shares of common
(par 10 cents) to be offered for subscription by
stockholders.- Price—$10 per share.' Proceeds—For ex¬
penses incident to development of oil and gas properties.
Office—801 Washington Bldg.,
Washington, D. C. Under¬
stock

El

Paso

and

Western.

The

remainder

purposes.

Underwriter—Southwestern

Secu¬

Co., Dallas, Texas.

Sperry Rand Corp. (7/10)
14 filed 2,570,846 shares of common stock
(par
cents) to be offered for subscription by common

Price

be

filed 1,000,000 shares of common stock
(par 25
Price—$5 per share. Proceeds—To exercise op¬
purchase additional properties and for general

corporate
rities

Resources, Inc., Santa Fe, N. M.

June
50

notes

will

tions,

11

and

subordinated notes

of

8

cents).

Co.

Proceeds—$1,250,000

to be used to pa.v
outstanding 4% short-term
the then outstanding 3%% and 3%%

June

made

be

commencing in July.

by amendment.

Gas

stock

Natural

used

to pay

for exploration, acquisition and development of
mining and milling properties and for working capitaL
Underwriter—White, Weld & Co., New York.

stockholders
one

new

of

record

July

9,

1956,

on

the

basis

of

share for each 10 shares held; rights

to expire
July 25, 1956. Price—To be supplied by amendments
reduce
banlc loans and for, capital ex¬
penditures. Underwiters—Lehman Brothers and Merrill

on

Proceeds—To

Lynch, Pierce, Fenner

&

Beane, both of

New York.

^ Stevens
Rea (J. B.) Co., Inc., Santa
Monica, Calif.
May 29 (letter of notification) 50,.000 shares of common

jrtock (par $5) per share.
—For inventory and

Price—$6 per share. Proceeds
working capital. Office—1723 Clov-

erfield Blvd., Santa Monica, Calif.
aon, Hammill & Co., Beverly



Underwriter

Hills, Calif.

inclusive.

Price—100%

construction

Underwriter—The

and

accrued

interest.

Proceeds

Office—Dyersburg, Tenn.
Arizona Co., Phoenix, Ariz.

program.

First

of

Togor Publications, Inc., New York
)
/ J
March 16 (letter of notification) 299,700 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.
*

„

Trylon Chemicals, Inc., Lock Haven, Pa:*/?*f
/']
June 25 (letter of notification) 4,500 shares of common
stock (no par). Price — $10 per share. Proceeds — For
working capital. Underwriter—None.
</
*Tull

(T. M.)

Metal & Supply, Inc.

Shear-

June

(J. P.) & Co., Inc., New York (7/19)
28 filed $30,000,000 of debentures due July 1, 1981.

Price—To be supplied by amendment. Proceeds—To re¬
duce short-term loans, to retire $95Q;000 of 4%% first

mortgage bonds and $368,679 of 6%

preferred stock of

subsidiaries.

Sachs & Co., New

York.

Under wriier^Goldman,

(letter of notification) 4,700 shares of common
(par $10). Price — $60 per share. Proceeds—For

stock

Feb. 27

Southwestern

(par $1)

portion thereof of El Paso

share

portion
stock.

Co.

-

r

(par 10

writer—None.
•

June

Colo.

Tipton County Utilities Co., Inc.
i
June 21 (letter of notification) $115,500 of 5%% first
mortgage bonds dated Jan. 1, 1956 and due 1958-1980,.

—For

Sonic Research

.

•

'{■

Webster

(jointly).

and

Co.;

/•';>

June 26

June 14 (letter of
notification) an undetermined number
of shares of
common
stock which when sold at the
market will bring in an
aggregate amount of $42,500.
Proceeds—For mining expenses;

Montrose, Colo.

&

1, 1977.
s«tpplie<f by amendment: Proceeds—Toward

payment of outstanding short-term notes issued under
the Revolving Credit Agreement. Underwriters—Stone

May 29 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.-,
Proceeds—For mining and drilling expenses. Office—750i
Equitable Bldg., Denver,. Colo. - Underwriter—Columbia

June 20

—

—^41-18 38th St., Long Island City,

Stone

(7/10)

Webster Securities Corp.; White; Weld &
Halsey, Stuart & Co. Inc., all of New York. /

held

—

Price—To be

&

—

stockholders.

notification) 171,000 shares of capital
stock (par 10 cents).
Price—$1.75 per share. Proceeds
—To pay obligations, to buy
equipment and inventory,
and for v/orking capital.
Business
Manufacture and
Office

Inc., Denver, Colo.

Tulsa, Okla.

June

sign.

Underwriter—

Skiatron Electronics & Television Corp.
March 16 filed 470,000 shares of common stock

St., Reno, Nev.

sale of color-illuminated

*

,

Underwriters

////

June 15 filed $30,000,000 of debentures due Jan.

Pacific Power Co.

purposes.

common

-

Tennessee Gas Transmission Co.

-proceeds—Fo^working capital, etc.

then

^

Wash.

and three shares of preferred stock.:

Securities Corp. and Dean Witter & Co.

Underwriter—Utility Investments, Inc., Reno, Nev.

<

Office—
El Paso, Tex. Underwriter—None.

J6sephine St., Denver, Colo.

shares

par

Uranium Corp., Spokane, Wash.
,
March 1 (letter of notification) 1,000,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For mining expenses.
Office — 422 Paulsen
Bldg., Spokane, Wash. Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,

(with an oversubscription:;
privilege); rights to expire on July 6, 1956. Price—$20;
per share. Proceeds—To repay bank loans made for con¬

j-

Radalite Corp.
8 (letter of

ten

At

($l: per share). Proceeds — For
mining expenses. Office—Continental Bank Bldg., Salt
Lake City, Utah.
Underwriter — Coltharp Investment
Inc., Salt Lake City, Utah.
!
;
^ .
v
—

Target

incident

1 filed 62,576 shares of common stock
(par $7.50)
being ofered for subscription by common stockholders
of record June 21, 1956 at the rate of one new share for

Feb. 14 (letter of notification) 500,000 shares of common
stock.
Price—At par (10 cents ner
share).
Proceeds—
For mining expenses.
Office—573 Mill

•

share heldr

expenses

June

Uranium Corp.

Securities, Inc., Denver 2, Colo.
P.

common

vestment Co.,

Underwriter—Skyline

and

-

Shangrila Uranium Corp.
*/
Dec. 30 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—
For mining expenses. Underwriter—Western States In¬

March 21 (letter of notification) 6,000,000 shares of com¬
mon stock (par two cents).
Price—Five cents per share
Proceeds—For mining expenses.

ft.

.

Price

,

common

Proceeds—For

Intermountain Securities.

Stock Option Plan,
Federal

share of

Office—257

(par $2)

for sale to certain employees pursuant

Prudential

share for each

share.

Price—$4 per umt

Price—$18.75 per sharsKto stock¬
holders; $20 per share to public. Proceeds—For working
capital and expansion program. Office—1714 No. Salina
St., Syracuse, N. Y. Underwriter—George D. B. Bonbright & Co., Rochester, N. Y.

offered

Sweet Corp. (Utah) i
/ • // : / /;
May 7 (letter of notification) 300,000 shares of

manufacturing and sales of carbon dioxide.

share for

held.

company's

.

-

(letter of notification) 15,000 shares of common
(par $10) to be offered for subscription by stock¬

holders of record June 20 at rate of

the

260,000 to purchase and retire the 2%% debentures nowoutstanding, and $40,000,000 will be used to prepay out*
standing bank loans; also for construction of new build*
ing. Underwriter—Dillon, Read & Co/ Inc., New York*

Security Casualty Insurance Co.
;
May 10 (letter of notification) 30,000 shares of common
stock (par 30 cents) and 90,000 shares of participating
preferred stock (par 50 cents) to be offered in units of v

June 14

to be

new

per

1600 East Eleventh St.,

• Porter-Cable Machine Co.

shares

(par $1)
by common stockholders
basis of one new share for

Co., El Paso, Texas
Feb. 27 (letter of notification) 30,700 shares of common
stock to be offered for subscription by stockholders on

Ave., North, St. Petersburg, Fla. Underwriter
—Eisele & King, Libaire, Stout & Co., New York.

14

the

on

.

//:/;■"//////•'

Schwartz Carbonic

St. & 22nd

each

12

1
^

-A Superior Oil Co., Los Attgeles, Calif. (7/18-19)'h
$60,000,000 of debentures due July 1, 1981. /
Price—To be supplied by amendment.
Proceeds—$14,-

stock.

8,000 shares of class A
stock (par $1).
Price—At the market (maxi¬
$6). Proceeds—For working capital. Office—34th

Stock

July

./

June 28 filed

New York.

common
mum

record

\

•

$675,000 for acquisition of .stock of /
Thomas Jackson & Sons, Ltd; and repayment of advances
to Supercrete by John Jackson; approximately $200,00()
for expansion of production facilities; $90,000 for
pay-*V
ment of term bank loans; and approximately for working /
capital. Business — Manufacturer of concrete building:
blocks, concrete pipe, pre-cast and prestressed concrete
building products, and other items. Underwriter—Straus; \
Blosser & McDowell, Chicago, 111/:
;;///

/

,

H

r

—Approximately

obligations and for general corporate purposes.
Office—Houston, Tex. Underwriter—White, Weld & Co.,

Industries, Inc., St, Petersburg, Fla.

(letter

<

Co., Inc./Spokane, Wash, f

A- Supercrete, Ltd., St. Boniface, Manitoba, Canada
June 28 filed 245,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds.

certain

Price—

,

writer—None.

each four shares held; rights to expire on July 23. Price
—To be supplied by amendment. Proceeds—To discharge

Underwriter—H. Kook &

Co., Inc., New York.

;

t

.

/ Sun Oil Co., Philadelphia, Pa. '//•/:
April 18 filed 229,300 shares of common stock. Price—At /
the market.
Proceeds—To selling stockholders. Under¬

for subscription

offered

be

of

price on the American Stock Exchange.
Proceeds—For exploration, drilling and development of

in Israel.

writer—W. T. Anderson &

San

to

To be the market

oil and gas acreage

Underwriter—None.

•

•

notification) 920 shares of 6% cumula®
® inr® "
7 *; . ~V
tive non-voting preferred stock ($100: per share) and.
2,160 shares of common stock (par $10).~ Price—Of pre^;,
ferred, $100 per share; and of common, $15 per share.-/
Proceeds—For improvements and working capital.
Of*;.
fice—909 West Sprague Ave., Spokane, Wash.
Under-

Jacinto Petroleum Corp. (7/13)
June 20 filed 298,410 shares of common stock

"

-

Inc., Spokane, Wash.

f. u*

Rogosin Industries, Ltd. (New York)
June 4 filed 75,000 shares of common stock (par $100),
and $7,500,000 of 20-year 3% debentures due May 1,1976, ,
This includes 5,000
common- shares
and $500,000 of
debentures to be received by Beaunit Mills, Inc. in pay- j
ment for rights to manufacture viscose rayon yarns.
Price—At par or principal amount. Proceeds—For cap¬
ital expenditures, working capital and other corporate

& Co. Bids—To be received up

Underwriter--;

Feb. 2 (letter of

'/

Co. and Dean Witter & Co.
11 at Room

Suburban Land Developers,

Republic Cement Corp., Prescott, Ariz. (7/18)
April 20 filed 965,000 shares of capital stock. Price—$10
per share. Proceeds—For construction of plant, working
capital and general corporate purposes. Underwriter—
Vickers Brothers, New York.
/."«*/ :•////; / »''

Offering—Indefi¬

Co., Inc., and Hornblower & Weeks.
nitely postponed.
•
•/,;

EL

Hacienda, Inc., Inglewood, Calif.
'
4,000,000 shares of common stock. Price—
At par ($1 per share); Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilitlea
and for general corporate purposes. Underwriter—Wil¬
ton & Bayley Investment Co.
./

April 10 filed $25,000,000 of debentures due 1971. Price
—To be supplied by amendment. Proceeds—For reduc¬
tion of short-term bank loans.
Underwriters—Blyth &

Proceeds—For,

expenses

Reno

,

Price—25 cents per share.
incident to mining operations.
Reynolds & Co.. Salt Lake City, Utah.
stock.

mon

exercise of options to be

Dec. 19 filed

mining expenses. Office —
Ore. Underwriter—None.'""' /
1

to be reserved on

are

granted to employees of company. Price—To public, $2
per share. Proceeds—The first $3,000,000 will be used to
purchase or organize a legal reserve life insurance company to be known as the "Reinsurance Company of the
o/m.+v,"*
romoinHor uriii
ho ncoH
irtr nthor onmnrato
South"; the remainder will be used for other corporate
purposes. Underwriter—Luna, Matthews & Waites.

Underwriter—Philip Gordon &

eral corporate purposes.

Strategic Metals, Inc., Tungstonia, Nevada *
"
(letter of notification) 1,200,000 shafes ol com-.

Jan. 4

May 25 filed 2,985,000 shares of common stock, of which.

Oak Mineral & Oil Corp., Farmington,

liov.

Thursday; July 5, 1956"

;

working capital.
Ga.

Office—285 Marietta St., N. W., Atlanta,

Underwriter—None.

;

'

U-Kan

Minerals, Inc., Topeka, Kansas
June 19 (letter of notification) 599,600 shares of common
stock (par 10 cents).
Price—50 cents per share.
Pro¬
ceeds—For mining expenses. Office—204 Central
Bldg.,
Topeka, Kan. Underwriter—E. R. Bell Co., Kansas City,
Mo.

Union

Chemical

&

Materials Corp.

May 25 filed 200,000 shares of

common stock (par $10).
supplied by amendment.
Proceeds—To
selling stockholders. Office—Chicago, 111. Underwriters
—Alien & Co., Bache & Co. and Reynolds &
Co., Inc.,

Price—To

be

all of New York.

Union
June ,18

July

1,

Offering—Temporarily postponed.

Electric Co.,

filed

1986.

construction

St. Louis, Mo. (7/17)
$40,000,000 of first mortgage bonds due
Proceeds—To repay bank loans and for
Underwriter—To

program.

be

determined

by competitive bidding.

Probable bidders: Halsey, Stu¬
Brothers and Bear, Stearns &
Co.
(jointly): Blyth & Co., Inc. and Union Securities
Corp. (jointly); The First Boston Corp.; White, Weld &

art

&

Co.

and

Co.

received

Union

Inc.; Lehman

Shields
up

&

to 11

Tank

Co.

a.m

Car

.

(jointly). Bids—Expected to be
(EDT) on July 17.

Co.

-June 4 filed 335,714 shares of capital stock
(no par) being
offered for subscription by stockholders of record June

22, 1956

on

the basis of

one

new

share for each

seven

Volume 184«

Number 5548!The Commercial and Financial Chronicle

shares held; rights to expire on
July 9, 1956. Price—
$29 per share/ Proceeds^—For working capital and gen¬
eral corporate purposes;
Underwriters—Smith, Barney
&

to be offered is

June 27

(letter of notification) 30,000 shares of common
stock. Price—$10 per share.. Proceeds—For
mining expenses.
Underwriter—None.
,

,

.

date
**

For expenses

incident to oil production.

Jacinto

Building, Houston, Tex.
Co., Houston, Texas.

Office

★ Wheeling Steel Corp.
June 29 filed 100,000 shares of

San

—

★

Underwriter—Mickle &

I U. S.

Fiberglass Industrial Plastics, Inc. '
(letter of notification) 150,000 shares of con¬
vertible preferred stock (par $1) and 30,000 shares of
common stock
(par 10 cents) to be offered in units of
,

five shares of preferred stock and one share of
stock first to stockholders.
Price—To

common

stockholders, $9
unit; and to public, $10 per unit.
Proceeds—For
capital improvements and general corporate purposes.

Office—Norwood, N. J.

Underwriter—None.

:

United States Life Insurance Co. of N. Y.
June! filed 650,064 shares of capital stock

•

(par $2), of

which 100,000 shares are
being offered by the company
for subscription by stockholders of record June

7, 1956

the

at

rate

of

one

new

share

for

each

10

shares

then

held;

subscription warrants will expire at 3:30 p.m.
on July 9, 1956 (of the 100,000 shares, the Con¬
companies have agreed not to exercise their
subscription warrants which total 75,006 shares).
Of

(EDT)

tinental
the

remaining 550,064 shares which are presently out¬
standing, 310,476 shares are to be sold for the account
of

Continental
of

account

Casualty Co. and 239,588 shares for the

Continental

Assurance

Co.

Continental

Casualty is the

owner of 510,476 shares
(51.047%) and
Continental Assurance Co. 240,000 shares
(24%) of the

outstanding United States Life Insurance Co. stock. Price
—$26 per share. Proceeds—To company, to be invested
in income producing securities.
Underwriters—William
Blair

&

Carl

and

Co., Chicago, 111.; and The First Boston Corp.
M. Loeb, Rhoades &
Co., both of New York.
•

;

/

Universal

V

Fuel

h

&

Chemical Corp. "
May 17 (letter of notification) 300,000 shares of capital
stock. Price—At par ($1 per
share). Proceeds—For min¬
ing expenses. Office—825 Broadway, Farrell, Pa. Under¬
writer—Langley-Howard, Inc., Pittsburgh, Pa.
★ Universal Investors, Inc., Shreveport, La.
June 27 filed

300,000 shares of common stock (no par).
Price
$5 per share. Proceeds
To organize a new
wholly-owned legal reserve life insurance company un¬
—

der

—

Louisiana

laws.

Underwriter—Frank

Inc., Shreveport, La.

