Full text of Commercial and Financial Chronicle : July 7, 1955, Vol. 182, No. 5444

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UNIVERSITY
OF MICHIGAN

ESTABLISHED 1S39

JUKI 2 1955
mmmim
LIBRARY

Reg. U. 8. Pat. Office

Volume

Number

182

New York

5444

Price

7, N. Y., Thursday, July 7, 1955

40

Cents

Copy

a

EDITORIAL

Bank

Mergers—Ad justment More Correspondents' Views
To Changing Condition s

We See It

As

Apparently the rather general fear that recent
increases

in

the

of

announcement

United

Steel

States

Executive of large New York bank, asserting recent

poration of an advance in price of its products.
In fact, if the concept of inflation now seemingly

general is accepted—that "inflation" is an
in prices, pure and simple—the action
of the officials of "Big Steel" would appear to
be proof positive that in at least one instance
higher wages at this time are inflationary. The
truth of the matter is likely to be this time, as in
the past, that in some cases higher wages will be
followed by boosts in prices, while in others
economic forces will prevent such a rise in the
\

-

But this sort of discussion of the warrant, or

the lack of it, for
to

to

us

Let

fail

there

higher
reach

to

wages

the

at this time seems

heart

of the

matter.

be

no misunderstanding
of what we
We think that this practice of union
leaders in making use of their monopoly power
to increase the pay of their members is economi¬
cally unfortunate. There is in it, too, an element
of social injustice of the sort so often indulged in
by monopolists whether they be in the hands of
capita] or labor. This process of forcing wages of
workmen up tends to take away from the general
public the opportunity which should be theirs

condition.

damental
As

prices

fruits

unchanged

for

when

it,* the

are

with

in

hibit any

»

on

♦A

25

page

statement

of

tatives,

the

D.

on

in

anteed

annual

Cel-

the

ened,
J.

overcome

of

tions

submitted to the Antitrust Subcom¬
the Judiciary of the House of Represen¬

aware.

now

are

we

James

Rising

Continued

Underwriters, dealers and investors

securities are afforded a complete picture of issues now registered with
and potential undertakings in our "Securities in Registration" Section, starting on

porate

DEALERS

were

Mr.

in cor¬
the SEC
page 40.

>

Municipal,

JULY INVESTMENT LETTER

CORN EXCHANGE

Copy

on

NEW

115

OTHER

NEW

YORK

IBBB

STOCK

STOCK ANO COMMODITY

PORTFOLIOS"

Miami

Beach

—

THE FIRST NATIONAL CITY BANK

Rye,

OF NEW YORK

EXCHANGES

Broadway, New York 6, N.Y.

t.l.WATSON&CO.
established

Teletype: NY 1-708

Active

Dealers,

Markets

Banks

Brokers

Members'
Commission

Stock

Orders

Canadian Exchanges

CANADIAN

Exchange

Executed On

Common Stocks

BROADWAY

NEW YORK

4, N. Y.
•

I

DIRECT

WIRES TO

BRIDGEPORT

Dallas




•

PERTH AMBOY

Central Maine

CANADIAN

COMMON

All

Analysis

Dohdoox Securities

MONTREAL AND TORONTO

NEW YORK STOCK

115 BROADWAY
NEW YORK

Power Co.

.

upon

request

DEPARTMENT

Gooqbody a
MEMBERS

COMPANY

FIRST

BANK

coast to coast

At Regular Rates

Utility Bonds,
50

from

BONDS & STOCKS

Teletype NY 1-2270

Preferred and

offices

Chase Manhattan

5

CANADIAN

SECURITIES

American

34

BROADWAY, NEW YORK

Maintained

and

1832

New York Stock Exchange

DEPARTMENT

THE

Members New York Stock Exchange

N. Y.

Net

BOND

REQUEST

HARRIS, UPHAM & C?
120

Bond Dept.

Agency

"TEN SAMPLE

EXCHANGE

To

Public

29

Bonds and Notes

STUDY

ARE NOW AVAILABLE

J. R. WlLLISTON & CO.
ANO

ST., N.Y.

BONDS

Request

ESTABLISHED

\

page

COPIES OF OUR

ON

MEMBERS

Public Housing

♦iisiS*-

•

The Widow's Mite

bank
DEPARTMENT

m

MUNICIPAL

urn

The Oil Stocks

HAnover 2-3700

30 BROAD

STATE

Forecasting the Market

chemical

BOND

on

and

Securities
telepbone:

Carey

State, Municipal

in

U. S. Government,
State and

B.

1955.

C., July 5,

—

disaster

apparently
has no faith in the American system
or the American people.
As a matter of fact, the settle¬
ments with Ford and General Motors were greeted with a
well

31

page

workers

of

fiber

moral

be

would

McCloy

might be sub¬
tend to create a
on

the guar¬

ruined, economic disaster
us, and we would
drift into Socialism or Communism.
How far from reality these predic¬
would

John

on

We were told
would be weak¬

wage.

that free enterprise

In doing so, it would act to pro¬

SECURITIES NOW IN REGISTRATION

his speech

peated

by Mr. McCloy

Committee

Washington,

wages,

ings of disaster, the greediness of the
Risings of that date are re¬

Continued

mittee

Continued

been

Frank

bank merger where the effect

competition otherwise

it has

compensation,

stantially to lessen competition or to

would, force them down in favor of the consumer

received,

; unemployment
Social Security, the
right of labor to organize and so on.
All the dreary arguments, the warn¬

minimum

to mergers that
Section 7 of the

Clayton Antitrust Act.

been

have

Reading Mr. Frank Rising's speech on the "Guaranteed
Wage" made me feel that we were back in the
1930's and the matters at issue were

a

respect

contained

Annual

Guaranteed

the

Annual

on

sions

on

JAMES B. CAREY

May 2 of this year. H.R. 5948
would extend to banks the provi¬

ler,

an¬

President, International Union of Electrical, Radio and
Machine Workers (CIO)
/J

Subcom¬

mittee, the Honorable Emanuel

for

today

issue start¬
ing with that of June 2. Those that can be accommodated
today appear below; others subsequently.—EDITOR.
{

under immediate consid¬

H.R. 5948,

provision

making

to limit the number carried in each

necessary

bill introduced
in the House of Representatives by
the Chairman of the Judiciary Com¬
eration

leaving

themselves,

understand

I

*

as

that

communications

condition which is under¬

mittee has

enjoying to the full the benefit of improved
production processes and other types of industrial
progress. Grasping labor organizations reach out
these

...

any

taken, in the public interest.

of

take

welcome

response

exemplified in the contracts re¬
on behalf of the auto workers' union.
The decision to conduct the symposium on the subject
coincided with the publication in the May 26 issue of
Frank Rising's article "Guaranteed Annual Wage: -Blue
Sky and Brass Tacks." Because of the large number of

econmy,

therefore

I

is

comment

for

philosophy
cently negotiated

steady

a

of

group

communications received in response to

Wage

examination of banks and their fun¬

have to say.

and

provide

invitation

its

'

banks

"Chronicle"

The

other group of

flow of lifeblood into
and it is essential to the
well-being of the nation that they remain sound, vig¬
orous and strong.
It is the duty of Congress, the super¬
visory authorities at both Federal
and Stclte levels, and of the banks
themselves to provide assurance that
this indeed continues to
be their
Our

another

our

i

America's, growing

for

issue

by the "Chronicle" in

for expressions of opinion regarding the
Guaranteed Annual Wage doctrine.

bank

adjustment of

nation's economy, points
out mergers have had little effect on bank concentra¬
tion in the nation, and, on the other hand, have aided
greatly in meeting the increasingly complex needs for
banking services. Stresses importance of healthy and
sound competitive banking, and lauds excellent job done
by nation's banks in the postwar period. Decries belief
increase in bank size tends toward monopoly.

advance

consumers.

an

banks to changing needs in the

very

charge to

in large part represent

mergers

this

in

its request

to

Cor¬

made

communications received

Chairman, Chase Manhattan Bank

,

"inflationary" has been aggravated by the

prove

Provision

McCLOY*

By JOHN J.

direct and indirect, would

wages,

Co.

EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

Grporatioti
40 Exchange Place,

New York S.N.Y,

IRA HAUPT & CO.
York Stock Exchanga
Principal Exchanges

Members New
and

other

111

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

WHitehall 4-8161

Boston

Teletype NY 1-2708

Telephone:

Enterprise

1820

2

(62)

The Commercial and Financial Chronicle
vvr

The
For

Security I Like Best

Banks, Brokers, Dealers only

Bank and Insurance

This

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

participate and give their

.

reasons

for favoring

(The articles contained in this forum

they

are

Industrials,

be regarded,

to

MILTON

A.

as an

offer

to

be, nor
sell the securities discussed.)
to

equipped
with
the
Stromberg
captured
first
and
second
place in the Mobilgas Economy run.

Harris, Upham & Co., New York City
New

Y'ork

and other

Stocks and Bonds

Stock

leading exchanges.
Radio

The

Bendix Aviation Company
highly diversified, agressive,
growth company serving the au¬
tomobile, aviation and electronic
is

Foreign Securities

(Page 2.)

Marine

Automatic

Members New York Stock Exchange
Stock Exchange

Members American

CHARLES

pilots.

Depth recorders.

the

•Used

most

aboard

wor.ua

promising

New York Hanseatic

cate

factors for the

r-

Associate

120

ing
it

1920

Detroit, Mich.

search

Exchange

Broadway, New York 5

WOrth 4-2300
Private

Teletype NY 1-40
to

Wires

Principal Cities

ing

special

and

Specialists in

cally

Rights & Scrip
Since 1917\

Milton A. Allen

shows

that

such

for

cal,

States.

during

E. I. duPont

This

the

study

Allied Chemi¬

million,

for

Detroit

fffopONNELL & fQ

International

Machines, $14.1 million,
Socony Mobile Oil, $16 mil¬

American
120

Stuck

York

Stock

Exchange
Exchange

«

BROADWAY, NEW YORK 5

*

TEL.

RE&tor

These

figures

with

pared

may be com¬
million outlay

$81

an

by Bendix Aviation and it is

Members
New

lion.

2-781S

rea¬

sonable to expect that its activities
in this connection will eventually

off in terms of

pay

military

products,

new

peacetime

and

applica¬

tions, and sales and earnings.
A tremendous

77%,

the

for

Trading Markets

American Furniture

Armed

ticipated

Company

Alabama-Tennessee Natural
Gas

However,
be

seriously

39%

Scott, Horner &

is

tive,

Bendix

It

is

this

an¬

busi¬

aviation,

both

The remaining

between

automo¬

tures
tem

mis¬

and

consumer

manufactures

a

States.

rh.rUt

wards
end

designed and

.1

the

units

World

of

fits

$315

the

million
War

Fortier

up¬

since

II.

The

plant

the

bene¬

will

be

threefold. First, it will materially
lower costs on certain base chem¬

being

manufactured

der

higher

various types of electronic

1953

132,349,000

194.525,000

Cash

51,898,000

44,892,000

Sales

007,711,000

638,544,000

$5.61

$4.10

share-

per

that

9.86

February,

the

2-for-l

stock

split

in

1955.

Over

!': J

! "

Bendix's

$1.32
share

Radio

Continuing Interest in

Polar

systems.

Path

Com¬

pass.

JBendix

Beam

Corp.

Guidance

Sys¬

size

funded

It

navigation control.

§Ground Radar.
gyro-actuated

navigation
magnegic

Philadelphia 2, Pa.

storms

dix

4s, 1990
Pocono Hotels Uniti
Leeds & Lippincott Unitj

Cambridge Bldg. 4s, 1963
Pratt Read Co. Common

polar

miles

a

automatic

of

are

ahead

of

where

a

commercial

country
flight as
proaches and landings.

§ Bendix

produces

types

no

For

pictures
plane. (Ben¬
this

on

sev¬

well

less

as

for

than

ap¬

eight

and

Trucks

drives.

Electric

Members Phila.-Balt. Stock
Exchange

Pennsylvania Bldg., Philadelphia
N- Y. Phone

COrtlandt 7-6814

years

the

ago

founded

was

products

We

studied

gasoline

pumps.

in

one

the

in
the

Aviation

production

relatively

of

the

of

strongest

these

heavy

fields.

research
with

the

dix's
to

management,

the

to

lead

logical conclusion that the

company will do

In

tends

its

better than just

position

in

industry.

conclusion, it is the belief of

Aviation, down
its

high of

than

9

times

BUY

around

its

Lincoln
'

for Ford

and

listed

share.

per

7 points

59V2, selling at
estimated
per

earn¬

share is

OF AMERICA
to

be

The

stock

is

-

-

i

-

in

opinion promises

our

of the

one

ing producers in

Current price

$1.75

de¬

Phone

materials

raw

costs

have

richly reward
the Colorado

for

write

new

illustrated brochure

American Cyanmargins have con¬
been
below
those
of

and

limestone, there will be sub¬
stantial savings and there is also
cial

or

approximately
share

per

been

leading chemical concerns.
turning to natural gas, which
has a price advantage over coal

McCOY & WILLARD '
Investment Securities
30 FEDERAL ST., BOSTON
A.

T.

&

Private

T.

Teletype

Phone

to

—

New

Boston
York

128

City

REctor 2-4208

potential of chem-

derivatives

from

petro¬

chemistry.
Ammonia,
hycVoger,
cyanide,
sulphuric acid, and acetylene will
be

produced at

the

Fortier

"intermediates"

further
"end

phate

and

to

plant

will

and

processed

products,"

portant

make,

ammonium

acrylonitrile,

material

the

end

on

products,

intermediates

can

the

im¬

sold

of
as

as

because
Fortier

the

pansion

this

low

production

in

capacity

with

3S-630

1953,

OVER-THE-COUNTER

American

Cyanamid's

derived

were

from

pharmaceuticals and
biologicals for human and veteri¬

25%;

organic

chemi¬

19%; industrial chemicals,
remaining.business was

The

divided

among

partments

in

the following de¬

order

Continued

of size:

agri-

14-Year

Performance

page

25

of

35 Industrial Stocks
FOLDER ON REQUEST

1

National Quotation Bureau
Incorporated

46 Front Street
on

?

INDUSTRIAL STOCK INDEX

the

follows:

use,

N. Q. B.

small

Company's several divisions about

16%.

Ts efype

costs.

expenditure.

as

Telephone Richmond 2-2530

Largely
flexibility, the

Moreover, construction has been
designed to permit a 100% ex¬

sales

1CO,
c3<
ZERO COURT STREET, BOSTON 9, MASS.

plant is expected to have

unusually

In

/T>
KELLER BROTHERS

materials.

raw

of

New Offices

fin¬

ished goods, or used by the Com¬
pany

our

in

demand for

output
be

visit

as

rubber, synthetic tex¬
plastics,
and
soil
condi¬

Depending

in Boston

sul¬

used

now

When

be

synthetic
tiles,-

cals,
of

recommending

firm's

In

narian

price

now

high.

sistently

a

recent

the New York Stock Ex¬

on

Mer¬

change.

some

now

are

which

profit

tioners.

aggressiveness and ability of Ben¬

$52%
for

from

expenditures, combined

fStromberg Carburetor.

i

of

and aviation in¬

ings of about $5.50

•Bendix makes half the radios
radios

shares

Bendix

each

Considering

dix

lining.
Universal joints.
Hydraulic brakes.

'

no

forthcoming

future

The

Company is

less

the

is

shares

opinion of this

be

atomic, electronic

Brake

all

of

recom¬

URANIUM CORPORATION

calcium

on

subsequently

were

veloped from these

as

immediate

from

and

ex¬

this writer that the stock of Ben¬

Air brakes.

cury.

There

preferred

4,555,000

will

progress

the

*Car radios.

Samuel K. Piiilli

is

company

planes.)

of heavy radar.

Automobiles

or

its

is the

maintain

Starter

last

stock.

entities

and

ground signal with the plane's
pilot for automatic control of

cross

different

accurate

regions

install

to

for

unreliable.

locates

contracted

fleets

ILinks

Public Service Coordinated

which

150

has

the

compasses

"(Radar

eral

John B. Stetson Pfd.

in

compass

per

quarter

a

scope.

debt
of

dustries.

BOENNING & CO.

was

$1.13

writer that the greatest strides and

Actuating and control devices.

*A

same

capitalization

and

common

Traffic and

the

we

Corporation

Plateau.
45

the expansion

ahead

Landing gear.
Ignition systems.
Navigation instruments.

Keyes Fibre Co.

for

Bendix's
its

Filters.

Parchment

share against

tremely simple for

tem.

Kalamazoo Vegetable

year

year.

communication

Bendix

tAirborne weather radar.

Co.

fiscal

present

per

ago

Stylon

stock at 75l per share. It is

cyanamide—made from limestone,
coke,
and
air.
Thousands
of

but

year

selling around $4.

other

Earnings for the first quarter of

a

mended

pur¬

Company at
Third, it will

quotations.

amid's
for

being

now

Cyanamid
to
further
diversify its activities and prod¬

12.43

1.50+ 7% Stk. 1.88

Adjusted

are

permit

Over

J 954

"Taxes

icals

business

As<-ets___$232,959,000 $274,431,000

""Dividends

Broadway,N.Y.6 COrtlandt T>5680

Second, it Will supply
Cyanamid with other base chem¬

ucts.

computers and other items.

share-

111

and

by American Cyanamid un¬
presently
more,, expensive

The company also manufactures
Television
Sets
and
Radios,
as

per

1897

Tokyo—70 Branches

Brokers & Investment Bankers

which

chased outside by the

"Earn.

Home Office

pro¬

of plant

invested

quency sound waves.

Liabilities

Established

in

methods.

Current

Securities Co., Ltd.

Cyanamid has

P nlUr,.

of

of

used

Current

Yamaichi

impor¬

general

in

glass, plastics and ceramics, more
efficiently than any other tech¬
nique, by the use of high fre¬

For Aviation

"The




is

write

or

additions,

an

as

Call

*

a

icals

Oxygen supply equipment.

375

of

tant

manufac¬

Generators.

Grinnell

plant

most

ultra-sonic cleaning sys¬
which cleans metals, rubber,

well

knowledge

of Japanese potential.

production.

one

Co.

the United

investors with

Or¬

is

This

by the

power brake for bikes

in

Bendix

to investors with vision—

now

in

reactor for

have unusual appeal

may

outside

leans

Ben¬

which is being adopted by vir¬
tually every maior bicycle manu¬
facturer

offices

SECURITIES

petro¬

of New

several

headed

fields.

products:

LD 33

Continental Telephone

plant

power

company

multi-speed

branch

our

JAPANESE

one

chemical

a.

Financial

Starters.

A

under

Bendix is
a
very strong
par¬
ticipant in guided missile work.

"

Lynchburg, Va.
Tele. LY 62

for

divided

marine,

Fortier

the

atomic

of Bendix's over-all

is

cellaneous

Mason, Inc.

For

a

For

million

P|

Miscellaneous

The

to

factors

investment interest

a

of

Edison

affected.

civil and defense.

Dan River Mills

of

company is taking
that earnings will not

production

Company

Forces.
some

the

see

About 61%

Gas

Natural

that

will be cutback in the future.

ness

steps to

Company

Commonwealth

percentage, about
Bendix's production is

of

tion that lend

of

Cyanamid situa¬

gram

Business
and

number

a

Government

group

utility

a

Direct wires

con¬

design for

a
a

devices

production

'

thing, the $48-

Laboratory.

1954,

year

expended $61 million

purposes,

$15

for

companies designing

major corporation

outer

Mobile, Ala.

to the stock at this time.

is in partnership with

the

United

the

in

are

American

Energy

electronic

dix

practi¬

any

fire

management contract basis.

more

research

than

and

com-

the

in

Energy Commission, Ben¬
is producing instrumentation

dix

"Data
this
company is
o n

automatic

an

reckoning

reactor

Research

Digests,"

spending

This

Atomic

sur¬

by

vey

into

There

indi¬

to

traveled.

Bendix completed

re¬

a

Nautilus, the

submarine,

Atomic

Accord¬

to

dead

is

pro¬

gram.

U.S.S.

distance

fed

NY 1-1557

La.-Birmingham, Ala.

American Cyanamid Co.

trol.

apparent

ambitious

Member

Stock

Bendix

s

for

>r

the

a.oniic

and

information is

future regard¬

Corporation

lis.

speed

HAnover 2-0700

New Orleans,

Chairman of Investment Counsel, Inc.

Radio telephones.

Probably one
of

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

.V COLLINS

President, Investment Letters, Inc.

Transmitters.

industries.

Steiner, Rouse & Co!

finders.

"Bendix-Frieze Log.

a

Bought—Sold—Quoted

receivers.

Directional

American

Collins, President, inveblllieril
Letters,. Inc.,
Detroit,
Mich.

Exchange

Bendix Aviation

Louisiana Securities

A.

J.

,

Members

Co.—Milton

American Cyanamid Co.—Charles

Carburetors

Public Utility

Aviation

Allen, of Harris, Upham & Co.,
New York City (Page 2.)

tears

ALLEN

Alabama &

Selections

particular security.

a

intended

not

are

Week's

Participants and

Their

Bendix

Stocks

Established

Forum

Thursday, July 7, 1955

New York 4, N. Y.

Number 5444

132

Volume

.

.

The

.

Commercikl

(63)

and Financial Chronicle

■

y"V

INDEX

Danger Signals in Present

PaSe

Articles and News

Stock Market

Bank

'By GENE FENTON

Mergers: Adjustment to Changing Conditions

1

—John J. McCloy

.

_Cover

i.

.-

DADDY'S LONG LEGS

Investment Analyst, New York City
Danger Signals in Present Stock Market Boom
'

Mr. Fentcn analyzes

'

—Gene Fenton

the major forces affecting the stock mar-

-

can

(1) business activity and corporate earnings;

as:

here

fast.

We'll buy his junk

The Conspiracy Against Gold—Harry Sears___

4

Spalding (A. G.) and

(3) govern¬
mental fiscal policy and credit conditions; (4) the behavior'
of professional market Operators, and - (5) the behavior of'
the speculative publie. Concludes stock market gives indicaVtions of being in the process of forming a major bull market,
; top, and the prudent investment policy should be to. work
into a properly balanced portfolio in order to prepare for the
contingencies inherent in the present price level.
v

him

get

3

:

_i

~

ket, such

3

5

without being asked !

(2) differential yields and institutional policy ;

an

Age of Sports—Ira U. Cobleigh

y

The

market today

stock

is d's-

playing symptoms highly reminis¬
cent of the 1937 and 1946 periods.
diagnosis of present conditions

A

that

indicates
a

related

i

a.u s a-1

Gene t

v e

tone

en ton

-

'forces of earnings,.dividends, and
interest rates. In addition to these
•

major

effects

of

business

ac¬

factors,'j the

.

changing

levels

of

tivity, credit conditions, and gov¬
ernment fiscal

policies, are inter¬
these, economic

Although

woven.

-iorces

are

-extreme]^

significant,

they do not fully explain major
"stock market movements. For ex¬
ample, the stock of a

well known

'company under reasonably stable
^conditions of financial strength,

and dividends, will at
time sell at four or f ve times

earnings,
,Y)ne

its
25

:

earnings,
to

-

and

at

another,

at
The

times.

30

for

reason

its
.roots, to a great degree in the in¬
tangible forces of market psychologyl Stock market behavior
is peculiarly concerned with dis¬
wide

these

discrepancies

has

rising trend of corporate earnings
result in an advancing price level.

future economic conditions appear

of

•

be most affected by the degree

optimism

characterizes
mood

.

<

pessimism

or

that

psychological

the

of the investor.

Market

reaches

-

T

public

the

more

tribution

many

weak

months

The
Securities and Exchange Commis¬
sion
estimated
the holdings of
common
and preferred stocks at
market values on Dec. 31, 1954.

the

Institutions

this

on

date

owned

approximately 25% with the. other
75%
owned by a broad hetero¬

element which contains
professionals at one end and the
speculative public at the other.

geneous

lacking

make
tone

only

and

continue

stocks

highs. Ultimately
begins to turn easier.

Standard Uranium

From Washington

specialized in

I-

I"

v.

I

/;

'

^

r,:'- \

initial decline
is greeted as an opportunity to
pick up more stock by the spec¬
ulative public on the basis of the
earnings
prevailing.
As
good
prices continue to decline, the

paper

confidence

profits

wavers;

losses,

become

Continued

on

page

PREFERRED STOCKS

Spencer Trask & Co.

NSTA Notes

Observations—A. Wilfred May__

Reporter's

Railroad

•




Schenectady

•
•

Teletype NY 1-1825 & NY 1-1826
Direct Wires

Philadelphia

•

Chicago

•

to

Los Angeles

WHY

28

Securities

43

—

Prospective Security Offerings

—

Securities Salesman's Corner

We

45

Firmly Believe

The Market.

.

.

Streete___

and You—By Wallace

The State of Trade

17

—

The Security I Like Best

Glens Falls
Worcester

2

48
Will Become One of the

26

Reg.
WILLIAM

B.

WILLIAM

t~

Uranium

4

and Industry__

1

Draperr Gardens, London,
land, c/o Edwards & Smith.

Weekly

Twice

and

U. S. Patent Office
DANA

Reentered

COMPANY, Publlaheri

Place, New York 7, N. Y.

25,

ary

by William
Company

SEIBERT,
7,

President

1955

(general news and ad¬
"°.ry Monday (com¬
market quotation
records, corporation news, bank clearings,

vertising

state

issue)

an,

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and city news, etc.).

Other

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Offices:

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111.

135

Top-Ranking Independent

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toe

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Febru¬

matter

ofnce

at

New

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

Current

price around

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year;

per

S.

$2.CO

per

share

of

in

year.

$62.00 per year.

Report Available

I

Other

Thursday

statistical

Eng¬

(

SEIBERT, Editor & Publisher

July

B.

1955

194^,

2-9570 to 9576

DANA

C.

E.

Uranium Producers
Copyright

CHRONICLE

Pan-American

'

Mid-Continent

16

___

—

Washington and You

Every

Chicago

Exchange PI., N. Y.

19

—

Securities Now in Registration

HERBERT D.

TELETYPE N. Y. 1-5

•

40

47

Public Utility Securities....

plete

Nashville

INC.

35

!_—

Report

more

Singer, Bean

5

—

.Our Reporter on Governments
Our

trading markets in

over-the-counter securities

250

HA 2-0270

15

News About Banks and Bankers

Thursday,

•

We maintain

8

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—

ST., NEW YORK 4, N. Y.

Boston

'

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-

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Members New York Stock Exchange

•

V.'" I

•!

Jj

Subscriptions

Albany '

;

Sterilizing

39

Mutual Funds

FINANCIAL

TELEPHONE HAnover 2-4300

10

Activity

Indications of Current Business

REctor

BROAD

-

than

25 Park

25

Sight".. 13

Ahead of the News—Carlisle Bargeron____

The COMMERCIAL

have

•

Electric Steam
Einzig: "No Sterling Devaluation or Convertibility in

Published

For many years we

8

Recommendations____

the

Nevertheless,

his

Factors

8

Coming Events in the Investment Field

new

speculators'

Straus-Duparquet

14

Bookshelf——

Standard

broad

the

in

The

display

to

however,
is

strong

complete.

to

selective

dis¬

requires

ones

continues

movement

ag¬

of

process
stocks from

of

to

certain

buys,

This

gressively.

to

and

enthusiastic

understand¬
ing of the composition and dis¬

tribution of stocx ownership.

Man's

dinner

the other hand, grows

on

office

City

20

-_

^___

,

public,

branch

Lake

Cover {

—

Nathan
Business

professional, realizing the

stability;

an

Salt

Gulf Coast Leaseholds

Dealer-Broker Investment

ply of securities within the mar¬
ket itself. The basic requisite for

analysis is

(Editorial)

See It

Bank and Insurance Stocks

h'gh level of slock prices largely
discounts
the
favorable atmos¬

hands

studies

analysis

Is Dead___!____ 47

to

Corpus Chri^ti Refining Co.

subject.
The

Teletype: NY 1-4043

wire

Regular Features
As We

market! be¬
after

favorite

the

comes

stock

Broadway, New York 4

DIgby 4-4970

Mortgage Investment. 28

Lloyd W. Smith, Prominent Wall St. Banker,

board

the

to

flocks
the

and

room

42

Direct

activity and earnings receive wide
publicity. Newspaners discuss the
coming new era, business leaders
are
almost uniformly optimistic.'
The

28

Financial Gap
Puerto Rico Cited as Growing Field for

City Stock Exch.

Spokane Stock Exchange

Corporations Filling

"distribution

the

invited

J. F. REILLY & CO.

20

Members Salt Lake

area" where the boom in basiness

market

an

Partnership"..

Guaranty Trust Co. "Survey" Sees Credit

to-attract more
attention and the Speculative pub¬
lic
begins to show an interest.
Gradually, the market feeds on
itself as the public invests more
and more money with, the advanc¬
ing
stock
market.
Finally the

forces of the demand for and sup¬

such

Ford-General Motors

"GAW" Labor Contracts a. "Prosperity

The market begins

market

inquiries

19

(Letter to Editor)
First National City Bank "Letter" Terms

phere, begin to sell. The institu-'
Fluctuations tions,
recognizing
that
stock
of stock prices presumably reflect
prices are relatively high, from an
the
changing
anticipations
by economic analysis, direct the flow
stock purchasers and sellers of the of new money into the fixed in¬
prospective volume of business, come sector of the market since
the prospective earnings and divithe
difference
in
yields is ab¬
dends, etc. These judgments of normally
low.
The
speculative

'to

Your

Rights and Duties of Labor Unions Cited by George A. Dalton

counting the future.

•

Uranium Issues

Cover

—

—

simism.

the

to

Markets

Oil, Mining and

Guaranteed Annual Wage

(setters to Editor)

general atmosphere of pes¬
Ultimately the improved
of business activity and the

and

market

City

approximately 200

14

tK

*

*

More Correspondents' Views on

statistically

are

Lake

Trading Department

in

cheap during this period despite
the unfavorable financial reports

"-prices appears
c

Stocks

public.

ing level of
stock'

Companies—Douglas J. M. Graham.

Opportunities for the Blind—Roger W. Babsofi

improve,
purcaasi * equities
the discouraged sp2culajve

chang¬

The

1

f

Maintains

from

-

tinue.

y;'^''

12

busi¬
depressed, is due

although

ness,
to

con¬

Salt
10

y-

The "Stock" Life

institutions, recognizing that

current

the

Our

11

markets)

(rising

WHitehall 4-6551

9

Transport Policy

on

I

STREET, NEW YORK

6

I

;__

f.

ii

WALL

Telephone:

Problems Confronting the Federal Reserve—J. L. Robertson

clearly, a hypothetical stock
cycle is illustrated.
. markets

.y...

i

*

proportion jr.
probable
if

ob
In

begin at the "accumulation level"
where professional investors and

ol'

serious

trends

7?

this concept

understand

to

Bull

eventual

'

—David I. Mackie

market

oping with an
decline

Implement Repdrt of Cabinet Group

of-

the change
movements.

explanation for
major
market

6

Investment Adjustment to Changing Times—Don C. Preston__

groups
offers conenlightenment in the

\ erable

more

devel-.

is

top

t

Obsolete Securit'es Dept.

-

.

Hedberg

Abolish the Federal Income Tax!—Gov. J. Bracken Lee

three

these

•

99

—Robert D.

behavior

the

of

analysis

oraer

market

bull

An

Leading Forces Shaping Our Future Economy'

„

Bank

and

Quotation

137.00 per year,
Note—On
the

rata

eign
oe

of

Publications

of

exchange,

subscriptions and

made

in

New

Record

(Foreign

account

York

—

postage

the

Monthly,
extra./

fluctuations

remittances

for for¬

advertisements must
lunda

GENERAL INVESTING CORP.

•

In

80 Wall St., N. Y. 5

BO 9-1600

4

(64)

The Commercial and Financial Chronicle

The

anything and which has depreci¬
in buying power, or .accept¬

Conspiracy Against Gold

tablished

Gold Mining Co., Ltd.
Director, California Gold Committee

President, Calaveras Central

States gold mining,

and contends

ard, and advocates
Many

nostalgic

cherish

who

memories of the Gold Standard
had

association

in

insist that it is

money,
to

it

as

with

mistake

a

gold,

1

a

g

we

maintain

and

own

thus

has
had

not

the

establish

dollar which

will

purchasing
power
during

must

and
the

into

This is

expedient.

an

continuing to

Here

States

firmly

dollar.

our

managed

"value," in the

take

move

pol¬

a

We

are

toward

a

currency."

has had only a

planned financial
dictatorship
entirely outside of any Constitu¬
tional authority vested either in

"price." This

Congress

since

1933.

fraudu-

was

1

11y

e n

a

It

o v er

Here

put

on

it from

our

Value

tribute
be

and

is

our

money,

money.

ideal

an

thing,

at¬

an

of

has

demonstrate itself.

to

been

to gold

the

treatment

This

accorded
ac¬

play in

this country in recent years.

tions, such
forced

to

are

of

our

to

friends but

debates

Commons

mently condemned
selves.

na¬

Canada, have been
go along on these pro¬

nevertheless

harmful

other

as

They

grams.

House

of

governments

them

their

in

have

our

as

vehe¬

actions

well

to

as

our¬

They

would welcome a
change and the freedom to act in¬

dependently.
During the period when
dent

Roosevelt

should

be

Treasury,
*An

tional

issued

his

the

regard

Treasury

clothed with

no

ing

during these past 20

power

This

is

"No

gold

confirmed

by
quotations from the Act:'
coined,

shall

and

brief

hereafter

gold

no

hereafter be paid out

delivered

or

<

.

be

withdrawn

and

be

shall

coin

by the United States:
gold
coin
of
the
United
tion

years.

from

together with

All

.

States

circula¬
all

other

gold owned by the United States,
shall

be

formed

into

bars of such

weight and degree of fineness
direct.

implement

contrary,
the

it is the destruction

Act of 1934 was rushed through
Congress. This purported to give a
gold value to dollars represented
by a stated number of grains of

return of gold into the metal from

When

translated
an

this

into

formula

ounces

we

was

found

which

the
In

comes

merely

coins
this

becoming

coinage

stitutional

poly, claiming to have exclusive
rights to supply gold to foreigners
and foreign central banks, to
sup¬

gold.

the

arts

in

the United

users

and

possess

The

or

to

permit

gold, in their

Treasury

orders

sale

and

has

to

were

to melt and prepare

is only

gold

be¬

of metal, los¬

bars

which

and

thb existence

in

the

Congress

Con¬

to legislate on
coins destroyed
Congress has no

gold

outlawed,
valid

power

over

copper,

Fort

Knox

gold than

over

peanuts

cabbage.

or

Gold

com¬

secure

a

permitted
compelled

Not

a

Monetary

Stock

The

gold stored in Fort Knox
other Treasury depositories is

and

actually a warehouse stock to sell
to foreigners and industrial
gold
users

been

at

$35

the

per

This has

ounce.

declared

policy

the

of

industrial

production

for

the

a

year ago.

booked at some factories surpassed current
pro¬
duction with the result that
backlogs mounted.
Reflecting the advanced level of over-all output, claims for

unemployment insurance showed
New orders

decline in the latest week.

a

manufacturers' books in

on

May totaled $26,700,$5,600,000,000 from the year-earlier level.
seasonally adjusted basis, incoming business was the greatest
since January,
1951, the United States Department of Commerce

000,000;

On

or

rise

a

of

a

reported. Booming business was the chief factor in the flow of
orders, it added, but fears of auto or steel strikes also entered the
picture. Sales of manufactured products in
May amounted to $26,200,000.000, about the same as in April, but $3,500,000,000 above
May, 1954.
The steel wage boost will

cost steel companies
approximately
according to "The Iron Age," national metalworking weekly, this week. This includes direct wage and
salary
increases and subsequent rises in cost of materials and
services.

$450,000,000

a

year,

compensate

for

the

average of $7.50 per ton.

to

rise, steel prices were boosted
Producers moved almost immediately

wage

bring their prices into line with higher wage costs. The increase
smaller than the last big steel
In July of
price boost of 1948.

is

1948 steel workers got an
average increase of 13d an hour and steel

prices went

about $10.50 psr^ton.

up

Steel producers also face

bout with the United Mine Work¬

a

whose chief, John L. Lewis, will be in the market soon for a
healthy wage boost for his members. Steel companies
employ
miners in their so-called "captive" coal mines.
The loss of production threw the steel market
into utter con¬
ers,

fusion, blasting the hopes of producers for bringing deliveries into
line with

promises

time

any

in the

future.
It also opened
big profits when supply is
authority states.
near

the door to steel speculators who
reap
short and demand long, this trade
Even without the

gold

States,

power

With

more

of

United

give

can

to

their gold for

likewise

It

country.

also

pelled gold producers

they

them

own

has

originally

the

States, but

refusing to sell gold to American
citizens

were

form

simple commodity.

a

gold price of $35
and the Treasury issued
arbitrary Regulations under which

all gold industrial

of money,

ing all identity with coinage and

established

per ounce

ply

in for

a

bad time

railroads

hit

shutdowns, steel

consumers knew they were
the balance of the year. Just last week the

over

the

steel

industry with a
program
that will
consume
products already in tight supply.

building
The

strike

also

will

long-overdue
tremendous

stated,

oh

to

Oct

the

22,

arrive.

Some

these

of

the warehouses could

warehouse

orders

have

by Mr. Sears at the Na¬
Mining Congress, Denver,

Colo.

Last week's United States

car




which is not

in

paper
an

exchange

for

currency,

obligation to

plijSy

buy

and

is separated

and

rency

reach of
terms

our

of

the

the

past

sell

from

20

gold

money

placed

years.

or

cur¬

beyond

the

citizens by the
Act

this

at

under

very

in

the

possession of

not

on

level

gold

page

in

a

Automotive

assembly
643,000 trucks,

at

a

month

as

4,899,000

units

put

the finishing

history.

estimated

Reports"

record

producers

or

January-June car4,256,000 cars and

some 39.3%
above the same 1954 period which
2,958,629 cars and 557,906 trucks and almost 26% above
previous peak of 3,894,577 units, consisting of 3,109,134 cars

turned out

and 785,443 trucks hit in the first six months of 1951.

The

former

all-time

July-December,
this

enlarge the authority of

Continued

highest

"Ward's

and

commodity form does not and-

can

the

it

has been accumulated.
But

to

the

which

than

and truck manufacture bounded

truck

price

They

for

more

regular customers.

They do not redeem dollars,
they merely sell gold. That gold

$35

inconvertible

their

been

conveniently handle without slighting their

price to their favored customers.

over

of

According to "The Iron Age," consumer inventories are short.
Since early this year many have been forced to
buy emergency
tonnages from warehouses to tide them over until mill deliveries

touches to the strongest first-half turnout in

turn

car

aggravate the mills' problem of
maintenance repairs which had been delayed in the interest of
holding production at a high level. From now on they will have
a
tough time keeping production at the near-capacity rate
they
would like, it adds.

Treasury

to

freight
tonnages

further

newly
mined gold to the Mints, or their
agents, at the arbitrary and capri¬

them

Index

New orders

To

This is not the exercise of
power
to "Coin
money," on the

made.

that of

an

may
No currency of the United
shall
be
redeemable jn

these statements the Gold Reserve

gold.

Production

country-at-large in the
period ended on Thursday of last week was
slightly better than
the level of the week
preceding and considerably improved over

as

Secretary of the Treasury

gold."

to

Industry

Price

Auto

Business Failures

J
Total

the

It has merely been act¬
under an
embezzlement of

States

swiftly

Food

and

cious

he

address

therefore has been

of office

Presi¬

and gold certificates
surrendered

Western

Acting

and

with

authority.

to support and de¬

swore

license before

that all gold

public

power

Act

it has since operated a gold mono¬

through various illegal

tions which have had full

The

the

oath

Commodity Price Index

*

Congress has

such

this

the

fend the Constitution.

perfection, but it can
so
impeded, interfered with,
imprisoned, that it is not al¬

lowed

likewise

was

when he

action that divorced

same

the President.

renunciation of his
Harry Sears

us

under the pre¬
tense that it concerned

by the

or

4

Output
Trade

under

regulate

thereof," but
no

shall

the pronouncement of

was

to

its

hands the control of the gold

icy and not

United

to

its

paying

value of

gold.
Gold

seek

a

change

States

f

o

used

succeeding generation. The United

!'

the

e"

u

shall

authority

and

money

value

radio address from

a

we

.

.

debt

only

discuss
"v

of

that

1933, in

not

speak of

the "price"
should

"Coin

White House:

".

purported

rests upon the Constitutional pro¬
vision granting Congress power to

substantial increase in the price of gold.

a

State of Trade

Retail

which these things have been done

stock of gold is inade^

our

Production

Electric

Carloadings

gold involved.

The

Refers to bills in Congress to reestablish the gold stand¬

quate.

we

of the

Steel

The

through criminal prosecution, plus
fines, penalties, and confiscation

a

Thursday, July 7, 1955

.

by fiat.

These demands and Regulations
of the Treasury are enforced

deliberate conspiracy against gold, Mr.
Sears scores present currency laws, which he says follows
Moscow's pattern.
Calls managed currency "a CommunistSocialist device," and holds the gold value of the dollar is a
colossal falsehood. Says there has been destruction of United
Claiming there is

value by the public, by about
since the gold price was es¬

65%

By HARRY SEARS*

.

fF

ated

ance

.

000

1950
684,668 trucks.

at

half-year
4,251,678

volume

units,

was

including

established

3,567,010

in

cars

Thp statistical agency pegged June 1955. construction at 648,and 120,000 trucks, down 11% and 8%,
respectively, from

cars

21

Continued

State, Municipal

and

Revenue Bonds

Municipal Department

qAllen

&

Company

Established 1922

NEW YORK 4, N. Y.

:

on

page

38

Volume

Number 5444

182

.

.

(65)

The Commercial and Financial Chronicle

.

5

(Perhaps a new
combination has been
Tinkertoy, Evans to

to earning power.

Spalding (A. 6.) and an Age of Sports

Observations.

•

By IRA U. COBLEIGII

•

double play
created

—

Chance.)

J

negotiations

By A. WILFRED MAY

A swift corporate

a

that has always kept its

company

ALTERNATIVE INTERPRETATIONS OF A

biography of

(A. G.) & Bros., Inc.
off not with

week

Last

action

pointed

we

by selecting

habit

out the

explaining market

of

post facto those of the conflicting inter-

ex

pretaticns of an external event which are subsequently found to
fit the preceding movement of stock prices. A striking instance
of this is to be seen in the new wage settle¬

portrait,

but

pitcher.
the

By

leading

the steel

t h

We

The

price

resulting

and

wage

rises

in

and

motors

increases

steel

($7.50

a

higher price level.
in increased buying
power, in
line with the postwar experience
wherein
factory wages have risen twice as
much as the cost of living.
The squeeze on smaller and weaker com¬
A. Wilfrtd May
panies will increase the present great invest¬
ment attractiveness of the monopoly "Blue Chip" companies.
The arrival at agreement without government intervention
will

a

generally

will

result

cause

They

penalty from idleness will further
employers will have a greater
labor-saving methods to reduce costs, and

against

guarantee

automation and productivity; since
inducement

to

use

amenable to

workers, because of the added security, will be more

unexpectedly

large

opposition—

voluntary or involuntary—with deterioration of industrial activity.
The guaranteed wage technique may well inflict undue hard¬
cn

and

the smaller companies, with some spreading of depression.
way also, it may bring on government subsidization

this

general control.
consequential price rises

no

underhand; and in his

concept,

right hander

fresh

a

or

the

from

bullpen

This

Hall

(was unknown,
made the Base-

gentleman

ball

of

economic

as an

Fame.

In

the

of

average

.899,

G.

A.

stake

eminent

that launched
in

name

financed

a

the

company

employees,
birthday coming

most

do-

now

on

"Unfinished Proxy Rules" prompts

additional
suggestions, to which I have been devoting considerable attention.
In these changing times the costs of proxy fights is a matter
me

to submit for the consideration of your

of

concern

appear

to

stockholders.

thinking

readers some

reports

stockholders

to

giving

a

conference
As

present.

one

your

It's unique, with

point 0f net sales, 1929 was U. S. A. And to get 'em young,
Conclud- Little Leagues in* Baseball, and
ing the "Golden Era of Sports," Pee Wee Golf/are fostered to
that
year
Spalding
sold
$27.9 start the youngsters off as gapiemillion of goods and netted above sters at an early age.
$2 billion. (Net was $2,180,000 in
For investors, present our pros1947 but on $24.2 million volume.) pective
in
Spalding, there are
1955 should produce the best gross 541,174 common shares listed on
in company history and show a the NYSE and currently quoted
modest
improvement
over
the around 20. With a $1 dividend,
$1.47 per share earned in 1954 the yield is thus 5%; but a higher
(fiscal year ends Oct. 31).
cash distribution this year is a
jn

thrown

virtually

ball

half

in

dozen

a

.

find yourself hacking

you

of

out

way

shooting for
Softball

games

Spalding's banner year.

at

a

a

a i

hurling

epithets

trap,

Sal Maglie,
due to the

importantly

all

sand

service ace, playing
company outing, or

at

perception,

sporting

and

is concentrated possibility. Cash dividends have
maint' plant at Chicopee, been paid regularly since 1945.
chandising technique of the Spald- Mass., and a Canadian manufac- Working capital position is exceling firm.
tory at Brantford, Ontario. Sales lent and there is only $2.5 million
In
early days there was no are effected through wholesalers in funded debt ahead of the cornManufacturing

effective manufacturing and mer-

jn

standard

and

retailers,

team

has

now

it

contests.
I v;as shocked by a conference which I
had with Messrs. Robert Young and Alfred
Perlman after the proxy fight at New York
was

year.

sports, and if next Saturday aft-

pioneer

a

breakdown of expenditures in proxy

Central,

80th

its
next
y

has

it's

There

to be no brakes on the treasury and no

financial

first

ernoon

Your column of June 23

and
up

Spalding (A. G.) & Bros., .Inc., we

Spalding

DEAR MR. MAY:

ball

more leiOver 80 employees have been with
time, and with atomic power, the company for more than 35
automation making for a shorter years.
and shorter work week, vendors
important to the company fuof sport gear like Spalding pos- tore is Spalding's promotional acsess interesting vistas of future tivity.
Spalding is active in the
expansion.
Athletic League which aims for
Having briskly covered the areas broader participation in all sports;
0f sport which Spalding has pro- in the National Golf Foundation
mated and popularized, let's see which seeks development of more
how the company has fared fi- golf courses.
As a result, some
nancially in 79 years of corporate 200 new courses are now in vaexistence. '
rious stages of construction in the

sporting goods;

2,100

the

of

sure

Spalding

*

Suggests New Queensberry Rules for Proxy Ring

lines

durable business is pretty obvious,

a

salute you.
*

the labor force.

dozens of instances where sons
and daughters follow fathers and
mothers on the Spalding payroll.

season

a

out-and-out wage rate hikes.
*

out

producer of equipment. That from
all this has been developed a fine

ing about $27 million in annual
sales;
with
2,400
stockholders,

,

SerThe Spalding name and fame is
by no means local. Spalding products are known (and thrown) all
over the world. Abroad, distribution is
especially effective in <
Cuba, South America, Asia (the
Japanese are mad about baseball),
Mexico and Hawaii. On the supply side there
are
some
450
sources supplying everything from
thread for stitching baseballs, to
bar steel,
Something should be said about

sonnel at Spalding take real pride
in
their work,
and there are

sporting goods firm in
Chicago on a modest stake of $800

and
may

exchanged for

Spaulding was an early name, and
ever
a
large scale promoter and

home

every
up

drive some strug¬
gling industries permanently and completely out of the marketas, for example, coal.,
The
"Guaranteed
Wage" feature in the auto industry is
merely a brief stop-gap and extra cost in the long procession of
Necessitated

been

the keynote on craftmanship. Per-

after his team,

year

"Bostons," won
and racked

—a

round

have

People have more and

1876, the

started

football

and

and

in which

should

He

h(and

Softball
the

His name—Albert Goodwill

game

general threat to the balance in the economy.
Resulting
rising costs
may
entail consumer

In

wore

he pitched

round of wage increases may

stability of the cost of living, with

upset the recently-achieved

ship

time,

Cobleign

games

Spalding.

"Bearish" Elements
new

U.

have.

such innovations.

The

Ira

day, relief (either

furthers the trend toward the free market economy.
The

as-

courses

the

up

under

way,

Machine

%
a J^re °f ^n^r^cf/rn
chine and Foundry. On May 20,
however, the negotiations tor
merger were called oil, and
Spalding will, presumably, continue along on its own mdependent waY* Fact is this article was
outlined some weeks ago, but held
UP> due to the possibility of mer-

much club house
pitched, 3 0 1; vaunting abong long ball hitting),
games won, Then came the era of big names
2 4 1.
(A r e on the payroll, and the promotion
there
any of the game from Coast to Coast
questions, Mr. —and of course competitors, MacNewcombe?) Gregor, Wilson and Rawlings.
This same
..In basketball, Spalding again
gentleman
at was the early bird, making the
this pristine
first ball and offering the steel
period in our rim, to replace an actual basket
national
pas(peach basket, I believe) with
glove or mitt and which the game began.

spreading to other industries, as copper,

ton)

Presidential

and

pirants. First balls were of guttapercha, then cartie livelier balls
of rubber, leading to longer golf

ord:

Effects

pyramiding "inflation."
Price

executives,

following
five-year rec-

conflicting "bull" and "bear" conclusions.

are

as

had

racked

summarize, for convenience, the chief

"Bullish"

required exercise for business

"Bos-

e

tons"

agreements.

auto

and

few golf clubs and balls. He.

the portrait of a brought 'em back and all of a'
the autumn of 1875, sudden the game caught on, first
a baseball
as a leisurely pastime of the fiteam known nancial and social elite, and then

foreshadowed by the current com¬

as

on

up a

pitcher of
as

ments,
ment

picture

a

to

was

MARKET INFLUENCE
We start

under

Foundry proposed an exchange of
lshares.
One share of Spalding

the ball—Spalding

eye on

merger

were

American

which

pioneer in pastimes, and a

<r

there

Recently

Enterprise Economist

own

baseball, and the home
provided its own pelota. If
a good hitting team, somehow a lively ball seemed always

at which John Gilbert
of the reasons for delay

in making cumulative voting "the first order
of business" at the Board of Directors meet¬

was

^he

Jn

and the company
discontinued all of its
retail outlets.
Novembei.

1952,

mon.
As

an

interesting and profitable

product

of

example

^Spalding industrial

promotion,

expansion,

financial

sogSgie7 Inhere squired Toy Tinkers, Inc., mak- stability and corporateattention of
durability,
spnere
^ famjous Tinker Toys. Spalding deserves the

ing, we were told that the new management
after the proxy fight (during which the former

pitching1
pucni g,

to the ' treasury)
"didn't know how they were going to meet the

ingScorrectedna!inthat "it provfded This oddition of Spalding's busi- both sportsmen and expression
broadened the di- Never was a familiar investors,
g co
ecea a
t at.
t proy
®
versification

payroll which was the first order of business."

f Un*h

had

management

Unions
concerned

well

as

if

access

such

a

as

shareowners

condition

can

must

proxy

be

would

seem

that

a

Form
new

insurance

well

may

be

underwritten and carried by publicly owned corporations—proxy

Continued

on

page

34

ball

Reach

Spalding
helped

in

specially
for

mitts

Established

61 WALL

We take

1845

STREET, NEW YORK

pleasure in announcing that
Percy

day become

a

member of

our

lions




American.

introduced, and
development of,
designed
gloves
and
the
various positions:

associated with

also

balls

tennis

of

for 18 years

us

has been elected

a

member of the

New York Stock

Exchange

and has been admitted to

is

still

the

wife
or

later

time,

firm

its

official

C/

one

rose

a

was

and

over

65

cub salesman

to

be

in

England

happened

to

at

pick

BROADWAY, NEW YORK 6, N. Y.
*

Board

Chairman) named Julian W. Curthe

our

General Partner.

is a gold widow
it's partly due to
happenstance.
In

Spalding had

tiss.™ He

a

well, but the Wright

Sunday,

accident

(who

under

as

Hills.

your

every

1892

July 1,1955

FARNAM

V.

JOHN

the ball."

the

name as

Ditson

an

Clark, Dodge & Co.

the

in

sales market, used more accurately than in this

Spalding entry into tennis was
by its early (and unpublicized)
purchase of the Wright & Ditson
Company.
Spalding makes, mil¬

at Forest

firm

a new

catcher's
mitts, flexible
gloves, and ham shaped
leather scoops for first basemen.

If

has this

reached

and made an important addition phrase-'Spalding is on

plump

&

A.

ness,

filder's

own

George

(in

began

product) at the turn of the cen¬
tury.
That's the way it's been
ever since—the Spalding ball, of¬
ficial in the National League, and
the

Clark, Dodge & Co.

and"

1976)
the
American
League
adopted
the
A. J. Reach ball (also a Spalding

Insurance

of

form of

^

iaTS° L 6 un* oin^

r!

league

exist after

battle.
Novel

It

a
a

.

Wilma Soss
a

then'
men

Chicago

Philadelphia

I

*

London

Paris

♦

*

*

1

Caracas

I

6

The Commercial and Financial Chronicle

(66)

.

.

Thursday, July 7, 1955.

.

would

permit economic desalting
sea.
A
dry
but fertile
peninsula like
lower
California

Leading Forces Shaping
Our Future Economy

could

could

What forces do

will

nhape the economy of the nation
over
the next ten years?
There
four

arc

I

would

mention.

First

Beginning
3941

The

research

birth

our

1942
rate

many

increased by a
quarter or

to

its

housing
goods
this

nal

before

decade

up.

The

second

major
fhat

Robert D. JHedbci

g

force
to

seems

the

to

me

ahead

years

is

be

vital

in

improved
knowledge.
Compared
to today's volume of
statistics, we
were flying
blind into the 1929our

economic

3 932

malestrom.

Since

1946

we

have had two potentially
danger¬
ous business slumps.
Out of each
of

them

creased

with

come

vigor and confidence.

cannot

say

feated

that

now

the

there is

cycle,

but

to believe that

government

will

be

able

and

to

in¬

We

have de¬

we

business

reason

lightened
ness

have

we

en¬

busi¬

prevent

a

major disaster.
The
of

third

is

the

redistribution
income.
Wage and
people J have a
bigger

national

.salaried
share 'of

wealth.

our

This

has

made

the
luxuries of yesterday
the necessities of
today.
The fourth force I would choose

a
major determinant of our
economic welfare is the increased

effort.

Capital

per

worker

and

per

worker

in¬

have

This

an

research

lars
a

at

has

leap

effort in

to four

dol¬

one-half

billion in

than 15 years.
Much of this is

rate.

1955

from

in¬

little

a

convert

the

this

a

legacy from

Korean

into

emergency.
We went
Excess Prof jts_ Tax and

the
very

research.

tax

spurred

The

long-range

government

under

An

!>aneJ

address
member

-.utomation

in

by

Mr.

Hedbnr<»

as

a

discussion of "Atoms,
Business/' University of
Philadelphia, Pa., June 18,

that

found

means

a

to energy in the
magnitude of 300 million

units that have hereto¬

possible to

been

We

us.

of

this

addition

nation.

it,

wealth
are

we

the

used

manpower

to

radiation

adds

a

ability to learn.

our

remember,

Many of

perhaps,

astonishment

scientists

in

had

measure¬

demension

new

a

in

you

of

sense

reading that

approached

our

limit

a

in

microscopic investigation. They
magnify things adequately,
but the particles they
were
in¬
specting were smaller than the
could

length of light.

Within

the

have
a
rapidly ex¬
last 20
years
we
developed the
supply of energy.
Give,
electronic microscope and this ex¬
industry just a few years.
Re¬
tended those frontiers
appreciably.
actor technology is only 15 years,
old.

By

engine

comparison

is

150 years old.

of

pace

much

that

Now

steam

But

the

atomic

development is
rapid than was the

more

of development of the steam
engine. Experts predict that with¬

the

in ten

years
as

has

private industry

much

spent

And

ergy.

date

to

the

may

the government

as

atomic

on

en¬

government

ex¬

penditure has been $13 billion.

has

extended
the

For

example, testing

now

Thus

we

look

can

for

ing

The

of

refining and

atomic

fuel

is

certain

complished by the

same

that

in

set

were

haste

in

the

methods

going

continue
of

to

to

generate

heat

is

source

lated
the

to

uneconomic

to

use

be

Better

found.

complex

a

exchanging apparatus
steam.

light

so

the

tons

This

and

of

power

small

fuel

its

competition

eventual

re¬

used

conventionel .chemical
that

ac¬

processes

early forties.

are

set

up

process¬

still

and

pair

to the

what

world

cheap

it

to have

source

an

of

engine

four

of

these

will

have

ing tonight: "If
Constitutional

is worth

you

can

I

work

shap¬
growing

effect

on

welfare
this

of

mankind.

promise

will

I

be

be¬

richly

fulfilled.

by

G. E. Busch V.-P. of

Albert Frank

mean

That

Agency

City,

Law,

national

Inc.,

Ngw

advertising

limit

sponsors of

of

bracket.
had

and

others

even

apa¬

our

time

and

preserve

independence.

observe

Let

Dean

gaged in

a

help

how

awakening
to

o

a

t i

o n s

tain

the

preserve

of

repeal

Amendment

the

the

to

subject

matter

Amendmert,

are

could
of

could

there

would

cou'd

relate

its

late it to the

The

but

be

U.

S.

Corps

since

of

Bill

has

of

revo'uticnary.

Amendment

The

to.

and

collect

rived,

without

on

without

regard

to

to

in

seem

to

be

unconstitutional

He is

New York

•

Pittsburgh
Scranton




Allentown
<

Atlantic City

it

a

Gilbert E. Busch

He is

a

Cap¬

-

for

the

United

years.

York

Financial

America, the
Writers

New

Associa¬

tion, the Society of the Silurians,
and the Marine Corps Reserve Of¬
ficers

Association.

a

person's

free

the private

do

because

they were brave
free people
is always

a

The

venturesome.

that people

the

address

Mavron

Utah, June

Radio

19,

of

1856

Members
New

Not

York

Stock.

in

some

the

Exchange

Stock

Exchange

New

Cotton

Exchange

York

Commodity
Chicago

a

Exchange,

Board

and

other

Inc.

Trade

of

New Orleans Cotton

Exchange

exchanges

many

N.

Y.

Cotton

91%

NEW
Chicago

Exchange

YORK
•

Detroit

Beach

Miami

measure

by Gov. Lee made for
Forum, Salt Lake City,

1955.

obligation

American

public

permit

comfort; that all Congress could
*Fadio

money

so—and

up

of

inter¬

to

affairs of the

Establised

One wag told an audience
take

weak

too

was

in

Americans

simply because the gov¬

people—it did not have the
to

.

early days, this was, to
"the home of the free and

our

.

years have elapsed since that time
and we have tax rates that run

recently

so

grown,

centralized authority.

strong,
In

tax beyond 10%

income.

bracket couM

has

powers,

H. Hentz & Co.

claiming

a

spawned dur¬

was

the Income

never

Congress to levy
of

to 91%.

member of the Overseas

Club

by

would

much

sure,

As the size of the Fed¬

tax.

its

was

taxation

opinion

be

Government

ratified, back in
1913, its sponsors allayed the fears
of those who objected to unlim¬
ited

area.

that

Government

years,

Now, at the time the Sixteenth

Press
Lancaster

war

-

Tax Rates

Amendment

aerial navigator in the

of

v

growth in the size

of
„

•

evident.

self

com¬

use

'

<

The Increase in

correspondent
10

a

to

powers

happened to

are

To

growth

the

ernment

your

money.

ii

Marine

Press for

this

vene

wealth.

your

has

the land of the brave."

forcefully

hands

share

what

Federal

be sure,

or

Government] the

its

put
and

unlimited

occurred.

were

and

whose gov¬

or

and today we are
witness to the very thing our
Founding Fathers dreaded most—■

enumerations."

briefly

to

this
freedom.
to

whose income

man

answers

the

come

and

census

relates
a

*

,

up

but all of it
proved possible because of the in¬

in¬

any

is

said

granted these powers?*

ing

de¬

States,

some.

Taxation

Perhaps the most obvious has been

apportionment

several

When

confis¬

to

Unlimited

has

Some

of

fol¬

source

applied

have

And

that

say

placed in

government since the time it

was

a

the

among

be

Ends

I

within

that total

or

won't

surely

tax?

has

power

taxes

from whatever

pletely

tain in the Marine Corps Reserve.
Prior to the war, Mr. Busch was
a

to

be

free

that

has

lay

extent

taxed

there

be confiscated

eral

Congress shall have

no
on

Some peo¬

won't

point
How

of

Six¬

as

the

on

is

the tremendous

has

nothing

reads

comes,

your

the

Asiatic-Pacific

who

ernment

Rights,

been

is

being

now

What

who

saving

Amendment

the

impact

in what would

he

as an

there

Freedom

can

Some of that wealth, I might add, is
being scattered around the world

World
in

served

9

the

of freedom.

cause

limits

tax

ircomes

cation

who

few

to

the

on

are

—and

Sixteenth

those

repeal

Sixteenth

its

short

the agency on
Nov.
1, 1945.
II

all

of total confiscation of income

States

identify

of

per¬

condi¬

opinion proved to be

at

of your Federal taxes.

few people

the

and

a

income, and yet it is the only

vour

Is

who

are

9%

Sixteenth

United

Very likely there

listening

joined

War

Public
brake

on

we

ple

national

our

one

both 10% and 91%
than a shrug.

more

Constitution.

pockets

ac¬

little

10%

as

Now

tioned to accept

with

other

execu¬

During

PHILADELPHIA

en¬

much

as

income.

independence. The particular cause
this bracket,
for which I am
working is to ob¬

right

f

Busch,
advertising

tive,

INCORPORATED

am

I

.

STROUD & COMPANY

the

Constitutional

our

gave, the Federal

Calkins,

count

largest Philadelphia Banks

save

crusade which I believe

system and

of

comes,

stated, the Sixteenth Amendment

and public re-

Send fur
comparison of 11

pray

At

outrageous to suggest

was

ours.

Manion,

save

tax

son's

right
.

it

that the government would levy a

limitation

heritage that is

More

by

1

.

Their

hope and

us

this

it will not be too late

Like

The ninety-

the government get along?

be lost in the wilder¬

were.

more

per

time

will

when

can

Lee

day and age; but the
come, I am sure, when

will

they

Bracken

this

posterity
that

J.

system

may

in

ness

Gov.

to

national

voices

person^
or

centers are going to get
along, even at that rate, but will
one

Con¬

stitutional

million

a

that is not the point!

com¬

our

such

all,

get in that bracket and
after taxes they will still
something to live on. But

have

midst of heart¬

save

in the 91%

persons

make

t

have sympa,-

us

dollars to

making in the

placency is

it is a

that,

danger.

After

to

are

breaking

than

grave

thy for those

would

opinion

public

Perhaps few of

treason?"

original

the Sixteenth Amend¬

More

point of

the

of

some

felt

enforce.

guilty

you

that

ment

The fight Dean

was

W.

is

our

are

9%.

cent is just 9%

per

from complete confiscation.
a
far cry from the 10%

away

preserve

"The

The election of Gilbert E. Busch
a
Vice - President
of
Albert

as

an

.

our

and

teenth

Mr.

BANK STOCKS

save

increase them another

Ninety-one

system

lows:

the Board.

J

repeat¬

adopted

lieve

Maintained in all

PHILADELPHIA

I feel

terial

proc¬

that

do if it raised their taxes would be
to

cast which

fewer worJs than any amendment

Chairman

<

that

j.

rhetorical question in his broad¬

a

our economy in the decade
ahead.
Together they hold promise of an
unprecedented advance in the ma¬

announced

■

at

are

cumulative

a

Howard

Trading Markets

forces

our

independence.

no

ing our economy.
The
our Constitutional
system and pre¬
population, the better economic
serving our national independence.
knowledge that is ours, the more,
To orient
this discussion, there¬
widespread distribution of wealth
fore, I must f'rst identity Ihe Six¬
and the new nuclear
technology teenth Amendment and then re¬

agency,

■

and

wear

approach the accuracy thus

have described

available

power

rings

obtainable.

economic

would

laboratories

piston

efficiency of various oils. No
of calipers and
no
micro¬

scope

is assured.

Visualize

again
giant step.

a

their minute residue

determine

the

frontier
is

radioactive

measure

to

this

extension

use

All

breakthroughs. The cost of shield¬
ing is now half the cost of the re¬

radioactivity

and

pace

spend

of

use

national

our

Amendment

breaking down

and calls for repeal of the Sixteenth Amendment.

power

thy and

Moreover,
ments

Sixteenth

Last month Dean Manion asked

ability, Manion

With atomic tools

Frank-Guenther

■'

the

savings

conserving a natural re¬
the power used to process

and

York

i

to

The

there

panding

and

-

that

handle it.

a

Active

is

thus

wave

thus

meas¬

/'

.

direct proportion to our

are

is

to

the

source,

by

puny

times the

and

Pennsylvania,

made

revolution

fore

esses
*

this

a

,'

to measure.

polyvy-

matter

order of

We

more

of

have

we

pro¬

accelerated

expanded

billion

in

resulting from splitting the atom.
are
in the midst of a change
that
scientists say
is the most
significant event affecting energy
in the history of men.
In one

actor.

vestment

ductivity
creased

syn¬

We

as

technological

all

scientific

the

as

measurements

generally used in rolling

real

a

of

chlorine, silicones, color tele¬
and many others.

But

is

radioactivity

significance

vision

family

;

of.,

economic

the

incomes is

steely national inde¬
rubber and paper have permitted pendence, but
savings that are aggregating more deli berately
than $50 million
annually.
The refuse to do so,

ap¬

new

isocyanatefoams,

thetics,

on

computers,

are:

the

spend

that

on

brake put on tax limits, and we are near the
point of confiscation. Points out high progressive tax rates
destroys private incentive. Condemns concentration of Federal

t

radiation

are

Says there is

briefly

We have not

tax

constitutional system and threatens

discovery

accuracy

contends

Federal

a

mill processes for items like

is

this

and

other

that

Bracken

permitting

limited in their abil¬

are

to

The

out of

come

look

uring tool.

long-

civilian

that have

Products

make

impact

begun

us.

bulge will be¬

Governor

growth

Americas.
us

fruits of

plications that will benefit all of

population
gin

with

products

range

This

more.

that

fertile

of

their measurements.

some

at

into

period

ity to advance by the

in universities and spent

millions,
including
Pennsylvania, for

here

the

nologists

financed

has

government

and

world

t

Governor of Utah

tropical

at another
facet of nuclear science. All tech-

other

and

The

Let

thermo nuclear explo¬
developments.

missiles,

in

of
,

pushed jet air¬
electronic
fire
control,
power for ships,
guided

planes,

the

transformed

By HON. J. BRACKEN LEE*

semi-arid

the

that which followed the

has

draft

nuclear

sion

population.

>s

forced

of

of

garden.

a

through the world through such a
development could well exceed

our

years as:

believe

we

into

belt

a

round

be

lands.

(1) the accelerated popula¬
tion increase; (2) improvement in economic knowledge; (3)
the more equitable distribution of wealth; and (4) the in¬
creased technological effort. Stresses the impact of the scien¬
tific revolution resulting from the splitting of the atom.
in the next 10

is

north

all

zone

Hedberg lists the four major forces that will shape

economy

there

countries

By ROBERT 1). IIEDBKRG*

Mr.

be converted

And

Vice-President, Science & Nuclear Fund Distributors, Inc.

Abolish the Federal Income Tax!

the

of

Hollywood,

Fla.

Geneva.

•

Pittsburgh

Beverly

Gables

Hills,

Switzerland

Amesterdam,

Bldg.
Y.

N.

Coral

•

•

4,

Holland

Cal,

Volume'

freedom is
on

Number 5444

182

as

feet.

able to

completely centralized a nation

the

of

need

The

of govern¬

sort

some

him

and

to

keep

to

order,

interests

in

But, he wanted it

eral

understood that the powers of that

tute

foreign lands.

government would be clearly de¬
be limited; it could not
beyond specified limits. It wa*
recognition of this fear of cen~

go
in

lialized

power

Fathers

put into the

specific restraints
Government.

faith

in

the

thus

I

what

of

Much

-

from the intro¬

is taken

far

appropriately

Evil."

income

I

book,

titled

of

Root

Tax:

recommend

highly

become

to

tral

more

a

authority

history

are

Hoge

the

matters,

willing

was

close

as

tTe

to

people.

Union

a

in for

periments
to

If

we

to profit from these lessons

of

history, then we must strike down

Guaranty Trust Company

of

E. F. Hutton Adds
LOS

did

nearby, and if

the

the

like

not

Government

affairs

its

Calif.—Leslie

is now with E. F. Hutton & Company, 623 South Spring
Street.

IRKHlRlillftfll

that

no

Broadway

MAIN OFFICE, 140
-

were

cit¬

a

one

way

FIFTH AYE. OFFICE

ROCKEFELLER CENTER OFFICE

MADISON AYE. OFFICE

Fifth Ave. at 44th St.

Madison Ave. at 60th St.

40 Rockefeller Plaza

i

managing

was

could

he

border;

CVA

ex¬

had

After all, there

Other States

State

political

any

Government

such leeway.

izen

ANGELES,

D. Joynes

of New York

separate

The States

folks might want
Socialism—but

the

Federal

the

Company.

For

out—even

try

Stock
Exchange. • Mr.
previously with First

early
put his

to

and autonomous States.
go

become affiliated,
Co., 453 South;

(Special to The Financial Chronicle) l

that reason, the United States was

could

&

these

government, in a
government of neighbors, a gov¬

founded

our

was

California

cen¬

central¬

abuse of power.

of the

one

thing

conse¬

a

of strong,

very

Spring Street, members of the Loa;

governments has always been

ized

this

as

has

Fewel

Angeles

freedom may be lost.

quence, our

The

powerful

and,

are

uiai

ANGELES, Calif.—Harold j

Hoge

with

Federal Government will continue

All

interested in pre¬

book to anyone

H.

the

however,

imngs

strong, centralized

(Special to The Financial Chronicle)

LOS

it can be held in
check. ' Just so long as it retains
the unlimited power to levy taxes
incomes,

a

Joins Fewel Co. Staff

through which

.

muse

across

move

threat

of

32

4 I'lace de la

Lombard St., E.-C. 3

BRUSSELS OFFICE

PARIS OFFICE

LONDON .OFFICES

com¬

petition would keep each State
from
going too far in making!
changes or in intervening in the

*

27 Avenue des Arts

V

Concorde

.

Aldwych, W. C. 2

Lush House,

lives of the citizens.
J

Decline

The

State

of

Powers

The Constitution, then, kept the
Federal

ment

off

balance

weak

govern¬

Government

weak.

and

And

changed

that.

all

In

to put its

Government

giance away
It

ernments.
of

the

of

their

respective

which

was

rather

taken from

now

them,;

by their local representatives,*
over
whom they had some con¬
the

by

but

sized by every

increase in the in¬

GEORGE G.

and

more

au¬

of

preemption,
and

less

had

dried

being

revenue

services

so

social

the

for

less

government should pro¬

a

vide,

but they were compelled in

their

extremity

to

apply

central authorities for help.

necessarily

they

doing,

up

gave

of their independence. They

some

found

difficult

it

institution

the

to the
In so

stand

to

to

up

from- which

they

grants-in-aid.
Fur¬
the Federal Govern¬
ment was in position to demand
subservience from the State gov¬
ernments as a condition for its
had

to

beg

thermore,

It has

handouts.

become po¬

now

litically wise for Governors, legis¬
lators, and Congressmen to PLAY

W.

PALEN CONWAY

CHARLES

in the City of New

Credits Granted

York

WINTHROP M. CRANE, JR.

Board,
Dalton, Mass.

of the Board,
The Columbia Gas System, Inc.

being

procurement

citizens

the

economic
eral

who elect them.

power

Government

the

bribe

which

State

as

the citizens,

mission

to

its

In that way,

the Union
has

The

by

the

enabled

it

governments,

well

as

for

the Fed¬

secured

Amendment

Sixteenth
to

officers

into sub¬

will.

the whole spirit of

and of its Constitution

been liquidated.

Income tax¬




21,368,782.59

Mortgages

202,329,619.19
4,950,364.87

Bank Premises

JR.