'

Keith

&

Co.,

;

Uranium Exploration

Co., Salt Lake City, Utah
(letter of notification) 77,875 shares of common
(par 25 cents).. Price—-$1 per share,.; Proceeds—
For mining expenses.
Office—538 East 21st South St.,

Feb. 13
stock

Salt

Lake

Cify, Utah.. Underwriter
or ments, Salt Lake City, Utah.
•'

—

Pioneer

Invest¬

stock

,

,

Chattanooga, Tenn.

(7/9-13)

—For mining expenses.
Salt Lake City, Utah.

,

class B

$6.84

Maison

Proceeds—For

l-for-7 basin.

a

June
to

25

be

filed

holders.

It is not

be

sold

ceeds—For

underwriter.

Woods Oil & Gas Co., New Orleans, La.
Aug. 29 filed 400,000 shares of common stock (par $1).
Price—$5 per share.
Proceeds—To retire outstanding
obligations. Underwriters—Woolfolk & Shober and How¬
ard, Weil, Labouisse, Fredricks & Co., both of New
Orleans, La>~ Offering—Tentatively deferred. Statement

Denver, Colo.
same

Underwriter

—

Amos

C.

Sudler

&

Com

s ~ *

city.

Vance
Jan. 24

(letter of notification) 7,000 shares of common
(par one cent). Price—-$7 per share. Proceeds^—
selling stockholders. Office
2108 Jackson Ave.,

stock
To

—

Evanston, 111. Underwriter—Arthur
Inc., Chicago, 111.

*

/••'

-

M.

Krensky & Co.,

Ward Industries Corp. "

March

9

cumulative preferred
stock, series A
shares of common stock

-

«

in cash for each

,

Prosperity preferred share. This offer,
which |is limited to acceptance
by 3,000 Prosperity preferred shares, is alternative to the right to receive in¬
stead $100 per Prosperity preferred share.
Washington Natural Gas
June
mon

18

shares held; rights to expire on July 23. Price—To be
supplied by amendment. Proceeds—For expansion pro¬
gram. Underwriter—Morgan Stanley & Co., New York.

shares
per

of

com¬

share. Pro¬

working capital. Office — 217 Washington
Ave., Clarksburg, W. Va. Underwriters—Barrett Herrick & Co., Inc., New
York, N. Y. and Ross, Borton &
Simon, Inc., Cleveland, Ohio.
West

Jersey Title & Guaranty Co.
(letter of notification) 10,000 shares of common
(par $10) of which 8,000 shares are first to be

offered for

a period of 30 days in
exchange for outstand¬
ing preferred stock on a 2-for-l basis; any shares re¬
maining will be offered to common stockholders. Price—
$25 per share. Office—Third and Market
Sts., Camden,

N. J.

Underwriter—None.

Western

Massachusetts Companies
May 29 filed 102,237 shares of common stock (par
$1),
of which 92,237 shares are
being offered for subscription
by common stockholders of record June 21 on the basis
<

-of

one new share for each 12 shares held;

rights to expire
The remaining 10,000 shares are
being of¬
employees. Price—$37.50 per share. Proceeds
—To repay bank loans and for
construction program.
Underwriters—The First Boston Corp. and
White, Weld
& Co., both of New York.
on

July

fered

9.

to

Western
Feb.

Etock.
a

Securities Corp. of New Mexico
(letter of notification) 50,000 shares of common

13

Price—At par ($1 per

dealer

or

share). Proceeds—To start
brokerage business. Office—921 Sims Bldg.,

Albuquerque, N. M.

Underwriter—None.




in

ufacturing Co.

the basis of

one share of Youngstown
Emsco; offer will expire on
presently owns 388,853 shares,
representing 84.94% of the 457,786 outstanding shares of

for

8.

Emsco

on

three

each

Aug.

shares

of

Youngstown

stock.

common

,

.

Feb.

20

it

reported

per

share.

Proceeds

—

Price—Around $4.25

For expansion program.

Under¬

writer—Arthur M. Krensky & Co., Inc., Chicago, 111.
American
June

14

merger

it

Petrofina, Inc.
was

with

announced

that

proposed
Petro¬

of

Belgium and to Canadian Petrofina the oppor¬
tunity to subscribe to additional "A" stock of American
Petrofina.
Price—$11 per share. Underwriters—White,
Weld

&

Co.; Blyth & Co., Inc.; and Hemphill, Noyes &

Co.

April 30 it

was

Electric Co.

reported company plans to issue 25,000

shares cumulative preferred stock (par/ $100). Proceeds
—To reduce bank loans. Underwriter—To be determined

by competitive bidding.

in the

second

half

mined.

v:

It is also possible, if favorable money conditions
prevail at the time, that some* portion of the 1957 re¬
quirements for new money may be obtained in the
second half of this year. Underwriter—To be determined
by competitive bidding. Probable bidders: (1) For bonds
—Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and
C. Allyn & Co. Inc. (jointly); Salomon Bros. & Hutzler;
Blyth & Co., Inc., Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Blp.ir & Co.
Incorporated; Equitable Securities Corp. (2) For pre¬
ferred stock—Lehman Brothers and Bear, Stearns & Co.
.

(jointly); Blyth & Co., Inc. and The First Boston Corp.
(jointly); Kidder, Peabody & Co. and Union Securities
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane.
(3) For common stock—Blyth & Co., Inc., Merrill Lynch^,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly); Glore, Forgan & Co.; The First Boston
Corp.; Lehman Brothers and Bear, Stearns & Co. (joint¬
ly). Common stock will probably be offered first for
subscription by stockholders.
Transmission

Coastal

Corp., Houston, Texas
application has been filed
with the FPC for construction of a 565.7 mile pipeline
Feb. 29 it

announced

was

an

Underwriters—May be Leh¬
York.

system to cost $68,251,000.

Brothers and Allen & Co., both of New

man

Columbia Gas System, Inc. (10/2)
15 it was announced company may

Credit

Commercial
March 12 it

issue and sett

$25,000,000 of junior subordinated deben¬
Kidder, Peabody & Co. and The
both of New York.

Underwriter

tures.

Corp.

reported company plans early registra¬

was

tion of about

—

First Boston Corp.,

National Bank Shreveport, La.
a plan to issue and sell
31,000 additional shares of capital stock
(par $25) on the basis of one new share for each 4.8064
shares held as of record June 26, 1956.
Price—$52 per
share. Proceeds—To increase capital and surplus.

June
to

Probable bidders: W. C. Lang-

ley & Co.; Stone & Webster Securities Corp.; Salomon
Hutzler; Kidder, Peabody & Co.; Harriman Rip¬
ley & Co. Inc. Bids—Expected to be received sometime
in July.

Bros. &

Braniff Airways, Inc.
April 11 company authorized an offering to stockholders
of
1,105,545 additional shares of common stock (par
$2.50) on the <\basis of three new shares for each five

shares held
(with an oversubscription privilege). On
May 24, the company announced the number of shares

26

stockholders approved

stockholders

Consolidated
June
sell

Blackstone Valley Gas &

securities

of

ic Commercial
following

Panhandle Oil Corp., American Petrofina,

Ltd. will offer to stockholders of Panhandle and
fina

timing

sale

The class of security to be sold and the
of the transaction have not been deter¬

ed to be received on Oct. 2.

Miami, Fla.
early registration is expected

of 150,000 shares of common stock.

this year.

exact

Products Corp.,
was

rT"'

Co.

$30,000,000 of debentures. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders: Halsey„
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expectr-

Prospective Offerings
Air-Vue

Service

Public

Feb.

,

Jan. 23
stock

Sheet & Tube Co.
shares of common stock(no par)being
exchange for common stock of Emsco Man¬

June 5 filed 22,977

offered

Illinois

"

Manufacturing Co.

(7/6-9) : *
June 14 filed 271,167 shares of capital stock (par
$10)
vto be offered for subscription by stockholders of record
July 6 on the basis of one new share for each seven

Co.

(letter of notification) 187,500
(par 10 cents). Price—$1.25

stock

ceeds— For

,■

& Towne

Youngstown

(letter of notification)

12,000 shares of $1.25
(par $25) and 1,500
(par $1) being offered in exchange for 5% cumulative preferred stock (par $100) of
*The Prosperity Co. on the basis of four Ward
preferred
shares, one-half share of Ward common stock and $1.05

*

of

properties, and in exchange

ceeds—To acquire properties. Underwriter—None.
Yale

Industries, Inc., Evanston, III.

uranium

Corp., New York.

obtained from the

*

of certain

owners

11.

Light Co.

May 16, M. S. Luthringer, President, said the new money
required to finance the company's 1956 construction
program is estimated at about $5,000,000 and will be

Nov. 10 filed

are

Peabody As
Lynch, Pierce, Fenner & Beane (jointly>.

Illinois

Central

of

for such working interests and properties. Price—Shares
to be valued at an arbitral^ price of $4 per share. Pro¬

=.y

Halsey, Stuart & Co Inc.; Kuhn, Loeb &

was

Securities

expected that

effective Feb. 28.

(9/11)

Light Co.
reported company plans to issue and sell
80,000 shares of cumulative preferred stock (par
$100) later this year. Proceeds — To repay bank loans
and for new construction. Underwriter—May be Union

immediately.

lease

Light Co.

about

more than 42,510 shares
Price—$10 per share. Pro¬
plant and purchase of eqiipment.
Office—Phillips, Wis. Underwriter—None.

will

&

announced company plans to issue jaxid

Illinois

Central

May 14 it

74,016 shares^of common stock (par $5)
initially for sale to the present stock¬

offered

con¬

May 14 it was reported company plans to issue and sell
$18,000,000 first mortgage bonds in 1957. Proceeds—For
construction program.
Underwriter—To be determined
by
competitive bidding.
Probable
bidders:' Halsey,
Stuart
&
Co.
Inc.; Morgan Stanley & Co.; Kuhn,
Loeb & Co.;,Union Securities Corp.; The First Boston
Corp.; Harriman Ripley & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly).
/

*

Inc.

bidders:

Central

working capital. Office
Underwriter—

Products,

Power

Bids—Scheduled for Sept.

of

Wood

then favorable. Proceeds—For

are

was

Co. and Merrill

($1,000 per debentures). Proceeds
a golf house
and other improve¬
Underwriter—None.

Wisconsin

an offering
market and

Securities Corp.; Blyth & Co., Inc.; Kidder,

Price—At par
construction

if

Co. and A. C. Allyn & Co. Inc. (jointly); W. C. Langley
& Co. and The First Boston Corp. (jointly); Equitable*

Price—

covered by an option held by the
Price—10 cents per share. Proceeds—For
mining expenses. Office—310 First National Bank Bldg.,

Uranium

30 (letter of
stock, which

mon

:

able

Wilmington Country Club, Inc., Wilmington, Del.
April 2 filed $1,500,000 of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club.

plans

1956,

in

sell $15,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬

Road, Cincinnati, Ohio.

—For

company

late

bonds

program.

March 22 it

None.

ments.

;

.

_

on

announced

was

mortgage

Carolina

Office—547 East 21st South St.,

stockholders

share.

per

—3500

,

Underwriter—To be determined by
bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Shields & Co.; Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co. (jointly); Blyth
& Co.,
Inc.; The First Boston Corp. and Salomon Bros.
& Hutzler (jointly); Lehman
Brothers; White, Weld &
Co.
"!■

Co., Cincinnati, Ohio
(letter of notification) 20,666 shares of class B
stock (par $1) to be offered for subscription
by

common

ex¬

competitive

Williamson
common

it

struction

Underwriter—Empire Securities

Corp., Salt Lake City, Utah.

14

first

other conditions

Uranium Corp.

Corp., Denver, Colo.
'*
notification) 200,000 shares of com¬

Jan.

V

of

Wycotah Oil & Uranium, Inc., Denver, Colo.
1,500,125 shares of common stock (par one
cent) to be offered only to the owners of percentages of
working interests in certain oil and gas leases and to the

Utco

!

May

Feb. 13 (letter of notification)
15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share).
Proceeds

20

25

Underwriter—Cruttenden & Co., Chicago, 111.

be used to retire outstanding series A and series B 5%
first mortgage bonds, and for expansion program. Under¬
writers—Hemphill, Noyes & Co.,. New York; Courts &
Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn.

Feb.

-

Eastern Aviation, Inc.
it was reported that early registration is

California Electric Power Co.

Whetand Co.,

White Sage

poses.

pected of $2,900,000 6% convertible debentures due 1968w

—

per

;

general

corporate pur¬
Underwriter—F. EberstatR & Co., New York.

June
common

a

May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1, 1976, and 136,000 shares of common
stock (par $5). Of the latter, 75,000 are to be offered for
the company's account and 61,000 shares for a
selling
stockholder.
Price
To be supplied by
amendment.
Proceeds—Together with proceeds from private sale of
$1,500,000 4%% first mortgage bonds and $900,000 of
3-year unsecured 4^% notes to a group of banks, will

March 19

Proceeds—For 7

* California

(par $10),
restricted "Stock Option Plan" to
key employees of company and its subsidiaries.
be offered under

"to

.

expected to be reduced and the offering

extended.

,

111
*
Union of Texas Oil Co.,
Houston, Texas
Jan. 19 (letter of notification)
240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—

"

.
.

★ Westore Exploration Co., Ostium, Idaho

Co., New York, and Blunt Ellis & Simmons, Chicago,

37

(97)
v

.

12

it

was

Natural

announced

Gas

Co.

company

(8/28)

plans to issue and

$30,000,000 of debentures due 1981. Underwriter—
To be determined by competitive bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co. and The First Boston Corp (jointly); White, Weld
& Co. and Paine, Webber, Jackson & Curtis (iointlyL
Bids—Expected to be received up to 11 a.m. (EDT) on
Aug. 28. Registration—Now planned for July 16.
■

Consumers

Power Co.

(8/14)

June 19 company filed an application with the Michigan
P. U. Commission for authority to issue and sell $40,000,000

of

first

mortgage bonds to mature not earlier than

June 1, 1986. Proceeds—For reduction of bank loans and
for new construction. Underwriter — To be determined,

by competitive bidding. Probable bidders: Halsey,

Continued

on

Stuart

page

3$

58

The Commercial and Financial Chronicle

(98)

Continued front page

£ Illinois Bell Telephone Co. (8/31)
June 29 it was announced the company plans to offer to
its stockholders 580,531 additional shares of capital stock
at rate of. one* new share for each eight shares held as
of Aug, 31; rights to expire, on Sept 28. About 99.3% of
the presently outstanding stock is owned by American
Telephone & Telegraph Co. Price — At par ($100 per
share). Proceeds—To repay advances -from parent. Un¬

37

& Co, Inc.; Harriman Ripley &
Boston Corp. (jointly); Morgan

Co. Inc. and The First

Co.; White,

Stanley

Weld & Co. and Shields & Co.

(jointly). Bids—Scheduled
(EDT) on Aug. 14. Registra¬

to be

opened at 11: 30 a.m.
tion—Expected on July 20.

Crane Co., Chicago, III.
F. F. Elliott, President, on March

—Kuhn, Loeb & Co., New York.

'Kaiser .-Steel Corp.
a
'
.
was announced that the company is arranging

$100,000,000 from institutional investors to
expansion program to involve ap¬
proximately $113,000,000. Underwriter—The First Bos¬
ton' Corp., New York.
/.\-v'\
''.
Kansas

April

Broadcasting Corp.
announced that

corporation! following Is¬
'

Laboratories, Inc. of 944,422 shares of common stock as
a dividend, contemplates that additional shares will be
offered to its stockholders.
This offering will be un¬
derwritten. Kuhn, Loeb. & Co. and Van Alstyne, Noel

half of 1957).

nancing

some

years

ago.

Stockholders of Laboratories

Oct. 10 approved formation of Broadcasting firm.
Eastern Shopping Centers,

May 7 it

^

..

*

up to noon (EDT) on July 11 for the purchase from it of
$4,020,000 equipment trust certificates due semi-annually
'from:,Feb. 1,^1957 to Aug. 1, 1971, inclusive. Probable
bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. i&

*

11,* John H. Clough, President, announced that
working capital financing will be required in the near
future. Underwriter—Glore, Forgan & Co., New York.

* Fort Neck National Bank

(L. I., N. Y.)
plans to offer to its
Stockholders 79,560 additional shares of new capital stock
(par $5) on the basis of one share for each V-k shares
Bank

$37,000,000.

^■■.' yy. -/i-

■

X^yy'.y^y,^:

.

.

>.

rights to subscribe for additional capital
stockyfollowing proposed 2-for-l split up to be voted
upon; Aug; 3). Underwriter—Morgan Stanley & Co., Neto
stockholders

r

Underwriter—Blyth & Co., Inc.,

on

General Acceptance Corp,
April 2 it was reported company plans to issue and*
sell $15,000,000 of debentures due in, 1966, $10,000,000*
Of capital debentures due in 1971 and about $3,500,000

^

preference stock (par $20) to be offered first to. coint stockholders Underwriters — For any preferred
'

■

may

pfaced

be

privately.

1 :

Northern Natural Gas Co.

Bank,' West Hempstead,

New York

Lie

/|SilLynS Pil^ceFW^'lSe
12 it

,

...

was

;

y

,

reported company plans to finance Its

...

....

was

announced that the stockholders
w

-

Registration

Louls, Mo.

:

April 18 it

was announced that company plans $5,000,000
additional financing in near future. Proceeds—To
go to
Securities Investment Co., a

Nov

V

13

yrttfor construction program. Underwriter—To be deterbidding. Probable bidders: Halsey,
& Stuart & Co. Inc.; Blyth & Co., Inc. and The First Boston
i'gbrp.. (jointly); Merrill Lynch, Pierce, Fenner & Beane,
f;Kidd6r, Peabody & Co. and White, Weld & Co. (jointly);
I Suitable Securities Corp. and Union Securities Corp.

.g.^efcby competitive

U(jointly); Smith, Barney & Co.; Lehman Brothers and

"

Metropolitan Edison Co;
: •
<joi9«y);
Glore, Forgan & Co. BidsApril 16 it was reported company may issue in July •jS*.Pe<sfed to be received on Sept 12.
,
.■
0? August, depending
wNorwalk Truck Lines, Inc.
upon market conditions, about
$5,000,000 of preferred stock (in addition to about $5,000,- vJnneS it was announced company has applied to the IOC
000; of i>onds)., Underwriter — For preferred stock also, ;
fqr authority to issue and sell $2,000,000. 10-year -5$/
to be determined by competitive bidding. Probable-bid- «
rt>hvertible debentures (to be" convertible into claiss "B
ders: Smith, Barney & Co, and Goldman, Sachs & Co
|cqmmOn stocky par ^$1; beginning June 15, 1957). Fro(jointly); Salomon Bros. & Hjitzler; Harriman Ripley, &
fl^eeds^Abbut $1,000,000 for working capital and the reCo. Inc. and Union Securities Corp, (jointly); Kidder,!
mainder to be advanced to Shirks Motor Express Corp.,
Peabody & Co. and Drexel & Co. (jointly); The First
Lancaster, Pa.
Underwriter — The Ohio Company,
Boston Corp,,
/•
gplumbus, Ohio... ...;.■
.V'-•, ';'•.
Michigan Bell Telephone Co,
•fe Offshore Gathering Corp., Houston, Tekas
April 19 company applied to the Michigan P. S. Com¬
Nov; 18 David C. Bintliff, President, announced,, com¬
mission for permission to issue and sell $30,000,000* of
pany has filed an application with the Federal Power
40-year debentures later this year. Proceeds—For con¬
Commission for a certificate of necessity to build: a
struction program. Underwriter—To be determined by
,

Underwriters;—P.aine, Webber, Jack-.
Corp.

^ part of which is expected to include 371,155 shares
>

Blair,&^Co.(

National

Meadowbrook

was reported that company is considering the
$10,000,000. first mortgage bonds due 1986. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
& Co. (jointly); The First Boston Corp* Bid?—Expected

*

subsidiary.

■

Inc.

Proceeds—To be

sale of

following 2^2-for-1 split of the present out¬
standing $12.50 par stock to be voted upon July 9. Pro¬
ceeds—To provide additional banking facilities in Nassau
and Suffolk Counties in Long
Island, N. Y.

G. H. Walker & Co., St.

•

'

-

July 2 it

to be owned

General Contract Corp., St.

y\-

12 will vote on

June

of coinmon stock..

J

Hutzler.

'v',^Nprth American Aviation,

York.

June 25 it

Instrument Corp.

ion & Curtis and Union Securities
—ExDected late in 'May.

-

on v
^
July W£?6 construction program (costing about $40,000,0(K»)
through issuance of debt securities and treasury funds.
approving a proposal to offer to stock¬
Underwriter—Probably Blyth & Co., Inc.
holders 104,500 additional shares of capital stock (par
$5) on a l-for-13 basis. Proceeds — For expansion. Un¬ i f- Northern States Power Co., Midn. (9/12) :
5 ,
derwriter—Lee Higginson Corp., New York.
^July. 2 it was reported company plans to issue and sell
•
000,000 of first mortgage bonds due 1986. Proceeds
Metropolitan Edison Co. (.11/13)

York.

announced

/

March 13 it was reported company plans to spend about
#52,000,000 for new construction in 1956 and 1957. ($29,'000,000 in 1956 and $23,000,000 in 1957). Of the total
about'$30,000,000 will be obtained from new financing;

Eternalite, Inc., New Orleans, La,
May 28 it was reported company plans to issue and sell
/
about 200,000 shares of class A stock. Price — Around
$4.50 per share. Underwriter —Vickers Brothers, New :

was

Underwriter-*-None. :.C-/> #

New. York, Chicago & St. Louis RR. (7/11)

Bids will be received by this company in Cleveland, O.,

Long Island Lighting Co.
April 17 it was announced company plans to Issue arid
-,1
±
connnrtnnn
* nnn nnn
sell next Fall $20,000,000 to $25,000,000 first mortgage
bonds.' Underwriter — To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & do. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc. and The First
Boston- Corp. (jointly);
Incorporated and
Baxter, Williams & Co. (jointly); Smith, Barney & Co.

Underwriters—Morgan Stanley & Co. and
W. E. Hutton handled new financing by Grand Union
Co. in 1954.
..v;.

it

share for each five shares held

new

.^ Northern Indiana Public Service Co.

New.

terson, N;J.

June 28

rate of one

Aug. 29. American Telephone & Telegraph Co.
69.21% of outstanding stock, proceeds—To repay

temporary borrowings.

^

-

&

England Telephone & Telegraph Co. ($/29)

used to pay for further expansion, estimated to cost an

announced this company has been formed
to locate and develop shopping centers east of the
Mississippi, the funds to come from an offerings- st^ck,.
one-third to Grand Union Co. and the balance rtof be
offered to Grand Union stockholders. Office—East Pat¬

Fairchild Camera

issue and soli
during October

additional

Inc.

was

_

of

-owns

$

^
Nov. 22 it was announced that the company plans fur¬
ther financing, the nature and extent of which has not
yet been determined, except it is not the present inten¬
tion to sell additional common stock.

,

bonds

June. *8, it was announced company plans to offer to its

nimberly-Clark Corp., Neenah, Wis.

Ac Co. handled Du Mont Laboratories class A stock fi¬
on

as

City Power A Light Co.
approved a proposal Increasing

The First
Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp. (jointly); Lehman Brothers
and Rear, Stearns & Co. (jointly). Amount and timing
has not yet been determined (probably not until first

mortgage

an offering to stockholders
§13,010 additional shares of capital stock (par $100)

at the

Probable bidders: Halsey, Stuart & Co. Inc.;
Boston Corp. and Blyth & Co., Inc. (jointly);

Dec. 2 to stockholders of Allen B. Du Mont

suance,on

of

bonded indebtedness of the company by $20,000,000, Un¬
derwriter— To be determined by competitive bidding.

Dolly Madison International Foods Ltd.
was announced that Foremost Dairies, Inc.
intends at a future date to give its stockholders the right
to purchase its Dolly Madisen stock.
Underwriter—
/Allen & Co., New.,York,; '
■
'

first

to

June 20 directors authorized

:

stockholders

24

of

plans

Underwriters—To be determined by competi¬

New

borrow

finance its new major

Nov. 15 it

was

;

;

May 21 it

r

,

announced company

bidding.
Probable bidders:
Halsey, Stuart & Co*
Inc.; Kuhn, Loeb & Co., Salomon, Bros. & Hutzler, Union
Securities Corp. and Wood,' Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

,

rowings will probably provide for the remainder of the
$95,000,000 necessary this year to carry forward the com¬
pany's program of expansion of facilities." Financing
may be in form of 15-year debentures to common stock¬
holders. Underwriters—None, Offering—Tentatively ex¬

Du Mont

■

Ac

tive

(the method and amount has not yet been deter¬
mined). Proceeds—For expansion program. Underwriter

to

was

$10,000,000

April 26, Joseph L. Block, President, disclosed company
seek additional financing through sale of equity

President stated that "tenta-

England Power Co.

of 1956.

stock

•

Aug. 10 it

New
Jan. 3 it

will

tive plans are that about $60,000,000 will be obtained
from investors in 1950. Internal funds and bank bor¬

Lynch, Pierce, Fenner'& Beane, Kidder, Peabody
White, Weld & Co. (jointly).
/

Co. and

Inland Steel Co.

Detroit Edison Co.

pected in October,

The First Boston Corp.; Equitable Securities Corp.; Mer¬

18 stated in part: "To

present proposed capital expenditures,
It appears that some additional financing may be neces¬
sary." Underwriters—Morgan Stanley & Co. and Clark,
Bodge & Co.

Thursday, July 5, 1956

.

Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co, (jointly); Lehman Brothers;
rill

derwriter—None.

meet the cost of

Feb. 20, Walker L. Cisler,

'■*

..

1

Underwriter—

.Louis, Mo.

,

.

•

General

Public Utilities

Corp,

April 2, A, F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock. It is
also pos-

?

•

■

t,hat a hew issue of

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.

common slock will be offered

for subscription by common stockholders before
April,
1957. Proceeds—To repay bank
loans, etc., and for con¬

struction program.
General Tire & Rubber Co,
Feb. 24 stockholders approved

a proposal to
increase
2,500,000 from 1,750,000
stores and the authorized
preference stock to 1,000,000
from 350,000 shares; also a
proposal that any issue of
debentures may include a
privilege to convert into com¬

authorized

mon

common

stock

to

stock and permit the
company to issue warrants to

purchase

common

stock, provided the

total that may be
time does not exceed 600,000
shares. [The company expects to issue
23,000 additional
preference share!?—5,000 for acquiring stock ■ and
prop¬
erty and 18,000 for cash. Having
completed long-term
borrowing negotiations of $30,000,000 •• from insurance

outstanding at

any

one

^company expects to sell

$15,000,000 in debentures.]
body & Co., New York.
*

not more than

Underwriter—Kidder, Pea-

i,0oUf,Sl°" Texas Qas &

SSl 1
with the

FPC

Corp- Houston, Texas
announced an application has been filed
for
permission

to

construct

pipeline system to cost $105,836,000.
be Blyth & Co.,
Inc., San

a

961

mile

Underwriters—May

Francisco, Califrj and Scharff

Sc Jones, Inc., New Orleans, La.

ic Hudson Pulp & Paper Corp.
June 25 it

was reported
company may in the Fall do
public financing. Proceeds—For
expansion
Un¬
derwriter—Lee Higginson Corp., New York
some




'

Minneapolis Gas Co,
April 16 stockholders approved an increase in the
authorized common stock (par $1) from 1,700,000 shares
to 2,500,000 shares. Previous offer to stockholders was
underwritten by Kalman & Co,; St. Paul, Minn.
National Steel

Corp,
announced that it is estimated
that, total construction expenditures planned to start in
the "current year and to be completed in mid-1959 will
amount to a minimum of $200,000,000. Underwriters—
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; and
The First Boston Corp.
March 12 the company

Natural

F^b. 20 it

Gas

was

Pipe

Line Co^" of America

reported company plans to issue and

self

late this Spring $35,000,000 of first mortgage bonds due
1976.
Underwriter—If determined by competitive bid¬

ding, the following may bid: Halsey, Stuart & Co. Inc.;
White, Weld &' Co.; Lehman Brothers and Union Secu¬
rities Corp. (jointly).
New England

Jan.

3

it

was

Electric System

announced

company plans to merge its
subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into ene company

during 1956.

This would be followed by a $20,000,000
first mortgage bond issue by the resultant
company, the
name of which has not as yet been determined.
Under¬

writer

—

May be determined by | competitive bidding.

|864rinile submarine

gas pipeline off-shore the coast of
Louisiana from the Sabine River to the Gulf Coast, of
State of Mississippi. It is estimated that this gathersystem will cost approximately $150,000,000. Type
foUfinancing has not yet been determined, but tentative

:plaha call for private sale of first mortgage bonds and
public offer of about $40,000,000 oi securities (probably
nptbs, convertible into preferred stock at maturity, and
common

stock).

Underwriter—Salomon Bros. & Hutzler,

'York.'

#0^io

Power Co.

(10/17)

JUiy, 2 it was reported company plans to issue and sell

$£8,000,000 of first mortgage bonds due 1986. Under¬
be determined by competitive bidding. Prob¬

writer—To

ably bidders: Halsey, Stuart & Co, Inc.; The First Bosto^Corp.; Blyth & Co. Inc.; Kuhn, Loeb & Co.; Union
Securities Corp. and Salomon Bros. & Hutzler (jointly);
Harriman Ripley & Co. Inc. and Stone & Webster Secu¬

rities Corp. (jointly). Bids—Expected to be received up

tcj)l

a.m.

^Ghio

(EDT) on Oct. 17.

Power Co. (10/17)
>
July 2 it was reported company proposes to issue and
sell 60,000 shares of cumulative preferred stock (par
$100). Underwriter—To be determined bv competitive
bidding.
Probable bidders: The First Boston Corp.;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Union Securities
Corp. and Salomon Bros. & Hutzler (jointly); Harriman
Ripley & Co. Inc. and Stone & Webster Securities Corp.
(jointly); Lehman Brothers. Bids—Tentatively expected
to be received up to 11 a.m. (EDT) on Oct. 17.

VolUme 184 -Number 5548

.

.

The Commercial and Financial Chronicle

.

(99)

Oklahoma Gis & Electric
May 17 stockholders voted to

Co. .'•>!,
* -«•"
"
Puget Sound Power & Light Co.
increase the authorized
Feb. 15 the company announced that it Estimates that its
preferred Stock from
240,000 Shares to 500,000 shared and \ construction program for ' thb
years
1956-1959 will
the authorized
Common stock from
3,681,000 shares to
amount to $87,000,900, including $20,000,000 budgeted for
5,000,000 shares.. Company has no immediate
1956.
This large expansion, the company says, can be
plan to do
any equity
financing. Underwriters—(1) for any com¬
financed wholly by debt and from internal sources. Un¬
mon stock
(probably first to stockholders) — Merrill
derwriter—If determined by competitive
bidding, may
Lynch, Pieroe, Fenner & Beane.
include Halsey, Stuart & Co. Inc.; The First Bdston Corp.
(2) For preferred stock,
to be
determined by competitive
bidding. Probable bid- ■"« *. Rochester. Gas & Electric
bers: IVTerrill
Corp.
Lynch, Pierce, Fenner & Beane and
White,
Weld & Co.
May 16 stockholders approved a proposal to increase
(jointly); The First Boston Corp.; Lehman
the authorized preferred stock
Brothers and Blyth &
by,,100,000 shares (par
Co.; Inc. (jointly); Smith, BarnCy •
& Co.;
$100), of Which it is planned to issue 50,000 shares later
Kuhn, Loeb & Co.; Harriman
Ripley & CO. Inci ' in 1956. Underwriter
The First Boston Corp., New
''1 Pacific Northwest
Pipeline Corp.
York.
•
March 20 C. R.
■; /y'
Williams, President, announced that
Rochester Telephone Corp.
about 280,000 shares of
common stock (par
$1) are to be
sold in connection
May 28 it was reported company has applied to the New
with

-y

Was

common

were

entered into

April

of

1955..

at

subscription contracts which'
the time of the
original financing

Price—$10

per

Feb.

gether with funds from
private sale of $35,000,000 addi¬
tional, first mortgage
bonds, and $10,000,000 of 5.6%
iriterim notes and
borrowings from banks, will be used
tb construction
program.
Underwriters—White, Weld &
Co.; Kidder, Peabody & Co.; The Dominion
Securities
Corp.; and Union Securities
Corp.: Registration -=- Expected soon.::

; Pacific

May 31

;

'•

Telephone;

t

&

V

.

:'":\1

Telegraph Co.

the

(8/21)

""v 000,000 of
preferred

and

the

balance

from

1

*

Counties

Southern

Jan. 30 it

Gas

Co.

of California

the

•

reported company may in the Fall offer
$15,000,000 ?of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co.,/triC4 The First
Boston Corp.; White, Weld & Co.;
Merrill Lynch, Pierce,
was

•

United

June

issuance

.

pro

the

have

000

Proceeds—To help finance
Underwriters—For any debenture
determined by competitive
bidding;
probable bidders include
Halsey, Stuart & Co. Inc.; The
First Boston
Corp.; Kuhn, Loeb & Co., and Lehman
Brothers (jointly);
Morgan Stanley & Co. and Drexel &
Co. (jointly).
^

.

.

Spencer Telefilm Corp., Beaumont, Texas
Jan. 16 it was announced company plans to offer
pub¬
licly to Texas residents 75,000 shares of capital stock.
Price—$1.50 per share. Business—To produce, sell and
distribute syndicated films for television. Underwriter—
Porter-Stacy Co., Houston, Tex.
V
Co.,

&

.

corporate purposes.

.

it

4

Price—$2

.

■

Power Co.

(9/25)

Products, Inc., New York
reported

was

offering

70,000 shares of

over

writer—Granbery,.Marache
tion—Expected

&

is

*

expected

common

in

stock.

Co., New York.

near

Under¬

Registra¬

soon.

Washington Gas Light Co.

Inc.

:

;

June 7

<

was

announced

company proposes, to finance
construction of pipeline in Virginia to

new

cost about

$3,380,000 from funds generated by operations,
sale of common stock and
temporary bank borrowings.
Underwriter
The First Boston
Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.
\
—

\

'

it

proposed

Underwriter—Goldman, Sachs

Co., New York.

'

was

future of

Proceeds—To repay short-term bank loans and for
gen¬
eral

share. ""

June

May 28 it was announced company plans to offer pub¬
licly sometime this summer $30,000,000 of debentures.

-

future to offer to its 200 stockholders
500,shares of common
voting stock at rate
than 2,500 shares to each
stockholder. Un¬
stock will be offered to
public.

near

more

Vita Food

,

&

:

announced company plans to issue and
sell
of first and
refunding mortgage bonds.
Underwriter—To be
determined^ by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
& Co., American Securities
Corp. and Wertheim & Co.
(jointly); Salomon Bros. & Hutzler; Stone & Webster
Securities Corp.; White, Weld &
Co.; Union Securities
Corp. Bids—To be opened on Sept. 25.

Resources, Inc.

P.)

Underwriter—Kuhn,

$20,000,000

Co., Dallas, Tex.; and Mountain States Securities Corp.,
Denver, Colo.
;/■//>;.y y
•,
* ; •
y

(J.

several

that, if

Co., New York.