Total Resoutcas

.

•

.

.

.

$3,002,716,476.65

Campbell Soup Company

President.

CHARLES E. DUNLAP
The Berwind-White

Coal Mining

LIABILITIES

Company

President,
Island Rail Road Company

WALTER S. FRANKLIN
The Long

>

Chairman
of the Board, Cities Service Company

W. ALTON

JONES

CORNELIUS F. KELLEY
WILLIAM

President

L. KLEITZ

Chairman

CHARLES S. MUNSON

of the Board,
Air Reduction Company, Inc.
WILLIAM C. POTTER
GEORGE E.

of Roosevelt & Son
CARROL M. SHANKS
President,
The Prudential Insurance Company
of America

CHARLES M. SPOFFORD
of Davis
Polk Ward well Sunderland & Kiendl

Chairman,

Executive Committee,

THOMAS J. WATSON
Chairman
of the Board, International
Business Machines Corporation
CHARLES E. WILSON

-

$20 par)

.

•

.

Surplus Fund
Total

Deposits

$100,000,000.00
200,000,000.00

.

.

\

Foreign Funds Borrowed
Less: Own

:!§

$ 404,867,943.89
2,521,874,340.65
150,000.00

Capital Funds

.

W'*

104,867,943.89

......

$ 26,773,287.65

Acceptances

ROOSEVELT

EUGENE W. STETSON

Capital (5,000 000 shares
Undivided Profits

Illinois Central Railroad Company

central

23,918,292.93

.

34,025,122.96

Real Estate Bonds and

KENNETH C. TO WE
President,
American Cy ana mid Company

tne

Acceptances

-

govern¬

with

64,378,860.11

Obligations

Receivable

Chairman

STUART M. CROCKER

on

9,000,000.00

.

Accrued Interest and Accounts

Chairman of the
Crane & Co., Inc.,

784,031,184.43
$ 49,638,560.60

Other Securities and

P. COOPER
President,
The Presbyterian Hospital

ment; they have been reduced to

BALL

603,084,328.66
1,408,320,979.50

Purchased

Stock of Federal Reserve Bank

by

up

that they

$

Public Securities

of the Board

likewise

of their

more

tonomy. Not only was their source
Federal

Chairman

CLEVELAND

J. LUTHER

Loans and Bills

Assistant to President,

The State governments
lost

Chairman
Duke Power Company

ALLEN

of the Board,

JOHN T. DORRANCE,

levies.

tax

come

and Due from

Obligations

U. S. Government

,

representatives:
of the other 47 States.* They be-j
came
subject to the will of the
central
government,
and
their
state of subjection was empha¬
trol,

Hand, in Federal Reserve Bank,

DIRECTORS

money,

not

on

Banks and Bankers

than

Their

States.

their

followed

loyalty

citizens

them

States

Cash

DALE E.

of

drew

made

United

of Condition, June 30, 1955

RESOURCES

SHARP
Vice-President

hands into

their alle¬
from their local gov¬
it

Vice-President

Federal

the pockets and pay envelopes
the "people,

Condensed Statement

THOMAS P. JERMAN

first

the

the

enabling

by

Board

WILLIAM L. KLEITZ
President

Amendment

Sixteenth

The

CLEVELAND

Chairman of the

*

people.

place,

J. LUTHER

corollary of a' strong

the

is

a

Payable July 15, 195 5

Items in Transit

Reserve for

with Foreign

.

.

t:

i

:/

t

!

2

i:

\

4,000,000.00
1,878,182.54

.

.

17,783,461.82

.....

.

27,182,272.26

Expenses and Taxes

Other Liabilities

.

Branches

J

It

$24,980,275.49
Dividend

S:§:

|

1,793,012.16

.

§v

t'

Acceptances Held for

Investment

75,824,192.11

V

$3,002,716,476.65

Tptal Liabilities

Chairman
of the Board,

W. R. Grace & Co.

ROBERT W. WOODRUFF
Chairman, Finance Committee,
The Coca-Cola Company

Securities carried

at

$204,835,029.16 in the above statement are

fiduciary powers, to secure public moneys as

pledged

to

qualify for
Li

required by law, and for other purposes.

Member Federal Deposit Insurance

7

Founding Fathers tried to avoid.

of

against

to

government—the

that

fearful

the income tax will
cripple the Federal Government,
let me say this: there are alter¬
nate means by which the govern¬
ment can obtain its revenue and

duction I wrote for Frank Chodo-

Income

paid.

stated

have

are

us

never

hqme

ernment

only

freedom from an
interventionist government be re¬
stored to the American people.

"The

of

that

in that way can

enforcement agen¬

abolition

Six¬

is

Amendment

teenth

of the

repeal

who

those

To

repeal

iciiiuve

ctnu

leading

,

been ratified.

other

In

>*

the

argu¬

Constitutional system

our

and national independence.

the Fed¬

on

Without

the Constitution

American

principal

the

serving

Constitution

eral

would have

With

:

rov's

property;

cies must be

that the Founding

very

restraints,

his

is

there

people,

right to himself and

individual's

fined and

for

ment

the

that violate

the

L

However,

Government is able to insti¬

procedures

of

will

governments are
responsible to

more

in services.

must

Amendment

State

and

greater chance that the citizens
will get their full dollar's worth

repealed! Nothing less will do.
For it is only because it has this
enormous
revenue
that the Fed¬

to

after his

look

Sixteenth

the

be

protect
in the exercise of his rights,

ment,

closer

He.

their citizens, and be¬

serve

the

cause

early

way.

be better

taxation the States will

the United States

ation has made

as
any
that went before it; the
American wanted it
very
kind of establishment the
was wary of gov¬
Founding Fathers abhorred was
ernment, especially one that was
set up by this simple change in
out of his reach. He had just rid
the tax laws.
himself of a far-away and selfFor those of us who still believe
sufficient political
establishment.
that freedom is best, the way is
and he was not going to tolerate
clear: we must concentrate on the
anything like it in his newlyfounded country.
He recognized correction of the mistake of 1913.

The

that

(67).

The Commercial and Financial Chronicle

.

willingness to stand

a

own

your

.

.

KM

Corporation
m

8

(68)

The Commercial and Financial Chronicle

data

Dealer-Broker Investment
understood
to

the

that

firms

mentioned

will

Westinghouse
is

Air

Brake

selected

a

list

and

of

Celotex

Corporation.

Milton G. Gross Joins

Equities for Investment,

First Boston

Eagle Pieties Company—Analysis—G. H. Walker & Co., 1 Wall
Street, New" York 5, N. Y.

Milton

Eagle Picher—Data—Bache & Co., 36 Wall Street, New York 5,
N. Y.
Alsoi in the same bulletin are data' on Norfolk &
,

is

available

Thursday, July 7, 1955

.

arranged according to industries.

Recommendations & Literature
It

on

Also

...

he

pleased
send interested parties the following literature:

C.

Director

Technical

of

for

Glasspar

in four colors (revised)—Describing and locating
activity of 97 different companies—Atomic Develop¬
ment Securities Co., 1033 Thirtieth
Street, N. W., Washing¬
ton 7, D, C.

36, N. Y.
analyses

Bank

of

Stocks

37

—

Sixth

banks—The

annual

First

edition

Boston

Corporation,

100

Business

Men

Planning

10

Years

Ahead—Booklet

emphasizing the West's financial and industrial importance
including list of growth factors; included is San Francisco
Stock

Exchange balance sheet and information for listing
Exchange—San Francisco Stock Exchange, San Fran¬
cisco, Calif.
Interest

Radios

for

Lehigh Portland Cement
•

Co.,

Industries—Comparative figures
Weekly Stock Bulletin—The Nikko Secu¬
6, 1-chome, Kabuto-cho, Nihonbashi, Chuoku, Tokyo, Japan. Also available is an analysis of Maruzen

Oil.

Continent

—

Bulletin

—

Luis

Mendoza

y

Obispo 305, Havana, Cuba.

Cia.,

Philadelphia

Bank

Stocks—Comparison of 11 largest Phila¬
delphia banks—Stroud & Company,
Incorporated, 123 South
Street, Philadelphia 9, Pa.

Portfolios—Study of

Secu-

in

1953, Mr. Cross

Upham

Co.,

Gart M. Loeb, Rhodes

105

Carl

General

42

Electric Company—Report—Loewi
Street, Milwaukee 2, Wis.

Cement

Co.—New

views—Lerner

&

Co.,

Also in the
Warner
at

Tax
&

—

du

issue

same

Bros.

&

are

Co.,

Post

10

list

of

stocks

for

Exempt Bond Market—Mid-vear
Co. Inc., 123 South La Salle

per

Stuart

dated with its

partment.

Aerovox

Wall

Exchange
Commission in

Washington,

Auto Supply
Company—Report—Thomson & McKin11 Wall Street, New York 5, N. Y.

Works—Bulletin—H.

Corporation—Analysis—Blair

&

Co.

D.

1942

he

and

is

report

a

Burlington Industries—Analytical
brochure—Kidder,
& Co., 17 Wall
Street, New York 5, N. Y.

on

in

NSTA

Notes

ada, and Royal Bank
Building, Toronto, Canada.
review

of

Du

Pont

of

Central Maine

he has addressed to

Chase
120

Manhattan

to

ad

.

or

York

5,

N.

Allen B. Dumont

from

Bissell

&

Meeds

'

Y.

York 5, N. Y.

In the

some

institution

stock

he

became

attorney-

Chronicle is
*

houses

St.

Ralph

c.

t

o

secure

on

Louis

-

or

listdd

Other

as

Bond

HAROLD

B.

Advertising

120

ftorauxa Jiecwritics

let's

Smith

make

this

Member

Toledo

Toledo

annual

Country

of

Securities

Dealers

Portland, Oreg., annual

mer

sum¬

party at the Oswego Coun¬

try Club.
Committee
^

*

Broadway, New York 5, N. Y.

DEPENDABLE MARKETS

®o., %t&.

Life Insurance

of

the

at

Investment
B.

SMITH, Chairman

c/o Pershing & Co.

Lakewood

Club.

our

And

at

July 22, 1955 (Portland, Oreg.)

Harold

regional affiliates please note!
year's NSTA Year-Book the best yet.

outing

Club

outing

stock

help

(Cleveland, Ohio)

Cleveland Security Traders As¬

July 14-15 1955 (Toledo, Ohio)

investment

unlisted

or

Field

Country Club.

companies that have

outstanding (as well
Treasury).

Deppe

Investment

sociation

whose

national scale with

a

In

July 8, 1955

an

wonderful med¬

a

acquaint

are

Trading Market

Year-Book

they retail.
points out that the

Nordeman & Co.
bulletion

**

company, bank
with which they

National

same

EVENTS

the St.

He

review of General

Laboratories—Data—Bruns,

Street, New

the

ads in the

own

NSTA

have personal contact

Securities

Cinerama Productions Corp. —
Analysis — Amott, Baker & Co
Incorporated, 150 Broadway, New York
38, N. Y.
Dover
Corporation—Analysis—Cohu & Co., 1 Wall Street New
York 5, N. Y.
'
'
52 Wall

placing their

Chronicle's

Convention issue, to

either

Bank—Circular—Laird,

Broadway, New

all

membership.
Ralph is
urging his members in addition

Power—Report—Ira Haupt & Co., Ill Broad¬
a

by

return

evaluating Ameri¬
enterprises confis¬
communists.
Upon

COMING

Louis

ium

way, New York 6, N. Y. Also
available is
American Transportation.

business

cated

Ralph C. Deppe, of Edward D. Jones & Co., President of the
Security Traders Club of St. Louis, has sent us a copy of a letter

Also in the

Canada

Limited.

the Trading

of

AD LIBBING

(1954)

a

Yugoslavia

can

his

Peabody

...

is

assist¬

director

Exchange Division. During 1954
he accepted a special assignment

Limited—Review—James Richard¬
Sons, 173 Portage Avenue, East,
Winnipeg, Man., Can¬

bulletin

director

1954

&

Campbell-Taggart Associated Bakeries,
Inc.—Analysis—Sanders
& Newsom, 1309 Main
Street, Dallas 1, .Texas.,

same

then

to

was

Anthon Lund

Aug.

18-19,

1955

Denver Bond

(Denver,

Club

ing at Park Hill County

Club.

lamborn & co., inc.
99

WALL

STREET

NEW YORK

N.A.S.D.

Colo.)

annual out¬

5, N. Y.

Broker and Dealer

Investors, Inc.

Material and Consultation

sugar

on

Troster, Singer
HA

2-

2*00

Members: N.

74

Y.




York 6, N. Y.

Raw

Japanese Stocks and Bonds

& Co.

Security Dealers Association

Trinity Place, New

21

From

years.

M.

Byllesby and Com¬
Incorporated, 1500 Chestnut Street, Philadelphia 2, Pa.

Bonanza Oil &
Mine—Report—L. D. Friedman &
Co., Inc., 52
Broadway, New York 4. N. Y.

&

during

past

Incorporated, 44

Industries, Inc.—Bulletin—DeWitt Conklin
Organiza¬
tion, 100 Broadway, New York 5, N. Y.

son

C.

the

advisor to the Commission.

Air Way

Canadian Industries

key

posts with the

McCoy & Willard, 30 Federal Street, Boston 10, Mass.

:j;

Street, New York 5, N. Y. Also available
York State Thruway
Authority Bonds.

New

Mr.

Lund has held

Securities and

Street, Chicago 90, 111.

*

asso-!

Syndicate De¬

copy.

investment

survey—Halsev,

had

Lund

become

mm

Co., 63 Wall

analyses of the Ruberoid Co. and
a

Co.t)
City,

Stock

various

Street, New York 5, N. Y.—$2

Machine

&

York
York

ant

mid-year.

*

Rhoades
New
New

Exchange, announced that Anthon

Square, Boston 9, Mass.

current issue of
"Gleanings" —
Co., 1 Wall Street, New York, N. Y.

Pictures, and

the

of

H.

&

Analysis in

Pont

Loeb,

Street,

members

Rico, San Juan, Puerto Rico.
Industry

M.

Wall

Uranium Corporation of America—New illustrated
brochure—

pany,

of

Anthon Lund Joii

Corporation—Analysis—Glore, Forgan &

Trans World Airlines—Review—John H.
Lewis &

Whitin

Executive
director

a

Harriman Ripley & Co., Inc.

Stocks and the Widow's Mite.

&

commencing

was

and

his

i gnment

a s s

Transamerica—Bulletin—J. R. Williston & Co., 115
Broadway,
New York 6, N. Y.
Also available fs the July Investment
letter containing articles on
Forecasting The Market, Oil

non,

Previ-

to

o u s

with the World Bank

Co., 64 Wall

Co.—Memorandum—Taylor &
Street, Chicago 3, 111.

East Mason

Riverside

Puerto Rico: A Growing Field for
Mortgage Investment—Illus¬
trated brochure—Government
Development Bank for Puerto

Francis I.

Cross

Western

10

sample portfolios—Harris,
Co., 120 Broadway, New York
5, N. Y.

Shoe

C.

a

di¬

and

rector.

Co., 40 Wall Street, New York 5, N. Y.

Office

Over-the-Counter Index—Folder
showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35
over-the-counter industrial stocks
used in the National
Quotation Bureau Averages, both as to
yield and market performance over a
13-year period —
National
Quotation Bureau, Inc., 46 Front
Street, New
York 4, N. Y.¬

dent
Milton

Vice-President

Engineering

American Car

Portland

as

Presi¬

-

—

South La Salle

225

Review

Vice

Uranium
Report — General Investing Corp.,
Street, New York 5, N. Y. Also available is a mem¬
orandum on Shawano Development
Corp.

North

York

City,

80 Wall

New York 6, N. Y.

Sugar

New

&

Street, New York 5, N. Y.
Mid

100

Broadway,'

Investment

—

Max Factor Co.—Bulletin-r-Frank C. Masterson &

Japanese

Commodity Price Movements—Analysis in current
"Stock Digest"—Nomura Securities
Co., Ltd., 61 Broadway,

Company—Analysis—American

Star Brewing Company—Bulletin
Muir
Corp., 101 N. St. Marys, San Antonio 5, Texas.

Minerals

Investment Opportunities in
Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill
Broadway, New York 7, N. Y.

ration,

120

rities Corporation, 25 Broad Street, New York 4, N. Y.

Lone

Japanese

in current issue of

Broad

&

Hoppers Co.—Memorandum—Hemphill, Noyes & Co., 15 Broad
Street, New York 5, N. Y.

rities Co., Ltd.,

Mendoza'g

Boston Corpo-

Co.—Memorandum—Walston

City Life Insurance Company—Analysis—Burgess
Leith, 30 State Street, Boston 9, Mass.

the

on

Manufacturing

Broadway, New York 5, N. Y.

containing

Broadway^ New York 5, N. Y.
for

with The First

Kansas

Commercial

Facts

Joy

become

associated

ity Place, New York 6, N. Y.

Letter—Fortnightly review of the Canadian Securi¬
Market—Newling & Co., 65 West 44th Street, New York

ties

has

14, Calif.

Corporation—Analysis—Troster, Singer & Co., 74 Trin¬

Harvill

Canadian

and

Development,

Co.—Analysis—Marache, Dofflemyre & Co., 634 South

Spring Street, Los Angeles

atomic

Bank

Recon¬

struction

ysis of the current investment outlook.
Atomic Map,

Inter¬

the

national

States

Corporation—Analysis—Laird, Bissell & Meeds,
Broadway, New York 5, N. Y, Also available is an anal¬

120

Operations

of

Western.

Eastern

Corp.

until recently

Cross,

without obligation
NY

1-

376

61

Broadway, New York 6, N. Y.
Tel.: BOwling Green 9-0186
Head

Office

Tokyo

—

Refined

—

Liquid

Exports—Imports—Futures

DEMPSEY-TEGELER & GO,

DIgby 4-2727

Number 5444

182

Volume

.

.

ing into other fields and expand¬

Investment

their

ing

oil

of

and

developments

by-products at

that

there

the

before
new

be

cites

a

significant

foreign
who

in

will

our

way

tations
to

few

samples

place which the prudent investor

of necessary analysis and

thinking

should

in

not

Says

ignore.

new

the actual

properly,
should
not risk being shut out of such
securities designed as
a
long
purchase of

a

selected security and one

pull investment.
the

in

Never

to

a

make

on

the basis of

been

so

a

as

such

sons

changes and trends both at home
and abroad.

are

also

new

in

at

thinking

by trying

a

less but the

chances

will keep trying

you

a
a

to buy

little under the asking price

finally paying

much

long

then

higher price
into

way

give

up

or

higher

follow it
ground,

as

player in the

a

of the market in

bers,

in disgust and tell
it for a good one
buy it.

curves

but could
Look

never

back

at

eral advance of

ing

your

the

overall

Piper, Jaffray Firm

gen¬

this country dur¬

life time,

To Admit Partners

through
then

then

the life time of your parents,

grand parents and no doubt

your

you

MINNEAPOLIS,
ard

will find your thoughts in the

Civil War period or even

White

revolu¬

and

worth

of

business enterprises,

developed

Stock

St.

Bank

Think and act with

business

as

vestor.

It is

more

new

office,

and

chem¬

icals, methods

has

certainties of thinking and

mer,

Pollacchi & Co., 84 State St.

acting

joined

NEW YORK

ibution,

t

r

t

r a

importa¬

tion,

manage¬
and la¬

ment

STATEMENT OF CONDITION,

JUNE 30, 1955

relations,

bor

the shifting of

manufactur¬

Don Preston

ASSETS

ing and popu¬
centers and others beyond

lation

number.

DIRECTORS
9

Cash and Due from Banks

;

.

Today the smart, alert investor
must

take

many

he

all

work

and

into

more

wishes

for

these

factors

consideration

make

to

him

in

profitable

and

his

Also

lay aside all the old worn
out/,phrases and yardsticks which

Been applicable in the past

but

will

Such

lull

him

"Steel is

as

a

to

sleep

feast

industry; Railroads have too much
competition and regulation; Coal
has

changed

and is

ing

from

longer

no

for

the

points, such
the

red

to

generation, etc."

or power

Watch

black

factor in heat¬

a

States

.

.

.

.

.

;

.

.

;

.

21,554,936

;

.

.

Loans

First

.

Mortgages

3,150,000

.

709,720,418

.

Chairman, Bristol-Myers Company

........

on

I. J.

17,073,892

Pulp and Paper Company

Liability
MINOT K. MILLIKEN

for

29,242,567

Acceptances Outstanding ;

Other Assets

;

;

Vice President and Treasurer,

D'eering, Milliken & Co., Inc.

6,098,750

.

DON C.

$1,561,462,333

this

ROY

sure

•

investor, while the
out early

reasoned it

their

seeing
and
,

Is there

per

trend

multiply at

when

companies

as

grow

rapid rate.

trend in metals,

representing

looks at

the larger

of

some

companies

study

and

the

progress

they are making in not

only the

new

uses

of

copper

diversifications

their

investments

in other

earths,

rare

and

resources,

power

.

a

.

.

;

;

.

;

55,000,000

.

.

.

Undivided Profits

Total

.

.

;

;

;

.

"i

.

;

;

125,831,714

fast

Other

ex¬

Expenses

in

that great
view

of

quantities of oil now
being
discovered
all
over
the
world, find the use of its main
products restricted and out of bal¬
ance

for

various

uses?

heat,

transportation

power,

etc.

On

the

Such

RAYMOND II. REISS

Dividend

1,500,000

Payable July 1, 1955

oil

President,
Reiss

Acceptances: Less Amount
....

.

.

Manufacturing Corporation

HERBERT E. SMITH

;

;

32,563,529

:

Former Chairman,
and

5,805,954

Other Liabilities

$1,561,462,333

of the Board
Chief Executive Officer,

United States Rubber
E.

Company

E. STEWART

President, National Dairy Products

Corporation

more

Loans, Mortgages, and

market value; and

Banking Houses, after deduction of reserves.

U. S. Government Securities
and

stated at amortized cost; Other Securi¬

than the lower of amortized cost or

pledged to

secure

deposits of public monies

for other purposes required by law amounted to $73,225,902.

WILLIAM J.
New

W ARDALL

York, N. Y.

FRANCIS L.

.

.

-

WHITMARSH

President,
Francis H.

Leggett & Company

as

energy,

other hand,

investigation will show that cer¬
tain

.

Company

9,729,822

.......

U. S. Government Securities are

vast

"

"

United States Tobacco

ties at not

favorite,

Pennsylvania Co.

WHITNEY PETERSON
President,

balance with one another?

investment

New York &

LcROY A. PETERSEN

Taxes and

reappraise various
sources
of power
and evaluate their possibilities on
a
new
competitive basis, -or in

the

..

President,

J.

present

Will the oil industry,

• *

1,386,031,314

;

to

necessary

Y.

PETER S. PAINE

President, Otis Elevator Company

Deposits

panding variety of uses, is it not
other

New York, N.

20,831,714

Capital Accounts

in Portfolio

developments in

.

;

.

atomic

of

advent

the

Surplus

but

heavy

chemicals, etc.
With

50,000,000

Dry Ginger Ale, Inc.

MICHAEL A. MORRISSEY

metals,

new

natural

Capital SlOck(5,000,000 shares—$10par) $
.

W. MOORE

un¬

investments,
depending
solely upon the price, supply and
demand of copper?
Take a few
deep

-

President,
Canada

who

sound

copper

LIABILITIES

already

dollars

a very

new

a

ones

are

will quit looking at cop¬

we

MITCHELL

Chairman,

Sylvania Electric Products Inc.

obvious opportunities for the

alert

LUKE, JR.

President, West Virginia

Now this shift has

gained momentum presenting
and

HARVEY, JR.

President, The Flintkote Company

1,952,436

Real Estate

resulting in the start of a
manufacturing shift to that region.

change alone.

Honorary Chairman
HENRY P. BRISTOL

DAVID L.

Customers'

years

.

ago,

Volumes could be written

HARRY E. WARD

53,122,442

.

on

Banking Houses

turning

few

a

.

of the Board

President

Stock in Federal Reserve Bank

the awakening of

as

Southern

obvious

Mortgages

Other Securities

';

.

ENSTROM

RICHARD II. WEST

now.

famine

or

F.II.A.

he

should

have

342,969,009

U. S. Government Insured

intelligent

an

manner.

N.

Chairman

I J. S. Government Securities

if

dollars

'

WILLIAM

$376,577,883

;

.

.

companies are diversify¬




MEMBER

FEDERAL

National

Mass. — William F.
the staff of Pal¬

BOSTON,

Irving Trust Company

dis-

turing,

First

Cox

manufac¬

of

Mr.

of the firm's

profitable than the risks and un¬

power

uses,

and

Palmer, Pollacchi

many-

new

York

(Special to The Financial Chkonicle)

interesting and

the

metals

New

Exchanges.

Building.

With

part owner and long range in¬

the

manager

Paul

time?

a

is

Murray

further
period of

expanding in so short a

of

Midwest

and

now

Aug. 1 will be admitted

on

members

born, raised

and

Minn.—Leon¬
and Clinton C.

partnership in Piper, Jaffray &
Hopwood, 115 South Seventh St.,

great

our

Murray

to

tionary times.
Have we come a
long way?
Can you gauge the
value

A,

taking

sources,

and downs
of num*

game

and lines.

place in such a
short period of time.
Changes in
governments,
i d,e o 1 ogies,
ways
of life,
changes

ups

a

19

how you picked

You may be lucky and

price?

after each advance,

the actual

expec¬

reasonable market

a

obtain it for

not

all

convinced it will soon advance

are

there

long pull in¬

with

when in reality your rea¬
for purchase are because you

pany's or industry's future in re¬
lation to present and future

Is

a

as

security defi¬

short seller in trying to buy

a

price

com¬

risk being

one

advancement

of

cir¬

a

one

or

for less than

in¬

intelligent

and action required in

of

history

there

have

world

order

vestments

thinking and action is required in

only

are

should

on

the

buy under the market?
Is it not a contradiction to think

is well under way.

These

out

is for¬
purchase

a

Under

price.

nitely desired

of

sup¬

one

make

even

vestment

not

cases

many

to

fair

a

shut

cus¬

new

available

now

the better com¬
limited marketwise

so

cumstances

great

The signs are many that this

move

changes that have lately taken

that

sup¬

part

a

is

in

tunate
at

never

selected

properly

a

of stocks in

that

signs

forming to

Customers

denied

life.

The

ply

of life is

way

and

are

of

panies

global scale

achieved

markets

tomers?

Seattle, Washington

Preston

on

ply millions of

By BON C. PRESTON

purchase
security?

uses

ver^ fast

a

definite

not

American

spreading

The New Times

and

profitable rate.

Are

Adjustment to

Mr.

(69)

The Commercial and Financial Chronicle

.

DEPOSIT

INSURANCE

CORPORATION

■77TT

0

The Commercial and Financial Chronicle

(70)

.

.

Thursday, July 7, 1955

.

Brookings Institution staff and co¬

Ltt's

Implement Report of Cabinet
Group on Transport Policy

Railroad
dent's

Committee

of

types

on

Says

W.

General

and

and

dent

their economic

long been recognized
of

has

y:here

cally
o r

p!h

been

something

with
regula-

the

wrong

and
t

transportation

radi¬

economic

i

e r e-

which

for

i

further

n

n

has

dustry
A

of

President

Let

when

there

David

which

b y

The

work

Transportation
Policy,"
written
by Charles L. Bearing and Wil¬

of the

fred

manship

the

The

its

of

staff.

fundamental

Many

problems

of

con¬

made

who composed

Committee

was

Weeks.

merce

Its

and

that

operators

the

con¬

and

own

recom¬

by the President
as a

piece of

the

In

after

"brilliant
course

of

"Within

nessed

the

Com¬

short

span

of

one

(1)

That

competition

the transportation
with travelers and

Director

Flemming, with ad hoc participat¬

available

consisting of the
Secretary of the Treasury, the
Postmaster General, the Secretary

transportation methods, both pri¬

sharply deline¬

were

What that book

said

in 1949

is equally true today.
In

the

tracted

early part of 1950,
hearings concerning

ernment

transportation policy and

regulation
ate

pro¬
gov¬

were

Resolution

held
50.

nor

issued

the

Committee

those
♦An
Third

Public

a

of

following

Progress
which

Report
had

of

held

members

assist

To

qualified
the

Page,

address

by Mr. Mackie before the

ing,

Meeting

the

Railroad

Colorado

of

Deputy

former

Arthur

W.

vents,

Undersecre¬

is

who

a

member

of

many

policy

Sam Rayburn

Committee

and

at

respects,

gov-

present

Continued

page

to

which

is

use

make

a

nor a

solicitation of

an

offer to buy

any

originating taxes, waived

unusual

procedure

but

nothing of this in the daily

fight for the plan.

Democrats' plan of

offer to sell

most

Committee which worked for several months
gram, a bond issue by a Federal

37

the
an

A

it

has

press.

of these securities.

highway

gers

The offering is made only by the Prospectus.

Yet it is\

highway

pro-,

highway corporation, has decided
This in spite of the fact that the

financing

seems acceptable to the promoters of
The President's activity at this time endan¬

program.

the program,

by the Clay

the

on

particularly when taken with the protests

that

have been aroused against the increased taxes.
Another important matter

NEW ISSUE

its

been-

likely this bill will have been reported out of the committee
by the
time this article appears. ' '
But at this late date, the President who
had given little or no
support to the proposed financing plan recommended

j

to

This announcement is neither

charged with

or

-

that the powerful Hbuse Ways and Means>

see

done in the past.
I have seen little

pre¬

on

was

rights in the matter.

con¬

ization of the most economical

The

billion

to modernize the

highway system.

in recapping tires. The
plan has been for the Public Works
Committee to incorporate these taxes in the main bill and
Speaker

severely limits, the real¬

or

$25

some

years

used

competition in trans¬
it has not adjusted its

(3) That "in

which

12

on a financing plan which would
pay for the project:
through the raising of present Federal levies on gas, diesel fuel
and truck tires, together with
impositiort of a tax cn camel back

That while government has
promoted
the develop¬

ernmenC

First is the Presi¬

press.

by
or

agreement

ditions.

tary of Commerce for Transporta¬
tion,

of

for-hire.

portation,

Charles L. Deal¬

included

selection

regulatory concepts, policies
practices- to these competitive

director of A. T. & T., that

a

Annual

of

Cabinet

appointed a thoroughly
working group. Under

chairmanship

group

Association,
Springs, Colo., June 17, 1955.

the

wide

ment of this

Committee

hearings, including that the

Relations

(2)

industry today,
shippers having

actively

Budget.

them,

a

vate and

Agriculture and the Director of

the Bureau of the

under Sen¬

The

Senators Bricker and O'Con¬

year

ing

Mobilization

Defense

of

daily

legislation

period of 10

a

However, it has been apparent for some time that the House
Public Works Committee would
report out a bill with the amount
of money the President has asked for and for
the past several
days,
the Democrats on the
committee, in control of it, have been in

pervades

equalities—
ated.

highway
over

Bargeron

subject with the statement the President's plan had been defeated.
Not very informative.

tion," found in effect:

members

Secretary of Defense Wilson,

spent

Carlisle

only a hit or miss
example, passed
providing for only a five-year pro¬
gram with inadequate lunds for even
that, and with no way of
raising the additional money, the press generally dismissed the

country has wit¬
transportation revolu¬

fronting the transportation indus¬
try — especially regulatory in¬

were

experienced

are

a

this

a

They

treatment. When the Senate several weeks
ago, for
substitute Democratic bill

noting that

generation

to

going

Modernization of the highway
system is important and the expenditure of
$25 billion is a lot of
money. Yet in the several months the matter has been before Con¬
gress the daily press as a whole has
given it

its report, the Cabinet Committee,

chair¬

other

shortly there¬

of the United States

work."

subscribe

received very little
coverage by the

the Cabinet

nation's interstate

to

to

a bang-up
job.
My article is prompted at this time by two
highly, important pieces of legislation that have

Report

be

after referred

have

jobs by higher salaries and those that I

dations

it. The

of

here.

proposed

was

our

so

el fort to learn what is

an

dent's

which

on

know do

Committee

1955,

commentary

a

They have become

businessmen

reporters

paper

been published.

18,

they exist, that there is
is

newspapermen, enticed away from their news¬

has

document

and

is.

directly concerns them. Several indus¬
tries have adopted the practice of
having their

the

report

business

that

on

working
Cabinet

to

That

of

his

ab¬
global matters and the A and H

with

bombs

would

amaz¬

the

under

Secretary

of

sorbed

particular

the

upon

knows

that

daily newspapers.

be¬

on

he

them,

report of findings and recommen¬

the

on

for

these letters in

a

April

the fact

market

a

depends

well

conscientious he
But

the

did

presenta-

made

months

several

Cabinet

On

ing in view of the high character
men

how

It

how

Committee unanimously issued its

attacks

Committee is

of that

So

and

waterway

study,
submitted

never

trans¬

the

of

been

have

Brookings Institution a pene¬
trating study entitled "National

Owen

Federal

viciousness

The

Mackie

I.

author,

others.

mendations.

1954, the
United
States,

so.

likewise

Committee

policies and problems.

portation

was

published

over-all

of

profitability.

were

asked all

of

veiw

go

did

centrated

was

to

us

of

After

were

of

into

only
«September
1949

the

of

hearings

group

industry

were

many

and

recognizing
the
importance
of
transportation to the economic and
defense well-being of the country,
appointed a Cabinet Committee to
undertake
a
comprehensive re-

sharp focus.
back

half

f

July

in

Finally,

bring

fact

trucking

result of any of these

a

as

formal

no

railroads,

tions

in¬

were

Congress

steps.

history

this

the

in¬

legislation

important

enacted

re-

will

healthy,

hearings

lengthy

place in Washington journalism. The old-timers such as the
Kiplinger and Whaley-Eaton letters have, of course, been with us,
for many, many years.
But currently there must be at least 50
others, of varying degrees of reliability and

parties to present their
Many of them, including

group

No

-

to

t

c e n

the

In recent years the "news letter" has come to occupy a
promi¬

Foods

General

of the News

By CARLISLE BARGERON

nent

/

interested

held.

brief

review

in

Traffic,

While

transportation

transportation

with

Union
Corporation

Schier, Vice-Presi¬

held, the working

dustry had failed of attainment.
In 1952, a number of bills deal¬
troduced

the

railroad

national goal of a strong,

well-balanced

ing

atmos-

y

live.

by

that

ii

Corporation.

industry to the "law of the jungle."

Washington

Ahead

Manager,

Carbon

Arthur C.

views.
has

It

R.

Tr^f ic

Carbide

approves

implementation of the Report's recommendations would return

students

Fairman

torney; and twp outstanding traf¬
fic executives, Charles H. Beard,

capabilities in the competitive pricing of their services. Denies
the transportation

From

Professor

Associate

Williams,

to

Ernest

Dick, wellknown
security analyst; George
Roberts, prominent New York at¬

of the report is that all

carrier be free to utilize

common

1949

Transportation, Columbia Uni¬

versity;

Conference

Transportation, and

essence

have referred; Dr.

of

spokesman reviews recommendations of the Presi¬

Cabinet

of its provisions.

most

President's

volume

of

which I

By DAVID I. MACKIE*

Chairman, Eastern Railroad

the

author

lurking in the House Agricultural
Committee and about to make its appearance on the
House floor
a good chance of
quick passage is of interest to all users of

July 5, 1955

with

industrial as well as home. It would advance
by a year the
1948 Sugar Act by which
quotas of domestic production, for which

sugar,

624,170 Shares

a

bounty is paid,

Long Island Lighting Company
Common Stock
Par

Value

$10 Per Share

fixed for eight

were

years, through 1956.
The
produce only about one fourth of this
country's consumption and for whom a vast allocation and
subsidy
system has had to be devised in order for them to
survive, have
enjoyed some good weather and have a surplus on
hand. So they
want the law changed a year ahead of
its expiration date to
give
them a larger quota.
This would be at the expense of Cuba
and

domestic

also

producers

who

the

at

expense of sugar users in this
country. Inasmuch as
some sugar produced in 22
State(s which means 44 Senators, you can imagine what a formidable Torce the
domestic sugar
producers constitute.

t

there is

*

«s,

Holders of the Company's

outstanding Common Stock

are

being offered the right to

subscribe at $20.50 per share for the above shares at the rate of one share for each
ten shares of Common Stock held of record on
July 1, 1955. Subscription Warrants
will

expire at 3:30 P.M., Eastern Daylight Saving Time,
'

\

The several
any

may

on

Joins Dean Witter Co.

July 18, 1955.

Underwriters

SAN

have

agreed, subject to certain conditions, to purchase
unsubscribed shares and, both during and following the subscription period,
offer shares of Common Stock as set forth in the Prospectus.
Prospectus

may

of the undersigned

W. C. Langley & Co.

Smith, Barney & Co.

liam B. Keller has joined the staff
of Dean Witter & Co., 45 Mont¬
gomery

Street,

members

be obtained in

as

may

any

State from only such

York

Stock

Glore, Forgan & Co.

The First Boston Corporation

Goldman, Sachs & Co.

Harriman Ripley & Co.

Hemphill, Noyes & Co.

Kidder, Peabody & Co.

and

Francisco

1

FRANCISCO, Calif.—Ed

P.

Boss

is

associate^

now

Brush, Slocumb & Co., Inc

Montgomery Street, members

the

San

change.

(Special to The Financial Chronicle)

with

Putnam

members

&

Co.,
the

of

6

Central

New York

Francisco
Mr.

Boss

Stock

o

Ex

formerl

was

Schwabacher & Co.

Two With Sutro Co.
(Special to The Financial
Chronicle)

SAN
bert

with

Revel Miller Adds

ery

(Special to The Financial Chronicle)

LOS

Revel

Spring

Miller

Street,

now

&

affiliated with

Co.,

650

members

Los Angeles Stock

South

of

Exchange.

the
"

Jr.

have

Sutro

and

Dan

become
&

and

Exchanges.

—

B.

A1

Wil

associate

Co., 407 Montgom

Street, members

York

ANGELES, Calif.—Robert

E. Jacobsen is

FRANCISCO, Calif.

Haas,

liams

Stock Exchange.

Stone & Webster Securities Corporation

White, Weld & Co.

with

HARTFORD, Conn.—Dudley W.
Butler and Roger F. Loucks are

-

Union Securities Corporation

San

ward

Two With Putnam & Co.

Incorporated

Merrill Lynch, Pierce, Fenner & Beane

the

SAN

with

legally distribute it in such State.

Blyth & Co., Inc.

of

Exchanges.

Row,




(Special to The Financial
Chronicle)

FRANCISCO, Calif.—Wil¬

New

The

Brush, Slocumb Adds

(Special to The Financial Chronicle)

f

San

of

the

Francisco

Mr.

Williams

Ne^

Stoc
W£

formerly with Stewart; Eubank
Meyerson & York

and

to with Kaiser & Co.

prior there

Volume

Number 5444

132

.

.

The Commercial and Financial Chronicle

.

(71)

Problems

Confronting

involved
routing of the

J.

B.

It

a

System

a

of

cial

.

but

what

I

agency

ribbon

a

and

all

the

system

years

clearing and adequate
discounting facilities. No twentieth
century industrial economy can

banking

country are fluid

and

demands

And,

at

anywhere
least in so

I wish

you

by

rather

this point.
But let me take a minute to ask:

Are

bankers reaping

all the
be/gained
from the wealth of experience ac-'
cumulated by these experts' who
you

benefits

that

the

are

best

and

as

to

they

see

the

whether

mine
it

is

serving
nation

the

satisfactorily.
No

will

one

surprised

be

when

I

say

the

that

American

-

people—and

HB'

J|t

I

do not mean

jHDH

only the man

•HMkww

on

the

street

its

policies

'Forty
the

you

and

the

examiners-to

discuss

the

member

System
with
regulation
of

banks.

As all of ybu know, a

large nart

tices

of

standards

\*/r\Diri.\A/inc

for

need

an

invitation.

Continued

on

the authors of
showed

Act

Reserve

great perspicacity in devising and

creating

system that was tailorcountry's economic

a

the

for

made

expansion. The fact that the Sys¬
tem has survived two World Wars,
two
booms
and
a
bust,
floods,

CHARTERED

droughts, inflation, deflation, and
what have you, is vivid testimony
to their imagination and foresight.
The'r creation constitutes oiie of
the

illustrations

best

be

to

1799'

THE

found

'

L.

J.

—do

Robertson

a

have

not

broad

un¬

derstanding of the significajn.ee of
ihe role which the Federal Re¬

System plays in banking, in
business, and—for that matter—
in
the life
of
every
individual.
serve

Proof

this

of

hand. There
loo

is

lack

on

every

some*iWho

are

are

ail

give 1 the System
things it does not do
power to do. There are

willing. to

praise

for

and has

others

no

seek

who

to

it

blame

for

anywhere in the world of democ¬

work. There is nothing
like
it.
It
is somewhat
similar to a pyramid. The Board
of Governors, which is its cap¬
stone, is purely government—and
wholly non-partisan. The Federal
at

racy

quite

Reserve Banks and their

which

the

form

BANK

branches

STATEMENT

of the

slice

next

£0 JUNE 30, 1955
CONDITION,

pyramid, are quasi-public-quasiprivate
institutions.
They -are
directed bv 269 private citizens—
men who serve as directors of the

clearly beyond the
monetary
policies.

System
is
sometimes criticized for competing

ganization's performance efficient
and effective; to read the roster

with

of

RESOURCES

System's un'ts, contributing their

developments
influence

of

the

Paradoxically,
the

city banks for
correspondent bank balances, and
for otherwise impeding their ac¬
large

the very time that it
being criticized for being

tivities,

at

is

also

a

"tool"

"captive"

or

those

of

banks," and of being
operated for their benefit, neither

"big

same

of which criticisms has substance.
I

associates in the
System and I are most responsible
suspect

my

become

in

absorbed

so

oUrM

work that we neglect
public relations. In addition,
are
obliged in some respects

bay-to-day
our

efforts

and

their

is

names

the

make

to

they rank among the leading citi¬
of the nation. And although
somewhat fewer than half of all

zens

commercial
of

banks

the 'System

stitute

is

such

as

and strength

attested

banks hold

than 85%

more

demand deposits of the

of the

country.

of the Federal

The work of the

System

those

lie, real efforts must seriously contend that the nation's
be made to open up the vista and financial structure would run as
enable the American people to see •smoothly or as efficently without
servants
of

risk

of

are

the

either

boasting. :

or

Fortunately,

of

accused

their

at

doing—even

are

being

apologizing

who

us

I

not alone in

am

services.

those

tem's
biggest
regulation—is

Such

a

this

will

criticism

tions, criticisms that

facilitate

of

our

ac¬

will serve tp

prevent us from developing a
smug ivory-tower outlook. There
is

no

better

way

to keep

an, or¬

becoming

from

ganization

so

it loses
touch than the fre¬

isolated and insulated that
the

common

quent tender of constructive criti¬
cism. I do not mean captious criti¬
cism

of

shrugged

the

sort

off as

that

can

be

merely partisan,

Robertson before
the 59th Annual Convention of the Wis¬
consin
Bankr s A"Ociation, M.iwaukee,
Wise., June 21, 1955.
♦An

address

577,610,042

.

133,444,436

••

•

#.

•

•

•

•

•

•

95,103,893

•

•••••

•

•

•

•

57,388,430

3,106,360,183

Loans

Accrued Interest Receivable
Customers'

.

•

•

Acceptance Liability.

.

Banking Houses......
•

.

t

18,242,167

•

•

12,862,821

••#••#••••

$7,421,809,650

LIABILITIES

Deposits

....

$6,712,185,361

.

Foreign Funds Borrowed

16,087,325

.

.

Reserve for Taxes

23,653,485

Other Liabilities

38,733,514

job

monetary
impor¬
tant to the country, although it is
performed by a relatively small
part of our manpower.
—

Acceptances Outstanding

more

even

Less: In

.

$111,590,273

.

\

Portfolio

General Reserve for Securities

100,642,460

10,94 7,81 3

12,125,501

•

,

course

constructive

Mortgages

and Other Securities
••

•

However, the Sys¬

doctrine. Others
have taken up the cudgels. For
Only the senior members of this
•example, the American Bankers audience can recall the country's
Association has just released an cash and check arrangements be¬
excellent pamphlet called "You— fore the Federal Reserve was es¬
tablished
40
years
ago
because
Money and Prosperity."
advancing

1,612,671,157

.

.

be

may

may

what

;i, 808,126,521

.

.

Reserve

roughly divided into two parts, al¬
we
though the parts are almost in¬
.to operate on a closed-mouth basis separable one from the other. By
in order to prevent some segments
far
the • greater
number of its
of the business community from 20.000 employees are engaged in
profiting by our actions at the ex¬ serving the public through the
pense of the rest. But whatever member banks and in supervising
the
reasons,
and
wherever the those banks. Nobody, today, would
blame

State, Municipal

Other Assets
The Work

.

Obligations

con¬

pyramid's base, the
of that base
by the fact that those

the

breadth

members

are,

and

Cash and Due from Banks
U. S. Government

that

know

to

or¬

because we tend

for this situation
to

time

by

pants
for

in

either

were

us

.

.

.

$150,000,000

.

•>

.

.

300,000,000

.
•

•

•

.

68,382,004

518,382,004

-

"

yet unborn. It is difficult
to conceive of shortages of

$7,421,809,650

the

same

somewhat

occurred

time

Broken

in

smaller

precisely

my

home

Bow, Nebraska,

announcement

Today

•

we

of

my

uoon

the
of

to the

one

to secure

public and

trust

deposits and for other

purposes as

required

or

pledged
permitted by law.

Member Federal Deposit
.

!

J

'

I
.

Insurance Corporation

•

%

.

the

95

birth.)

take for granted the

country

United State;; Government and other securities carried at $560,475,543-54 were

one

at

town

clearance of checks from
the

"

"

fr"

not

was

which

of

.

Surplus
Undivided Profits

knee-

enough cash to go
around and no way of increasing
the supply. (I refer, of course, to
the great national panic of 1907—
not

.

or

us

there

.

(12,000,000 Shares—512.50 Par)

cash, and yet the panic of 1907 re¬
sulted largely from the fict that

Mr.




of

most

Capital Funds:
Capital Stock

end

other in

a

OFFICES

IN

GREATER NEW

YORK

—

and

prac¬

your

'

dami/im/-

di¬

your

institution?
In
"problem" bank there will be

of this work is performed by bank

as

the examination

are

ago

years

Federal

is

do

invite

objective
presentations
of
views that challenge an agency to
"take another
look" just
to be

sure

their*

rectors

completed,

thoroughly
of ^enabling justified when tested on the firing
line of actual daily operation.
you to deter¬
view

sole

the

of

worst

make

intelligent,

informed,

had

the patience—

discuss

to

and

start

work

I

rounds?

the

far

excellent

men.

ing the
Reserve
supervision
and

of
be

in

the

of
our
dual
banking
system, Congress sought to streng¬

quickly mobilized to meet unusual
credit

from

by these

vantages

in¬

can

of mine that the banking
community doesn't get its money's

When

strong

,

a

thesis

banking

without

well

in

once

then the nation's banks by charg¬

currency
needs of

reserves

every

banks. Without sacrificing the ad¬

to¬

and

commerce,

get under foot in

while—sometimes when you least
want them. It has long been
a

the time—and

cient check

states

ago,

Task

who

institution

your

worth

Supervision

function
40

ha;ve an elastic
responsive to the

agriculture,
dustry. The
the

to

economic

of

But the
System was not de¬
signed solely to provide the coun¬
try with an elastic currency, effi¬

10

State

the

kinds

examiners

done
The

that

world

all

weather.

make

high, and enough

around the

contrast

in

assured

know

to

currency

make

wrap

day ;we

concern.

practicing
preach—by discussing the
of which I am a part, with

to be

seem

should

I

to

Wisconsin

In

concerned with noft only bank

be in order

It would

that

to

which Would festoon

land.
:

the

War.
some

concerned,
facilities for

are

adequate

discounting of paper; assum¬
ing they are sound banks to begin
with, their ultimate liquidity is

contiguous to it.

problems^ but also other matters of broad finan¬

supervisory

before

banks

are

the

enough left over to tie
bow-knot, the loops and ends

of

problems handled by this government agency. Points out
that during the last four years the System has been freed from:
the wartime strait jacket and now makes use of its traditional tools for credit control. Says, deciding when and what
actions should be taken necessitates daily meetings of the
are

there

circuitous

years

stack 350 miles

would

business, and in the life of the individual, reviews the history

v/hich

member

as

and

times with

and

Board of Governors,

the

interest

paper

checks

spokesman, deploring lack of understanding
the Federal Reserve System plays in banking, in

of the role

may

enough

Fadsral Reserve
;

in

days,

waste

that each year the System handles

of Governors,

Reserve

the

'

ROBERTSON*

L.

Federal

The

first World

three

or

with

delay

The Federal Reserve
Member Board

two

of

matter

contrasted

IX

17

OVERSEAS

But

in

page

a
no
ar

18

V*

12

The Commercial and Financial Chronicle

v

(72)

.

.

Thursday, July 7,1955

.

•

•

,

The

The "Stock" Life

Companies

Prcssprich Ss Co., Members New York

in force in

Commenting

is written

com¬

policy

lists as the causes: (1) population
growth; (2) impressive expansion of group life policies; (3)
continued favorable mortality experience; (4) larger families
covered, due to the increased birth rate; and (5)
of earnings on investment funds. Gives data on
life insurance companies.

and

held

owned by their

are

with

holders

stock

all,

at

accordingly,

publicly

no

which

'
investor
.

...

Han-

renowed

other

many

mutuals which

Mr. Graham

John

Prudential

politan

Stock Exchange

the great prosperity of the life insurance

on

the country

.

narrows

into

Fortunately,

among

No. of

Outlook for 1955

Introduction

Head Office

Life

7

for

was

another

life

the

record

insurance

Life insurance today
most

year

industry,

There

icy
of

$2,619

$14,802

2,552

15,375

100.0

Hartford,

Conn.

Fort

Life

Acc.

&

Nashville,

29

Jefferson

Life

Continental

Chicago,

33

Southwestern

Dallas,

running

Greensboro,

Virginia

34

Kansas

38

Franklin

Richmond,

1,315

6,156

94.8

6,865

86.5

2,500,000

526

3,917

100.0

ports.

C. 2,000,000

392,

1,324

56.7

348

1,752

99.8

various

338

3,127

70.8

500,000

323

1,212

85.5

free surplus

of

last

year.

39

Northwestern

42

Life

46

Disposable personal income

(2)

of which is spent on life
insurance—is running well above

—part
the

ac¬

in

counts. At the

million

60

1,755

45.0

over

34.0

unearned

West

Colonial

S.

New

1,372

196

1,157

99.2

500,000

163

813

98.8

2,000,000

118

783

100.0

250,000

111

484

99.8

250,000

70

695

87.3

300,000

65

455

71.6

100,000

62

359

99.8

.

York

San

Francisco

East Orange, N. J.

Moreover, life companies

During the past decade the

mar-

the

habit

of

lif

bil¬

Why this great prosperity?

A?
1™Provemtnis in
population mortality experience,

First, continued

,

growth.

life

policies.

in

Included

last

year's addition to life insurance
in
force
was
the
largest
group

insured,

ever

1.7

million

U. S. Government employees covered by a special act of Congress
for

$6.7

billion

life

of

insurance

written through 162 life insurance

companies.
Third, post
birth

rate,

coverage

increase in the

war

continuation

of

favor¬

1,000 of population, well

der

the

record

low

un-

figure of

9.6

earnings

on

for 1952 and 1953.

the

invested

As

funds

3.23%

of

they

maintain

can

Quired return on policy
The

Lo

Term

their

invest-

the

re-

reserves.

increased

from

after Federal in'

reached

of earnings

new

high lev-

in 1954.

year

cWpc
shares

nf
of

tho

the

90

20

fading life insurance companies
fouled

R

by

W

Pressprich &
Co. rose an average of over 90%
which compares with a 44.7% rise

The

only

sky

ance

Social

ever

out

cloud

Security

the

on

insur-

benefits.

How-

consideration

well

customers

are

half

over

of

their

in the medium

and

income group earning over
$3,000 a year, who are less dependent and influenced by Social

Security

major

payments.

life

war,

Barring

insurance

a

com-

panies and their shareholders

can

"H*

^bat

son

dividend

for

an

indefinite

period

'

of

an

in

are

half

returns

in-

greatest

(87.2%

the

the

four

build up a

of

of

1954

up

insurance

average

larger

„

,

,

^

go

tors

who

living
cash

income tax can posExcept for those inves-

any

need

expenses,

dividend

income

the

to

low

return

meet

current

from

life

J,le

toMtTs^nderstood"'is an^dvanT
age, not adisadvantage
not
disadvantage.
age

a

not

been and

are

appears as

a

not

being offered

matter

to

Aetna
Conn.

Gen'l_

Cur.

Div.

6/10/55

148.58

1_

1954

Equity

13.07

3.00

196

317.19

24.64

Price on

2.60

The

23.0

15.0

1.53

21.9

477

19.4

0.55

16.7

2.00

414

,15.7

0.48

29.2

19.00

2,480

13.2

0.77

25.5

15.8

0.38

10.5

7.6

.

10.1
12.8

following figures illustrate their excellent growth record
Insurance

Aetna

Capital
Assets

Earns. Dividends

Funds

per Share

—

81%

Conn.

Travelers

79

82

84

146

127

118

166

61

__

73

97

Lincoln

60%

93

Gcn'l

41

76

133

73

In addition to the "big four,"

105%

.

104%

140%

produce to be worth anything, but

following sound and well,re- cash and prime grade securities,
***** equ.fes of medium sized
<4, It is closely supervised and
companies
at

to

be

a

good

Colonial

appear

present:

Life,

regulated

the

insurance

(6)

Labor

a

authorities.

industry.

problems

at

are

a

CD

has

toP

rate

financial

management.

industry of-

(8)

Accounting

is

factor due

methods

are

conservative.

(9)
an

essential

industry,

substitute for life in-

no

(2) It deals in the most Popucommodity
in
the
world—
money

does

not

model

each

year,

outmoded

by

require
nor

are

machinery

to

is

a

high

small

leverage
capitalization

It

has

power

exceptionally high
(return on invested

capban

'

,

'J.

_

Clean capitalization of the

'

nu-

leaalng companies — none have
senior stock or debt outstanding,

not struc-

(12) It has a record of profitable operations even in the worst

will

electronics

Book values

(10)

earning

new

a

There

in relation to total assets,

out of

goes

never

style,

or

public
growth

minimum.

lar

(3)

It is

following advantages to

It

money;

by

(5)

Life, Gulf Life and Na¬

The life

tures
Direct

19/54

Earns.

26.29

it

or

be

clear energy.

1, 1980

Div.
to

Capital

188.06

surance.

due June

Yield

Inv.

since 1949:

(1)

Twenty-five Year 4%% Debentures, Series 1

Cash

on

Eains.

Average

there is

Telegraph Company

line"

Return
A

1954

274.91

investors.

The Western Union

"multiple

1,525.00

Lincoln

Travelers

fers

$38,500,000

largest

Times

Earn.

Summary
-

the

companies, writing in addition to
life insurance, a considerable
amount of accident and health,
and casualty insurance; Connecticut General writes mainly straight
life and group accident and health
business; and Lincoln does a substantial re-insurance business,

Est.

the public.

of record only.

comparable: Aetna and Travelers

Figures in Dollars-

tional Life and Accident.

announcement

-

-Percentages

value

This

+u

are not entirely

Price

Franklin

These Debentures have

over

their ?wn.;

•

These companies

are

in Force

sibly do.

^T1/'

r.nmr>a

,

-Per Share

are

compounding earnings at a much
faster rate than most investors
subject to

panies, all with assets of well

The trend of earnings and
growth of business more than any
°^ker ^a^or determines common
sto<:k Prlc^s- The return on invested capital (earnings on book
value) apd the growth in life insurance ln iorce oyer a period are
of the most imP°rtant ratios

earnings.

companies

quite substan-

were

$f billion.
They are the "bluechips" of the industry, with an in-

Market Data

1%

earnings

companies)

gains, which

P°tentlal increased cash income.
,

based

are

tial in some companies.
These four companies are the
so-called "big-four" stock corn-

vehicles for capital gam and
Stock

share"

net earnings after dividends to
policy holders and exclude capital

,

"

premiums.

years

per

0n

stocks wl11 continue to be excelT i lummut u u. am-

rea-

for
to
larger capital which in

was

top

Most

part

latest

"Earnings

buv-

less are rather typical is, that

ulv,u':"u1

Ume.

be

when

ing life insurance stocks. The

insurance executives point turn builds

that

ings

cidental

the

to be increasing

appears

rent cash yields should

or

Outlook

upper

result, most life insurance

companies
mpanies

els
s

rate

taxes.
a

basis,

overall rate earned on
ments well in excess of

'■

per

3.15% to

month

passing

every

necessary.

Fourth,

Fifth,

.

With

the
the

v^r

the old 3%% policies are1 expir- jn the Dow Jones Industrials"
ing.
Most life insurance written since January
1955
life insursince 1945 has been on an annual ance stocks rose by a further 19%.
reserve interest rate of 2V2% or This outstanding market
performless. As life companies now make anc'e more than offsets the low
an increasing volume of invest- yield on these stocks.
As in the
ments at better than a 3% return case 0f other growth stocks cur-

larger family

making

able mortality experience; the na¬
tion's death rate for 1954 was 9.2

come

T¥T>jl

_

(5)

Second, impressive expansion of
group

Continued improvements in

(4)

T.n«t
Last

on

and estimated
insurance in force.

life

$15 per thousand, group at $5 per
thousand and industrial at one-

their

life insurance sales substantially.

year.

reserves

business,

of

valuing life insurance in force,
ordinary life has been taken at

ket performance of the leading stock dividends
In most cases,
lion in life in¬
pre-war protection.
In 1954 life *ife insurance stocks has been outa life stock is split, say two
insurance' oremiums renresented a standing.
surance.
As¬
Between January 1943 f®** °ne, the old dividend rate is
0. J. M. CrZT
sets of all life
"smallerpercentage of "dis- and January 1955, for example, continued on the new shares thus
cretionary"
spending power
companies hit
0f Aetna Life stock increased 1185% doubling cash income.
That is
an all-time high of $84.2 billion, a
consumers
than
the
estimated in
va]ue, Connecticut General why people buy life stocks.
gain of over 7% and sales $44 9 14%.% share in 1940.
This repre- 2909%, Lincoln 5141% and TraIt is confidently expected that
billion, a gain of over 24% for the sents a real opportunity to expand vellers 864%.
selected life insurance company
held $339

of

excesses

In

substantial

paying

considered to be

reserves,

premium

non-life

value

I

their

e* insifra nee' <T(Tm par a ble* to

Boston

Life

Coast

265

1

Market History

people have failed to protect
high standard of living with

can

policy holders

U.

220,000

3,333,333

re¬

subsidiary book values
carrying values, equities in

89.3

1,734,375

-

Jacksonville, Fla.

Columbian

90

In recent years the Ameri¬

(3)

Baltimore

Life

87

$2531/2 billion

1954.

1954,

Gulf

59

111.

Minneapolis
Nashville, Tenn

Casualty

93

level of

record

Springfield,
Nat'l

Monumental

&

annual

on

1.055

306

state¬

1954

reserves

market

291

40,000

drawn

"Estimated

600,000

City

to

course,

equity
per
share" includes capital funis plus

'

Life

due

were

from

and

1,200,000

N.

Va.

111.

additions

in

convention

from

ments

1,044

Texas

Kansas

City

600,000

Tenn.

These
are

figures below

chiefly

1,000,000

Ind.

Wayne,

31

of

The

92.1

400,000

Fig-

19% above the record level

about

owners

of

3,000,000

Conn.

indicate that

1955

sales of life insurance are

holders

93

far for

are

savings

end

continues to be strong.
so

Conn.

32

life pol¬

than

ance

Nat'l

Participat.

Hartford,

Lincoln

24

The demand for life insur-

(l)

Conn.

Force

Hartford,

Gen'l

14

ures

and

growing
big¬
ger with each
passing day.
more

Travelers

16

is by far the

important way of saving in

America,

Aetna

8

1955 is excel-

The outlook for
lent because:

Non-

Ins. in

Assets

value

translated, with patent lcgic, into
higher share prices.

% of Ins.

Admitted

Shares

value.

book

Total

Industry
Ranking

1954

book

(In million dollars)

1954

' I*

f

holders in the form of dividends
increase
in
(cash income)
and

]0w

however,

f

.

there,is available to stock-

more

gre

life insurance stocks.

a higher rate
leading stock

f

to look for when considering in-

business, and the stocks of which
activeiy traded, is given be(ranked
according
to
admitted assets):

.

entry

'*

of the business, there are some vestments in life company stocks,
exceptionally well-managed com- These are the best yardsticks by
panies. All of their stock is traded which the management and the
over the counter.
In the hope of companies'earnings power can be
contributing to investor knowl- determined. Capital is built up
edge in the field, a list of the lead- and dividends are paid out, after
stock life companies among all, from earnings, and the higher
the 100 largest companies in the the above ratio over a period, the

by mutual companies like Metrocock

panies,

"stock" companies, which do 35%

About 65% of the life insurance

By DOUGLAS J. M. GRAHAM
R. W.

Companies

Stock

*

,

which

must

depression

years.

placement of the above Debentures has been negotiated by the undersigned.




Joins H. L. Jamieson

N. W. Newbold's Son Adds

(Special to The Financial Chronicle)

Salomon Bros. & Hutzler

SAN

FRANCISCO,

Calif. —R.

H. MacMichael has joined the staff
of H. L. Jamieson Co., Inc., Russ

PHILADELPHIA,
Street, members

exchanges,
ton C.

Building.

With Pacific Coast Sees.
Philadelphia

San Francisco

Dallas

W.

H.

of leading stock

announce

that Thorn¬

Pray is now associated with

With King Merritt

(Special to The Financial Chronicle)

Cleveland

—

them.

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

Boston

Pa.

Newbold's Son & Co., 1517 Locust

Chicago
SAN

West Palm Beach
yan

the

ties

(Special to The Financial Chronicle)

FRANCISCO, Calif.—Lil-

LOS

H. Brandt has been added to
staff of Pacific Coast

Company,

Street.

240

Securi¬

Montgomery

F.

ANGELES, Calif.—Daniel
Meier, Jr. is now with' King

Merritt

&

Broadway.

Co.,

Inc.,

1151

South

Number 5444

132

Volume

i

No

.

.

(73)

The Commercial and Financial Chronicle

.

PAUL

would be

intends to

meri

were

might

mean

have been

there

countries,

pean

persistent

ru¬

mors

all

the

world

over

the

about

British

Gov¬

ernment's
1

e

g e

t i

de¬

to

o n

value

al-

d inten-

sterling.

It

possible, sterling may have
assumed
a
firm tone, in which
come

bility

is

in

forever

firm

the

did

Mr.

But¬

in¬

formed
colleagues about
devalue

the

the

his
his

pound

restora¬

its

of

convertibility.
These
were
partly responsible

rumors

for the weakness of

sterling dur¬
ing the second half of June.
Those

cretive

acquainted
character

Government
there

not

se¬

British
that

aware

possibly

this

to

the

the

be

must

could

foundation

with

of

be

story.

any

it

Let

1947 Di. Dalton had

to resign

he communicated to

cause

nalist

minor

some

be¬

jour¬

a

provisions

of

his Budget an hour or two, before
he announced them

in public.

In

few other countries would breach

of secrecy carry such a

alty.

heavy

pen¬

Nor have Dr. Dalton's
forgotten the lesson.

In

one

Gaitskell, when Chancellor of

journalist's harmless question

to whether the Bill he

was

as

to in¬

troduce
next
day was ~short or
long.
As for Mr. Butler, he obvi¬
ously enjoys himself in the House

Commons

of

when

sidestepping

question after another.

one

Chancellors

strongly distrust their Continental
In

colleagues.

Sir

1949

Stafford

Cripps kept his French colleague
in

dark

the

about

devaluation

of

the

impending
until it

sterling

announced

publicly,
even
though he did not hesitate to take
was

his

American

into his
things have
a
habit of leaking out in Paris,
and he had to safeguard himself.
He may not have forgotten that

confidence.

colleague

But

then

the Commonwealth
Plan

was

—until

Convertibility
closely-guarded secret

a

it

Continental
It is

communicated

was

to

Governments.

that,

if

Mr. Butler in¬
tended to devalue, he would not
informed

have

Continental
The

story

in

so

sheer

dismissed

be

invention.

happened

his

advance

colleagues about it.
that he had actually

must

done

as

What may have

that

he repeated
the well-known formula, embod¬

ied

in

was

the

Commonwealth

Plan,

according to which sterling would
be

is

made
made

more

flexible

convertible.

it

when

Owing

to

the weak trend of sterling, it was
assumed that

depreciation
ment

doubt,
come

what

it is

if

this

of

would

sterling

mean

the

a

mo¬

made convertible.

convertibility

were

No

to

tomorrow, that is precisely
would

happen.
But con¬
vertibility is not imminent. Quite

possibly by the time it will




rumors

NATIONAL

be¬

Murphy,

The

acquisition of

a

membership

by Mr. Holt gives Holt & Collins
two

seats

the Exchange.

on

CITY BANK

ofNew York
Head

Office: 55 Wall Street, New York

73 Branches in Greater New York
•

ford

59 Branches Overseas

•

to

Statement of Condition

Cripps disclaimed his inten¬

tion
the

1949.

in

devalue

denial may
its

safely be accepted at
value.
As Sir Edward

face

ASSETS

recalled, Mr. Butler had
made it plain under what circum¬
stances he would be prepared to

Cash, Gold

Due

and

He

convertibility.

/

also

implied that those conditions are
yet unfulfilled.
There can be
rio question of changing the value
of sterling in either direction un¬
less
and
until
its convertibility
could

restored

be

time.

is there

Nor

the

at

same

question,

any

in its
parities. All that flexibility would
of

then,

even

official limits to

is that the

mean

its range

change

any

U. S. Government Obligations

Deposits

Liability

,

.

1,719,056,990

.

.

45,738,966

,

553,358,984

ances

Obligations

Other Federal

of

Agencies
State

.

Municipal Securities

and

Ofhkr Securities

Loans

of

accused

having gone

fending the

Customers' Liability
Acceptances
Stock

Securities

"Inside

his

in

best

1931

of

42,928,170

Items

with

,

.

,

,

tional

Government

Branches

a

1931

of

last

of

editions

revised

The

obvious

his

did not correct

sterling

T

fenders

HOWARD C. SHEPERD

ALEXANDER C.

his

time—by

a

long

Head

such as to
possibility of making

convertible for quite

If Mr. Butler

were

of June 25.
are

pledged

Vice-Chairman of the Board

PERKINS

RICHARD S.

Company

Office: 22 William Street, New York
administration of

Statement of Condition

trust

as

functions

of June 30, 1955

enough today to follow Dr.

plunging into
convertibility,
quite

premature

possibly he would have to termin¬
the attempt ever sooner than

ate

Dr.-Dalton

in

1947.

Such

for

discourage
at

Due

and

least

Banks

from

....

U. S. Government Obligations.
of

.

,

State

and

$ 48,498,519

Municipal Securities

Loans

and

.

.

.......

Advances

Real Fstate Loans
Stock

in

......

and

Securities

Federal Reserve Bank

.

Reserves

3,298,779

Other Securities

Deposits

.

.

.

16,971,872

2,704,279

Capital

$ 10,000,000

3,156,405
1
.

.

.

.

600,000

Bank Premises

Other Assets

3,175,152

i

,

10,000,000

.

.

12,321,580

2,475,386
Undivided Profits

..........

10

$166,926,172

Total

$19,710,421 of United States Government Obligations

.$166,926,172
are

pledged to

secure

Public Deposits and for otber purposes required orpermitted by law.

years.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

There

the

is

yet

problem.

another aspect of
By

restoring

con¬

vertibility, the Government would
further strengthen the

32,321,580

a

further

another

5,771,314

(Includes Reserve for Dividend $500,852)

Surplus
.

$128,833,278

86,045,779

Other Federal

Agencies

Total
would

LI ABI LITIES

ASSETS

Cash

a

ill-ad¬

Dalton's example by

attempts

556,0"8,400

$6,855,988,459

Affiliate of The First National City Bank of New York for separate

Obligations

the British bal¬

payments are

rule out the

fiasco

56,078,400

President

Trust

i

So from this

sterling.

The prospects of

did

300,000,000
.

claimed to be the de¬

time at any rate.

vised

.

devaluing

question of devaluing sterling,

while.

.

CITY BANK FARMERS

book.

allowing it to fall, for

the pound

.

JAMES S. ROCKEFELLER

NAGLE

error

no

of

.

was

or

ance

.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

after the general
during
the
course 1 of

of

.

are as

Chairman of the Executive Committee

Chairman of the Board

soon

which they

.

Public and Trust Deposits and for otber purposes required or permitted by law.

Conservatives
provide an
opportunity for reviving the old
charge — which would be well-

election

.

Total

Figures of Overseas Brandies

thing the

this

.

Undivided Profits

$6,855,988,459

would wish to do is to

founded

>5,500,000

.

surplus

8,421,608

this

in

304,043

.

flagrant breach of
day Mr. Gunther

of

1,641,200

.

31,519,148

.

.

$561,151,94.1 of United States Government Obligations and $20,712,000 of other assets

believe — or
pretend to believe—that the Na¬

To

1955

$200,000,000
(10,000,000 Shares—$10 Par)

33,068,518

Total

people firmly

faith.

of

7,000,000

Other Assets

to secure

22,884,890

.....

Interest,Taxes,Oiher Accrued
Expenses, etc.

15,000,000

Capital

Transit

in

Other

and

Dividend

,

.

„

19,193,300

.

.

for:

Merger Dated March 1,

International

Banking Corporation

44,385,698

27,623,018

this day

to

Yet

many

guilty

Portfolio

Foreign Central Banks

—

obviously false.

October

to

Payments Under Agreement

.......

.

seller

is utterly and
Britain went off
the gold standard in September
1931, and the general election did
not take place until a month later
Europe"

$72,008,716

,

Unearned Income

■>

Ownership

was

Gunther

John

Bills.

and

Reserves

32,923,095

.

for

Federal Reserve Bank

in

standard.
This
originated by

gold

charge—which

Accept¬

(In Foreign Currencies)

2,641,050,349

and

gold standard in 1931 after

having fought and won the gen¬
eral election on the slogan of de¬

on

Unearned Discount
Real Estate Loans

Bank Premises

The Conservative Party has of¬

$6,174,785,823

.

ances in

Due

127,201,545

Discounts

and

.

Less: Own Accept-

of fluctuations would be

widened.

been

.

LIABILITIES

.$1,629,936,191

Banks

from

Boyle

restore

of June 30,1955,.

as

on

official

the

occasion

present

But

bargaining

Chairman of the Board
HOWARD

C. SHEPERD

Vice-Chairman of the Board
LINDSAY

BRADFORD

and

member of the Exchange.

a

in¬

an

of

by intrafirm

transfer from William V.

Street.

Sutter

membership

on

point of view alone there could be

perfectly safe to take it for

granted

partner

The FIRST.

cynics may re¬
call the number of times Sir Staf¬

in

British

Moreover,

devaluation

the

deny

off the

the Exchequer, refused to answer

general

June 30. Of course

The

being one of the
greatest "stonewallers" of all time.

a

Collins, acquired three Y\

Boyle,

emphatically

most

fact

in

reputation

a

58

question in the

a

Treasury, Sir Edward

ten

Mr.

to

answer

late Sir Stafford Cripps gained the

of

Holt,

-V\

one

from offices at

suc¬

cessors

Mr.

Cal.—Peter

conducting

out

as

be sufficient to remember that in

is

Shields

G.

vestment business

grant wages demand with¬
impairing the competitive ca¬

of its firm periods, in
shock.

and

simultaneously with
tion

made

circumstances, it is important that
it
should
be
made
convertible

centres

had

by Ronald E. Kachler, President

Holt &

FRANCISCO,

to

of the Exchange.

Shields Opens

ble to

House, the Economic Secretary to

that

to

is

order to minimize the first

ler

G.