Feb. 6 it

Underwriter—None,

was

Stevens

of

one

issued, they will be offered

are

stockholders.

Virginia Electric &

.

ic Puerto Rico Water Resources
Authority (7/12)
July 2 it was announced that
Authority is planning to
offer $22,000,000 of
electric revenue bonds due
July 1,
1P58-I993, inclusive. Proceeds—For improvements. - Un¬
derwriters—The First Boston
Corp., Ira Haupt & Co.
and B. J. Van
Ingen & Co.
~
V
'

is

,

per

reported that the company plans to issue
1,000,000 shares of common stock. Price—Around
$5 per share. Underwriters — Southwestern Securities

—•

common

subscribed

and sell

r

debentures

additional

of not

and sale to stockholders later this year of some
additional common stock on a pro rata basis; (with an

securities to be issued and the time of
sale':
been determined;

&

to

plans in

suance

new

not

convertible

ic University Life Insurance Co., Norman, Okla.
June 21, Wayne
Wallace, President, announced compaiiy

-■

rSouthwestern

of

rata

Loeb

-

May 15 it

1958 construction program.

States Rubber Co.
H. E. Humphreys, Jr.j Chairman, stated that

convertible debentures

-

Public Service Electric &
Gas Co.
April 16, Lyle McDonald,
Chairman, estimated that re¬
quirements for new capital this
year will be approxi¬
mately $80,000,000 to $85,000,000. The
types and amounts
of.

Transmission Co.

possible methods the company has been
considering for
raising $50,000,000 to $60,000,000 which may be
needed
for plant expansion and
working capital. He added

,

construction program.
bonds
may be

29,

.

privilege).

Gas

used to complete the 1956 to

—

oversubscription

sell

v

artd operate a

y'

and

United I Humiliating Co., New Haven, Conn.
May 29, William C. Bell, President, announced that the
company proposes tb issue not more than $12,500,000 of
cumulative preferred stock (par $100), out of a
proposed
authorized issue of $20,000,000. Mdy be placfed
privately.
Proceeds—Together with short term bank loans, will be

subsidiaries of Southern Co., plans to issue debt securi¬
ties. Proceeds^-Together with other funds,; to construct

will offer to its
stockholders rights to subscribe for
540,651.75 shares of Pittsburgh
Rys. Co. Price—About $6
per share.
"
-.r" \ ; -

issue

—

$150,000,000 steam electric generating plant
on the Coosa River in Alabama.
Underwriter—May be
repay ;; determined by competitive
bidding.
Probable bidders:
tetnporary borrowings and for new construction. .Under-,
Halsey, Stuart & Co. Inc.; Union Securities Corp.,
whier—JNonb. y
:•
.'.l'"//Vf
'>!,v Equitable Securities Corp. and Drexel & £o, (jointly);
Pan Cuba Oil & Metals
Lehman Brothers; Harriman Ririley & COy'lnc. and Gold¬
Corp. (Del.)
^
April; 9, Walter E,
Seibert, President, announced that
man, Sachs & Co. (jointly); Blyth & Cor; Inc. arid Kidder,
company will soon file a registration
statement with the ; Peabody & Co. (jointly); Morgan S/anley & Co.
SEC
preparatory to an equity offering planned to take
4r Southern Nevada Power Co.
place later this year. Business—'To
explore, drill and- June 27 it was announced companl plans to sell in the
operate oil, gas and mineral
properties in the United
Fall of 1956 an estimated $4,000,(100 of first
mortgage
States, Cuba and Canada. Office—120
Broadway, New : bonds, series C, due 1986. Proceeds—For construction.
York, N. Y.:/r.
! 'S
vy'^'v'/ y Offering—May be placed privatelj
Pittsburgh Rys. Co.
Southern Union Gas Co.
May 4 it was announced that Standard
April 19 it was announced company is considering is¬
Gas & Electric
Co.
.

may

transcontinental Gai Pipe Line Corp.
April 17, Tom P. Walker, President, announced that ne¬
gotiations had been completed i'or the sale of $40,000,000
first mortgage pipe line bonds in
May and $20,000,000 of
debentures in November.' May be placed privately. Pro¬
ceeds—To retire presently
outstanding $60,000,000 bank
loan.
J
*
1
U-Kan Minerals, Inc.
(Kansas)
May 28 it was reported company plans issue and sale of
600,000 shares of common stock. Proceeds—For oil and
mineral development.
Underwriter
E. R. Bell Co.,
Kansas City, Mo.

Electric Generating Co.
May 18, it was announced that this company,/50%" owned
by Alabama Power Co. and 50 %{ by Georgia Power Co.,

v

company

late in the third quarter or early in the
quarter of 1956.
Proceeds—For expansion pro¬
Underwriters—Stone & Webster Securities Corp.,
White, Weld & Co. and Halsey, Stuart & Co. Inc.

'*/,"-'Southern

r.

reported

was

bonds

gage

Fenner & Beane.

-

it

gram.

private sale of $5,000,000 principal amount of bonds.
Underwriter—Kidder, Peabody & Co., New York.

\ Pacific Telephone &
Telegraph Co.
V
May 31 company sought
authority from the California
EU U. Commission .to offer
1,562,267 additional, common

shares to common and
preferred stockholders on a 1-for6 basis..
American Telephone &
Telegraph Co. owns an
aggregate of 89.6%'of the preferred and
common stock.
Price—At par ($100 per
share). Proceeds
To

stock

Underwriter—

fourth

quired in connection with the company's 1956 construc¬

company sought approval of the California
P. U.
Commission to issue and sell
$78,000,000 of 32-year
debentures due Aug.
15,1988. Proceeds—To reduce ternporary.borrowings and for capital expenditures. Underwriter—To be determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co.
Bids—Tentatively scheduled to be received up to
8:30 a.m.
(PDT) on Aug. 21. Registration —
Expected
July 27. :
./y.H-;•
v;
],

June.

10, Gardiner Symonds, President, announced that
company plans to sell $30,000,000 of debentures in July
(see a preceding column) and about $50,000,000 of mort¬

tion program. The company proposes to obtain a
part
of its new money requirements from the sale of
$5,-

■

.

18

Tennessee

South Carolina Electric & Gas Co.
March 9, S. C. McMeekin, President, announced that it
is expected that $10,000,000 of new
money will be re¬

1

in

May

.

P. S. Commission for authority to issue and sell
40,000 shares bf cumulative preferred stock-/(par $100).
Underwriter—The First Boston Corp., New York.

•

late

stock

Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Goldman. Sachs & Co.; Kidder, Peabody & Co.

York

share.. Proceeds—To¬

>

.

JWith

E. F. Hutton Co.

Stern

(Special tc The Financial
Chronicle)

.! SAN

ge, r T.

FRANCISCO, Calif.—Ed¬
Lindner is

hutton
gomery

&

now

Company,

with

160

E. F.

Mont¬

Street.

>

.

Douglass Adds

^

*

With B. C. Morton

STATEN

ISLAND, N. Y. — In¬
Counsel, Inc. has been

SAN

FRANCISCO, Calif .—Jesse vestors
Levy III has been added to the formed with offices

M.

staff of
465

Stern; Douglass & Co.,'Inc.;
California Street, members of

the New York and San Francisco
Stock Exchanges.
>
:
/
.

(Special to The Financial
Chronicle)

SAN

FRANCISCO.

Calif.—

George F. Vanderbeek has joined
the- staff cf B. C. Morton
& Com¬

pany, Russ

Investors Counsel Formed

(Special to The Financial Chronicle)

Building.

-With Simple, Griswold
(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.

Charles A. Davis is

now

Stteet

business.

New York Hanseatic
(Special to The Financial Chronicle)

,

SAN

bert
ated

J.

FRANCISCO, Calif.—Hu¬
Quinn has become associ¬

with

New

York

Hanseatic

Corporation, 110 Sutter Street, Mr.
Quinn

previously with Hooker
& Fay and
Harris, Upham & Co.
was

(Special to The

(Special to The Financial Chronicle')

SAN
P.

FRANCISCO, Calif.—Frank

Aguirre and Harold T.

Dover

Staff

Chronicle)

FRANCISCO, Calif. —
Thomas S. .Watte^s is now with
Walston

Co., Inc., 265 Mont¬
Street, members of the
and

/^an
Exchanges. (

DES MOINES,

Francisco

Opens Inv^ Business
BROOKLYN, 'N> Y. — Regina
Dlugash is engaging in a securi¬

IOWA

—

from offices at 232 Wacaster

ness

Street.

,

v

With Daniel D. Weston

Exchange Building, under the
firm name of Willis D. Piper Co.

ance

Join Crowell,

i

Weedon

BEVERLY

HILLS,

CALIF.

LOS

ANGELES, CALIF.—Ralph
Mayer and Robert W. White

have become associated with Cro¬

well, Weedon & Co., 650 South
Spring Street, members of the Los
Angeles Stock Exchange. Mr. May¬
er,

who has been in the investment

business for many years, was for¬

;

BEVERLY

HILLS,

CALIF.

—

Arnold

Sukonick has been added
to the staff of Columbia Securities

Company Inc. of California,
South Beverly Drive.

225

9235

Dempsey-Tegeler Adds

—

Alan E. Adams has joined the staff
of Daniel D. Weston &
Co.,

Wilshire Boulevard.

(Special to The Financial Chronicle)

LOS
don

ANGELES, CALIF.—Gor¬

C.

MacLean

is

with

now

Dempsey-Tegeler & Co., 210 West

McCormick Adds

wo

Seventh

Street.

(Special to The Financial Chronicle)

LONG BEACH, CALIF.—Maxine
P. Morgan and Gale W. Roberts
have

become

Cormick and

affiliated

with

Mc¬

Co., Security Build¬

ing.

Mr.

with

Lester, Ryons & Co.

Roberts

was

formerly

Two With Bache

on

Coast

(Special to The Financial Chronicle)

BEVERLY
John

HILLS,

Joins FIF

Management

(Special to The Financial Chronicle)

LOS ANGELES, CALIF.—Wal¬
A. Green is now with FIF

ter

Management Corp., of Denver. Mr.
was
previously with Real
Property Investments, Inc.
Green

(Special to The Financial Chronicle)

E.

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

Willis

D. Piper is conducting a securities
business from offices in the Insur¬

#have become affiliated with Rey- ties business from
^ffices at 8856 merly with Hill, Richards & Co.
'nolds & Co., 425 Montgomery St.
Eighteenth Avenue:
and Witherspoon & Co.




Columbia Sees. Adds

JACKSON, MISS. — Bill Parey
is engaging in a securities busi¬

S.

(Special to The Financial Chronicle)

I

&

gomery
New
York

Louis

JWillis D. Piper Opens

connected

SAN

Stock

Two With Reynolds Co.

Financial

are

Jersey

securities

Bill Parey Opens

:

Inc.,

—

ously with Walter C. Gorey Co.

to

Officers

243

a

president and treasurer;
Florence
Palace, secretary;
and
Morton Kurland, vice president.
Mr. Palace was previously with
Bruns, Nordeman & Co..

Supple, Griswold & Co., 235
Montgomery Street. He was previ¬

Walston Adds

at

in

engage

Palace,

with

H. J. Quinn Now With

to

,

reported company plans sale of 255,000

around Oct. 1, $10,060,000 of first
mortgage bonds. Pro¬
ceeds—For construction, program.
Underwriter—To be
determined at competitive bidding.
Probable bidders:

,

in

of

Straus, "Blosser & McDowtell, Chicago, 111.
sell some additional stock
(probably at the end of May),
Tampa Electric Co. (10/1)

—

.,

Super-Crete, Ltd.; Boniface, Manitoba, Canada

May 14 it
shares

>

39

CALIF.

Two With Samuel Franklin
—

Shiokari and Logan G Wil¬

(Special to The Financial Chronicle)

LOS

ANGELES,

CALIF.—Alec

shire have become affiliated with

Fuller

Bache

become connected with Samuel B.

&

Co., 445 North Roxbury

Drive. Mr. Wilshire
with J.

was

formerly

Henry Helser & Co.

and

Franklin

&

Patrick

J.

Company,

Seventh Street.

Shea

215

have

West

40

The Commercial and Financial Chronicle

(100)

tfouo

Railroad

Changes

Earnings May Decline
^
With Rising Costs, Bullock States

,

Jstock market's re¬
periods of weakness, Dela¬

During
cent
ware

the

Fund has beeri able'to com¬

Since methods of saving money

plete; ney investment positions in

Northern

Broadcasting,

Natural

Gas, Jones & Laughlin, Oklahoma
Natural

Gas

Mid-

Sunray

and

Half of College Funds in

Columbia

Anaconda,

Continental Oil. It also completed

the final sale of the last of

our

An

now

Stocks-

over

$1,200,000,000 as of

30, 1955, shows that the ten most popular common stocks,

through
National Stock Series

!

Carbide and American Telephone.

J

^0^6 of which diversified an
vestment in
is to provide

I

of

I

a

common

group

selected

stocks

be-

of their relatively

high curlent yield and reasonable expectance of its continuance with
regard to the risk involved. Prospectus and other information
may be obtained from your incause

vestment dealer or;

|

j

!
I

J

National Securities &
Research

I

J

Corporation

j

ten stocks most widely
In the latter group, however*

companies.

These comparisons are among the facts

set forth in the 21-page
"Study of College and University Endowment Funds" just pub¬
lished by Vance, Sanders & Company, principal underwriters for
shares of Massachusetts Investors Trust, Boston Fund and other

Aggregate endowment funds of the 42 colleges and universities
$2,230,935,078, of which 56.0% was in common stocks. Of the
31 of these institutions for which comparable figures were made
available as of June 30, 1954, the proportions of common stock
holdings were increased for 27 during the following 12 months.
The

Vance, Sanders study includes analyses of endowment
for each, of the* 42 institutions covered, figures

diversification

V

Investors

utual
ie

A

of

on

per

first

your

investment

F

u

ri d,

far re¬
share on
aiffotmtetf td^.24 com¬
so

per

dividends

share
half

paid

were

of

the

of

20

1955
cents

during the
fiscal

current

compared with I8V2 cents
last year. This gain resulted from
larger income from the Fund's
year

May 31 were $12,691,947, equal to $4.57 a share on
the 2,779,042 shares outstanding.
After
adjusting for the capital
gains distribution of 45 cents per
share paid early this year, the per
share value was 8.4% higher than
at the beginning of the fiscal yeiar,
Mr. Morton pointed out. The Fund

increased its

outstanding

shares

by 13% between March 9, the date
the
company
was
fully openended for the offering of new

shares, and May 31.
As
had

of

May

over

25%

31

*

last,

of

its

;:

dealer.

The Parker Corporation

up

Berkeley Street

from

earlier and

Boston, Mass.

hold

in

traffic

and

But

rates.

improvements

are

such

longer

no

on

the

ating margins,
railroad Andus-^
try is slightly worse off now than
it

under

was

In

1939,

84%

three

56%

months

six months

ear¬

the

Fund
in¬

assets

said

today in

a

(South Africa) and Alumin-

ium

lier, President Coleman W. Morton

Ltd.

has

been

date.

prewar

conditions.

railway

net

(Canada).

Oil

and

operating

of

income

Federal

15.6% of gross revenues.

was

figure

same

was
;

15.3%

^

;

Just when the railroad industry
may come face to face with a
rather
serious problem in
off¬
setting future increases in' oper¬
ating costs depends in large meas¬
ure on the timing and the amount:
of the next wage boost and the

1939

then outlook

are

not able to

in¬

and

1955,

the average tononly about 41%.

mile revenue rose

"This smaller increase" points up
the fact that railroads were forced
to

make selective
an

reductions

rate

Nevertheless, the railroads ex¬
perienced constant erosion of traf¬
fic

other

to

Even

Class

transport
I

railroads

declined

traffic

agencies.
share

five

about

of

per¬

centage points between 1951 and
1953, at a time when both indus¬
:

There

two

significant trends
in the labor cost picture, Calvin
Bullock, says. On the asset side
are

is the fact that between 1939 and
1955 employee hours paid for rose

decline in general

business, rail¬
earnings could fade quite
sharply. ?
.
T
Developments in; the railroad
industry in general do not affect
individual companies in exactly
the
same
way,
Calvin Bullock,
points out. Careful analysis will
uncover
a
number of companies
whose outlook is brighter than the
outlook
for
the
industry as a
such

"The

Net Assets of

Massachusetts Investors Growth
Stock Fund reports total net assets
of $98,289,648 on May 31, 1956,
end of its second, quarter, a new
same

$71,658,308

time last year. Share¬
and
shares outstanding,

also

new highs, totaled
27,385 and
9,417,832 respectively, compared
with 18,751 and. 7,773,243 „a year

ago.

■

e-

Securities,

;■'■■■

total

net

asset of

Inc. reports
$97,464,107 on

May 31. This represents a slight
Nov.

from

decline

1955, and
the
1955 mid-year figure. Dividends
paid from net investment income
during
the past six months
totalled $2,074,604.
an

30,

increase of $7,502,045 over

Total net assets of The Common

Stock

Group

Fund, now the largest of
Securities'i 21 "funds and

industry

classes,
are
listed at
at May 31, or 24.6%:

$20,829,099

Net assets

May 31 were equal
$10.44 per share/ This amount
on

the

above
the

same

$16,722,241 figure on
1955, and com¬

date in

with

assets

of

less

than

year

ending

total investments.

name

the

half

pares

equivalent to $11.02
compared with $9.22 per share at

the

together with a capital gain dis¬
tribution of 58 cents per share in
December is

holders for

-

$97 Million

$98 Million

holders

of

as

Group Reports

Group

with

stocks

still
con¬
holdings in
diversified portfolios," the review
concludes.
-:
:-1:
•.
are

suitable

Assets Now

compared

common

companies

sidered

M.I.T. Growth

at the

?

road

Only q.6%, despite a gain of. 49.3%

high,

for traffic.

Most certainly, if the next rise
were to be followed by a

in costs

whole.

trial and farm output rose.

to

industry, accounting for 28%

before

rates, net operating results
will be adversely affected.
The
analysis points out that while
rates
increased
73.6%' between

railroads

If

crease

natural gas was the most favored

report to share¬

than

in the postwar period to

case

vested in six

Ltd.

traffic

taxes

;;1

companies, but these
companies were diversified geo¬
graphically and industrially, Mr.
common stock investments. So far
Morton said. In decreasing order
this year, 42%
of the common of market
value, the largest hold¬
stocks held by the Fund on May
ings are: (followed by their prin¬
31, 1956 have paid higher divi¬
cipal place of operation): Borax
dends than in the same period of
(H 01 d i n g s), Ltd. (California),
1955.
Anglo-Ecuadorian Oilfields, Ltd.
(Ecuador), Beralt Tin & Wolfram,
International Resources Fund,
Limited (Portugal), Royal Dutch
Ine. had 98.31% of its assets in
Petroleum Company
(world
common stocks on May
31, 1956, wide), Potgietersrust Platinums,

from

is

highest

assets

Income

each

available

prospectus

200

Net assets at

pared to $9.27 on Nov. 30,
and $9.17 on May 31, 1955.

principal.

fund

the

May -31

aSlargeanINt>^
obtainable into**,

to

attempt to stem the tide of
traffics-losses.-

invested,in comrnon ftock., ■

Investment

Net

ported.

f«n^,

railroads

in

v?

May 31. The portfolio is now fully

Inc. semi-annual report to share¬
holders reveals net assets of $62,-

463,961,

ended June 30, 1955 for
yield statistics by types of

year

1::

New Record
Diversified

object^® "

risk

<

were

Assets at

corporuted
come Fund

The net effect of these tenden¬
cies is that with respect to Oper¬

the

of gross revenues;

lncoir-

"foiul

the

against sharply rising oper¬
ating costs with only modest gains

lowed
line

increased

DIF Fund's

p3«

In a thorough review of currentJ
developments in the railroad in¬
dustry, the review points out that
in the past* improvements in phys¬ contrast with the trend in labor
■'':
ical operating efficiency has al¬ productivity.

the

holdings.'

CROVTH of
and" incou^.

at
an

sity of. Chicago, University of Rochester, Princeton and Massachu¬
setts Institute of Technology.

showing endowment income for the

'

maintained

In 1955 the

each of 32 of the group, and tables of

^ *

extent

increases in wages and other costs
must be offset by higher rates and

j

fund

be

income

|

mulual

greater

a

to

are

.net gain in
ton-miles per employee hour
of 48.4%.
On the. other hand,
there Is also an, item of extreme.
importance on the liability side—4
a. rise-of 166.4% in hourly wages
per hour paid for: over the same
period.; '-With? employee hours up
slightly, the total wage bill; rose
168%;?,Taking into /account the,
rise in gross ton-miles, the Work
performed, for each
dollar
of
wages
dropped 44.3%
between
1939 .and 1955, which is in direct

included in the study cover 42 college and uni¬
versity endowments ranging in size from $3,000,000 to $442,000,000.
Among the larger endowments are those of Harvard, Yale, Univer¬

.

Established 1930

l

to

heretofore, if net operating

in gross ton-milesh--a

gross

horizon,
and
accordingly
substantially larger proportions of

mutual investment companies.

120 Broadway, Now York 5, New York

Established I925.,

be

'

-

....

Seven of these issues are also among the

Overall figures

mutual fund, the primary ob-

*

are

to

present rates,
according tq
analysis by Calvin Bullock.

Oil of New Jersey,
General Electric, Du'Pont,
California, Texas Co., International Paper, Union

Steel ap¬
whereas Christiana Securities, Union Carbide and American
Telephone do not.
"
•*
'

Stocks for Income

have

by increased rates and traf¬

volume

than

will

based on total market value, were Standard

pear,

|

in costs

Christiana Securities, General Motors,
Standard Oil of

held by 175 investment

In resting in Common

offset

fic

projects

largely exhausted, future in¬

results

Amerada Petroleum, Bethlehem Steel and United States

J

rehabilitation

,

creases

analysis of investment holdings of a large group of colleges

and universities with total endowments of
June

Standard Brands, Trane and Pa¬
cific Gas & Electric.

operating, improvements and

other

panies: American Smelting & Re¬
fining,

from

By ROBERT R. RICH

following com¬

the stocks of the

..Thursday* July 5, 1953:

..

Group's broadly
einploying common
stocks, The Common Stock Fund*
Ther Fully Administered Fund and
The Capital Growth Fund, en¬
joyed modest increases : in per-

same

time last year.

$400,000 when the fund's present
and policy were adopted in
5

1950.

three

All

of

invested funds

Johnston Mutual Fund, Inc. re¬

ports net assets

Fundamental Investors, Inc.

on

June 30,

1956,

of

Diversified Investment Fund, Inc.

$5,423,573, equivalent to $21.83
per share on the -248,494 shares
outstanding. This compares with
$4,194,496, or $20.92 per share, a
year ago on? the; 200,483 shares
then outstanding.

share asset values for the 6-month

period under review although,as
the report points out, "stofck prices ^
in general, as measured by well-

Manhattan Bond Fund, Inc.
-fa

Affiliated

'

*

Fund

—A II. S.

incorporated mutual fund pro¬
viding diversified, managed investment in
Canada. Par free prospectus mail this ad to

Diversified Growth Stock Fund, inc.

A Common Stock Investment-Fund
objectives of this Fund
possible long-term- capital and
growth for its shareholders.'

Investment
I***

CALVIN

******

are

BULLOCK

income

Established 1894

Prospectuses available

ONE WALL STREET. NEW YORK 5

these

mutual

local

investment

funds

on

through

firms,

on

Prospectus

hugh w. long and company
Elizabeth

3,

New

Jersey

___




_

request

Lord, Abbett & Co.
New York

Address

upon

INCORPORATED

•

—

Chicago

—

.

Atlanta

—

* Los Angeles

Volume 184

Number 5548

:

The Commercial and Financial Chronicle

-.

known

indexes, ended the period
at the. beginning and,
many individual stocks declined
by substantial amounts."

lower

!

than

In
addition,
the dip
in the
bond market, according to the re¬
port,
"provided an opportunity
for The Fully Administered Fund
to shift its substantial holdings of

into

short-term government issues

favorable."-*
value of "shares

total

The

in

held

now

Group's Periodic Invest¬

about :$3,000,000.

now

oils

Takes Over

industry classiwhich.. Jhg, lqigest
and
pipelines,
with

Continued

from

tion,

Tarn

Brae

to

been

Street

What About Real Estate Credit?

of its kind made by Broad

assets of the mutual fund to about

$90 000 000

'

'

'

v

-

,

:.

V

of buying

on legal ground in your State and first
.make sure that you can write an

,

iron-clad ' contract.

-

The

As

of Broad
of ' equivalent

come

into

the

the light of day.

saw

*"

*.

less.
is

red

Your

You

tape

year-to-year
and" more

stable

more

of

don't

have

all

work

paper

and

the constant handling that take

a

much

time

money

and

and

cost

so

much

so

characteristic of

are so

the insured and guaranteed loan

"

,

,

..

*

,

rule, the borrower has

AS a

*

hiore equity m his home and be-

Conventional Loan Re-examined

"open-

Now just why has the Conven- £a"se he's a better credit risk and
tional loan taken a back seat in bette.r Pay, servicing less less exis
pensive and there's
chance
mortgage lending?
^ —'~

oh«,,iri

r.™

mere are two reasons.
First, in the old days, the Con-

;««w- auvauce# siiouia oe

exchange for shares
Investing

time.

on

_

brevfous'^Transactions-have^been end" clause offers an opportunity
?nthe form of^marketable secur? for personal loans which is benetfes and thev lSve been acauired ficial to both owner and lender,
pes,.ana they nave oeen acquirea
Street

home

a

matter of fact, it's been loosing
*bls program, you d better call in ground steadily ever since the
Y°ur lawyer and find out if you're early '30s when the insured loan

Investing during the past two and
one-half years. It raised total net

is

continuous.
the

acquisition as 19b6 wears away. But before
Street J?°.ur bank gets too far along with

fourth

the

was

factors

instance, the cost of acqui¬

income

Investing Corporation.

This

restrictions

picture.
sition

.

artificial

any

dictated by politics.

Corpora¬

personal holding company,
acquired
by " Broad

a

have

of

rvTyrr.

Wellington Assets
Up $100 Million

tied

6

page

41

about them; and they're not

say

For
Assets

in

:

25.2%;
forest products,
14.8%;
mining, 10.5%; utilities, 10.2% and
stores, 8.7%.*

Other

Personal Trust

Plan, through which pay¬ 7
ments of «$25 pr,; mpre -may., be
made after an initial investment;
$100, is

of

fications;.
were

ment

of

of securities in 19

Broad Street

longer-term, higher-yielding cor¬

porate bonds of top quality at
prices which have already proved

(101)

made on a sound basis so that de-

for foreclosure.

Furthermore,^

you

'.
;
dont have

.

preciatiom will not get out of line ventional mortgage was a Model T.
regimentation, so typical of
T
amortization. New advances it got you to your destination, all tbe insured and guaranteed loan,
ponJtotTlassetson May 311956 which be.made contribute to the right, but it was a bumpy ride, so you've got a golden opportunity
pons toiai assets on may oi, i»oo «bopld absolutely on'improvements
to cet cIorp tn
hnrvmnor
of*r
It! contribute to the an the way, and far from satis^e. close to your borrower and
of
$42,253,473,
an
increase
For Year
75.7% over $24 054 989 on May 31,'I1^
i
' marketability, factory, according to today's
£lve him some good, sound
"v Wellington Fund closed the first
1955
Shares of the Trust
outIlf
1
y'K r ^~ standards. For instance, it car- advice. He likes the idea of
half of this year with new records standing increased from 2,324,460
£uv a^wMercmv^rfo^end ried a and was often drawn five haviiliSwv feet aand+not
maturity of one to
ouy a new Ivlercury or to send y0a^sf
established in sales, total net as¬
on
having to fall back on
patervalue

in

transactions.

tax-free

Boston*

Trust of

Investment

re-

_n

ru.

.*

vrmr

■

ease

..

o

shareholders.

and number of

sets

Wilkens, !Vice-President,

J.

A.

reported that for the six months
ended June 30, 1956, new invest¬
ments in Wellington Fund
amounted to $54,019,000, the

high¬

six months in the
fund's 27-year history. This com¬
est total for any

of
of

pared with new investments
$32,542,000 in the first half

; "v"'
At June 30, last, net assets at
market reached a new all-time
1955..

'

./TrA

•

high of $559,500,000, an increase of
$100,000,000 over net assets at the
close of June last year,

v

ann

cq

nnn

justnfent91for °a
tribution paid

or

i

^>*4.™

100%

Aug. 6

on

Wed probably be: better off

1955.

though,

v.

Selective

Investors

Inc.,

Fund,

mutual fund affiliate managed by
Investors Diversified S

i

e r v

C°!*e^?'

dis-

stock

c e s,

to

modernization

run

rose

Joseph M. Fitzsimmons, ingly to the underlying strength
disclosed, in the housing market for the long
These assets were the highest re- pull.
corded at the close of any annual v
■■•i.i'.u
i ^
unaenvine*strentrtn
rnr
tne
Underlying Strength for the
or
semi-annual fiscal period, the
fiscal year,

Chairman of the Board,

_T

Chairman

.

.

,

_

.

_

,,

:

stated.

-

"

LoneLong

■

Pull
Pull

in

crease

ber

This

shareholders.

of

of

increase

32,000

ber of shareholders on the

books

,

Fund,

Industrial

as¬

the

during

increased

have

quarterly period to a level

recent

consequent

per

share of
of May 31,

rates

money

exceeding that reported at the end

showed.

share
declared in the first
half of fiscal 1956 compared with
19 cents per share in the corresponding year-ago
period,
and
were
derived entirely from inpaid

The total

of any previous quarter.

$53.1 million at May

31, 1956, represented an increase
of

million

$16.3

million

a

emphasis

tural
the

Petroleum

•

and Royal Dutch
pany

the

the

period

Amerada

by adding

during

portfolio

months

oil and na¬

the

on

industry

gas

three
of

shares

Corporation

Petroleum Com¬

and increasing its holdings

of Atlantic Refining Company,

Paso

to

Natural

United Gas

Gas

Company

El

and

Corporation.

reports

'

May

31

assets increased by more

d>ii

__

I°ture of the building industry.

total net
than $3,~

ncr

During the quarter, the
shares outstanding increased from 5,507,627 to 5,573,481,
which compares with 5,416,539
shares on May. 31, 1954 when total
net assets were $57,612,372.

number of

T.

President

Vance,

of the latest

quarter, the Fund's investments
diversified among 96 issues

OF

Group Securities, inc.

Please send

me

common

9, Ma«.

prospectus

Address

on

r....—

Distributors

City

State




New

homes.
is

big

population

y

investment dealer

Y.

cry

Then, too, it wasn't
the iarge inter-

scrape up

egt and v^rinpinDi navmpntc which
principal payments
were due each six months or each
vear

'
T
97
1qo4
-tt a
oecona, on June
dha
Title II-appeared-em-the aeene to
fullv

bv

insured

fimial mortgage?
■ ►
■ •>
Simply because I think it's the
besf loan!
'But to keeP the record straight,
I'm certainly not advocating

that

Plow under all insured and
guaranteed loans. Far from it!
Both have a legitimate place in a

we

hnnt'c

ior,^ir,«

t

because

olw-

always make

Conventional
that as jt

aeencv

an

»

mortgage

Bra„e.

may. the time has

to

ud

20

vears

value

ertv

loan

a

nf'on«

.

and

at

on

based

IJlsUTed and guaranteed loan. Let

of

the pendulum swing back! Don't
take on insurance °r a guaranty

f

fair

a

rate

erty_ value and1 at; a lair rate of when you don.t need it Bankers
Aso ®oiieeted
monthlt baste ^ld act like bankers! It's time
on

a

aiso wonder this kind of
conectea on a monmiy ,-.iort- tn res'ate our faith in the Free
Dasis. to rpcf.nfA n„r
««' w0"der this Kind ot a riort Enterprise System and to prove
gage went^to towin So, d)wn that we,re plfinty aWe tQ
J{f
through tne years, hundreds ot Qur Qwn canoe
banks have followed the path of
It might be a
d idea for
least resistance by taking the every bank tQ analyze itg Qwn
ro^to of ^tjie insured and Sjjar m0rtgage operation, in an effort
anteed loan And some of these to re.evaluate the tw0 types of
banks the Dronertv.bother to sole- loans ag ffir ag
dont even hut. relv exQwn
amine the property, but rely sole- concerned. It's a tall order, but
ly on Uncle Sarn. Nevertheless, one that each individual bank
we can t overlook the fact that could y
n t
t
h
t
No

a

•.

^i

comparing the risks and benefits

s

K

lating^the'Imnact'of^ach
community

mo^tga^e

ticular

onthe

by surveying its

credit.

lot

oar-

and^by

markeh
own
investment

Moreover, family inpeople
better
on

the move! They're

one

appraiSalS' ana

Ti)

the

is

the

town

to

the

big

FHA

mortgage

Conventional

Its Worth

go,

which

be, many long years ago."
No longer is it the ONLY means

is

the

best

there.
evidence

is

in

the.Conventional

°UA t0P'

wajor rnortgage mechanism^ Thebandwagon will start to roll and

t.

It

as
a
result, the lender, the borConventional rower, and the country will all
mortgage adds exposure and more benefit, accordingly.

the

course,

?Ll

and

property

tracts "of

the

worth

because

loan

it,

out with
of

the

borrower.

a

you

credit

But

it's

only

not

(Special to The Financial Chronicle)

BAKERSFIELD, Calif.—Thomas

An? J ^ nJ|f.0wc
Francis
J; du ^ont ^ ^°*' 1412 Seventeenth
,

&treet-

safe loan, but a

to the

that's tailored

v:

With F. I. du Pont

ffi'pSVZt

energy

and
on
mortgage officer to appraise each
case judiciously, as to the value
of the

fht*

indi-

borrower

Then there's the important

mat¬

In the

case

ter

of interest rates!

of

the

Conventional

Joins Hooker & Fay
(Special to The Financial Chronicle)

vldual needs of tne borrower-

mort¬

loan.
To begin with, the Conventional
mortgage loan "ain't what
she

used to

„r

part of the coun-

loan; but the loan I'd like to plug
here

the

to

and how it expects to get
all'the

small

about

today,

way,

are that

Of

the

stands

it

As

wants

When

gage

Group, Incorporated

(A far

jUxUry.

a

*

N°w why am I up on a soapb°x, in support of the Conven'

temiliesUneed new Co,nvent!°na' mortgage is quite chances
families "ltd bfg" tlonT^ a°ppra?sa s and° lo^n

the upgrade, so
afford
bigger
and
on

People are
moving from

3

request

63 Wall Street, New York 5, N.

eag

came

....

from your

growing

man¬

agement's judgment.
a

sucb

from today!)

^

4

and from city to suburb.
They all need a place to live. And
they wapt to own it!

D-165
Name.

..v.

"balanced"

in accordance with

K-l.

j

4.

town,

stocks, with the

proportions

prospectus describ¬

investing

bonds, preferred and

ford

FHa, which is definitely to fha's

way

from

ing your Income Fund, Series

i

Mhf^to^SraSW

Incorporated 1933

Company

ment to buy a home in those days,
a married couple was generally

ana service m me years 10 mortgage, by a gradual process,
has emulated the example set by
accelerated birth-rate and

homes.