P.

flexible, it would be possi¬

could not remain
any
conceivable

Even if sterling

during

Lmzig

Continental

sterling

if

true,

elected

memberships at $1,500 each,

refusal

the end of converti¬

moment when sterling is

a

York

intention

that

aware

been

has

Stock Exchange, it was announce j

the

Converti¬

threats of strikes.

even

Holt

membership in the San Francisco

(Special to The Financial Chronicle)

firm, in order to avoid a too heavy
initial drain on his gold resources.

sterdam, New

Paul

taking

thus

by

FRANCISCO, Calif.—Edi¬

A.

son

ain has become less vulnerable to

Wages

would mean ap¬
preciation and not depreciation.
Indeed the chances are that Mr.
Butler would choose for converti¬

going
'round
in Paris, Am¬

Dr.

SAN

a

flexibility

case

The story was

other

by

bility will have to wait until Brit¬

pro¬

become

itself

credit

SAN
more

LONODN, Eng.—Ever since the
recent Paris meeting of the Fi¬
nance Ministers of Western Euro¬

and

followed

be

could

line of least resistance.

bility.

jrumors.

-

duction

New S. F. Exch. Member

steeper if those putting them for¬
ward

Says conditions are not yet present for res¬
toration for sterling convertibility.

such

would

demands

acquainted with the secretive character of the British Govern¬
ment are aware that there could not possibly be any foundation
to

major

longed strikes at all costs.

the persistent rumors that the British Governdevaluate sterling, Dr. Einzig points out those

on

avoid

to

pro¬

cost

the

depreciation of sterling.
But the
Government
would
utterly dis¬

its ut¬

do

For

of

in

increase

the

heavy blow, the Gov¬

a

ernment would have to

EINZIG

most

Commenting

pacity of British exporters.

position of the Trade Unions. They
would be aware that, by calling
a
major strike, they would en¬
danger convertibility.
And since
a
suspension
of
convertibility

Sterling Devaluation or
Convertibility in Sight!
By

•

13

■

President
RICHARD S. PERKINS

Z4

The Commercial and Financial Chronicle

(74)

entitled

Oppoitu niiies for the Blind

each

the

of

and

48 states

U. S. which

the territories of the

BARSON

By ROGER W.

f

This

in

cies

for the
pamphlet lists agen¬

"Opportunities

Blind."

case

and arrive quickly at

wasting bur eyesight on nonsense,

things

boratories

often been
asked how I used my time while
there.
Unfortunately, I do not
play golf or
indoor

There

two

are

of blind¬

kinds

blindness can see at a dis¬
of only 20 feet what the
feet.
So-called blind people who you

that blind persons are

positions they

many

better

listen,

meditate,

they

are

a

and

glasses,
are
often
able to see
somewhat, although they are le¬

however,
made

a

I, of course, am in¬
terested in these, but I am espe¬
gally blind.

practice of se¬
lecting
some
one subject to

study
winter,

course." It has
and

helpful

have the best

a

"postgraduate
to

When

I have

opportunities.
in

was

college, most of

Braille—
that is, reading with their fingers.
Babson
Park, with its Institute
and Research Plants, is within a
few

been studying this past winter the

I

the totally blind learned

myself and others.
As heretofore indicated,

interested in
the totally
believing that they may

cially
blind,

each
as

of

sort

interesting

miles of the Perkins Institu¬

which

tion,

is

one

of

best

the

schools for the, blind in America.
Since the development of the ra¬

capped,

problem of the physically handi¬
but not the problem of

dio,

the

the

trained

psychologists, therapists,
the others engaged in mental re¬

people have been interested in
learning Braille.
Let
me
say,
however, that every blind per¬

habilitation should attempt to help
with this mental problem.
My

the Braille alphabet and

mentally retarded.
This lat¬
ter is in a class by itself.
Only

f.tudies have been devoted to those

physically handicapped through
:'aulty birth, accidents, war, polio,
other diseases,

and

but who have

good brains and the ability to rise
the top in almost any business

to

phonograph,

"talking

keep records

of

names

tele¬

and

phone numbers and short memos.
This enables one to serve as a sec¬
retary, or

a

sales clerk,

or even an

executive.

once assumed that
being phys¬
ically handicapped often retarded
:pemory or judgment; but scien¬

tists, psychologists, and the medi¬
cal

profession

in

tell

this.

Chose "born

me

with"

that

I

am

insist

that

ambition,

per¬

They

sistence, and talent still have them
after

who

ities

accident;

any

am

those

apparently lacked these qual¬
before

an

have them after

in

while

the

case

of

accident
one.

seldom

This is true

blindness, which I

discussing this week.

Much is being done bv the Fed¬
eral'Government, the State Gov¬
ernment, and private organiza¬

tions

toward

Sometimes

those of
we

us

do not

and

use

who

are

should
ment

I

has

person

helping
think

better

that

blind.
blind

a

than

prospects

with eyesight, because

appreciate

it

the

as

we

our

eyesight

should.

Those

interested in this subject
the U.
S. Depart¬

write
of

Health,

Education,

and

habilitation, Washington 25, D. C.
a

copy

of

their

pamphlet

are

ideas, methods, and proc¬
These qualifications—some

esses.

of which

distinctly based

are

spiritual

upon

often

pos¬

power--are

sessed

by
exceeding

the

blind

those

to

of

degree

a

the

normal

that

appreciate

all

our

but

use

not

satisfaction
creased

than

natural

and

in

but

Lessons

basis of

for

but

character

will

also

blind

walk,"

made

changed

Opens
Chicago Office

New

CHICAGO,

this

Sims

&

111.

Co.,

Inc.,

City, has opened
29

at

South

La

Herbert

—

the

rather aroused

or

spirit to
cap.
Just

New York
branch office

a

Salle

Street

hearing,

when

former
Trust

of

read

these

this

wonderful

heads,

technically

little

I

we

As

I

factory
am

all

carry

in

our

known

as

our

pass

through

has

impressed with how

been

With

He

is

ment

the

miraculous

brain.•

about

airplane,

the

the

Chi¬

recently.
Sims

J.

&

Co.

private placements.
a

member

Bond

Club

Traders

Executive
wonder

the

of

Chicago.

of

Club

and

the

is

not

an

offer

to

dispose of,

or

solicitation

of

an

offer

described

below.

Wood;

Progress

Report

the

of

House

Monopoly Subcommittee
by Rep. Emanual C e 11 e r ;
Mergers and the Antitrust Laws,
Gen William J. Donovan—
Legal Publications, Inc.

Economic

)

Accounting

Powelson

John

—

McGraw-Hill

—

P.

Book

Company, 330 West 42nd Street,
New

York

Economic

36

(cloth), $7.50.

Issues in

Mini¬

Federal

Wage Legislation—A Bib¬

mum

liography—Selected
Industrial

Reference,

Relations

Section,
University, Princeton,
(paper), 20c.

Princeton
N. J.

Farrar,

Straus

Catalogue
Farrar,
N. Y.
Final

Fall

—

1955—

for

& Cudahy, Inc.,
Avenue, New York 3,

(paper).

Report

to

the

on

Commission
the

books

Straus

Fifth

-101

Cudahy

&

of

Organization of

Executive

Congress—

Branch

the

of

Government—Superintendent of

Documents, U. S. Government
Printing Office, Washington 25,
D. C. (paper), 250.

Input-Output

tRe

in

search

Analysis:

An

Income

University

Princeton,

N.

Re¬

Wealth—•

and

Princeton

Ap¬

on

Conference

—

Press,
(cloth), $7.50.

J.

Intelligence Activities

Club.

ernment

Bond Club of N. J,

D.

Thompson, Drexel &
Co., has been elected President of

Commis¬

—

Organization

on

Executive

tele¬

vision, telephone, and other "great

buy, the securities

—

Milton Handler and Laurence I.

sion

Glenn

to

1955

articles on Patent
and Trade Mark Aspects of the
Report of the Attorney Gen¬
eral's
National Committee,
by

Sales

Elects New Officers
This

(paper), $3,

Containing

praisal

Invest¬

marvels

radio,

4, N./Y.

Bulletin, June

Market Investing—Martin Kimberly—William-Frederick Press,
313 West 35th Street, New York
1, N. Y. (paper), $4.00.

in

Analysts Society of Chicago,

Bond

and

Broadway,

Fundamentals of Successful Stock

manager

Herbert

and

sues

most

powerful

New York
Antitrust

of

Bureau

50

Securi¬

he will specialize in municipal is¬

realization

the

O.

ican

their

until

cago

an

or even down the

Statistics,

ties Corp. and

sibilities to be derived from their

of

of

for the Amer¬

Con.its

Philip T.

ma¬

people have of
their opportunities and of the
pos¬

We

Union
Co.

Chicago office

that

street,

the

col¬

who

chines

or

rep¬

Cleveland,

with

This includes

from my winter studies
has been the great value and
pos¬

office

he

resented

learned

"brains."

1922,

principal thing I have

The

sibilities

business

since

them

speech,

been

securi¬

Five years ago
he
opened
a

of those

umn.

and

of all limbs.

American

—

Metal

Col¬

has

the

ties

lame

man¬

Mr.

lins

a word,
in closing, to
readers who have normal eye¬

use

as

ger.

in

phys¬

in

with

Philip T. Col¬

their handi¬

overcome

J.

of

See

them

Book

by

Herbert J. Sims

wonder

and

He

a

full

in¬

Bureau of Metal Statis?

tics—34th Annual Issue of Year-

(paper), $2.00.

whether,
when Jesus "restored the
sight of

sight,

and

get

American

Federal

success.

Us Who Can

sometimes

my

us

non¬

hoped.

ever

judg¬

memory,

ambition;

is the

ically,

Let
on

it

lins

the

should

us

more.

promolion#«L-far greater

we

or

brings me back to the third para¬
graph of this column.
Blind peo¬
ple instinctively learn to sacrifice,

I

and my

eyesight

gain

only

see

constructively.
believe that we will

I

do,

we

of

such

can

same,

our eyes

waste

who

us

normal

provided he

person,

has

ment,

which

developing

few of

is

appeal
not

fact, the future of a
blind person who is given proper
opportunities can exceed that of
she

now

A

the

of

In

person.

a

Many

attempting the

If

Welfare, Office of Vocational Re¬
for

are

better

.95%
Opportunities for the Blind

blind
brains.

and offer their employer more and

use

number¬
ing system, in order to be able to

increase.

sense,

books," fewer blind

should at least be able to

son

I

wrong

pray,

quickly at a correct
they are more creative

decision;

especially

and

profession.

or

time to

arrive

have

been

more

and plan;
better able to concentrate

see

I,

Rojer W. Babson

are do¬
than those who

work

They have

see.

of

in my garden.

Ketter-

ings, Van Dykes and Rembrandts,
Longfellows
and
Tchaikovskys.

should

Bookshelf

develop

and

musicians

ercise consists

a

Therefore,

thousands of Edisons

writers, scientists, and

In

can

feeling their way along with
or
holding certain jobs
with
the aid
of powerful
eye¬

heads.

our

that there will

work.

ing

cane,

has in

us

forecast

one

inventors,

normal person can see at 200

walking
n d
working

compare
each

The present number of

tance

ex¬

successfully

I

Man's

la¬

great

engaged in these different lines of

legal

games,

My

Blindness?

Is

ness—namely, legal blindness and
total blindness.
A person with

including
cards.

it constructively.

use

What

I _haye

Florida,

but

the

working

with the machine which

of

pro¬

None of these

which

are

Business

will

say

employment,

upon

Thursday, July 7, 1955

.

auto¬

robots,

and

magazines

some

duction, and sales.

professions, trades, retail
establishments,
factory
occupa¬
tions, and clerical and personal
service positions.
Many of these
categories
I
have
personally
checked this past winter and find

Urges

correct decision.

winter

Since returning from my
In

a

which

revolutionize

.

fright¬

energy,

cybernetics,

various

of the blind, in many positions

to concentrate
not

I

mation,

become

often available for the blind in the

his studies of the physically handicapped, finds
they are doing
better work than those who can see. Says they are better able
Mr. Babson, in
the

We

atomic

about

in such vocational re¬
habilitation. Job opportunities are

specialize

in

inventions."
ened

.

Branch

the

of

the

of

Gov¬

Superintendent

—

of

Documents, U. S. Government
Printing Office, Washington 25,
D.

C.

(paper).

Money:

Master

48-

Servant?

of

succeeding Edwin F. Kezer, B. J.
Von Ingen &

offer

or

solicitation

is

made

only by the Offering Circular.

NEW ISSUE

of
banking
in
our
economy — F e d e r a 1 Reserve
Bank of New York, Public In¬

Co., Inc.

Such

formation

the

Club

Bond

New

of

Jersey,

Utner

officers named

100,000 Shares

C

Overseas

Jersey

N.J./
John

the

Co., Newark,

Common Stock

Roos,
i d

r

Miller

&

.

bert

A.

and

by, and Offering Circular obtainable from,

D.

Thompson

This

is

re-election

a

Edwin

Hoehn,

Walter

Union

Trust

F.

Kezer,

Gregory

H.

&

Stohl,

Her¬

Sons,

Fidelity

Company, Newark.

Berk, Greenberger Admit

Aetna Securities Corporation
III

BROADWAY

NEW YORK

6, N. Y.

Berk,

and

July 7, 1955

t



Greenberger

&

Co.,

60

Beaver Street, New York City, on

July

1

admitted

James

J.

partnership in
Pivar

and

—

U.

Government

S.

—

Lester

Monograph

E.

Prac¬

—

Law

Institute, 20 Vesey
New York 7, N. Y., $2.

Street,

Significance
surance

Chosen for the B^ard of Gover¬
were

the

of

.

Mr. Roos.

nors

Orders executed

tising
Glenn

Co.,

Treasurer.
for

Branch

Transactions

Dennon

e ;

Newark, N. J

Offering Price: $3.00 Per Share

Secured

Secretary; J.
M

Executive

Printing Office. Washington 25,
D. C. (paper), 250.

&

William

Operations—

Organization of

on

Documents,

Ryan, Ryan,

B

re¬

on

Government—Superintendent of

J.

Hanauer

a c

(paper),

Economic

Commission

Vice- Presi¬

Manufacturing Company

45, N. Y.

quest.

Wells,

dent;

Division, Federal Re¬
of New York, New

Bank

&

C i t y,

Marvin Electric

and

money

serve

Spring,

.

Outwater

role

the

on

York

Andrew

were

booklet

page

Sam

Kandel

Horowitz
to

the firm.

Joseph

Economy

In¬

Personal

the

in

Na¬

the

William

—

A,

Berridge—Renrinted from "Ex¬
amination

of

Insurance

Compa¬

nies," New York State Depart¬
ment

of

Insurance—WiRiam

A.

Berridge, Metropolitan Life In¬
surance
Company, New York
(paper).
Water
ume

Resources

and

ganization

of

Branch

the

of

Superintendent

Samuel

U.

S.

fice,

Power

Two—Commission

limited

Grogan retired

from the firm June 30.

tional

of

Business

the

on

Vol¬

Or¬

Executive

Government—

of

Government

Washington

Documents,
Printing Of¬
25,

D.

C.

The Commercial and Financial Chronicle

Number 5444

Volume 182

(75)

BANKERS

TRUST

COMPANY, NEW YORK

June'30/55
Total

News About Banks

resources

NEW

U.

BRANCHES

NEW

REVISED

Loans

and

527,149,831

U.

530,102,952

429,350,338

Loans

discts.

1,341,795,409

1,050,130,916

profits

45,008,491

54,427,662

12,620,481

10,641,360

41,800,729
14,554,247

11,538,287

vided

Undivid.

CAPITALIZATIONS

Govt,

rity

❖

&

profits

:fc

S»

BANK

THE

OF

June 30,'55

The
of
a

First

National

York

New

opened

branch in

new

City

its

Bank

July

on

5

15-story

own

office building at Sao Paulo, Braail, to better serve Brazilians and
Americans

traveling

jnida

cilities

this

to

Paulo.

section

Sao

of

The bank will occupy five
the building. First Na¬

i'loors

of

tional

City

has

59

branches, including
zil of which two

overseas

in Bra¬

seven

has

noyv

Delker,

of Mrs.

Trust

Company

total of 20 women of¬

a

2,519,987

—

Cash

YORK

NEW

BANK,

June 30,'55

Mar. 31,'55

.6

Deposits
Cash

S.

Loans

478,116.357

&

480,653,746

752,458,400

665,387,531

23,121,419

21,123,035

Standard
ltd.

of

June

28

Bank

Agency

of

London

that

it

Africa

announced

had

on

advised

been

by the London office that due to
increased

business

territories in

TRUST

activity in the

which the bank op¬

issue

2,000,000

shares

Total

1.561,462,333

1,574,204,661

1,336,031,314

resources

$

1,406,781,695

Deposits
Cash

banks..

U.

376,577,883

Loans

342,969,009

709,720,418
20,831,714

the

paid-up

ital of 5 million shares of

be

cap¬

£2 and

£ 1

paid, and 2 million fully paid
of
£1, making the total
capital
subscribed
£14,000.000.

held

of

total

paid-u.p capital will be
£9,000,000.
The new shares, it
is added, will be offered, by way
<of provisional alloment, at 35/—

each
the

to

shareholders of record

close

in

1955,

business

of

the

shares for

ratio

June 30,'55

Total

distinction

and

£1

two

28,

new

shares held, with¬
between the
£ 2

seven

out

of

shares in
C

/Col.

Cashiers

T.

Brennan,

Branch.

New

John

Branch,
Park

THE

L.

Chair¬

Barber,

Pacific R. R. Co., has been named
to the Board of Directors of Co¬
lonial

Trust

York, it
23

Company
announced

was

by Arthur S.

dent

of

the

Davis is

line

a

&

Chain
water

New
June

on

Deposits

Col.

company.

Corp.,
American
Co., Inc., Bright-

Cable

Paper

Co.

and

Michigan

Chemical Corp.

GUARANTY

*

*

TRUST

-

June 30,'55

;

Mar. 31,'55

$

Total

Deposits
tash
and

Street

J.

Callan,

lrom

U.

S.

Loans

603,084,329

750,042,509

discts.

1,408,320,980

1,380,542.059

104,867,944

102,840,648

$
Total

$

2.890,845,800

BANK

S.

823,837,655

857,110,206

discts.

919,756,686

860,014.297

43,361,846

41,291,876

Govt,

Loans

&

Undiv.

MANHATTAN

NEW

Cash

resources

S.

curity

JJC

by

trust

the

.

823,837,654.79

.

.

Mortgages

71,971,687.78
173,439,982.83

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

J.

.

v

.

4,511,700.00

37,115,14^9

.

919,756,686.34
27,592,925. C 9
17,944,115.22

..........

.

Liability for Acceptances

.

interest and Oilier Resources

20,148,421.44

.

9,373,718.87

.

.

.

$2,890,845,800.28

Mar. 31,'55

122,498,975

Capital (2,519,500 shares —$20. par)

>38,005,210

Surplus

Undivided

86.045,779

81,221,933

3,156,405

12;263,32T

12,321.580

12,016,751

profits.

J.

*

M A III L I T I E S

COMPANY,
INCORPORATED, NEW YORK
MORGAN

P.

&

June 30/55

Total

Mar. 31,'55

Deposits
Cash and

due

S.

.

.

.

223,076,450

196,211,003

193,751,846.10

21,007,287.93
2,015,600.00

.

.

Liability

as

Endorser

on

t

.

21,456,052.61

Acceptances and Foreign Bills

1,629,699.65

Other Liabilities

Deposits

'

20,435,670.81

782,530,300

2.630.549.613.18

.

..#•♦•••••••••••

$2,890,845,800.28

189,910,960 223,585,490

discounts

327,634,577

304,354 531

profits.

&

Payable July 15, 1955

$

.

.

secu¬

holdings—

Loan;

878,310,106

from
——

Govt,

rity

$

830,322,246

___

43,361,846.10
Unearned Discount, Interest, etc.

-v;,-.

Outstanding Acceptances

735,581,016

resources

$ 50,390,000.00
100,000,000.00

.

Undivided Profits
Reserves for Taxes,
Dividend

12,832,911

12,143,061

0:her Securities carried at $133,349,311.15

United States Government and
secure

NEW

YORK

TRUST

CO.,

June 30.'55

Mar. 31,'55

Total

Cash

due

S.

Govt,

are

j:led°cd to

&

1.612,671.157

64,553,729

of

Ruth

E.

was

announced

C.

Flanigan,

Delker

company

on

in

came

1935

July
the

and

is

is

a

past

113.842,760

203,271,456

362.259.^65

MARINE
OF

Transcription Supervisors As¬

7,005,632

York State Federation of Business

Professional

Women.




With

BEINECKE

.

„

„■

.

MIDLAND

NEW

CO.

TRUST

Hutchinson Co,

and

due

S.

rity

ALVIN 0. BKUSII

Loans

151,495,993

119,506,709

110,201,019

112,427,293

discounts

230,918,949

214,678,532

profits.

7,789,060

7,560,576

_

&

Undivided

CHEMICAL

EXCHANGE

NEW

s
resources

Deposits
Cash

U.

New

KENNETH

S.

Govt,

&

Undivid.

C.

!

York

RICHARD

City

MacLELLAN

F.

HAROLD V. SMITH
Chairman, The Home Insurance Company

Company of America
JOHN T.

Chairman

MADDEN

L. A. VAN

f

BOM EL

National Dairy

President, Emigrant Industrial

Dana Corporation

Chairman,

Savings Bank

Products Corporation

HENRY C

JOHN P. MAGUIKE

HORACE C. FLANIGAN

JOHN M. FRANKLIN
president, United States

gforge

v.

YON ELM

Iloiio/ary Chairman

President, John P. Maguire & Co., Inc.

President

,

ckohge g. walker

Mclaughlin

/ ice Chairman

President

Triborough Bridge and Tunnel Authority

Lutes Company

Electric Bond and Share Co.

Mar. 31/55
s

2,855,063,936

due

banks—

curity
Loans

3.009,760,216

2,755,473.132 2,582,211,612

and

from

OF

HAROLD

T hacker & Bar tie it

YORK

June 30,'55

Total

BANK

(hail/nan

JOHNSTON

President, George A. Fuller Company

secu¬

CORN

L.

President, United Biscuit

CHARLES A. DANA

holdings...

Govt,

OSWALD

Simpson

415,543,166

from

banks
U.

463,177,956

Piesidi'ut, Sciunton it Lehigh Coal Co.
WILLIAM G. RARE

johnston

Trust Committee

LOU li. CK AND ALL

$

504 960.095

457,614,958

resources

Deposits

L.

Director, Phillips Petroleum Company

CLINTON K. BLACK. JR.

Mar. 31,'55

$

Total

GEORGE J. PATTERSON

President,. Gerli & Co., Inc.
john

Chairman, American Home

YORK

.

Sperry and

President, C. R. Black, Jr. Corporation

4

K. PALMER

Director, Cluett Peabody & Co., Inc.

Corporation

J.

Products Corporation

Nevy York and

a mem¬
ber of both the National and New

EDWIN

344,964.097

7,523,232

profits

in

President of

Pictures

CMESLFY

Clyde Estates

Paramount

PAOLINO GERLI

Presi¬
to

President,

Chairman, The

4

Assistant

Horace

She

262,885,771

1,701,666.145

68.382,004

an

Mrs.

766,432,816

secu¬

discounts

permitted by law.

or

III IK E C T O II S
JOHN GEMMFI.L, JK.

BALABAN

from

holdings...

Loans

868,253,698

202,130,924

and

800,103,832
206,929,403

resources..._

Deposits

2,018,131,2 40

3,106,360,183 2,974,014,748

Y.

BARNEY

U.

BANK,

N.

required

public funds and trust deposits and for other purposes as

Mar. 31,'55

June 30/55

appointment
as

sociation cf

and

.

...

Customers'

ifi

secu¬

charge of its Transcribing Depart¬
ment.

.

.

159,897,872

discts..

&

THE

discts.

New York

dent.

Oilier Securities

lrom

holdings-

Undivided

Manager of
Manufacturers Trust Company of
7

.

.

48,498,519

due

Govt,

S.

Cash

The

35'

735,157,759.03

$

U. S. Government Securities

128.833,278

rity

1,803,126,521

__

profits.

Delker

671,751

page

IK ES OURCES

Cash and Due from Banks

166,926,172

se¬

holdgs.

&

Undiv.

on

June 30, 1955

54,313,335

and

rity

due

banks

Govt,

Loans

Continued

FARMERS TRUST COMPANY,
NEW YORK

7.421,809,650 7,596,575.718
6,712,185,361 6,865,133,336

______

and

from

—

56.078,400

Undivided

U.

of Condition

2,669,484,067

resources

Loans

YORK

June 30,'55

Cash

Statement

2,641,050,349

BANK

THE

CHASE

Deposits

31,218,818

702,792

company

trust

discts.

banks

Total

36,754,881

profits.

Undivided

manufacturers

Slock of Federal Reserve Bank
$

se¬

profits.

THE

discounts

&

1,372,303

Banking Houses

714,285,712

holdg-i.

1,561,319

1,747,791,263

Deposits

due

banks..

curity

profits.

Undivided

Loans

48,698,120

2,539,246,511

785,157,759

and

from

U.

4,762,314

4,868,936

47,107,538

58,972,821

and

OF

2.798,205,348

2,630,549.632

resources

Deposits
Cash

profits

50,063,433

discts..

8,902,37G
38,386,733

$

Y.

Mar. 31,'55

rity holdings
Loans

undi¬

9,546,671
38,353,704

secu¬

holdings

rity

secu¬

31/55

80,712,940

from

due

Govt,

S.

se¬

banks

CO., N.

June 30,'55

22,546,415

Govt,

June 30/55

U.

TRUST

43,829,754

24,928,948

S.

1,719,056,930

&

Total

,»j

MANUFACTURERS

43,310,331

discounts

and

U.

Mar.

Mar. 31,'55

$

A

vided

holdings—
&

U.

84,246,565

.

banks

holdgs.

se¬

profits—

36,772,948

CO.,

$93,055,588 $87,855,613

resources

Loans, Bills Purchased and Bankers' Acceptances

698,374,836

784,031,184

Cash and

38,245,489

Total

secu¬

Slate, Municipal and Public Securities

CITY

*

holdgs.

&

Undiv.

rity
Loans

Surplus

Govt,

Accrued

2,542,004,971

banks—

126,630,564

Mortgages

jJ;

due

Govt,

curity

S.

*'

from

due

U. S. Government Insured F. H. A.

3,020.375,779

2,521,874,341

______

137,311,222

and

1,662,946,6.72

$

3,002,716,477

resources

Cash

1,623,936,191

banks..

Undiv.

U.

COMPANY, N. Y.

Deposits

Deposits

from

TRUST

;

banks

*

15,520,943

147,856,183

7,082,386,485

Kleeman, Presi¬

trust

76,181,950

11,236,659

due

AND

YORK

June 30,'55

$

161,959,460

resources

6,250,879,365

Govt,

CITY

4

BANK

Mar. 31,'55

$

72,810,395

Cash and

June 30,'55

Total

6,174,785,823

curity
Loans

4

NEW

NEW YORK

OF

profits-

S.

4

FEDERATION
NATIONAL BANK

$

James

YORK

due

director of General Ani¬
Film

&

of

U.

1,329,853

14,425,284

*

*

6,855,988,459

—

and

from

18,168,61&

1,366,047

First

Branch.

NATIONAL

resources

Deposits
Cash

14,307,420

Undivided

Cashiers

42nd

Eugene

Avenue

Total

discts..

profits.

Loans

47,116,711/

14,445,284

*

34th Street

Assistant

and

FIRST

are

June 30/55

Davis,

16,595,033

and

52,875,929

59,041,442

surplus.

10,390,809

secu¬

16,985,544

49,643,542

discounts

&

Govt,

holdings

rity

holdings
&

S.

from

1

Street Branch,

and William W. Lowe,

NEW

of the Missouri

rity
Loans

U.

secu¬

43,333,307

7,693,293

due

Assistant

two

42nd

issue.

Colburn

Govt,

and

banks

appointed. The As¬

were

*

of the Board

S.

Mar. 31,'55

110,463,621

of the

The

of

sistant Vice-Presidents

are

Cash

37,946,259

"

$

man

U.

CORP.,

110,160,278

resources

Bank of New York

at

June

on

51,015,843

YORK

July 5 two Assistant Vice-

on

shares

The

187,,662,806

due from

Dec. 31/54-

$42,020,646 $46,989,710

resources

Deposits

19,224,778
.

meeting

Directors

Presidents and

A.

Total

44,952,537

COMPANY,

YORK

620,283,230

4

regular

National City

will

announced,

TRUST

June 30,'55

$

1,568,481

4

se¬

4

At

UNDERWRITERS

Mar. 31,'55

189,222,695

and

banks

63,694,847

1,600,215
*

445,395,005

discts.

&

Undiv.

69,428,022

discts..

profits.

373,921,397

holdgs.

Govt,

issue,

is

'•»' '

profits.

S.

curity

Board

it

BANKING

SCHRODER

£ 1

of

Cash

37,286,385

due

and

from

each out of the authorized capital
which is
£15,000,000.
The new
added to the present

Dec. 31,'54

30,'55
$

erates, the Directors have decided
to

YORK

NEW

COMPANY,

of the

South

Deposits

banks

Jun

York

HENRY

banks

IRVING

New

0,13±,2y0

$

discts.

CO.,

222,280,679 220,260,093

resources

•!'

se¬

profits.

and

34,847,296

34,315,425

^

J.

394,660,141

476,863,440

&

YORK

$
Total

GRACE

holdgs.

Undiv.

6,295,5o8
•!'

NEW

banks—
Govt,

curity

1,469,726,578

HARRIMAN

NEW

Capital

1,661,744,579

1,641,155,840

101,642,738
220,599,968

*

due

and

from
U.

1.839,137,611

resources

107,910,901

110,015,280

profits.

37,026,057

NEW

214,143,188

discounts

Undivided

Loans

.

holdings
&

from

holdings

Undivided

June 30,'55

secu¬

$

$

Total

Loans

133,878,429

Govt,

rity
HANOVER

THE

U.

The

S.

2,513,310

*

136,489,083

secu¬

$

lrom

banks
U.

*

Mar. 31,'55

429,263,236 403,113,028
due

and

BROTHERS

484,484,246 461,786,743

Deposits

in Sao Paulo.

are

resources

*

due

Govt,

4

$
Total

ficers.

Ave-

on

Ipiranga, the new quarters
bring expanded banking fa¬

will

appointment

Manufacturers

doing

or

business abroad. Located

the

S.

YORK

NEW

BROWN
'

and

$

148,008,077

banks
U.

rity

#

A

Mar. 31,'55

$

undi¬

and

BANK

Of NEW YORK

150,107,824
138,305,541

resources.—

Deposits
Cash

secu¬

NATIONAL

COMPANY

June 30,'55

46,529,621

discounts

Surplus

S.

se¬

STERLING

TRUST

Total

from

holdings—

622,057,597

holdgs.

&

due

banks

banks—

Govt,

curity

Bankers

and

OFFICERS, ETC.

S.

Cash

THE

Y.

Mar. 31,'55
$69,989,005 $69,765,770
63,084,596
62,854,074

___

Deposits

1,930,954,769

due

N.

June 30,'55

-

resources

2,349,905,896

and

from

CONSOLIDATIONS

-

Total

^

2,644,380,603 2,179,603,608

Deposits
Cash

SCHRODER TRUST COMPANY,

Mar, 31,'55

$

15

817,398.631

724,203,971

se¬

holdgs.

658,519,235

648,114,025

di ets.

1,137,352.006

1,051,093.636

profits

22,973,446

20,901,103

Head Office: 55 Broad Street,
MOKE THAI*

New York City

IOO HANKING OFFICES l!ST OH
Member Federal Deposit,

KATE IK NEW YOIKK

Insurance Corporation

'

16

The Commercial and Financial Chronicle

(76)

At Conclusion of Florida

Aluminums Do Well

Turnpike Authority Financing

Aluminums

did

of

well,

.

.

points

General Dy¬

away.

also

namics

oc¬

Thursday, July 7, 1955

.

little

showed

in

..jr. "r/rr.

casionally ^helped by a bit of
strength in the copper section.
Reynolds Metals continued to

the way

offer

the

of the

some

of trading interest.
if.

*

Time

wilder gy¬

if

out

ran

on

few of

a

specialties that have been
rations, fat runups nipped wonder-workers recently,
rather
hard
by subsequent none harsher handled than
This issue
profit-taking.
Alcoa and Evans Products.
Aluminium, Ltd., were gen¬ soared from a low this year
erally in good form with the of less than $24 to a high of
latter

finding

it

somewhat $72 before it ran out of steam.
high in a Its gain last week alone was
better than $16 but this week

easier to extend its

continuing
'

process.

'

V

V

;

fell

it

'I*

into

least

at

air

one

*

Monsanto

Chemical

handful of the
able to keep pace with du¬ gain was whittled away rather
Pont to a more moderate de¬ rapidly. I/rS. Hoffman which
gree and not entirely as a had an even more spectacular
matter
of
mere
sympathy. 1954-55 rise was also roughly
Talk of

a

Viscose

pocket and

was

Monsanto-American

handled

partly responsible for trader

LEFT TO RIGHT: T. II. Boyd, Blyth &

Co., Inc.; Thomas B. Manuel, Chairman, Florida State Turnpike
Turnpike Authority; Wilbur M. Merritt, First

Authority; Charles Commander, Member, Florida State
Boston Corp.;

Sullivan,

James B.

Sullivan, Nelson

The Florida State Turnpike Au¬

thority, headed by Colonel Thomas
B. ; Manuel,
chairman,
received
York July 1, for

payment in New
the

pike

$74,000,000
revenue

public sale

bonds

Florida

derwriting

were

offered

June 7, 1955. The

on

sold to

were

Turn¬

bonds, series of 1955,

The bonds

due 1995.
at

of

a

national

un¬

headed

by

syndicate

The First Boston Corporation.

& Goss and Robert Gardner, Reynolds & Co.

The total funds received

Authority

a

as

bonds

result of

Chairman

by the

the sale

that

Manuel

first segment

northward

announced

the

were

running from Miami

to

Fort

j

Pierce of the

Sunshine State Parkway.

two construction
to

receipt

and

let

of

contracts, subject
the bond proceeds,

additional

contracts

rapidly

possible.

as

as

in

were

wide
santo

both

issues

able to post

gains at

bit

a

will

be

accurate.

Televisions

more

Televisions

Act

Badly

were one

of the

to

where

and
some

Mon¬

times.

proved to be

susceptible

Turnpike Authority will
$73,365,376. promptly begin its construction
activities.
The
ground breaking
These funds are being promptly
ceremonies took place on Monday,
reinvested
temporarily in U. S.
July 4 near Fort Lauderdale, with
Government Obligations, and will Governor
LeRoy Collins turning
be utilized as needed to pay for the first spadeful of ground.
The
has already awarded
the construction of the 104 mile Authortiy
the

of

special situation
foundered occasionally. :

that

they

Rail

Mo-Kan-Tex

another

was

interest:

occasion^ The pre¬

on

of

at least ferred

merger-was

a

profit-taking,
poorer
acting groups with
particularly since its price
good response by Zenith to
was a bit
optimistic compared
the hopes of the pay-as-youwith Viscose if the rumors of
see advocates running out of
a
two-for-one deal are
any¬

near

strength rather rapidly

Allied

the

Chemical, however, kept the

of

rest

the

and

makers

set

section from being idling through much ne¬
glect. Admiral was rather
completely buoyant by re¬
consistent in backing to new
verting to its recent habit of
lows and Radio Corp. was in¬
lagging when the others were
clined to lag even in the face
doi^ng better. There was little of
good market strength.
drastic about it, however.

chemical

if

if

if

;•{

ities have been

even more un¬

Airlines

hardly dis¬
and, on average,
Desultory action by the airtinguished and some stirrings
backing and filling crafts kept the defense issues
in the textiles that hinted at
for what now amounts to a cautious and sedate despite a
a
possible quickening of in¬
few momentary runups by an
period of four months.
In
By WALLACE STREETE
terest
came
to
naught.
A
short, it has been strictly a issue here or there in the
rather odd deal in the works
blue chip, or industrial aver¬ group. For example, Babcock
The 450 level so
for Textron to take over the
widely, if points before inspiring profit- age bull
& Wilcox
was
able to put
swing.
cable
business
of
Western
illogically, picked out as at taking, with the gamut of ru¬
❖
*
*
on
a
spirited demonstration
least a temporary
Union was greeted phlegmatpeak for the mors running from its own
and
then
that. made
The holiday had little mar¬ now
bull market was
penetrated stock split to projections of
ically by the market. Food
ket influence either way, due it an occasional favorite after
shares offered little of inter¬
decisively late last week. But, added value through a higher
its recent correction. Newport
largely to the settlement of
far from
est and building equipment
bringing on a reac¬ dividend and a stock split in the
steel strike on the eve of News
Ship, however, still
issues were largely immune
tion, the industrials in this General Motors of which it
showed a willingness to sag
the shutdown which
kept the
week's
stock
a
famous
market
to the high pace of the build¬
went holds
20,000,000list buoyant and in position under light pressure that has
right on with the task of con¬ share bundle. Through it all,
industry, all of which
carried it around 20 points ing
to extend its
gains once the
adds that much more evidence
quering the 460 level under the stock that was viewed
traders were back at work under its peak for the year to
the leadership of
of the selective nature of the
the blue with a skeptical eye generally
this week.
Steels were fa¬ about
midway in its 1955
chips which have such a big as it worked toward the 200
buying and the concentration
vored at least temporarily be¬
hand in jacking up the aver¬ level has now reached a point
range. Chance Vought seemed on blue chip quality.
concerned

THE MARKET... AND YOU

have been

cause

where 250 is

of

the

excellent

earn¬

definitely out of favor in the
being nibbled at.
ings reports due to be issued
was
air group and was more than
equally
this month plus expectations
About the best justification buoyant, if less spectacular,
that the prompt rise in steel 30 points under its year's top
advanced for selecting 450 as and also continued to make
prices after the wage settle¬ with the low only a handful
a
target when such predic¬ overall progress of a good na¬
ment will assure good reports
tions were rife
ture in distinct contrast with
age.

❖

if

*

the

aimless

actions

of

other

for the rest of the year

Motors, Bethlehem Steel
Steel.

In

"name" stocks

fact,

were

ing the bulk of the

still

carrier

and

the
do¬

work to

keep the advance going.
❖

❖

*

.

DuPont's

feats




dozen

which

"con¬

the industrial break¬

through to a historic peak bv
a
one-day advance to a high
for

a

a

no

disposition

more

than the
Lion Oil

a

and has gains.
to

ex¬

high importantly in

period that

ed to

far

quarter century but did high

it in half-hearted way

tend the

included
a

section

firmed"

shown

Feats of DuPont

runups of more that

not

do

coincide

time

expressed,

in
at

any

those

of

the

with

Chronicle.

They are presented as
those of the author only. 1

now

orderly,

however,

sprinters elsewhere.

forged well into

ground

on

some

The "Standard"

going

was

150,000 SHARES

new

,

.

MOTEL CORPORATION
COMMON STOCK

Par "Value

Motel

Tremont

acquiring,
motels

Corporation

constructing and
various

at

Eastern

Seaboard

modern

motor

cut

and

at

of

the

of

cents

has

the

sites

United

near

been

operating

desirable

courts

New

10

Per Share

$2.00

price

Copies

the

organized
a

chain

along

States.

Yale

Bowl

share

per

for

of

the

motor

purpose

courts

of

and

highways of the
present it is operating

major
At
in

New

Haven,

Connecti¬

Castle, Delaware.

Offering

Circular

may

be

obtained

without

charge

from:

fair

group

generally acquitted itself well
when the

'

TREMONT

BERRY & COMPANY
INVESTMENT

SECURITIES

good but

has stretch¬ the issues had trouble word¬

couply of weeks. Util¬ ing through the old highs.

240 W. FRONT STREET,

this

necessarily

until

issues, including

that of declining demand, or the usu¬
have had their run
by then, American Telephone which ally tardy full effects of a
with investor interest
hasn't done any better than
turning
new wage spiral, are felt.
to the
secondary issues which back and fill in the seven con¬
*
$
$
could have their
fling without secutive weeks of good gains
Oils and Coppers Spotty
making any important con¬ by the industrial average.
-•is
*
*
Oils had spotty support and
tributions to
advancing the
the non-ferrous metals were
average. But no less than the
Rails Still Lag
blue-blood leader, duPont was
also in occasional demand to
Moreover, there has still
the big feature of the
week,
been no important contribu¬ provide bright spots in other
aided by such other tradi¬
tion to the advance from the sections of the list.
tional bellwethers as General
They were
S.

views

article

months

ago was the expectation that
the top grade issues would

U.

[The

General Motors

many

were

PLAINFIELD, NEW JERSEY

Ptainfield 5-4433

Volume

Number 5444

182

.

.

The Commercial and Financial Chronicle

.

(77)

Long Island Lighting
Offering Underwritlen

Securities Salesman's Corner

The

Lighting Co.
offering its common sharehold¬
ers of record July 1, 1955 rights to
subscribe to an additional 624,170

By JOHN DUTTON

Get to the Point

shares at $20.50 per share

common

This

I

week

going to talk
that is so vital

Fund, or any other Fund. Natur¬
about something
ally, I passed his. Fund by and
in saleswork that I believe that if went back to my immediate task.
it was practiced diligently by all
Don't Overtalk
those who are conveying ideas to
In the days when I was trying
others, the results in terms of
learn
the
agreements reached would be so to
technique of in¬
enhanced that they would never tangible
selling
(and
you
can
again go back into their old habits learn it, don't make any mistake
about being a born salesman)
©f overtalking about side issues
I
and extraneous matters. Come to used to try and nail down each
the point, say your say, get it over point as I went along. There is a
with and give the other fellow a school of salesmanship that says
chance. That is all there is to it, you should build up a "yes" atti¬
but what a difference it will make tude on the part of your prospect.
make
a
in your sales results if you follow You
point
then
say,
"isn't
that
this simple procedure.
right
Mr.
Jones?"
Sometimes
Mr.
Jones
was
just
Find The Issue
cantankerous and he'd say, "No,
so."
Then I was
There is one main, central, all I don't think
motivating reason why people will way off in left field. It was the
do a thing. There are side issues, same idea as a lawyer building a
in
front
of
a
but these are unimportant con¬ case
jury.
The
siderations. A man may buy a new trouble with this kind of selling,
house because he wants to live in in my opinion, is that it is too
ja

am

higher income neighborhood, or

his

family has increased, or the
plumbing is bad in the one he
now
owns, or he would like to
have

shade

some

number
there

other

cf

is

any

or

But

reasons.

all important reason.

one

thinking, real estate

The creative,

will sit

salesman

trees,

this

with

down

prospect and let him tell him what
is on his mind—then he'll go out
and show him that house which he

will

knows

the

bill.

close

come

He

filling
waste
time

won't

showing houses that
wrong
neighborhood,
small.

to

in

are

burden his

He won't

the
too

are

or

pros¬

lot of extra talk about
service his firm can render,

pect with
the

a

the terms of

ber

satisfied

of

clients

He'll

served.

has

mortgage, the num¬

a

house and in the

that

right

the

show

he

majority of

cases

he'll sell it.

nice young man
office and he told

into my
he was from

came
me

I

do

but

of the Mutual

one

to
see
as
representatives

try

wholesale
can

times

at

On

out

started

to
re¬

garding the comparative perform¬
his

of

ance

others.

Fund

tried

I

look

could

tell

to

the

over

some

over

that

him

I

figures if he

would like to leave them and that

if

he

time

would
and

mine to

available

his

devote

discussion

a

of

facts which he thought might

any

place his Fund in a special cate¬
gory where we could consider us¬
ing it for offering to certain of
our
clients
and
prospects,
he
should do so. Despite this gentle
hint,

and

busy

a

ator to disconnect for

he still insisted

which I

phone

polite enough to tell

was

on

my oper¬

10 minutes,

going back to

his facts and figures.
If he would have asked

few

a

he

questions

discovered

for

have

could

toward

attitude

our

me

Mutual Funds, and

whether or not
might have been able to use
a new Fund. He
might also have
been on sounder ground with me
we

if he

have

would

taken

one

look

graying hairs of mine and
realized that possibly I might have
heard his stereotyped story from
at
least
a
hundred
wholesale
at those

representatives of Mutual Funds,
and

some

Basic

of

it

American

North

went

back

to

Shares,

Trust

Industry Shares,

and some
in 1929.
Finally, I had to call the inter¬

of the ethers way back

view to

of

waste

had
he

a

to

halt. It
my

give

never

I

believe

"Yes

that

attitude."

you

was

a

complete

his.

time—and

his

sales

discovered

He

talk—but

the

reason-

July

18,

1955.

underwriting group headed
W. C. Langley & Co.; Blyth

by
&

Co. Inc.,

Corp.

will

and The First Boston

purchase

unsub¬

any

scribed shares.
:

Net

to

proceeds

be

received

from the sale of these shares will
be

used

for

curred

plant.

to

bank loans

repay

construction

Construction

of

in¬

utility

expenditures

for the period May 1, 1955 to Dec.
are

000

I

might

want

to




sell

his

Net income

1955

electric
gas

common

The
and

writing

guous

members
group

&

Corp.;

include

the

contin-

peninsula

Rockaway

in

Mr.

First

under¬

Tokay

viously

with

bers

B.

Matthew

Weld

C.

York

Co.,

&

are

E. W. Wedbush

mem¬

and

liam & Co.

This

is

Exchanges. Mr. Searles
previously with Harris, Up-

535

business

from

Gayley.

.

to

hind

it

a

a

cordiality

your

pros¬

dynamic quality be¬

a

because

both

it

that

assumes

Bankers Trust company

mission, and the
conference between you becomes
a mutual sort of
thing rather than
you are

effort

suade,

on

part

your

convince,

home

is

I

to

NEW YORK

per¬

hammer

and

agreement. I

an

Here

day

on a

example. The other

an

interviewing a young
lady who had saved a modest sum
and
was
looking for an invest¬
was

few ques¬

a

tions and this is what she told
She

was

ried

soon.

expecting
She

before

once

were

of

to

had

of

one

her

get

been

first

riage. She wanted

mar¬

diffi¬

the

$

Cash and Due from Banks

622,057,577.26

DIRECTORS

main

broken

U. S. Government

530,102,951.67

Securities

mar¬

investment

an

ASSETS

me.

married

financial

and

CONDITION, JUNE 30, 1953

CONDENSED STATEMENT OF

ALEX H. ARDREY
Executive I ice President

Loans

.....

......

.

1,341,795,409.00

•

that would grow and also one that

she

would

her

future

have to

not

husband.

divulge to

Then

if

FfcANCIS S. BAER

n

President.

JAMES C. BRADY

marriage turned out satis¬
factorily, possibly later on she
might tell him about her hidden
There it

egg.

silver platter.

was

right

I suggested

a

State and

Executive Vice President

67,423,401.99

Municipal Securities

her

second

nest

^

on

a

Mu¬

Other Securities and Investments

Realty Corporation

Brad u Security A

.

.

Banking Premises.......

•

•

etc.

26,176,199.89

.

.

.

Vice President

JOHN M. BUD1NGER

ELLSWORTH BUNKER
President,
American National Red Cross

Accrued Interest, Accounts

Receivable,

16,504,460.18

7,495,169.24

President

S. SLOAN COLT

tual Fund that had its investments
in Canada

the

and

earnings
The

dends.

that reinvested all

and paid no divi¬
increase
in
value

dividends

from

to the

acrue

reinvested

would

liquidating value.

In

this investment she would not

the

WILLIAM

B. GIVEN, JR.

Chairman,

Assets

American Brake Shoe Comi>aiiy

Liability

on

Acceptances

.

.

.

8^,643,50000

Deposited Against Bonds Borrowed.

$2,644,380,602.71

Chairman,

JOHN W. HANES

24,181,933.48

Finance Committee,

Olin Mathieson Chemical Corporation

re¬

ceive

Customers'

E. CHESTER GERSTEN
Executive Vice President

dividend

any

checks,

shares could be kept in safekeep¬

ing

her

by

mother,

ABC from there

it

and

Vice President

ORIE R. KELLY

LI ABILIT IES

LEWIS A. LAPHAM
President and Director,
Grace Line, Inc.

was

Capital (par value $10 per share)

WARD MELVILLE

on.

President, Melville Shoe Corporation

One question

"Was it
safe?" I said, "Yes, I thought so."
She replied, "Alright she would
the

make
have

to

up,

investment."

into

go

arguments to
the

came

Fund.

didn't

I

long series of

a

the safety of

prove

If

necessary I
could
brought out a few simple
points that would have been help¬
ful
in
building
confidence.
I

have

didn't

have

do

to

this

because

knew that she wanted to make

investment
that

that

would be

would

grow

I

an

and

convenient for her

to hold under these particular cir¬

She

cumstances.

didn't

about

safety

minor

consideration.

assumed

this

that

—

was

investment, not

a

worry

was

I

only

knew

a

,

$ 40,299,500.00

President and Director,

conservative

.-.~~

150,000,000.00

Surplus

Kern County Land Company

Undivided Profits

Keic Jersey

PAUL MOORE

Hew York

THOMAS A. MORGAN

Dividend

HENRY L. MOSES
Partner, Motet and Singer

...

45,008,491-15

Payable July 15, 1955

•

.

•

•

$

2,349,905,896.00

Deposits

Chairman of the Board,

Reserve for Taxes,

Olin Mathieson Chemical Corporation

DANIEL E. POMEROY

Accrued Expenses, etc.

Sew Jersey

Acceptances Outstanding
B. EARL PUCKETT
Chairman of the Board,
Allied Stores Corporation

PHILIP D. REED

,

Less Amount in

^

Liability Under Bonds

Chairman, General Electric Company
WILLIAM T.

ifAYLOR

Portfolio

26,065,706.97

3,386,446.87

Borrowed

8,643,500.00

....

Vice President

Other Liabilities
B. A. TOMPKINS
THOMAS J.

20,279,824.15

.

$29,452,153-84

WATSON. JR.

1,558,216.94

...♦•»••*

Kew York

$2,644,380,602.71

President,

International Business Machines Corporation

a

JUSTIN R. WHITING

Assets carried at

Chairman of the Board,
Consumers Power Company

$140,575,936-53 on June 30,

1955. were pledged to secure

other purposes.

put some money that would be out
of the reach of any

husband's
them.
her

a

ideas

Husband

tidy

sum;

going to find it

of her future

should
number

he

have

one

cost

number two

was

a

bit different.

That's what I sold her!

235,307,991.15
2,619,467.50

•

JOHN M. OLIN

she

wildcat specula¬
She wanted a safe place to

tion.

GEORGE G. MONTGOMERY

OF

THE

FEDERAL

DEPOSIT

INSURANCE

CORPORATION^

in

a

offices

feeling
in your inter¬

yourself and

N.

Opens

Wedbush is engaging

exceeds 1,500,000.

better

a

LOS ANGELES, Calif.—Edward

Mid¬

the

is

The

Secretary.

curities

it

—

Matthew

W.

served

D.

engaging in

Avenue, North¬

was

area

Corp. Formed

Officers

west Stock

The

&

Connecticut

Queens County (New York City).

on

pre¬

associated

Building,

New

was

Baker

Mezzanotte, President; LaFayette
Frankling,
Vice - President
and
Secretary; Genevieve D. Long,

Mo. Charles C.

Christopher

Trade

the

executive

securities business from offices at

Christopher

become

C.

of

ol

is
He

Amott,

WASHINGTON,
Matthew Corp. is

(Special to The Financial Chronicle)

Board

with

.

west.

has

Pratt

Co. Inc.

1526

Searles

W.

director of the firm.

Co.

With B. C.

formerly with
Corp. and Penn¬

was

Investors

William

Smith,

—

White,

and

R.

urer.
•'

& Co.; Glore, Forgan &
Co.; Goldman, Sachs & Co.; Harriman Ripley & Co. Inc., Hemp¬
hill, Noyes & Co.; Kidder, Peabody & Co.; Merrill Lynch, Pierce,
Fenner & Beane; Stone & Web¬
ster Securities Corp.; Union Se¬
curities

Arthur

sylvania Funds Corp.

the

of

KANSAS CITY,

and

for

Barney

property.

counties

M. Noble,
Thompson,
Vice-President; Norman R. Long,
Secretary; Frank Tokay, Treas¬

requirements.

Other

William

are:

President;

$9,515,000, equal to $1.28
share after preferred

was

dividend

for

supplies electric
service in Nassau and

Officers

in

of the company

for

$6,000,000

and

company

gas

Suffolk

$11,000,000

property,

property

for

per common

which

of

contracted

the twelve months ended April 30,

estimated at $84,000,$67,000,000 is for

31, 1956

from offices at 4309 Front Street.

of all the

New York State.

An

(EMBER

why

dwelling units

counties

Suffolk

and

amounted to about 35%

work, but it is

engender

can

pect. It has

an

on

(mostly single family)

Nassau

Population of the territory served

view that is based upon
between

causes

dry statistics

(EDT)

p.m.

Pa. —Pennsyl¬
vania Credit Union League is en¬
gaging in a securities business

out

wear

create what I would like to call

culties

and

case

the

all

me

3:30

at

These rights will expire

in

League

HARRISBURG,

work.

I

as

this

brief

his

tell

dotted line. It will

hard

difficult to

is

it

many

day I was quite
rushed, my phone was ringing
often, we had an underwriting
underway, and I was sitting at a
fairly busy desk. Despite all this
the young wholesale man pulled
so.

his

get

you

ten held.

share for each

one

homes

new

Pa. Credit Union

for

awarded

contracts

name

your

ment. I first asked her

The other day a

Funds.

and

the basis of

on

struction

prospect

labored and too stilted. You

yourself
before

Island

Long

is

is predomoninantly residential. It
is estimated that since 1950 con¬

17

deposits and for

se¬

at

18

The Commercial and Financial Chronicle

(78)

.

.

Thursday, July 7, 1955

.

•'j

1«.

erated

been

Problems Confronting
The Federal Reserve
ctgood" bank, which I assume all
of yours are, the examiner will
wot do this ordinarily without an
invitation, for he has been trained
to
avoid
crossing that shadowy
?.ine
between
supervision
and
management. Supervisory author¬
ities are no more anxious to in¬
vade the

province of management

than you are to have them do so.

Job

The

Acting

of

Having

a

it

more

with

is

its

discussing

progress

problems. But from the view¬
point of cosmic significance, the
Federal Reserve's job as the cenand

Some

Regulation of money and credit
was not the chief objective of the

lieard

I

you,

the

about

Bank

Inter-Agency

Examination

Jaave set

plete

com¬

and

of the best

Federal

financial

and

men

supervisory
outstanding

with

and

hankers

we

a

some

tl\e

forces

School

in Washington,
model bank,

up

with

utaffed with

:from

have

sure,

am

specialists

tion, in order to avoid unnecessary
economic setbacks and to main¬
tain

examining authorities

Worth.

testify

can

But

many

of funds to

its

to

cover

cannot for

lack

living expenses.
(Of course, the schooling itself is
free.) Every State Bankers Asso¬

ciation

should

of

provement

that

im¬

examining

or¬

it

to

see

the

ganization of its State is not im¬
peded

by the lack of

few

very

a

collars. It is also in your own in¬
terest to see that sufficient funds
are

available

to adequately com¬
examiners — men who

pensate

loday rank among the most under¬
paid, underrecognized specialists
in the country.
In its capacity as a bank super¬
visor, the Federal Reserve System
i.aturally gets involved irv many
thorny
problems
regarding the

has

and

be

to

come

clearly

more

over

past 30 years. The evolution of

here who

ditions
stretch

con¬

to

have

tip-toe to recollect the

on

lamp-lighter in Broken Bow, who
rode

around

stood

on

and

horseback

on

the saddle and the rump

around,

and consolidations; hold¬

Mergers

ing-company and branch banking.
U has been compelled to evaluate,
arid in some measure to govern,

the trends in American banking.
In

that

light the gas lamps
dirt

the

lit

opinion, governmental
fgencies have a duty to supervise
and regulate banks, their expan¬
sion and activities, not only from
the view of what

is

for the

good

banks, but also what is good for
the national economy. Safety of
deposits,
suitable
extension
of
credit,

provision

Banking
but

so

service,

are

petition—a

vital

safeguard
structure.

banking

does not

mean

four

crate

adequate

important,

is the preservation of com¬

sound

that

of

in

that

banks
a

we

must insist

continue

town

of a
This

that

to

op-

could

be

served

I

road.

with the automobile.

More than

a

defiance of heaven. The first

a

broadcasting station in this
try

Even
our

decade

a

coun¬

not established until 1920.

was

ago

among

could

endanger

soundness

of

the

in

the

fined
less

the

to

than

banks

—

a

was

stage,
still con¬

laboratories.

Today,
handful of our 14,000

four to be exact

deposits exceeding in
of the

was

experimental

physics

—

hold

amount

all

deposits in all of the banks

40 years ago.

But

gradually

have evolved

we

monetary policy designed to
keep a proper balance between

a

the volume and velocity of money
on
the one hand and the supply
of goods and services on the

other,
maintaining high
levels of economic activity and
employment while endeavoring to

with the view of

that

see

the

value

practices
the safety
bank

a

and

For

about

of

the

dollar

with

our

the

effective

and

powers

is

its

gard

decade

exercise

of

of the System in this

the
re¬

depositors, and, consequently, the
community itself. It does mean

suspended. This was
done, of course, in the interest of
assuring adequate financing for

that

the

competition

served

support

where

should

be

the

community
competition.

pre¬
can

that
can

was

tremendous
war.

see

But

cost

in

less

available

easily
to

mental

over-extension

be

threat of

a

credit

when

seemed

of winning
retrospect one

that if this had not been

take

of

time

credit.

the

banks,

one

with

supply

a

is another

and

matter.

and

a

necessitates daily

CHRONICLE

scrutiny.
able

and

the

at

Reserve

of

years

1926-1951 inclusive.

This beautiful set available

immediately.

Banks

safe

a

rocks and

course




Edwin L. Beck

c/o Chronicle, 25 Park PI. N. Y. 7

the

cause

avail¬
care¬

deter¬

actions

our

to

should

direction

should

we

These

the

are

grapple,

kinds

of

prob¬
must

to the best of its ability

with

and

have

—to

help bring about that under¬
standing.

no

aim

other

than

the

the

it dis¬

past, but when
it

errors

them

must

with

to

try

cor¬

and

candor

In my

been

experiences

of

cause

and

So

concern.

is

judgment no single factor
important to the American

Federal

is

terms

down

have

stretched

spots.

payments

dropped

out

The

of unemployed people is
cause for
concern.

second

and

duty

of

the

by

the

United

corrupt, timid, or biased central
banking system, misusing its vast
power for private gain or even

a

tive

industrial

long

run

spending. Our
is

powers

the

peak figure of 138—
with 100 a half-dozen

compared
years ago.

Economy do
direction, at

same
time, and at the same
speed. The laws of supply and de¬
mand make this
impossible. But,

in the

long-run, they tend to offset
other

and

work

out

as

a

fairly smooth rolling-adjustment,
provided the underpinning of the
economy

remains

single factor
far

out

is

of

sound

and

permitted

line

as

to

to

no

get

cause

a

I

to selfish

or

partisan ends.

on

their

individual

own

lives. As

particularly well
equipped to help them achieve
this understanding—to explain the
relationship of economic laws and
bankers, yon

institutions to the individual wel¬
fare

and

the

standard

of

living

leader

proximately the

same

as

After

two

States
of

of

Winston

it did

marked:

amount

goods and services today

or¬

was

Delaware on May 23,
1955, for the purpose of acquir¬
ing, constructing and operating a

ganized in

chain

of

various

at

along major high¬

Its principal offices are at

ways.

321

courts

motor

desirable sites

Millburn Ave.,

Millburn, N. J.

present time, Tremont is

At the

tor court located on Routes 40 and

13, New Castle, Del. These routes
the main
artery from New

are

York, New England and the Met¬

VV:;

v-'.

Plans hav£ been

D.

developed and

arrangements are now being made
to
acquire sites near Hartford,
Conn., and East Rutherford, N. J.,
to construct motor courts in

and

localities.

those

the

with

two

connection

In

obtain

to

negotiations

courts,

motor

projected

franchises from Howard Johnson's
Motor

Inc.

Lodges,

presently

are

in the final stages.

is

the

acquired by

they will be oper¬
the
medium
of

company,

ated

when

that

contemplated

motor courts are

new

through

wholly-owned subsidiary corpora¬
tions.
the

the

has

time,

present

following

Tremont
wholly-owned
Motor

Tremont

subsidiaries:

Courts, Inc. (Del.) Tremont Motor
Court, Inc.

(Conn.); and Tremont
Motor
Court,
Inc.

Hartford

New Walston Branch
Walston &

Co., members of the
Exchange, have
opening of a new
office at 21 East 44th Street, New
York City, with Richard F. GuinzYork

New

announced

burg

as

Stock
the

resident manager.

This is

the firm's third office in the midtown

area.

Mr.

Guinzburg,

past

16

the

30

invest¬
has

years,

the

for

Co.

&

years.

Newly
office

in

for

Bache

associated

the

in

new

registered representa¬
Costello, Henry
Greenburg,
Albert Holrnan and

tives

as

are

Stella

Charles

Kaplan.

are

ap¬

buy

Corp.

capital

working

business

United

will

for
Motel

and

reserves.

Tremont

with

re¬

it

motels;
and

been

people

kind

past four years the dollar has
—

acquisi¬

purchase furni¬
for present

to

ment

the

for

that

of the community and the nation.

stable

the

equipment

to in¬

order
upon

collapse of the others. Hence, it is
important to note that during the
mained

courts;

and

ture

of Federal
Reserve
System, they must un¬
derstand it. People should know
what it is, what it does, and how
it does it. They should know the
impact it has on the economy and

In

sist

the

with

the most effec¬

against the possi¬
bility of such a catastrophe is
public insistence that the Federal
Reserve
System
devote
itself
solely to the economic welfare of
all the people of the United States
free
from
self-interest, free
from subservience to any class or
group, and free from interference
aimed
at
diverting
its
great

con¬

production

connection

motor

bulwark

—

of

in

(Conn.).

popular acclaim.

sumers, as well as State and local

at

share.

tion and construction of additional

At

imagine greater

economic misfortune than to have

quarter of

business

conse¬

a

1955 is estimated at the peak rate
of $375 billion. Expansion in the

of

of

It is difficult to

In the

the

sancity and of

States."

hand, over-all eco¬
nomic activity is on an exception¬
ally high plane. The gross national

demands

of

like discharge
Supreme
Court

On the other

product in

per¬

to the American people as

a

in
keeps

always

intelligent and fearless

quence

inordinately
market

effectiveness

Reserve

much

as

and

stock

the

formance of its functions involves

and

been

of Tremont Motel

per

The net proceeds are to be used

It

"An

the

credit terms. Consumer credit
fluctuated to a considerable
and

than

Act, in referring
the System, commented:

to

housing field, which has been
stimulated,
perhaps
excessively,
by
government
guaranteesand

extent

more

integrity of its central bank¬
ing arrangements. Senator Carter
Glass, one of the authors of the

stilL are,

painful

$2

at

and

some
dis¬
quieting factors, is sufficient to
dispel any smugness on our part.
Agriculture
has
gone
through

a

10 cents)

(par
Corp.

board.

in

rect

However, the fact that there have

some

& Co., Plainfield, N. J.,
offering to the public an issue

Berry

has

economy

and

Motel Slock at $2

C.,
Miami,
Florida
and •» other
points along the Atlantic
Sea¬

of

been

Berry & Go. Offers

ropolitan East to Washington,

covers

judge. And,
will surely tell.

time

all of us — public
private citizens alike

the System has no supermen in it,
it will make some mistakes, as it

is

course,

to

up

country's economic welfare. Since

through the

we

is

It

servants and

be

lems with which the System

storms of the economic

successful

progress

position of
world leadership cannot long en¬
dure without having as its founda¬
tion a strong and dynamic econ¬
omy.
That cannot exist without
widespread understanding of its
essential ingredients — the what,
the how, and especially the why.

of

promptness.

How

has

of
credit

combed

continuously

the

must be for others to

easy

of

Congress,

course,

be

of

Our

operating a motor court on the
Turnpike,
West
Haven,
raising or Derby
lowering
reserve
requirements, Conn., near the Yale Bowl and
discount rates or margin require¬ other athletic fields of Yale Uni¬
versity. It is also operating a mo¬
ments.

seas.

still

Re¬

powers

information

must

whether

in

whether

the moment, seek to use this mass
of information and expert views

so

Phone REctor 2-9570

in

freedom."

re¬

and

is

expanding
or contracting the
supply of money
and credit; whether we should be
absorbing or providing reserves
through open-market transactions;

highly

to chart

The

us

and

be

throughout the country,

staff

to

mine

be taken

each

covering the

wealth

strength

of 150,000 shares of common stock

testimony,

or

And, of

fully

meetings of the

All segments of the
not move in the same

FINANCIAL

her

to

monetary developments must
subjected daily to unceasing

be

Board of Governors. At the Board

now

Canvas bound volumes of the

use

to

or

much

now,

apprising

earnestly

but

to

in considering pro¬

reports

views.

our

Deciding when

what actions should

and

gain,

solved

merger

a

Federal

Right

investment

through

of

credit adequate for

and

the

in

spent

the

and

hand, and defla¬
the other, and yet provide

on

score

Wisconsin

in

to

on

a

bank in Florida

System.
is

of

part of

a

posed legislation affecting bank
holding companies, bank mergers,

is obliged, we feel, to
action, within its
will aid in averting infla¬

power,

take-over
as

bank

a

serve

whatever

index

"FOR SALE"

ritorial

finance.

be called

may

membership

there
detri¬

a

The System

declines in defense

&

international

a new

admit

governments, has tended to offset

COMMERCIAL

in

ganize

eco¬

bouncing around. And the number

beginning
entry into World War II,
a

that

four

in

nomic progress, or to make

the newest of

present miracle medicines

still

competition

result

continued

can

remains stable.

to

desirable

be

to

Governors, the Open Market Com¬
mittee, and the Reserve Banks,
the wagon industry was still fight¬
wisely insulated by Congress from
ing a game though losing battle political strain and
pressures of

adequately and efficiently
by two, if the force of excessive
likely

seemed

country's

streak, to the enlargement of my
youthful vocabulary. At that time

and nuclear

my

the

we have a
capable and de¬
moted
experts who continuously
remember that only because one
strive to develop, for our use in
of my brothers once scared the
formulating policy, the essential
horse in the midst of the opera¬
economic significance of regional,
tion
and
caused
the
lamp¬
national, and international occur¬
lighter to fall and swear blue rences and trends. The Board of

of his horse to

as

volving

that

ever

for

Stating this power and*policy is
simple, but the execution of them

I

They
the or¬

from

way

«

•

nation arriving at the summit
world power, seeking no ter¬

a

of

between two great banks, and the
next
day an application to or¬

available when¬

more

not many

time.

the

of branches

flexibility and frequently to

make credit

prevailing

that

the

we

There

remember the

all

engage

steady and sustainable expansion.

can

of

comparison
are

indicate

the

be¬

now.

to

One day

conditions

the

tween

then and

tried

consider

money

little

Problems

operations,

economy

is

of

Consideration

policy, and reserve re¬
quirements. These tools have been

discount

the

adapt itself.
There

that

dinary bank supervisory problems
with which you are' familiar to the
chartering of a new corporation to

use

of

open-market

on

banking

problems
re¬
for
example,

tools

control:

tion

few people looked upon airplanes

—

tional

tion

to

Range

have

range

of its tradi¬
general
credit

jacket and made

made

Federal Reserve must deal.

strait

wartime

the

from

in

attributable

is

objective

^ideal" structure of the American

system

four

has

en¬

kinds of problems with which the

Strait Jacket

event, during the past
years the System has freed

part to changing economic condi¬
tions to which the System has had

to attend the school. Some of them

Have, and they

progress,

more

this

State

climate for eco¬

nomic

fort for the public good—these in¬
clude your own Carl Flora.

invited to send representatives

favorable

a

seen

the

All

System 40 years

Reserve

The necessity for such regula¬

ago.

who contribute their time and ef¬

f re

and service functions.

Federal

Wide

any

itself

economic

stability possible.

I

In

which

used

banking system of the
United States outweighs its super¬
tral

visory

and

or

the

to

vironment

Requiring

War-Time

in dealing

comfortable

and

to

Federal Reserve Freed From

that I

perhaps natural

ing,

tax < ourselves
and to borrow less; thereby

bank¬

in contact with commercial

feel

contributed

had

we

of

money.

of my life

most

spent

As

nation

a

as

1951, '52, '53,

'54. That may
indicate in some degree the effec¬
tiveness of System policies for, al¬
though
far
from
being
solely
responsible, they certainly have

minimizing the need for'mone¬
tizing the public debt through
"pegging" the prices of govern¬
ment
bonds,
which resulted in
creating a superfluous amount of

Bank

Central

if

—

willing

more

Speaking of examiners, I should
jnention that today they are being
trained
better
than ever before.
of

in

done, the inflation of the late 40's
could
have
been
greatly mod¬

Continued from page 11

the

world

has
free

Churchill
"There

is

world.

as

As

recently
no

the

wars

emerged

other

a

Sir
re¬
case

Henry R. Hayes
Henry Reed Hayes passed away
June

29

Hayes
the
tion

the

at

was

a

Investment
of

many

age

years

Mr.

Associa¬

Bankers

America.

Stone and

77.

of

former President of

was

Mr.
an

Hayes for

officer

Webster and Blodget.

4

of

Volume

Number

182

5444

.

.

The Commercial and Financial Chronicle

.

LETTER TO EDITOR:

forget that their interests
sumers

Public

Rights and Duties of Labor Unions

By OWEN ELY

Niagara Mohawk Power Company

however, the

power,

measured

•kwh.

Consolidated

It

revenues.

in

produces

more

*

'

-

Vj

/

•

important gas division which contributes about

an

18% of revenues. Due to conversion to natural gas and the
rapid
expansion of residential house-heating, gas revenues have nearly
doubled since 1950, while electric sales gained 29%. Gas service
was extended to eight more communities
last year, substantially

completing conversion to natural

Gas has contributed

gas.

sub¬

stantially to the steady increase in share earnings since 1950.

Niagara Mohawk
irom

including the

the exception of Rochester.
two

Canadian

smaii

with

Operations

subsidiaries.

are

cities

upstate

witn

intrastate except for

Population

the

of

served

area

electricity is about 3,100,000; the gas territory is less exten¬
T. e territory is highly industrialized and also includes
large

sive.

agricultural

Tnruway
and

is

truck

and

last

resort

year

bringing in

terminals,

While
and 39%

gas

Opening

areas.

of the

New

York

State

stimulated the growth of upstate

New York,
factories, shopping centers, warehouses,
stations, motels, and home developments.
new

Niagara Mohawk obtains nearly 62% of its electric sales

of electric

pledge ourselves to the more
effective organization of workingand women;

them

to

en joy ment

they
ards

living and working con¬
ditions; to the attainment of se
curitv'for alf the "veovle- to the
of

the

their skills make
the

of

Aluminum

15

magnesium

iron

strengthening and extension
of life and the funda¬

basis

freedoms

of

A.

exercised

Electrical equipment

more

the

fortunate

so

Other

transportation

diversified

crating capacity in recent

be

we

inte¬
could

pledges calcu¬
to

as

monopoly
politicians and

of

those

belong

now

to

coddled,

fostered

by

membership

to

will

re-

they will live

loyally and

honestly up.to their contracts.

intensive

more

interfere,

union

some

through

undue

or

not

restrictive

rules,

When

the

tion

was

one

s op'

That

industrial

of

new

processes

organization.

American

essential

they will not hamper the

introduction

first

Rights to protect the'people against

necessary

to

the invasion of their freedom

first 10 Amendments

their

government.

own

were

That

to

as

to

group

a

political

ing

the

at

we

these

to
as,

a

say

pressure

giant
Bill

of

should

of

expense

Duties

The
the

at

years.

of

end

1954,

had

increased

only

about 9%, and

out of your

own

bitter

.

j

July 5, 1955.

j

,

stocks

101

C.

229

R.

34
100%

$672

PAUL

CABOT

C.

President

company

has

unusually

an

high

depreciation

reserve,

State Street Investment

BERXARD

heads

Mohawk

which

State

York

a

for

five

of

group

some

years

has

utilities

electric
been

planning

in

S.

of

189,910,960
.