ADMINISTERED FUND

A mutual fund

The Keystone

Be-

down-pay-

...
.
,.

in

steadily

can

THE FULLY

in

50%

AAent A

come

u

lender

the

a.

? for Banking. We spend worlds
money on advertising to get
H11! Job done» and here we've got

and will offer the s0mewhat like locking the barn examining its
d.°«r atter the horse has been blueprint, each bank should be
*™estment,_ community develop stolen, even so, the Conventional abie to decide for itself where it
;n

ger

INCOME.

for

took

was

bor-

deal

a

h™and

Fund

50 Congres. Street, Bo«ton

vista of

v

A

in securities selected for

it

mortgage

loan for the

sorry

" and

cause

old-

Enterprise alike, the Urban Renewal Program is the glamorous
approach to will Hp rmir»Vi
slum clearance and amine
tViA
undoubtedly will be much in the
limelight for quite a spell. It s
possible to spend billions in all
parts of the country on new con- FHA has turned in a tiptop paystruction and on reconstruction of record.
run-down houses
This growing
As
far
as
the
conventional
program, as it captures the lmagi- mortgage is concerned, FHA has
natten of the American public is taught
how
Although
it's

Our

A diversified investment

rower

the

frank

Conventional

pretty

P

First proposed last year and acclaimed by government and Free

were

Keystone

current

new

,

big

iSeries K-l

'

immediate

the

dividual home to the

our

income

from

(1954)

last year.

Henry

a

loan

PfoWem of modernizing the in-

600,000 to a new quarter-end high
of
$69,552,576.
Net asset value
per share was $12.48, which compares
with $11.95 three months
earlier and $10.63 on May 31 of
-_

style

'/*

j3ru^aiiv

be

second-

r^fUfjtmrrfarnTstio'Jan feldLg"6 Herfwas'a" morSle

-v

Fund

General

ended

Tq

high-rate

a

And you

Also the chance—to

the credit.

rent hlm a Safe Deposit Box, to
make him an appliance loan, and
*° ^
Sayings Account. In
fact, once each month, you get
another chance to sell this mort£age customer of yours on the
a fbat the thing to do is to dial

fr°tect dubbed Operation Horne loan fully insimed by an agency
me to emphasize the Conven_
Improvement which promises to
w;fh
terms
tioreol loan and deemphasize the
Turning

notes that at the close

-=t=

repair and lmover "the -country,

rehabilitating an entire blighted
neighborhood, we run head-on
by United States investors, into the Urban Renewal Program,
that
during the
three brainchild of the Administration,

months

agement of the fund is continuing
its

promote home
provemerrt-stf-

Limited, largest Canadian investment
company
owned predomi-

$36.8 nanaly

the

over

earlier. The man¬

year

both

ot

building trades and government
housing agencies. Designed to

vestment income.

Canada

thinRing

or

•

net assets of

and

preferred stock prices during the
civ
mnntVic
thp
report
past
six
months,
the

were

tne

the mgiy. in

and

bond

in

decline

-

Dividends of 20 cents per

reported.^ ^

Financial
sets

an

of June last year, Mr.

at the end

Wilkens

is

the num¬

over

value

asset

called for
mortgage.

middle-aged before they could af —

F°r fxampl^ the slogan, "1956
A
Wellington Fund now has 181,the Fund was $10.33 as
fbe Year to Fix, is bobbing up
€00
shareholders on
its
bookjs,
1956, compared with $10.50 on more and more^ in national and
placing it among the 10 largest
Nov. 30, 1955, reflecting the in- local advertising
and is increascompanies in the country in num¬
Net

lumps, which is the hard

.

from

...

payable in annual or semi-

annual

financing through the Installment way! And the initial loan, itself,
boan Department. We could use was low in relation to the value
7. ' or better still, a 0f the property, which usually

$20,854,888 as of Modernization Loan Plan of our
Nov. 30, 1955 to $21,641,269 as of own so as to save the cost of inMay 31, 1956, an increase of $786,- surance.
381 for the first half of the current
-Many factors point encouragInc.,

Interest and principal

demand.
were

SAN

Nullo

FRANCISCO,
Caravacci
is

Calif.
now
with

mortgage, Hooker & Fay, 221 Montgomery

they're
flexible
and
generally Street, members of the New
higher; they follow the money and
San Francisco Stock
market; you've got

something to changes.

York
Ex-

42

The Commercial and Financial Chronicle

(102)

Union Mines Glass A

Continued

from

Thursday, July 5, 1956

.

larly the thicker sizes and structural shapes, particularly wide
flange beams, are in short supply. Other products, like high alloy
steel tubing, also cannot fill demand.
i

4

page

..

.

Stock At $2
Milton
of

D.

Blauner

York

New

Share

a
&

City,

Co., Inc.,
offering

is

publicly, as a speculation, an issue
of 400,000 shares of class A stock
(par 10 cents) of Union Mines,
Inc. at $2 per share.
'

his

from

viewpoint,

union proposals
There

several

are

avoid

to

strike.

a

The cost

of

behind

reasons

the

firm

taken

stand

by

of

Before

development and with one ex-',
ception, upon which the company
has a royalty arrangement, has no
known or proven bodies of com¬

$8

mercial

proceeds, assuming only
125,000 shares are

197 will be used to meet accounts

incurred by
Urado Uranium in the acquisition
and
development
of
properties
and $9,377 to pay off miscellane¬
ous accounts payable; and $80,000
will be used for exploration and
development work. Assuming all
the shares are sold, an additional
$38,267 will be used to complete
payments to Mineral Engineering
Co. for drilling services. The com¬
pany may purchase equipment in
the sum of not more than $25,000.
The balance of the proceeds has.
not
been
allocated
to
specific ;
projects. This amount ($459,302)
is not sufficient to explore and
develop all the properties.
The
company intends, however, to use
such funds, as they can be ef¬
ficiently expended, in exploring
and developing the most geologi¬
cally favorable areas indicated by
preliminary exploration. The di¬
rectors reserve the right to use a
portion of the proceeds for the
acquisition and development of
additional mineral properties.
payable which

recent

A

report from

United States Department

records this

Calif.—Wal¬
Building,
has been incorporated under the
firm name of Waldron & Co., Inc.
Officers
are
Maury J. Kessler,
President and Ben L. Goldberg,
Company, Russ

Vice-President and Treasurer. Mr.

Goldberg

formerly sole pro¬
Prior to joining Waldron
was

prietor.
& Company, Mr. Kessler

was

with

the Wells Fargo Bank.
_

Form Mason McDuffie Co,
(Special to The Financial Chronicle)

BERKELEY,
McDuffie

Co.

Calif. —Mason-

has

formed

been

;

a

steel price boost of j

a

•

B.

Campbell

Geralc

and

H. Hagar.

Last

"

week

week's

by 3,776

Jorgenson, Peters, Write^
Christensen, Inc., Denver,

of 60.

away June 26 at the age
Mr. jorgenson had been in

ill health for the past few months.

The

Steel

Institute

in

effective

on

July

.

The
not

a

in

WALNUT CREEK, Calif.—F. W.
Maisel is engaging in a securities
business from offices at 2901 Mt.
-

«With W. E. Hutton
(Special to The Financial Chronicle)

Orin R. Dudley, Jr. has become
associated with W. E. Hutton &

Co., 14 Wall Street, New York
City, members of the New York
Stock Exchange, as a registered
representative.

David H.
David

H.

*

;

Coddington

Coddington, member

of the New York Stock

Exchange,

a

metalworking publication pointed out that this figure
include the higher expense of goods and services pur¬

that is

ton in

are

1955

reflected
average

(after

from

Commercial and

/

and

year

15-cent hourly wage grant); $3 in 1954; $4
1953; $5 in 1952; $5.50 in 1950; $4 in 1949 and $8 in 1948 (after

below

the

the

prewar

Failures

increases,

the trade journal said
that high income, a high rate of business in general and good
business prospects for consumers of large amounts of steel are
insurance against a broad reduction in steel buying. Neither will
there be a general inventory recession, such as in the last half
of

that the metalworking industry's current an¬
nual rate of sales i!M4% above that of mid-1953.
Businessmen's

plans for plant and equipment expenditures this year exceed those
in 1953 by 29%.
The current annual rate of the gross national
product is 7.5% over that of mid-1953. Personal income is running
12% above the level of mid-1953.
not

heavy in all consuming industries. It is
estimated there are 18,000,000 to 20,000,000 tons of finished steel
in inventory, a three-month supply if it were evenly distributed
as

are

to products and

consumers,

The automobile

inventories of

cold-rolled carbon sheets.

any

But distribution is

uneven.

,

industry is believed to have the largest steel

passed away June 26th at the age

industrial

consuming group and

a

large portion of it is

In contrast, supplies of

the like week

over

yy yyyy, /yyy^y

■

Slightly the Past Week

-

failures

edged up to 249 in the
preceding weekrDun & Brad-,

This increase raised the total above the 231
in the similar week of 1954. " Continuing

192

level, the toll

197

6%

was

below

the

,

264

^

involving liabilities

of

y

.

r

the
v

of

week

a

as against 26 last week.
/
y/
Manufacturing accounted principally for

.

where

the

toll

climbed

to

45

from

33.

the

rise

week's

Slight increases brought

wholesaling to 26 from 25 and commercial service

to

21

from

19.

In

contrast, retail failures dipoed to 126 from 131 last week and
to 31 from 37.
More businesses failed than a
year
ago in all lines except retailing. - Tolls among wholesalers and
construction

contractors

rose most
sharply from the 1955 level. /; '
;
geographic regions reported higher failures in the week
just ended; the toll in the Pacific States rose to 77 from 67, in
New England to 20 from 11, in the East North
Central to 38
from 36 and it advanced slightly in the East South
Central and
Mountain States. Slight declines occurred in four
areas, including

Five

the

Middle

Atlantic
ceeded

Atlantic

States,

down

States, down to 22 from

to

from

66

28.

79

Failures

and

the

equalled

South
or

ex¬

last year's level in all regions except the Middle Atlantic.

Wholesale Food Price Index Falls for
Third Straight Week

plates, particu¬

;

;

■"/

j

.

The Dun & Bradstreet wholesale food price index fell to
$6.03
June 26, from $6.09 the week before. This was the third suc¬
cessive weekly drop since the year's high point of
$6.18 registered
on June 5,
It marked the lowest level since

on

stood at $6.03, and it represented
recorded at this time a year ago.

a

May 8 when it also
decline of 6.1 % from the $6,42

/-

/«

~

y/

;

Commodities advancing in wholesale cost last week

beef, coffee,

cocoa, raisins and

hogs.

Lower in price

were

oats,

wheat,

were

barley, hams, bellies, lard, cheese,* sugar, cottonseed oil,

nuts, eggs, steers and lambs.

pea¬
!

~

The index represents

the sum total of the price per pound of
foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale level.
31

raw

-■*

Wholesale

Commodity

pointed out

Inventories

.

of $100,000

•

1953.
It

cars

$5,000 or more rose to 206
ago and 194 last year.
Among small business
failures with liabilities under $5,000, there^was a
dip to 43 from
48 in the previous
week, but the level remained above the 37
in 1955. " Twenty-one concerns failed with
liabilities in excess
,

from

rye,

of 70.




basic steel boosts.

steel price increases in recent years: $7.35

price

/ ■y

comparable 1939 week.
;

a

13-cent pay hike).
'
In spite of
certain

2,451

1, some

companies have reported temporary delays in getting
some of their plant offices.
Steehnaking costs immediately go up about 40 cents a ton
for every penny per hour in higher wage costs, "Steel" magazine
reported this week.
.
does

2,673,000,000 kwh.

1954.-y/yyy-yy.;,/:.;

street, Inc., reported.

'

'

•

output rose 20,000,000 kwh./above that of the
It increased 1,360,000,000 kwh; or 13.4% above the

comnarable 1955 week and

last

Delays Weekly Steel Production Report

on Mondav
delayed until later in the week, the American Iron and
announced on Monday last.
As a result of the

be

week's

previous week.

car

,The weekly steel production report usually issued
will

cars

>

Fourth Straight Week y^Vv/y/:. ,/„■

week ended June 28 from 245 in.the

than the 48,142

>

previous
/.//'/'■... //■/;/■/•
* v.'

.

Business Failures Rose

,

158,402

kwh., the fourth straight week of
improvement, according to the .Edison Electric Institute.

.

in June will

last year

//'//'';;'

,

bring output for the first six months
of 1956 to an estimated 3,190,800 cars and 597,200 trucks; the fig- *•;
ures are 25% and 7%, Respectively, behind the 4,257,154 cars and
642,413 trucks produced during January-June, 1955, "Ward's" coneludes.
,v
/... //'
The number of new corporations being formed in the United
States continue to break all previous records, according to Dun &
Bradstreet, Inc. Concerns chartered during May reached an all- *
time high for the month of 13,142, representing an increase of
9.3% above the 12,029 listed in May last year and marking a rise
of 5.3% above the April count of 12,47$.
New business incorporations during the first five months of
1956 rose to a record high of 64,305. This exceeded the year-ago

Here

F. W. Maisel Opens
(Special to The Financial Chronicle)

-

output declined below lhat of the previous
while truck output fell off the past week by

In the corresponding week

yr/;y

car

volume at slightly higher levels than
last week, while American Motors boosted output 325% by re¬
suming Rambler building following a week of inactivity.
*

Steel Strike

121,179

The amount of electric energy distributed
by the electric light
and power industry for the week ended
Saturday, June 30, 1956,
was estimated at
11,498,000,000

making and four-day shutdown of truck lines for inventory ad- "
justment. - - * /
:; '■'/
-t,w
-.v
Mercury's Metuchen (N. J.) plant will be inactive this week
from Wednesday through Friday. However, Ford Motor Co. and

more

to

Electric Output Continues Upward Course for

.

figure of 61,752 by 4.1%, and was one-third
recorded in the corresponding 1954 period.

amounted

2,056 trucks.

.

Production

trucks

week, 8,331'cars

and

-

..

and

cars

Canadian output last week was placed at 9,777 cars and
trucks.
In the previous week Dominion
plants built 10,398
and 2,494 trucks, and for the comparable 1955

General Motors assembly plants were largely
a 4.5% decline in car production the past week,
said "Ward's Automotive Reports."
:
; Programming this week will take an even steeper drop be¬
cause of the July 4th holiday.
"Ward's" estimated auto output the past week at 101,467 units
compared with 105,243 last week, with truck building at 19,712 '«/
units compared With 21,688 in the preceding week.
' '
Idled on Friday last, were the Buick and Cadillac divisions
of General Motors, along with five- outlving Buick-OldsmobilePontiac assembly plants. The facilities will be down until July 5,
Two more B-O-P plants Will cease activity for three days be- '
ginning on Monday of this week, while Chevrolet, Pontiac and
Oldsmobile divisions will cease activity July 3-4.
:■/
Also figuring in last week's production drop was Packard's
on

/

'

•

agency reported there were 19,712 trucks made
States.
This compared with 21,688 in the

In the United

Studebakers one-week halt

- •

.

Last week the

v

day at several
responsible for

chased

Diablo Boulevard.

car

from

Olaf J.

passed

total- of

cars,

1,976 vehicles.

of the steel

&

••/■v

7i

and 26,282 trucks were assembled.

is tied to the indicator.

nation-wide steel strike which became

Olaf J. Jorgenson

•*

-

industry assembled an estimated 101,467 cars,
with 105,243 (revised) in the previous week. The past

week and 26,282 a year ago.

1956 model and

:

-

Last week the

..

of its

:

units, a decrease of 5,752 units below the preceding week's out¬
put, states "Ward's."
/yy
v'"'"
'"/y■

the automotive industry shutdowns which began last Fri¬

runout

y

Output Declined 4.5% Due to Shutdowns

compared
week's production

the average factory worker, the agency reported.
in the consumer price index meant a one-cent
hour wage increase for more than 100,000 workers, mainly in

In

/'/ *,/;

building, due to shutdowns at several General Motors assembly

/

.

increase

the aircraft industry, whose pay

to engage in a securities busi¬

Donald

Car

plants.

ness.

Among the partners are Murice G. Reed, Ward D.
Armstrong,/

U. S.

car

-

46-cent drop in the *

power of

'

In Latest Week ;
f y:':y'';/y 'K
Automotive output for the latest week ended June 29; 1956,
according to/"Ward's- Automotive Reports," deflined 4.5% in

/

,

time, the Bureau stated

J

V

weekly take-home pay of factory production workers from April
to May due to a shorter work week. The pay decline and the rise
in consumer prices over the month brought a 1% cut in the buying
The

or

cars

•

freight for the week ended June 23, 1956,
0.2% under the preceding week, the As¬

corresponding week in 1954.
\

with offices at 2101 Shattuck Ave¬
nue

top
major steel

Loadings for the week ended June 23, 1956, totaled 799,461

' I

^

'

summer.
same

Chrysler Corp. planned

SAN FRANCISCO,

dron &

not

cars, an increase of 5,034 cars or 0.6% aboye the corresponding
1955 week, and an increase of 86,301
cars, or 12.1% above the

the Bureau of Labor Statistics of the
of Labor states, the cost of living during

,

the

At

revenue

sociation of American Railroads reports.

fringe will

May equalled the record high set in October of 1953 with indications that the consumer price index will keep climbing to new

an

Loadings of
decreased 1,970
-

.

probably of lesser amounts—this trade weekly points out.

.

Waldron Officers

.