70,123,726

......

1,800,000

municipal bonds and notes.

of the Federal Reserve Bank,

Other

$196,211,003

from hanles

Government securities

and securities

bonds

Gr en fell

M or dan

.

.

(including sh ares

8'

and

Limited

Co.

22,025,018

Morgan 4' Cie. Incorporated)..........
Corporation

amcunting to 25% of utility plant, which is carried at original cost.
Niagara

State and
Stork

President

Rechtel Corporation

Total

hand and due

United. States

RECTI TEL

STEP HEX I).
r>

on

AT FIX

Vice-President

15

(11,556,000 shs.)

Common stock equity

1.

51%

:___

____

.

ASSETS

AXDERSOX

,M.

Cash,

Preferred

•

V ice-Chairman

Percentage

$342

•__

__

i* *

President

.

was

MilPons

Long-term debt

^

Condensed Statement of Condition June '10,1955

ALEXAXDER

I1EXRY C.

the

end of 1954

"

NEW YORK

•

-

follows:

The

J. P. MORGAN & CO.

?

CARTER

Loans and bills

purchased.

327,634,577

.

4,157,055

Accrued interest, accounts receivable, etc.

Chair man

the

Morgan it? Cie. Incorporated

I

Bankinp house

3,000,000
■

-development of 1,600,000 kw. a

ditional

power

at Niagara,

made

CHARLES

possible by the 1950 Treaty with Canada. The New York State
Power Authority, already engaged
under Robert Moses in the
construction of the companion St. Lawrence development, is very
anxious

to

secure

the

Niagara

also.

project

-contest in Congress for several years as

There

has

been

to whether Federal, State

H.

; RICHARD R. DEUPREE

in

inoustrial

activity,

continued

the

gains

in

-estimated

that there

will

be

18,000

new1

customers and 20,000 gas heating installations. Further sales
increases are anticipated from the approval bv the New York
Public Service Commission, early this year, of higher maximum
limits on large volume natural gas space-heating installations.

i

X.

yield is 4.8%, which is sligMly above the recent average for all
electric utilities, and higher than for most of the large companies.
Revenues

—

R.

C.

Div.

$210

$2.11

$1.60

205

2.03

1.60

231/2—24V2

1952

189

1.92

1.60

28

—24V2

1951

176

1.37

1.45

26

—21

1950_—_

152

1.78

1.40

24

—19,

1954—
1953

*As

—

reported in the 1954 Annual Report.




Approx. Price Range

33

—

27%

15,507,087

:

30,000,000
30,000,000

Surplus

LAMOXT

—

prof ts

12,892,911

$830,322,246

LEFF1XG WELL
Vii e-Chairman

L.

F.

Me COLL CM
President

United Stales Government securities carried at $'58,566,676 in
above statement are pledged to qualify tor fiduciary powers, to
secure public mollies as required by law, ami for other purposes.

tin

Continental Oil Company

GUSTAV METZMAX

JUNIUS' S.

M ORG AX

Member Federal Reserve

Member Federal

System

Deposit Insurance Corporation

Vice-President
-

ALFRED

P.

SLOAX, JR.

Chairman
General Motors Corporation

JAMES

Common Stock Record^

Earnings*

(Millions)

Year

credit issued

Senior Vice-President

estimate the stock at the recent price

The current

6,341,232

for laxes, etc.

Capital—S00,000 shares

Undivided
S.

reserve

.

Sew York I.ife Insurance Company

THOMAS

if the improvement in earnings continues as anticipated
snd another series of hurricanes doesn't develop ("Hazel" cost
about 3c a share last year).
15.2 times earnings.

payable,

Acceptances outstanding and letters of

C. .JOSEPHS

Chairman
rs.

47,308,586

$735,581,016
Accounts

JAY

Morgan & Cie. Incorporated

the year,

is selling at about

I).

]) EVE RE i'X

.

for the calendar year may approximate $2.20 or more.
increase in the dividend would seem a good possibility later in

33V->

DICKEY

Director

-earnings

On the basis of the $2.20

I).

CHARLES

__

Chairman Executive Committee

Earnings for the 12 months ended March 31, were $2.14 compared
with $2.05 ih the preceding period, and it appears likely that

around

642,915,874

All ot her

Official checks outstanding

gas

An

$ 45,356,556

Deposits: IT. S. Government

Chairman

gas

It is
electric customers, 9,0'J0

LIABILITIES

'The Procter & Gamble Company

stock record is shown in the table
expected to improve due to

the opening of the New York State Thruway, etc.

DA CIS OX

P.

Senior Vice-President

Share earnings this year are

increase

$830,322,246

The II. P. Goodrich Company

purchase cheap power from the Authority after the project is

heating,

.

COLLYER

a

-completed. At present the whole matter is deeply buried in politics.
common

'

15,459,907

Chairman

private agencies will get the job. Should Niagara Mohawk and
the other utilities eventually win out, this will naturally be a
favorable long-term factor.
However, loss of the project to the
State would certainly not be disastrous, and Niagara might be able

Niagara Mohawk's

J>

Liability of customers on tetters
of credit and acceptances.

JOITX A.

-or

below.

CHEST OX

S.

L.

T ROM SOX

Pittance Committee

M ORG AX X

CLE.

JXCORPORA TED

J>, Place Vendome, Paris, France

Hartford l ire Insurance Company
JOHX S.

ZIXSSER

V ice-Chairman

Mtrck & Co., Inc.

M ORG AX

all-

G-E'ORGE A. DALTON

to

that organized labor is prone

an

New York City

Chairman

ARTHUR
.e

1VHITXEY

GEORGE

l,b60,000 kw., an increase of 55% since
rate capacity of hydro stations, which was 1,054,000

protect

inclusive labor monopoly.

other

many

INCORPORATED

substantial steam genTnus'at the end of 1954 depend¬
very

Capital structure of Niagara Mohawk at t

the

to

—

inevitably be wielded by

as

experience, you may feel to be
justified. The pertinent point is

DIRECTORS

likewise

Rights—or shall

the people of this country from
for
of the misuse of the power that will

whole community.
Add

labor

or¬

privileges

extort

themselves

The

adopted

remedy this lack.

contain

their

even

The basic charter of the emerg¬

general public.

That they will not use

ganization

of

or

dustry.

the

lacked,
Bill

machines

25

small amount of power purchased under contracts decreased.

to

it

feature—a

by

or

Constitu¬

adopted,

r1?- technological progress of in•

re¬

extent
already have,
inflationary high prices,
canceled out many of the benefits
labor
hoped to secure through

mo-

of apprenticeship,

they

pledges

instance, they might pledge:

capacity was

steam

New

That

thr°Wh

lax

output, and the forc¬

4

industries

The compafly has been installing

as

pro-

to

sure

fears

labor

100%

kw.

limitation

of

4

and

equipment
Cement, stone, clay and glass products

,1950;

they will not seek to

nopolize the labor market by
on

trade

supernumerary employees
the industrial payroll may, and

on

st-rictiohs

when

were

6

Automobile

few

striction

policies.
-That

wage workers.

days

make-work ing of

or

eering policies, bring hardship and
loss on either innocent employers

completely

a

calm

a

to

That

6

-

feather-bedding

as

con¬

High wages, short hours,
discipline,
feather - bedding,

they will not, through ju¬
risdictional squabbles or racket¬

influence

by

fair day's

a

pay.

tremendous

of;the

and

power

'

fair day's

a

united

the

of

of L.-C. I. O.
view

For

7

:„___

the

are

society."

preamble to the

constitution

F.

In

Ue

which

democratic

our

From

posed

by

8

Fabricated metal products_^__

able

possible; and to

our way

mental

"

for

whi-h

government.

9

___

printing

Misc. alloys and non-ferrous metals

j

leisure

belong to the

That they will not countenance

of

not

16%

the

to

achievement of ever higher stand-

the

Electric Revenues

Chemicals, paints and dyes_:

^

entitled;

suggest

of Industrial

and

of the rights to which

indicated by the following industry

as

%

Paper and

to the securing

full ,recognition

justly

are

lated

Steel and

of

'

■

"We

men

to

as

That they will give

.

work

...

grated labor movement

tabulation:

and

'

Chronicle:

from industrial customers, revenues

revenues

quite well diversified,

are

large

■..

■

fortunate

so

members

the

as

important

as

only a mi¬
nute fraction of the total popula¬
tion. Today they, with their fami¬
lies and friends, make up fully a
quarter of the total, and whatever
injures the community injures
them.

monopoly.

Editor, Commercial and Financial

enjoyment

in New York State extending

serves an area

Albany to Buffalo,

/

■

if

size

Edison, although the latter company has

basis.

on a revenue

Niagara has

about sixth

only

by its $210 million annual

than

lop rank

" rates

company

labor

are

union

a number of separate pledges which,
public interest, the united AFL and the CIO could make

to calm the fears of those not

Niagara Mohawk Power Company is one of the largest pro¬
ducers of electricity in the country, selling
nearly 15 billion kwh.
last year. Since a large proportion of output is industrial low-rate

equally

Gone

George A. Dalton lists
in the

are

their interests

as

Utility Securities

1$

(79)

GREXFELL

8'

CO.

LIMITED

23, Great Winchester Street, London E. C. 2,

England

20

The Commercial and Financial Chronicle

(80)

this five-year period the bank's income from loans
that from its government bond holdings 21%.

During

and

important to bring out in this connection that the average
return for the period on loans was approximately 2.70%; on

rate of

Statistical

Ten-Year

COMPANY OF NEW YORK

period, in 1864, Guaranty Trust Company

1945

organized; and it has grown to a position of New York's third
with resources of $3,020,375,779 at the 1955 March
quarter date. It was not until 1887 that the New York State legis¬
lature passed the State's Trust Company Act, under which institu¬
tions specializing in trust business could be incorporated; preyiously
special legislative acts were required for this purpose, and it was
under one of these that Guaranty started business as New York
Guaranty & Indemnity Company, with a capital of $100,000. The

Invested

Earnings

Assets

were

3.61

463

2.16

701/4

3.44

399

2.40

59%

48%

1948_

73.38

3.61

423

74.11

3.51

427

the

of

This

3.39

440

2.80

63%

55%

pictured

3.56

452

2.80

601/4

551/2

colossal and

77.18

4.04

488

3.20

721/4

57

blandly the opportunity to par¬
ticipate in the earnings—and risks
—of share ownership in two of

78.18

4.44

456

3.50

72%

62

4.30

507

3.70

75%

62%

the

in

above

1947

book

The

values.

increased 71%.

the

for

By the end of

from

Banks

Condition

—

March

$098,375,000

Capital

750,043,000

Purchased

of

1,380,542,000

Other

58,203.000

Securities
on

Real Est.

Res.

Bank

9,000,000

Undiv.

Bonds &

Accrued Int. & Accts. Rec.

18,286,000

Foreign

Res.

as

in Transit

etc.__

Liabilities

Maturities

excellent return

an

a

created

5%

in

Assets.'

1916 and

profits

1.7

commenting

the

on

"Prosperity Partnership"

recent

path.'

Letter" of the First National

that

Bank

New

of

York

union

Over 10 Years

City

ascribes

the

large part of the

a

demands

by

these

two

with

*1

50

5

or

more

"The

Following

are

schedules that give, first,

a

break-down of the

bank's sources of gross
income; secondly, its average rate of return
derived from its loans and discounts and from its securities
holdings:
Interest & Divs.

Fees, Commissions

Loan Interest

from Securities

and Miscellaneous

44%

30%

union.

suffer
the

benefit

23

principle,

21

19

these

54

21

25

terms.

the

"The

were

the

its

chief

rival.

accumulated

bring either
industrial

the

the

strikes

1.44

plants

lines

or

'forced

was

readiness of the

1.89

one

giants

competitive

industry.'

'wildcat'

1.74

2.98

to

settlement

by

the
2.85

cost

paratively

a

of

to

upon

situation

Unauthorized
attested

men

to

the

to shut down

and

go

join the picket
fishing. With heavy

of

to

strike

of

SUB

minor

was

a

feature

General

and

over-all,

second

Motors

which

the

settle¬

included

increases

pay

com¬

of

calcu¬

third

and

years

of

the

three-year contract, five cents an
hour for SUB, increases in pen¬
sions to retired

workers, and nu¬
'fringe
benefits.'

other

merous

The

total

cost

the

of

without

counting pay
promised for the second and third
or adjustments which may
be dictated/ by a more generous

cost-of-living formula, was calcu¬
by union spokesmen at about

lated

20 cents

an

hour.

"That the Ford Motor Company

prepared to share its prosper¬
ity with its employees was appar¬

was

its initial

offer, announced
The company's 'package'
embraced, besides pay increases
and numerous fringe benefits, an
employee savings and stock pur¬

May 26.

ally

financially prepared to
enjoy some unemployment with¬

THE CHASE

MANHATTAN BANK

Bankers

Kenya
Head

Circular

to

the

Colony

Office:

Government in
and Uganda

26

Request

Members New York Stock
Members American Stock

BROADWAY, NEW

Exchange
Exchange

C. 2.
West End
(London)
Branch:
13, St. James's Square, S. W. 1.

YORK 5, N. Y.

Telephone: BArclay 7-3500

Teletype—NY 1-1248-49
(L. A. Gibbs, Manager
Trading Dept.)
in

Bank

Stocks




land

Protectorate.

Capital.—
Fund

1

£3,104,687
The Bank conducts every
description of
banking and exchange business.
Trusteeships and Executorships
also

undertaken

same,

farm

or

better, terms

Motors

other

—

cipal

implement

before the union

was

GAW

in

hailed

as an

to

contracts.

Savings bonds

Even

any

one

elected

union

acceptance of the

principle.

plan

have

producers

by

on

though

10%

Motor

of

his

stock

had

put

and

stock

to

has

effect

giving

from

the

and

severance

up on

anteed, would not be annual, and

the

a more

pay

present

employee
The loan

plans were set
basis than

generous

subsequently

have

an¬

admitted

to

admission

and

the firm

Mr.

partner.
associated

been

the

of

Exchange

with

the

to

previously

of

June

Fahne¬

Mr. Farfirm

reported

"Chronicle"

as

Farnam

stock & Co. for 18 years.
nam's

was

the

in

23.

Dempsey Mgr. of
Kidder

adopted

SUB

Peabody Dept.

PHILADELPHIA,
Pa. — The
Philadelphia
Municipal
Depart¬
ment of Kidder, Peabody & Co.,
123

South

nounced
has

Broad

that

been

Street,
an¬
Dempsey
Manager of

John

P.

appointed

the Pennsylvania

Municipal Trad¬
ing Department of the investment
securities

firm.

;

•

R. S. Reiner

Opens

(Special to The Financial Chi.Cnicle)

PASADENA, Calif. —Ralph S.
is engaging in a securities

Reiner

from

offices at

205

East

Colorado.

G. N. Lewis

up

holdings of the Ford Foundation.

the payments would not be guar¬

go

may

member

a

Stock

general

a

with
seniority

invest

half in U. S.
and half in Ford

his stock at half price.

York

has been

(Special

pay,

sold

exchanges,

elected

been
New

worker

year's

The company would have matched
the 5% invested in Ford stock,
in

minimum

City, members of prin¬

stock

business

May 17.

savings

than

contracts/running for three years,
a
'supplemental unem¬
ployment
benefit'
(SUB)
plan
which

purchase

the

could

embrace

spokesmen

"Under

Motors

more

Ford and General Motors

UAW-CIO

General

to

by

new

a

In other words,
capitalists every

nounced that John V. Farnam has

plan. This package paralleled
offer

and

not

automobile

The

£2,851,562

Reserve

the

General

covered

£4,562,500

Paid-Up

"The UAW-CIO elected to force
issue on Ford and then de¬

the

also

in India, Pakistan,
Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Authorized Capital

an

mention

Branches

Laird, Bissell & Meeds

out pay.

from

London, E.

on

New York

plan, an interest-free loan
('income stabilization') plan for

pay

with

$150,000.
are
making

years

how humble

In Fahneslock Go.

laid-off workers, and a severance

mand

Bishopsgate,

position,

30

over

J. V. Farnam Partner

chase

and

us

matter

'package,'
increases

years

ent in

with
no

year.' "

closer

overtime work these past
months,
the men evidently were emotion¬

NATIONAL BANK
of INDIA, LIMITED

fact, every employee who

Mr.
step 'down the*

lated to average 6.2<ents an hour,
similar pay increases during the

Henry Ford II stated that

in

1.58

3.06

com¬

favoring

of

had

two

us

1.39%

2.49

1951—

on

Securities Holdings

2.15%

motor

chest', reported at $25,000,000, which apparently was to be
applied, on a 'divide and conquer'

20

_____

the

of

'war

25

Rate of Return

"Monthly

company wanted
long and costly strike

union

23

on

the

factors

a

57

Rate of Return

the

Neither

to

The

26%

Loans and Discounts

1950

this

petition between the leaders,
fortuitous

60
___

in

states:

prosperity

52
_____

leaders

business and the intense

car

to
Income from

'In

Fahnestock & Co., 65 Broadway,

immediate

Bank Letter"

preponderance of the nearer maturities has enabled Guar¬
anty to take advantage of higher rates as they occur.

'in the old days' for $6 a

as

Mr. Reuther made it plain

ments

the

Total

to

up

form

scheme,

expected

a

26% of
resources of

own

capital of $50,000, which

hence.

cur¬

industry.

years.

"

objective when the present
contract
expires three years

Ford

between

SUB

than

more

now

who now has $121,000
fund, General Wood sum¬

to the

tion

16

the

he

prosperity of the motor car
business and the intense competi¬

Concerning

*Due in

the

Ford admitted, is a

rent

50

take

Company and General Motors, the
July issue of the "Monthly Bank

major auto producers to the

1954

not

wages,

*2%

99

would

With

largely in Sears
123,800
participating

marized:

we

In

com¬

tax.

week, and

fortuitous

acceptance of

Maturities

10 Years

before

employee

to work

interruption of their renewed prosperity, and this
factor favoring the union in its demands.

an

built up from

$600,000,000, de¬
withdrawals of
$351,000,000
since 1916, against
employee contributions of $191,000,000.
After citing an instance
of a little Polish girl who started
spite

his

a

the

of

exceed

out,

was

chairman

the fund invested

gets

*1

84

a

is

trustees

5% to 10% share of the

a

pany's

been

.98%

_______

such

on

Guaranty's yield is
high-grade investment

labor contracts of the Ford Motor

into maturity categories of its
holdings at the past five yearMaturities

of

deductions supplemented

pay

has

99

1953

total,

Senate

Sears, Roebuck and Co. savings
and profit-sharing pension
fund,

wanted

principal categories follows:

5 to

dividend

testimony

the

Wood

board

July issue of the First National City Bank of New York
"Monthly Bank Letter" holds neither Ford nor General Motors

$3,020,376,000

follows:

Specialists

General

the

in the

7,,553,000

Miscellaneous

L'p to 5 Years

1954

Contracts

22, (141,000

0.6

bond

4.62%,

the

of

Terms Ford-General Motors "GAW" Labor

4.0%

break-down

basis

5,J
587,000

Expenses,

Real Estate & Mortgages

Government

the

4, 000,000

Payable

Other Securities

45,8

1952

Bell

ket.

of

company.

1951

120

very

his

Banking and Currency Commit¬
tee's inquiry into the stock mar¬

fund

1950-_

This

that the bank's

34,4
474,000

23.1%

States

was

875,000
U

Borrowed

24.8

Obligations

Guaranty Trust's
ends

Funds

$3,020,376,000

.

Loans and Discounts.__

United

be added

2,542,005,000

for

Other

A break-down of these assets into

Govt.

may

$402, 841,000

$100,000,000

Items

4,820,000

S.

Prof.

in

during

the

about

Acceptances, Net

13,642,000

Cash

Parenthetically it

issue.

Deposits

Dividends

Mtges.

U.

11

the

On

200,000,000

33,857,000

Acceptances—

.

Wood

unnecessary.

1955

$100,000,000

___

53,008,000

Premises——__

Banking

31,

Surplus

Securities

Stock

Credits

brought out by General Rob¬
E.

March

year's seniority

is

conditions,
plans can be

such

ert

by

present

of

stock,
the
employees

LIABILITIES

Obligations

Fed.

approximately 80% of

was

results

was

conservative deposit ratio makes large "plow-backs" from earnings
Statement of

RESOURCES

Public

of $47.60

high and low prices.

spectacularly successful
enterprises. How gen¬

dividends.

among the ablest in the country's banking system, while con¬
servative, it has been flexible and alert to keep the bank's opera¬

Bills

the banks' peak holdings of govern¬
These holdings were sharply reduced
which affected invested assets adversely.

period.

This gain

as
up

under favoring

erous,

the

due to the fact

was

profits
exorbitant, passed

selling price of approximately 80, Guaranty
selling at 18% times 1954 operating earnings, giving no
effect to securities profits of about $4,850,000.
In 1954, 5.4% was
earned on book value, and 86% of operating earnings went out in
stock

tions in pace with changing conditions in the economy.

&

share.

the

At

and also

Guaranty maintains three branches in New York,

offices in London, Paris and Brussels. The management is regarded

Loans

reflected

not

most

American

profits.

the stockholder in the period (the increase in book
value plus cash dividends) was $47.60, or at an annual average rate
mean

Due

reserve,

undivided

to

The gain to

a

Govt.

stock dividend in 1948.

contingency

1917

The decline in invested assets

war

the 1944

&

in

transferred

was

after the end of the war,

of $4.76

S.

separate

that the early base year saw
ments

of 6.3 to 1.

Cash

a

following have been the percentage changes in the above

quarter, 1955, capital funds stood at $402,840,648, with
deposits of $2,542,005,000. This gave the conservative deposit ratio

U.

It

1953, and for II 1/9%

carried

operating earnings 17%%; invested assets lower by 30%; dividend

the March

as

Guaranty

statistics in the decade: book value increased approximately 32%%;

strictly commercial institutions right through its
history. Organized as a state-chartered bank, The Bank of Com¬
merce in New York, it took a, national charter in 1865, shortly after
passage by Congress of the National Banking Act.
It was as a
result of the Commerce merger that Guaranty's capital was in¬

1199553204

to

|industrial

so

80.12

banks

and surplus to $170,000,000.

often have

so

74.88

begin¬

largest

creased to $90,000,000

whose union leaders

1953

move

largest

and

50%

1952—

brought under single
at that time. The
merger was more logical than most of those of the era for the two
banks complemented each other so well. Commerce had been one
America's

"It is worthy of note that Ford
General
Motors employees,

50%

59%

75.59

^Adjusted for 5-for-I split-up in

of

and

1951

'/•Prior

two

'unjust,'

1950

ning in 1910, the most important'consolidation in 1929, was between

management

'unfair,'

as

55%

.

,

1954

merged with Guaranty

condemned

—was

53%

72.13

2.80

plainly evident
by union lead¬

'phony.'

164.33

Guaranty and National Bank of Commerce in New York, the latter

having been organized in 1839.

ers

711/2

1949

changed to the present title in 1896.

was

59%

$2.16

2.40

not

reasons

Low

$629

•

Nevertheless, the
Parnership' package

'Prosperity

High

$3.43

1946_

to

—

Ford stock.

—for

—Price Range—
Dividend

1947

largest bank

While several other banks

Share*

Per

—

t$62.54

was

name

Record

Operating

Book
Value

have long cherished

vestors
own

By ARTHUR B. WALLACE-

Late in the Civil War

Thursday* July 7, 1955

.

fect

But it is

governments only 1.61%.

GUARANTY TRUST

.

plan and could have gone into ef¬
without delay.
The savings
stock purchase plan offered
employees a privilege many in¬

increased about 45%;

Bankand Insurance Stocks

.

LOS
N.

to

The

Opens

Financial Chscnicle)

ANGELES, Calif.—George
is conducting a securi¬

Lewis

ties business from

offices

at

7850

McConnell Avenue.

Joins

Schirmer, Atherton

(Special to The Financial Chronicle)

PORTLAND, Me.—Paul Farmer
the staff of Schirmer,
Co., 634 Congress St.

has joined

Atherton &

Volume

182

Number 5444

Continued

from

The
the

.

.

The Commercial and Financial Chronicle

.

incompatible to force; it is out of
its reach, and never can be made
susceptible Jof it or controllable

4

page

regulations

to make rules or
with respect to gold

it does

°

of it in exchange for govern¬

own.

any

ment bonds.

Present Gold

Our

Every such act
has been

rights

property

its part is and

on

direct invasion of

a

guaranteed

to

of

citizens

our

them

the

under

American

producers

their

is

mineral lands granted to the own¬
under

ers

tices

mining laws and

which
direct

under

the

have

patent

from

more

than

a century.
These laws
force, they have not
pealed.

Where

the

can

force,

grants

for

government,

prac¬

in

been

still in

are

been

to

owners

secure

li¬

a

the Treasury derive

compelling
producers
gold to them, or to
their agents, or otherwise to face
criminal
prosecution with fines
authority

this

sell

to

and

imprisonment, plus confisca¬
of their gold.
Producers are
ever?
allowed to keep their

tion
not

gold or to sell it to those pro¬
cessors who use it commercially.
own

Wher

the Treasury derive
decree that citizens
may not own and hold gold, newly
mined
or
otherwise, which they
may desire to hold for their per¬
e

can

authority

to

sonal financial

safety, just as they
accumulate
savings in a
account,
or
government

would

bank i

bonds,
curity.

or

cbvious

Treasury

grant it.

authority
power

no

The Constitution does

not authorize it.

We

get

can

given

ation

variety of other

a

from

answers
never

those

any

who

have

principles discussed,
or from
those who merely parrot
the propaganda with
which we
have
been
brainwashed
during
these past 20 years, or from those
whose

philosophy

basic

is

freedoms

America and

our

to

opposed

way

of life has

been founded.
We

have

Treasury

the

hoarding,
gold as
to protect the

prevent

must

that

or

that

told

been

they

need

monetary reserves

the

gold content of the dollar, or that
we are on a gold bullion standard

is not as desirable as a
gold coin standard but better than
no
gold standard at all), or that
(which

eliafjge in the price of gold

■any

would

.be

tions

are

repetitions of slo¬

mere

wishful
disregard of

thinking,
realities,

gans,

complete
or
plain

stupidity.

the

the

of

nation is the belief built

any

people

minds of

in the

our

citizens, that

"our money is safe because of the

gold
this

as

in Fort Knox." With

reserves

have

into

led

we

screen

the

greatest

inflationary and debt binge in
history.
That

gold

does

gold

not

safeguard

dollars

20 years.

You
in

as

.

any of the
popular¬
money. No busi¬

tokens which

"firm

as

has

payment

access

are

to

this

gold

its

accounts, no
it on deposit.
It
does not safeguard your insurance
banks

can

policies,

on

hold

pension

funds,

or

honest

and

sound

to

will review a few
practical and legal facts as to our
monetary statutes and their in¬
terpretation by our courts, which
must be considered
in carrying
We

out those

the

In

or

than

early days of

nation
Congress

our

Continental

struggling with the problems
penalties of deficit financing,
there were bitter experiences over
and

of

span

irredeemable

reconcile
the

with

in attempting to

years

paper

of

amount

scant

"hard

money," of those days.
We will

from

quote some paragraphs
pamphlet published by The

a

Foundation for Economic

Educa¬

tion

Inc.,
and
commend
their
foresight in providing a graphic
warning,

taken

from

past

our

mistakes, to prevent their repeti¬
Worth

phrase

descriptive

pay

No

you any

of it

on account of

savings

and

you.

office
cannot




postal

receive

is

Continental,"

a

born

of

Pelatiah

Webster

advocate of

Constitutional Con¬

a

and

vention

the first

was

points in

many

our

Constitution conform to his ideas.
We

his

quote from

tures

essay

Acts"

Tender

on

Continental
money could be kept up and sup¬
ported by acts of compulsion —
entered so deep into the mind of
Congress and of all departments
of
administration
through
the
states that no consideration of jus¬
currency

the

of

religion, or policy, or even
experience of its utter ineffici¬
ency, could eradicate it."
"Congress began this maximum
tice,

maniasm

of

Continental

when

'should

etc.,

treated

and

deemed

his

bills,

trade

all

be

enemy

precluded
intercourse

and

the inhabitants

with

an

as

be

country and

shall

.

.

.', that is,

should be outlawed."
"This

ruinous

continued

principle
practice
for

in

to

absurd

more

with

value

at¬

Here

from

love into your
cowskin, than to
into

credit

of

words

were

a

plans

a

or

your

by penal laws."

money

whose

man

warning
important

incorporated into our
It
is
tragic that
now, 175 years later, difficulties
and insecurity plague us because
were

Constitution.

we

have

be

taken

allowed

freedom

our

to

directed

and

over

by

destructive alien forces.

The

the

those

old

false

doctrines

condemned by Webster.

find

through acts

of

coerced

despotism,

arro¬

gantly administered without valid
laws.
Some things are done un¬
der color of Acts of

where these

thus

were

robbed

their power to resist, and un¬
the mass hypnotism
which

characterized

that

raids

government

against

their

Congress, but

contrary to Con¬
stitutional principles they have no

Soviet

eral

period, further

oil

made

were

other

with

the

sovereign
rights.
Details for this looting
were planned and carried out
by

munists and fellow-travelers they

Soviet agents, placed in high posi¬

gathered around them.

All of these directors had

of

throughout the Treasury, the
Federal Reserve, and other fiscal
Departments of the government.
It

was

an

nounced

highway

open

achievement

of

the

formula

tive,

to

serve

pro¬

gold

by Karl Marx, that:

review

few

a

highway.
took

Under

Act

of

the

1934

points in
Gold

the

gold,

giving

back

ous

issue

Notes.

began the
Federal

of

These

the

are

gold
seri¬

Only

are

of

into

loose

stream,

courts, possess

actual

of

kind

corrupts

evil,

and

form

to definitions and

tions in

Continued

gers any community most, is that
iniquity which is framed by a law;
for this places the mischief in the
very spot—on the
very seat—to
which everyone ought to look and
apply for a remedy."

"It

cannot

the

honor,

est,

or

.

.

.

be

consistent

the policy,

character of

an

make

which

to

a

law

with

the inter¬

Assembly

in

decisions
When

of

courts.

our

the

Supreme Court had
Legal Tender Acts before it,

the

by its

deliberate

knavery,

and

NATIONAL BANK
AND

TRUST

COMPANY

OF

PATIRSON

Condensed

periences with worthless managed
Let

fresh in

minds.

our

how they

note

interpreted
the limitations on Congressional
power "to coin money"; we quote
us

from their decision of 1871:

as

of June 30, 1955

sets

"The Legal Tender Acts do not

attempt to make
value.

of

validity
their

We

paper a

not

do

the

upon

emission

is

standard

rest

their

assertion

coinage,

that
any

or

regulation of the value of money;
do

nor

that

assert

Congress
may make anything which has no
value—money. What we do assert
is that Congress has power to en¬
we

that

act

the

government's prom¬

ises to pay money shall be for the
time

being the equivalent in value

to the

representative of value de¬

termined

by the Coinage Acts
multiples thereof."

Cash and Due from Banks
U.

S.

•

it*

.

.

Bonds

Government

.

.

Municipal and Other Securities
Loans and Discounts
First

F.

Mortgages
Mortgages

Federal

Accrued

Income

TOTAL

"The
cannot

ster, "that the establishment of
uniform currency

of the

one

25,468,244.11
27,967,028.15

.

.

.

•

.

.

.

i

•

•

•

•

or

credit

restored

or

value of money

be supplied, preserved,

by penal

coercive methods.

laws

The

or

any

subject is

300,000.00
3,613,890.23

Receivable

824,261.23

242,779.99
ASSETS

.

$232,816,962.31

.

a

was

greatest ends contem¬

plated in the adoption of the pres¬
Constitution
the precious

ent

.

.

metals

alone

these

answer

pur¬

They alone, therefore, are
money and
whatever else is to
the

[iobilit ICS.

.

poses.

functions

of

money

be their representative and
capable of being turned into them
So long as bank paper re¬
tains this quality it is a substitute
money.

Deposits

...

Reserves, Taxes,

Capital (150,000 shares
Surplus

-

825 par)

.

.

.

nothing

can

Undivided Profits
TOTAL

$215,765,865.38
3,232,504.98

etc

3,750,000.00

6,250,000.00
3,818,591.95

LIABILITIES

.

.

.

$232,816,962.31

Divested
of
this,
give it that char¬

acter."
A

long line of currency and
coinage acts followed through the
years, modifving the percentages
of gold and silver in coins and the
percentages of reserves of metal
coins against the temporary pa¬

or

currencies, but

per

departed

from

none

of these

the

principle that
only coins were money, and that
paper must possess intrinsic value.
Managed Currency

a

Communist-

Socialist Device
Then

...

35,346,659.01

.

.

Other Assets

or

57,806,632.92
47,685,264.97

Reserve Bank Stock

Houses

$33,562,201.70

......

A.

Banking

.

.

.

H.

.

"We all know," says Mr. Web¬

known

wrong."

22

memories of the nation's early ex¬

natural

operation,
shall
afford
protection to manifest injustice,

page

specifica¬

must

and

on

monetary statutes and

our

five

endan¬

dollars
business

not

power

no

have no lawful money to¬
We have no Constitutional
money.
We are using as currency
certain fiat paper issues, accepted
as legal tender, which fails to con¬

for

worst

the

paper currency,

at will.

which

be noted.

the

Constitution."

We

be devised."

"The

limited

large part are check-book dol¬
lars, entries on the books of banks

the great prophet of

day.

in tender acts, in limita¬
tions of prices, in penal laws
and in every other way that could
.

with

a

of managed currency.

was

portion

a

turned

too slow and conservative for the

There

was

ments of money should

cur¬

in general use.
In the
beginning they were issued against
the gold certificates, but this was
mechanism

stroke

a

bother

Why

pen.

basic legal and Constitutional ele¬

Reserve

paper

the

by the gold in Fort Knox.
As we view the following brief
illustrations
of
progress
with
Roosevelt's managed currency the
complete absence of any of the

certificates for this metal and the
Reserve

vast

but when the Federal Re¬
really got into its stride, this
cramped
its style.
They

Federal Reserve notes

Re¬

Treasury

possession of all the Federal

Reserve

a

gold? It had to be stored, and the
taxpayers had to be kidded into
the delusion that it was a protec¬
tion to them, that the flood of

the downward progress along the
serve

of

could create dollars with

of

rency."
us

accumulation

The

plenty

of Com¬

swarms

stock of gold was an early objec¬

'The surest way to overturn the
social order is to debauch the cur¬

Let

help from the

are

derived from the

perform

.

power-mad

a

there, pouring inflationary
the machinery.

on

legal authority.
The Supreme Court has said:
"Congress and the President, like

was

years,

Maynard

agent

Reserve

group

rency now

selves

our

people

John

Harry Dexter
his instructions on
how to run the Treasury.
Tha
Treasury was running the Fed¬

der

Federal

gold policy of the Treasury

follows

receive vsound and

to

refuse

Continental

of

force

but five months old.

was

Congress then resolved that who¬
ever

esteem."

or

whip

to

or

mistress

"Stric¬

published

Philadelphia in 1780:
"The Fatal Error, that the credit

and

not

currency were

Continental Currency itself.

in

got,

an

early experiment in deficit fi¬
nancing. If its lessons are ignored
or
forgotten that experience will
have
been
as
worthless as the

6ur
of

debt,

White to give

tions

tempt to impel faith into the heart
of an unbeliever by fire and fag¬

now.

"Not
a

is

We

was

a

faith, love,

"It

pledges.

the

when

an¬

can

nuities.

post

Administration was
pledges that we were

on

money.

cannot receive any part of

ly referred to
ness

•

,

excbang^ for

paper

subject to the action of force
other passion, sentiment,
affection of the mind; any more

Under

government confis¬

our

return

that

savings, it has not prevented
you handle from los¬
ing nearly two-thirds of
their
purchasing power during the past

it

it and

it, and is making us slaves.

elected
to

our

your

the

freedom

.

propaganda

a

been

misuse

The present

up

upon

to¬

pretext that individuals mis¬

from

One of the greatest hoaxes ever

perpetrated

gov¬

governments

citizens

its

money

inflationary.

These and other similar allega¬

our

make their citizens slaves.

which

on

of

gold and that of

Communists confiscate

the

serious consider¬

the

to

the

that

is that the

answer

has no such
Congress had

that

and

se¬

attitude

Communist

tion

The

to

other form of

any

similarity

wards freedom. Under the pretext

de¬

issued
by
them, before
mining and preparing their pri¬
vately owned gold for sale.
can

the

cates

cense,

Where

citizen of

a

striking

a

the

between

use

Treasury

is

ernment towards

re¬

rive the authority to compel these

property

There

no

than any

the hands

private property, taken from

own

and security as an
no
greater than it

the Soviet Union.

gokTin

Newly mined

And it is

and believe.

see

more

would be if you were

Constitution.

of

Your safety
American is

confidence, this opinion,
is not
compellable or assailable by force,
but must be grounded on that evi¬
can

monetized

21

Keynes, at Roosevelt's elbow, and

both of these acts being basic ten¬

"This

exists in the mind only, and

dence and reason which the mind

Program

Follows Moscow Pattern

the

seizure of gold and prohibition of
the rights of citizens to possess it,
ets of the Soviet program.

1

by it."

Conspiracy Against Gold

Treasury
not

(81)

objective

necessary

ism.

RAYMOND PETERSON

Roosevelt

with

his

This

of

Socialises

but

a

ingredient of Commun¬
was coupled
with his

BENJAMIN P. RIAL
President

Chairman o/ the Board

NATIONAL BANK
AND

TRUST

COMPANY

OF

PATIRSON

PATERSON, BLOOM INGD ALE, CLIFTON, MOUNTAIN VIEW, P0MPT0N LAKES,
BOROUGH OF TOTOWA, WANAQUE BOROUGH
New

came

declaration for managed currency,
an

F.

Jersey

and WEST MILF0R0

22

The Commercial and. Financial Chronicle

(82)

Continued

hear

to

gan

from fage 21

about

the

from

other

"dollar gap."

nations

This

was

invariable the difference between

and
as

of

created by the stroke

February,

authority
velt

from
mate

Committee

Eccles:

of

"Out

Patman:

behind

it."

"And

it,

there

If there

our

is

the

bank

existed
the

made

debts

creates

the

which

Two

should

minuses

plus.

be

therefore

make

Two liabilities make

an

further

ings in 1942

Congressional
a

about

to

market operation,

arise

containing
grains

open

when

Eccles:

"That

done.

ever

is

That

Federal Reserve

is

the

money.

It is

as

way

the

System

cre¬

mean

answered

follows:

by monetizatlon of the

the bank creat¬

1933.

gov¬

ernment

securities.
All money is
created by debt—either private or

a

stead

ially
we

Fletcher:

Eccles, when

do

"Chair¬

think

you

possibility of returning
free and open market, in¬
a

of

this
pegged and artific¬
controlled financial market

now

have?"

Here,
the

upon

the direct testimonv

former

Federal

Chairman

of

the

Reserve

Board
we
find
the paper currency
factory in ac¬
tion.
The gentleman tries to

dig¬
nify this by caHing it "monetizaof the public debt."
Others

tion

have
money

Let's

called
or

it

printing

press

fiat money.

see

what

Webster's

Dic¬

made

legal tender

by fiat of law, and which does not
represent, or is not based upon
specie, and contains no promise of

.redemption."
.

A modified

opposite

in

the

White

the

in

error

have

his

ra^io

House

in

saici:
must

be

thrive

pedient.
that

.

of gold.

tical
if

form

of

an

ex¬

followed

as

say

result

a

policy.
price for gold

new

it

started

dollar at

dollar

credit

the

purchasing

is

in

that

our

was

relation

time.

Since

monetary

100 cents

dollars

with

we

unit
must

having

a

power of 100 cents, for

of

subsequent
parative compilations
purpose

under

the

com¬

we

1934, the price of gold became

$35

per

ounce

ginning

of

and

from

the

be¬

Treasury

trading in
gold, buying and selling it at this
price, one of the objectives was
establish

to

the

the

U.

international

among

all

S.

dollar

unit

currencies

the

as

that

so

dollar

would become the "standard."

such




fiat

affecting other nations, this
high price for gold started
business

off

with

gold flowed to

tions,

and

distributed.

a

dollars
65%

Stripped
and

us

a

common

United

new

the

"bang'" and
were

put

technical
in

To

to

has

that

of

this

widely

1

Later, during the war, or as its
aftermath, when we were sup¬
plying the world with fantastic
gifts of dollars and goods we be¬

and

had

price

agents,

billion

aside

from

it

has

ter

it

spiracy

is

The

lapse

being

value

monetary
put

money

to

use

by
or

quite

others.
as

coins

to

as

what

degree of careful management is
being exercised by the trustee in
disposing of their'assets.
If the

purchasing power of dol¬
lars dropped to 5c or to 2c could
the Secretary of the
Treasury be
being true to his trust

if he continued to sell
gold abroad
and to commercial users here at
an

$1.75,

75c

or

ounce.

he

not

grave charges for
his trust and

erty
the

for

be

subject

to

having betrayed

dissipated our prop¬
pittance?
For selling

a

American

people

down

sells

this gold

the

river?
now

about $12

ference

in

merely

a

of

pittance

the

the

The

is

there

any

principle?

question
or

to

as

the

at

dif¬

Isn't
the

width

dollars

tional

is

gold

belief,

carefully

limited

reserve

by

and

Each

curb

excess

Knowing
methods
Eccles

really have

tatorships with
laws,

and

stitution,
a

of

once

reverse,

procedure,
stated

stood

an

wanted

Marriner
was

.

problem

ocean

of worth¬

and the Federal Re¬
ready to create the

a

ooerations

their

mask

to

provided

also

It

guise of "classified de¬

secrecy."
long range

In the Senate report of
Committee

Jenner

versives

in

there

listed

are

partments

"Sub¬

on

Government,"

the
18

important De¬

International bodies
White was

or

of which Harry Dexter
either

director

the

the

or

representative.

ury

For

there

war

Treas¬

several
into the

our1 entry
had
been
increasing

before

years

hostility to gold mining
behalf
of the Treasury, Federal Reserve
various

and

powerful banks
to reflect
their
policies.

Press stories and articles were ap¬

pearing quite generally, gauged to
discredit
it

that

gold

and

would

lose

promote
value,

fear
that

abandon

would

nations

other

its

that we had a great surplus
Treasury, that gold mining

use,

in the
a

that

to

time

of

waste

people

attention

and

energy,

to turn their
something useful.

ought

Destruction

of

Gold

evidence

United

States

to institute such

written

Nelson

necessary
a

Fur¬

program.

States

possesses

initiate

to

powers

Being practical¬
buyer of the yellow

program.

the

only

be on an increas¬
ingly restricted scale. ..."

purchases will
In

this letter was
production in the
was
$2C9 million,

1941, the

United

year

gold

written,

States

and the Treasury supplied gold to
manufacturers

the

in

industrial

and

of

amount

mil¬

$37

lion.
In 1953

(the 1954 figures are not

yet available)
tion

U. S. gold produc¬
million
and
the

$68

was

Treasury supplied gold to
facturers

industrial

and

manu¬

in

users

the amount of $75 million.

this

for

when

year

broken down shows that 39%

was

by-product production from

lead

per,

zinc

and

not classed

are

entire

The

S.

U.

industry of the
only $41,480,000

gold

this

which

mines

gold producers.

as

produced

of

and

cop¬

ipine, the Home-

one

si ake, contributed 44%, about 10
dredges in Alaska and Californiacontributed
36%, the remaining
20%
coming from, a do/en me¬

dium and small mines in six west¬
states.

There

not

is

operating
Lode
be

in

producing mine

a

the

on

about

Mother

famed

California.

should

There

with nerhaps an¬
other 1.000 throughout 10 western
500,

Alaska.

and

wouM

This

provide

prosperous

economic life for about 200
are

com¬

idle and

now

depressed, giving new direct em¬
ployment for 20,000 men and in¬
business and emnloyment

lifted

were

of

the

there

way

these

by the director

of

reveals the intention of

gold

mining in this
written to Donald
heading the War Pro¬
was

notorious

for almost
To
and

equal number.

an

industry

gold

the

reopen

place these mines in an oper¬
condition
would
require

ating

expenditures for machin-:
steel, lumber, housing, equip¬
supplies,
transportation,

capital
ery,

ment,
etc.,

shouM

which

approach

$100

yearly for about five years
the annual payrolls should

million
and

be

close to the

thousands
United

same

benefits

Income

of

amount.

people

all

who

States

flow to

would

the

over

have

been

frozen in their interests and

equi¬

ties in these mines for 15 years.
These
from

conditions
and

new

a

price.

This

can

result

can

realistic

gold

a^o chart the

re¬

turn to fiscal

sanity in our mone¬
tary policy and insure healthy
yearlv increase in our national
gold supply.
The Treasury refers to its gold
as
"monetary" and has given as
an
excuse
for its Regulations af¬
fecting
gold
producers,
that it
must

duction Board about

their

a

the United

ther,
the

new

against hoarding.
But under its
monopolistic supply of gold to in¬
dustry Treasury sales in the past
13 years have steadily mounted

of the Departments controlled

destroying
country. It
M.

pro¬

and
gold
production, spread over a period
of 15 to 20 years is the only satis¬
factory solution to the general
gold problem. This is the moment
all

and when secrecy

interlocking agencies operated. A

by White

A
reduction

of

Mining

war

classifications
was

merely

and

direct

The Communists are

the

initiate

.

gradual

cessation

munities which

plans.

pinners.

the

use

period.

postwar

of

gram

final

their

fense

.

unsolved

states

letter

to

should

being
buyer of the

Preparations for the war, and
participation, gave them un¬
limited
opportunity
to
expand

one

deposits.
and their

and

can

that it derives from

gold production,
The purchase
gold in the ground leaves the

later

under the

the

of

to

us

ocean.

screen

gold

program of gradual reduction in

a

ern

less currency

the

that gold

they worked well as

so

be drowned in

na¬

currency and

the

dim view of our
for our Con¬

a

contempt

Communists

The
<

dic¬

team.

the

power

thinking

the

employed

and methods of authoritarian

that

gold certificates held by the Fed¬
eral Reserve

a

complete

toward

of

implanted through years of Treas¬
ury propaganda, is that the issue
of

col¬

was

it

size

the

of

maximize

to

an

the

solve

to them.

After the

popular

Gold

capitalism.

block

was

When he

only

toward

of

known

the practical price of

aspects

and

Production

ing

than the

now

States

against

achieve their well advertised

has

gold

more

public interest

as

con¬

gold
came
to¬
Communists
were
the
ultimate
wrecking of our economy so as to

Because

arbitrarily outlawed in
country it is definitely a mat¬

upheld

two forces in the

now

gether.

acquired

was

of losing

to

joint war effort. Such an oppor¬
tunity exists now.
The
United

users

working

is

been

of

branching out t rougn sub¬
agents in other key po¬

And

serve

be

as

his

sitions.

The

dollar

a

intrinsic

may

gold

with

ordinated

purchasing

of

any

Treasury

the

commodity.
The
Treasury acts
merely as the manager of a ware¬
house, specializing in gold. This
an

the

that

gold
are
not
monetary transactions. They are
merely commercial purchases of
metallic gold in
bar form as a

has

our

freedom to
issue paper currency under con¬
ditions of'their choosing. They did
not want to be annoyed by even
the pretense that it had any rela¬
tionship to gold.

the

power,

sales

special

a

into

of

power

the

sold.

These

drive to
fiscal offices
put one of their top
Harry Dexter White, in
made

The Federal Reserve was work¬

of

both

metal, the United States is in a
position to demand that its future

be

1934.

problem

ly

Over

has

citizens.

which

at

with

collabo¬

must

in

is danger

opportunity
longer term

soon

control

practical

or

ment there

such

They

when the dollar had a far
greater
many

and

gold

the great bulk of it

us

surrounded

soon

penetrate

Treasury. The Secretary only
holds it in a fiduciary
capacity as

cost

of

swarm

a

admirers

of

which

This gold is not the property of

purchasing

set¬

like

Take

the

our

the

one

power
its only value.

for

and

that

purchasing

trustee

by personal let¬

The Communists Move In and

of

in

"In
dealing
solely
with
the
question of gold mining equip¬

adds to the difficulties of the im¬

I.itvinov

-i

us

were

road

same

it

but there

rators

at

light

gold

value

the

tne author¬

They became evident in
departments of
government

groups

absurdi¬

the

prove

in

step

their agents had

uoon

all

today.

dispute

prepared

would

intervene;

Maxi

index

gold

the

and

price

States

so

locusts.

realities of business, these figures

the

were

the period after Roose¬

was

to

tled

depre¬

accurate

would

sense

to

Soviets and

purchasing power in
they have lost

of

of

challenge.

no

ter

ounces

the river?

from all direc¬

dollars

these

get their

viewed

asked

velt's recognition

about $12.

ties

government,

or

This

an

find

this

and

extensions

quote

letter:

practically the sole
yellow metal in order to

only worth
only half their

more

we

the

We

issued.

was

that

mediate

This would put the prac¬
of gold at $17.50, but

use

sanction

are

of

to

of

ing Order
from

power

was

price

Would

formula

provided in the Gold Reserve Act
of

35

use

dollars

mo¬

measure

in
its
issue.
Aitnough
working under coior of Congres¬

sional

50c, that they are
par value, but the foreigners and
American
gold
processors
only

this

and it contains

the

not

it,
meant;- and that

he

has

the

the

the

and

."

.

what

what

As

price of gold.

though he did not

is

of his

policy

a

delivery to them of

that dollars

to

a

are

Both the President and the Sec¬

ciated

gaining

was

restraint

be

through

or

retary of Treasury have been pub¬
licly admitting, for more than two
years,

was

man¬

ity assumed, that the courts would

it.

on

machinery for

forward and question

gold for every $35 they
They have found this to
very savory dish and they

a

the

aged currency
mentum there

ness,

present.

Since

is

hands

Banks,

to

that someone in banking, or busi¬

of

ounce

which

This

their

with

concession

obviously in defiance of our mon¬
laws
that it
seemed
as
though a
challenge must arise,

practical appli¬

no

Central

assure

gold

States

WI ile

keys
which uniock the gold vaults and
will

"a

Thursday, July 7, 1955

.

.

etary

anybne, but Lie actual

in

their

Because of economic difficulties

tionary calls it, in their definition
of "Fiat Money":.
"Paper currency of government
issue which is

an

United

Calculated
Eccles: "Never. Not in
your life¬
time or mine."
of

at

are

should

The

.

for

dollars

take firmly into its own hands tie

to

Congressman

Value cannot

words

established

public debt."

there is

of

He
.

is

ing money by the purchase of

man

debt

adaiess from

Bven

mean

issuing

poles.

selection

public debt."
Eccles: "I

cation

connection

as,

Federal Reserve functions

formula with

a

control of the dollar

were

Congressman Kilbum: "What do
you

and

Roosevelt made

.

bank of issue."

a

Other questions
1947

have

System operates.

The Federal Reserve
ates

Value

we

be

can

by law or Con¬
decree; it is not debt.

gressional
financial

all

of

meaning

merely

bonds.

was

dollar

number
no

dollars

by

was

it

as

our

established

going to
are

of

loose

government
be

of

gold

billions

turned

soon

certain
has

a

of

as

fiction

we

dollars, has been tne stock of
gold in Fort Knox. Not the gold
value of the dollar, wnich is only

power

bravely, but which

but

purchase

for

dollar

It is merely
legal formula which

a

abroad,

been able to

Colossal

a

desire

up

The real lure for them to strive

decreased

executed almost

You

you

use to buy them
with?
going to create credit?"

anything

taxpayers'

What Is the Price of Gold Now?

existence in fact.

the ghost of

Tne

dollars

never

express

said

of

build

to

in

only

orthodoxy."

and 'those,

their respect.

value in the dol¬

gold

started out

deposits."

are

this

about

at

The gold value of the dollar has

it puts new
money into the hands of the banks

Dewey: "What

expect

a

...

which creates idle

would

we

an¬

Falsehood

hear¬

an

question and

a

Gold Value of Dollar

the Federal Re¬

mean

throughout

Fort Knox?"

as-

question from Con¬

when it carries out

that

"What about the gold in

or

billions

our

have

foregoing

approximately

haven't

the

lar,"

born.

Eccles: "I
serve,

loose

some

the

of

session

"You

ing reply:

to

was

someone

Dewey drew the follow¬

gressman

in

this

«

In

$5

point and remark:

no

net.

of

note

plus.

a

for

had

We have used hun-

of the loss of

will

swer

quantity.
It puts
these together and calls the result

money,

and

$i

description of the machinery

If

This is

currency.

"fold¬

or

billion.

bank

minus

a

check¬

for manufacturing currency there
has been no mention of gold.

ink

and

few

result

a

currency,

this

printed paper called a bond. This
is a liability, or a minus quan¬
tity.
It then prints another piece
also

out

Eccles.

the

Notes,

the

except

You

loan

of paper called

Reserve

and

by bookkeeping
The bank takes a piece of

entry.

Mr.

used for the bulk of

$210

there

The money

before

by

system we now have a "money"
supply measured by bank deposits

money

just

required for printing.
never

our

paper

rolling

was

change in the form of coins.

our

money."

the

selves, except

had

printing-

which we carry in
pockets/Everything we i.an-

our

without cost to them¬

money

the

becomes

money

As

were no

issue

of

so

process

restrictions

and

Silver Certificates and

nothing

except

system,

money

be any

but

money"

dle

Eccles: "That is what

wouldn't

is¬

credit?"

Government's

system is.

ing

^

there,

is

which

Federal

the right to

credit money.'

approxi¬

business and private transactions.
But this process also provides the

"Out Of what?"

Patman;
Eccles;

book

.

"We created

all

described

as

posits

get the money to buy those
billion dollars worth of Gov¬
.

at

this process the
banks
being supplied with fresh de¬

are

Congressman Patman: J'How did

securities

extended

Under

Banking and Currency, in 1941:

ernment

1945

currency

just

on

time

to

removed

press

Eccles at Hearings

House

the

The

rubber-stamp

of

have

Roose¬

intervals,
modified in the

by

been

in more detail

is revealed

Governor

fn

initial

by

yearly

that

This

sue

seized

Congress and

time

greatly

lars."

two

his

and

managed

they actually create by a

before

and
plus

restrictions,

was

they

contributions

provisions for retirement. But tnis

bookkeeping entry, a billion dol¬

you

definite

with

in

temporary

a

crisis period of only one year,

billion dollars worth of
bonds, "They debit their govern¬
ment bond account a billion dol¬

by

for

1932,

a

lars or

creds

Con¬

by

dollars

they wanted.

gress as an emergency measure

a pen.

During
the
hearings on the
Banking Act in 1935 the Governor
cf the Federal Reserve told how
it
was
done.
When the
bank
bought

authorized

was

money

transfers of credits
accounts are balanced.
They
merely

are

the

Conspiracy Against Gold

The

mentioned
money

.

a

L-208

year

Gold

before
Clos¬

and

have

entire
this
lion

these

protect

U.

been

S.

reserves

equivalent

to the

gold

production, for
period, plus about $300 mil¬
more.
Not an ounce of gold

from

national

reached

the

production

so-called

has

"Monetary

stock."

Following

the

letter

outlining

Volume

182

Number 5444

.

.

The Commercial and Financial Chronicle

.

(83)
/

the

the

death

blow.

Calling

surrendered

we

ereignty to

Regulations, restrictions and low
priorities shut off supplies. Then
came

the real power

was

closing of gold mines the drive

against gold became more definite.

through which
national

our

sov¬

foreign tribunal.

a

Then the Soviet and Polish del¬

on

egates,

with

Keynes

and

Alger

their network, throughout govern¬

Hiss,

ment
came

with phoney statistics
showing that gold mining was un¬
essential, that if it were closed
up

down thousands of

be

would

men

released to mine
necessary metals
and
the equipment and supplies
used

by the gold mines would be

shifted

to

this

of

national

defense.

Order

L-208

the

gold

closed.

were

and

As

we

know,

the

was

United

only

industry

States

dealt

mines
this

in

the

in

this

with

drastic way.

years

written

was

have

we

nearly

14

The Soviet timing for
of
gold mining

ago.

the

White

/

Was

given

from

as

to 20 years.

15

Already nearly 95%) of the indus¬
has

been

Few

ness.

could

forced

of

the

out

busi-r

of

closed

mines

Their plants

re-open.

were

wrecked, the mines full of water.
Their

managements

down

weighted

with

indebtedness,
with
nothing to offer for new capital.
From

other

know

now

secret

that

records

the gold mines

as

closed here the Soviets

were

we

were

supplied, under Lend-Lease, with
quantities of
ment

the

and

under

our

mining

equip¬
throughout

materials

war,

than

gold

higher

priorities

country had for

this

of

would

have taxed the

factories

our

for

Nothing could
to

through

onlv

was

termination

of

rhang^d
all

postwar

gold

Soviets

It
a

far

and

is

below

of

the

disappointing

their expectations.

highly

a

advantages the

been

technical

business

which cannot be
successfully con¬
ducted by mass slave labor
espe¬

cially

under

conditions

posits

where

climatic

their

gold

de¬

Failure to

supervision, investigation
icism

and

the

It

is

infor¬

United Nations and handles assets

of between $7 and $8
The

fresh from

cluding White.

the

Treasury

Reserve for his

London

notes

pur¬

where he

addressed

had

Parlia¬

on

debtor's

a

con¬

paper

sell

to the United States. He told them:
I

not

that 'Gold is

.

who

.

.

wrote

barbarous relic' and

a

institution

permanent
accords

to

this

member

every

the

government

explicit right to
control all capital movements."
this

complicated

befuddling

economic

the

here

came

talk,

and

called

he
the

out

double

tions

Bretton

Woods

Bureaucracy,

tional

OPA

Superstate
value
and

of

and

to

mass

equa¬

Mone¬

an

up

a

Interna¬

Financial

a

control

tions the United States

commerce

throughout the

entire

world, financed by American taxpavers, but controlled by debtor
nations.
This

a

bound

was

$35 price for gold,
agreeing not to change it witnout
Congressional action and the con¬
sent of members of the Fund.
Reserve

During

recent
in

evident

seems

of

of

members

It

serve.

the

the
to

seems

statements

Federal

Re¬

as

against the Fed¬

Notes

out of sight, and all re¬
be

can

suspended,

for

a

this

law

to

with

pretty

le¬

institution

on

and

itself,

that

can

we

will

it

get

be

the "props"

of

some

setting
main

of

the

in the stage

daily

our

is carried

scene

bank

lives.

The

through

on

accounts, credits and trans¬

fers which are

only written in ink

People have the. care¬
implanted impression that
is gold behind all their dol¬

paper.

fully
there
lars.

example:

For

Allan

Sproul,

the

Federal

Reserve

of

Bank of New York,

addressed the

Banking Association in

American

San Francisco in 1949, on

of

ject

certain
Free

the sub¬

gold. He was critical of
Congressional
bills
for

Gold

Markets

and

for

Here

verting currency into gold.
are some of his remarks:
"I

perceive

involved

no

this

in

con¬

moral problem
question of gold

convertibility."

gold
as

is
a

in the monetary re¬
backing for our money

barrage of
impressive

policy requires—that gold should

and

names,

since

been

ment

as

a

war

propaganda from an
list of organizations
most of whom have
listed

by" the

subversive.

represented

on

as

a

It

govern¬

was

mere

falsely

detail

of

"We

have

decided

coin

money managers

stead

of

being

approved,
a

mere




but
detail

in¬
it

seems

being ad¬
"Open Mar¬

are

their

by

Committee," (consisting of 11

the

and

bank

Federal

managing

presidents

Reserve).

the

of

They

purchasing

of their fiat currency

are

power

like interest

debts.

or

They decide whether

ings of today
practical

usable

or

your sav¬

of little

are

value

or

purchasing power has been
aged "out" of the currency.
The

lawful

United

arily

and

These

be

may

by

the

tempor¬

paper

cur¬

for convenience but it must

convertible

into

to

be

years

and

of the

coins

to

so^as

■

Control

the

controls

its

States money

was

exclusively delegated and en¬
trusted to Congress by the Consti¬
tution:

...

this

distrust

of

the

and of the fiscal

policies of the government."

$12 billion.

money

industry

commerce."

These

$24 V2

The debt burden of the national

$728 billion at this time, made up

ent

.

thereof,

and

of

foreign

says

nothing

is now about $3
meeting its pres¬

its

authorized

their

dollar

balances,

primary debt of

we

point

view this from

of

the stand¬

applying

holdings and trade
a potential de¬
time for about $12 V2

which

economy

with

regard to the price of gold.

This

was

if

us

and

gigantic

burden

the

eral

for

reported

other

noted

that

fact
this

question

amount,

is

this

therefore

and

tempted

Surrenders

such

a

golcl

since

has

been

gold

con¬

a

masterful

of brain-washing. It is im¬
planted in the minds and language
the people so effectively that

of

Continued

the

on

at¬

clearly

are

unconstitutional.
Tne

constitutional

,

to

power

them

Congress

the

license

redeemable
out

to

fiat

grant

did

which is

CORN EXCHANGE

behind

it,
requirement
Such issues and

essential

an

of lawful

ir¬

with¬

currency,

CHEMICAL

give

authorize

tangible value

any

of

not

money.

have

as

ducted. under

Public

been

BANK

con¬

Founded 1824

Law

84, are
likewise clearly unconstitutional.
This type of legislation was the
product of an era of thinking and
plans

for

dictatorship, which
on us by the for¬

a

put

ernment

at

This

was

our

C(?cndcnbe(/ CP/a/enient

the

period

of

the

home

at

and

abroad.
record that any mem¬

a

ber of the

Federal

Reserve,

of

or

ASSETS
Cash and Due from Banks
U. S. Government

.

Obligations

Other Bonds and Investments

out

Banking Houses Owned

of office,

rather than to

be

a

the

to

debauchery of our
Have they
ever
warned
the
President,
or
Congress, of the inherent dangers
money

currency?

or

the

things

they

Loans

Customers'

Liability

on

.

.

10,174,074.28

.

39,729,897.34

Acceptances

Accrued Interest and Accounts Receivable

Other Assets

above the

duties of

the

Congress. Few

President

people in

the

country have ever heard of these
men, or know who they are, or
whom

have

5,618,577.17

LIABILITIES

they

never
on

act.

been

their

Our

citizens

consulted

or

appointment

Capital Stock

.

.

.

$ 42,940,000.00

Surplus

127,060,000.00

Undivided Profits
Reserve for

Contingencies.

Reserves for Taxes,
Dividend

22,973,446.29

.

.

.

.

Expenses, etc.

Payable July 1, 1955

.

.

.

.

.

Their

work

is

is shrouded

single

decision

could

throw

not

in

our

but

a

economy

ominous

1790

were

powers

charted

when

they have
long ago

as

Mayer

Rothschild

said:

"Permit
trol
care

the
not

to

me

money

who

of

issue
a

writes

2,147,000.00

2,755,473,131.65

4,297,206.41
.

$3,009,760,216.36

Securities carried at $173,701,000.00 in the foregoing statement are deposited

and

con¬

nation and I
the

public funds and for other

purposes

required by law.

into

and
destroy the property
solvency of our people.

The

as

7,262,941.97

supervised

secrecy,

announcement

chaos

assumed

6,783,276.77

40,823,213.27

or

to secure

or

192,973,446.29

.

Other Liabilities

Deposits

.

.

Acceptances Outstanding (Net)

choice.

and

9,075,522.27

$3,009,760,216.36

called

were

frightening that 11 private
bankers,
sitting
as
"The
Open
Market
Committee,"
have
the
audacity, to assert the powers of
a
superstate, placing themselves

and

9,871,297.74

1,137,352,006.18

.

It is

for

322,020,975.50

.

.

.

817,398,630.69
658,519,235.19

...

to do?

upon

and

$

.

State, Municipal and Public .Securities

the Treasury, has made a protest,
refused to act, or has stepped

or

party

cf^ctuliCion

of business June 30, 1955

that time.

betrayal,

Is there

At the close

gov¬

cr?

Broadway, New York

over

eign agents in control of

Yalta

t

165

laws."

Convenient

Offices Throughout Greater New York

Every Banking and Trust Service at Home and Abroad
Charter Member

Kew i'orh Clearing

Member Federal Reserve System

tho

was

job

merely

gold as
for
this

represents

this

establishing

But this fiction of the

tent

should

not

since

of

coin.

having

of

reserves

but

it

and

dollar"

coins,

equivalent

released, in whole or in part.
Treasury does not advise the
this

gold

the

until

these options have been exercised

of

outlaw¬

1934

of

they effectively
nullified the very formula in the
Act declaring "the gold content o!l

re¬

as

purposes,

Act

Reserve

ing

it cannot properly be
or

the

0i

Propaganda

having outstanding options'on this

be

feature

When Congress passed the Fed¬

amount and

public

essential

Gold Content of Dollar Poisonous

This $12 V2 billion of foreign de¬
mand
gold is the equivalent of

or

an

conspiracy against gold.

of

debts.

serves

the result of following
of economic stupidity

as

formula

a

fully called for
holding an almost
empty bag with only about $9
billion of gold left to support our
would leave

face

we

face

we

mand at any

about surrendering that power to
a bank
committee, or to a foreign

Tribunal,

to

only

the entire $9
billion
of
gold
balance toward
$274 billion, a secondary debt, of
coverage of the $210 billion cur¬
questionable
authority, totalling
rency and deposit total
we
find
$244
billion
(arising
through
that our tangible gold covers only
loans, guarantees and other liabil¬
4%. If the Treasury repudiates all
ities for which it is responsible)
and its outstanding currency and foreign gold delivery obligations
(the so-called "gold bullion stand¬
deposits
amounting
to
another
ard" it has followed for the past
$210 billion.
20 years), the entire gold stock
The total stocks in Fort Knox
would cover only 10%.
and
other Treasury- deposits, to
During the 100 years of tho
which the government lays claim,
gold standard it was deemed es¬
are
slightly more than $21V2 bil¬ sential to have a gold coverage oi
lion. Under our policy of selling
40%.
gold to foreign Central Banks, for
Here is the appalling situation

of

percentage
Constitution

of

up

with

hand the Treas¬

on

stock

short

add

that

so

obligations.

If

The

"The Congress shall have power
to coin money, regulate the

amounts

billion

gold

ury

billion

government appears to be at least

two

billion

$211/2
Our Inadequate Stock of Gold

•

of United

gold reserve, now seem to re¬
quire this reserve to be more than
a

of

menace

when he said:

controls

nation

a

President Gar¬

ago
us

of power,

"Whoever
of

,

which the Federal Reserve asserts
it is legally compelled to maintain

»

warned
sort

billion,

the

represented

rency

be

man¬

is still
gold
according
to

coins,

statutes.

that

of

currency

States

silver

no

tomor¬

Their record to date is

row.

available

had

been

that

this

the United Nations Charter which

just

—

for private use
country."
"The principal argument for re¬
storing
the
circulation
of gold
be

not

in

century.

a

now

them and that these

voted

"We have decided that the place
for

weary public ilnder a tremendous

over

claimed

ministered

in

President

defi¬

by the Fed¬
eral
Reserve
that
Congress has
delegated its monetary powers to

answers.

Then, too, there's the fact that
the Federal Reserve Notes are just

serves

put

is

conversa¬

a

supply—not in the pockets or the
hoards of the people."

was

Statutes for

our

It

were

carry

sure

desired

the

all

the

desires,

only has to
tion

for in

sheet of -mgtal

accomplish

it

loopholes
sieve look

make.a

to

solid

a

sufficient

are

this

unlawful

the legal

which have been

money

management

etc.

on

in

The

outstanding
25%, there were
other
quite
elastic
provisions
which permits these reserves to
be dropped lower, and lower, and
lower.
So low in fact that they

There

only

coin."

reserve

pass

not

are

defiance of

specting

set

84

changed to

can

in

for

Law

Many
field

'

unaware

nitions of money and the laws re¬

was

Reserve

was

believe that he is

to

men

their

,

the courts.

that the very decisions he has an¬

and the provision

Public

1945

eral

hard

the

of

value

40% of gold certificates to be car¬
ried

money

the
Constitutional
people
to
have
with tangible value. It is

with the

freedom they have been given, or

in

by one of the
complete dis¬

find

can success¬ contemplated outright sale of the
assumption of gold for the dollar at par value.
The present outstanding domes¬
power
if
challenged,
on
dollar
Constitutional
obligations
grounds, through tic
against

of

group

defend

such

for

regard
rights

strong

have taken.
When

them

to

No

fully

considered

arrogance

grow

remark
we

itself.

a

totalitarian

of

measure

years

done

put intrinsic value into the money

Claims

Monetary Powers

the

money,

trade,

money,

credit

and

mesmerism

tary Agreements which set
World

has

to maintain the

niency

empire which he proposed to

of

and

lengthy dossier in the Senate Re¬
port on Subversives.
Through
these two organiza¬

Federal

these

officers

Fund,

He had also been

Conference

order

Communist

concerning his hastily

worked

the

technical Secretary of the Bretton
Woods

In

managers

ket

billion.

of

Coe, was only dismissed in
December, 1952, after being ex¬
posed as a communist with a rec¬
ord of cooperation for years with
their most powerful agents,
in¬

in

a

just arrogantly

After

Secretary

Frank

vast

poses
White joined with Henry
Morgenthau and Maynard Keynes,

a

spent.

of the

period of time, then extended, and

organizing

Federal

plan

cecides
be

extended, and extended, etc., etc.,

Apparatus

as

up

writers

White Built

it

Fund

been

one

put

specialized agency

a

like

"Was

no

fantastic

gold production.

ment

to
We

it will

how

and

serves

mation, crediting them with

ceived

the

money,

crit¬

or

to

based upon Soviet inspired

and

answerable

own1 officials.

its

but

has

can

will be much more vocal
than merely to express distrust.

but
as

on

managers

they

nounced

in perpetuity

up

un¬

has led

by

After

set

was

imaginative

this

stories

cruel

located.

are

derstand

the

to

financial dictatorship, free from

up

production

has

an

pre¬

Treasury gold.

our

lend-

deliveries.

In spite of these

It

supplied
that time.

during

condition

lease

years.

have been

Americans

This

which

capacity of

five

was

Woods,

of

some

equipment

Dexter

This

Bretton

and

accomplish tne ex¬
change of various currencies, but
in reality a trap to sluice away

unfilled Soviet orders for all

types

Harry

director.

as

sumably

its vital defense purposes.
Also
that at the close of the war there
were

architects

tne

with

offshot from

destruction

try

Fund,

where

The latter from which

quoted

tary

All

finally produced the WPB

became

what

thing

one

money

out

launched the International Mone¬

departments the conspirators

is

There

which
rely,
that when the people really find
:

the.

23

.

House Association

Member Federal Deposit Insurance Corporation

page

24

24

The Commercial and Financial
Chronicle

(84)

Continued

from

quire

23

page

We

are

race

it.

armament

with nations which

in

suicidal

a

have threatened to destroy us

The
reference

Conspiracy Against Gold

to

attempts to explain

the

laws

and

fiction

it.

arithmetic

of

The average

gold.
The per capita
days representing
the national obligations was about

facts.

gives up at
point and remarks that he
cannot explain it, but must leave
it to the "experts."

and
In

others

ticket,

its

their

just

are

those

to

there

is

favorable

enough

not

price index is now at
The buying power of
dollars are at their lowest.

public

legal

and

proaching

an

debt

secondary
taxes

has

debt

limit

the

have

reached

is

its

unauthorized

rapidly
size./

same

confiscated

ap¬

Estate

vast

areas

discussing is "price," hence they
in a state of perpetual frus¬

of

tration.

fiscation of medium and large in¬
comes
and
are
a
heavy burden

The

propaganda

dangerous effects
should

be

able

has

had

think

to

its

a

highly

very

clearly

fluential

placed

member

of

and

important

their

If

of

their

other

and

demand

undoubtedly
We

demand

might

quite
this

what

from

be

trade

balances

would

fol¬

the

cer¬

demand

from

holders

Government Bonds and from

of

balance for

important countries
standard.

of

The

gold

our

20

years.

the

are on

great

ma¬

is

stock

held

They

are

lowing

of

than

less

our

half

of

taxpayers to

ac¬

also

future gold

equiva¬

reserve

about

money is stability and we
vigorously opposed to any
change in the present gold con¬

<;%

tent of the dollar.