..

are

Loadings Declined 0.2% Below Preceding Week

'

ton or more with subsequent advances as each contract year

a

were

(Special to The Financial Chronicle)

some

Car

government from an inflation stand-

and the

point, "The Iron Age" further states.
When the strike is settled, there will be

minimum of

Union Mines will pay off
$17,200 of notes evidencing bor¬
rowings by Urado Uranium, $60,-

three-year contract is agreed upon,

a

the public

passes,

sold,

,

„

inventories

.

First, the
producers are tired of being blamed for each new wave of infla- '»
tion.
They want to get out from under the label of pace-setter for wage-price increases, and second, they figure this is the year
for the union to give a little, to make collective bargaining what
it should be, a two-way street, this trade authority asserts.
fall by the wayside to bring the cost to around 20 cents an hour.
Steel management will not buy a package that would compromise

Of the

steel

consumers'

steel companies for a long-term, medium-cost contract.

it with

a

that

heavy came quickly in the Birmingham area when a
producer was closed down by a railroad strike., Some of this
producer's customers soon ran out of steel, the above trade weekly
reports.
\

last-minute

would have been prohibitive, it adds.

Organized under Delaware law
on April 21,1955, Union Mines has
no operating history but proposed
to explore and develop properties ..
acquired
from
its
predecessor,
Urado Uranium Corp. Its proper¬
ties are in the exploratory state*

ore.

indication

An

Prices

Eased

Further

the Past Week

1

The

daily Wholesale: commodity price index, compiled by Dun
& Bradstreet, Inc., went slightly lower last week in
narrow dayto-day movements. The index finished at 286.68 on June 26, com¬

paring with 287.49 a week earlier
responding date a year ago.

and

with

272.68

on

the

cor¬

Grain prices were irregular and generally lower for the
week

with some support at times
Washington to the effect that

coming

season

Export
wheat

and

induced
more

would be turned

trade
flour

in
as

wheat

was

wheat for

by

varying

reports

from

of the export trade during the
to regular trade interests.

over

fairly

the

active.

current

crop

Total
year

exports
to

of

May 31

Volume 184

Number 5548

...

The Commercial and Financial Chronicle

(103)

reported at 249,200,000 bushels as against 204,800,000 in the
period last year. Harvesting in the Southwest was hearing
completion with - much wheat said to be going into. the loan.
were

outstanding short-term indebted¬ gage bonds, brought out on Tues¬
incurred under a revolving
day at 100.977 for a yield of
credit agreement'
~
3.82%, got off to a slow start when
books opened.
This funding operation is
being
handled through the negotiated
Market observers tvere inclined
route, which, in the opinion of to await developments today to
most investment bankers, permits see to what extent the
holiday
of more realistic
pricing than is may have been a factor. A feature
possible under competitive bid¬ of this Offering was the fact that
three syndicates among the com¬
ding.
peting
groups,
had
submitted
Several Standby Deals''
identical bids. These were 101.909

same

-

ness

-

Corn fluctuated

sharply on conflicting announcements of the CCC

of intentions to

resume

sales of lower grades on the spot markets

which had been restricted for sometime past.
and soybean

futures

Purchases of grain
,

the Chicago Board of Trade the week be¬
fore averaged about 59,400,000 bushels against 60,300,000 the
previous week and 30,300,000 in the same week last year.
Business in the domestic flour market Continued routine with
on

-

most buyers of

,

hard wheat bakery flours showing extreme caution

in the belief that pressure upon prices will increase as harvesting

completion.

nears

Export interest in flour

only scattered small-lot sales reported.

at a low ebb-with

was

\

>

■

Cocoa prices advanced sharply to new

highs for the current
move.
Trading Was active with bullish sentiment influenced by
the reported statement of "the British Marketing Board that the

with

ber

pleted. Warehouse stocks of cocoa: were up sharply to 396,151 bags,
from 376,134 last" Week and 241,855 a year ago. Lard prices were
irregular with a somewhat firmer tone at the close.
Livestock

.

and Wholesale meat prices were depressed most of the week as the
result of slow demand due to hot weather.^

operations

.

Wading

attributed to btiying by spot
houses, trade iuice-fixing and short covering. Bearish factors in¬
cluded continued favorable conditions for the growing crop over

Inquiries frofn foreign sources continued fairly numerous for
cotton under the surplus export prograijn. Reported purchases in

jthe 14 spot markets totaled 1,384,200 bales with CCC sales under
jthe export program accounting for the record high weekly total.
Purchases last week compared with 40,600 bales in the preceding

the corresponding week

Trade Volume
i.

;

total

Registered A. Slower Pace the
: Past Week:
■

new

;

'

,

;

:

and used passenger cars

The total dollar volume of

Wednesday of the past week

ago,

retail trade
was

-

;

;

'<

1

according to estimates by Dun & Bradstreet, Inc. Regional

estimates varied from the comparable 1955

levels by the follow¬
ing -percentages: New- England and Middle West 4-3 to -f 7; East
4-5 to 4-9; South 4-2 to 4-6; Northwest 0 to 4-4; Southwest

the buying of mpn's lightweight suits declined moderately.

,While interest in women's fashion accessories and cotton dresses
remained at the level of the previous week, the call for sports¬
wear and beachwear rose noticeably.
*

Clearance sales encouraged consumer buying of outdoor furni¬
ture dast

week, but volume in upholstered chairs and bedding was
moderately reduced.
^
1

Appliance

the

bid¬

underwriting

The

;

last several

by

dealer

and

.

.

the

issues

of

new

of

paTent

the

Bell System have been of the con¬

stores reported ah Increased call for air conditioners

kha fans, noticeably diminishing dealers' inventories.

"standby" operations; and
projected offering of $9,256,000

of debentures of

Armstrong Rub¬
latter a negotiated

Co,, the

deal.

Po^ver

&

A.

offering of 341,550 shares 6f additional

to

common

be

offered

Fox

Sperry-Rand
slated

to

launch

DIVIDEND

COMMON
On

August

held, using the proceeds

the

of

scope

provide

it

severe

structure

new

i

r

business

rather

a

i d e

s

of the

n g

the

should
test for

JOHN R. HENRY, Secretary

Florida Power 3%s

Evidently
new

potential

buyers

corporate
debt
interested

were

of

securities
in

more

Florida

million of

and Trust

sales On

Corp.'s $20
30-year first mort-

clared a dividend of 30 cents
share designated as the third regu¬
for 1956.
payable August 24,1956 to stockholdeis
of record on August 6, 1956.
.

per

DIVIDEND

NOTICES

WILLIAM H. DEATLY

Next in Line

THE

ATCHISON.

SANTA
New

One of the nation's major trans¬

porters of natural gas via pipeline

York,

NT.

Y.,

June

26„

the

,

WILSON,

120 Broadway,

LUDMAN

Assistant Treasurer,
New York 5, N. Y,

CORPORATION

florida

INC.

Dividend No. 211

y

A

OTTO W. STRAUSS

.

Vice President

and

has

DIVIDEND

volume

in

York

New

8% above the like period

City the past w£ek

and meii's

summer

I

apparel.

A

President

regular quarterly dividend
of 30c per share has
clared

will

'

mailed

,

of

corresponding period in 1955.

:

,yM-m

Uiiabcth, N. I.

Electrical and

clareda quarterly dividend of 27Hi

420 Lexington Avenue, New

f>er share payable on the
Common Stock of the Company

products
era

August 1,1956, to sharehold

'

At

■

of record at the close of busi

-

Modern furniture
ness on

held
per

of

July 13$ 1956.

a

Dividend Notice

meeting

June

26,

,

ness

August 3,

the

Board. of Directors
of fifty cents

A dividend

record

1956.

at

the capital stock
August 14, 195®,
the cloee of busi¬

Checks

will be mailed.

D. A. 8HRIVEB, Secretary

Treasurer

DIVIDEND

of

1956,

share was declared on
the Corporation payable

to stockholders' of

VINCENT T. MILES

•

Dated June 2®, 1956.

NOTICE;

June 27.1956

THE AETNA

mm

...

\—

r
$
%
'i

The DIAMOND

M

(MATCH COMPANY

Notice of

LEADER

WORLD

The Board oJ Director# has

fhe
on

Board of Directors of The Diamond Match

June

28,

1956.

of 45c per share on

declared

on

Both

regular quarterly

a

dividend

quarterly dividend of 3per
the $1.50 Cumulative Preferred Stock.;,
a

dividends

are

Company, payable July 20, 1956, in
common
stock, to stockholders of
record at the close of business July

-

10, 1956.

payable August 1,

No

mailed
fractional

issued and

to

July 10, 1956.

,

FERRY S. WQO0BURY, Secretory

;

0m/ Treasurer!

all

stockholders.

shares will be
payment
sent

of fractional shares will be

with

full

share

certificates.

j. J. GUY, Secretary
PULP PRODUCTS

•




LUMBER

•

BUILDING SUPPLIES

•

WOODENWARE

109th CONSECUTIVE QUARTERLY CASH DIVIDEND

The Board of DirectorrJias declared
cash dividend of

$.25

per

share

on

payable September 29,

Pittsburgh, Pa., July 2, 1956

record

at

close

quarterly

a

jf
Common Stock

1956 to stockholders of
September 14, 1956.

checks in

Full share certificates will be

1956 to stockholders of record

'.V;,..

Co:

uumce

'declared

dividend of ten" percent (10%) on
the outstanding common stock of the
a

the Common Stock. At the same meeting the

Board also declared
share

Company

Jvv'

.....

Dividend

br dividends

York 17

cehts

on

electronic

stock

The Board of Directors has de-

DAY&fROM.Inc.

recorded.

America

July 27th.

1:1^^

For the four weeks ending June 23,
1956, a gain of 10% was recorded. For the periojJfJ^A. 1, 1956 to
June 23, 1956, the index recorded a rise of 4% above that of the
was

August 15th to

common

Newi York- City for the weekly period ended
June 23, 1956, registered an increase of 9% above those of the
like period last year* In the preceding week, June 16, 1956, an

Vanadium Corporation

DIVIDEND

conditioners,

*

sales in

increase of 13%

QUARTERLY

been de¬

by Daysfrom, Inc. Checks

be

shareholders of record

rose

According to the. Federal -Reserve Board's indOx, department
-fctore

July 6,

•

NOTICES

a year ago.

Best gains were registered in vacation goods, air

fans

payable
stock¬

16

LONG ISLAND LIGHTING COMPANY

For the four weeks ended June 23, 1956 an increase
For the period Jan. 1, 1956 toi-June 23, 1956,
gain of 4% was registered above that of 1955.
; x
trade

1956

MAX HOFFMAN

preceding week, June 16, 1956, an increase of 12% was

Retail

2 percent

holders of record

Treasurer

1956.

reported.

-6 to

a

dividend

,

July 24,

.

Corporation

declared

stock

Directors

of

Ludman

of

dividend of twenty-eight cents
share on all the outstanding stock of
the Company has
been declared payable July
26, 1956 to stockholders of record at the close
of business July 12, 1956.
per

-

Board

The

quarterly

(28c)

Miami,

north

COMBUSTION ENGINEERING,

the funds for reduction of its

m 8% was reported.
a

President

1958.

has this day declared
dividend of
One
Dollar and Twenty-five
Cents ($1.25) per share, being Dividend No,
177,
on the Common Capital Stock of this.
Company,
payable September 1, 1956 to holders of said
Common Capital Stock registered on the books
of the Company at the close of business
July
31, 1958,

systems, Tennessee Gas plans to

country-wide basis as taken
; from the Federal Reserve Board's index
of the week ended June
In

•

TOPEKA AND
COMPANY

RAILWAY

The Board of Directors

D, C.

largest of¬
fering, most of the others are on
"rights'- or the remnants of similar
prior undertakings, is Tennessee
Gas Transmission's $30 million of
21-year debentures, also sched¬
uled for marketing on Tuesday.

FE

a

second

a

.23, 1956, increased 6% above-those of the like period last year.

NOTICE

Trustees of Title Guarantee

and Trust Company have do-

Power

new

Company

DIVIDEND

lar quarter- annual dividend

general

sidiary operating units, and asso¬
ciated companies and for financ¬
ing additions and improvements
to its properties.

week's

GUARANTEE

TITLE

getting

away

The company will use the funds
derived for advances to its sub¬

previous week, it moderately exceeded that of

stores

close

Transfer books will remain open, Checks will
be mailed.

investment market.

The

quarterly dividend

a

1956 to Stockholders of record
of business July 26, 1956.

15,

at. the

to reduce bank loans and finance

that

it

1956

June 26,

fifty cent# per share was declared on
the Common Stock of this Company, payable

stockholder. C

©

COMPANY

STOCK

of

it does not involve any potential
dilution
of - the
equity V of the

current

NOTICES

CAN

Corp.,
is
also
its offering of

shares
of
additional
stock to holders of record June
9,
at the rate of one new share for
10

with

AMERICAN

on this

2,570,846

each

associated

now

Federated Plans, Inc.

to

holders Of record July 11 at the
rate of one share for each 10 held,
tops the list of "rights" offerings.
Bankers will submit bids for the

privilege of "standing-by"
business on Wednesday.

CITY, Mo.— Donald

is

for the holiday than in
looking over new material the
early part of this week.
At any rate word around was

The

the similar 1955 week.

Department

compared
of

tender

.(Special to The Financial Chronicle)

KANSAS

Light Corp.'s

While the total dollar volume of wholesale orders remained
at the level of the

winning

With Federated Plans

variety which involved capital expenditures.
offering first to shareholders of

issue will be taiar-

the

,

Pacific

the issuer. In this case, however,
there is no conversion feature in¬

use

~

a

vertible

,

:

~

/.
Purchases of men's sportswear continued to mount with prin¬
cipal gains in walking shorts and swimsuits. Volume in Summei'
.neckwear, sports shirts and hosiery expanded somewhat. How¬

ever,

of

capital.

the

k

in the period ended

3 to 7% higher than a year

/4-1 to 4-5; Pacific Coast 4-4 to 4-8%.

kind

keted to the -general public since

expanded slightly, but

remained under the corresponding 1955 level.

on

™

buying slackened somewhat a week ago,
moderately above that of last year. - In¬
reported, in men's Summer apparel, air coolers

ahd automobile Supplies.

-

;

was

creased volume was

this

volved, thus eliminating the need
for such procedure.

consumer

retail trade:

Sales in

a year ago.

:

.Although

.

.

'"

file
■■

securities

.•iV

week and 39,300 in

of

number among them the rank atid

was

and reports of mill curtailments.

of the belt

As is cusfbmary In large-scale

ding will be limited to two hiige
banking
syndicates which will

Cotton prices finished slightly lower after showing consideraable strength in the forepart of the week. •,
:;

as

100.269 for. 3%s.

Topping all else in the forward
calendar is American Telephone
& Telegraph Co.'s $250 million -of
34-year debentures which Will be
up
for competitive bidding oh
Tuesday.

sales of the 1956 British West African cocoa croo had been com¬

Firmness in early

4% coupon rate

a

corporate
several

terval fdr the major undertakings
that shape up in the period ahead.

again trended upward to reach new highs for the season. Further
advances in roasted coffee prices were announced during the
'Week.:
4 '
*

r

for

Rounding out the week from a
Standpoint
will
be

The holiday at midweek slowed
things down to a walk in the cur¬
rent
period, but investment
bankers were preparing in the in¬

;

Boaster demand for green coffee continued active and prices

*•

43

of business

Wm. E. Thompson

July 2, 1956
OVER .1,000 OFFICES

1
IN U. S. AND

finance,
■

SYSTEM

1#,

Secretary,

CANADA
'

s

The Commercial and Financial Chronicle
44

Thursday, July 5, 1958

.

(104)

from

tractors,
profits"

BUSINESS BUZZ

"high-

reaping

their production for

on

the government.

However,

the Congress this
with the aid of a careful
study made by the Congres¬

year,

I'

sional

A

Behind-the-Scene Interpretation*
"

from the Nation's

fl

VI

M. Uw

XjLm I/IA/

Capital

Joint

WASHINGTON, D. C.—What

to

housing
credit as

passed by the Senate and
proposed by the House Banking
was

Committee.

-

-

-

- -

-

reported on the broad liberali¬
zations proposed in the legisla¬
tion voted by the Senate. They
included- a
loosening of the
terms for FHA insurance all up
and down the line, special new

of insured loans, a new '
section
of FHA insuring
the,;

types of loans
housing, and an
opening up of the Federal Na¬
tional
Mortgage
Association;
Le., the Treasury of the U. S.,
generous

•for

elderly

to a

broad undertaking to

government-sponsored

support

is

House Bank¬

legis¬

housing

Committee,

ing

considerable
detail with the Senate version,
in

varies

but not in the soft credit

direc¬

50,000
imits a year of public housing,
r instance, to the 135,000 units
p<jr year which may be ordered
the
President
under
the
"by

tion. The House proposed

Senate bill. On the other hand,
House

tfie

more

even

perhaps

bill

liberal the

to

access

than

last

House

Friday when it faced the ques¬
tion of whether to clear the way
for passage of the House Bank¬
ing Committee version of this
legislation, was what would be

the

attitude of the Eisenhower

Administration?
1

customary
with
Eisenhower's
**middle of the road" or "liberal"

within

.

good

with

for

powers,

the

Senate, the

of the House

•

who

in

intend

Unless
upon

all

"liberals"

the
or

*

nothing and get tacit

tive

beyond, the proposals

iar

^backed

by Dwight D. Eisen¬
("Republocrat," Pa.).

hower

Since the alleged conservative

Democratic-conservative

publican
-existed
Rules
tion

"coalition"
so

in

far

Re¬

has

1956

never
on

Committee, the key
was

whether

the

the

ques¬
White

House staff substituting

for the
President, would be willing to
take the Committee housing bill
as the price of getting the White
House proposals, or would op¬
pose the Committee bill.

The

-

decision,

was
made to
Consequently the key
Republicans lined up with the
key
conservative
Democrats

oppose.

refused
4.

bill

Committee

the

and

a

was

rule by a vote of 6 to

Previously

the

"Republo-

crats" had gone along with
White

crat"

House

party

on

the

issues

the

"Republo¬

of

Federal

had

loans

Chairman

will

Smith

be

and

the

on

due

to

member

Banking

Committee.
,

Donovan

.

Book

This

correspondent, who has
privy to many of the de¬
velopments
discussed
and/or
been

in

the

book

Donovan

("Eisenhower, the Inside Story,"
by Robert J. Donovan, Harper,
$4.95) has not as yet had this
book in hand long enough to
study it, but IF

ing,

the

Republicans

Rules Committee,

comparatively

in

rare

on

one

the

of the

instances

a

study reveals

brought

Meanwhile,
for

FRAME
may

be outliried. It has been

custom

for

many

years

show the

candidates

The

tended

(D.,

White

confronted

House

demand

with
for

the
Fed¬

Wyo.)

Year—Proceedings of third

"

Conference

versity's

it

going

the

proposed.
Modified

election year, it is al¬
impossible to kill off any
such organized nonsense as the
.Contract Renegotiation Act,
In

an

most

C.

was

New

York Uni¬

School

•

of

Business Administration Alumni

W.

Harold

Renegotiation

of

Graduate

Association

is

re¬

annual Dean's Day Homecoming

of Business

aid,

York
Room

—

School

Graduate

Administration, Dr.
-

MacDowell,

New

University, 115 Broadway,
610, New York 6,

N. Y.

(paper), $2.00.

which purports

full Judiciary subcommittee the

to prevent con¬
tractors, especially defense con-

Celler anti-bank merger bill as

Now

available

A brief report
on

A. S.

both

which

Carl Marks & Co. Inc.

be

FOREIGN
book

was

in¬

One

correspondent

SECURITIES

50 BROAD STREET

dis¬
was

this..

but declined to lend his

political

chore.

Ganpbell Go.

Common Stock

knights

as

or

this

tion

White

eral

1956—Panel

of

Outlook for Business in An Elec¬

House several times better than

Chair¬

Joseph

Months

Six

port — First National Bank of
Chicago, Chicago 90, 111. (paper).

/•

Again, as with "middle of the
housing
programs,
the

—

Institute,
San An¬

Outlook for Business for the Last

road"

readying itself to report to the

armor.

Donovan

to

of

books

of

candidates

in shining

8500

boosting

:

Carolinas.

monop¬

Acting

Senator

in

Research
Culebra
Road,

and

<

Center

tonio, Texas.

"depressed areas," such as the
coal regions of West Virginia or
the textile manufacturing cen¬
ters of New England, and
the

Congress,

Research

a

the




on

Government

Institute

Research

r: Southwest

the economies of these so-called

for

with

W.

O'Mahoney

.

to the Future — Brochure
describing services of the South¬

Key

book

the

crats,

Demo¬

of

"

earlier

the

however,
reading

approached by the White House

Howard

the

under

•

Southwest
Eisenhower

-

top

wood | file case —
Marketing
Facts, Inc., 424 Madison Avenue,
New York 17, N. Y., $50.00.

west

it.

tinguished

conservative

oly,

:

Judi¬

Senate

subcommittee

manship

o;..V'X

'

year

eral

published, has voted in favor
of
the subcommittee-approved
bill, introduced by Chairman J.
William Fulbright (D., Ark.) of
the Banking Committee.
the

of

will later discuss

out,

during the 84th Congress, voted

Chairman

House, with
endorsement,-

passed the Celler bill

ciary

V

*

-

backed proposals to
Federal aid
for the
bootstrap assistance of the Fed¬

information not previously

publication
bless¬

the

Meanwhile,

.

Judi¬

if the

provide

Eisenhower

largest industrial
showing address,
corporate executive, latest figures on sales, as¬
sets and net profits—in hard¬
1,000

corporations

Sure

this

■

is

housing

Treasury for future

cleared for House votes.
House

proposed merger
w

Republican

ment of the

were

the White

a
■

that

means

President

It is probably that the full
Banking Committee, before this

tion is achieved in the involve¬

Presidential

With

.

aspects,

mittee, and Rep. Jesse P. Wolcott of Michigan, the ranking

modera¬

parties to inspire ja few months
prior
to
their
election,
the

proposals

in

of

dex

about

agencies requested

.

.

Area Redevelopment

Aid

Rep. Colmer of the Rules Com¬

what

However,

the

two

of banks.

financial

the

Previously

that

latter

as

,

men

prospective merger.

matters.

would

which

well

the

school aid and "civil rights," so

r

i

Committee

involved

"

bill by conserva¬
standards,
and it WILL

related
Decision to Oppose

Friday the Banking sub¬

giv¬
ing the Department of Justice
a
veto over any bank merger
which was adjudged to lessen
competition or tend toward a
monoply in any locality.

pass.

Industrial Corporations—Card in¬

;

name

reported out a
require the
Federal bank supervisory offi¬
cials to consider the competi¬
tive
and monopoly aspects as
bill

broad housing

proposals in¬
though they went

prospective merger, and
all information
which

ciary Committee finally decides
to
legislate on bank mergers,
it faces a direct challenge from
the Banking Committee on its
jurisdiction to legislate on bank

Last

insist \

cluded,

Justice

Department of

the

Merger

Kong

X —descriptive circular

pro¬

these

ing

does

to the left. Yet its

the

submit

committee of the Senate Bank^-

White House backing ultimately
there
WILL
be
a
relatively

even

of

credit

and

for Hong

book

J reference

Credit

and

Financial

—

and specipage on request—American
ForeignX Credit, Under¬
writers
Corp.iJ 253 Broadway,
/New York 7, N. Y.
i

the

and

Fight Looms

happen again.

to

i

This

members

Rules Committee

This the

businesses

Bank

"double cross.",

a

the customary

Guide

posing to merge would have to
give 90 days advance notice to
the Federal Trade Commission

presentation of information
from
the
standpoint
of
the
author.. The point is that
its

Banking Commit-,

as

subcommittee,

House/

is what is understood

politics

book—»

year

Sales

Kong

Hong

by the

yet undisclosed

as

original auspices were that of a

were

bill. This

an

as

businesses
banks. Under condi¬

campaign document.

conferees,
"yielded" to most of the Senate
tee,

a

well

tions

a
professional
earnest analysis

of

or

as

the
be
study,

and

conference

In

Annual

American Bureau of Metal Sta¬

4, N. Y. (paper), $3.00.

tion bill, affecting all

customary,

after

was

job

adulator

faith,^cleared a "bare
merely
extending
and certain allegedly

proposals, moved much farther

.y

whether this
sugary

the Rules Committee,

consideration.

It

however,

seen,
_

bill

FHA

tics—35th
-

part of the pre-merger notifica¬

was

bared" for
remains to

were

enterprise.

*

bones"

"fifes

is

As

Donovan.

the

some

He

substituted.

Mr.

which hous¬
ing credit will be liberalized,
before clearing it for actioneven
if this negotiation is un¬
official.
y:;
:
1955

Poodle's

tistics, 50 Broadway, New York
.then

was

limits the degree to

In

our

controlling the

determine

can

in

Bulldozer on
preferred prospectus?"
Mr.

from

reaction

"Any

in the queer jargon of to¬
day, "negotiate from strength."
It

American Bureau of Metal Statis¬

>.

can,

not

The. Banking Committee, as is

the final bill
broad, "liberal,"

However/ by

necessary

the

of

J

expensive.

the

the-..Rules

confronted

What

;

Committee

'J

road-block the Rules Committee

makes

Treasury via FNMA
the Senate bill.

the
does

stopping

no

and

lation

i

only a part of the process , of
political negotiation.. So long
as
the Rules Committee clears
V
a bill for floor consideration, it
clears itself of any power to
control the outcome. Once;both
House
and
Senate
"liberal"versions are on the floor, there
from becoming

mortgage loans.
As voted by the

Rules

actually

is

action

Committee

views.]

own

•;

Committee

On the other hand, the
-

the "Chronicle's"

road-

;

'• X

■'

remaining.

time

short

the

Rules

the

of

block

in

this

hurdle

to

on

pretation from the nation's Capital
and may or may not coincide with

,

industry are fearing.
It would be possible but most
difficult

up

commercial

[This column is intended to re¬
flect the "behind the scene" inter¬

>

o

housing

types
most

is. what the de- 7,
b S e r v'e t s of the'"
credit-subsidized
speculative

the

renegotia¬

from

standard

articles.

That

year.

for

is

and

tightening

exemption

-

con¬

renegotiated

be

may

/

$1,000,000, the

moderately,

the

sub-

agencies whose

is

tion

of the

sfcondent

previously

has

column

This

-

-

clear

to

way

tion

of

Congress

for House consideraBanking Committee
version of a broad housing bill
means
NO
housing
bill this

the

,

raised

Is

narrowed

refusal of

the

Committee

Rules

the

against going
such extremes in liberalizing;

and housing mortgage
/,
v

renegotiation

$500,000 to

tracts

Theoretically,

contract

minimum

to

from

Bill Or No Bill

nerves"

government-sponsored

ject

number

ing

"war * of

William

Mississippi.

of

Colmer

respecting hous¬
legislation
is
that
the
Eisenhower Administration has
lined
itself up with the con¬
servatives
in
Congress
in a
happened

has

In-

this patent boondoggle.

as

The

Virginia and

of

On

moderating
considerably
the
rigors of what the informed re-

If® gard
Smith

Committee

ternal Revenue staff, is actually

A

name

to

second

TEL:

HANOVER 2-0050

•

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

LEANER & GO.
Investment Securities

10 Post Office Square, Boston

9, Mass.

Telephone

\

II

'-miii

\

.iiimn.mn.iA

.

Teletype

HUbbard 2-1990

"

BS 69

Volume 184

Number 5548

.

.

.

The Commercial and Financial Chronicle

PICTORIAL A

I

E. B. de Selding, Spencer Trash & Co.; Pearce D.
Smith, Hemphill, Noyes & Co.; Robert Menschel,
Goldman, Sachs & Co.; Winthrop Knowlton, White, Weld & Co.; Peter Gimbel, White, Weld & Co.

Gene

Cooke,
Vance

White, Weld & Co., New
Dine, Morgan Stanley

Haven,
& Co.;

Van

Conn.; Ian McFarlane, Morgan Stanley &
Bruce McBretney, Wcod, Struthers & Co.

Co.;

\

William

G.

Gallagher, Kidder, Peabody & Co., chairman
Committee; Breen Halpin, Goldman, Sachs

of
&

Entertainment

♦

Sterling McKittrick, Ingalls &
Association; Sidney Scott,

Thcmas

E.

,

'

;

■

;

the
Co.

.

Edwin

Beck

and

Hal

E.

Financial

'

'■

r

"

,

Snyder; Robert F. Seebeck, Smith, Barney & Co., President of
Smith, Barney & Co.; David D. Lynch, Kidder, Peabody & Co.

MacNiven, Baxter, Williams & Co.; Paul Voigt, First Boston
Wohlforth, Hemphill, Noyes & Co.; Charles H. Maspero, R. D.




L.

Corporation;
White

&

Co.

Robert

the

M.

Murphy,

Commercial

and

Chronicle

t

'

*'

Maitland

<

t

'

it

■

_

"

_

T.

Ijams,

First

Boston Corporation;
Abbott, Proctor & Paine

Thompson,

•

Larry Black, Dominick & Dominich; Jay Hyde, Henry Herrman A
& Co.; A. Parker Hall, Jr., Shearson, Hammill & Co.; Charles C.

Alan

McKean

Co.;
Lee,

John Garvey, McDonnell
Jr., White, Weld <ft Co.

Cohn, Wertheim & Co.; Dcnald Stone, E. H. Stern <fi Co.; Joseph Donner, First Boston
Corporation; Joe Wise, Dean Witter & Co.

The Commercial and Financial Chronicle

PICTORIAL 3

Clinton

Gilbert,

Jr.,

Blyth

A

Bache

Co., Inc.; Robert Strachan, Morgan Stanley A
A Co.; ^Charles Stahl, De Pontet A Co., Inc.

,,

Brent

Ralph

Lennart

J.

Jr.,

Hornblower

Gran,

Osborne

A

Weeks;

A Thurlow;
Edward Le Maire,

E,

John

Andrews,
>

S. Scott Goddard, Jr., Abbott, Proctor A
Donald H. Newman, Allen A Company;
Osborne A Thurlow

Clark, Dodge
Dominick

Pains;

Jerry McNamara, Goldman, Sachs A Co.; Ted Marache, Hirsch A Co.; John Sipp, F. S. Moseley A Co.;
Lewis Kaufman, Goldman, Sachs A Co.




Murray,

'

B. J. Van Ingen A Co.,
F. Hutton A Company;

Inc.;

Bill

Pete

Ehrlich,

Clayton,

E,

F,

.

Thursday, July 5, 1956

.

Hirsch

A

Hutton

Co.;

A

A.

M.

Murray,

Company

.

Neale, Parrish A Co.; Edward Karlsson, F. S. Moseley A Co.
^ndrew Eberstadt, F. Eberstadt A Co., Inc.

Hornblower,

Morgan

Co.; John Richardson,

.

A

A

Co.;

John

Tom

Davison,

Charles

H.

Young,

Paul

Williams,

Kidder,

Peabody

Sipp,

Co.;

Hamp

Lynch, Pierce, Fenner A

Dominick

A

Beane

Frady,

Merrill

Zimmerman,
Reynolds A

Goldman, Sachs A Co.; James K. Hickok, Drexel A Co.; Bracebridge
Co.; James J. O'Donnell, F. S. Smithers A Co.; Peter B. Stachelberg,
Hallgarten A Co.; Dana Jackson, Lee Higginson Corporation

Jr.,

Stern, Lauer

A

Co.;
A

Dick Baldwin, Reynolds A Co.;
Co.; Joe Rutter, Rutter A Co.

Bill

Goerdecke,

Smith,

H.

Barney

Volume 184

Junius

Number 5548

Peake,

Garvin
Lee

Bantel

.

.

A

;

The Commercial and Financial Chronicle

Co.;

Htgginson

Fred Davidson,
Lee Higginson Corporation;
Corporation; Jack Cirenza, Goodbody A Co,

t

I

John

Harbeck,
B. Roll,

Jr., White, Weld
Jr., Clark, Dodge
John

William

Schill,

Reynolds

A

Ripley

D.

Co.;

A




Co.

Jack

Barker,

Lee,

Reynolds

A

Co.;

.»

/

Pete

Rosenbaum,

Kelsey, Union Securities Corporation; Bill
Incorporated; Joe Wise, Dean Witter A Co.

Burton,

Ken

Mountcastle, Reynolds A Co.; Robert
McDonnell, McDonnell A Co.

ft

Salomon

Bros. A Hutzler;
Lehman Brothers

A Co.; Douglas Delanoy, Jr., Aubrey G. Lanston A Co., Inc.;
& Co.; Stuart L. Murdock, Brown Brothers Harriman & Co.;
Lelong, New York Hanseatic Corporation

Jack

Joe

Gardner,

Don

.1

George Carey, First Boston Corporation; Eric Bjornlund, Kidder,
Peabody A Co.; Douglas Campbell, First Boston Corporation

Lloyd

PICTORIAL

Harriman

Lee

Klingenstein,

•

■

1

V

Reynolds

Ki.

-

A

C

Co.;

*V

Dick Vivian, First Boston Corporation; Vernon Lee, .American Stock
Exchange; Fred Owen, First Boston Corporation

William Mclntire, Dominick A Dominick; William Roome, Dominick A Dominick; Don
Kenney,
Ripley & Co. Incorporated; Lorrin C. Mawdsley, D'Assern A Co.; Paul Hood, Kidder,
Peabody A Co.; Dave Hamilton, Equitable Securities Corporation; Jack Harned, Glore, Forgan A Co.
Harriman

Frank Cullum,

W.

C.

F.

S.

Langley A Co.; Henry Willems, Hornblower
Moseley A Co.; Jack Toolan, Hornblower A

Weeks;
Weeks

A

Peter

Burr,

The Commercial and Financial Chronicle

PICTORIAL D
i

'

'

...

Thursday, July 5, 1956

'

Phil Allatta, American Securities Corporation; Herb
Nick

Harris,

R,

W. Pressprich

&

Co.;

Hugh

Mathiasen, Schoellkopf, Hut ton A Pomeroy, Inc.;
Hood, R, W, Pressprich & Co.

John

Watching the water show

Some

Jim Sherwood, Sherwood d Co.; Edward Johnson,

Van Alstyne, Noel & Co.; Charles I. Petschek,
Kuhn, Loeb A Co.

Dudley Cates, Kidder, Peabody & Co.; Fred Carleton, Blyth A Co., Inc.;
A Co^ Inc.; Bud Treman, Dillon, Read & Co.




Petersen, Hemphill, Noyee & Co.; Bill Middendorf, Wood,
Austen Colgate, Wood, Struthere & Co.

Dick Karrenbrock,

Blyth

Donald

of

the

boys jazzing it

up

at

the

Struthers

&

Co.;

outing

Stone, E. H. Stern & Co.; John Hilson, Wertheim & Co.; John Weinberg, Goldman, Sachs
Co.; Jack Shepherd, Goldman, Sachs A Co.; Jerry McNamara, Goldman, Sachs A Co.

John

Maxwell, Jr., Tucker, Anthony & Co.; James Cooper, First Boston Corporation; Bill Steen,
First Boston Corporation

A