Total in

Demand

Demand

Demand

Demand

Billions

that
as

gold does for
standard

a

stick

of

against

the

length

If

The

yard¬

Billions

Billions

Billions

start

who

made

this

Intrinsic

are

and

than

money

a

gold

use

lost

quo¬

tne

measure

lion

national

would

show

stock

the

of

dollar

gold

to

have

fact

faith

The

to

$35

in

abroad,;
has

lar,
ered

to

them

bills

in

it

and

the

Con¬

repre¬

concerning

of

our

cit¬

our

laws

we

but

money,

The gold price must be substan¬
tially increased. It is only by this
method that sufficient
gold may

obtained

minimum

be

even

under

the

gold

a

These facts

program.

unpalatable to
of redemption,

ponents
are

meet

demand

redemption
may

to

the

pro¬

but

cally all
Just
to

precedent

dent

In

not

practicable

the

then

sible today.
On the date
1879

the

than

before

buying
was

price

What

becomes

was

impos¬

resumption in
index was lower
Civil

of

War.

The

dollars

paper

greater than when they were
convertible into
gold in
bellum days, the
public debt

freely
ante
was

being

tax

had

reduced,
been

had

been

and

all

tripQ

wprp

w

rm

on

the

income

suspended,

budget
decade

plenty of dollars in

hands
call

that

so

on

our

other

their

nations

Treasury
time, and

can

to deliver
with their

a

own

Presi¬

year ago

issued

for

the

orders to

and

bulk

of

essentials

many

are

started

program

to face the

great

fact that

the

on

rest

they

demand

from

them

free

for

war,

we

our

and

imports

continue

duty¬

they enjoy the com¬
which they have become

to

They

gold.

our

bulk

that

shall

accustomed.
for

the world

that

so

forts

of

were

Now

of

it, or
pleasure. We

greedy

owti

they

take

are

it at

the

can

debtor

the

their
na¬

tion now, but

they are still work¬
ing industriously to pick our car¬
cass

clean.

lated
be

the

the

Treasury circu¬

propaganda

world's

abroad

the

in

United

the

and

during

lost

about

past

this
$2

claiming

largest

gold, but practically
to

to

balanced

important
a

tr

lrl

gold

4

the
for

a

coun^

standard

gold has
States from

period

we

worth.

years

have
Our




can

do better else¬

the

if

we

Treasury has attempted to
their

chagrin by pointing to
the prices of trading on the new
gold market in London, as evi¬

dence that

our

$35 price is correct,

but this is not the
proper
tation.
Gold

accumulate dollars,

into the market

came

If

as

in

countries,

the

and
uu"

economy

hands

in

and

supply

is

not

a

confession

a

of weakness.

Without
in the
a

and

no

If

position

we

magnificent

those

in

all gold held or bought
the United States Treasury or

charge

mints,

national

of

or

Federal

defense make that fatal

error they
properly be chargeable with

none

of

and

responsibility

charge of

our

Price

those

of

monetary policy?

for

Gold

National

a

should

be

from

this

hereafter be sold by the
Treasury
by the Federal Reserve Banks,
or
for the account of either of

or

these, directly
free

gold

defense,

that it is the most

in the world.
It should rank

find

we

the most

nec¬

stockpile but

we

it has been
neglected and ignored
in the plans of all defense

depart¬

ments

government.
United States was

the

If

denly

involved

the

war

be

the

of

in

pattern

a

of

tofore

in

faced

might have
no

have

counted

heavy
In

allies.
as

view,

any

friends

our

now,

our

we

dissipated.
holders
vital
it.

<

It

only

sinew

the

owner

remains

to

gold.

of war

It

present

for

their

make

becomes

and

they

They also control the

for

no

Our power has been

dollars

of

hold

gold.

are

-]on£er the dominant gold
in the world.

here¬

history.
We
enemies and per¬
Many whom we

Remands against

their

world

new

our

many

haps

sud¬

events would

totally different from

world

a

own

sources

supply

of

newly mined gold.
If we had to
buy from unfriendly
nations, or settle with enemies,
what would
paper

proud
as

we use

for value? The

dollars of which
could

well

be

we

are

so

valueless
the paper German marks which
had to be used in wheelbar¬
as

loads to buy loaves of bread.

interpre¬

of

terms

Only

a few years ago the Soviet
soldiers, drunk with power, were
supplied with bales of our cur¬

rency,
paper

of

their
mwi.

currencies,

is

and

Treasury,
White

foreign

printed

lin

the

plates,

ink supplied by our
when
Harry Dexter
in

control; and in Ber-

tossing it around,
j pc, giving
contempt, giving $200 ui $300
or «p«juu
$5 wrist watches. That was

with
vviui

for

was

they

from

were

have

we

a

in

any
United

the

States, its Territories or posses¬
sions, including Alaska, for the
purpose of depressing such market
and
thereby lessening the price
value

We

of

have

gold."

sound

abiding

collective

faith

in

the

judgment of the

American people, who can, if
they
desire, release the greatest com¬
bined buying
try on earth.

the

power of

convinced

are

freedom

any

coun¬

that

authorized

under

in

this

bill, which is in reality a restate¬
ment of basic
property rights un¬
der the Constitution, the natural
impulses of the people will soon
gold

some

their

values

With

its

so

in
as

their

to

gold

free

value

own

desire

stored

to

have

safety

give

some

savings.

and

the

to

their

resting

future

of

on

gold

mining should eventually be safe,
and we in the industry, will have
the
opportunity to conduct our

sales of goods and large stocks of

business in the American way, as

merchandise, but if these are
merely the result of the growing
fever of inflation, and the
appar¬

other business is conducted.

Glore, Forgan Adds

ent great growth of bank
balances
be cut in half, or in

must

(Special to The

thirds,

then still smaller, to get true
comparisons of life and its com¬

pensations today, with what it was
before we began to live with this
flood of fiat
currency, we are liv¬
ing a dream life and will face a
bitter waking at the end of the

ben is

(to.,

Midwest

of

but

to

common

turn to the

use

and

have

a

and

our

we

re¬

of sound and hon¬

with
tangible value,
work

obey the dic¬

sense

safety, that

money

the

of

Stock

so

that

and

earn

New

when

save,

we

we

can

Street,

York

and

Exchanges.

to The

Financial

Chronicle)

NEW HAVEN, Conn —Walter J.

Zeiner has become affiliated with

Chas.

W.

Church

Scranton

Street,

Downs with

feeling of confidence for

&

Co.,

members

New York Stock

209
the

of

Exchange.

background of

a

Salle

La

the

Joins Chas. Scranton

only because of Consti¬

national

Chiionicle)

Glore, Forean &

South

(Special

tates
own

with

now

135

members

road.
It is not

Financial

CHICAGO, 111.—Donald R. Stro-

and

tutional law

strategic metal

as

that

high rates of employment, a
healthy stock market, increasing

est

essary metal that

desirable

indirectly, in

or

market

deposit boxes

is

be

sold for commercial use or
for the arts and that no
gold shall

real

analysis of the subject that
change in the Treasury gold pol¬

shall

monetary gold and
gold may be here¬

said

demonstrate

evident

by the

or

Banks,

after

We

to the

as

offices,

assay

Reserve

construed to be

we

of guns

array
ammunition.

Con¬

"That

are

though

as

by

a new and
impor¬
tant purpose, expressed in Sec. 3—

and

adequate gold

same

had

an

consider gold from its po¬

we

sition in national

row

The

and

story would be different

once

where.

own

wait

but

purchaser
no

several

billion

Other countries

cover

can

collections of

years

its

London market

the price of gold against
themselves. They figure that they

metals

our

largely if not entirely depend¬

ent

to enter the

to bid up

started

our

buying price for gold is too low.
of

the

power

Sherman

convertibility.

test.

have

we

plans for

getting this

have had

come

is

indicate.

aggressive and needy buyer.

and
materials, to eliminate
bottlenecks in defense supplies.

to

This

practi¬

als

pointing

resume

hatred,

expand stockpiles of strategic met¬

of

to

some

Eisenhower

proving the
would proceed smoothly

decided

done

was

the world.

future and about

program

when

even

recently,

For

1879

this

many

winning friendships

over

make

unavoidable.

historic

of

sums

they

The proponents
argue that there

is

and

must

have sufficient
gold to permit con¬
vertibility or t e attempt would
be futile and disastrous.

be

the plea of

we

desirable ob¬

a

right of

basis

all

and

dislike

demand.

an essential

economies

unregu¬

for America, but we have not won
friends.
We face open
hostility,

They like

because

Convertibility is
ject,
izens

and

1945,

higher price than the

them

content of the dol¬

on

much

a

of

the

gold

Knox

the

growing volume of general busi¬

repre-

translation of its price into dollars

With

dollars

since

reckless

a

that

ness,

and

We have

by them and they
gold should be deliv¬

that

argue

sents

value

overfed

claimed

as

a

greater

$48.30

lated river. The astronomical

per ounce.

this

to

permit

far

of

$83.65

stagger the imagination.

Expecting Gold
Redemption

the gold

$136.85

that

and promoted by
of economists, calling for

refer

the

at

American

particularly

realize

a

House

they also have

broad

who

the conversion of dollars into
gold
on
the basis of the present
gold

sents

29.67

This

gress supported

to

stock,

National Defense
of

time of

in

Issue

those

of

price of $35

in

been

on

groups

$208.25

woul&^not

flow

impor-

we

war,

9.89

advice

several

Fort

It

would
Gold

the

the

Clair Engle, of Califor¬
would:

bills

"Authorize private transactions
involving the sale, acquisition, or
holding of gold within the United
States, its Territories and possessions, including Alaska
and

icy is of paramount public interest.

ity.
The

consider

badge of strength but

New

gold

gold

here.

costly

a

task.

we

2.44

51.51

condition

in

and

The

a

1% demand for convertibil-

gold in Fort Knox."

are

global

12.5

these

meet

price,

nations

There

84.27

in

stand-by costs

absolute necessity

It

(per oz.)____

present

"our money is safe because of the

Futility

17.17

of

j^nce of gold in the orderly operaJ]01" J°f a peacetime economy, and

duty

for

dismal

When

in

7.32

them

tedious

and

2.74

the

lOp of tangible worth.

is

a

stocks

keep

2.1

gold at any
own gold stocks
substantially in¬
creased, it would be foolish for

only

have had

28.09

128.15

present

ciemands

find that the

we

12.5

for

source

Is there any difference

"

present $210 bil¬

outstanding

entire

the yardstick

as

12.5

Billions

in

revalue

mere

we

14.64

12.5

sources

Their rebuilding would be

8.22

•

no

nia.

treason.

Necessary gold price to

to

ingredi¬

mere

been

kota,

gressman

bv

dependable

Thursday, July 7, 1955

.

Senator Francis Case of South Da¬

capital and

gold production have taken many
years
to prepare and there has

6.3

/

16.44

tangible

essential

more

24.4

12.5

12.6

it

this to

is useless,

The great

'

state¬

has

__

Reserve

Total

tation.

to

Excess

__

-27.4

244

_

274

42.85

_

21

it

times referred

"our dollar

210

Contingent.
Foreign Demand

changing

yardstick,

Bonds

1%

here,

expect

it produces. Mere mass

Billions

Deposits.

Govt.

measure

value.", Surely, that is not

ents for

If

Govt.

end of trouble."

many

stability.
value

to

the

that

fact

half its

value—a

we

Currency,

serve

no

man

has

to

of

would make
ment

is

us

which

other values.

the

The best thing

H%

to

gov-

great speed-

production

futile

manpower

would

10%

are

gold
be

a

not suffice.
This is an
industry
requiring special skills and expe¬
rience, or it can waste more than

lent to 50%

of what the gold de¬
mand totaled.

call for

happen quickly. The mere pour¬
ing in of credits and capital would

extreme

on

minimums of 6%, 3%, and 1%.
Provision is made for a mini¬
mum

price

a

what it cost

10%.

calculated in the fol¬

so

table,

in

Up

would

cur-

and deposit holders, trusts,
insurance funds,
etc.,

rency

necessity forced the

ernment to

to

and

most

tainly demand their full $12
billion, moving in at once and not
risking loss of their opportunity.
The

jf stark

gold

be

illustrate

op-

for

lowing types of obligations.
The foreign Central Bank

con¬

option to the rest of the world,

on

thing

in¬

pensions,

jority

in¬

sav¬

they have the

their

would

heavy.

and

currency

bonds

vestments.

portunity

of

future

would probably range above

at

most

income

point of

the

incomes, the budget has

No

Administration:
"The

the

for

l'ear

of

out

gold

present

our

and

property
near

people now suspect that
has no lasting value, they

distrustful

are

been

and rise above it.
To illustrate,
wef quote from a recent statement
of

are

The
money

for small

people who

on

private

taxes

are

economy, we are

ings,

The

The

gullible.

They swallowed the poison years
ago and can't get it out of their
systems.
They insist on talking
about "value" when all they are

peace

highest.

paper

meal

at

was

threatened.

wars

contrast

gold.

economists wno

subject

no

country

conditions,

It's in this area that we find the

the

those

The

$47.

person

are

sta¬

on

and

living under
the monetary hazard of war. The
per capita debt of today is about
$4,500.

and

of

debt

this

fanatics. Some

England's influence

bility

in

move

with

collides

with

until
Then

is automatic,

it

one

make

our

just one of the escapades for which
our taxpayers
have had to settle,

.

.

Apgar, Daniels

(Special to The Financial Chronicle)

future.

CHICAGO. 111.—Cecil J. Downs

That money may be paper cur¬
rency, for convenience, but it must
have actual metal values behind

has become associated with Apgar,

it, metal coins of intrinsic value,

Stock

that

we

receive when

mav

ask

we

for them.

Daniels & Co., 120 South La Salle

of the Midwest
Mr. Downs was

members

Street,

Exchange.

formerly with Reynolds & Co. and

Historically and legally
these must be gold and silver. The

thereto he

planning for this is another step.

business in Los Angeles.

We
to

are now
save

from

national

complete
out

passes

into

concerned with

our

of

stock
If

Treasury

re-

Treasury
in

its

have

the

chase,

own,

refuses

gold

inherent

to

price.

face

People

right

(Special

to The

Financial Chronicle)

to

is

Co.

Incorporated,

shrinking purchasing
they

with

now

A.

G.

Becker &

206 West

State

Street.

pur¬

Joins Hentz Staff

and hold gold for their

of the fiat
currency

Prior

the investment

ROCKFORD. 111.—Jack E. Per¬

personal safety and security. They
will thus pass judgment on the
ever

Chicago.

in

was

son

placed.

reality

in

Co.

With A. G. Becker Co.

it

and

foreign hands it cannot be

The

&

trying

gold

dissipation.
the

Bache

power

are now

compelled to accept.
Their judgment exercised in the

(Special

to The

CHICAGO,
has

man

H.

Financial

&

Kohl-

associated

become

Hentz

Chronicle)

111.—Jerome

Co.,

120

with

South

La

Salle Street.

market, can effectively set a
higher dollar price for gold which

open

With Hicks & Price

will

repudiate the Treasury poli¬
and present gold price.
The
way
would thus be opened for
Congress to compel a proper price
cies

for

our

national gold stocks.

This will be
national

a

long step toward

solvency

and

(Special to The Financial Chronicle)

CHICAGO,
Gove

has

111.—Clarence

become

connected

H.

with

Hicks &

Price, 231 South La Salle
Street, members of the New York
and Midwest.Stock

Exchanges.

honest

money.

Two bills are now pending in
Congress to provide such a free
gold iiictiivcL. These are uuputdic
guiu
market. lucac die duplicate
bills sponsored in the Senate by

Philip Weisbhsm
Philip

Weisblum,
partner
in
& Co., passed
away
June 26.

Dunscombe
lyuiiowinuc
on

Volume

182

Number 5444

.

.

The Commercial and Financial Chronicle

.

(85)

Continued

from

$7 to $8

2

page

share

per

three to

some

and

four years hence.
American
sold

in

I Like Best

66 in

1953

declined

and,

At

a

It sub¬

around

of

New

substantial

Stock

York

Exchange

construction

often

Continued from

into the phar¬
biological fields
through its Lederle Laboratory is
the

factors

which

American

or

dis¬

Cyanamid

its

margins in the
field are high and
division probably con¬

Let

substantially
more
to
overall earnings of the Company
it

does

sales.

to

Lederle

aureomycin and
antibiotic

this

the

principal

broadof

chemical
than

more

of

sales

of

research

high

organization

caliber

expected to be at

coming

years.

of

these

age

directed

outlays

the

and

cancer

Who, for example, for
this could

department

drug,
aureomycin

closely
and

over

of

some

eral

related

Sev¬

including Pfizer,
this product.

All
probably profit materially.
Other
important
research
de¬
velopments by Cyanamid are a

superior synthetic textile fiber of

and

Dynel,

economic

metals

from

of

convertible

$246

$61

book

of

stock,

value

the

of

as

last

Sales, which set a new
for
1954 at $397 million,
fairly steady expan¬
sion over the past two and onepeak

shown

half

decades,

as
have earnings.
earnings of 78 cents in

Per-share

1929 had climbed to $2.05 in 1937,

in

$2.64

were

1950-51

peak of

1953 and

1949,

reached

$4, and

over

of

ber

earnings

1954

factors,

tracted

a

the

including

starting-up

Fortier

depreciation

1954), and

plant,

a

in

num¬

a

pro¬

a

share

in

inventory recession

in chemicals. It

this earnings

expenses

accelerated

(45 cents

an

now

appears

trend has

course,

not

of

based

growth

upon

that

the

expansion

Company's
standing
stocks

has

has

Continent

could

years,

i

benefits

analyst

of

projected

for

One

the
out¬

chemical

earnings




them in such

at

connected

Investment

Dean Witter Adds
(Special

Joins Powell & Co.

to The Financial Chronicle)

SANTA
is

ANA,

Calif. —Ben

(Special

C.

with Dean Witter

now

Financial Chronicle)

to The

FAYETTEVILLE, N. C.—Don¬
ald T. Midyette is now affiliated

Co., 516 North Main Street.

with

Powell

and

Co., 120 Ander¬

Street.

son

Joins McCormick Co.
(Special to The Financial Chronicle)

Hess & McFaul Add

!
CHICAGO,
Brinkworth is
McCormick

111.—William

now

J.

(Soecial to The Financial Chronicle)

affiliated with

PORTLAND,

&

Co., 231 South La
Salle Street, members of the New

H.

Hartford

Ore. —George F.

has

Midwest Stock Exchgs,

Howard Pill

of Hess &

joined the staff
McFaul, American Bank

Building.

York and

Mr.

MONTGOMERY, Ala.—Howard
E. Pill is engaging in q

business

South Life Building.

the

Investment

LONG

Mr. Pill was

Opens

Moore

T.

BEACH, Calif. —Elliott
has opened offices at

4151

East Carson Street to engage-

securities

a

business.

OF CONDITION

STATEMENT

30, 1955

ASSETS
Cash and Due from Banks

$10,133,638.41

United States Government Securities

Municipal Securities

13,229,512.79

12,472,953.19

...

Other Securities

14,339,011.85
818.601.20

Stocks
Bonds and Mortgages

1,930,222.92

...:

14,781,694.85

Loans and Discounts
Bank Building

571,180.29
491.676.26

Other Assets

$68,818,491.76

LIABILITIES

Capital

$ 2,000.000.00

Surplus

6,000,000.00

Undivided Profits

975,335.10

General Reserve

510,937.28

Unearned

■■

-

22,400.51

Discount

Reserves for Taxes and

92,235.46

Expenses

59,217,583.41

Deposits

,

Built-in Costs, Too
What

so

many

of

"cyclical snubbers"--as

the

architects

someone

New Deal devices to head off

of these built-in

has called the various

depressions—fail to realize

KINGS

they

factors of

are

at the

same

time installing built-in cost

major, proportions. These cost factors

are every

COUNTY

TRUST COM l'A.M
[ilabhihed 1889

FULTON STREET at
In Ihc Heart

is that

pre¬

in

Co., Inc.

Slate and

was

(Special to The Financial Chronicle)

Old

formerly in charge of the securi¬
ties division of Crescent Finance
&

E. T. Moore

securities

in

offices

from

Hartford

viously with Zilka, Smither & Co.,

Opens

$68,818,491.76
■

Se¬

members Of
the New York Stock Exchange.
-

amounts.

and most of the others from whom these

with

&

Corporation,

this

plant, along with

products.

curities

rated, 135 South La Salle Street.

become

wage

accelerate

potential

affiliated

now

the start.

reversed.

anticipated

from the Fortier

erts

Mid

power

one

have

i

Looking ahead several
rate

consumers

concessions have of late been wrung
would have preferred to avoid higher costs and where
possible to reduce prices. We suspect that had labor lacked
almost complete monopoly power as well as the favor of
the politicians, they would have been willing to hold out
with much more determination, quite possibly with suc¬
cess
against the raids on their Treasury. We are quite
certain that they would have been obliged to do some
such thing had not both inflation and inflationary fever
already deeply infected the rank and file of the consumers
of the country. As it was, theirs was a losing battle from

were

setback

due to

otherwise would

magnificent

strike, lowered prices for

antibiotics,
at

was

is, of

process

steel concerns,

$2.95 for the year just ended. The

Company's

Unless

tions which today have succeeded in enforcing "infla¬
tionary" demands upon manufacturers and others grew to
their present strength with the encouragement and actual
support of the New Deal and Fair Deal, both of which
have again and again and again gone to the people boast¬
ing of their achievements in the form of higher wages
and the like which are protrayed as unmixed economic
blessings. We feel certain that the motor companies, the

and
stock

common

report.

have

is

Ripley & Co., Incorpo¬

And, let it not be forgotten, that the labor organiza¬

of

represented by 8,726,050 shares of

$28.10

Quirsfeld
Harriman

CHICAGO, 111.—Arthur C. Rob¬

At the Close of Business June

$117

million

preferred

million

ores.

of

(Special to The Financial Chronicle)

111. —Frederick

Naturally these funds come into the market, sustaining
prices and making possible exorbitant and uneconomic
demand by monopolistic labor unions.

of

recovery

consists

debt,

With Mid Continent Inv.

C.
with

into the hands of the public sometimes by deliberate

which

low-cost

low-grade

Capitalization
million

make its appearance.

trouble, but for the time being it puts funds into hands

chemical metal refining process to

permit

ever

ter—up with debt which is certain sooner or later to give

revolutionaiy

a

CHICAGO,

have

Monsanto's

ana

far called only "X-51,"

so

costs

Orion, Union

the type of duPont's

Acrilan,

Producers whose

of the ingredients in
the New Deal prescription for perpetual prosperity. Vari¬
ous devices, such as deficit financing through the banks,
various give-away programs, stimulating (or should we
say over-stimulating) th6 enlargement of bank credit, and
a dozen
other means are at hand for the purpose. They
load the consumer—and all the rest of us, for that mat¬

will

Carbide's

systematic

continually. Something often called purchasing

This

is taking
market
for

the

developed

no

design of economic planners and always to the joy of the
political miracle worker.

to
ter-

antibiotics.

companies,

have

happened had there been

all

&

is put

toxic and which

broad-spectrum

Harriman Ripley Adds

Garside

up

ramycin, but which has proved to
be less

paid, and we are certain that it would be
forget that fact. Yet we must recognize the cur¬

rent situation for what it is.

buy at the higher prices and will do so, the producer
simply can not permit even monopolists to run his costs

of

Pfizer's

a thought of the ultimate con¬
that sooner or later the piper

are, sure

can

broad-spec¬

new

a

foolish to

run
up by factors beyond their control can not
always simply raise prices to recoup. If it were so simple
as that,
little or no resistance to eternal enlargement of

earningswise is the recent de¬
velopment by American Cyana-

trum

We

will have to be

been

cures.

tetracycline,

have

moment supposes that

a

the Federal Reserve banks?

returns

for tuberculosis

research

outgrowth of what

Of course, we do not mean to
suggest a completely
fatalistic attitude toward all this, a simple reckless swim¬

(Special to The Financial Chronicle)

over-enlargement of the money supply by means of
Treasury deficits financed through the banks, particularly

been

Of more immediate significance

mid's

•

costs would

searches

are

inevitable

occurred at ealier dates.

is

have
been
historically
higher.
Among the more spectacular pro¬
jects now undergoing investiga¬

tion

place of late is but the

Real Inflation

are

has

by powers
control. What has been taking

no

are a

ments

drugs and' phar¬

where

inflation in the latter half of the 'Twenties

no

usually succeeds in beclouding certain other facts
vital part and parcel of the economic develop¬
of the day.

which

rising rate in

a

was

—but it

A greater percent¬

toward

maceuticals

results

and

they have

sequences.

not

enterprises. This heavy research
policy is relatively young in com¬
parison to the other companies,
the

which

ming with the tide without

popular that inflation is synonymous
higher commodity prices. Such an idea not only will
stand up under close scrutiny—under such a concept

there

pared with the average of around
3% for other diversified chemical

but

over

not—by

com¬

as

economic world that has been created for them

notion has grown so

industry, averaging

5%

that these wage
or that

isolated phenomena,

with

1951.

American Cyanamid has one of
the largest
research budgets in
the

are

who

for Cyana-

reasons

mid's sharp sales gain in

supposed, however,

some of the very elements in the population
begrudge them. The fact, when it is a fact, that these
wage boosts result in higher prices prove nothing about
inflation, or the real cause of it. It is unfortunate that the
or

is

one

was

be

not

these, it is fruitless merely

at the labor monopolists who

advantage of what is offered them—and defend their
phrases they borrow from sacred New Deal
lips. It would equally be out of order to lay blame upon
the employer who simply finds it out of the
question,
practically speaking, to hold out against these raids. Each
of them has his
competitors. They, too, must live in the

they have been achieved without the assistance—realized

best known for its development of

spectrum

it

as

censure

action with

driving them up at the expense of the buyer of
Economic progress does not lie in this

triumphs of the unions

point the finger of

take

direction.

Profit

drug

It

products.

drug

tributes

than

else of

the

from other leaders in the chemical

industry.

We See

As

and

tinguishes

ethical

In circumstances such

page
to

Diversification

of

first

company.

maceutical

income must soon be lost in rising prices. It is
illusory in any event since in one degree or an¬
what is given to one element in the
population is
simply taken by force from others.

other

cultural

chemicals, fine chemicals,
plastics
and
resins,
pigments,
medical supplies, and a chemical

any

average
in part

and

other exchanges.

61,

as

and credit tinkering, in¬
come redistribution, labor
pampering, and all the rest are.
This being the case, the apparent
advantage of the larger

reasonably

subject to

deeply embodied in the economic structure

as

of the other effects of currency

appreciation over a several-year
period. The stock is listed on the

range.

around

appears

common

priced and

41

past year,

narrow

levels

current

the

common

1951.

to

the

over

has fluctuated in

whit

taking into consideration the

expansion factors discussed above,

Cyanamid

at around

sequently

one

25

^

o

ihe

corner

of COURT SQUARE

of the Civic Center, Brooklyn

Member feeferol Oepoul Mforooce

Corporation

26

The Commercial and Financial Chronicle

(86)

We

Continued

jrom page 3

may

somewhat

of
prices and

stocks results in lower

panic ensues. It feeds upon itself
just as it did in the rising mar¬
a

ket.

favorable

earnings,

sold.

are

and

worse

of

rationalization

the

without

the

for

turn

a

conditions

business

Finally

take

Just

stocks

more

prices

as

were

propelled to relatively high levels
they are depressed to relatively
low

is

It

ones.

this

in

the

area

professionals and institutions once
more
begin to buy aggressively
and the accumulation process has
its

inception. This cycle is by no
means
regular in appearance or
study of the
stock
market
that the cycle

time; nevertheless,

history
strongly

a

of
the
suggests

reappears.
The

major economic forces will
examined

be

now

psychological

well

as

technical

or

the

as

fac¬

tors.

They will be discussed in
light of the concept that a clear
confirmation

of these

is necessary in
the probability

order to arrive at

of

major change

a

in market direction.
'

,

Business

Activity

Corporate

and

Earnings
The
some

ment

problem

tion

have

to

of

determining

with

the

price

correla¬

flow

Nevertheless,
tween

distinct

a

of earnings.
relationship be¬

a

and

earnings (price
earnings ratio) although widely
publicized produces a great deal
of

confusion

point
the

of

from

view.

two

For

of

years

historical

an

example,

1921

and

in

1932

stock

prices were declining but
earnings were declining at a fast¬
er rate.
This resulted in a rising
price earning ratio which reached

absurd proportions.

mally

high

market

have

Since abnor¬

price

earnings ratios
associated with peak

usually

are

levels, the inference

been

to

sell

trospect these

stocks.

may

In

re¬

proved to be

areas

the

starting points of two major
bull markets even though earn¬
ings continued to decline into the
deficit range.

Nor

regularity

the

ratio

in

1937 and 1946.

these

The inference from

observations

other factors

is

that

be

must

many

considered

in measuring intrinsic values.
A phenomenon that is most in¬

teresting is a comparison of the
turning points of industrial stock
prices with those of general busi¬
ness
activity. Such a study was
made by the National Bureau of
Economic Research for the period
1899 to 1938.
This revealed that
the

on

business
at

the

the

stock

average

activity

prices lead
six months

by

peak and

trough.

the

Business

again

at

from

World

War

dustrial

and

business recessions

1948-1949

study promulgated by
Economic

a

business boom and ad¬
a

most bullish when business

activity and corporate
highly
favorable

earnings

prone

The

is

often

to making poor judgments.

illusion

of

chasing

security
during

in

pur¬

stocks
a
boom
business period is paradoxical, for
in

most

stock

cases

has

the

price

discounted




of

the

sav¬

which competes for an.out¬
is willing to accept the

ings

and

let

use

porations to

yield relation¬
ship discussed above has a signifi¬
cant impact upon the present level
Stock

the

of

increased

Market

importance

tional demand for
From

Dec.

due

the period

stocks.

1952 to

Dec. 31,

level

the

below

it

reached

three

despite the smaller
higher productivity
of
farm
workers.
In
industry,
earlier
production
peaks
have
been reached without full absorp¬
ago,

years

number

and

slackening

of

con¬

activity
is
becoming
probable. Furthermore, the

more

continued

sharp expansion in

con¬

credit and mortgage debt
suggests that the boom may be
"borrowing" from future demand.

sumer

Whether
business
tained

The

the

level of
be
main¬

present

activity

can

is somewhat controversial.

important point, however, is

that the

level

of

stock

prices to¬
day already anticipates excellent
earnings. The inability Of many
stocks to

favorable

coptinue rising in face of
first quarter earnings

coupled with the sharp price de¬
cline

experienced by companies
reporting unfavorable first quar¬
ter earnings is significant.
It sug¬
gests that the present level of
stock prices appears to be dis¬
counting the highly prosperous

Yields

Institutions
with

the

importance of earnings in
explaining values, as pointed out
earlier, does not effectively ac¬
count for

changes in equity prices
in any definable pattern. The re¬
lationship of dividends to price,
the other

on

hand,

to

appears

ex¬

plain

intrinsic values fairly ef¬
fectively. The dividend yield ap¬
proach reflects earnings since div¬
idends

are

function of earnings.

a

area

or

the
very

lower

while

the

at

4%

market

bottoms, the level is approximate¬
ly at 6% or higher.
The

era

since

second

duced

World

some

and

tween

the

and

bonds;

has

pro¬

correla¬

price

stocks

preferred

stocks

War

level

of

differential yields be¬

common

grade

inception of

interesting

between

stocks

the

and

stocks;

high

common

high grade municipal
stocks

common

and

AAA

corporate bonds.
The

table

where

areas

enter

on

the

the

ments

the

significant

differential

top

experience

yields
bottom

and

zone

The critical

yields

zones

are

rates

differential

became

part

a

—Cycle

grade
Common

grade
Common

grade

stocks

vs.

with

stocks,

Bottom

.stocks

vs.

preferred

+

2%—

high

bonds.

4%.+

1.0% —

3% +

0.0%

high
—

of

stock

offered in the second

were

In bqll markets convert¬

bonds

modified

are

equity

the convertible

on

privilege.

of

con¬

subsequentj

a

ex-1
and!"

prices.
Am
balances

prices re¬
major increases or de¬

that

veals

in

creases

debit

one

generally ac-*r;

were

companied by similar movements'1
in the other.
Board

The Federal Reserve"

is very much aware of the"

significance

of

credit

regards

as

the stock market, as their history
of

changing margin requirements
clearly indicates. Since the Secu-;

stocks.

Under the present tax law, cor¬
porations can, in most circum¬
stances, invest in stocks and be
subject only to a 15% tax on divi¬
derived

dends

These

therefrom.

corporations need dependable in¬
come
from
their stock
invest¬
The

ments.

abnormality

yield

higher
suggests a

industrials

than

high

of

grade preferreds offering

a

policy favoring the former. Inci¬
dentally,
the
manifestation
of
common stocks
selling at a yield
below

high

grade

has

preferreds

not been witnessed since 1946.

Bank

administered

personal

trusts, under the light of present
high tax rates, can be assumed to
tax-free

favor

could

municipal

be

bonds.

demonstrated

by

bracket

from

above

or

obtain

can

higher return after taxes

a

municipal

good quality
The

present
abnormally low differential yields
that

is

institutional
stocks

common

ly

low.

from

(bonds and

time

when

trending
The

most, it will tend to faciiitate
make

will

rates

since

the

the

mar¬

of

at

rates

addition

In

effect

ultimate

an

supply

in¬

of common

stock, convertible bond financing

have

may

fluence
event

the

the

In

market.

price

weakness,

quite
bonds

on

to carry these
margin through

customary

the
of

10%

a

of bank loans.

use

the

Since many

convertibles

selling

are

near

parity in relation to the com¬

mon

stock, weakness in one will

affect

other.

the

forced

Should

selling take place in the convert¬

concept
secu¬

on

new

era

of low in¬

on

equities
use

greater
interest

of

can

be

Furthermore, it

Although these short sales
be made on a downtick,

cannot

they

would

the

absorb

to

serve

usual buying. The result would be
that any increase in

be met with
and

ers

sellers would

deficiency of buy¬

a

sharp price break could

a

occur.

of total

previous
1946.

secu¬

highs

During

29.2%

amounted

are

the

29.9%

to

respectively.

proportions

set

these

two previous bull market tops
and

These

relatively

large

since the average annual percent¬
age

of stock

to

total

in

sonable

the

to be
unsustainable area

an

appears

light of economic

re¬

alities.

Speculative purchasing of stocks
credit is not restricted

on

chasing

margin.

on

to pur¬

Securities

can

be bought for cash and a loan se¬

from

cured

bank.

a

Although

these loans appear to be relative¬

(non-purpose loans in
January 1955 were approximately
small

ly

three billion

dollars), they have a
potentieffect since it is cus¬
tomary to carry stocks on 30%
margin and convertible bonds on
10%
margin.
The Federal Re¬
serve
Board
has
attempted to

more

ential

the

strong influence of differ¬

yields

demand for

the

on

and

credit indi¬

of this

use

through

rectly

interest

higher

The problem, however, is quite
complex since the broad policy,

regarding
credit

availability
of
principally

the

based

be

must

the needs of the business sec-,

on

the

of

tor

of

riods

read¬

the supply factor can be

in

ily assumed^

.:/${?

V

During pe-,
business activity

economy.

rising

which coincide with unusual spec-,

ulative activity in the stock mar¬

Governmental Fiscal Policy

stability.
tends
and

the

to

that

cause

Stock

the

upon

of

unsustainable

result¬

levels with

ing sharp reversals that can shake
if

such

confidence,
reversals

occur

especially
at

when weaknesses begin to
on

the

horizon

of

the

a

time

appear

business

sector of the economy.

The

ipated

security fi¬

rise

in

an

specu¬

antic¬

stock

of raising prices

self-generating

such

process.

motivation, the

use

Given

of credit

offers the

speculator the possibil¬
ity of multiple profits from trad¬
ing on his equity if prices rise.

their

change
as

and
a

investment

the differential yields

proportion
of
money
flowing

investment
the
bond

new

into

sector.

total amount of
in the stock mar¬
not aopear to
be high
historical point of view

Although

the

credit employed
does

ket

from

an

(total member bank loans
curities
mated

in

early
at

about

on

se¬

esti¬
$7.2 billion), the
1955

were

precise amount of credit is imoossible to determine.
loans

buying of stock by

lative traders because of

the effect

funds

observing

policies
contract.
This normally results in a larger

feed upon itself as more

business

Pension

institutions,

during vari¬
in history about the

people are attracted by
capital gains. Specu¬
excess can push prices to

lative

rising

ing to

more

lure

was

rising interest rates, will begin to

economic
A sharply rising market

can

interest

in

rising stock market counted with

Government

influence

adverse

Market

Board

Reserve
rise

a

manifestation

This

has

Federal

periods

stimulate

other

Credit

shown great concern
ous

to

Federal

the

ket,

institutions.

■■

a

the
and

Federal
that

that equity prices appear rea¬

or

check

rity offerings, another new record
projected on an annual basis. It
1937

approaching

the

believes

rates.

prices has
which
in turn can provide an incentive
for further speculative buying in

33.7%

that

fact

Board

Market level

short.

this

to

financing
in
the
first
quarter of 1955, amounted to $875
million, a record high since the
SEC
first
began compiling the
to

the

to

Stock

ibles, arbitraguers would buy the
bonds and sell the common stock

And

Stock

amounted

tion

Reserve

depressing in¬

a severe

on

of

there
may be forced selling of convert¬
ible bonds since many investors
are probably over extended.
It is

a

financing to total
financing appears to be affected
by differential yields.

1934.

the

in

crease

to

are

stock

statistics in

not

will

dilution

during a period of extremely fa¬
vorable earnings.

:

deducted for tax purposes. Despite
these considerations, the percent¬
age

stock

common

marked

a

interest rates attempt¬
discourage further use of
credit for purchasing stocks, it can
have a marked effect on policy of

of

taxation

the

encourages

bonds

in

crease

have

purchases.;
Second, it has a psychological ef->
feet of calling everyone's atten¬

ening of the demand for common
stocks and a substantial increase

and

Double

Corporations are
that the resulting in¬

or

credit

is

high taxes en¬
courages corporations to finance
themselves by bonded indebted¬
ness.

called.

aware

difficult

quite evident in 1937 and 1946 as
well as the present.
In addition

yield

impact
rity financing. The
terest

be

fully

to the redemption price

correspond almost exactly to the
1946 pattern. A significant weak¬

attests

an

mar¬

gin requirements affects the mar-;
ket in two ways. First and fore¬

rates.

preferreds)

differential

Chart.)
in

premium

The

has

decrease

or

ready outstanding and selling at a

theory.
also

(See

areas.

can

bonds

interest

upward

of the convertible bonds al¬

some

successful

abnormally low differential yields

and

sector

appears

bottom

to

Such

individuals,

as

areas

estate

real

loans, and commercial, industrial
and agricultural loans may be po¬
tent

it.

sources

attracted

especially
men

as¬

that the rising stock market

sume

has

of stock market cred¬

is certainly plausible to

It

and

what

tremendous

among

small

farmers who

unhappy

with

interest

business

are

the

some¬

narrow

profit margin presently prevailing
in

their

The rising
him with
power

close

sectors

of

the

business

economy.

prices in turn provide
expanding purchasing
since they supply the mar¬

'

has

for

probably beginning to take place.
The unusual price strength in the
income

increasingly popular.
logical to assume that

rather

a

1934,

Board

switching
into
high

stocks

preferreds

Reserve

relative¬

be

Furthermore,

common

grade

Exchange Act of

supply of securities is tre¬
mendously important. The present

demand

must

become

The

the

of

and

Federal

the

stocks.

common

inference

with

than

bonds

This tech¬

the

The increase

of their phi¬

common

areas—

Tops

indirectly to

prices

may

the movement of stock

yields. They must

losophy, become less aggressive in

proportion
5%

vs.

decline

levels

amination

It

1

increas¬

ever

nature

very

purchasing

in

high

municipals
corporate

of

1941.

Differential Yields

tribute

exceeded

of

,

economy in

Common

based

and major market move¬
since the new era of low

interest
our

lists

v!

it raises stock

has

investment

relatively stable.

are

low differential

by the

ket

reaches

bond, flotations.

active

of credit to a;

use

unsustainable

nique of indirect equity financing

extremely sensitive

are

Institutions

less

earnings do. The divi¬
yield of Moody's 125 Indus¬

to

con¬

of

en-'

that

an

the first quarter of 1955 it totaled

must all be converted.

The ab¬
normality of extremely small dif¬
ferentials is largely the result of

fixed

than

degree that

During

amount

rising price of the common
Corporations need only to
call
in
such : bonds,
since they

concerned

more

are

long-term

policy and

Dividends, however, fluctuate far
dend

vertible

huge

per¬

financ¬

power

exert

Moreover, the

stock.

about differential yields:

today

The

the

large

stock

to

history of regulating credit. They :
have raised margin requirements
around market tops and have low¬
ered margin requirements around

tax

and

Institutional Policy

is

the

traders

the

the fact that investors in the 35%
Differential

ing

to

common

rising stock
supply the supple-,,

can

purchasing

influence in the rise.

equity financing.

addition

of

ables

pur-J

of credit is-

use

the

rities

This

business atmosphere.

In

centage

prices, it
mental

credit

more

to

demonstrated

ing amounts of investment money
are
confronted
with abnormally

possible

to

for

While the

above its redemption value due to

investments

struction

yields

need

essential

not

Second, the market price of the
convertible ultimately is pushed

tion

output and

stock

ginal

chases.

$46 billion to $65.8 billion, a
gain of 43.6%.
Individual hold¬
ings during the like period in¬
creased from $144 billion to $184.2
billion, or only 27.9%.

and

in automobile and steel

invites

value

equity prices out-pacing dividends
since the yields on fixed income

of unemployed job seekers
unemployment has tended to
stay
above
earlier
prosperity

relation¬

Thursday, July 7, 1955

.

31, 1954 institutional hold¬
of common stocks increased

ings

per
capita income of the farm
population, for example, remains

the

financing. First, the price of the
bond is usually above its invest¬
ment
value
(excluding the call
privilege). Investor optimism to¬
day has placed an exaggerated

institu¬

of

common

tion

ible

the

to

1946

common

quarter.

differential

The

of

and

other segments of the money mar¬
ket was about the same as that
which exists today.
This condi¬

million

greater degree.

a

1937

.

$109 million. Approximately $400

interest; and (4) the
of internal financing by cor¬

from

is
producing
abnormally
comparative earnings.
A
number of weaknesses, however,
have begun to appear on the hori¬
zon of the economic
scene.
The

busi¬

recession.
It follows, there¬
fore, that the speculator who be¬

are

in

increase

lower rate of

1954,

ness

comes

tremendous

large

zone.

vanced in the last third of

con¬

ditions, coupled with the expira¬
of the Excess Profits Tax in

stock

prices usually declined in the last
third of

These boom business

tion

tions

that

May

reach higher levels in the months
ahead.

lead-lag relationship is extremely
important for it suggests that the
market
discounts,
in
advance,
business
activity and corporate
earnings.

concluded

for

production

Business activity is likely to

the

Research

of in¬

reached the 138 level, a new rec¬
ord.

the trough in stock
prices preced¬
ed that of business
activity. This

of

Index

Board

eral Reserve

and

The Fed¬

peaks, the yield

in

the National Bureau

activity

automobile production.

II

Nevertheless,

Another

construction

record

resulting

level

boom

record steel operations,

trials averages about
5%^through¬
out the market cycle.
At cycle

there has been less regularity be¬
tween
the
two
relationships.

the

activity today is once

a

near

at

months

seven

Since

1953-1954

perienced investor.

price

earnings
the market tops of 1929,

at

requires low interest
order to keep business

earnings that stimulate the inex¬

there any

was

in

In

ship

which

rates

nancing has only been 16.7% dur¬
ing the 1934 to 1954 period.

the

to

activity at a high level; (2) the
huge national debt which requires
a
low interest rate to carry; (3)

the

intrinsic value for stocks ap¬

pears

now

levels. The likelihood of cut-backs

factors

two

due

permanent

pres¬

are

(1) The concept of full employ¬

Steele Market Boom
to

rates

following factors:

Danger Signals in Present
he begins to worry and decides
sell.
The
increased
supply

that the

assume

interest

low

ent

.

The

present

situation

bears

a

similarity with Federal Re-

Volume

serve

Number 5444

1G2

.

.

.

The Commercial and Financial Chronicle

policy around the 1937 and

1946

The

aieas.

two

increases

in

margin

requirements, from 50 to
70%, have made the self-generat¬
ing process extremely difficult.
Speculative purchases made on a
50%

margin

66%%

in

chasing
70%

basis

value

power

ative

of

since

the

stricts

specialist

his

activity

generally re¬
to provide a

pronounced buying or selling

tendency

by

both

the

"on

the

the

"off

the

be imposed in the not

floor

traders"

and

too distant

future, should brokers'

floor

traders"

for'a

rising

ten¬

'

with

the

in

rise

margin requirements has been the
rise

in

interest

rates

These
exert
the

policies will

weakening

a

demand

The

broad

factor

public and

could

be

of

on pres¬

continue to

influence
for

on

securities.

demand

lative

light

will

which

probably continue, based
ent open-market policies.

assumed

current

by the specu¬
the institutions
to

weaken

Federal

in

fiscal

policies.
Professional

Fxchange

whose

operations

Behavior

are

a

of

An

from

analysis of these signals

1936

that

the

to

present reveals

generally opposite
to those of the speculative public.
The importance of this phenome¬
non
is that it shows clearly the
process of accumulation and dis¬
tribution. The distinct selling sig¬
nal

they

in

and

1937

1946

in

coincided

the extreme bullishness por¬

with

trayed

by

the

at

are

speculative public

the

time.

same

The

distinct

and 1949
coincided with the bearish apathy
signal

buying

in

1942

displayed by the speculative pub¬
lic. The recent rise-during the last
21

The members of the New York
Stock

number

months appears to be a valid sig¬
nal.

dency.
Coinciding

group

months

same

once

buying signal
ber

again showed the

contrasting pattern.
in

appeared

the

A clear

in

Octo¬

Professional

In¬

with

the

successful
w'th reasenab'e consistency. Since

dex,

1936

bearish indifference of the sneru-

are

the

Securities and Exchange
Commission has released the

weekly buying and selling activ¬
ity of the New York Stock Ex¬
change members for their
count.

vided

own ac¬

members

are

di¬

three groups:

(A)

spe¬

These
into

it

piled from odd lot figures

is important that

firmed




by

the

1953

lative

which

contrasted

public at that

date.

Since

they

opposite

an

1955,

professional activ¬

ity has become increasingly bear¬
ish—a selling

signal.

public' behavior

Speculative

from

the

same

con¬

the

of

speculative

pub¬

lic will be elaborated in the

next

section.
A

havior

between

Such

large

a

scale

manifestation

situa¬

distri¬
that

is

is

one

that

80-95%

were

month.' Probably

extremely

bullish

invariably buys

in

behavior

l^rge quanti¬

ties when the boom in business is

apparent.

The sellers at this time

usually professionals who util¬

ize the enthusiasm of the times to

distribute

the

they

large

have

levels.

amounts

of

accumulated

at

This

process

of

stocks going from strong hands to
weak hands results in a gradual
of

sition

market.

the

Nevertheless, it still

age.

true
odd

that

The

turn.

odd

a
large
trading is

lot

lot

appears

proportion of
the quick

for

general

activity

behavior

bears

of

striking

a

the technical po¬

analysis of Odd Lot Indices,

total Short Sales Trend, and Free
Credit
Balance
movements
re¬

always being bullish;
(2)
becoming attracted by market ac¬
tivity; (3) buying on good news
and selling on bad news; (4) pur¬
chasing of stocks on small declines

following

an

extended

time when stock prices
declining suggests that the
lot public is becoming less

odd

The Short Sales Index is

obtained

price

Investments

ad¬

Assoc.,

Inc.,

Utilizing the daily odd lot
figures for purchases, sales and
short sales, has constructed two
interesting indices: A Balance In¬
dex and A Short Sales Index.

Balance Index is
sales

(shares)

chases.

A

rising

The

ratio of odd lot

a

to

odd-lot

index

pur¬

indicates

that the ratio of selling is increas¬

ing relative to buying.
Balance
stock

Index

prices

are

When the

declines

ratio

a

by dividing the number

of shares sold short in odd lots by
ail

oaa-iot

Since

sales.

while

the

ultra

is

less

lot

odd

short

seller

speculative

he has shown

a

by cnaracter,
tendency of being

right than even the odd lot
A relatively high Odd Lot

trader.
Index

sell

suggests

short

willingness

a

while

to

relatively low

a

index will portray a reluctance to
do so. After a pronounced market
advance

tively low
interpreted
market
after

declining Bal-r

clearly

a

Index

ance

coupled with a rela-t
Short Sales Index is
the

as

beginning of
Conversely

deterioration.

pronounced decline in the

a

market

(bear

market)

a
clearly
coupled with
relatively high Short Sales In¬

rising Balance muex
a

dex

Drew

a

bullish.

vance.

The

bullish. A rising Balance

more

Index at

turned

most

strong correlation
major bull market tops
a

behalf of the speculative pub¬
lic. The speculative public almost

An

trades

resemblance to crowd psychology,
with the characteristics:
(1) al¬

on

of

concluded

within

factors have lowered this percent¬

Speculative Public Behavior

lower

and

all odd lot

be¬

a

There

stock

1938

ex¬

professional

clearly evident today.

are

shares). The Brookings Institution
studied odd lot trading from 1920of

ing
are

100

by

indicates

and

(pur¬

than

subsequent revisions regarding
capital gains and other similar

bearish

bution,

less

area

havior to be valid.
tion

in

top

coinciding with extremely
speculative
public
be¬

bullish

stocks

characterized

be

tremely

of

market

major bull

must

chases

over

deterioration

January

are

tendency

part of the speculative
The determination of the

behavior

deals.

ments may

their

siasm begins to become apparent.
The Odd Lot Indices are com¬

public.

More stringent margin require¬

resume

interpreting the buying and
selling signal of the professionals

on

A

veals the point in the bull market
where extreme speculative enthu¬

In

limited number of stocks in which
he

increasingly

bullish.

close( and orderly market for the

margin level.

loans

behavior

professional

become

has

date

rise

new

develop at the

can

the floor traders;

on

(C) off the floor traders. The lat¬
ter two categories are more indic¬

pur¬

must

before

(B)

cialists;

27

(87)

is

indicative of

proving
tion.

if

we

terpretation
for

a

tecnnical

apply

the

the

to

the

last

23

bottoms

and

tops

greatly im¬
posi¬

market

above

stock

in¬

market

the major
become clearly

years,

evident.
Total

short

sales

positions

reported

montmy
by
\orx Stock Excnange.
mately 70%
of short

made

of

by

the

tne

Approxi¬
sales

professionals

New

York

are

New
are

(members
Stock

Ex-

rising, it suggests

that the odd lot public is becom¬

Ccntinued

on

page

28

23

The Commercial and Financial Chronicle

(88)

Continued

jrom

eral

27

page

price trend

prices

of

90%

stocks

Thursday, July 7, 1955

..

the

control

may

of

.

even

or

more.

Investors

Danger Signals in Present
hands

at

This

the

After

market.

bull

the

bull

a

mar-

to start to decline several
before the termination of

months

an

of

deviation

the

a
be¬

lines

two

Sales Trend
iessionals

at

speculative

ning

to

cover

a

in

the

indicates

and

the

bear

that

only

about

letters

market

almost

out

three

a

While
stocks

or

were

advised sell-

immediately

mar¬

Customers'

bear market.

year

it

is

true

that

with

move

~

Credit

Credit

Balances

Balancesi develop when se¬
are
sold in
margin ac¬
the proceeds are large
enough to cover the debit balance
with the remaining excess becom¬
ing the Free Credit Balance. The
curities

rises

usually
trend

of

all

not

the

of

the

Free

a

Balance

margin

accounts

The

the

to utilize the
utilize

buving
buying

Credit

Frj*e

Balances

that

gests that

a

market

of developing on the basis

process

mark

A

sharply

declining

Odd

Lot Balance Index.
/Lx

A

,

,

corpo-

the

jng

needs

of

that

economy,

ac-

cording

to "The Guaranty Survey," monthly business review of
the Guaranty Trust Company of
New York, published June 30.

covering

a

wider variety of economic condi¬
tions will be needed to determine

whether this hope is to be fulm filled," "The Survey" adds. "If

Index,

be

pre-

demands which may
them by shippers
wide variety of freight

made

for

the

upon

equipment that is required
by the many thousands of
shippers throughout the country,
These forecasts also prove useful
to investors and security analysts
car

today

as

guide

a

the

to

outlook

for

railroad

ing three months. Last week, the
13
Regional Shippers' Advisory

traffic for the forthcom-

it

ftrAVlflllO' Fifllfl fnr
H UrUlflllJJ II will I III

herent at the

the

M_„i

present

price

level

need for

a

The

confirmation

i*h

of

all

four

extremelv

of

in

rise

1954

carloadings compared
year
earlier period.

the

forecasts,
of

arranged in the
anticipated

widest

the

Est.

Shippers Advisory

Carloadings

Pacific Northwest
Great

%

Increase in

Boards-

Lakes

who

zen

take

able

was

risks

large

substantial

and

in

willing to

speculative

public

behavior

Snlyin

19 7 and

1946.

areas

—

to be

These two

turned out

major bull market tops dur¬

ing the last 23

years.

is,

a

long step

will have

the

rewards.

hope

In

of

recent

high and steeply progrestax rates on individual in-

market
..

and

companies

ness
some

aid

gives

-

.

,

.

~

...

are

other

busi-

to

small

intermediate
and

or

other forms

businesses

which

deemed worthy of credit but

lndl(',atlons ot beln? » the have not been able
J^nrwt V
m£?g conclusion is from other sources.
a maJ°.r bu.n
market
top.
This

to

obtain

it

on

economic

factors

the
as

that

examination

well

as

relate

ket

business

with

the

Profits

to

stock

mar-

boom

level

activity

absence

Tax

has

the'"

The

movements.

of

of

the technical

of

combined
the

Excess

produced

abnor-

credit

The extraordinarily novel

small

differential

corporations

method

of

that

"this

financing

has

now

eral

Reserve'

?oll

Rnsfrd0"'

1S 7.c°Sm/ant
cLa^ine mlrein LnnS-a y ? lnI
SL
ol
1S ar\d
shows
A
nrnefl nf•£e? y
A
dlstnbatlon>
L7 '
g<
3
stronS
Hands
fho

oc

-t

(professionals)




to

weax

^ * the

ine bank reports that

10.7

_—

0f this year it expects that no

are

many

ahead.

of

source

limit

the

funds

also

and

to

earnings

opportunities
Many
individual taxpayers in the higher
income
brackets
now
seek
to

necessary

Southeast

risks

than

that

—______

Southwest

2.1

___

Trans-Missouri-Kansas

1.1

—

expose

themselves to

longer

no

seem

worth

Regions—Aver.

The

10.4 /&

Incr.

"Savings
-

habits

and

practices

-

by new
they be

At tho car*
tax rates have tended to limit the
ability of small business to finance
its own expansion by reinvesting
earnings.
has

Thus the small

been

made

outside

upon

concern

dependent

more

capital

while

the
^v.

and

is natural that the

settled

more

nroblem

uortunities
of

new

the

resources

whereop-

develnnment

are

limited

and

s0^°e longfestabhshed

where

dustries

mav

their

passecj

and

have

to-

rearhed

neaks

To

source

of

must

where

employment

in

such

be

supplemented

necessary,

and,

replaced

by

new

growth

This Drob-

ably explains whv the idea of the

de- interest

capital for small business

outside
was

the

local investor, the well-to-do citi-

issjss** ",a
Estimated

vhft

of

in

the

new

Yet

financing

West into the Far West, indicating

that

§a^BS ln carloadings
commodity

mdwiduai

also provide a clue of wnat
particular
railroad systems
are

groups

expected to benefit from the ex-

Puans!u" Jm

radroad

r«

quarter ot 1955. Commodifies which arj expec
d
show larger - than - average ga

the

third

automobdes aBd

.e

in'lrt l
30.3%;

8

^r-ei

t

vehicle parts,
fruits,
19.8 /o,
iron
19.5%.
Agricultural

nitruc

•

0^ %,
and

steel,
implements

an<K*iV^forest
%,

mobile), 19.
products,

.

pommoditv

metals

other

12

%, p

6.

the underlying problem
not sectional but national."

is

which are expected to rethe largest gains in actual

groups
cord

booklet

volume

are

ore

and

concentrate,

to increase by 237,000
coal by 137,000 cars; lumber
and forest products by 87,000 cars
iron and steel by 71,000 cars; and

an

issued,

just

^"n'v

lmate, low p ic d

d

in

summarized

is

y

uced materials, modera
"
b?r costs, and new bui ding t ch"'Ques combine to make possible
the extremely low cost at which
™odest h,ousf can be bullt-, E™n
though land is very vauabe,
P

adequate reinforced con-

many

cfte homes are being constructed
at ® P"c® o£ $6,000 for the house
a
0 • s a matter of tact, $4,000

s ™. "muz1 cat

proof, termite-proof and earthquake-proof. Most of the houses
baye tbree bedrooms, bathroom,
combination

living-dining

kitchen

porch

With

now
Wjtj1

and

family

average

$2,000

annually,

Qnly

ag

room,

income

compared

recently

as

1940,

and more wage earners are
in tbe markej; for homes.
One of

more

the most impressive features of
tbe bousing picture in Puerto

Rico
rpcord

tbe excenent repayment
individual

np

FHA

lndlvldual FHA

J^rteaeor

Puerto Rico mortgage law is
SeneraHy similar in detail, stabibtY' and foreclosure procedure
to that found

or

maintain

static or declining indus-

areas,
tries

for

areas

study of Puerto Rico
growing field for mortgage

a

illustrated

whole of 10.4% for the

as a

quarter compares with the
year-to-year gain in carloadings
(originations only)
of
5.2% for the first 1955 quarter,
and 12.4% for the second quarter

supply of capital seeking such in-

sh0uld be most acute in the older

<pbe bank's
as

anticipated increase for the

nation

third

actual

taking.

to come in the years

more

investment
All

refuge in tax-exempt investments
rather

Valley

attract them.

Slgned to fuU a ^lnancial SaP that method is by no means confined
seems to have been created> in to that region. It spreads into the
part at least' by heavy taxation- South and through the Middle
The traditional

by the end
less
units in the $6,000 class
have
been
completed with

4.4

this

originated in the Northeast.
'The credit corporations

private

sizable

on

housing developments, especially
metropolitan area.

13.9

Coast
Western

re-

jn tbe gan Juan

will

buS de^elopment corpo?aUon

^

Rico

15.2

— ___

4.9

SS^nfftw? *?•

r,evi'
^&d7

Develop-

Several builders are

working

6.8

vigorous

which

,

Puerto

for

investment.

—

,

portg in a study of puerto RicO
as
a
growing field for mortgage

Ohio

already
achieved
sufficient
correspond almost exactly to the growth to indicate that it has an
yields

Bank

Midwest

income

mmrpent ?rge .f™1^3 are beinS the activities of the New Eng and
capdallzed at
over-gen-

the

16.6

Central

,

Government

turn,
ment

sive

"It

Noting that five New England
States now have credit corporations in active operation and that
similar institutions in Vermont
and New York are in the formative stage, the Guaranty Trust
Company cites the belief of some

mally large comparative earnings, authorities closely

n

,

18.2

Pacific

■

,

_

30.8

_______

...

England

,

than 5,000

vestment has dwindled,

i

based

,.

.

process of the Island Common-'
wealth gams increasing momen-

8.3

been

organizations,
along
with
individuals, the credit cor¬

long-term loans

today

„

„

,

Atlantic States

abIe ,0 sma11 business." With used to supply capital to new and
suPelied by banks, tosur- small business
At the
same
ance
time, the high

of
stock

■

Virtually insatiable demand for
lower priced houses is evident in
Puerto
„co.u asT
Vldus^rial

years,

"a new device for making"- Qply in rare cases-or
vate caPital more readi'y avail- £lnancln^ Methods—Qan

porations extend

Conclusion
The

iHOngagG llif 6SIIT1GIII

21.4

New

Ac

XQAI)

HIAA

A

Northwest

as

hull

became apparent

PlfAfftA

of

gains, follow:

have been

as

forecast

period.
For the first time since early 1951,
each one of the Boards predicted

order

of

sources

their

corresponding

with

due in large part to

as

released

Boards

These

A

measurements

in the third quarter.

freight carloadings of 32 principal
commodity groups for the third
quarter of 1955 compared with

have changed in other ways also.
clearly declining ten- taken in smoothing the transitions To an increasing extent, personal
dency in the total Short Sales that are bound to occur in a dy- savings
are
now
taking such this year. It may be noted that
Trend
which reached its height namic society and in
avoiding the forms as bank deposits, life insur- for six regional groups, the estiin Sept. 15, 1954.
pitfalls of governmental ventures ance, savings and loan shares, and mated increase is well above the
(d) Four executive monthly into the field of business credit." trust
funds of various kinds, national average, with particulardeclines in the Free Cr£'m nab
The bank's review describes the These funds, almost without ex- ly wide gains predicted for the
ance figures
*
development credit corporations ception, seek low-risk investment.
(c)

traffic performance

than-average

prudent investment policy, nevertheless, suggests the utilization of
this opportunity to work into a
properly balanced portfolio. In
this manner the contingencies in-

.

(b^i\nTextr^ely Saleslevel
low
°dd
Lot Short

the

and

estimating

in

the

paring

prices to higher levels. The

the credit facilities of a Private- comes, combined with the capitalenterPrise economy to the chang- gains tax, have tended to dry up

"Longer experience

(a)

these

push

England and elsewhere.

beginning of an
important movement in adapting

may

of:

„

development credit

were

top is in the

each

of

beginning

The primary purpose of
forecasts
is to assist
the

market momentum

supplied by development corporations such

that have sprung
up
in
New England in the last six years

cower of the
power ot the

built up during the price advance.
The situation today clearly sug¬

In all probability the upcan still

the

around

ward

Corporations Filling Financial Gap

rations

trend

willing

are

released through the

are

industries, which are among the
more
important contributors to
railroad freight traffic. It is also
evident that the individual carriers which should record particularly wide gains in freight traffic
in the third quarter this year
might include all of the principal
northwestern systems,
such as
Great Northern, Northern Pacific,
Union Pacific, "Milwaukee," and
Chicago & North Western; the
Great Lakes systems such as N. Y.
Central, Pennsylvania, Baltimore
& Ohio and "Nickel Plate," the
Pocahontas coal carriers, such as
Chesapeake & Ohio, Norfolk &
Western and Virginian; and the
larger carriers of building materials, such as Southern Pacific. Because of the lower winter wheat
crop this year, the southwestern
roads may well show a poorer-

Allegheny

begins to decline in contrast to
tfce rising market.
This indicates
that

ciation.

:

created in New

however,

market,

Credit

credit

the

Before

market.

bull

with

capital loss are as great as the possibilities of further capital appre-

capital for small local businesses
high income tax rates, thus creating

Balances

falls

and

the

end

Credit

resulting depreciation in purchas-

of

counts and

Free

stocks entails the

common

July issue of "The Guaranty Survey," monthly publication
of the Guaranty Trust Company of New York, ascribes dearth

These

of

forecasts

a

helpful in determining
speculative
public
behavior.

trend

Investments always entail risks,

~

monthly figures of

Free

of

Association of American Railroads

major price movements) the gen- would be adequately prepared for.

also

are

com-

power.
At present market
levels, it appears that the risks of

ments of stock prices and that (in

market

ing technical position.
The trend of

on a large number of
stocks today,

mon

inception ing

the

be

to

which

general
price
trend,
certainly
a
large
majority tend to move in that
same
direction. A study in this

steadily improv-

a

Committees

Shippers Advisory Boards, which
the entire nation, have fol-

cover

railroads

the

turned

bear

a

of

end

buying fund

this when the appropriate opportunity

connection concluded that price
is clearly bullish suggests that the trends of reasonably well selected
speculative public is establishing common stocks are probably conshort positions. This type of man- trolled to the extent of at least
ifestation
is
usually
associated two-thirds by the general movewith

potential

a

chasing

of

phase at
professional activity

when

time

as

the Commodity
the
13
Regional

years

quarter.

revealed

of

place

public is begintheir unsuccessful

Short Sales Trend while the
still

serve

Although 96% were not bearish, risk of purchasing bonds entails
bear- a
drastic market decline took the danger of inflation and the

positions and further con¬
firms the beginning of market de¬
terioration.
Conversely, a rising
is

In

today.

a

usually in some proportion to the
indicated return. The risk of pur-

short

ket

opinion

certainly

ing at least part of the holdings, danger of capital loss, whereas the

ish market behavior ihdicates that
the

is

the

P;

M-

.

Over

transferred

be

time when pro-

a

displaying

are

could

into municipal bonds which would

definitely bearish

This clearly detendency
of the Short

dining

sales

taxes

4%

apparent.

comes

these

Higher Carloadings Forecast for Third Quarter

which

rising Short Sales Index,

a

of

week of Aug. 26 to Sept. 3, 1946.
The
Securities
and
Exchange
Commission
compiled
statistics

ex-

market advance paralleled

tended

by

of

the inception

anld

ket,

has
six

for

because

large holdings, could begin
switching part of their funds out
of equities. The proceeds from

connection it is interesting to note arose. Many investors will find lowed the practice of estimating
an examination of the literature that
their yield after taxes is carloadings of the major comof 130 brokers and 46 investment even higher in municipals when modity groups handled by the
advisers disseminated during the compared with the yield after country's Class I railroads. These

dencv

fore

evident

conclusion

minority

plotted against an average of
market, they
show a tento rise several months be-

are

clearly

public),

notice

moment's

a

their

months.

these figures

When

character.

in

(speculative

been

policy

a

trying to time their purchases
and sales and who cannot liquidate

Stock Market Boom
change), the remainder appears to
be the speculative public which
resemble the odd lot short sellers

follow

who

of

on

Puerto Rican

the mainland,

waffp

earners

now

ruert0 K1ACan wa^e earners now

have opportunities in

a

wide va-

expected

riety of industries ranging from

cars;

textiles

and

electronics

food

and

to

processing

refineries

oil

sand,

electromcs and oil refineries.
Building permits have increasd

cars.

substantially in recent

gravel and stone, 52,000
Relatively small declines in
carloadings are forecast for the

straw

'and 3SS£ £/»££
.,

It

is

■

A

evident

from

the

above

years.

The

present annual amount is approx-

-tely $60,000,000 compared with
only $7,800,000 in 1940.

Assessed

high
rate of activity is indicated in the

p p
p~
proaches $1,000,000,000 compared

steel, automobile and construction

with $311,803,000 in 1940.

forecasts

that

a

continued

1

182

Volume

Number

Continued

5444

from first

.

.

The Commercial and Financial Chronicle

.

(89)

reasoning

page

and

opponents of
must

wage

Mote Correspondents' Views
On Guaranteed Annual Wage

The

burst of

activity on the stock
market with prices rising to new,
all-time highs. Obviously then the

virtually

investors

do

not

with

agree

Mr.

Rising. They obviously feel cor¬
rectly that the settlements made
between

the

automobile

nies

the

CIO

and

UAW-CIO
will

and

power

on

a

unions

the

—

purchasing

sustained

more

the

—

IUE-CIO

higher

produce

compa¬

basis

and that that is good for corporalion profits as well as the econ¬
omy

as

whole.

a

apparently not
since

these

made;'

Mr.

been

eral

subsidies

from

He *

economically

and

Its counterpart—

which

is

paid by a
benevolent government to an un¬
—

deserved

equally

minority

[is

group

smother

will

It

wrong.

ambition

resourcefulness

and

and

ultimately lead to extreme infla¬
tion

the

and

In

order

to

consequence

the

support

guar¬

antees, business must stabilize at

were

minimum levels to avoid excessive

evTdenfly
was
dis¬
appointed that a big stril-o did not

charges during the slack periods
following over-production which

take

place

and

are

were

made

by practical

sense

on

settlements

both

that

settlements
common

Our Union intends to pursue the

objectives of
nual

wage

present profit
system. A guaranteed annual wage
is

sides.

the guaranteed an¬
in our forthcoming

inherent in

to

If

growth.

annual

it

our

unwarranted

an

just

general

a

demand

profit for the employers, who take
all the risks?

Westinghouse whose

re¬

in

providing employ¬
security
has
been
con¬

ment

spicuously

bad.

We

believe

that

economic

system, built on the
basis of mass purchasing power
sustained and continuously rising,
cannot continue to operate witn
that purchasing power subject to
our

sudden drastic reductions. We be¬

lieve

that

the

privilege of

resourcefulness.

principle is being accepted
in the coming years it
as much a part of our
growing
economy
as
have the
other gains secured in the last 20
I

from

when

now

to

on

that

sure

am

we

further

a

have

pattern

nomic

achievement

will be

one

"We

were

anteed

few years

a

moved

of

Mr.

eco¬

Rising

of those who will say

always

annual

for

the

guar¬

but it is the

wage

fangled things that labor is
trying to get that will undermine
new

the

economic

system, wreck the
our
people, and
police state."
I believe

moral

fiber

create

a

of

that with practical, good sense we
will continue to make progress in

have

studied

Frank

ELAM

Savings

and

who
ness

dangerous, and it will
be a curse to the man
accepts it. Work—not idle¬
to

—

lished

in

tributed

thing to
perity

i\a

u n

d

n n o

t

study

ness,

i

the

the

other

costs of

produc¬
compen¬

sation

and

should

you

be

assumed

by

industry.
This
trine

decade

a

ployment.
the

or

before

more

of

From
view

be

may

somewhat

state

I

from

this

allocation

that

Mr.

"bias,"

surprised
Rising's

illogical

muddled,

and

It is based
and

assumptions

erroneous

This attempt to

Nor is

up

the
that

a

frighten its

the analysis

Instead

inevitable

hold

con¬

conclusion
opposi¬

the

a

is in

pitifully weak and impos¬

sible
A.

G.

Elam

a

guaranteed annual wage

position

rested

on

if its

case

is

to be

the analysis ap set

forth

workers

of

involved

that

true

may

which

that

result in

the

history,
have

we

will find

fallen

into

ruin because of lazi¬
which is the result of idle¬
and

In the first place,
least three times that
annual

without

wage

Any able-bodied man, who ac¬

a

means

work."

This

guaranteed
"full
is

a

pay

basic

premise of the argument that just
isn't a.true fact.

ness.

it is stated at

CIO

got

from

What the UAW-

Ford

and

General

of

the

unemplovment of
it is

the

implies

difficult to

financial

that

results

failures

this

the

of

is

bur¬

The

the

from

ar¬

unem¬

the

faults

workers.

clearly

contention

In¬

implied

that

in

reasonable

for

unwarranted

an

attack

American labor that hits below

belt.

that

such

attack

an

comes

close to being akin to
American

labor.

resentments
of

to

assume

the

in¬

an

is

It

this

to

the

of

organized

their

members

efforts

protect

criti¬

bear the costs of pro¬

and

duction

resulting from unemploy¬

when

ment

credit

firms

at

the

The

these

legitimate

are

that

salaried

if

on,

and ad¬

people

are

vastly different from the cents

per

hour

the

idleness."

for

Ignoring

fact that the idleness is seldom

the fault

of

he is in

be

production that

have

not

sound

it

is

ways

bear

and

posi¬

the question

raised with

what

to

financial

no

assume,

if

the worker and

cost of

a

should

still

can

logic—

"vastly

dif¬

ferent"?

of many

is

The author of the address

certainly

Business

has

re¬

granting sub¬
business

risk

of

businessman

is

and

billions of dollars to fur¬

ther subsidized

tation

out

of

highway transpor¬

the

pockets of the
taxpayers in order that the busi¬
may benefit more or less
the form of cheaper truck and
bus transportation. So long as he

in

get additional security for or
protection to his own porfits he
is willing to overlook these mon¬

on

an

annual

salary.

executives, bankers,

gov¬

ernment

than

cars

sters

the

on

highway that operate

at great expense

to the taxpayers

constantly endanger the flow

normal

traffic.

lated.

annual

they work
a

vast

A

to

ness

cult

and

taxes

tional

to

or

big.

contributing
Also

ernment

employees
ployment
security

addi¬

to

most

now

gov¬

have

under

em¬

civil

tests

of

have

from

come

guaranteed
the

the critics of the

proposals

wage

working

and

housing.

All

standard

for

Yet all groups

man.

of Americans need

food, clothing,
entitled to

are

a

of

living—the re¬
sult of our efficiency and produc¬
tivity. Although our standard of
living is high in America, few
"workers"

that they

wages

ficient cash

day.

such

earn

build

can

reserves

for

Unemployment
week.

up

suf¬

"rainy"

a

compensa¬

tion payments seldom
per

bountiful

exceed $30

Hence it is difficult to

accept the argument set forth
Mr.

Rising's

weekly

that

address

payments

in

such
will

and

can

be

This part of the story

is indeed
the in¬
come
of a person on an annual
salary basis who is paid regularly
"vastly

different"

that

cost

that
the

of

until he

day

every

opponent

fact

fault

worker,
a

works

the

the

the

is

he

Until

from

or

it

prove

borne

be

is

is

who

able

and

willing to work

but who can't find work, until he
can

show that it is

should

dustry
is

unconvincing
is skating on

his

far

he

has

Hence

case.

guaranteed

cost that in¬

bear, then he
in his argument

and

Thus

a

not

very

failed
the

thin
to

ice.

prove

critic

of

the

wage

appears

in the position of the kettle
calling the pot black.
no

answer

to

build

a

quences

conse¬

ized labor to protect the involun¬

tarily unemployed workers
this address

employees,
teachers,
preachers, and the vast majority

terated bunk.

1955,

Yet

bank

concluded

attack

by

annual

an

This-

workers.

industry—this
"bigness" —
evolving for many years.
Why then suddenly try to give it
a
cause
that has not yet taken
place when the concentration has

been

developing

for

decades?

The dangers of a "dislocation of
markets" and "an army of bureau¬
crats"
are
set
up
as
"scare
crows."
for

Now who is going toj run
in fear of such "bogey

cover

men?"

We

crats"

to

have

far too

how

increase

in

result

can

agreements

through¬
We have

history.

large

numbers

"bureau¬

of them today. But

many

a

had
with

contend

American

out

their

from

between

the

Ford

and

General Motors and their workers

is difficult to understand. It would
that

seem

to

It

is

be true,
year's

a

models

with

This

has

for years.

effective.

absorb"

to

end

coming."

case

—before these

new

been

It is true

now

agreements become

By who logical reason¬
contention be given

this

can

serious consideration
of

effort

an

stated, that

as

"reluctance

a

"at

ing

uninformed

reject such

him.

may

the

the

even

will

scare

future

as

dislocations

the

in

cause

produc¬

tion?
It

of

challenges the
the

not

common

sense

reader.

For
it
assigns
in the. future that has

something

become

yet
of

effective

as

a

past and present mal¬
adjustment.
These "bogey men"
cause

and

a

"scare

set forth

crows

opponent don't

seem

by the

to have much

substance.
Now
two

the

address

does

contain

important and accurate facts:

(1) "Unemployment compensation
should not be

as great as working
pay." Ignoring the fact that per¬
sons

on

annual

an

contract

basis

usually do get paid in full when
involuntarily
unemployed
dur¬
ing the year, American labor will
accept this above statement.
General

Motors

not

for

and

ments

do

from

tion

call

The

agree¬

compensa¬

the

company-supplied
supplement to
State unemploy¬
ment
compensation
equal
to
"working
pay."
And
the pay¬
ments

be

to

are

made

tary

unemployment

year.

(2)

does

not

ing."
to

not

for

a

but for 26 weeks of involun¬

year

want

the

for not work¬

pay

100% true.

He

work.

within

"The average American

True,

wants

He wants
for

payment

working. But if he is unemployed
he wants the burden placed where
it belongs—as an industrial cost,
paid by the employer just as he
pays his
other costs of produc¬
tion.

He doesn't want to bear the

burden

risk

and

alone

—

risk

a

endangers the health, stand¬
ard of living and happiness of his

loved

ones

of

are

as

pic¬

unadul¬

It is much like the

of

and

address

will
wage.

ments

ican

that

guaranteed

technological

have

been

industrial

ades.

fears

a

increasing

Now
or

the

from

result

zation

himself.

pictures

"automation"

increased

of these efforts of organ¬

The

dire

up

man."

in

be diffi¬

has been

The

"bogey

tured

will

that

annual

to be

is

attempt

an

intelligent read¬

for

en¬

tirely by the unemployed worker

monopolies

ican

es¬

idleness

unemployed

can

should

can

the

ar¬

American busi¬

caused

contract

Ford

inflation.

cause

the

increasing concentration in Amer¬

service laws.

Yet few if any pro¬
these potential burdens

of

But it

convince

can

wage

cars

inflation.

manu¬

belie

that this development has re¬
sulted from or has been caused

not), but

employees, Federal, State
and local, is engulfing the tax¬
payers in 1955, resulting in higher

at

more

ers

day

for such

picture

someone.

is

there

or

being

now

The facts

dire

scare

(whether

every

are

produce

—cartels—is drawn in

salaries

flood of increased incomes

to

of

gument.

reader

Not only do millions of govern¬
ment
employees
receive
stipu¬

- program
dollars to begin

order

factured.

can

It

Every group of Americans today
is seeking security in one way or
another.

Small

supporting the proposed expendi¬
ture by the Federal Government

tablish

The argument is made

to

The

expense

average

not.

tion

of
be

not

Administration

whether

which

available.

to

farm¬

the taxpayers.

paid

he

we

means

"small"

nec¬

that it is

that

investment
billion

in

once

source

a

would

in

by industry and passed
essary to consumers.

ever

by

that

loans

costs that should and must be

mitted

a

the expense

sidized

good

is

to

at

placed the RFC

be

maladjustments

But

bear

gument

deed,

of

are

American

taxpayers

cheap

of

individual

risks involved.

ployment
and

loans

inflation

subsidized

are

to

seems

cause

and

ness

Federal

the American

on

Administration,
ers

the

reasoning.

is

the

several

Through the Agricultural Credit

and

employer may not be responsible
for the cyclical or other factors

in

in this address.

book, it is
disastrous. If we
my

of

some

panded

billions

guaranteed

taxpayer and have been
of

on

dustry rather than force it

It

the

not
con¬

of

have experienced in recent years.

in¬

against forcing American labor to

conservative

a

economic

an

costs of unemployment to

sound

does

area

nessman

good neo-classical doc¬

was

labor

Roy L. .Garis

econ¬

with

vincing.

and

nations

that

be borne

by

including workmen's

cisms

tion to

groups,

unnatural

decay

tutional

seems

by

spells pros¬
perity a n d a
higher stand¬
ard of living. In
will

to

tion

arouse

classical-insti¬

of

potential burden

1921 that such

as

approach to the problem that will

neo¬

a

as

readers.

tary logic that
idleness, now
many

lar

not

sult

of

system

omist

Uni¬

by industry
employees. The
costs of unemployment are simi¬
and

very

of

"scare crows" will not

elemen¬

sponsored

costs should

seem

strong

a

man."

e^'stand

the

early

Professor

Columbia

of

generalized misstatements of facts guaranteed their pay to the ex¬
that seem to endeavor to arouse tent that they have an annual con¬
unwarranted
fears of
a
"bogey tract, but it is stated that "this is

and

happiness, and
I

distinguished

as

or

student I learned

a

Unemployed American
labor is able and willing to work.
It wants jobs and it will work
when jobs are available. It would

capitalis¬

tic

on

pros¬

the

Seager

the

contradictory thinking^

any¬

years. As

Henry

on

The

1955.

26,

As

by

conservative economists for 30
more

from

This

Financial

May

reasoning

laid off."

Chronicle of

sult

con¬

logical

unemployment
will result in "finding wavs to get

analysis of the guaranteed
annual wage proposal seems to re¬

has

sound,

compensation

Commercial

dollars

Business

Tacks"as pub¬

and

should

This

broader

liabilities of
Government.
These

been

the

critical

progress.

never

the sub¬

on

Blue

—

when

spells

Idleness

Manu¬

Sky and Brass

and

Pay without work is un-Ameri¬
prove

Parts

of

Man¬

free enterprise

Bank,

St. Louis, Missouri

can

address

Annual

our

President, Southern Commercial &

the

Association,
ject, "Guaran¬
Wage

the cost

and

the

otherwise

dens and

Rising, General

facturers

teed

is

Government.

tingent

no

ployees should be forced into idle¬

7, Calif.

of Automotive

ager

through

accept the argument that his erh-

Economics

Los Angeles

I

the
The

comes

eral

include

a
production cost paid by the
employer, and passed by the em¬
ployer to the consumer. This has

very

University of Southern California

advocate
G.

be

GARIS

L.

Professor of

Mr.

job

back.

To him

own.

his workers.
ROY

spite of these howlers of doom.
A.

will

It

discouraging to the average Amer¬
ican to risk what capital he has
and to have
it fade away in a
guaranteed annual wage.

that

will become

years.

to purchase

everyone

ownership in any business and
develop it through hard work and

wage

and

called

be

point

This country was built upon the

annual

guaranteed

of them is
his

off

to

laid

economics
for employees, isn't Keynesian
developed
reasonable to expect and with its great emphasis on the
a
guaranteed
annual dangers and problems of unem¬

tric

cent record

want

Once

"incentive"

unemployment

this.

wage
as

negotiations
particularly
with
companies such as General Elec¬
and

of

not

to

laid

fault of his

hazard

added

have

we

is

his

being

The

than

everyone

he

to

from

does

return

versity

natural

thereof—Socialism.

Rising has
heard

is

public

morally wrong.

to

moment

desire to pay for idleness, that is
their business, but to foist it upon
the small concerns and the gen¬

better

unemployed.

anxious

blow
new

do

employee

become
off

conclusions.

guaranteed annual

a

29

basic

progress

Increased

mechani¬

improve¬
to

Amer¬

for dec¬

mechanization

Motors was a company?supplied
the^boxer whose eyes cannot be associated with a guar¬
unemployment
compensa¬
supplement to state unemployment of white collar workers have con¬ are glassy from a telling blow anteed
a job is available is not
wage as a cause of any re¬
tracts calling for annual compen¬ and who is swinging wildly in the
sincere and honest, because he is compensation to run for 26 weeks.
sulting short run unemployment.
Farmers
want
sation.
"parity" hope of hitting somewhere.
taking money which in reality be¬ Furthermore, the total combined
This "automation" will take place
It is stated that an agreement in
longs
to
the
taxpayers.
Most compensation is to amount to only guaranteed by the Federal Gov¬
any dynamic, expanding econ¬
ernment to assure a stable annual
such as Ford and General Motors
politicians are enthusiastic about a fraction of an employee's income.
omy such as ours.
On the other
It is argued that such payments income.
have entered into will result in a
unemployment compensation, pen¬
hand,'as a result of these new
Not only do our bankers have an¬ reduction in production of auto¬
sions, and doles and shout it from will completely destroy the "pride"
technological
developments
we
the house tops, because such ac¬ of
the
worker,
that "incentive nual salaries assured them whether mobiles to "one twelfth" of "the are experiencing an almost mirac¬
tion on their part
would
suffer among employees" they work every day or not, but five and one-half to six million
pays
at the
ulous increase in productive
polls, and the sooner it is dis¬ and that "an obvious premium the want security from the gov¬ cars a year" now being produced. power that makes a guaranteed

cepts

tion when

continued the better it will be for

would be paid for finding ways to

ernment.

the

get laid off."

more

If

recipient and the nation.
Ford

and

General

There are no basic
Motors facts to substantiate such reckless




loans

As

than
were

of

$57

February,
billion

of

guaranteed by the Fed¬

since

these
these

agreements were
two
automobile

producers have announced an ex¬

annual

wage

not

only

Continued

on

possible

page

30

SO

The Commercial and Financial Chronicle

(90)

Continued

from

ARTHUR

29

page

E.

A.

MUELLER

GRADY

Chairman of the Board,
North

Correspondents' Views

Moie

but

in

necessary

increasingly

our

complex economy.

so-called

by Ford and
to protect Ameri¬

into

entered

General Motors

to

workers

can

the

in

than

extent
far to

greater

a

will

past

go

protect the American standard of
living, of which we can all be

will cushion

It

proud.

the hard¬

ships of unemployment and put a
brake

the

downward

the

on

swing of

cycle.
for all Amer¬

concern

ica," and with decisions "based on
merits," and making use of

their

sense,"—phrases used in
concluding remarks of the

"common

address

would

in

seem

very

is

that there

conclude

to

merit

much

the

in
annual
It is certainly not "blue sky
of

favor
wage.

arguments

guaranteed

a

tacks."

brass

and

it

—

logical

conclusion, it is worth noting

In

that

many opponents of the un¬
employment
compensation
pro¬
gram used these same criticisms
and built up these same "bogey

men"

in

crows"

"scare

and

1930's.

state

this

must

rely

upon

rather

ing

a

than
On

evidence.

plan
nomic
same

income. If

se¬

knowledge

curity

of

in-

is

de-

basis

Yet

today

a

plan.

new

Hill's

even

As

result

a

these
rates

of

the

boxer

well

only sets him

for the knockout blow.
Cer¬
tainly this address will not con¬
vince thinking Americans that a
guaranteed wage endangers the
We

economy.

be

may

fascism,

road

the

on

to

argument set forth in

an

this address and often heard dur¬

ing the past 20 years, but it would
to

seem

clear

be

from

facts

the

presented in the above analysis
that a guaranteed annual wage is
not the
compelling factor.
Our

dynamic free enterprise economy
should
a

able

be

and

to

annual

guaranteed

take

can

in

wage

stride.

those

as

of public utili t i

e

stores,

s,

other

and

"steady state"

1

oyees.

Under

GAW,

em

up

American

p

state, and
Federal), as

p

automobile

employees
effect

with

dazed

gov¬

1 oyees,
(town, city,

factors.

They can't prove
"bogey men" and
"scare crows." The wild swinging

of

ernmental

It is difficult to over¬

case

wage

against

those

today.

of

age

evolution, wage rates reflect sea¬
and
cyclical factors.
This
can
be
checked
by comparing

opponents of a guaranteed
wage
for workers must
realities in the complex econ¬

omy

Mass.

sonal

The

their

78,

machine

of

annual
face

Market

Security

Belmont

Trends,

in
be¬

are

ing paid TWICE for being in such
occupation, and for being im¬
provident when they are working.
Why not pay them at the same
an

rate

that of

as

"steady state"

CLYDE

Social

At

such

riod

lay-off

In

prosperous

periods

the

and

When

fund

the

would

would

times,

be

short

accumulate.

accumulation

amounts

year's

a

to

off.

time

a

cumulated.

the

laid

are

they would be
weekly from the "Idle Pe¬
Pay" fund
which has ac¬

paid

to

they

wages, payments
Period Pay" would

"Idle
the

individual

reward

fc[r

company

maintaining

to
go

as

University,

There is

no

one

Middletovvn,
While

adequate basis upon

can

predict, with

any

of assurance, all the im¬
plications of the so-called GAW
degree

contract

re¬

cently signed
by Ford and
General Mo¬
I

tors,

i-

n c

dentall.y, it is
a

misnomer to

call it

a

guar¬

annual

anteed

L.

I

problems

labor,
lows

of

by

the

believe

the

have

the

annual

the many

confronted

highs

employment

is

wage

other

week

program

unemploy¬
exceedingly un¬
not only with

the

automotive

well

as

labor

as

manu¬

have

a

common
interest, which is a rare
phenomena in our present econ¬
omy.
Much better scheduling is

possible
turers

by major auto manufac¬
spite of the seasonal

in

nature of the business. This would

help to eliminate the problem of
unemployment as far as labor is
concerned, and

the financial

ease

burden of parts suppliers who too
often

called upon to carry in¬
ventories of parts for their auto¬

anteed

annual

brought

demands

wage

prominence

into

are

the
national scene because of a prob¬
lem of unsteady production that is
on

peculiar to the automotive indus¬

However, since it has been
injected into current thinking, it
is the fervent hope of all other
industry that it be confined to the
automotive field and not spread
generally
to
the
thousands
of
small corporations who may not
be able to operate with this addi¬

try.

tional

financial

From

the

economics,

sion

of

burden.

standpoint

it

is

of

possible

pure

that

a

to

American

possible

nual

nancial

is limited to

year

by

It

is

and

cease

trade

conceivable

and

benefit

an¬

opera¬

that

retail

could

transportation

from

such

come

as
a

wage

stabilization

of

upon
L.

L.

Matthews

year.

The

It

obvious

is

Guardian

income

is

guaranteed

a

healthy thing for the

a

well

economy,

as

dividuals

for

in¬

the

affected.

as

Naturally, if
we are to have a
healthy, vigorous
and
productive
populace,
they
must eat regularly and properly
and must live in houses and sleep
in beds rather than under bridges.
To do so in our society, they must
have continuous income.

STANGER

Trust

in¬

The

annual

guaranteed

income

an¬

program.

in

order

to

pro¬

the

escape

wage

it

of

if

attitude

resultant

versely,

be

can

confined

automotive

might be
in
our

to

and

ous

growing demand

products of business.
that
and

This

means

have

must

consumers

for the
more

income to spend for the

more

goods which business sells.

why

numerous,

and it is clear

that

self

in¬

terest of union

leaders
motes

pro¬

such

demands.

There

is

no

security
in
business,

which

is

not

created

by

management
and

by forethought on the part of

employers.
there

is

Men
must
realize
security beyond what

no

'

the idea

course,

behind the

guaranteed wage is not the ob¬
jective of paying people who do
not work. The purpose is to assure
them of the opportunitty of work¬
ing Readily. It is obvious that the

automobile industry, which at one
time worked many people for a
few weeks and laid them off for
few

a

and

has

months,

more

become

more

they have

prosperous as

planned
their production
more
regularly over the year. There is
no
reason to
expect that the in¬
dustry will not be even more effi¬
cient when they eliminate the er¬

they make themselves. The guaranteed
wage
should
not be
d
charge to production or to busi¬
ness and, if successful, would re¬
place other established-benefit^
such as unemployment insurance,
already operating. It is a pre¬
requisite in our competitive sys¬
tem that the employer is able to
sell in a competitive
Therefore, so long as we
enjoy and live under competitive
systems the worker must be pre¬
pared to make his own adjust¬
ments as much as the employer.
quote

cient

and

productive

more

and

market.

ratic schedule entirely. One thing
is sure—workers are more effi¬

JACK

IION.

WESTLAND

U. S. Congressman from

when

Washington

they have security.
Furthermore,
annual

collar
tives

wages

the principle of
is not new. White

Certainly labor wants the

company execu¬

worked

an

basis

that

on

economy

generally,

ably

mean

units

and

forever.

low the

then

require that

type of security. At the same time

fol¬

obviously,

to

dependent

it will

some

cannot

would

simply
afford

this sort of

cured

possible in

as

In

prob¬

disaster to many small

I

which

gives

people

if

therefore,

make them

insecure

as

A p p arently

the

to

are

we

c o

we

would have to take away their

and

property

possible. This, of

as

conclusion

it

but

of

it is

no more

security

which

bad

has

again that the

over

for

con¬

and

every

course,

progress
made

of

practically

bodies

the

of

step

for not
to

vast

a

thought

pf being paid

working is not acceptable
majority of the people of

this country.

However, unemploy¬

ment legislation has been enacted
on

a

have

nationwide scale and people

recognized,

under

certain

in

the

ments for

a

over

groups

pay¬

specified period when

has been

workers

the

dead

other employment. The Ford

who

society

our

but further

fringe benefits.

circumstances, the need for

productivity.

Of

have
several

reports to the

annual wage

an

ar¬

proven

a

effect that this
is not

ex¬

ridiculous

is

Experience

and

over

Hon. Jack Vvestland

logical

propagandists.

I

seen

course,

theory

theory itself,

that

people.

the

set-

was

mpi'om ise

and

as

The basic

Of course,
the

is

the

pounded by. many

than

incomes

reduce

Ford

lement

possible,

as

la¬

this limitation.

security is the ownership of prop¬

erty;

and

believe

bor recognizes

greatest

the

se¬

annual

payments

initiative.

their

capitalistic society, the thing

a

co m-

panies

attempt to make

increase

to

logic

the

we

insecure

as

order

are

we

theory that security ruins

initiative,

people

If

security, the greater the initiative

it; however if it spreads into

industry

almost

secu¬

,

annual wage ar.d no one
blame them for seeking this

rity of
can

people and
have

trary is the case. The greater the

seg¬

ad-j

manufacture

manufac¬

stabilizing that

labor

The

adopted.
are

of

ing dr finance,

constructive

a

wage

if

Further¬

gues

guaranteed

a

;

•--ff/

*

issue is of tremendous importance
and one which will affect the re-

if business is to continually
expand there must be a continu¬
more,

is ridiculous

guaranteed

-/d*'

Company,

Montreal, Canada

reasons

that

a

democracy,

President,

by

spoKesmen

is quite interesting.

much

or

major

more of

person

year.

displayed

business

is theoretically pos¬

summary,

ment

freedom

the

of

true

regulate employment and

influence

impossi¬

s

most

worse

a

a

standard

definition, is

con¬

in

business

drain

is

It

turers

s

losing

guaranteed
could further

of

tions.

the

average

h i

that

wages

centration

In

quest

employment

a

high penalties involved.

security,

compensation,

new

industry would not

but what another result will be

duction

of

$100,000

double

by

more

ROBERT

n

hundred

a

This,

toward

assume

further emphasis on the develop¬
ment of labor saving devices. It

to

so¬

i

as

liability for pos¬
sible layoffs in periods of business
slowdown. There is no question

annual

to

economy

might retard, the hiring of

economy.

his

national

our

workers since

wish

is

making

Of

that the guar¬

unfortunate

trend

some

other indi¬

over

a

so

r

for

customers.

It is

viduals.

which

power

individuals have

for

e

so¬

will reduce the political

and

economic

izing

times

lViUiieu.i-x

are

motive

it

Orauy

in¬

dustry, but also with its many
suppliers. In the solution of this

entire

our

the

26

work

Certainly employers will be forced

an¬

toward the

cialization

supple¬

of

an

employees of

nual

step

In

period

popular

is

sible under

annual

for

a

This

and

guaran-

teed

for

Prof. C. O. Fisher

of

that

At

un¬

aware

cycle, I still

calls

ment

am

which

it

a

MATTHEWS

caused

most,

wage.

shorter

considerable

even

ment.

early fall with

large
corporations as many small units
may be
unable to stand the fi¬

South Bend, Ind.

Connecticut

which

resultant

a

full

President, American Trust Co.,

Science, Wesleyan

a

and

summer

might conceivably restrict expan¬

and

Economics

in the

dom
and

otherwise

it is

in

with
much overtime, and then level off
year

guaranteed annual wage program

L.

of

early months of the

a

making $1.50
per hour, then

under

pressure

the

p

considerable

balance

FISHER

OLIN

operate
Arthur E. A. Mueller

em¬

yearly employment.
Department

bad

ployees, (using an accepted na¬
tional average), and withhold the
until

moral
and

problem, automotive parts
Four

c o m e

that

automobile

facturers

E. HILL

ANDREW

e m

historical

slower
to the

somewhat
adjust itself

probably at
tempo—will

in

and

anteed

g u a r

companies, es¬
pecially
the
larger ones,

and

M,y guess — and it is only a
guess—is that the market place,

being used by opponents of a

these

tak¬

s

Middle

West

as¬

result.

the end

guaranteed annual wage. How¬
ever, today an open shop would be
accepted by th£tn gladly and with
open arms.

to

risk

and

Twenty-five years
ago
many
industrialists fought the open shop
with almost identical arguments

look

the

i

11

y e a r.

seems

In this conflict

commerce.

now

it

presently predict

can

annual

an

common

stability
one

no

an¬

who

sub stantial

investors

of

ulative ventures.

ing,

has

cycle

and

changes which have given us
higher and higher standards of
living, as well as greater and
greater political democracy, have
certainly altered the status rela-"-'
tionship. Such things as the guar¬
anteed annual wage will continue
this
trend.
It
will
give people
more security arid individual free-

con¬

person

technological

cial

nual wage is a

priori reason¬
upon empirical

the risk involved with spec¬

between

statement

demning the principle of the

wage

this

incentive

public

a

continuous

courseofa

operate. It is probable, how¬
that this stability may be
bought at the price of reducing

sume

they feel that any change
alter their status relationship.
And, of course, it is true that the

(CIO)

ment

ever,

the

every

made

Union

during the

which other sta¬
factors in the economy

bilizing

since

point out that prac¬
individual who has

me

irregularity of
its
employ¬

in

way

tically

of the

relative

clear that the new wage
should contribute to eco¬
stability in very much the

quite

International

First, let

Thursday, July 7, 1935

.

may

Director

At present one

plan.

new

MULLENNIX

Oil, Chemical and Atomic Workers

Annual

because

Only time will show the effects
of

the

the
most
conservative
management
must and
does agree
that it is
good "for all America." The same
was true of opposition to the Fed¬
eral Wage and Hour law which
sets up a minimum hourly wage
for employees engaged in inter¬
late

Guaranteed

itself

upon

now

With "real

the

Wage

Wage

sation, subject to the limitations
imposed in the contract.

to

similar

agreements

Wage
those

Airlines, Inc.

fairness, the automotive
industry has brought demands for
a

On Guaranteed Annual

Central

all

In

L.

Research and Education

.

.

have

tract

unable

are

would

to

seem

to

obtain
con¬

extend

the

'

weeks, and
places upon the employer no lia¬
bility in excess of the contribu¬
tion

pool.

made

The

to

plan

the

employment

should

be

called

for the
granting of supple¬
mentary unemployment compenone




ble to possess both.
The inmate of

a
penitentiary has
but no freedom.
Our
enterprise system was not

security,
free

built upon the

ment,
ment.

or

the

security of employ¬
security of invest¬

of business

porations.
lieve
that

it

it

problem.

is

further concentration

a

activity in larger
I, for
a

will

one,

foregone
become

do not

vested

interests in

quo.

I

be-

pect

those with

national

comes,

the

suppose

the

most

resist

the

in

greatest

security

greatest

status

any

the status

it is natural to

cor-

conclusion
a

had

the

change

ex-

in-

and

society to

whatsoever,

benefits

already

given

by

many

of the States.
■

I

am

sure

this is

a

subject which

requires intensive study and fur¬

thermore, it is not
Federal legislation.

a

matter

for

I
Number 5444

132

'Volume

Continued

.

.

The Commercial and Financial-Chronicle

.

from first page

part of the responsibility for

^

plying this test.
neither

Bank

Mergers—Adjustment
To Changing Conditions

*

'

.,

,,

„

,

,

<

which

spread across the nation, including
both commercial and mutual

of

H.R.

on

commenting specifically
5948, it mignt be helpful
the structure of

to look briefly at

banking in the United States, and
rtecent changes that have occurred
in

it.

the

At

there

year

April

of

end

this

banks

14,314

were

sav-

ings banks. That is a large number.

Tfteie

and

trades.

Banks are quite different from in-

pro-

other

many

doing

^o

they put

More- to workother peoplesmoney.lt

lipes.

the number of banks has not they ^iljnany ^i^p^pJ^depositot'S
changed greatly since the end may be grievously hurt, with the
of Worid
War II
At that time effects of the.r injuries spreading
14,553 banks-a differ-

far beyond their own immediate
the interest and sometimes far beyond their own communities. Fur-

from

1.6%,

or

it can be shown that
competition in banking

thermore,
Small Impact of Mergers

The

While

number

a

banks
others

over

been

have

W0ldd

the

^00

existing

of

with

merged

decade, the

past

much

en?

lead to failure through
couraging
unsound
and
destructive practices. This was actucan

of these mergers on the ally the case in the twenties and
bank population has been offset early
Thirties when many banks
to some extent by the establish- failed and brought gr.eat harm to
ment

rvf

hanlr«

From
From

banks.

now

of

new

the

the

same

were

me^dTto
mio

Federaj
.g

bjgb]y

Merged banks rep4.5% of
he total

formed.

resented
number

For

never

350

new

about

of

and

banks,

they

in-

banking

excluded, the proportion of assets
involved

has

4%.

been

This

can

hardly be called an overwhelming

Moreover, it must be

movement.

apd

in

a

p

etm£n

been

.other

case

with

SSSiS

long been subject to public
watched

competition

has

hlf

jective. As the. .New York State
Banking Law #uts :the matter,
banks are to ^supervised and
continue to exist
and to serve regulated "in such a manner as
their communities as part of the to insure the safe and sound concombined
organization,
usually duct of such business; to conserve

.

large

in

mergers
an
an

adiuctment

adjustment

part

nf

our

_ot

our

destructive.*

represent

and

hanks

amona

banks

to

tas

Lss

;

strengthen

to

CertaiX
Certainly

strict,ire
structure

bankin

our

one

no

can

interests

of

Moreover,

tive

need for bank services.

Chairman

the

been

effect

n

depositors

nnH

of

level

of

authorities

runs

Board,

the

in
of

creditors

the

primary

concentration? Looking at the broad picture throughout the nation it has
not been
great.
The percentage
of total bank deposits held by the
100 largest commercial banks
(a
commonly
accepted measure of
concentration) is slightly lower
today than it was ten years ago47% as against 48%.
And it isj
substantially below the 57% of
total
deposits held by the 100
largest banks in 1940. Moreover,

the Federal

sfmhar vein, as the

to provide assurance that
banking remains competitive-an

s

■,

add,

»

ii

I

_

_i

i

t




ii

—

t

of

Sec

jurisdiction of the Federal Trade

statement of all the criteria to be
Ui ctu Lite UiilCUd IU UC

Commission. H.R.5948 would ex*end these merger provisions of
^

Section 7 to banks. Yet

comprehensive

otaicmcm

to

bank

would

mergers

Aeencv

legislative

bankigfield

g
PP

t

in

public

e*

the

power

bank

interest

the States have already

auihoritv

banks-

over

.ls
°
daily sudLvfsing and regulating the business
f b|nking and thus are
compe-

appraise

.

terestl wh[cPh
h

f

tL

gnd

the

of

in-

At

agencies

Governors

Reserve

Svstem-

«roller
tHe FDIC
,

„

tfa

f

,.

,

,

,

,

be final, based

u

f

considera.

bank mergers in the public in-

terest' o£ which competition is
In this respect- Con"

shou]d apply tQ bankg the

gresg

policv

came

th^

case

which

it

of

has

followed

in

okef industrtes

to

are

^1^4^

interstate
with
one

Commerce

regard

to

typical

rail

tlhe rail-

Commission
mergers,

is

example.

T

N

tions performed by banks, sine

some

qhmj]d

likp

the following:

Pxnia{n

,.

!

chief de-

...

should like to point out

.

V

t

nvin,nol

fll

ie^o^short-torn

®upP ei 01
are

an

credit

.n°.

c

todis'pensabto

l0nger?term funds
suctoving^f such
lending

of

P

to

..

of

source

Basically

the

credit involves
people's

other

/'
(c) Banks m the modern world
,

,

.

,

.t

.

instriJ"
u

SUP£-y

P4Ub

autbo/1.tl®s

.,.

''etotion^rTh.-re
°'
functions

?tlT

that

banks

useful

perform-

fn ' erformTni such functions pers?nal a'ld,. ^POfate trust
fankf eSv funds entrusted to s«vlces- collections, the sale and
them bTC DUblic It large
It E,ed®mptl°"
of, U- ,.S; fav}PSs
Inem oy iiie pupuc di large.
11
Bonds, and a long list of other
IbM blnfe hllflong3beT®subtoct frvipes- However,
£Pa* bba" tsJlave
bee"
functions stand out
;? publlc supervision and leguia

IlOn.

(b)

The nature of the functions
anks

undertake,

nation\ with

visory

Vdicts

the

laws

in
and

combisuper-

that apply to them,

have resulted in a structure of
banking in . the United States
which is unique. Some 14,314
banks of varying size and func|ion serve our country, and serve
well»
(c) The structure of banking in
the United States has never been
static. On the contrary one of the
great strengths of American bank-

For

process.

on the competitive
example, banking is

a
business which anyone can
enter who has the necessary capi¬
tal and who desires to go into it.

not

the above
in the sense

tbat banks bold a primary poSifinn
in
IVinir
nprfnrmanpp
nnri

tion
in
their
performance, and
they are essential to the healthy
functioning of almost all economic
life in our modern society.
One

has only to

the

banking

.

detan whv l

j

definite limits

the Federal Reserve Board,
FDIC, or the various state
agencies—exercise con¬
positories of funds for the general
trol over entry into banking; they
pubic, industry, commerce and
the
ability of existing
government. Moreover, as a re- control
banks to establish new branches;
lated matter, banks have become
and their approval is usually re¬
the chief medium through which
quired for any increase in capital
money payments are made within stock, Today in New York City,
the American economy, as well as for
example, it is not possible for
between our own nation and other
a
bank to open new branches in
rnnntrieq

H.R.5948.
to

capability of banks, the super¬
visory authorities place certain

rency,

the

ln.
interest of
maintaining stable prices and
i,
S'
.'
1
* minimizing fluctuations in busi(a) There are significant rea- ness activity and employment. In
sons why banks differ from other our country of course this control
industries. They are to be found is achieved under the direction of
in the special nature of the func- the Federal Reserve System.
brieflv

explicit terms by Con¬
in establishing the Federal

they help shape the organizational Indeed, existing "'Jjsanks are not
structure" of oanking and dictate even free to expand as they*may
the reason for public supervision, desire. The supervisory authorities
Very briefly these services include —the Comptroller of the Cur¬

Lve reached haVG. bpcome^ iht
501^Conclusions with^ respect to TntS thFGUgh
H R 594? IfTL
18 •C°n 1° 6d

in

re¬

an

gress

monev

Regarding

FDIC

the

set forth in

dustry and trade. It seems to me
important to grasp the nature of
th* more significant of the func-

the

H
Conclusions

to

expressed

subject to supervision and public
regulation long before any thought
was given to the regulation of in¬

in

subject

mergers

the

of

indicated

that is s0 closely related Deposit Insurance Corporation. '
to the safety of the public's funds
Moreover, it is relevant to note
and to the well-being of the econ- that in supporting their objective
omy as a whole that banks were to
foster
the
soundness
and

(a) Banks are

Approva, by such

,,

should

agenlces
Qn

it

to

such

Board

Federa?

.

public

attaches
level

Federal

jncjude

the

Chairman

—one

the

disapnrove

the

serv¬

objective which has been
many times by Federal
Reserve authorities, and which is

I pre-

service

in

poUcy

Rather

Q

grses and

t

as

banking

" V

it is

,

,

radically do industry form of
different or trade
than

admin-

to

should reside in the hands of
existing agencies to which Con-

t

,

.

indicaTe' that' the" Depart: viously suggested banks perform

Federal

p

„

_

essential

Judicary
they regarded as
primary in the exercise- of their
duties.
It is also the objective
which
the
Superintendent
of
Banking in New York State is
required by law to observe in his
regulatory
activities.
Likewise,

P^ons^of Sec-

By the Justice Department
a

banks

I

cently

apply to corporations in industry
and trade which fall under the

Moreover

others—that

•

para¬

Subcommittee

Banking Should Not Be Regulated

roadSi and the authority of the

protected whenever two or more
banks decide to merge or con-

need

is also fully shared

considera-

Drovisions

merger

appears

pointed out earlier, this
is the objective which both the
Comptroller of the Currency and

Industry and Trade

--ger

*

all

to

for

As

the

And

under

ices.

their

your

regulations

safe, sound and capable of
meeting the needs of the commu¬

these

and

the

of

be

can

on

investments

banks

mount

eco-

The Distinction Between Banking

administrative approval

hardly solidate in any way. With such
by the an objective L am in complete
supervisory authorities and the agreement, and' I am sure banknation's banks. Healthy competi> ers everywhere would be^in^action promotes the interest of the cord.
But as I read HX5948,
consumer in banking as it does in
would apply to a bank Wrger a
other industries. And as the head single
criterion in determining
of a large bank that is competing whether such a, merger would be
tooth and nail with a host of other contrary to the public interest:
banks and financial institutions, I namely, whether the effect of the
am continually impressed with the
merger might be substantially to
extent and vigor of the competi- lessen competition, or to tend to
tion that exists, and certainly not create a monopoly "in any secwith any lack of it.
On the con- tion of the country". Moreover,
trary, I am sometimes concerned H.R.5948 would plqce in the hands
that competition is so strong that of the Department of Justice a
which,

objective

rv^ot he
xjin

Comptroller of the

mergers'have

gress

significance for
tion of H.R.5948.

com-

uSifealthv

the Federal Reserve

though
not
With these facts in mind, then,
altered
the
basic
structure
of I should like to turn to a conAmerican banking, I well under- sideration of H.R.5948. As I unstand the desire of Congress to derstand it, the objective of H.R.
take note c£ them.
I appreciate 5948 is to provide assurance that
rvm
inioVct
io
nrinrumtoi,r
too that it is the objective of Con- the public interest is adequately
Even

Lch

be

contra

and 11 migbt W®U
P. ^uasive reason why the
* lnteresl dema"ded a »er-

only one'
.

objec-

Currency, and the Chairman ot
the FDIC have all recently testified.
Their chief concern quite
rightly is to provide assurance
that the nation's banks are safe
and sound and fully capable of
meeting the needs of the community and the public qt large. Such
is their principal ponsideration,
for example, in,,either approving
or disapproving the establishment
of new banks or new branches of
existing banks—a process, incithese same trends are borne out dentally, which itself places seby statistics for the 25
largest vere limits on freedom of compebank's and the 5 largest.
tition.

these mergers on bank

n

nrove

nrn" tiona that should be applied to

lnndHP.hI

shareholders

to the ability of banks to meet the
growing and ever more complex

has

t i t i o

no^ one can snarenoiaeis and stocknomers

deny thac they have added gieatly

What

c o m p e

such banking organizations

to among sucn hanking organizations

na^fnn?; fMeneein sn^h

the

n

L"8 I
serve

later'°the'se oftonev^to^mTnat unsounf
later, these of money, to ghmmate unsound

I snail point out

ht

y Pt

inf

^arefijdly by the §elegated

authorities, with the
public interest the paramount obsupervisory

appreciated that the facilities of
these merged banks in most instances
did not disappear-they

mM
As

j

actuallv

me
elaborate
Summary
statements

of

,-

objective that

'Vw ■v.- nity

Let

de-

that prevailed

ft rparSrr t?me

and

ill afford.

the

particular

a

business

nomic life which the nation

prove

than

American

on

merit of Justice is not the appro- a

"tply'l competitive

supervision, and

of

•competition

f

^

prob-

occasion

on

one

supervision of banks, it is
^kely to impose a straitjacket

It

considera-

imnortant

maintenance

nriate

has been the

as

these latter

*

clfearly

reasons,
the United States has

been

industry

St ££
have

If New York City banks are

sets.

these

possibie—indeed

migbt

e

'j

Industry;

banks

about

time

communities.

At the
t\i uie

Laws and supervision.

type

operate. Moreover,
it is significant that throughout
all
these
laws, regulations and
supervisory controls, there runs

the

em-

the

which

continues to permit broad objectives of this character to govern

objectives

very

State

can

few

a

tively- These are the objectives
which have guided supervisory authorities to date. Unless Congress

applied

r-nmmnnitioc

their

Banking A Freely Competitive

others
oiners.

merg^a

their

considerations

the community they

{-be

—

I shall
of bank

undertake is regulated;
the
reserves
they
must
hold
against deposits is governed by
regulatory authority; limits are
placed on dividends; examinations
by public authority are made on
a
regular basis—rmerely to name

community, and a level of comPetition which serves to promote
the public interest most effec-

other

^eir ability to meet

Qf

ited;
they

that

preserve

phasized heretofore in State and

serve

Vnkl

^r°fapm8oSt?hr A675
were
were

need^

the

to

wor^
^bat ensures
soundness,
ability to meet the needs of the

safety and soundneSs

or

details

that it is undertaken atiioth Fed¬

adaptability within a
supervisory and regulatory frame-

inflex-

and

the

supervision, except to recall again

of

power

of

some

eliminate-

vital

the

ag

in

should be

gress

hp

approach

an

mechanical

banks

public

basis

substantially

Such

w0ldd

absoiuteiy

impact

Innnt

be

and

gucb

the

tend

area.

tiong

competitive

in

over,

239,
total ol today.

particular

govern

the

competition.

into

go

eral and

criteria

mergers

competition

able—tdat

highly

of

they

iessen

terest, and in

firms

or

were

on

Whether

ible

in

not

solely

iudged

perform functions that are intimately related to the public in-

furniture

producers,

ence

is

such

dustry and trade generally. They

ducers

there

it

that

producers, chem-

there are textile

ical

industry

it

than

banks

more

are

other

state
the
beieves should

over

not

levels, and is car¬
ability, and recent mergers repried out under the authority of a
resent an adaption to underyling
economic trends of recent years, myraid of laws. The size and type
of loans banks can make is lim¬
(d) A primary objective of Con-

desirable for

be

may

to

mergers,
interest

long been accepted as sound in
banking.
Moreover, as a moment s reflection will make clear, the proP?sal to apply'to banking the provisions of Section 7 of the Clayton
Act involves vital considerations
which are not present in the case

'-Before

it

ercised

ing has been its adaptability to
changing conditions and changing
needs.
Mergers have long been
one
manifestation of this adapt-

ap-

judgment

my

sirable.

Congress

"in any section of the it provides a great-temptation to
depart from principles which have

monopoly
country."

In

of these provisions is de-

While

....

31

(91)

imagine

an

economy

in which there were no bank deposits, no payment by check, and
no lending by banks, to see why
this is so.
because the foregoing functions are essential, and because
they impinge on the welfare of

almost all citizens, that banking
already is highly supervised and
controls have long since been ex¬

many

of

areas

the

City.

Fre¬

supervisory authori¬
permit additional
offices on the ground that "there
is already an established bank in
the area and the opening of a new
branch might lead to excessive
competition. This same situation
prevails in many other areas of
the country as well Hence one of
the primary
requisites for free
competition—freedom of entry—
is generally absent in banking.
Likewise, the general level of in¬
terest rates which banks charge
quently

the

will

ties

not

are
subject at least to indirect
control, and thus limits are set on
the general level of bank earnings.

This

is

the

tivities
Board

of

open

—

of

result

the

various

Federal

ac¬

Reserve

market operations,

changes in the rediscount rate, and
regulation
of
reserve
require¬
ments, for example — which are
designed to control the supply of
money in our economy.
I

these matters

not mention

do

in any

spirit of criticism. Indeed,
they
are
necessary.
But .their
existence does serve to point "tip
further

the

between

differences

banking and industry and tradedifferences

which

assume

great

significance when th& proposal is
made, I think unwisely, to apply
to
bank
mergers
the identical
criteria which are applicable to
mergers

in industry and trade.
Banking
#

The Present Structure of
The

special nature of the func¬

the fact
supervised, the

tions performed by banks,

they
limits

closely

are
on

entry and expansion of

Continued

on

page

32

32

The Commercial and Financial Chronicle

(92)

Continued

from

40% in 1940. It perhaps is well to

31

page

I

banks, for whom the larger banks

alternative

out

Mergeis-Adjuslmeni
To Changing Conditions
the nation was left with 15,029
banks in 1933—only 5% more than

facilities, and to a certain extent
on
earnings,
dictate
in
large
measure
the unique structure of
banking

in

Now

there are large

have pointed out, the
of banks in recent

I

as

total

number

banks,

years

has been reduced

small

The

medium-sized banks and
banks, all
of which are
necessary to a healthy economy
and the well-being of the country. I have already commented
briefly at the outset of my statement
on
this
structure,
and
3>ointed to some, of the evolu-

very

little,

14,314 banks in April of 1955
represented a
net
reduction of

1945, or 1.6% of
the total. This can hardly be called
oniy

since

239

reduction in numtime, of course,
the number of banking offices insignificant

a

bers. At the

same

tionary changes that are occurring
in
it.
Only as one sees these
changes in proper perspective is
it possible to view objectively the

21,160 at year-end 1954. Moreover,
it is a tribute to the supervisory

present

SOUnd

mergers
and
their true significance.

to

creased

from

18,893

in

1945

to

authorities and their insistence on

assess

perform

essential

many

"concentration"

So-called

banking not only shows
increase

eral

in

banking

jective,

well

as

as

a

primary ob-

to Congress and

as

tration

is

nation.

small

so

in

Banks

in
gen¬

no

the

the

York

City

today compete with banks in Bos¬

Philadelphia,

Detroit, Chi¬
St. Louis, Atlanta, San Fran¬

ton,
cago,

cisco

Los

and

only

Angeles—to name
few. Let me cite a typical

a

illustration.
who

A

equipment
plants

various

ours

specialized

has

and

in

of

customer

manufactures

numerous

of

parts

the

I

indicated,
this

of

at

end

the

there

year

of

existed

in

30,000

the early

banks

that

1920's. It has

been

implied when such compari-

sons

are

was

made

that

better off with

the

country

,

of

place during the 'Twenties and
early 'Thirties, and it was brought
about
chiefly by bank failures,

us

more

usually
considered a prosperous period,
there
were
5,411
bank failures,
and many more were averted only
by merger. From
1930 through
3933 there
ures.

were

Thus

almost
failed.

through

one

We

existence
"Twenties

1929,

another 8,812 fail-

in ..a
12-year period
ouf of every two banks
know

of

today that
30,000 banks in

produced

the
the

unsound

banking. It led to a competitive
struggle for customers which in.duced practices that in the end
produced failure. This certainly
was bad for the country.
Actually,

Wl-

•

Competition in Banking
Let

lion in the number of banks took

1921

239

look at this net reduction
since

banks

closely.

Has

it

1945

a

meant

bit

that

are doing more of the
business, at the expense of the
smaller banks? Has it meant a
decline in competition? The short

large banks

to these questions is no.
already pointed out that
proportion of total deposits

answer

have

I

the
held by the 100 largest banks is a
bit lower today than in 1945 and

substantially less than in 1940.
graphically. Moreover, this same
general trend is borne out by
statistics

of the 25 largest banks
the five largest. Even when one
takes account of recent mergers,
or

the

25 largest banks hold only
about 31% of total deposits tdday,

compared

CHART

all

or

in

Boston,

these

of

and

one

banks

if

he

with 32%

in

1945

I

and

OF

fact, over the
past 15 years, banks in centers
outside New YorkCityhave gained
an
increasing share of the total
banking business. In 1940, for in¬
stance, New York City banks held
27% of the nation's total
cial

bank

and

commer¬

deposits. By 1945, the
had shrunk
to
20%

proportion

today it is only 15%. This in

itself is

within

of

measure

a

competitive

intense

the

that

pressure

exists

the

banking business.
competition among banks

Nor is

limited

know,

ether

to
we

banks.

under

are

As

you

all

pressure

the time to meet

competing terms
capital
markets,
consumer
credit
organizations,, insurance
companies, personal loan compa¬
nies, credit unions, savings and
loan associations, and of course
one of' the largest competitors of
all—the government. Not long ago
we offered a loan of $8,000,000 to
a
food processing company.
The
of

loan

DEPOSITS

of

matter

a

would

basis, and

have

However,

been

the

to

the

on

10-

a

actually made

we

commitment

serving the needs of
community. Yet if lessening of

flexible

test
applied
to
the
that led to many of these
bank situations, the bank¬

mergers

single

ing authorities might
compelled

proval.
tion

withhold

to

By

insisting

the

as

have

company.

company

never

for

test

paramount

mergers in

banking, you in effect
tying the hands of the
supervisory authorities in their
efforts to protect depositors and
borrowers
against
unsound or
would

be

banking.
be

This

contrary

certainly
public

the

to

interest.

to

No

Changing Conditions

one

tion's

deny that

can

banks

have

been

higher prices.
to

business

the

na¬

doing

they
to

were

three

an

are

individuals

what

ago;

loans

four times;

up

six

times.

There

question but that the post¬
expansion of industry, trade,

no

war

and

consumer

have occurred

buying

could

25-year

good rate of interest. Then again,
another good customer, this

with

textile

a

producer,

we

re¬

decided

to

within

business

for

large national acccounts,

tion

competition

in

where
keen

the

other business

no

competition

than

around

areas

world. There is

be

can

more

in

banking—always of
course
within boundaries set by
the supervisory authorities.
So far I have been

competition
banks, since
with which I
told

am

among

that
am

talking about
large
city

is

familiar.

most

constantly

business

the

I

heads
of smaller banks that competition
in

their

of

end

by

the

the

business

is

equally vigorous. Yet it is well
to
point out that almost twothirds of

our

banks

are

located in

centers which in 1950 had

a

popu¬

lation of less than 5,000. Many of
these communities cannot support
more
was

than

one

estimated

bank.

that

in

Indeed
1949

,it
ap¬

proximately 7,750 of the nation's
banks—more than half—were the

1950

1954

sole

banks

towns, and
SOURCES: AMERICAN BANKER-, FEDERAL RESERVE BOARD.

counties
bank.

in

their

respective

out of every seven
contained only a single

have

had

the need

to expand
if they
large-scale industry

to service

adequately.
Our

population and industry

shifting

away

from

centers.

Each

year

1,200,000 of

ing

the

industry

center

cities,

outer

regions

families

moving from the

are

the

to

than

people are desert¬
and moving to the

Within

suburbs.
and

are

established
more

our

city

More¬

areas.

the, Far West
and Southwest are growing more
rapidly than others. Banks must
over,

follow

like

their

in

customers

they

to keep

are

these

their

up

business and remain vital institu¬
tions.

And the rise of

trial

bring

ones

ments.

For

decline

further

one

must

areas

on

lished financial centers.
been

the

of

adjust¬

thing,
rapidly
depend in
financial help from estab¬

growing
part

indus¬

new

the

and

centers

old

Such has

history since the days of

our

canals.

(3)

striking change

A

curred
come

in

the

been created,

families

receiving

between

comes

which

2)

a

the

have

of

than

more

tive

banks

in¬

growth

which has

has

cash

chart (Chart No.

shows

group,

in¬

A great

$3,000 and $7,500.

I have included

this

people.

oc¬

of

income
group
has
with almost 55% of

middle

new

our

has

distribution

among our

banks

changed

little,

very

continued

Today there

nation's

to

grow.

about 4,150 banks

are

number

and

purchas¬
ing power since 1929. This middle
has

become

now

of

source

deposits

with deposits in excess of $5 mil¬

short-term government

Moreover,

were

over,

only 3,221 such banks. More¬
there are now 230 banks

with assets in

lion,

decade ago there

a

against 184 in 1945.

as

considerable

extent

this

To

a

growth

the

has

group

and

borrower

Costs

squeeze.

than

have been

I

have

already

few

past

marked

years

by

mentioned, the
have also been
increase

an

too

there
1953

as

in

added

the

banks, and

larger number than has been typi¬
cal of the years since the
early
'Thirties, although the number of
banks absorbed in mergers is only
small fraction of the total

a

—

While

the

has in

no

since the end of 1949.
total

sense

structure

of

of

these

has been
for

banking,
as

to

them.

to

more

rates

relatively low by

policy.

as

mat¬

a

The

result

lower level of earnings

a

Since
of

rate

1947, for example,

return

stockhold¬

on

serve

member banks has averaged

7.9%

as

against 11% in manufac¬
turing. One consequence has been
the trading of bank shares in the
market
at
prices
substantially
below

book

value

until

quite

(5) The United States has been
thrust
in

the

into

playing

world

a

larger role
Our for¬

economy.

eign trade is three times that of
we

in the whole

have
area

a

responsibility

of international

these mergers about? The Comp¬
troller of the Currency has re¬

economic cooperation that is
to us. The result
again is a

ported to

and

variety of reasons
which have required

you a

for mergers

his approval.
to

identical

banks;

to

combine

capacity;

management opinion that needs of
the

community required
larger
banking units; efforts to achieve
more effective competitive
status;
overbanked communities; and un¬
economic
banking units.
These,
are all logical reasons that
might"
be
Yet

expected

they

surface

to

are,

lead

in

to

my

mergers.

judgment,

manifestations

of

more

fundamental developments in the

American
ments

that

economy

confront

—

develop¬

banks

with

changing conditions and needs to
which

one

are

ing—particularly for major banks.
Growth of Retail Banking
These

trends,

have

made

banks

in

one

taken

together,

themselves

felt

to

variety of ways. For
thing, they have made it clear

that

a

than

more

needs

ever

the

nation

variety of banks—major
serve
not only their
local communities, but
large busi¬
banks

that

firms and other banks

ness

the

a

nation

sized

and

banks

abroad;

that

serve

across

medium-

regional

centers of industry and trade; and
smaller banks that specialize in

particular lines
are

or serve

areas

that

less

intensively developed.
Moreover, major banks, in order
to

provide

a

maximum of service

to the

they

must

to remain

strong.

complex job for bank¬

more

man¬

earning

owners

weak

new

larger

problems; prices attrac¬
shareholders;
desire of

agement
tive

These include

re-r

cently.

1940, and

bring

been

interest

ers' investment in all Federal Re¬

mergers

changed the basic

American

has;

banks than for the rest of in¬

the

mergers, and in
115 occurred. This is a

some

public

dustry.

206

were

of

growth
1954

Yet

held

government authorities
ter

banks.

cost-price

a

have

doubled.

In

the

to

from

placed banks in

reflects the huge expansion in the

However,

income

important

an

The post-war inflation

American

economy.

securities.

middle

become

stable

(4)

of $100 mil¬

excess

a

for

banks—offsetting in part a rela¬
decline in deposits by busi¬
ness
firms, which now invest a
large share of their idle funds in

lion; whereas

call public attention to
What
has
operated

for

lar
are

group

the

competition

immediate city, competi¬

vast increase in

a

banking services on the part
of industry, agriculture and con¬
sumers.
Major banks in particu¬

principal

of

part

their number has been such

own

meant

for

Throughout this whole period,
too, while the total number of unit

the

others in similar vein—illustrating
our

to our population. This growth in
production
and
population
has

income

vigorous and devoted ef¬

on

heavily
into the commercial paper market.
These
are
typical examples. I
could go on
and cite numerous
more

our

very

a

doubled, and this decade we
adding more than 25 million

are

banks.

fort

about 4.5%

go

and

growing at

Production since 1940

in

has

sold

has

summarized

headings.

production
are

tripled

without

this

and

not

its present scale

on

of individual institutions.

market

loans

times

decade

a

agriculture

to

is

Today bank

are

Our

(1)

be

broad

rapid rate.

shifts if

excellent

of mergers of

had




ap¬

competi¬

number

cently found borrowings being cut
back
rather
steadily. Upon in¬
vestigation we found this company

1

been

their

on

capital

BY

LARGEST BANKS

1945

in¬

of

made "drawings under the com¬
mitment. Rather, it went into the

time

1940

a

delphia,

debentures to the public at a very

100

banking
capable

or

Adjustments in Banking Structure

a

HELD

weak,

a

structure,
structure
that
is

would

year

PERCENT

have

to

banking

weak

As

necessary.

30,000 banks,

Yet, as was pointed out in a staff
report to the Judiciary Committee
several years ago, the big reduc-

From

is

agree

States has set up borrow¬
relationships with 18 banks
across
the country. Five of these
are
in New York, six in Phila¬

any

the

a

would

job in the postwar pe¬
number compared with the 5,411 desires, and there is no doubt that
riod.
Although deposits of com¬
failures in the p r 0 s p e rous he could call
upon a large number
mercial
banks have grown only
'Twenties. I might add that the
of^thers if he wanted to do so. 20% since 1945, loans have been
number of failures in recent years Needless to
all of the 18 increased almost three-fold—from
say,
would have been larger had not banks
provide the maximum serv¬
Congress empowered the Federal ice and the lowest rates which $26 billion to $72 billion. In the
same
period the Gross National
Deposit Insurance Corporation to
they feel can be provided in the Product increased
by about threefacilitate the merger of weak circumstances.
fourths, including the rise due to
banks w!ith strong ones where

savings banks. This is
by far the largest number of banks
in any country of the world.
It
lias
been pointed
out, however,
that this figure of 14,314 is less
half

unsound

were

and mutual

than

only

you

ing

two

might

population

have

think

United

suc'h legislation as the Federal each in
Chicago, Pittsburgh, Los
Deposit Insurance Act, that there
Angeles, St. Louis and Atlanta.
14,314 banks in the United States, have been only 19 banking fail- This customer can
borrow from
including both commercial banks ures since 1945—an infinitesimal
As

April

opments

single bank?
it cer¬
tainly is not, if the area can only
support a single bank and if the

should

the

insure

Thursday, July 7, 1955

.

under five

competition had been the sole in¬

to

.

counties

or

concen¬

across

New

the public in¬

towns

some

postwar

as

competition

vigorous

terest that

services.

period, but the degree of

today.

States—a

United

the

structure in which

the

of

amount

Bank

Is it contrary to

that
a
substantial
deposits of the 25
largest
banks
are
placed
with
them by foreign banks, or repre¬
sent redeposits of other domestic
point

.

These

adjust

if

they

sound, vigorous and
underlying

devel¬

community and the nation,
have had to become veritable de¬
partment
world.

stores

They

of

the

engage

banking
jm

retail

Number 5444

Volume

182

banking

at the

.

.

The Commercial and Financial Chronicle

.

community level,

other
banks at the national and inter¬

and also serve business and

gamut
of services such
able to attract the large

banks

are

of

volume

which

deposits

they

need to enable them to be of max¬

Likewise,

usefulness.

imum

operating

on

by

substantial scale,

a

major banks can achieve the effi¬
level

cient

of

costs

to

necessary

investments

of

The

squeeze

Celler.

man

establishment

the

of

branches

these

of

has

been

Low

earnings led to
selling in the market

bank shares

discounts which until quite re¬

at

cently

10%
to as
In some instances

ranged

shareholders

The

earnings,

pointed out in the past by Chair¬

support such services.

where its customers are.

corre¬

from

50%.

as

who

had

an

oppor¬

tunity to take their capital out of
the business by getting book value
or better for their shares through
undoubtedly
were
en¬
couraged to do so. But perhaps a

merger

subtle

more

effect

has

the

been

through the process of merger.
supervisory authorities often

relationship
between
the
costearning
position
of
individual
banks and their ability to attract
able personnel to carry on man¬
agement in the future. The Comp¬

will

troller

within

local

quently
this

infre¬

Not

areas.

only way -in which
accomplished
is

the

be

can

The

permit
areas

one

more

or

this is the

new branches in
already serviced by
banks. For example,

no

settled

for many areas of
City today, as I al¬
ready have indicated. But even
if permits were. available, _the high
costs involved in establishing new
case

York

New

branches

would

economical.
stances

them

make

un¬

Mergers in these in¬

certainly do not act to
competition. On the con¬

lessen

trary, they serve to introduce new
competitive forces into banking.

of

Currency has indicated

that the lack of

has

ment

important
recent

inability of a number of banks
compete effectively with indus¬
try and trade for the high quality
personnel which
is needed. In

to

the

final

analysis, this again re¬
earning position
Any public policy which

flects the inferior

as

ceiling
retail

rising

between
less

or

interest

on

reinforce

to

served

,

more

fixed

has

rates
the

trend

to

banking. Wage and salary
of banks are now two

payments

one-half

and

level.

Part

is

1945

another

employees.
payments also have gone up

two and one-half
costs

have

times, and other

risen

extensively.
other, businesses,
the banking system is not free to
raise its prices when the cost of
Unlike

many

doing business

moves higher. Nor
its over-all earning
except by small amounts.
the
total
of
commercial

it expand

can

assets

Thus,

bank deposits has risen

since

1945.

And

while

ernment's

monetary

permitted

interest

only 20%
the

gov¬

policy

rates

has
in¬

to

somewhat, the advance has
not been great enough to offset
the rise in expenses. As a result,
bank earnings and profits on capi¬
tal funds as reported by the FDIC
have declined from an average of
10.4% in 1945 to an average of
only 7.9% in recent years. And for
many banks the return has been
considerably less.
crease

bank

a

continued

be

independent entity even in
inability to support
management would in the

to total assets of 2.41%.

end lead to poor

banking and

pos¬

This ratio
as¬

sets of $2-$5 million and then fell
off

rather

for

large banks—those having

markedly,

sets of $100

deed,

for

more

than

in

1954

sets,

million

banks

particularly

with

as¬

In¬

more.

or

assets

of

$500 million, expenses
to

only 1.52% of as¬
30-40%
less than the

ran

or

smaller banks.

This
banks

saving
is

by

cost
in

a

larger

number

of

part, however,
it is
by spreading overhead

widely and by

more

use

realized

In

ways.

achieved

in

mechanical

an

and

ability to
electronic

should

like

further

one

to

enlarge

result

a

the

of

economic
trends
of
result I have al¬
ready referred to briefly: the in¬
creased
responsibilities that are
years—a

being placed
it

there

banks.

dwell

to

is

I

this

on

in
to the
adjustment
conditions has re¬

quarters

some

major

on

desirable

because

to

changing

sulted

in

tendency

a

further

a

growth

of

for

such
equipment to
handle
the
huge volume of transactions which
arise from the services they per¬
form, partly for smaller banks—

the

clearing

of checks, the




han¬

All

areas.

speedily

this

cash

has

needs to

be

to

done-

large amounts of cash
will be tied up in transit. Today
major banks have developed tech¬
niques to handle such transfers
or

almost

by

instantaneously,

wire

with

working

network

a

of

even

in

these

circum¬

stances the major banks need a
large lending capacity. Moreover,

of

extending
such
for judements
and the developing of new lending
techniques that require the serv¬
ices of expert specialists. This is
process

credit

As

do.

result,

a

restaurant operator who
equipment for a new loca¬
tion. I might add that major banks
not only make such loans direct¬
ly, but they participate in instal¬

an

out

the

been

country. The result has
substantial saving in

a

again,

been taken up

the

out

loans

very

way,

possible for

loanable
used

this

In

it

make

for

This

businessman.

small

cor¬

respondent banks throughout the
nation.

out¬

our

instalment

developing
the

of

one

business loans of their

ment

in business, but to expand
improve its services as well.

Then

the

needs

we

funds

for

in

major banks
an

one

of

excess

area

business

small

in

to

be

other

short of funds.

has

that

areas

A

by banks through¬
in the postwar

;

country

I

are

Stronger Banking Structure
believe it

would

be

serious

a

period.

mistake

such

toward mo¬
nopoly. As I have indicated, com¬
petition between such banks is

We ourselves are in sharp
competition for this type of busi¬
ness.
Ordinarily, the proceeds of

logins are used to finance the

instalments.

monthly

in

loans

full

the

cover

interpret the increase

size

in

of

major

banks

as?

way

any

sharp and continuous.
The re¬
alignments that have occurred in
the past several years have been

outlays that can be repaid out of

Such

the

in

acquisition or installation of capi¬
tal equipment or to cover other

income

to

tending

cor¬

respondent banks spread through¬

Continued

range

on

34

page

the cash needs of American busi¬
ness.

CHART 2

Similarly,
work

a

with

in

its

international
needs

company

correspondents

bank

a

to

and

national

our

DRAMATIC GROWTH

branches

or

throughout the world. The prob¬
lems of international payment and
finance in a world of exchange
controls, import quotas, licensing,
and fluctuating currencies are in¬
credibly complex. Yet this ac¬
tivity is beccoming increasingly
important to American business
interest.

OF

INCOME

THE MIDDLE
NUMBER

MILLIONS

OF

MARKET

FAMILIES

MILLIONS

60

60

Almost

55% of all

have income

of

Families

$3,000 —$7,499

My

bank, along with four others,
just embarking on a true in¬

own

area

—the establishment of the Ameri¬

Overseas Finance

finance

to

We

could

perform

the

services

often

of
equip¬
do this, or
specialized

called

export

and

not

many

international
unless

the

machinery

in

for

the

both

domestic

or

fields,
well-

calls

particularly the case in industries
like petroleum, the utilities, the
metals, and those devoted to the

Under

$3,000

possessed
a
fully-integrated organi¬
zation capable of drawing on the
we

rounded,

all

of

resources

community

of

segments of the
which we are a

part.

Concurrent
service

to

,

with

CASH

INCOME

BILLIONS OF 1953 DOLLAR

225

225

And

the

growth of
and
inter¬

national

1953

1947

1941

1929

BILLIONS OF 1953 DOLLARS

Help to Small Business

55% of

Total Cash Income

Families in the

goes to

$3,000-$7,499

group.
Over

national firms, major banks have

tlieir

expandbdh

in

activities

$7,500

sup¬

port of small business. The growth
of retail banking has as one of its
prime objectives the improvement
in

credit facilities for small
As

ness.

matter

a

shows that

busi¬

fact,

the

loans

bank

firms

150

150

are

small

medium-

$3,000 to
$7,499

relatively

financing

sized

of

important

more

than

and
is

large

companies.

serves

community be adequately

met.

to

the

Chart

illustrate

this.

75

75

of

case

No.

4

shows

It

the relation of bank credit to total
assets of

Under

manufacturing companies

of different sizes.

As

be seen,

can

about

use

twice

a

do

as

1941

1929

large

cor¬

SOURCE: FORTUNE

MAGAZINE,

porations. Today these small and
medium-sized companies are get¬
ting the credit they need, and they
are
getting it from major banks
well

as

that

from

as

it often

deed,

takes

new

lead

the

in

bank

SIZE

small

Let
our
a

RATIO

cite

us

example

one

OF EXPENSES

TO

OF

TOTAL

MARKET*

3

EXPENSES

as

business."

AMERICAN

CHANGING

CHART

developing

for

"THE

OPERATING

In¬

ones.

major

lending

of

ways

small

is the

1953

1947

credit

much

as

relative to assets

$3,000

a

the small and medium-sized firms

FALL

the

BANKS

INCREASES

ASSETS-1954

from

experience, the result of
problem faced by the telephone
own

industry.

There

are

2.50

almost 5,000

individual telephone

companies in

the

United

States,

of them

many

quite small, ranging from

a

dozen

rural

on

After

World

telephones
War

II

these

2 25

halfup.
com¬

2 00

panies faced
growth,

crisis.

Population
decentralization
of
in¬
a

dustry, and technical change made
it

technology grows more complex
each day. Only banks that possess

Yet
and

credit

75

I

for them to expand
replace obsolete equipment.
they lacked funds to do so,

substantial

I

50

and to

peacetime

use

of the atom, where

resources

can

eco¬

nomically employ specialists
geology, atomic physics, and
these industries

need

their

on

They
from
branches to the home office, and
send out funds to cover Expenses
at
factories
in
many
different

in

Only if existing banks continue
grow will the needs of business

banks

unusual

earlier

the

the greatest extent possible.
must transfer sales receipts

it.

the

to

This

standing competitors, First Na¬
tional City Bank, has pioneered in

much

But

able

them.

fund

to

economize

by banks that fail to expand with

met.

were

stay

record

and the

amounts

again,
companies
with
widespread
operations
need
to

should not and will not be fettered

gineering,

an

in

object

to

existing banks, rather than the net
addition of many new and smaller
units. I personally feel that such
a
development has been inevit¬
able. Moreover, I 'am convinced
that the American economy will
continue to expand, and that it

to

to.

capital in relatively modest

term

and

fact that the process of

equipment most effectively. Major
have

them

Then

credits

underlying

feel

enterprise — from the taxicab
driver who borrows to buy a cab

provide long-

great industries, the smaller busi¬
ness portion, was able not only to

undertaken

so

period.

ment.

recent

could

important segment of one of our

American

Major Banks

on

of

to locate institutional in¬

who

33

Corporation,
designed to provide medium-term

The Increased Responsibility of

Now I

was

little

can

sible losses.

bit

of

were

task

vestors

developed that the bank had not

able

pres¬

somewhat for banks with

rose

fully half of today's loans
types either unknown or

is

The great increase in postwar
production, as you know, has been
accompanied by a huge expansion
sure
to economize through com¬
of industry. Companies in numer¬
bining in large units. One of the ous
lines
now
have
plants
characteristics
of
banking is a scattered
throughout the country.
tendency for the operating ex¬
Indeed, many of these companies
pense ratio to fall as the size of extend
their
operations
around
the bank
increases.
I
have< at¬
the world. Such companies need
tached a chart, (chart No. 3) which
a
host of banking services, and
covers the experience of banks in
they often require far more credit
1954 and serves to illustrate this
than any single bank can furnish.
tendency. As you can see, banks
By working with major banks in
with total assets of $1 million or
the larger centers, as well as with
less had an average ratio of cur¬
local
banks
where
plants
are
rent expenses (exclusive of taxes)
located, such credit needs can be

earnings has been further

today with those

and discovered that

ago

novation in the international

One consequence of this squeeze

on

its loans

of

years

the face of its

main

of two-thirds

in the salaries <5f bank
Tax

an

that

larger

advance

an

their

reflects

but

employment,
cause

times

this

of

for mergers in

reasons

the

The

the

most

today, and it stems directly from

insists

squeeze

the

of

one

30

years.

•

of banks.

and

manage¬

This ' management
problem is one of the most serious
confronted by banks as a group

The Influence of Rising Costs

costs

successor

been

ciated. One major bank, for ex¬
ample, recently made a compari¬
son

bank

on

One

mergers.

; Moreover, if a major bank is to
be in the retail business, it must

great growth of the middle income
group, and their trend away from
the centers of cities, has dictated

for

of course, has had other effects
that also have tended to encourage

much

go

held

spondents and the like.

By providing the

national levels.

whole

dling of collections, the servicing

(93)

which

in
en¬

needed if
to be serviced

are

are

adequately

and
competently.
I
might add that the extent to which
major banks develop new bases
for

lending by the use of such
experts is not adequately appre¬

necessary

companies
them.
the

sources

were

Our

bank

own

situation

used

and

learned

studied

intensively. We
gan-making loans,
dustry

amounts

of

as

by large

not then open to

little

the

of

soon

be-

some

for

as

of these loans could only
repaid over an extended pe¬

riod,

however,

and

part

LOO

$1,500.

Many
be

I 25

in¬

of

our

BANKS

6*

DEPOSIT SIZE

—r—
I MIL.

OR

LESS

—1
1-2
MIL.

1

1

I

1

1

I

1

2-5

5-10

10-25

25-50

50-100

100-500

MORE

MIL.

MIL.

MIL.

MIL.

MIL.

THAN

MIL.

5QG

SOURCE:

C0MPUTE0 FROM DATA

IN

F.D.I.C. ANNUAL REPORT, 1954.

MIL,

The Commercial and Financial Chronicle

Deposit Insurance

33

Continued jrom page

would

direct

ties in

struggle,

17,,^^infl ibl
Xxihle

which
^Increasingly

heaUhyCTOmpetition,

but

mppt

the

-f/or ohK

h

our

Isofui5 r°o?ee

"in

si^e —ranging

from

spread

under

ihese agencies, unae

PujjP°se-

their

Close to

majority

great

states> ha.ve, ,aisf.
as, "J®1/
Parai?ou5? objective sou d
»
well- safe for their depositors, and c p-

10,000 are

the country, and the

across

today

are

Lnaged ind^ore Wealthy

than

the

The

people

'

'

.

The process of

be

Comptroller has testified that this,
criterion
was
uppermost in his

,

adjustment must

continuous

a

,

the

for

one

na-

mjn(j when ke approved the merg-

tion's banks.
banks
to

in a

the

Any attempt to hold
static mold, impervious

th§ rest

ing

of banks
tract capable

reshaping
would be to

forces

dynamic

society,

impotent.
Yet throughout
of adjustment the
public interest must constantly be
the

It

forefront.

task of the supervisory

to

see

that

this

does

5948,

fail

by

uncjer

to

which

sharply
H.R.

usefulness.

applying

mechanical

authorities
not

their

limited

the

is

manage-

successor

capacity

earnings

process

in

at_

not

necessary size to serve their cornmunity adequately; that had weak

ually

held

could

that

ment; that could not achieve the

render them less useful and grad-

this

venience

of

needs

and

the

con¬

the

com¬

munity served by the banks.

parently,

however,

the

Ap¬

examina¬

tion of these factors would be
demic

if

the

authorities

aca¬

decjide that the effect of the merg¬
might lessen competition "in

er

Thursday, July 7, 1955

.

test

the inflexible,
of
competition
could

circumstances,

any

not

case.

TT

a*nC

n

as

the Federal

amendment to

an

CHART

There

is

H.R.

to

That

is

hands

the

of

further

one

5948

which
fact

the

I

objection

would

it

that

cite.

places in

Department of Jus¬

this

would

banks

be

also,

matter,

subject

dustry

as

LOANS

trade; not withstand¬
existence of experienced

agencies

expert

specifically

established by Congress to super¬

vise and
In
a

regulate banks.

most unwise

trast

it

able

that

would

highly desir¬
bank super¬
accorded full

seem

existing
agencies be

visory

exclusive

and

responsibility for
administering whatever national
policy Congress lays down for as¬
sessing all aspects of bank merg¬
,

As

ers.

I

indicated,

the

cies

at

Federal

the

Federal

such

level

agen¬

include

Reserve

Board, the
Comptroller of the Currency, and

and

exclusive

responsibility

action

Federal

would

make

for

a

an

area

not only Federal agencies
involved,
but State super¬

agencies

well.

as

More¬

the

public interest—a policy that
experience has long since shown

ASSETS

$

5 MIL

\

\

y

/

\

indicated, I believe that the

V
\

^

OF

$ 5 MIL. TO IOC

.

services

of

\

•

/

X

\

\

>

/

maintenance

the

/

ASSETS
'

criteria

\ 1
\

OVER

is

best

|95,

1

1952

Gidney,
Cook have

and

this

to

effect.

1953

as

1954

ferred

stock.

•;

associated

in

the

under¬

Crowell, Weedon &
Co.; Cruttenden & Co.; DempseyTegeler Co.; Fairman, Harris &
Co., Inc.; Link, Gorman, Peck &
Co.; Loewi & Co.; Newburger &
Co.; Fusz-Schmelzle & Co.; Ham¬
lin & Lunt; Irving J. Rice & Co.,
Inc., and Dallas Rupe & Son.
are:

shares

87,500

cumulative

of

convert¬

underwriting group
headed by Straus, Blosser & Mc¬
Dowell at par ($10 per share).
The

by

preferred stock is con¬

new

vertible into

common

stock at the

of the holders at the rate

0.90

With Stone & Webster
(Special to The Financial CiamoNiCLi)

an

common

shares

for

each

CHICAGO, 111.—Daniel C. Trinhas
kaus
joined
the
staff
of
Stone

&

Webster

poration,

33

Securities

South

Mr. Trinkaus was

Clark

Cor¬

Street.

previously with

Hulburd, Warren & Chandler.

preferred share.

It is redeemable
30, 1960, at
$10.75 plus accrued dividends and
on

before

or

June

Two With Webber

thereafter at $10.50 a share.

will

be

duction

and

from the stock sale
finance

to

used

assembly

the

of

Given

ter

new

a

now

the

and

Continued jrom page
-

&

Street,

Midwest

Stock

.

With Real Property In v.
(Special to The Financial Chhonicie)

BEVERLY

HILLS, Calif.—Jack

W. Dresser has joined the staff of
Real

ended March 31,
1955, the company had net earn¬
ings of $310,296 on sales of $10,year

...

h

are

Simpson

Salle

La

the

of

Exchange,

man¬

f'ulverator."
the

members

commer¬

garbage disposer units under
trade
name
"Waste
King

In

South

208

Takahashi

Webber,

with

Co.,

V.

Frank

and

1

Manufacturing Co.

ufactures household

cial

CHICAGO, 111.—George W. Por¬

pro¬

dishwasher; to redeem outstand¬
ing shares of series A cumulative
convertible preferred stock; and
to augment the company's work¬

ing capital.

Simpson

(Special to The Financial Chiionicle)

Property

Investments, Inc.,
Drive.
Mr.
previously with Sam¬

South

233

Dresser

uel B.

Beverly

was

& Co.

Franklin

5

"•

•

'■

...

Observations..

fO".

.

fight insurance to meet the heavy costs for the "outs" who become
the "ins"

as

well

as

the "ins" who

ousted.

are

;
4

Furthermore

it would

appear

#

that those individuals in man¬

agement who benefit by the decision in the proxy contest, or hope
benefit, should not have an entirely free ride—all to gain no
how much of the corporation's treasury is invaded.
It

appear that they should be assessed for some share of
the cost so that they will be more prudent in contracting the
expenditures.
The seemingly endless mailings in the New York Central
and Montgomery Ward fights with repetitions of proxies became
harassing to most stockholders.
If the time element during
which the campaign mailings
could be conducted were limited, it might serve to limit the

would

the

restate

that

should

significant

govern

decisions

But such

Fed¬
with

see no

statement

a

structure

to

of

banking, as well
mergers—particularly to the

establishment

of

new

banking offices.

ly ask that any

new

banks

I would

and
on¬

statement not

SOURCE: F T C-S.E.C.

depart

from

principles

number of mailings.

L

New Rules Needed

Proxy fights would appear to need a new and modern

set of

Queensberry rules fair to shareowners as well as contestants.
So long as the SEC sees fit to limit stockholder resolutions to
be printed in company proxy statements to 100 words for a stock¬
holder to state his or her reasons, I can see no reason why some
sort

limit

of

cannot be put

by the SEC upon management's and

contestant's verbiage for the same

reason

given to stockholders—

of printing and mailing. In the instance of stockholder
resolutions it is peanuts to millions in proxy fights.

expense

The

to

Fulbright Committee in its hearings made no real attempt

get fresh or practical viewpoints.

two

In calling the principals of

fights but not calling qualified shareowner repre¬
it heard only those with self interest which
hardly ;be called an impartial or constructive "studv."
You will recall that at the last Annual Meeting of the New
major

York

proxy

or

press,

Central when Robert Young refused to allow any discussion

management resolution for reimbursement of the insurgent's
in the proxy fight until after management had voted
the unmarked proxies and other proxies it held in favor of it
and closed the polls, I brought to the stockholders attention the
need for proxy fight insurance at New York Central.
With an astute and militant minority now contesting manage¬
of the

expenses

policies in Alleghany Corporation which is the holding
controlling New York Central, who can tell what may
eventuate? jAlleghany and New York Central both need proxy

ment

criteria, in my judgment, should
apply to other matters that affect

new




June 30

can

my

of

the

,950

to

in it.

harm
1

common

stock, $1 par value;
short-term
bank
note;
and 87,500 shares of the new pre¬

preferred
stock
of
Given
Manufacturing Co., Los Angeles,
Calif., was publicly offered on

pro¬

highly
of

regard to mergers, I would

\

i

Martin

authorities in

eral

$ 100 M ,L.

f

■

of

6%

sentatives

Messrs.

mergers.

testified

sirable

COMPANIE S WITH

/

X

V

To

I

Nevertheless,
if
Congress,
in
reviewing developments in bank¬
ing should conclude that it is de¬

%
%

*

/

%

,949

the

provide.

services

such

desirable.

all

%
%

\

^thot. OF 1948

banks

that

too

Mooney,

\

-

which

actions they take with respect to

\

•

sound

a

of

bank-

1'

para¬

Congress

knowledge, supervisory authori¬
ties already are guided by these
objectives in the administrative

1

X.

of

healthy competition in the

vision

1

.

be

believe

\
\

W ITH

^
1

objective

banking struc¬
ture. capable of meeting the needs
of the community for the unique

I

J

or

should

) MIL.

/

imply opposition
all actions of Congress

strengthen the supervision, of
banks in the public interest. As I

/

* V

%

any

mount

ASSETS

5948,

to

jj
1
1 COMPANIES

w

<s

to

K

'

to H.R.

I do not wish to

h

\

thus objecting

In

\

h

VITH

UN DER

B

to be sound in such circumstances.

\

out¬

matter

in

industries that are already
subject to Federal supervision in

\

of

to

especially

—

PERCENT

COMPANIES

issue

co-

it would depart from a pol¬
which
Congress
has
con¬
sistently followed in the case of

\

redemption

$500,000

and
con¬

Mfg. Go. Pfd.

Net proceeds

judgment this would be
procedure. In con¬

my

An

of

icy

8

of

is

Stock Offered at Par

option

over,

TO TOTAL ASSETS

well

Also

Given

in¬

and

ing the

visory

<

so

writing

the

to

procedures and tests

same

and

In

8

PERCENT

time

the

ible

pointed.

other

OF BANK

of

and

sue,

standing preferred shares, capital¬
ization
of
Given
Manufacturing
Co. will consist of 172*284 shares

supervision which has

test

discarded, or distorted
duplication and

tors

are

USE MORE BANK CREDIT

RATIO

not

possible

MANUFACTURERS

maxi¬

a

nation and

overlaid with

ordinated, harmonious approach
to bank supervision well nigh im¬

4

our

fusion.

series

where

SMALL

the

ing a merger, irrespective of the
direction in which the other fac¬

*

ly introduced by Chairman Cellar

large. The maintenance of healthy
competition should also be an ob-

render

And I would hope, too,
the -process the existing

in

stood

section of the country." For
event,
it appears they
would be prohibited from approv¬

of

,

that

this

he]p kut cause a withholding
the FDIC. These agencies are the
approval for many mergers that
What are the criteria that should would normally occur for these ,experts at the Federal level who,
be
applied by the supervisory and similar reasons. I doubt se- by reason of their special infor¬
authorities in their administrative riously that this would be in the mation, experience, and study in
the
field
of
banking, are most
actions that bear on the structure
public interest,
competent to weigh the complex
of
banking.'
I believe that the
Moreover, I might add »paren- factors involved in
any determina¬
paramount
objective should
be
thetically that the same objection tion of the effect of a bank
merg¬
sound banks and sound banking,
which applies to H.R. 5948 can be
er upon the public interest.
Fail¬
adequate to serve the needs of
ure
to accord these agencies full
the community and the public at made regarding H.R. 6405, recentbe the

425,712, compared with earnings
$240,314 on sales of $9,333,351
the previous year.
Giving effect to the current is¬

its people.

any

in

to

of service to

mum

to

were

mergers.

agencies

as

the structure.

structure of

managements; and

tice the responsibility for enforce¬
ment of prohibitions against bank

be dominant in number within

to

.

of

banks

them

the

of

J^nos

Indeed, small banks continue

ter.

"result, Canks

elt'

decades of experience have
us are wise and sound, and

permits

bank merger,
factors as the

a

such

condition

* in for
As
have been highly supervised by

servkeTTe na^ion-

international in charac-

wide and

s

c?ose ?o "a

century Co^
small banks greSs has treated banking as an
Yet for

'"of'their'"commufote"'?^

need

thdse whose

section of the country.'

any

P^lic authorities rega d b

tanks oT'every

for

it

stantial "ng of co^etition

needs

expanding
complex economy. And that strucof

when

does

provides that a bank merger be
judged solely on the basis as to
whether it may lead to a sub-

judgment,
a
stronger and
more
useful banking structure
my

•

effect

in

5948

H.R.

many

taught
that

their

to'^ngtag conditions and^mder- ««t which overrides all other
to.changing c^diUon^an^underis what
lying trends in- our economy. Out
of that process is emerging,
in

bill

banks;
the
adequacy
of
their
capital
structures; their future earnings
prospects; the general character of

mechanical
mechariical

g

That

be permitted to con¬
develop in a manner that

approving

"consider"

financial

competitive^nofbe
banks

of that
with individual
wnn

reflection

t«

Act.

supervisory authori¬

tinue to

to

Bank Mergers - Adjustment
To Changing Conditions

of

.

(94)

34

which

company

fight insurance if stockholders and employees are to be protected,
also Montgomery Ward (of which I am a stockholder), as we are
not sure the final round has been fought there.
I

that it can
resolutions where I

understand

introduce

be

written

believe

I shall

and

they

are

needed,

certainly
such

as

Pennsylvania RR., to protect the pocketbook of shareowners.
A discussion on this subject may set up a little competition
among

the insurance underwriters for
a growing need.

a

new

form of insurance

for which there is

Sincerely,
WILMA

SOSS

President,
Federation of

Women

Shareholders

in American Business,

Inc.

Volume

Number

182

Continued

from

5444

.

.

The Commercial and Financial Chronicle

.

(95)

15

page

Theodore Weicker, Jr.
Our

News About Banks and Bankers
CLINTON TRUST

COMPANY, NEW YORK
June 30/55

Total

Deposits
Cash
;

H.

S.

rity
Surplus

1,214,484

1,095,298

*

*

COUNTY

TRUST

BROOKLYN,

N.

Y.

Dec. 31/54
$60,892,887

Deposits

59,217,583

and

U.

secu¬

of

13.229,513

12,817,762

14,781,694

13,630,044
882,213

its

,975,335

*

-

*

*

Arthur T. Roth, President of the

Franklin National Bank, Franklin

Square,

Island,

Long

announced

Additional new/money requirements of the
government in excess
of the $2.75 hillion now provided for will be raised via the sale
of Treasury bills.

*

*

New

York,

National

City,

its

of

in

capital

from
result
$175,000

as

a

of

dividend

addition

further

a

Bank

which

Ind.,

$350,000

to

made

to

Manager of the

Office

to

Manager.

Assistant

as

it to

in

effective

became

The

issue of

June

on

increase

earlier

our

May 19, page 23^7.

Lattanzi

Mr.

First

The

National Bank of Bellmore which

with

merged
tional

The

Rank

Franklin

December

will continue

Na¬

1953

his activities

and

in

de¬

veloping
the
Bellmore
Office
which, it is stated, has increased
some
$212
miliion
since
the
date.

merger

*

Over

80%

of

of

capital

of The Jamaica National

stock

Bank

of

Mich.,

Detroit,

has

re¬

ceived

approval from the Comp¬
troller of the Currency to call a
special stockholders meeting to
consider

and vote upon reducing
value of its stock from
$20 per share to $10 per share.
The meeting will be held on July
12 and if the proposal is approved
by the stockholders an additional
the

par

shares

400,000

*

the

Bank

creasing
total

to

will

outstanding shares.

New Yerk, of Jamaica, L. I., N. Y.,

vious item

located in the borough of Queens,
has been exchanged for shares of

A

Midland

cording to

Corp.

stock,

available
jointly by Bayard F.
Pope, Chairman of the Executive
of

Marine

Midland

dent

The

cf

to a proposal made by
Midland Corp. in a pros¬

response

Marine

pectus

cj,a|g.d June 16, to exchange
its

I.6 shares
each

The

share

Jamaica

established
three

National

in

1924,

offices

Queens

in

stock for

common

Jamaica

of

in

National.
Bank

and

the

New

fied

liam \A.

National

was

operates

borough of
City. Ac¬

York

Midland

the

Bank

by

Marine

Corp. under the terms of
the plan

prospectus precedes

to

The

merge

Bank

with

Jamaica

National

Marine

Midland

The

Trust Co. of New York, a Marine
Midland Bank.
:{t

The

*

tional Bank of Yonkers, N. Y. and

The

County Trust Company of
White Brains, N. Y. became ef¬
fective at the close of business

June

39.

ferred

The

to in

2SS8,

page

consolidation,

added

on

re¬

four

offices

to

The

County
Trust
Company's
county-wide operations, bringing
the total in Westchester to 34, with
six

of

>As

them
result

a

serving
of

the

in

Yonkers.

merger

about

$30,131,0C0 in assets and $25,835,in

000

deposits

were

Trust

totals,

County

added

to

bringing

Couzens,

former

now

a

Trust

member

Chairman

and

of

The

County

Company board of directors

Committee.

of

All

the

Executive

other

Central

National personnel were retained.
The

New

York

Department
30
on

that

that

State

announced

Banking

date

to

the

June

on

approval had been

given

certificate

Bank

and

Trust

St.

1955.

Treasury, along with the demands for funds from busi¬
ness, will have a tightening influence upon the money markets,
and unless there is going to: be more than
temporary periods of
relief on the part of the rtionetary
authorities, interest rates are
going to be on the firm side.
The recent increase in the rate
in

date

of

for delay¬

reason

ing the date of the merger is that
the

physical consolidation cannot

take

place

building

said,

until

First

By

30,

Dec.

building

"our

reached

National's

further

is

program

vanced,"

ad¬

1955,

will

where

stage

a

the

demand

lieved

that

which

future.

take

in

same

value.




par

is

around

for

loanable

the prime bank rate will
It

place

he

have

the

con¬

The
the

is

funds.

Also

be advanced

it

is

be¬

bond

is also feeling the effects of
according to the opinions of
money market.
It is the belief of this
though there could be further increases in margin

in

the

followers

United

Bank

notified

were

of

Srenco
which

Trust

by

President Jack

special

a

Company

meetng

at

they will be asked to vote

the

on

and

consolidation,

also

on

July 22.

that,

even

market

stock

of

which

on

market,

of

of

any

its

until

pressure

the

equity

market

has

returned

2562,

by

17

banks.

stable operations and has given up a good deal of its position
in the spotlight.
It is being pointed out that 1956 is an election

though

even

far

of

directors

provides

770,000

plus

shares

representing
shares

70,000

of

that the

of

a

to¬

capital

700,000

First

outstanding,

now

shares

new

could

be

Bank

reopening of the 3s of 1995, on a partial payment basis,
$750 million of new money for the Treasury has been
taken pretty much for granted, because "open mouth operations"
raise

had
an
a

this

of the financial well tabbed in advance.

part

available

supply of long-term

shares

of

stock

of

the

Co.

entire

only

limited

amounts

of

through the medium of

money

capital

institution.

of

value

$20

of $100

Citizens

of
as

stock

per

*

The

be

can

raised

Los Angeles.

to

take

the

charge of

devel opment
of

the

Over¬

Division

seas

Sons,
his

which

Theodore

a

Weicker, Jr.

in
family

company

owned
trolling interest since 1905.

con¬

a

Under

Mr. Weicker's direction the Squibb
Overseas Division became a major

part
E.

R.

of the company's business.
Squibb & Sons is now a

Division

of

Olin-Mathieson

Chemical Corp.
Prior to 1939,
senior

Mr. Weicker
in his

partner

firm

Exchange

Company

and

the

1930

was

Exchange

admission

previously

was

&

member of

Stock

"Chronicle"

the

a

1940.

Weickler

Mr.
firm

to

was

Stock

own

Weicker

of

York

New

from

the

to

in

reported

of June

23.

Salomon Bros. Places
Western Union Debs.
Salomon

negotiated

Bros.

institutional

with

has

Hutzler

&

private placement

the

$38,500,000

25-year

investors

4Vs%

of

deben¬

series

1, due June 1, 1980,
Union Telegraph
Company.
6
.Proceeds
frojru the borrowing
will be used by the company to

tures,

Western

the

ment

because,

$35,000,000 of 5% bonds
due in 1960 and $2,000,000 of 4%%
debentures

this

since

has

It

has

bond
been

been

outstanding,

it has

reported

in the

that not

past

1980.

LONG

BEACH, Calif.

—

Robert

C. Burdett is with Daniel D. Wes¬
ton

&

Co., 812 Pine Avenue.

Joins Calif. Investors
(Special to The Financial Chronicle)

LOS

too

E.

ANGELES, Calif.—Marvin

Brooks

with

has

become

California

affiliated

Investors,

3924

Wilshire Boulevard.

additional

The

new

money

bonds

which

will

be

outstanding

as

a

result

financing of the Treasury should help to build

the marketability of this obligation. This should result in a
more steady and stable price range for the most distant Treasury
up

larger floating supply of this bond,
and dealers to perform more readily

issue, since there should be
will

enable

trades

a

F' i*:
v

t

U. S. TREASURY

Treasury Bills Continue in Demand

if

the shortest government obligations

is

a

sizable demand

is

expected

the yields will

not

levels.
mercial

still

Federal will also
banks to

ease

most likely be done

tend

will

to

and

to 1.541%.

up

for Treasury bills, and

it

from existing
help is given to com¬

advance too much

to it that some

see

the

around

situation from

time to

PUBLIC REVENUE

This will

time.

through the purchase of Treasury bills .which

keep yields within

SECURITIES

desired limits.

Two With Fabian Co.

T. R. Peirsol Adds
BEVERLY

HILLS,

(Special to The Financial Chronicle)

Calif.

par

while
a

par

Clement R. Tunell has been added

Co.,

formerly with Demp-

was

sey-Tegeler &

Ashton

C.

ward

Greenwood

9645 Santa Monica Boulevard. Mr.

Tunell

BEVERLY HILLS,

—

Co.

ated

with

have

Calif.

and

Fabian

&

—

John

become

Ed¬
M.

associ¬

Company,

9500 Santa Monica Boulevard/Mr.

Ashton

was

previously

with

Shearson, Hammill & Co.

AUBBET G. Lanston
& Co.

s

'with

has

May

STATE, MUNICIPAL

The $100 million additional offering of Treasury bills pushed the
overall yield of

20

National

Bank

INCORPORATED

With E. F. Hutton

of

(Special

common

to

The

Joins Bailey Staff

Financial Chronicle)

15 BROAD

(Special to The Financial Chronicle"*

ST., NEW YORK I

-

WHitehall 3-1200

been

ab-

by

the

Bank

of

B^KERSFIELD, Calif.—Walter

LONG BEACH, Calif.—Jack E.
Stiverson
ton

&

way.

is

now

with E. F.

Hut-

Company, 219 East Broad-

B.

181 So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON t

ST 2-9490

HA 6-6463

Tillery has joined the staff of

Bailey & Company, 1722 Chester
Avenue.

f

The Financial Chronicle)

on

point.

which

(Special^to

not

buy orders in the longest 3s have run prices up more than

of the

in

due

With Daniel D. Weston

the

by

big supply and price movements have thus been

side.

erratic

sizable
a

redeem

Treasury
Pension funds, with a

long-term bond.

a

share.

if

$75,000

Security-First

has

National

Cal.,

of

share

per

Bank's

re¬

is

leaning towards the public variety, as well as small insti¬
tutional investors and commercial banks, with substantial amounts
of savings deposits, have been attracted by the reopened 3s of
1995.
It has given these buyers an opportunity to get needed
amounts of this bond at a set price, which is a favorable develop¬

First

National's capital stock has a

United

There

decided

to the staff of T. R. Peirsol &

value

firm

around, but it is finding
better return in non-government obligations, which means that

in

10,000

outstanding

that

he

First Na¬

Trust

and

lor

of

tired from the

money

^Special to The Financial Chronicle!

exchange

time

of

the government bond market is concerned.

as

The

to

tional will issue to stockholders of
United

end

1945, at which

•

issue

our

consolidated bank will have
tal

brakes

some

Enlarged Supply of 3s of 1995 Favorable

approved

was

the

It

the

to

to

more

There

May

both

firm from 1939

consolidation,

referred to in

was

of June 2, page

a

the

their function of tending to give some stability to the market.

The agreement of

He

general
partner of this

was

requirements, the government bond market will not be relieved

been in very

Simultaneously, stockholders of

Ex¬

change.

the not too

in

evident, however, that such an upping will
the government financing has been taken

until

government

uptrend

the

handled."

be

can

York

Stock

of.

care

solidation of facilities and person¬

sorbed

the

loans to brokers and dealers

on

securities, other than government obligations, is indicative of

St.

According to President

1,-

shares,

share, to $5,894,750
of

effective

McDonnell "the

capital

943,950

shares

of

consolidation, if the stock¬
holders approve, will be Dec. 30,

par

per

Company

The

Louis.

consisting

178,950

United

of

the

Claremont,

$5

ture of the

First National Bank in

Louis into

County Trust Co. from $4,719,750,
of

so

as

of

increase of the capital stock of the

many

ficial

consolidation

National

S.

by

posed

stock,

President of the Yonkers bank, is

important

no

believed

will be asked to approve the pro¬

them, it is announced, to approxi¬

Gerald

special

a

It is

put on the stock
market, it is not believed that this type of action will be too bene¬

mately $332,680,080 and $296,055,000.

of

Treasury,

and

issue of June 30,

our

McDonnell

the

of

market specialists

nel

*

of the Central Na¬

merger

noti¬

were

Company, 61 Broadway,
City, members of thq

York

New

&

the tight side, and in

on

year,

quisition of the stock of The Ja¬
maica

Mo.,

June 23 by President Wil¬

on

meeting.on July 22, at which they

acquired in

was

Bank in St. Louis,

National

expected
The rest of

are

/hat the powers that be will keep the
that interest rates will tend to remain firm, if not
advance somewhat.—Ifis evident that the new
money raising ven¬

group

First

of

National

Jamaica

The stock

*

*

Stockholders

Presi¬

Corp. and Paul G. Wehle.
Bank.

*

ac¬

financing operation

pressure on,

certain

2776.

page

an announcement made

Committee

regarding the proposal
our issues of June 16,

the

continues to be

change is looked for in thefee conditions.

not

appeared in

Marine

spite of

distant

pre¬

foregone conclusion.

a

TigittsMoiiey to Continue

in¬

shares

been

good for Treasury bills and yields
or slightly above current levels.

The money market

the

issued

be

800,000

has be¬
of E. F.

Jr.

partner

of E.R. Squibb

money

National

had

the government market is on the quiet and thin
side, because
nearly all of tqe attention of money market specialists is being
given to the refunding operation. It will take time and some
effort to digest tnb, new money 3s.

9,

noted

was

Manufacturers

The

Bellmore

Cashier of

still

around

stock, thereby increasing
$420,000. The enlarged capi¬

tion oi Louis T. Lattanzi from As¬

sistant

is

Demand

to stabilize

15

new

tal

^certificates

over

13,924,101

June 29 the promo¬

on

the Aug.

188,721,737

capital by the sale of $70,000

of

of

financiai^district had been talking about, and the roll

331,897,556

stock

has

disct3._

and

Undivided

the

14,480,544

increased

a

what

179,198,240

First

April

had

382,811,869

Michigan

profits.

holdings

rity
Loans

10,770,686

long-term bond, namely the 3% due 1995, which was reopened,
been well anticipated by the government market.
The rate
of 1 % % for the $2 billion of tax certificates was about in line with

Hutton &

New

Weicker,

general

a

a

___

$175,000

.

10,183,638

_

Govt,

S.

51,381,519

due from

banks

The long awaited Treasury announcement that the new money
raising operation would consist of tax anticipation certificates and

profits.

&

The

June 30/55

come

discounts

holdings

Loans

COMPANY,

$o6,818,492

resources^

Cash

secu¬

*

KINGS

T.otal

225,868,812

from

Govt,

Undivided

*

808,539,119

327,435,705

due

and

S.

$

897,645,350

917,192,248

___

banks

rity

profits

Mar. 31/55

$

U.

Joins E. F. Hutfon

'

BANK,

1
1,021,109,311

resources..

Deposits

12,530,159
li,01o,873

undi¬

and

vided

11,332,656
11,867,359

Governments

on

Theodore

PA.

June 30/55

Cash

secu¬

discounts

&

PHILADELPHIA,

Total

holdings

Loans

* 8,269,170

NATIONAL

31,929,596

8,226,601

from

u-L-_

Govt,

PHILADELPHIA

Mar. 31/55

31,309,685
due

and

banks<

Reporter

By JOHN T. CHIPPENDALE, JR.

THE

$34,427,829

$34,027,201

resources

35

„

36

1

(96)

The Commercial and Financial Chronicle

AT THE

Investing for Income

is

of bonds,

preferred and

because of their

selected

stocks

Fund

common

from your

The

Established 1930

J

of

to

its

made

Nov.

Fund

lists total

resources

1,

1954.

have

Assets

of

subsequently

the

crossed

the.$100 million mark.
the
a

value

asset

close

net

value

asset

of

$9.47

a

a

alarm

the

over

placement

of

possible

workers

by

re¬

meeting

voted

June

on

it

Indus¬

dis¬

temporarily

favor

MUTUAL

policy, and also authorized
shares

tional

so

to

as

is
•

designed to provid#

in

a

variety of

companies participating

addi¬

a

is

that

expected

this

stock

distribution, which will have the
of
splitting
the
present

effect

shares 2 for
after

June

The

with

week

record

a

of

date

July.

shareholders

of

asset's

in

the

authorized

Fund

be

to

securities-of

a

in¬

companies

engaged in the production

or

use

energy other than natural gas,
including atomic enlergy.

Fund

tntfe1

will

be

able

to

advantage of attractive en¬
ergy situations outside the natu¬
ral gas field and benefit from the

ever-increasing

requirements

for

placed hand weavers, inaugurated
a great era
of industrial prosper¬

energy of all forms in the nation's

expanding

mobiles

er

in this

country, he point¬

ed

policy

tractive

Furthermore, he
said, it created more jobs not only

tries

in

043,000

the

car.

a

automobile

resulting

from Atomic Science*

ultimately
costs

1T1HIG DEVELOPMENT SECURITIES CI
U»3 THIRTIETH

resulted

in

increased

and

Gas

WASHINGTON 7, D. C

on

31, 1954 to $33,15, 1955, an in¬
of $6,125,000. Sales of new

quality

and

the close relation¬

ship and interdependence of elec¬
tronics
as

and

nucleonics.

in net sales of

THE

1955

example

an

atomic

Custodian Fund,
BOND, PREFERRED AND

the

fact

that

COMMON STOCK FUNDS

TOTAL

NET

$24,800,466,
on
May 31,
with

of

a

Bullock

high of

$11.50

or

1955.

1 PleOrganization prospectuses describing
ase send me and the shares of
|

ten

your

Funds.

D 126

Name.
Address.

I

State.

of

month

greater
of

t
i

At the

per

last

on

200% stock distribu¬
March 25, 1955.

same

time, the net

shares

sold

period
than in

in

the

num¬

the

72%

period

same

year.

stocks

which

has

prevailed

through most of the
lar

interest

shares of those
for

their

many

year, particu¬
been
shown
in

has

companies known

active

new

participation
of industrial

areas

velopment."

He

mentioned

by holdings in
portfolio.
mon

the Bullock

About
are

monwealth's shareholders

88.9%

invested in

calls

In¬

vesting Plan.
Last

the

year,

management

Commonwealth
its auto¬

announced

matic withdrawal plan.
man

we

"we

says

what
to

call

a

saw

regular
their

This

monthly

a

from
of in¬

sources

monthly withdraw¬

als will sometimes

capital

per¬

draw

augment social

security and other
These

to

amount

to

accounts

vestment

service

shareholders

our

for

need

come

from

in¬

income, sometimes from
gain
distributions
and

principal.
We believe this
new
service, which makes for
easier budgeting by retired peo¬
ple,

will

contribute

substantially

Commonwealth's

like

future

GROSS SALES of Delaware Fund

in

the

amounted

Mr.

296%
$454,559 in

of

Nelson

said

fund's

mutual

month

over

gross

June,

the

accompanied

to

1954.

record

by

an

sales
unus¬

12.7%

reports for the three

ended

May 31, 1955, net
$71,658,308, a gain of
approximately 41% over assets
of $50,828,353 at May 31 last year.
of

was

asset

$27.66,

value

excluding

per
a

gain payment of 57 cents

share
capital

during

fiscal

year,
compared with
a year ago.
The fund had
2,591,081 shares outstanding and
18,751 stockholders as against 2,-

$20.64

462,102

shares

and 17,296 stock¬
May 31, 1954.
Portfolio changes for the quar¬

holders

on

ter ended

May 31, 1955, included:
Purchases
Shares

Central

&

Corning

South

Glass

West

Corp

com¬

Shares

Philco

Corp.
Natural

Corp.

the mutual

fund

industry

as

a

Gross
first

sales

half

193,059,
sales

of

also

1955,

riod

in

last

all

$5,-

represent 'a
of

$2,-

corresponding
and

year,

the

previous

sales

over

the

in

totalling

They

increase

268,880

fund

broke

records.

229%

the

of

is

a

vide

a

diversified, managed investment

in stocks selected

on

the basis of pos¬

sible

participation in Canada's growth.
a free
booklet-prospectus by
mailing this advertisement to

Send for

A

mutual

fund

1954.

Mutual

Fund

has announced that as of June
30,

1955,

its

assets

$46,994,281;

were

A

a

diversified

portfolio of

securities

seleeted

coun¬

expectation

that

record year

Sales

for

1955

will

be

Fund

shares

to investors continue to show sub¬

stantial gains over 1954.

June

1955

large

as

and

were

than

double

volume.

the

sales during the same
Eberstadt said
in sales

crease

May

Redemption

shares averaged less than

Mr.

times

for June of last year

as

more

1955

Sales for

seven

over

Co

22,284

;

21,000

mutual

fund

period.,
that

reflects

the

the

for

turn
as

as

large

ilng recognition by the investing
public of the active participation
of the chemical industry in nu¬
clear research and development of

F.

of atomic energy.

uses

EBERSTADT, Chairman of the

Board

of

Chemical

of

the

that

Fund, Inc.,
special meeting

a

stockholders

of

the

com¬

approved
a
two-for-one
of
the
company's
capital

split

^

stock.

Par

At

value

share

per

the

voted

is

changed

50

to

from $1
share.
stockholders

cents

time,

same

to

per

the

amend

company's

Certificate of Incorporation to in-crease the authorized capital stock
from

5,000,000

shares

of

$1

of

e

value.

par

Stockholders of record June 30,

will

receive,

July 15, 1955,

on
or
about
additional share

one

for each share held.

July

1,

1955,

stock

of

Chemical

fered

to

the

capital

of

Fund, Inc.

public

shares, 50 cents

new

Commencing

shares

will

be

bullock

The Parker

of

June

30

had

7,300.

were
a

year

ago,

the

NET ASSETS

Securities

of Nation¬

Company, Inc.,
fund

mutual

ONE WALL

STREET, NEW YORK 5

in

net

as¬

sets;

924,288

shares

outstanding;

Directors declared
30c

1955

per

to

share

a

dividend of

stock

payable
of

record

July

15,

July

1,

by Calvin Bullock, reached

an

per

share,

Name.




Prospectus

on

May 31, 1955,

on

Substantial

months

sales

an

shares

of

in

accounts

reported

were

sets,

to

President.

by

place

professional
ment

these

assets

investment

through

use

of

under

manage¬

mutual

Affiliated
Fund

without

A Common Stock Investment Fund

principal.

•re

objectives of this Fund
Ions-term
capital
and
income

growth

for

its

Prospectus

New York

—

Chicago

—

to

recent

"This

shareholders.

upon

request

Lord, Abbett & Co.
...City

in¬

Hugh
high¬
lights a trend by institutions, par¬
ticularly those with moderate as¬
Bullock,

re¬

Q Incorporated Income Fund
Li Incorporated Investors

Name
Address

Address.

a

all-

of $709,467 or 39 cents pgr
the last quarterly re¬

crease

funds," he said.

Established 1925

Please send

a

sponsored

time high of $24,711,757, or $19.10

institutional

$36,936,000

Corporation, 200 Berkeley St., Boston, Mass.

Established 1894

of¬

th&

value.

par

Investment

calvin

par

value to 10,000,000 shares, 50 cents

INCOME

an

ohtainah 1

undue risk

in¬

grow-

porting period at Feb. 28, 1955.

shareholders

whose

prime objective is to

long-term GROWTH of
capital and income

of

10% of

share since

Fund
-

a

of them."

many

Chemical

of

he added,
justify the

which

shares outstanding were 1,041,753;

INCOME FUND

with

companies,"
levels

at

balanced
LOOMIS-SAYLES

the

HMRPOIUTED

INVESTORS

U. S. mutual fund designed to pro¬

"are

wide

months of

success¬

industries

pe¬

1955.

minimi! inn

chemical

TOTAL

12

of

the

try. "Current earnings and sales of

for

entire

ful

Eberstadt

in

nificantly with those.of $5,999,443
the

was

sig¬

compare

15,000
Gas

most
Ferdinand

1955,

whole.

and 6,500 shareholders.

Sales

Northern

June

15,000

10,000

the

stocks.

in

tially below the redemption rate
of

As

10,000

Florida
Power
&
Light Co
Signal Oil & Gas Co. "A"

Marathon

gross

15,000

Works

Fund

of

shares

only

record

and

in

spe¬

to

redemptions.

Fund

one.of

pany

$30-million

growth of

the

reported.
for

out
behind

the

announced

The

of

the

June were the largest
month in its 17-year his¬
tory, W. Linton Nelson, President,
for any

sales

Massachusetts Investors Growth

net

pointed
that

peacetime

shares

F.

t ad t,

e rs

the Bo ard,

from

$171,048,
or
sales — substan¬

The

E b

practical approach

retirement.

mits

Mr. Cole¬

a

this in¬

on

crease,

The

Systematic

company

amounted

de¬

of

the

Commonwealth

on

July 6.
/
Commenting

rently using this purchase method
which

was

announced

are cur¬

Reports 41%

cifically atomic energy, jet pro¬
pulsion, automation and electron¬
ics, all of which are represented

fund's assets

its

for

the
first

passed

for the
time,
it

desiring
to
accumulate
shares through regular monthly
purchases.
About 75% of Com¬

3 Mos\ Gain
Fund

have

mark

especially
plan for in¬

of

Stock

Fund

$100,000,000

Chairman

ually low rate
Liquidations of

this

In a
message to shareowners,
Hugh Bullock, President, said that
"in the strong market for com¬
mon

the

M. I. T. Growth

six-

about

was

well-known

in¬

an

$100,000, net assets of

is

$1,344,541—up

assets

ber

20%

received

over

Chemical

with

1938

in

foreign countries.

Commonwealth

sales

months

a

a

period, despite generally de¬
clining yields, thus reflecting the
new Knickerbocker
policy of em¬
phasizing income.

compares

$10.26

or

investments

Starting
vestment of

well

as

on

1954

share six months earlier, after ad¬
tion made

Keystone Company

50 Congress Street, Boston 9, Mass.

your

report

income

in

institutional inves¬

and

in many

to

share,

per

This

$21,120,920,

total

Francisco

state in the nation

every
as

were

new

assets

in

his¬

growth."

at

generating station.

Fund, Ltd. reached

from

justing for

.

$4,044,000.

MID-YEAR

cited

He

$100,000 worth of electronic
equipment will be used in each

:ystone

The

$5,520,000 against re¬
$1,476,000, resulting

increase

least

;

of

reduced

The mutual fund executive also

*

$26,-

June

were

the

S. Waldo Coleman, its President from the beginning, empha¬
sizes that
they are situated in

come.

Indus¬

from

quantity, which has produced in¬

on

at¬

Dec.

on

risen

Knickerbocker Fund shows

commented

I

have

of

creased employment at higher pay
with more leisure time to buy and
use the products."

STREET, N. W.

as

appear.

purchases

"indicates that every
technological gain has

crease

gradual,

assets

Fund

918,000

be

opportunities

shares

important
Stl THE FACTS AND FREE PROSPECTUS

will

net

Total

industry, but
throughout all industry.
"Economic history," Mr. Tripp
on,

It is expect¬

economy.

that the exercise of the broad¬

ed
out, reduced the price to a
point
where
almost
everyone
own

San

in

of

The

Top

$100 Million

vestors

broadening of the investment pol¬
icy so as to permit up to 30% of
the

Net Assets

tors.

1, will be announced

30

second

Thursday, July 7, 1955

.

Chemical Fund's

company.

but

and

dividuals

■i-

It

went

in activities

in

original assets of $41,seven
shareholders,
the company
is now owned by
over 42,000 shareholders, both in¬

distribution.

could

managed investment

record

with

505

permit the
100% stock

The adoption of the assembly
line method
of
producing auto¬

FUND, Inc,

1932

of

ity.

ATOMIC DEVELOPMENT

Founded

the. annual
in

21

take

He recalled that the mechanical

while

Gas

broadening the Fund's investment

robot

'

machines."

loom,

Fund

vested

in

his message to shareholders, call¬
ed their attention to the "concern
and

MUTUAL FUND.

at

of

half-year period amounted to
$11.33 a share—up 20%

share six months ago.
Chester D. Tripp, President,

ATOMIC SCIENCE

tries

the

the

at

record

over

in

of

Directors to declare

report

Net

through

ended

half

SHAREHOLDERS

the

on

Now York

L1

mwst

first

seven-year-old
mutual
fund on April 30, last, at $96,182,332 as compared with $55,868,018

Corporation

New York 5,

months

public.

National Securities &

Broadway,

six

1955—the

in¬

assets

recently

of

120

the

30,

72%

a

its fiscal .year,
according
semi-annual report

investment dealer or:

Research

in

April

ELECTRONICS

-

recorded

crease

relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk
involved. Prospectus and other
information
may
be obtained

all-time

an

tory of the 23-year-old
TELEVISION

diversified group

a

Invest¬

nationally
distributed' "balanced
funds, reached the $100,289,374 mark in total assets. This

tive

investment in

Commonwealth

Company,',one of the oldest

.

mutual

By ROBERT R. RICH

mutual fund, the primary objec¬
of which is to provide an

a

ment

Mutual Funds

through

National Income Series

CLOSE of business July

1955,

1,

.

Atlanta

—

Los Angeles

••

Number 5444

Volume 182

The Commercial and Financial Chronicle

...

NATIONAL

Canada Fund

has

SECURITIES

than

more

nearly half

Reports Growth
'Canada

Fundi

General

'of

one

investment

owned

largest
United

by

investors, reports total net

assets at

high of $57,612,372
on
May 31, 1955, the close of the
third quarter of its present fis¬
cal
year.
Net assets per share
were also at a new high of $10.63,
comparing with $9.98 on Feb. 28
and $9.25 when the fund started
operation last Sept. 1.
a

new

President,
notes that during the latest quar¬
Henry

Vance,

T.

"further

ter

in

the

lieve

progress

have favorable

to

prospects

for long-term growth of
well

as

ter

income.

as

principal
the

At

quar¬

represented by invest¬

were

which

ments

with

compares

an

85.5% invested position at the end
of the preceding
The

current

lists

report

hold¬

ings of stocks of 83 Canadian
companies in 17 industry classi¬
fications.
Principal investments

of net
in oils, 13.81% in paper and
forest products, 11.67% in

other

public
and

utilities,

9.90%

10.24%

in

mining companies.

in

The report includes a
of

son

of the

some

nomic

stores

indexes

compari¬

significant

eco¬

Canada

for

latest

The

over

report shows

in¬

an

the railroad industry

vestment in

amounting to $66,030,029 based on
total market value as of April 29,
representing 28.2% of the Series
aggregate net asset value.
This
compares
with
$41,036,410,
or
25.3%, on April 30, 1954.
Investment in the iron and steel

of total net

12.1%

or

April 29

on

with

this

value

asset

compared

year,

$19,754,587, or 12.2%,

year

a

ago.

Non-ferrous

place

last

in
sixth
climbed to the
total investment
6.8%, this year.

metals,

year,

third spot

with a
of $15,979,538, or
parts

in

were

tion this year

fourth

with $15,966,588, or

slipping

6.8%,

after

year's

third

posi¬

place

from last
$10,715,312,

at

the

of

last

last

15

four

"Canada

United

the

has

the

for

and

years,

showing

years,

been

that

growing—and

is continuing to grow—at a faster
rate."

j

"At

the

samd

Investments

of

than

more

$5,-

shown this year
$11,215,738; building
and construction, $10,436,883; in¬
dustrial
machinery,
$10,386,038;
utiliites $9,046,750; oil, $7,294,975,
and
retail
trade
department
stores, $5,008,989.

000,000 each
for aircraft,

were

-

"contrary to the

it

situation

adds,
few

a

of

half

Canadian

ago,

to

appear

be

stocks

United

the
This

a

ronto

since

Industrial

Jones

relative

by

price

the To¬

of

index

Industrial

in

and

total Resources and
shareholders, A. J.
Vice-President of the

Gross

of

June

ended

this

for

the

sales
fund

30,

26-year-old
months

six

1955

$32,-

were

542,000.
June

Fund had
of

30,

Wellington

1955,

record total net assets

a

$459,688,000, equal to $26.78 a
on the 17,164,632 shares then
This compared with

share

assets

net

equal

of

$22.15

to

shares

15,129,128

$335,151,000,
share

a

the

on

outstanding

on

June 30 last year.

and

Fund,

Corporation, dis¬
Incorporated Inves¬

of

Incorporated

Dallas

office

Income

the opening of its

announce

under

the

ment of Mr. Arthur P.

manage¬

Before

joining The Parker Cor¬
poration as Wholesale Representa¬
tive for the Gulf States area, Mr.
Nazro was associated with North
America

Objective of this Mutual Fund is Long
Capital and Income through

Securities.

President

Term Growth of

to

means

of

ration

he

rated

The

will

Vice-

As

Parker

Corpo¬

represent Incorpo¬

Investors

and

Diversified Investments in the Chemical Field

Income Fund in

including the New Science, Nuclear Chemistry.

Incorporated

intensified

competition are paid
"shipper and ultimately
the consuming public."

Prospectus

on

F. Eberstadt

request

&

Co. Inc.,

cantile Securities

39

Broadway, New York 6, N. Y.

GROSS

Fund

months

of
in

ended

Science

its

June

first

&
two

30,
1955,
Donald
F.

$409,213,

Bishop, President, reported.
Largely as the result of sales,
assets

of

$517,256
with

In

the

the

increased

While

to

Mr.

difficult

of

a

transportation regulation, the es¬
sence of its philosophy is magnifi¬
cently clear and simple.
A

greater freedom in competi¬

tive

pricing would be applied in
of transportation. That
freedom, however, would be ex¬
the

field

within

ercized
ableness

between

pensatory

of

zone

a

floor of

a

and

rates

reason¬
com¬

ceiling

a

of

compensatory
to

rate would have

a

"the direct

cover

ascertainable

producing the service to

costs of

which the rates apply." Competing
carriers would be free within that
reasonableness

of

zone

to

make

such competitive rates as may

attract

traffic.

necessary

to

Commerce

be

The

Commission

would retain its power to prevent

discriminations

undue

and

pref¬

erences.

another way, the report

Stated

recommends that all

types of

com¬

freed

be

to

utilize

have

Bishop
this

$10.52

value

share

a

in the sales

saw

past

of

two

broad

"We have been

railroad
by the
ground that

Commission

the

on

are

lower than necessary to

meet the

competition. The test ap¬

they

been whether qr

not the proposed
is compensatory. Rather, the

rate

test has
tract

been—would the rate at¬
than

more

available

the

a

fair

share

traffic—or

hurt

of

The

has

Commission

said

that

is

the

"primary issue"— the "para¬
mount question."
the benefits of free play
inherent advantages, of basic

Thus,
of

differences in the

greater

nages

to

cost of service,

months

public

some
tremendous

car¬

ton¬

at relatively low increased

been lost. It is the
public which has been deprived
of the end product of inherent ad¬
costs,

have

vantages

—

lower transportation

costs.
It

must

remembered

be

that

tinue to protect

the public against
excesses,
competing
carriers
against
destructive rate-cutting,

re¬

persons,

an

modities

—

rates below cost)

Financially Strong Transportation
Systems Needed
In addition to

in accordance with

said.

ultimate

to

unsolicited

agement's judgment.
a

prospectus
from your

Distributors

on

request

investment dealer

Group, Incorporated

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




frame

of

reference

the

ies

about

sections

the

us

our

in

West

various

from

steadily

from

increasing

the

South,

Coast

and
throughout
believe," he continued,
reflect a steadily growing

the East.

"they
public

a

Fund

quer¬

I

consciousness

mendous

potential

of

the

that

tre¬

nuclear

consumer

the

benefit

of

the lowest

possible transportation
costs, the report states as its ma¬
jor objectives the maintenance of
a
modernized
and
financially
strong system of common carrier

transportation,

science possesses for the material

ment

advancement of mankind."

tion system

i

other

to

policy

serve

within

specific

as

a

which

recommenda¬

tions of the Report, as well as the
provisions of the Interstate Com¬
merce

Act, will operate.

the

to

mention

in

Surely,

if this
that

report,

have

would

were

been

within

the

of

zone

reasonableness,
without
unjust
discrimination, undue preference
or advantage, or undue
prejudice;
to reduce economic regulation to
minimum

the

public
such

consistent with the

interest,

minimum

requiring
regulation

ministered fairly and
There

follow

that

be ad¬

impartially.

four

specific
recommendations intended to give
greater freedom
of competitive
rate-making to all media of com¬
mon
carriage on an equal basis.
While,; as stated, the
Report
seeks to bring about greater free¬

most

railroad

a

It is said that the Report would

the

railroads

a
"hunting
destroy their com¬
petitors. Would it? No. The Report

license"

to

recognizes the underlying need
the public interest and in the

in

interest

of

national

defense, of a
carrier transpor¬
tation industry. It recommends re¬
strong

common

moval of

shackles of regula¬

some

from

carriers

common

imposition of
carriers.

All

and

demonstrably

some

of

lie

Group
Report.

the

recommendation
included.

transportation

which

of

important of these—is that dealing
with
user
charges on publicly
provided transportation facilities.

for

policy to provide
develop, under the free
enterprise
system
of
dynamic
competition, a strong, efficient and
financially sound transportation
industry embracing all forms of
carriage; to encourage and pro¬
mote
full
competition
between
modes of transportation at charges

American

the

one

needed restrictions

and

of

Working

embodied

to

tion

It is declared to be the national

of

an

and

the develop¬
transporta¬

efficient

for defense.

of

dom

recommends.

The

other forms

on

carriers

common

under the recommendations of the

Report would be permitted to
erate

equal

on

mendations

terms.

op¬

Recom¬

favoring less

restric¬

tive provisions governing common
carriers by rail are equally ap¬

plicable

to

water and

riers.

carriers

common

by highway. It is

regulation

mon

for

Surely if this
a
hunting

carriers

will

license.

And

American
It

is

car¬

Report con¬
license,
all

the
same
again, is the

carry

that,

way.

said

that

mendations

of

if

the

the

recom¬

Report

were

into law, the transpor¬

translated

tation

by

com¬

common

stitutes

industry

would

be

re¬

turned to the "law of the

jungle.'*
Obviously
not.
As
previously pointed out, the Re¬
port would continue broad and

Would

it?

desirable powers in the Interstate
Commerce

He

the

of

balance

recom¬

mendations of the Report involve
such matters as abandonment of

unprofitable services, special rates
government
traffic,
and
a
recommendation to the Congress

on

that

re-examine

it

agricultural

the

of

extent

commodity

needs

common

carrier

trans¬

portation, for he cannot afford to
own
his own private fleet. And
t h e
Report's
recommendations
would
strengthen all forms of
carrier transport, and

common

to the little

sure

est

in¬

shipper the low¬

possible transportation cost.

It

exemp¬

seems

to

me

that your job as

Commerce identical bills intended

relations officers of our
industry is to bring to the Ameri¬
can public the fact that this Re¬
port was v/ritten in its interest.
That its underlying philosophy is

to

merely

tions.

public

Early in May of this year there
introduced in the Congress

were

at the

request of the Secretary of

implement

the

recommenda¬

tions of the Report. On the

side the
and

is known

bill
the

on

House

Senate
S.

1920

the

bills

as

side

respectively designated H. R.

6141 and H. R. 6142. To date none

has been
It

that

regarded
bus

bill

the bill

as

rather

amendments

follow

as

or

when

be

Interstate

would

It

to

omni¬

series of

a

the

to

Act.

that

not

was

package

a

but

Commerce

seem

hearings

to

should

garded

be

its

on

economy.

job will not be easy. En¬
forces
with
great re¬
behind them are deter¬

trenched
sources

mined to defeat your every

the

when

But

that this Report was

understands

written in its interest,
it implemented.

truly
shall

effort.
public

American

we

see

are

held each group of related amend¬
ments

our

a

way

Your

is

stated

reiteration of the Ameri¬
and an application to
transportation of fundamental
principles
which
have
proved
their validity in all other areas of

can

for hearing.

set

noteworthy that in intro¬
ducing S. 1920 Senator Smathers

separately re¬
respective

Covington Janin Co. Opens
(Special to The Financial Chronicle)

own

FRANCISCO,

SAN

merits.

Calif.—

Henry Covington Janin is engag¬

communities and com¬
against discrimination.

months," he
"These inquiries have come

man¬

intended

and

inter¬

receiving

transportation

is

were

abilities of

move

number this past two

stocks, with the

national

declaration

new

a

which

a

competing mode of transportation.

proportions "balanced"

common

of

aside

been set

placing increased
reliance on competitive forces in
rate-making and making recom¬
mendations
aimed
to
give the

in

tions consists of

compensatory

mittedly
rates

report the Commission would con¬

asset

Just

give

The first of these recommenda¬

Association

not

are

tions set forth in considerable de¬
tail in the Report.

recommendations suggested

the

Railroads

Commission. Destruc¬
competition between all
their economic capabilities in the common carriers, as well as re¬ tive rates below cost would not
be
permitted, nor would maxi¬
competitive pricing of their serv¬ duce economic regulation to the
rates
above
the
level
of
ice. The
Commission would
be minimum consistent with the pub¬ mum
reasonableness. Nor would undue
relegated to its proper function, lic interest, it is necessary in
discrimination or preference
be
to
that of an adjudicator, rather than order
accomplish those pur¬
sanctioned.
a
business manager.
poses that there be imposed upon
It
some segments of the transporta¬
is
said
that
the
Report's
In recent years the decisions of
tion industry, such as private car¬ recommendations would
deprive
the Commission have more and
the little shipper of transportation
riers, contract carriers and those
more
rested
upon
an
assumed
service.
Would
hauling bulk commodities under
they? Quite the
duty to divide freight traffic ar¬
existing exemptions, a certain de¬ contrary.
The
Report
would
bitrarily between competing car¬
gree of regulatory control not now strengthen
the
services
upon
riers on a basis of so-called "fair
existing. The Report accordingly which the little shipper must rely-.
shares." Frequently of late, ad¬
carriers

28, last,
business.

est in the fast-developing nuclear
technology.

A mutual fund

investing
bonds, preferred and

Report

number of
involved aspects of

and

(that is

indication
inc.

Cabinet

the

necessity deals with

under the recommendations of the

began

period,

to

from $10.

Incorporated 1933

economy

compared

as

April

on

Fund

same

sponse

Securities,

Fund

that date

advanced

ADMINISTERED FUND
Group

the

on

$118,000

v/hen

OF

the

of the
country and the national defense
need
the
services
of
a
strong,
vigorous and efficient system of
common caririer transportation.

of

Building.

SALES

amounted

THE FULLY

That

(4)

riers
Nuclear

Manager and Distributor of Chemical Fund, ln<.

the

by

New

Texas, Oklahoma,
Mexico, Arkansas, Louisiana,
Mississippi
and
Alabama.
The
new office is located
in TlTe'Mer¬

objectives
are
be
implemented
by
specific recommenda¬

of 12

adapt regulation to the facts of

plied by the Commission has not

Nazro.

stated

to

so

PARKER

tributors
tors

The

These

sought

mon

the

average.

transportation plant," and
heavy costs due to failure

our

that the

of

Wilkins,
Fund, announced.

THE

Dow

records

new

outstanding.

suported

1934

set

sales,

gross

total

is

comparing

movements

those

States."

comment

table

now

favorably

more

priced for investment than
of

1955

number

At

years

of

Interstate

mutual

time,"

Implement Repoit of Cabinet
Group on Transport Policy

reasonable maximum rates. To be

6.6%.

or

WELLINGTON FUND in the first

those

Let's

industry accounted for $28,251,825,

with

States

steel, and nonindustries, accord¬

865,304 on April 29 last, compared
witty $162,021,914 a year earlier.

by industries show 14.02%
assets

rail¬

37

report. Is it? Obviously not. Many

10

page

of the

special study.

a

from

by

Total net assets of the National

Auto

quarter."

the

Securities Series aggregated $233,-

end, 94.4% of the assets of the

fund

in

Continued

or

asset

and

metal

ing to

made

was

purchase of stocks of Ca¬
companies which we be¬

nadian

ferrous

companies

predominately

States

iron

Series

million,

its total net

of

concentrated

road,

(1954)

the

Limited,
Canadian

value

$110

(97)

Attacks On The
This
man

of

Report

run

who

Report

really

can.

says:

It is

ing in

Let

a

reflection

a

American

the

way—the prin¬
ciple under which this country has
grown to its present stature. This
very principle has been
applied
across

the board in

world.

Equality

circumscribed

our

industrial

competition,

of

within

reasonable

would now be applied to
present-day competitive transpor¬
tation. And yet some elements of
the transportation industry have

limits,

Some

It

of

these

attacks

are

al¬

hysterical.
is

said

that

it

der

the name of

Covington Janin

Company. Mr.'Janin wa£
an

is

a

railroad

formerly

officer of George Putnam

Fund

Distributors, Inc.

R. H. Cobb Co.
FT.

Opens

WORTH, Tex.—R. H.

offices
engage

Officers

at

in

Cobb

has been formed with
Boyd Avenue to

& Company

2550
a

are

securities

business.

Robert H. Cobb, Jr.,

Christopher
Cobb,
Vice-President; Lucille S. Cobbr
Assistant Secretary; Jean J. Cobb,
President;

attacked the Report.

most

securities business from

a

offices at 2721 Pacific Avenue un¬

Secretary-Treasurer.

38

The Commercial and Financial Chronicle

(98)

Continued

from

preceding week's output of 180,520 units. A total of 128,396 units
were reported for the same week a year ago, states "Ward's."

4

page

Last

The State of Trade and
May's

output

Last

it added

trucks;

week ago at

a

Motors plants.

Dodge

assembly had been suspended

car

on

Friday

unit annual

rate

though overtime work

even

at

was

Last week the agency reported
in

the United

week and

a
a

9,500.000minimum.

933

by Ford.
week

was

be

Jan.

1,

reached

not

will

United

some

States

highlighted

Oct.

turn

year.
The same 1954 milestone
In addition, July 5-9 manufacture

11.

completion of the 4,337,482nd car since
1955, placing output for the year above the entire NPA
4,337,481 units.

Look
the

for steel

first,

though

even

and

Year

a

failures

industrial

the

half, the steel industry was filling the'pipelines of
supply and building consumers' inventories to supnort an increased
consumption. That is accomplished, and the steel industry
needs merely to turn out enough for the current rate of usage.
One of the incentives to build inventories is gone.

deliveries

in

the

to

midyear

a

the second

half

the aim
steel prices. Al¬

in

was

asserts.

automobile

industry, biggest

produce 18% fewer passenger

the

increase

It

industry expects a 2% gain in sales
the first, all segments of it will not fare

over

paper

second,

of

consumer

Failures

liabilities

with

of

in the third quarter than in

cars

ernment

5.8%

even

quarters had
says

construction, second largest

than

better

interruptions.

such

no

estimated

166 in

earlier

for

this

brisk

pace

tons

net

numerous

than

concerns

failed

in

1954

when

30

recorded.

were

year.

buying, this trade

the last half at the

of the first, the year's out-turn would be 114,800,000
ingot and castings. That would be more than the
111,600,000 net tons set in 1953, when the first-balf's

yield of 57,900,000 tons exceeded

the 57,400,000

tons of the first

on

a

vacations

in

be taken off for

A

ease

off in the second half, don't

decline is

and

hot

weather

reduce

steel

production
Some of the steelmaking furnaces will have

July and August.

to

half.

may

shortening in delivery times. Steel output will be down,

Summer

too.

repairs, this trade magazine notes.

already recorded for the opening of the second

Because mills had to prepare

for a steel workers' strike, the
ingot rate in the week ended July 3 slipped to a preliminary 94.5%
of capacity.
That's a 2.5 point decline from the preceding week,

"Steel."

says

liabilities

in

of

excess

$100,000,

1,

as

Wholesale Food Price Index

erating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry will be at an average of 89.7% of
capacity for the week beginning July 4, 1955, equivalent to 2,164,000 tons of ingots and steel for castings as compared with
71.1% (revised) and 1,716,000 tons a week ago.
The

For

duction

annual

an

capacity of 125,828,310 tons

like week

the

2,286,000 tons.

month

a

A

year

placed at 1,430,000 tons

was

comparable

6%

because

or

capacity

a

in¬

wholesale

last

cost

week

flour,
wh.eat, rye,

the rate

as

of Jan. 1, 1955.

94.7% and pro¬
ago the actual weekly production
60.0%. The operating rate is not
ago

was

lower

was

than

The

percentage figures for 1954 are based
124,330,410 tons as of Jan. 1, 1954.

on

capacity
annual

in

1955.

The index

represents the

pridfe,

total of the

sum

Wholesale Commodity Price Index

the

Lower In Latest Week

the
the

1955,
For

uncertain and

per

bushel

the

on

1956

crop,

»

by

approved

majority of 77.5% of the growers.

June

of

last

year.

previous

weeks

week.

ended

June

no

period

1%

Jan.

from

that

of

the

corre¬

sponding period of 1954.

-

Michael J.

Heaney Co.

,,

a

%

Admits Paul Sheridan
;

&

On June 29, Michael J. Heaney
Co., 120 Broadway, New York

City,

members

of

improvement in export demand and

the

the firm June 30.

Government report indicat¬

Exchange,

Sheridan

American

admitted

Paul

to

partnership.
Jerome S. Lueheme retired from
.

ing,a 9% increase in the Spring pig crop over a year ago. Al¬
though trading in wheat was more active, sales of all grain and
soybean futures on the Chicago Board of Trade was down slightly
Daily average purchases totalled 30,300,000 bushels,
against 34,000,000 the previous week and 37,200,000 a year ago.
Buying of hard wheat bakery flours continuedf^on a hand-tomouth basis despite a large potential demand as the result of low
inventories.

-v:

Considerable

interest

was

evident

buyers looking for lower prices
The domestic

new

on

in

soft

crop

wheat

flours

with

offerings.

held mostly steady in rather
Manufacturer demand for cocoa was slow.
Prices

quiet trading.

sugar market

raw

were
on

steady at the close following a sharp downward adjustment
Thursday due to the devaluation of the Brazilian cocoa export

cruzeiro.

bags

Warehouse

stocks

of

cocoa

were

reported

against 238,544 bags a week earlier.

as

Green

coffee

buying

in

prices
both

were

the

•

maintained, aided

spot and

241,855

at

;:V
roaster

by

Form Colo. Env. Co.

shipment markets,

and

Lard

Colorado

In¬
a

business from offices at

Jasmine Street.

Officers

are

E.
Bailey Ranes, President and
Treasurer; Louis A. Loiseau, VicePresieent; Thomas D. Smart, Sec¬

retary.

merly

Clinton

curities

Andersen,

officer of

an

for¬

Western

Corporation, is

Se¬

director.

a

Walter W. Gerlach Opens
(Special to The Financial Chronicle>

PASADENA, Calif.—'Walter W.
Converse

Place,

to

in

engage

a

securities business.

ular.

Closing prices

securities
2951

—

Co., Inc. is conducting

Gerlacn has opened offices at 465

under pressure and prices trended downward under'
slow domestic and foreign demand.
Livestock markets were irreg¬

This week's output declined 88,000,000 kwh. below that of the
previous week, when the actual output stood at 10,226,000,000 kwh.

vestment

the

was

light
industry for the week ended Saturday, July 2, 1955,
at 10,138,000,000 kwh., a slight decline from the
new all-time high
record established in the prior week, accord¬
ing to the Edison Electric Institute.

DENVER, Colo.

and

continuing efforts of producing countries to stabilize prices.

The amount of electric energy distributed by the electric

the

of

four

Stock

dealer

High Record of Previous Week

ended

period

Following early weakness, wheat prices finished strong and
slightly higher for the week, with flour mills active buyers of ail
new ciop offerings.
Cash corn was firm, influenced1 by moderate
a

Re¬

department

change occurred. For
1, 1955, to June
25, 1955, the index recorded a rise
of

minimum support

was

tnat

the

the

irregular as'fraders awaited

the outcome of the wheat grower referendum on the
proposal that
the strict marketing controls be continued for the 1956
crop.

of $1.81

Federal

index,

period

like

25, 1955,

;

the period and then turned upward to finish at 272.68 on June 28.
This compaied with 273.35 a week earlier and 271.1
a year ago.
were

t

preceding week, June 18,
decline of 1% was noted

a

from

Irregularly

The general commodity price level
fluctuated|unevenly dur¬
ing the week.
The daily wholesale commodity price index, compiled by Dun & Bradstreet, Inc., trended lower in the first half of

Grain markets

about

sales in New York City for

In

j;

like

25, 1955, advanced 4% above that

Wholesale level.

-Trendect

the

at

the

to

weekly

of

general trend of food prices at the

New

Trade observers

increase

ihe

pound of

per

in

gain- above

year ago.

Board's

store

oa.s,

volume

2%.

its-chief function

foodstulfs and meats in general use and

raw

to show the

capacity of

Electric Output Eases a Trifle From New All-Time

a

placed
or

corn,

and steers. Lower in price were
beef, hams, lard, cottonseed oil, cocoa, peas, hogs and lambs.

price

trade

modest

a

serve

included

peanuts, eggs

31

25, 1955, a gain
registered above that

According
in

increase of 4%

an

For the period Jan.

City the past week showed

week

12.1%.
Advances

1954,
ended

June

to
was

Retail
York

Continuing the downturn of the previous week, the wholesale
index, compiled by Dun & Braostreet, Lie., fell 7 cents
curing the past week to stand at $6.42 on June 28.^This compared
with $7.30 on the corresponding date a year ago, or a crop of

is

1955,

of

weeks

1954.

Continues Decline of

Week

food price

industry's ingot production rate for the weeks in 1955 is

on

1955

for the week.

The American Iron and Steel Institute announced that the
op¬

based

Board's

period

four

recorded.

was

of

with

The proposal, which set a national average

Although steel demand

25,

the

:

of

half of 1955.

count

Reserve

similar
for

June

Twenty-

against 14 last week.

of

of

record

steel, will be
Railroads too,

of

user

to continue in

were

on

taken from

the week ended June 25,

the

while

the previous Week and

In contrast, the gov¬

have begun to show some life in their freight car

weekly states.
If steel production

for

of

$5,000

or more increased to 194
162 last year. Small failures,
those with liabilities under $5,000, dipped to 37 from 3a, but were

from

steel, expects

though it raised its sights from earlier projec¬
tions for the third quarter.
Much of the third period will see
model change-overs, which interrupt production.
The first and
second

Federal

dex

week

sa7e3

as

the comparable week of 1939.

metalworking

alike, this trade
The

before

store

1955, advanced 6% from the like

Previous

rate of

get

lines.

some

the

in

231

In the first

to

in

period of last year. In tie pre^
ceding week, June 18, 1955, a rise
of 2%
was
registered from that

current week.

though

major

country-wide basis

Ago
to

rose

corresponding
Buyer attendance
wholesale centers

Department

week, Dun & Bradstreet,
Inc., stated. Failures exceeded the 192 a year ago and the 169 in
1953. However, they were 13% below the prewar level of 264 in

the metalworking industry expects a
"Steel," the metalworking weekly, the

says

and

three

Week at 89.7% of Capacity

production in the second half to be below that

gain in its sales,

the

the

level.

usually high, although the
approach of the long July 4 week¬
end and vacation periods deterred

Moderately for Week and

Exceed Like Period

volume

week, it-remained notice¬
above

trade

Commercial

dollar

was

trucks.

more

Steel Output Set This

2%

truck builder will

or

by

controlled year of 1952 at

of

car

vehicle of the

until

1,929
and

cars
cars

total

Mid¬

+7;

+4 to -f 8

+9.

ended June 30 from 205 in the preceding

~

This

the 5,000,000th

last

ably
at

Dominion plants built 9,u86
and for the comparable 1954 week 3,807

Business Failures Climb

passed Ford in truck
output for 1955. The General Motors division built approximately
196,800 trucks during January-June, compared with about 194,000

the

year-ago

In the previous week

trucks,

of

25,742 trucks made
29,271 in the previous

were

ago.

a year

to

-f5 to

of wholesale trade dipped slightly
in the period ended on Wednesday

I

"Ward's" noted that last week Chevrolet

out

19,100

there

This compared with

States.

Canadian output last week was placed at 8,419 cars and
trucks.

2,284

resume this Wednesday.
production the past week held to

scheduled to

was

Thus car-truck

While

by 7,005 cars, while truck output declined by 3,529 vehicles
during the week. In the corresponding week last year 109,296 cars
and 19,100 trucks were assembled.

-f3

Pacific Coast

Southwest

and

output advanced above that of the previous

car

Thursday, July 7, 1955

.

west and

week

that

programming called for 183,996 units, up almost

151,249 cars and 29,271 trucks, despite ab¬
of Saturday final assembly at Ford Motor Co. and General

sence

and

130,115

and

cars

aimed at 658,800 cars and 112,000 trucks.

are

week's

2% from

724,889

of

July projections

Industry

week's

.

Northwest

and

,

.

and

power

estimated

was

It

increased

1954

week

Car

1,313,000,000 kwh., or
2,223,000,000 kwh.

and

14.9%
over

above

the

like

the

comparable

week

in

1953.

Loadings Advance 1.8% Over Previous Week and
12.1% Above Like Week

Loadings of

revenue

increased

a

Year Ago

freight for the week ended June 25, 1955,
1.8% above the preceding week, accord¬

Following early strength, hog prices moved Sharply lower,
influenced by slow demand for fresh pork as the result of the hot I
weather and the Government Spring
pig crop report which showed !
an

increase of 9%

Spot

cotton

over

prices

were

a

year ago.

continued

to

move

in

a

slightly lower for the week,

narrow

range.

price-fixing helped to sustain values at times, while sell¬
ing, influenced by continued uncertainty relative to surplus dis¬
a

depressing factor.

Trading in the 14 markets continued at a slow pace with sales
totalling 39,300 bales, the smallest weekly volume for the current
season.
Mill stocks of cotton as of
May 28 were reported at 1,714,000 bales, as compared with
1,587,000 bales at this time a year ago.

14,047 cars or
ing to the Association of American Railroads.

Trade Volume Lifted

Slightly Last Week By Holiday

and Vacation Purchases

Loadings for the week

ended June 25, 1955, totaled 799 472
increase of 86,312 cars, or 12.1% above the corresponding
1954 week, but a decrease of
18,978 cars, or 2.3% below the cor¬

the period

from

-—

offices

Wayne

securities

a

in

the

Se¬

curity

Building under the name
of A. Wayne Hough & Co.
Mr.
Hough was formerly with Lester,
Ryons & Co., and Denton & Co.

Harold Leon

Opens

HOUSTON, Tex.—Harold
is

engaging
from

ness

in

securities

a

offices

in

Leon
busi¬

the Electric

week-end, retail trade

responding week in 1953.

PASADENA, Calif.
Hough is engaging in
business

y

Mill

posal plans and the price support outlook, was

Wayne Hough Forms Co.

As

cars, an

many

While

U. S. Automotive Output Last Week Advanced to
Highest
Level In a Period of a Month and Was 2% Above

Preceding Week
The

1955,

" '•

•

■

automotive

industry for the latest week, ended July 1,
to "Ward's Automotive Reports," assembled an
158,254 cars, compared with 151.249 (revised) in the

according

estimated

previous

week.

The

trucks amounted to

past

week's

production

total

of

cars

and

183,996 units, or an increase of 2% above the




as

in

shoppers prepared

ended

on

vacations

Euilding under the firm
the

and

holiday

rose slightly in most parts of the nation in
Wednesday of last week.

year-to-year gains in

recent

for

volume

were

not

months, most merchants continued to

parable 1954 sales record.

as

impressive

top

the

r

highest total for any non-Christmas month
record, according to preliminary information from 60 cities.
During the week the total dollar volume of retail trade ranged

of

.Special to The Financial Chronicle)

DAYTON,
Lukaswitz
with

from 2 to

the

Mr.

Greene

New
•

with

•:

Ohio

has

tional Bank

Inc.

6% above a year ago, according to Dun & Bradstreet,
Regional estimates varied from the year-ago levels by the
following percentages: New England 0 to —4; East 0 to +4; South

name

Co.

Joins Greene & Ladd

com¬

The total dollar volume of retail sales for the month
of June
would probably be the
on

Leon &

&

—

William

become

J.

associated

Ladd, Third Na¬

Building, members of

York

Lukaswitz

Stock

Exchange.

was

previously

Westheimer & Co.

Volume

182

Number

5444

.

.

The Commercial and Financial "Chronicle

.

(99)

•I

The

Indications of Current
Business Activity

week
Latest

AMERICAN

IRON

Indicated

steel

AND

STEEL

operations

INSTITUTE:

July 10

.Month

Week

month available.
on

Crude

PETROLEUM

oil

(net tons)

60.0

Kerosene output (bbls.)
Distillate fuel oil output
oil

(bbls.

average

(bbls.)
fuel

Residua)

June 24

117.464.000

7,520.000

7,483,000

June 24

25,850,000

25,535,000

24,669,000

2,197,000

2,196,000

2,095,000

11,205,000

10,738,000

freight loaded
freight received

June 24

7,615,000

8,109,000

8,070,000

7,874,000

June 24

164,471,000

165,285,000

169,373,000
25,220,000

26,937,000

^4

132,000

28,435,000

96,*338,000

91,269,000

80,204,000

CIVIL

ENGINEERING

of

45,684,000

44,156,000

CIVIL

50,362,000

CONSTRUCTION

(no.

of

of

11,600

22,700

oo

$77,500

$78,800

$661,700

April

$1,353,200

$588,300

799,472

785,425

790,176

713,160

June 25

666,237

657,505

669,576

CONSTRUCTION

NEWS-RECORD

$1,881,544

$1,726,525

$1,160,753

EN¬

—

Month

—

of

(000's omitted):

U.

S.

Private

597,721

cars)

*

(000's

__

ENGINEERING

June

Public

construction

__

construction
and

1,147,581

775,658

~

578,944

561,497

587,991

424,323

425,116

187,667

154,621

136,381

$572,000

$623,000

$618,000

$31,568

-

$30,655

24,149

23,513

11,482

municipal

1

Federal

1,105,886

Li-ul

11,985

construction

State

ENGINEERING

—

Month

—

GINEERING

:

June25

cars).

.____

NEWS-RECORD:
Total

U.

S.

Private

construction

Public

$439,115,000

$412,067,000

$324,143,000

June 30

277,673,000

225,458,000

216,474,000

173,228,000

June 30

161,442,000

186,609,000

107,669,000

150,639,000

June 30

110,078.000

147,855,000

79,762,000

113,477,000

June 30

,

51,364,000

38,754,000

27,907,000

37,162,000

9,590.000

*9,640,000

'9,365.000

8,288,000

538,000

511,000

602,000

construction

State

and municipal

_

'

Federal
COAL

COMMERCIAL

June 30

construction

OUTPUT

Bituminous

(U.

coal

S.

BUREAU

OF

STORE

SALES

SYSTEM—1947-49

—June 25

INDEX—FEDERAL

AVERAGE

RESERVE

As

of

May

CONSUMER
OF

607,000

ELECTRIC

Electric
FAILURES

(COMMERCIAL

Total

July
INDUSTRIAL)

—

DCN

103

117

114

97

Finished

June 30

10,138,000

**10,226,000

9,537,000

231

205

8,825,000

203

June 28

4.797c

4.797c

June 28

$56.59

$56.59

$56.59

June 28

$36.50

$35.33

$34.00

I

$56.59
$26.92

<

Lead

(St.

Zinc

S.

at

29.700c

Crushed

36.700c

26.600c

Stocks

94.500c

91.625c

96.500c

15.000c

15.000c

14.000c

Stocks

14.800c

14.800c

13.800c

Produced

12.500c

12.000c

11.000c

June^29

15.000c

June 29

14.800c

June:29

12.500c

.

100.07

Stocks

110.15

Produced

5

112.19

112.19

112.37

114.85

Consumption

5

110.52

110.52

110.34

112.19

5

108.70

108.88

103.06

103.79

Stocks

103.97

103.97

104.31

104.14

Produced

July 5
July 5
c Julys 5

107.27

107.44

107.44

108.70

Shipped

109.06

109.24

109.24

110.52

109.97

109.79

109.97

111.07

July

,

,———

r

YIELD DAILY AVERAGES:

-

-

»

-

"

/

'

' i

2.81

2.72

July

3.24

3.23

3.23

3.05

3.05

•

.

'

3.04

2.49

3.14

3.15

3.05

3.23

3.22

3.18

3.51

3.51

3.49

3.50

of

527,013,000

31

266,945

AND

Stocks

(tons)

31

May

Linters

31

May

___

87,480
_:

Fiber

Stocks

31

May

442

946

150

178

608

3.17

185

3.11

645

406.3

406.4

397.4

434.7

3,672

3,983

6,623

Motes, Grabbots, etc.
Stocks May 31.

(1,000 pounds)—

Produced

%
258,244

|

239,200

269,132

204,836

280,600

J

285,547

274,342

250,255

99

99

98

92

525,731

548,315

520,458

325,610

LIFE

—

ON

EXCHANGE

N.

Y.

Month

—

of

April

omitted):

(000's

106.76

106.73

106.71

106.49

Total

1
1,374,389

834.871

1,121,250

913,018

$70,676,763

$44,941,752

$58,803,949

$42,675,362

i
June 11

1,234,998

829,588

980,675

933,837

6,380

4,268

6,232

8,964

June 11

1,228,618

825,320

974,443

$61,712,211

$40,934,508

$50,053,594

—June 11

324,160

227,350

272,030

340,290

by dealers—

sales

324,160

227J50

272,030

340,290

June 11

497,270

294,000

399,420

284,810

dealers—

STOCK

(SHARES):

598,300

333.960

479,170

377,900

Other

J une 11

14.787,060

9,794.750

11,701,210

9,887,280

12,180,380

10,265,180

sales
:

FOR

June 11

;

ACCOUNT

OF

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

specialists in stocks in which registered—

!

Short sales

183,780

249,610

970,280

1.215,220

995,520

1,464,830

1,199,410

3
-June 11

384,000

298.100

245.320

355,540

June 11

48,000

17,700

22,100

28,100

463,810

277,150

247.930

307,140

.June 11

off the

floor—

Total

93.600

50,510

73,490

866,883

569,577

600,423

(1947-49

■=

U.

S.

DEPT.

620,087

673,913

411,164

2,894,039

83.7
52.0

*26.5

25.2

34.1

*34.1

33.4

5.1

5.2

Government

Less

—

employee

,___

contributions

labor

Total

Total

transfer

RECEIVED

1,974,377

2,216.782

Cotton

103.6

103.6

104.6

86.2

90.1

85.3

92.4

115.7

115.7

115.6

114.3

\

.

.

A

266

270

272

209

♦216

•217

308

*270

♦247

261

286
•263

269

•324

236

*241

♦231

175

185

♦169

$900,390

$927,627

$668,533

and

products

animals
—

eggs

ESTATE
OF

FINANCING
U.

S.

BOARD—Month

Savings and

—

of

companies

Bank

trust

and

Mutual

LOAN

(000's

BANK

omitted):

___

lending

-

institutions
-

173,867

130,353

458,034

332,636

135,603

133,904

112,049.

276,283

—

165,247
455,960

—

__—

companies

savings .banks

Miscellaneous

Total

HOME

April

NON-FARM

IN

loan associations

Insurance

Individuals

^Includes 770,000 barrels of foreign wide runs. §Based on new annual capacity of 125,828,310 tons
1, 1954 basts of 124.330,410 tons.
tNumber of orders not reported since introduction of Monthly Investment Plan.
♦♦New all-time high record.

446

242

AREAS

102.5

437

259

Poultry

94.7

436

260

Dairy products

109.9

207

1

hay_

234

Meat

90.9

227

197

Livestock

1,945,814

110.2

236

i

——

2,408,773

91.6

•246

240

!

:

2,068,997

110.3

•255

252

15:

__i—

3,328,433

90.9

247

255

May

crops

270.300

110.0

244

AGRICUL¬

OF

of

Fruit

1,675.514

June 28

15.9

269.1

Oil-bearing crops

1,968.970

.—June 28

*16.9

200

DEPT.

.

345,200

—June 28

24.0

*278.9

—.

Tobacco

,

24.8

16.9

!
and

25.0

INDEX

—

.

grain

6.6
48.2

279,9

Crops

grain

6.6

♦49.8

____

S.

TURE—U) 10-14=100—As

Feed

dividends-

income

Unadjusted—
All farm products

1, 1955, as against Jan.




and

FARMERS

BY

U.

—

4.6

6.6
50.0

payments^

non-agricultural

PRICES

2,063,573

.

in¬

—___

income

251,990

•Revised figure.

social

income-

interest

Personal

OF

.'

for

—

1,817,007

—

$284.4

26.4

industries

464.040

June 28

of Jan.

total_

Service

2,864,333

June 28

as

receipts,

194.3

REAL

foods

♦$294.6

202.2

STATES

COMMERCE)—Month

income

personal

Truck

100):

j

$295.6

THE UNITED

IN
OF

23,681

$29,735,000

billions):,

June 11
—

products

Processed

(in

*25,976

$29,800,000

♦53.7

372,854

960,483

safes

26,092

$29,769,000

DEPT.

(000's omitted)____.

June 11

SERIES

$44,495

53.5

y-

June 11

Commodity Group—
All commodities
Farm

30

-June 11

NEW

19,350

*$43,332

87.4

38,310

June 11

PRICES,

$25,145

*19,220

♦201.7

345.480

memoers—

April

Food

—June 11
account of

*$24,112

19,090

88.2

335,240

493,112

sales

—

270,030

523,247

purchases

LABOR

294,850

685,979

Short sales

WHOLESALE

511,810

—sJufne 11

—•

transactions for

of

NUMBER

-June 11
—

April

PERSONAL INCOME

\

sales

round-lot

Other

203,890

y

Total sales

Total

1,267,950

1,154,060

purchases

Other

1,478.350

June 11

Short sales

Total

1,153.030

322,440

sales

transactions initiated

Total

1,824,060

1,856,140

—

of

Proprietors and rental income

1,533,700

purchases

•—'—____

MONEY IN CIRCULATION—TREASURY

Other

2June 11

Total sales

Other

_,—

surance

-June 11

'

Short sales
Other

10,128,710

—Jrrne 11

-—

sales

Other transactions initiated on the floor—
Total

j

Jujie 11

_

sales

Other
Total

15,385,360

\
J

MEM-

—_—

producing industries
Distributing industries

Jufie 11

TRANSACTIONS

__

__——_—

Commodity

sales—

sales

$3,182,000

SERIES—

NEW

'L

__■

Wage and salary,

J

y

Short sales

purchases

Total

Total

STOCK

MEMBERS

$3,777,000

/,

(DEPARTMENT

'}■

ON THE N. Y. STOCK
TRANSACTIONS

SALES

ROUND-LOT

OF

COMMERCE)

Non-durables

As

Juiju 11

AND

467,000

$5,596,000

April (millions of dollars):

Sales

June 11

ACCOUNT

OF
of

Durables

$41,662,713

Short sales

TOTAL ROUND-LOT

_:—

924,873

June 11

Number of shares—Total sales

by

(DEPT.
Month

Inventories—

Jutje 11

4

.

Round-lot purchases
Number of shares

——

1V1AUNK ACTCKEKS' IN VLNTUKlfcS AND SALES

|

■<

;

Dollar value

572,000

I

COMMISSION:

sales

$2,143,000

457,000

$43,268

Industrial

573,000

$24,178

___:

$2,747,000

525,000

2,596,000

Jul,

STOCK

purchases*—f

1,815

2,909

PURCHASES—INSTITUTE

INSURANCE

LIFE

988

1,341

$2,475,000

—

INSURANCE

OF

773

1,084

__.—

Shipped

Ordinary

Junje 11

short

Total

115,009

142,115

391

Juife 11

of

101,903

133,514

bales)—

(1,000-lb.

201

June 25

other sales

Transactions

199,081

142,527

_

Shipped
Hull

70,844

285,687

(running bales)■—

Produced

.___^-_;i-Jtme-25

(customers'

Customers'

Total

-81,522

81,977

Shipped

purchases by dealers (customers' sales)—

ROUND-LOT

122,901

v

70,582

230,640

__i

63,698
65,976

.___

(tons)

3.24

value

round-lot

♦,56,039

_

3.14

period

SPECIALISTS

Customers'

Total

145,980

53,761

Hulls-

3.31

______

sales by dealers

EXCHANGE

161,713

._

3.21

Number of orders—Customers' total sales

FOR

193,472

154,119

31

3.21

Number of shares

Other

273,098

139,630

159,930

May

(tons)
(tons)

3.31

June 25

109

=

SECURITIES

—

sales

174,462,000

3.18

.

—__

of

at end

(tons)

DEALERS

Round-lot

151,578,000

119,302,000

3.32

June 25

AVERAGE

Odd-lot

1,061,214,000

117,110,000

135,366,000

ITOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

Dollar

562,020,000

105,709,000

3.17

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

Odd-lot

163,177,000

3.22

/_—

:

activity

EXCHANGE

124,212,000

nJfUy

ASSOCIATION:

(tons)

Percentage

LOT

84,728,000

110,834,000

125,217,000

July

(tons)

1949

May

(pounds)

(tons)

Produced

3.24

-

INDEX

PAPERBOARD

Production

i

106,593,000

101,987,000
112,824,000

Meal—

and

Stocks

3.14

Group

orders

556,447

July

__—_____

COMMODITY

Unfilled

22,110

356,184

705,100

--July,
Group

Orders received

Cake

2.91

-July.

:

Group

NATIONAL

12,780
318,041

96,409,000

May 31

(pounds)

3.16

u-July;

MOODY'S

12,756
433,125

31

•

-LJuly.

—

Industrials

1,786

284,731

___

(pounds)

Shipped

2.82

uuJuly.:

Bonds

A

Utilities

(tons)

Produced* (tons)

July"

Public

2,786

of

(pounds)

96.94

corporate

Railroad

2,313

1,787

PROD¬

(pounds)
Relined Oil—
1
:

—July: 5

'.

SEED

COMMERCE—Month

May

(pounds)

108.88

Aaa
Aa

COTTON

6,885

2,496

2,859

1,819

_

7,142

2,589

;

1,634
4,481

Oil—

95.88

Group—

Baa

5,370

5,005

.

—

Average

Crude

108.88

-

-July

U. S. Government

10,002

1,534

3,011

loans

mills

95.78

Group

MOODY'S BOND

21,487

7,419

(tons)

103.70

2i July

Industrials

5,492

5,063

:

OF

(tons)

5

July

Group

"

1,546

credit

AND

-July 5

:

Utilities

:

DAILY AVERAGES:

Bonds

-

Public

loans

Shipped

95.000c

:

Railroad

5,555

credit

at

35.700c

36.400c

;

Baa

$28,372

"

<

Cotton Seed—

June 29

corporate—

Aa

goods

modernization

UCTS—DEPT.

35.700c

at

Aaa

A

credit

_,

loans

SEED

36.325c

—

at

Louis)

Government

Average

COTTON

35.700c

at

Louis)

(East St.

term

31:

I

payment

June 29

MOODY'S BOND PRICES
U.

Single

_L June 29

at
York)

(New

(New York)

Lead

and

Received

refinery

tin

May

May:

QUOTATIONS):

Domestic refinery at

Export

RE¬

4.634c

Electrolytic copper—

Straits

intermediate

of

consumer

Personal

192

4.797c

».

M. J.

A

FEDERAL

Charge accounts

(per gross ton)

(E.

.__

Automobile

PRICES:

(per lb.)

PRICES

THE

credit-

Non-instalment

Scrap steel iper gross ton)___
METAL

YORK—

omitted)

OF

and

as

consumer

Service

steel

iron,

Pig

2

&

BRADSTREET, INC
IRON AGE COMPOSITE

NEW

SYSTEM—REVISED SERIES—Esti¬
short

millions

Repair

AND

(000's

OF

Instalment credit

June 25

kwh.)

000

OUTSTANDING—FED¬

BANK

GOVERNORS

in

INSTITUTE:

(in

output

31

599,256

CREDIT OUTSTANDING—BOARD

Other
■DISON

PAPER

RESERVE

mated

,

100

=

ERAL

SERVE

June 25

lignite (tons)
Pennsylvania anthracite (tons)
DEPARTMENT

$323,867,000

MINES):

and

$44,500

11,600

*22,600

—

COMMERCE

83,013,0.00

45.584,000

,

connections

$43,300

11,700

£

omitted)

.une 24

from

$43,300

I

_______

168.147,000

RAILROADS:

(number

dollars):

22,800

Total
Revenue

Ago

April

DIVIDENDS—PUBLICLY REPORTED BY
S. CORPORATIONS
U. S. DEPT. OF

U.

pipe lines—

at

Revenue

Tear

Month

COM¬

of

Total

CASH

9,700,000

June 24

(bbls.)

OF

Month

23.862,000

1,846,000
11,522,000

oune

AMERICAN

DEPT.

—

1

June 24

at

OF

of

—

SERIES

6,509,800

June 24

at

(bbls.)

(millions

6,939,000

_

oil

fuel

6,625,600

(bbls.)

oil

NEW

Retail

6,636,700

output (bbls.)

Kerosene

ASSOCIATION

INVENTORIES

Wholesale

6,655,450

of that date:]

Month

BUSINESS

1,430,000

of

(bbls.)

average

Stocks at refineries, bulk terminals, in transit, in
Finished and unfinished gasoline (bbls.) at

Distillate

2,286,000

June 24

Crude runs to stills—daily
Gasoline output (bbls.)

fuel

*1,716,000

are as

Previous

Manufacturing

output—dally

12 gallons each)

Residua)

§2,164,000

of quotations,

cases

Ago

94.7

INSTITUTE:

condensate

and

July 10

in

or,

either for tiki

are

Latest

MERCE

ingots and castings

AMERICAN

Dates shown in first column

that date,

Equivalent to—
Steej

production and other figures for the

cover

Year

Ago

*71.1

§89.7

or

month ended

or

Previous

Week

of capacity)

(percent

following statistical tabulations

latest week

39

302,550

239,230

423,649

458,630

310,190

$2,357,132

$2,454,612

$1,792,991

40

The Commercial

(100)

and*Financial Chronicle

.

.

Thursday, July 7, 1955

.

if INDICATES

Securities Now in
ir Academy

Insurance Co., Beverly Hills, Calif.

15,000 shares of common
stock (par $10). Price—$20 per share. Proceeds — For
operation of stock Workmen's Compensation Insurance
(letter of notification)

June 24

Office—449 South Beverly Drive, Beverly

Carrier, Inc.

Hills, Calil'. Underwriter—None.

mining operations.

Office—65 East Fourth South

St, Salt Lake City, Utah. Underwriter—Western States
Investment Co., same city.

Seattle, Wash.

★ Alaska Telephone Corp.,
stock

(par $1)

debentures

on

months
of

4,027 shares of common

(letter of notification)

June 23

for

a

be offered in lieu of

to
at

par

total

sum

of not

more

paying interest
a period of 36

than

145,000 shares

Office—Alaska Trade Bldg., Seattle

stock).

common

(will continue for

Underwriter—None.

1, Wash.

All State Uranium Corp.,

Moab., Utah

April 19 (letter of notification) 1,000,000 shares of com¬
mon stock
(par one cent). Price—30 cents per share.
Proceeds—For mining operations.
Underwriter—Gen¬
eral

Investing Corp., New York.

Allied
June
A

Industrial

Filing to be amended.

Development Corp.

(letter of notification) 300,000 shares of class
stock. Price—$1 per share. Proceeds—For oil

20

common

Office—1508 Capitol Ave., Houston,
Paul C. Ferguson & Co., same ad¬

and gas operations.

Tex.

Underwriter

May 19 filed
to

be

ord

offered

May

17,

share held.

Hotel of New York,

each

1955, on basis of one new share for
Price—To be supplied by amendment.

American

bank loans.

Asbestos

Co.,

Pro¬

Underwriter—None.
Ltd.

Feb. 17 (Regulation

"D") 600,000 shares of common stock
50 cents per share. Proceeds—For
general corporate purposes. Underwriter—Maine Invest¬
ment Co., Ltd.
(par $1).

Price

—

★ American Broadcasting-Paramount Pictures, Inc.
filed 210,600 shares of common stock (par $1),

June 30

which

are

by option warrants held by key offi¬

covered

and employees. Price—$16.63 per share. Proceeds—
general corporate purposes. Office—New York, N. Y.

For

Underwriter—None.
•

American

June

3

filed

Machine &

80,000

Exchange.

Metals,

shares

(no

par)

the New York Stock

exchange for stock of The Lamb Electric Co. pursuant

Corp., New York
June 7 filed $1,000,000 of five-year 8%
subordinated
debentures due July 1, 1960.
Price—100% of principal
amount.
Proceeds—For working capital and expansion
of loan business. Office—325 Lafayette Street, New York
12, N. Y. Underwriter—None.
Beehive Uranium Corp., Salt Lake City, Utah
May 26 (letter of notification) 20,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Office — 156 East Third
South St., Salt Lake City, Utah. Underwriter—Columbia
Securities Co., Denver, Colo., and Salt Lake City, Utah.
Blue Goose

Securities

Fairville, Fla.
May 12 (letter of notification) 2,337,500 shares of
stock

Mining, Inc.
(letter of notification) 1,950,000 shares of
stock.
Price—At par (10 cents per share).
7

mining expenses. Offices—Boulder, Garfield
County, Utah, and Box 1055, Farmington, N. M. Under¬
writer—Birkenmayer & Co., Denver, Colo.

Bonnyville Oil & Refining Corp., Montreal, Can.
April 29 filed $2,000,000 5% convertible notes due July
1, 1975 to be offered for subscription by common stock¬
holders at rate of $100 of notes for each 100 shares of
stock held.
Price—95% of principal amount to stock¬
holders and 100% to public. Proceeds—For development
costs

and

None.

general

corporate

purposes.

Underwriter—

Statement effective June 21.

Cal-U-Mines, Inc., Reno, Nev.
May 2 (letter of notification) 2,250,000 shares of
mon

—For

mining

Nev.

Underwriter—Coombs

Office—139 Virginia St., Reno,
& Co. of Las Vegas, Inc.,

expenses.

&

com¬

(par 20 cents) to be offered for subscription

standing capital stock of Goodman Lumber Co., Good¬
man, Wis., on the following basis: 18 shares for each
share of Goodman

American Natural Gas Co.

June 15 filed
to
on

be offered

(7/18)

the basis of

subscription by

one

new

common

(par $25)
stockholders

share for each five shares held

July 18 (with an oversubscription privilege); rights to
expire Aug. 2. Price — To be supplied by amendment.
Proceeds—To be applied to the purchase of equity se¬
curities of subsidiaries or to replace other corporate
funds used for that purpose. Underwriter—To be deter¬
mined by competitive biding.
Probable bidders: Blyth

on

&

Co., Inc.; The First Boston Corp.; Lehman Brothers;
Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
Bids—Expected to be received up to 11 a.m. (EDT) on
•or about July 18, at 165 Broadway, New York 6, N. Y.
American

May 11
mon

—-To

Rare Metals

Corp., N. Y.
notification) 300,000 shares of

(letter of

com¬

stock

(par one cent). Price—$1 per share. Proceeds
repay debt and
for general corporate purposes.

Underwriter—Equity Securities Co., 11 Broadway, New,
York, N. Y.
Arizona

Amortibanc^ Phoenix, Ariz.
April 4 (letter of notification) 300,000 shares of com¬
mon stock, class A.
Price—At par ($1 per share). Pro¬
ceeds—For working capital. Office—807 West Washing-

Inc., both of Denver, Colo.

Underwriter—None.

Ore.

Collins

Radio

Co.

(7/19-20)

June 29 filed 75,000

shares of class B common stock (par
Price—To be supplied by amendment. Proceeds—

$1).

To selling stockholders.

& Co. and
•

Underwriters—Kidder, Peabody

White, Weld & Co., both of New York.

Colohoma

Uranium, Inc., Montrose, Colo.

cent), of which 2,500,000 shares are to be offered pub¬

Price—50 cents per share. Proceeds—For explora¬
general corpor¬

licly.

tion and development expenses and for
ate

Underwriters—General

purposes.

New York;

date of the mailing of the prospectus to the Goodman
stockholders). Underwriter—None.

Canadian Uranium Mines, Ltd.,
Montreal,
3
(regulation "D") 2,000,000 shares of

Price—15

cent).

one

derwriter—Tellier

&

cents

per

Canada

share.

Pro¬

Co., Jersey City, N. J.

(letter of notification) 300,000 shares of common

(par 20 cents). Price—$1 per share. Proceeds—
For oil and mining activities.
Office — 350 Equitable
stock

Underwriter—Birkenmayer & Co.,

Bldg., Denver, Colo.
same city.
•

Colorado

fice—Grand

April 27 (letter of notification) 746,280 shares of com¬
mon stock (par one
cent). Price — 25 cents per share.
Proceeds—For mining costs. Underwriter—J. E. Call &
Co., Salt Lake City, Utah.
Cedar

Springs Uranium Co., Moab, Utah
(letter of notification) 300,000 shares of common
stock (par five cents). Price—$1 per share. Proceeds—

June 8

For

mining expenses. Underwriter—Universal
ment Corp., Washington, D. C.

& Uranium Corp.,

Colzona Oil

Central Reserve Oil

Co.

St., Denver, Colo. Underwriter—Peters, Writer & Christensen, Inc., Denver, Colo.
June

6

share).

Underwriter—Wachob-Bender

St., Omaha, Neb.

Farnam

Omaha, Neb
(letter of notification) 150,000 shares of 7%
cumulative preferred stock (par 95 cents) and 15,000
shares of common stock (par one cent) to be offered in
March

units

11

of

10

shares

stock.

of

preferred stock and

Price




all

offices

share of

Broadway, New York City.

Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—25 cents per share. Pro¬
ceeds—For

mining

Office—326 Wiggett Bldg.,
Underwriter—M. A. Cleek, Spo¬

expenses.

Coeur

d'Alene, Idaho.
kane, Wash.
Constellation

Uranium

Corp.,

Denver, Colo.

March 22 (letter of notification) 2,855,000 shares of com¬
mon stock
(par one cent). Price —10 cents per share.

mining expenses. Office—206 Mercan¬
Bldg., Denver, Colo. Underwriter—Bay Securities
Corp., New York.
•

Consolidated

Cigar Corp., New York

(7/14)

June 3 filed $17,500,000 of 20-year sinking fund deben¬
tures due June 1, 1975. Price—To be supplied by amend¬
ment. Proceeds—To repay

outstanding long-term indebt¬
working capi¬
Underwriter—Eastman, Dillon & Co., New York.

edness and short-term bank loans and for

tal.

Consolidated

Sudbury
Toronto, Canada

Basin

Mines,

Ltd.,

Co., 136 Liberty Street, New York, N. Y.

States.

A Chance
29

filed

duce bank loans

of

exploration and development of properties.
—Stock

common

incurred in connection with acquisition
of Seyler Manufacturing Co., Pitts¬

stock

to

sold

be

Toronto

on

through underwriters

(A. B.)

Co., Centralia, Mo. (7/20)
50,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To re¬

June

Price

due

—

To be

if Clad

Corp.,

same

21

($10 per
for

Co.,

Philadelphia, Pa.

June 17 (letter of notification)
stock
For

(par 25 cents).

120,000 shares of common
Price—$2 per share. Proceeds—

equipment and working capital.

rett Herrick

&

Co., Inc., New York.

Underwriter—Bar¬

or

United

Telephone Co., Florence, Ky.
(letter of notification) 10,000 shares of 5y2%
convertible preferred stock. Price—At
par
share). Proceeds—To repay accounts payable,

additions

and

improvements
&

and working capital.
Co., Cincinnati, O.

Consumers Power Co.

to
on
as

(7/20)
373,689 shares of common stock

filed

24

be

offered

the basis

for
of

subscription by

one

new

each

5.

(no par)

stockholders

common

share for

of July 21; rights to expire on Aug.
to be offered to employees of

shares

pany

city.

in

cumulative

subsidiary.

(Victor V.)

Underwrite!

Exchange

Consolidated
June

June

debentures

Stock

selected dealers

or

Underwriter—Westheimer

curities

to

one

$10 per unit. Proceeds — For
working capital. Underwriter—J. J. Riordan & Co., Inc.,
—

Jan. 31 filed 3,000,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—For

April 22 (letter of notification) 4,000,000 shares of capi¬
tal stock. Price—At par (five cents per share). Proceeds
—For mining operations. Office—223
Phillips Petroleum
Bldg., Salt Lake City, Utah. Underwriter—Empire Se¬

Private Wires

Neb.

(letter of notification) 1,000 shares of 5y>%
preferred stock.
Price—At par ($100 per
Proceeds—For working capital.
Office—3023

cumulative

(N. Y.)
May 31 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For general corporate purposes.
Office—130 West 42nd
Street, New York, N. Y. Underwriter—United Equities

Chieftain Uranium Mines, Inc.

Cleveland

Denver, Colo.

April 29 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—1300 Larimer

Invest¬

waukee, Wis.

San Francisco

Underwriter—General In¬

Colo.

Junction,

vesting Corp., New York.

tile

—

Philadelphia

(7/13)

Sports Racing Association

April 29 filed 600,000 shares of common stock (par five
cents). Price—$1 per share. Proceeds—For purchase of
land and other facilities and for working capital.
Of¬

Proceeds—For

(Utah)

supplied by amendment.
Proceeds
For plant expansion. Office — Green
Bay,
Wis. Underwriter—Robert W. Baird &
Co., Inc., Mil¬

Chicago

Corp.,

Colorado Oil & Uranuim Corp.
June 7

common

and development expenses. Un¬

Carbon Uranium Co.

July 1, 1975.

Pittsburgh

Investing

and Shaiman & Co., Denver, Colo.

Charmin Paper Mills, Inc.
June 17 filed $5,000,000 of convertible

Boston

(7/14)!

April 21 filed 2,960,000 shares of common stock (par one

burgh, Pa. Underwriter—Stifel, Nicolaus & Co., Inc., St.
Louis, Mo.

NewYork.

,

(Guy E.) Co., Ashland, Ore.
May 17 (letter of notification) 793 shares of common
stock.
Price—At par ($100 per share).
Proceeds—For
working capital, etc. Address—P. O. Box 585, Ashland,

42

Goodman 1st preferred stock; offer to
Sept. 15, 1955 (subject to withdrawal by
Calumet if the required number of Goodman shares have
not been deposited and accepted within 30
days from the
on

(par

Proceeds—To re¬

• Clarke

common

common

ceeds—For exploration

736,856 shares of common stock
for

& Jaquith,

stock; seven shares for each
share of Goodman 2nd preferred stock; and
eight shares

stock

share).

per

outstanding debts and for working capital. Office—
40th Ave. and Ulster St., Denver, Colo.
Underwriters—
Mountain States Securities Corp. and Carroll, Kirchner

Confidential Finance Corp.,

Hecla, Inc.

June

stockholders;

($1

tire

Corp., same city.

June 9 filed 113,592 shares of common stock
(par $5)..to
be offered in exchange for all of the issued and out¬

terminate

ISSUE

Co., Denver, Colo.

par

Community Credit Co., Omaha,
com¬

Price—At par (10 cents per share). Proceeds

stock.

writer—None.
•

Pro¬

ceeds—For

unsubscribed shares to be subscribed
for by American Pacrite Corp., principal stockholders.
Price—To be supplied
by amendment.
Proceeds-—For
payment of indebtedness and for working capital. Under¬

by

com¬

REVISED

(letter of notification) 300,000 shares of common
Price—At

for each share of

plan.
Agent—American
Statement effective June 28.

reorganization

if American Machinery Corp.,
mon

Beaumont Factors

Calumet

stock

Price—At market then prevailing. Proceeds
receiving such shares in

Co., New York.

Inc.

filed 540,000

shares of common stock (par 50
cents). Price—$3.75 per share. Proceeds—For manufac¬
ture of Teleac Sending and Receiving Units, working
capital and general corporate purposes. Office—Balti¬
more, Md. Underwriter—Mitchell Securities, Inc., same
city.
V

Inc.

of common

To certain stockholders who are

a

3

Las Vegas, Nev.

to be offered from time to time on

to

Automatic Remote Systems,
March

mon

Inc.

163,898 shares of common stock (par $1)
for subscription by stockholders of rec¬

ceeds—To repay

cers

if Arkansas Oil Ventures, Inc.
(letter of notification) 500,000 shares of common
stock (par one cent). Price—Two cents per share. Pro¬
ceeds
For drilling equipment and working capital.
Office—615 Liberty Bank Bldg., Oklahoma City 2, Okla.
Underwriter—Tellier & Co., Jersey City, N. J.
June 16

June

Ambassador

June 6
stock.

—

dress.

Clad-Rex Steel

St., Phoenix, Ariz. Underwriter—First National Life

Insurance Co. of Phoenix, same address.

PREVIOUS

ITEMS

Registration

—

Academy Uranium & Oil Corp.
June 10 (letter of notification) 15,000,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For

ton

ADDITIONS

SINCE

20

shares

held

Unsubscribed

company and its
Price—To be not less favorable to the com¬
per share below the then current market

than $4

price at the time the offering price is determined. Pro¬
ceeds—For

construction

program.

Underwriter—To be

determined

by competitive bidding. Probable bidders:
Harriman Ripley & Co. Inc. and The First Boston
Corp.

(jointly); Morgan Stanley & Co.; Lehman Brothers;
Ladenburg, Thalmann & Co. Bids—To be received up to
11 a.m.

(EDT)

Consumers

on

July 20.

Power Co.

June

24

filed

stock

(no par).

100,000

(7/21)

shares

of cumulative preferred
Price—To be supplied by amendment.

Volume

182

Number 5444

.

.

The Commercial and Financial Chronicle

.

41

(101)

/

Proceeds—For additions and improvements. Underwriter
—Morgan Stanley & Co., New York.

ic Copper Blossom Uranium

&

Mining Co.
notification) 5,000,000 shares of capital

June 24 (letter of

stock

(par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—65
East 4th South,

Salt, Lake City, Utah.
Corp.,

Underwriter—Empire Securities

city.

same

Denver, Colo.

—

Cortez

Uranium & Mining Co.,
Denver, Colo.
May 27 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.

Proceeds—For mining expenses. Office—404
University
Building, Denver, Colo.
Underwriter—Peters, Writer &

Christensen, Inc., Denver, Colo.

Uranium, Inc., Long Beach, Calif.
May 31 (letter of notification) 3,000,000 shares of
capi¬

tal stock.

Price—At par (10 cents per
share). Proceeds
mining expenses. ~ Office—2485—American
Ave.,
Long Beach 6, Calif. Underwriter—-Coombs &
Co., of
Los Angeles, Inc., San Francisco
and Los Angeles, Calif.
—For

Cromwell

Uranium & Development
Co., Inc.
May 25 (regulation "D") 300,000 shares of common stock
(par five cents). Price—$1 per share.
Proceeds—For
exploration and development
expenses, etc.
Offices—
t Toronto, Canada, and New
York, N. Y. UnderwriterJames Anthony Securities
Corp., New York.

July 8

Old

ISSUE

Republic

(Offering

Co.)

Insurance

to

Co._______

Corp.)

100,000

Common

by

The

Alstyne,

Noel

&

First

$2,112,500

Jackson

&

Construction Co.

11

Curtis)

(White,

Natick

Weld

110,00C

Chemical
(G.

Southland

F.

148,000

Industries,

Rothschild

&

shares

stock.

Price

Corp.)

1, Wash. Underwriter—Percy Dale Lanphere,
Empire State Bldg., same city.

Common

$1,250,000

Inc.)

Denver-Golden Oil & Uranium Co.

Proceeds—For

oil

and

Northern Indiana
(Central

Republic

Lynch,

a.m.

Public

Co.,

Inc.;

Pierce,

$30,000,000

Club Bldg., Denver, Colo.
Underwriter—Carroll,
ner &
Jaquith, Inc., Denver, Colo.

Deseret Uranium

13

&

&

Co.,

Corp., Salt Lake City, Utah

(letter of notification) 2,000,000 shares of capital
(15 cents per share). Proceeds—
For mining expenses. Office—527 Atlas
Bldg., Salt Lake
City, Utah. Underwriters—Western Securities Corp. and
stock.

Price—At par

Potter Investment Co., both of Salt Lake

Beane)

(General

Sulphur

and

(Bear,

Texas

Eastern

Investing Corp.)

Transmission
Read

&

Co.

July 14
Colohoma

State

St., Salt Lake. City, Utah.
Co., Inc., Denver, Colo.

Chance

(A.

B.)

Cigar

(Eastman,

Consumers
(Offering

Power

to

(White,

General

Common

Ocean

Co.

and

Siegler Corp.

$6,000,000

Common

Gardner)

Morgan

Staats & Co.)

(Hulme,

&

Inc.)

(Bateman,

Eichler

William

R.

&

American

Natural
(iBids

Livingston Oil

11

California
61,302

Co.;

736,856

(Bids

Collins Radio
(Kidder,

noon

(Stone

&

Webster

(Offering

and
and

Hutzler)

and

Foremost
(Allen

&

Co.,

Inc.

and

& £o.)

Blosser

&

Weeks)

West Coast Telephone Co
(Blyth & Co., Inc.)

and

Common

Brothers & Co.,
shares of stock

Inc.)




Salt

Lake

Farm

Price—$1

City,

share.

per

Office—2320

expenses.

Proceeds—

South Main Street,

Utah.

Underwriter
Vegas, Nev.

—

Eliason,

Tayloiy

Family Mutual Insurance Co., Albany, N. Y.
debentures to be offered

June 28 filed $1,500,000 of 5%

to

members

and to

the

of

American

Farm

Bureau

State Farm Bureau Federations and

local organization.

Price—At 100% of principal amount
(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
Underwriter—None.

the

basis

of

epqyiew share for each five shares held.,
Proceeds—For general corporate

Office—Nfewhouse Bldg., Salt Lake City, Utah.
Underwriter—Allied Underwriters Co., same address.
purposes.

Ferro

Corp., Cleveland, Ohio

(7/14)

Proceeds—To

$4,970,000 of funded

prepay

debt and for property additions and improvements.

Un¬
derwriter—Merrill Lynch, Pierce, Fenner & Beane, NewYork.

—To

increase
Lewis

capital and
&

surplus. Underwriters—McCo., Greensboro, N. C.; Dietenhofer &

Heartfeld, Southern Pines, N. C.; and Calhoun & Co.,
Spartanburg, S. C.

writer—None.

if Fort

Pitt

Packaging International, Inc.
300,000 shares of common stock (par 100),
250,000 shares of for account of company and
50,000 shares of five selling stockholders. Price—$3 per
share.
Proceeds—For working capital; for exploitation
of "Totosave" system; and for marketing of "TropicRay" infra-red space heater.
Office — Pittsburgh, Pa.
June 30 filed

Com.

$300,000

Corp.;

Common

shares

of

which

Webber,

Co.

and

Jackson

&

$1,000,000

Debentures
underwriting)

$2,396,500

(Monday)
Debentures

Salomon

Bros.

August 8

&

Hutzler)

$20,000,000

&

Co.; J. H. Lederer Co.; and McGrath Securities
Corp.) $600,000

Aug.
(Bids

to

16
be

(Tuesday)

invited)

Debentures

$67,000,000

stockholders—no

Omaha, Neb.
Freedom

Insurance

Price—$22

Common
$325,974

(Tuesday)

Light Co
be

$15,000,000

Light Co.
to

be

-

invited)

177,500

(par $10).

life, title and
Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this
company

mon

University

by Uni-Insurance Service Corp.

Denver, Colo.
(letter of notification) 600,000 shares of com¬

stock

(par 10 cents).

Proceeds—For

Common

shares

mining

Price

50 cents per share.
Office—235 Ivy St.,

—

expenses.

Underwriter—L. A. Huey Co.,

same

city.

Frozen

Foods, Inc., Anthony, Texas
June 10 (letter of notification) 34,997 shares of common
Price

stock.

&

(Bids

Calif.

Proceeds—For capital and surplus.

Office—2054

mortgage.

Frio

Bonds

invited)

share.

per

Denver, Colo.

to

Berkeley,

Business—All insurance coverages, except,

April 22

underwriting)

13

Co.,

Fremont Uranium Corp.,

(Monday)

Public Service Corp
to

Telephone Co., Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
dial operation.
Underwriter — Wachob-Bender Corp.,

June 6 filed 1,000,000 shares of common stock

(Monday)

Pictograph Mining & Uranium Co., Inc.-.Common
Shaiman

Co., Inc., New York.

Fowler

Preferred
Paine,

ethers)

stockholders—no

(Bids

—

At par

working capital.

($5 per share). Proceeds — For
Underwriter — Norman D. Patterson,

Jr., El Paso, Tex.
Sept. 20
Ohio Power

Ohio

B

Common

75,000

Power

Worcester

shares

(Tuesday)

Co......
11

GAD
Preferred

a.m.

EDT)

$6,000,000

Co.

Bonds

18

(Bids

to

be

invited)

November 9

$20,000,000

Southern

(Bids

ceeds—For

purchase

Bonds

factory

O'Connor

and

Avenue,
and

working

capital.

Alexandria,

Va.

Associates, Washing¬

ton, D. C.
General
Dec.

(Wednesday)

J.

of

Vernon

Mount

Underwriter—T.

$8,500,000

Co.

stock

Office—1710

(Tuesday)

County Electric Co

Enterprises, Inc., Alexandria, Va.
(letter of notification) 260,000 shares of com¬
(par 10 cents). Price—$1 per share.
Pro¬

March 15
mon

lF'afm. EDT) $22,000,000

Oct.

Common
150,000 shares

mining

if Ford Rock Mines, Inc., Post Falls, Idaho
May 17 (letter of notification) 11,400 shares of common
($1 per share). Proceeds—For min¬
ing operations and general corporate purposes. Under¬

/....Debentures
Hornblower

(par 50 cents).

For

stock. Price—At par

Dairies, Inc

&

$3,600,000

Weld

Straus,

Corp

to

(Bids

White,

Inc.-Debentures

and

Wednesday)

Securities

Equip. Trust Ctfs.

Pacific Finance Corp
(Blyth

300,000

shares

Class

Co.

Baruch

1,041,393

September

$1,298,500

Co

Peabody &

Co.;

(Monday)

August 1

and

(Tuesday)
EDT)

stock

Daniel

$1,000,000

debentures

(Bids

July 19

Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital

Underwriter—Barrett Herrick &

Common

Chesapeake & Ohio Rv

...Common

&

July 27 (

Utah Power

EDT)

per

Fidelity Insurance Co., Mullins, S. C.
(letter of notification) 86,666 shares of com¬
stock (par $1). Price—$1.87 V2 per share. Proceed*

stockholders—underwritten by Kuhn, Loeb & Co.;
Brothers; Clark, Dodge & Co.; and Salomon Bros.

Common

Noel <fe Co.)

filed

mon

to

Lehman

shares

Co

"best-effort*

Webster

Western Nebraska Oil & Uranium Co., Inc.

Housatonic

Co

(Van Alstyne,

&

(Friday)

McDowell)

Sulzberger & Co.;

$1,500,000

(Monday)

Gas
a.m.

Preferred

Stone

McCormick

Co.;

Utah Power &

July 18

and

Industrial Hardware Mfg. Co., Inc.
Debentures &

(Offering

Co.)

a

300,000 shares of capital stock. Price—At
share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.

$1,000,000

Common

First

&

shares

Pacific Telephone & Telegraph Co

(Friday)

Co.:

Staats

100,000

Curtis

&

Corp.)

Sept. 5

July 15

6

($1

par

amendment.
—Preferred

Co.)

&

$2,000,000

Petrolane Gas Service, Inc

on

June 24 filed $6,000,000 of convertible subordinated de¬
bentures due July 1, 1975. Price — To be supplied by-

(Thursday)

Co

Jackson

&

Debentures

Applegate'& Humphrey,

shares

shares

216,828

Maremount Automotive Products,

Stanley

225,000 shaies

Markets, Inc

Ltd., Toronto, Canada,

Electronics Co. of Ireland
Jan.

Common
Co.)

&

(Offering to stockholders—underwritten by Dillon, Read
& Co. Inc.)
912,512 shares

Common

R.

373,689

$1,805,328

—

(William

Thorofare

Reinholdt &

EDT)

a.m.

Goodyear Tire & Rubber Co

$1,250,000

Debentures

to stockholders—underwritten by

&

Brown

March 25

,

Drilling & Exploration Co

(Offering

11

July 22

Tel Autograph

Beane)

W.

Price—$40 per/ sip^.

shares

50,000

Co

Stanley

Webber,

$17,500,000

&

Inc.)

Co.,

Telephone Co. of Wisconsin

Common

Fenner

R.

Security Insurance Co.
April 21 (letter -of notification) 6,000 shares of common
stock (par $10) to be offered first to stockholders on
Common

&

July 21
Power

Curtis;

(Thursday)

Pierce,

J. W.

(Wednesday)

Weld

(Morgan

..Debentures

Lynch,

—

.

Mfg. Co

&

Preferred

Corp.

(Merrill

343 South

Underwriter

Southern Colorado Power Co

Corp

Dyno Mines, Ltd., Toronto, Canada.
25 filed 1,100,000 shares of common stock (par
$1). Price—To be related to the current market price
on the Toronto Stock Exchange.
Proceeds—To American
Trading Co. Ltd., the selling stockholder. Underwriter—
March

Federal

stockholders—bids

$16,000,000

Dillon & Co.)

—

Co._

Nicolaus

$600,000

Corp

(one cent per share). Proceeds
Underwriter—Guss & Mednick,
Arches Building, Moab, Utah.
expenses.

other state laws.

(Offering

Investing Corp. and Shaiman & Co.)

Consolidated

Office

CALENDAR

(Israel & Co.)

$4,500,000

Inc.)

Price—At par

mining

Cafarelli Co., Las

Hicks &

Common

Uranium, Inc

(General

Ferro

Co.)

tal stock.

—For

Federation

Debentures
&

City, Utah.

Western Union Telegraph Co..

(Wednesday)

Stearns

(Dillon,

Merrill

Office—1226-1411 Fourth Ave.
Se¬

expenses.

Durango Kid Uranium Corp., Moab, Utah
April 1 (letter of notification) 30,000,000 shares of capi¬

directly

mining operations.

$12,000,000

Corp

mining

Desert Sun Uranium Co., Inc.
April 18 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.

Preferred
Inc.;

Colorado Sports Racing Association
Gulf

Kirch-

June 9

(HallowelJ,

Service Co

Blyth

Fenner

July

Bonds

EDT)

Office—Denver

$298,290

July 12 (Tuesday)
11

operations.

gas

July 25

(Bids

—For

basis."

(letter of notification) 2,999,000 shares of com¬
stock
(par one cent). Price—10 cents per share.

(Hallgarten

Illinois Bell Telephone Co

com¬

stock. Price—At par (10 cents per share). Proceeds

mon

June 23

Common

Herrick & Co.,

share. Proceeds—For
Office—726 Paulsen Bldg.,

Spokane

^266,000

Inc.)

Washington Natural Gas Co
(Barrett

cents per

uranium and oil exploration.

Common

&

Common

Investing

10

—

units

Racing Corp
(General

as

if Dawn Uranium & Oil Co., Spokane, Wash.
(letter of notification) 1,500,000 shares of com¬

Common

Inc

Co.,

Price—Expected

and
99%

Proceeds—To Romenpower Electra

Securities

Preferred

Co.)

&

Courts

Underwriter—Allen & Co., New York.

(Monday)

McLean Securities Corp.__

Veterans,

June 16

(Paine,

July

4%

of

bonds due 1983.

Consumers

B

Corp., Seattle, Wash.
1,750,000 shares of

,

(7/8)

$2,500,000

Common

Co.)

Class

Webber,

filed

principal amount.

mon

Uranium

(letter of notification)

Seattle, Wash. Underwriter—Mid-Continent
curities Co., Wichita, Kansas.

$750,000

Wright Line, Inc.
(Paine,

(Republic of)

29

Common
Inc.)

Office—205 Star

Underwriter—Justin Steppler, Inc.,

shares

Vanadium Queen Uranium
Corp
(Van

Cuba

April

Kroehler

Herrick & Co.,

Mines, Ltd.

June 20

Bldg.,

(Stifel,

Stewart Oil & Gas Co.
(Barrett

•

exchange for shares

in

York.

$2,500,000

stockholders—underwritten
Boston

Zinc

&

July 20
____Bonds

&

New

(Friday)

(Republic of)___
(Allen

common

(estimated at

NEW

-

Lead

Dinosaur

Proceeds—To selling stock¬

Proceeds—For

Crown Uranium Co.,
Casper, Wyo.
May 6 (letter of notification) 225,435 shares of

Price—At market

share).

per

Bldg., Casper, Wyo.

mon

Coso

Cuba

cents

of Kontika

of

Denver, Colo., and 317 Main St., Grand
Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.

(par five cents).

15

holder who received tnese shares

Public Works

Cordillera Mining Co.,

June 8 (letter of
notification) 2,995,000 shares of common
stock.
Price—At par (10 cents
per share).
Proceeds—
For mining operations.
Offices
738 Majestic
Bldg.,

stock

about

15

Homes,

Inc.

shares of common stock (par $1).
share. Proceeds—For plant expansion, ne"r

filed 300,000

Price—$5

per

Common
to

be

invited)

500,000

share*

Continued

on

page

42

42

The Commercial and Financial Chronicle

(102)

Continued

from

page

.

it General Telephone Co. of Wisconsin (7/21)
July 1 filed 10,000 shares of cumulative preferred

stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and for new construction.
Office —Madison, Wis.
Underwriters — Paine, Webber,
Corp.,

Goodyear Tire & Rubber Co., Akron, Ohio (7/22)
28 filed 912,512 shares of common stock (par $5)
be offered for subscription by stockholders of record

June
to

which

of

(7/25-29)

writers—W. C. Langley

85,000

Lutah Uranium &

shares are to be sold to Seymour and
at $5 per share.
Price—To be sup¬

May 23

share.

per

Proceeds—To

(no par).

Co.,

Dallas,

Texas.

Interstate

July 21 on the basis of one new share for each 10 shares
held; rights to expire on Aug. 8. Price—To be supplied
by amendment. Proceeds—For expansion and working
capital. Underwriter — Dillon, Read & Co., Inc., New

June

York.

Adjusteze Corp., Anaheim, Calif.

filed

holder

and

Great Eastern Mutual

June 23
stock

Life

(par $1) to be offered for subscription by stock¬
10 in

the ratio of

one

new

share

for each three

shares held; stock not subscribed for by
Sept. 10, 1955 will be offered to public. Price—To stock¬
holders, $3 per share; and to public, $5 per share. Pro¬

ceeds—To increase capital and surplus accounts. Office—
210 Boston Bldg., Denver, Colo. Underwriter—None.
•

Gulf

Sulphur Corp., Houston, Texas (7/13)
June
17 filed
$3,000,000 of 5% series A convertible
deebntures due July 1, 1970, and $1,500,000 of 5% series
B convertible debentures due July 1, 1970. Price—To be
supplied by amendment. Proceeds—To repay promissory
note and for working capital and general corporate pur¬

Underwriter—Bear, Stearns & Co., New York.

poses.

Hawk Lake Uranium Corp.
April 12 filed 200,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For mining
expenses, etc.
Underwriter—Dobbs & Co., New York
City, will act as agents.

it Herold
June

Radio & Electronics

(letter of notification) 100,000 shares of com¬
mon stock (par 25 cents).
Price—$3 per share. Proceeds
—For working capital.
Office — Mount Vernon, N. Y.
Underwriters
Weill, Blauner & Co., Inc., New York,
N Y., and Hallowell, Sulzberger & Co., Philadelphia, Pa.
—

Corp., Chicago,

ill.

June 3 filed $5,058,300 4% convertible subordinated de¬
bentures due July 1, 1970 being offered for subscription

by stockholders
15 shares held

working

Automobile
Lehman

basis of $100 of debentures for each

of June

24; rights to expire on July 11.
of principal amount (flat). Proceeds—

Price—1021/£%
For

on

as

capital for
rental

Brothers

expanded operations. Business—

and

and

truck

leasing.

Hornblower

&

Underwriters—

Weeks,

both

of

New York.

^Hilton Seafoods Co., Inc., Seattle, Wash.
April 29 (letter of notification) $150,000 of 5-year 6%
convertible debentures (each $500 principal amount con¬
vertible into 10 shares of

common

stock within the next

three

years). Price—At par (in denominations of $500
each). Proceeds—To increase inventories and for oper¬
ating capital. Office—1437 Elliott Ave. West, Seattle 99,
Wash.

Underwriter—None.

Home-Stake Production Co.,
Tulsa, Okla.
May 12 filed 60,000 shares of capital stock (par $5) and
1,000 debentures (par* $100) to be offered for sale in
units

of

60

shares of

stock

and

one

$100 debenture, or

multiples thereof.

working capital.
son,

to

of

Engineering Corp. on
Price—$2 per share. Proceeds

Price—$400 per unit. Proceeds—For
Underwriter—None. O. Strother Simp¬

of Tulsa, Okla., is President.

Kachina

Bend Uranium, Inc.
(letter of notification) 150,000 shares of com¬
mon stock
(par one cent). Price—$2 per share. Proceeds
—For exploration and
development expenses. Office—
10 West 2nd

South, Salt Lake City, Utah. Underwriters
Corp., New York; Lawrence
Rochester, N. Y., and Ned J. Bowman Co.,
Salt Lake City, Utah.
—James Anthony Securities
A. Hays Co.,

24,900

Corp., Reno, Nev.
May 12 (letter of notification) 600,000 shares of

and

shares for account of William E.
per share.
Proceeds—For
construction of model of "Horton
Wingless Aircraft"
and expenses incident thereto.
Underwriter—None.

company

100,000

Horton, President.

Price—$1

Humble Sulphur Co.,
Houston, Texas
April 25 filed 500,000 shares of common stock (par 10).
Price—$1.20 per share. Proceeds—For exploration for
sulphur and related activities. Underwriter—Garrett &

Co., Dallas, Texas.
Illinois

Kerr-McGee

filed

Oil

shares

of

exchange
expire

for
stock

common

shares

150,000

of

Deep

Rock

basis;

2f in

Corp.
offer to

July 15. These preferred shares are part of
674,880 shares owned by Deep Rock which
were
acquired by them on April 27, 1955.
Agents—
Gregory & Sons, and Sutro Bros. & Co., New York
City, have agreed to solicit tenders.
a

on

Telephone Co. (7/12)
June 21 filed $30,000,000 of first
mortgage bonds, series
D, due July 15, 1995. Proceeds—To repay advances from
American Telephone &
Telegraph Co., parent. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan
& Co. and Union Securities
Corp. (jointly); Morgan
Stanley & Co.; Kuhn, Loeb & Co. Bids—To be received
up to 11 a.m. (EDT) on July 12 at Room
2315, 195 Broad¬
way, New York, N. Y.

Knapp Uranium & Development Co.
April 21 (letter of notification) 20,000,000

Uranium Corp., Salt Lake
City, Utah
25
(letter of notification) 15,000,000 shares

April
capital stock.
ceeds—For
Salt Lake

Price—At par

(one cent per share). Pro¬

mining expenses. Office—1946 S. Main St.,
City, Utah. Underwriter
Guss & Mednick

Co., Salt Lake City, and Moab, Utah.




—

March 31 filed

The balance of $1 of a total purchase
share is to be paid in cash. The
exchange will be contingent upon acceptance of the
offer by holders of not less than1 81% of the Marine
Transit shares. Statement effective May 11.
of $234 per share.

shares

of

offer price of $235 per

stock. Price—At par (one cent per share). Pro¬
ceeds—For mining expenses. .Office—2174 S. Main St.,
Salt Lake City, Utah. Underwriter — Guss & Mednick

city.

same

Medical

Kroehler Mfg. Co., Naperville, III.
(7/20)
June 28 filed 216,828 shares of common stock
(par $5),
of which 160,328 shares are for account of

June
mon

company and
56,500 shares for account of selling stockholders. Price—
To be supplied by amendment. Proceeds—For
expansion

repayment of bank loan of Canadian subsidiary.
Underwriter—White, Weld & Co., New York.

LeBlanc Medicine Co., Inc., Lafayette, La.
April 6 filed 1,000,000 shares of common stock (par 10
cents).
Price—$1 per share.
Proceeds—For purchase
of land, plant,
warehouse, office building and equip¬

15

Abstracts, Inc., Philadelphia, Pa.

(letter of notification) 300,000 shares of com¬
(par one cent). Price—$1 per share. Proceeds

stock

—For

Fund

working capital, etc. Office—825 Western Savings
Philadelphia, Pa. Underwriter — Carl J.

Bldg.,

Bliedung,

and

Washington, D. C.

Mehadrin

|

.

..

Inc., New York
April 28 filed 70,000 shares of common stock (par $10).
Price—$10.75 per share.
Proceeds—For acquisition ol
t additional groves and working capital and other gen¬
eral corporate purposes. Business—Production and sale
of citrus fruits in State of Israel; also plans to grow sub¬
tropical fruits. Underwriter—None.
Plantations,

•

ment; and additional working capital. Business—Proc¬
essing, packaging and merchandising of new proprietory
medicine, KARY-ON. Underwriter—None.

Merritt-Chapman & Scott Corp., New York
28
filed
314,718 shares of common stock (par
to be offered in exchange as follows: 102,250

Leborn Oil & Uranium Co.

June 8

June

(letter of notification) 6,000,000 shares of capital
Price—At par (five cents per share). Proceeds—

$12.50)

shares to class A stockholders

For

mining expenses. Office — 124 V2 South Main St.,
Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
Life

and

Accident

Insurance

Co.

of

Alabama

June 2 filed

750,000 shares of class B (non-voting) com¬
mon stock
(par $1). Price—$3 per share. Proceeds—To
increase capital and surplus.
Office—Gadsden, Ala. Un¬
derwriter
None, sales to be handled by Burlus Ran¬
dolph Winstead, Secretary and Treasurer of the com¬

Co., Inc.

Little Star Uranium Co., Inc.,
Casper, Wyo.
May 25 filed 5,000,000 shares of common stock (par 10

cents).

Price—15

cents

per

share.

Proceeds—To

pur¬

chase machinery and equipment; for drilling and recon¬
naissance surveys; for acquisition of additional
proper¬

ties; and for working capital and other purposes. Under¬
writer—Peters, Writer & Christensen, Inc., Denver, Colo.

Livingston Oil Co., Tulsa, Okla.
June

filed 742,000 shares of common stock
(par 10
Price—$2.75 per share. Proceeds—For purchase
of properties and working capital. Underwriter
Van
—

Lone Star Uranium &

Drilling Co., Inc.
April 7 (letter of notification) 570,000 shares of

cents). Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—1100
Fidelity Union

Underwriter
Co., Las Vegas, Nev.

Nichols
•

—

Christopulos-

Long Island Lighting Co.
10 filed 657,713 shares of
which

tion

by

basis of

expire
offered

share.

common stock (par $10),
being offered for subscrip¬
stockholders of record July 1 on the

624,170 shares
common

one

on

to

are

share for each 10 shares

new

July 18.

held; rights to
The remaining 33,543 shares are being
by company.
Price—$20.50 per

employees

Proceeds

—

For

construction

Devoe

&

Raynolds &

of New York

on a share-for-share
stockholders of Ten¬
nessee Products & Chemical Corp. on a lki-for-l basis;
13,453 shares to common stockholders of Newport Steel
i Corp.
on
a
l-for-2.1 basis; 10,899 shares to common
ers

basis;

53,324

Shipbuilding Corp.

shares

to

common

/stockholders of Marion Power Shovel Co.

r

on

a

lV2-for-l

basis; and 548 shares of class B common stockholders of
The Osgood Co. on a l-for-l1/^ basis. Underwriter—None.
Midwestern

United Life

Insurance Co.

filed 75,000 shares of common stock to be of¬
fered for subscription by stockholders' of record June 1
on
a
l-for-4 basis.
Price—$2 per share.
Proceeds—
For capital and surplus.
Office—229 West Berry St.,
May 25

Fort

Wayne, Ind. Underwriter—None. Offering—Tempo¬
rarily delayed.

program.

Millsap Oil & Gas Co., Siloam Springs, Ark. /
17 (letter of notification) 599,200 shares of com¬
stock (par 10 cents).
Price — 50 cents per share

March
mon

common

10

Lifg^Bldg., Dallas, Tex.

of

1% shares for each Devce share;

Proceeds—For oil and gas activities.
Office—518 Main
St., Siloam Springs, Ark. Underwriter—Dewitt Invest¬
ment Co., Wilmington, Del.

Alstyne, Noel & Co., New York.

(par

basis of

(7/18-21)

16

stock

on

6,621 shares to class B common stockholders of Devoe
on lVa-for-l basis; 127,623 shares to common stockhold¬

pany.

of

of

(A. L.) Barge Lines, Inc., JoUet, III.
$837,252 of instalment note certificates be¬
ing offered in exchange for the 3,578 shares of authorized
and issued common stock of Marine Transit Co. at rate
Mechling

common

June

Inca

Weld & Co., New York.

White,

of

block

Co.,

Midland

(7/11-15)
units, each to consist of one share of
$3 cumulative preferred and between one-half and one
share of common stock.
Price — To be supplied by
amendment.
Proceeds—To pay off bank loan which the
company recently secured in connection with its pur¬
chase of approximately 99.5% of the outstanding capital
stock of the Waterman Steamship Corp.
Underwriter-

Oil

the

Marine

McLean Securities Corp.

convertible

offered June

were

three-for-one

a

on

Inc.
4V2% prior

of

June 8 filed 148,000

Underwriter—None.

preferred stock (par $25), which

shares

effective June 28.

Price—$1,001

Industries,

450,000

four

of the stock of Auburn.

a

Proceeds—For purchase of land, construction
of proposed harness racing plant, and
working capital.

6

of

offer, which will expire on July 15, is subject to accept¬
ance by the holders of not less than 80%
(19,200 shares)
Underwriter—None. Statement

com¬

unit.

Office—Versailles, Ky.

N. Y., at;

stock for each
share of Auburn stock held of record July 1, 1955. The

Kentucky Harness Racing Association, Inc.
20 (letter of notification) $280,000 of 6%
10-year

100 shares of stock.

Co., Auburn,

of Auburn Trust

stock

capital
rate

$1,000 debenture and

N. Y.

96,000 shares of common stock (par $1) to>
be offered in exchange for all the issued and outstanding'

Underwriter—Whitney, Cranmer & Schulder, Inc.,

cents).

Bell

Marine Midland Corp., Buffalo,

June

per

Underwriters—Hall-

June 20 filed

Denver, Colo.

of

Proceeds—To reduce

supplied by amendment.
Office—Chicago, 111.

loans.

& Co., New York; and McCormick & Co. and
Straus, Blosser & McDowell, both of Chicago. 111.

common

cumulative income debentures and 28,000 shares of
mon
stork (par one cent) to be offered in units

Circuit, Inc.

garten

St., Reno,

Nev.

be

bank

Uranium

—

Horton Aircraft Corp., Las
Vegas, Nev.
April 26 filed 500,000 shares of common stock (no
par),
of which 400,000 shares are to be
offered for account of

—To

stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Office—206 N. Virginia

stock.

Horseshoe

March 16

filed

28

'

it Maremont Automotive Products, Inc. (7/22) June 30 filed $1,000,000 of convertible sinking fund con¬
vertible subordinated debentures due July 1, 1970. Price -

Pecan

Plantations, Ltd.
shares of ordinary common stock
(par one Israeli pound). Price—$10 per share. Proceeds
—For capital expenditures. Underwriter—None. Offices
—Natanya, Israel, and New York, N. Y.
Feb.

Office—Suite 1003,
Under¬

operations.

1/6,000th of 5/12ths of Magna's per¬
distribution of "Okla-*
Proceeds—To present holders, including Kuhn,

United Artists Theatre

Co., Chicago, 111.; and Fairman & Co., Los Angeles, Calif.
Israel

mining

Loeb & Co.; United California Theatres, Inc.; Harris,
Upham & Co.; Prudential Theatres, Inc.; Carl M. Loeb,
Rhoades & Co.; Brown Brothers Harriman & Co.; and

For machinery

—

3,000,000 shares of com¬
Price—10 cents per share.-

cent).

receive

to

homa."

share-for-share

a

one

centage of profits due from the

,

Interstate

basis.

June

Corp.

28

Hertz

345,534 shares of common stock (par $1)
be offered for subscription by common stockholders

equipment; and for working capital. Underwriters—
Dempsey-Tegeler & Co., St. Louis, Mo.; Cruttenden &

Insurance Co.

(letter of notification) 45,583 shares of common

holders of record June

23

Oil, Inc.

Magna Theatre Corp., New York
^
May 23 filed 122,300 shares of common stock (par five
cents), 6,000 outstanding warrants for the purchase of
439,800 shares of common stock (as well as the common
stock), and 6,000 outstanding units of "Oklahoma" par¬
ticipation
certificates
(each certificate
entitling
the^

selling stock¬

12

Securities

& Co.; Blyth & Co., Inc.; and The
New York.

Continental Bank Bldg.* Salt Lake City, Utah.
writer—Havenor-Cayias. Inc., same city.
4

Fidelity Insurance Co., Dallas, Tex.

Underwriter—Franklin

holders.

(par

Proceeds—For

berger & Co., Philadelphia; and Baruch Brothers & Co.,
Inc., New York.
International

Thursday, July 7, 1955

(letter of notification)

stock

mon

plied by amendment. Proceeds—To purchase Hugh H.
Eby Co. and Wirt Co. Underwriters—Hallowell, Sulz¬

March 30 filed 110,000 shares of common stock

.

First Boston Corp.; all of

Offerman

Price—$5.75

both of New York.
•

Mfg. Co.

(amendment) $1,500,000 of 5% debentures due
1975 and 300,000 shares of common stock (par 50 cents),

Bernard

New York.

Jackson & Curtis and Stone & Webster Securities

Hardware

May 12

equipment, inventory and working capital.
Office—
Huntington Station, L. L, N. Y. Underwriter—S. D. Ful¬
ler & Co.,

Industrial

•

41

.

.

Under¬

it Mitchell Mining Co., Inc., Mount Vernon, Wash.
May 13 (letter of notification) 500,000 shares of common
stock ,(par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box
301, Mount
Vernon, Wash. Underwriter—Standard Securities Corp.,
Spokane, Wash.
Moab King, Inc.
April 4 (letter of notification) 10,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Office—210 Zions Savings
Bank

Building,

Salt

Potter Investment

Lake

Co.,

City, Utah.
city.

same

Underwriter

—

Volume 182

Number 5444

.

.

The Commercial and Financial Chronicle

.

Moab Valley Uranium Co.
May 16 (letter of notification) 2,000,000 shares of
stock.

mon

Price—At

ceeds—For
Salt Lake

Co.,

costs.

City, Utah.

(10 cents
Office—716

Underwriter

per

of record

com-

share).

Monie

Pro¬

Newhouse

—

Bldg.,
Brokerage

Moab

Carlo

Bldg.,

common

mining

Salt

117,877 shares to which
Price—$8 per share. Proceeds—For equip¬
ment, to acquire oil and gas interests, exploration and
possibly drilling costs; and to pay all or a portion of a
$705,000 mortgage note. Office—New Orleans, La. Un¬

com¬

Office

expenses.

706

—

Pro¬

derwriters

Newhouse

Lake

14

(letter of notification) 700,000 shares of com-,
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds^—For mining expenses. Office — 415 Paulsen

Bldg., Spokane, Wash.
same

Underwriter—Pennaluna' & Co.,

city.

?

Old Faithful Uranium, Inc., Casper, Wyo.
April 22 (letter of notification) 4,500,000 shares of com¬
mon stock (par one
cent). Price—Five cents per share.

Proceeds—For

•

-

number of shares of John J. Felin

payment.

Co., inc., plus

a

cash

Underwriter—None.

Mortgage Associates, Inc., Philadelphia, Pa.

June

7 (letter of
notification) 20,000 snares of 60-cent
convertible preferred stock
(par $5) and 20,000 shares
of common stock
(par 10 cents). Price—For preferred',

share; and for common, $2.50

per

share. Proceeds
—For construction loans and
acquisitions. Underwriters
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S. Hope &
Co., Scranton, Pa.
Mountain

„

June

8

Fuel

Lied

per

193,990

of

snares

oi

June

shares
per

23

on

the basis of

held; rights to expire

share.

Proceeds

—

To

capital

stock

(par

one

new

July

on

$10)

record

share for each

18.

10

Price—$25.50

finance expansion

program.

Underwriter—The First Boston Corp., New York.
.

uranium

claims and for., exploration and other
costs.
Underwriter—M, Raymond &
Co., Inc., New York.
Natick

June

13

Chemical

Industries, Inc.

(7/11-12)

(fetter

of notification) 266,000 shares of
com-)
(par one cent). Price—$1 per share. Proceeds
—For working
capital, etc. Office — 780 Worcester St.,'
Natick, Mass. Underwriter—G. F. Rothschild &
Co., Inc.,
noon stock

New York.
;

it Nepfune Uranium Corp.,
Denver, Colo.
June 27 (letter of
notification) 3,000,000 shares of com¬
mon stock
(par five cents), of which 300,000 shares are
behalf

share.

of

Griffith

Uranium

Co.

Price—10 cents

Proceeds—For

mining expenses. Office
Walnut St., Denver 5, Colo. Underwriter—None.

—

New Bristol
Oils., Ltd., Toronto, Canada
April 11 filed 2,400,000 shares of common stock
of which

1,600,000 shares

Oil Ccip.

per

2625

(par $1),

were

As holder of 51% of the
Newton-Conroe stock, PhoenixCampbell will receive about 800,000 shares which it
pro¬
poses tc offer to the
public, together with the 800,000
shares received
directly from New Bristol Oils. Price—
market.

Proceeds—To

selling stockholder. Under¬
writer—None, the distributing stockholders
havip^ un¬
dertaken to market their
holdings directly.
New Haven Water Co.

June 15, 1955 on basis of two
shares held; rights to

shares for each

new

expire

on

repay

bank

Proceeds—To

construction.

None.

seven

July 15. Price—$51
loans

Office—New Haven, Conn.

and

for

per
new

Underwriter—

Newmex Uranium &
Development Corp.
May 2 (letter of notification) 8,000,000 shares of
commoii
stock.

—For

N.

Price—At par

(three cents

per

share).

mining

Proceed^

expenses. Office—El Rancho Hotel, Gallup!
Underwriter
Rocky Mountain Securities, Salj

M.

due

short-term bank loans.

Underwriters

—

Blyth &

Office—Los

Angeles, Calif.
and Hornblower &

Co., Inc.

—

Lake City, Utah.
Northern

Indiana

Public Service Co.
(7/12)
120,000 shares of cumulative preferred
stock (par $100). Price—To be
supplied by amendment
20

filed

Proceeds—For construction
Central Republic Co.
(Inc.),
Inc. and Merrill
of New York.
/

program.

Uranium & Oil Corp.
(letter of notification) 3,000,000 shares of com¬
(par two cents). Price—10 cents per share.
Proceeds
For mining expenses.
Office — 811 Boston
Bldg., Denver, Colo. Underwriter—Amos C. Sudler <&
Co., same city.
stock

—

it Palestine Economic Corp., New York
July 1 filed 50,000 shares of common stock (par $25)
and $2,000,000 of five-year 5%
notes, series 1955. Price
—Of stock, $28 per share; and of notes, at 100% of
prin¬
cipal amount. Proceeds — For further development of

industry;

development of urban

areas; extension of credit;
and
working capital and

and

suburban

financing of exports to Israel;
general corporate purposes.

Underwriter—None, sales to be handled through
pany officials and employees.
it Panama Minerals, Inc., S. A.

com¬

(Republic of

Panama)
June 30 filed

400,000 shares of

stock

(par $1).

share. Proceeds—For mining
Office—Denver, Colo. Underwriter—None.

common

per

Underwriters--

Chicago; and Blyth & Co*
Lynch, Pierce, Fenner & Beane, botl

North port Water Works Co.

and accounts payable and for

new

St., New York, N. Y.

construction.

Office-4-

Underwriter—None.

,1

Oasis Uranium & Oil

June 8
stock

Corp., Fort Worth, Texas 4
(letter of notification) 265,000 shares of common

(par

50 cents).

Price—$1

per

share.

Proceeds—

For uranium and oil
exploration.

Office—Fortune Arms
Underwriter—Standard Securi¬

Bldg., Fort Worth, Tex.
ties, Inc., Salt Lake City, Utah./
•

Ocean

Drilling & Exploration Co. (7/14)

June 23 filed 225,666 shares of common stock
(par $1)
to be offered for
subscription by common stockholders




Powder River Pipeline,

Inc., Billings, Mont.
May 31 (letter of notification) $300,000 of 5V2% 10-year
debentures. Price—At par (in denominations of $1,000
each). Proceeds—For expenses incident to oil and gas,
activities. Underwriter—The First Trust Co. of Lincoln,
Neb. Office—Fratt Bldg., Billings, Mont.
•
Primary Minerals Corp.
May 24 filed 1,400,000. shares of common stock (par one.
cent). Price—50 cents per share. Proceeds—For acquisi¬
tion of mining equipment and other mining expenses.

Office
San Francisco, Calif.
Underwriter — General
Investing Corp., New York. Statement to be amended.
—

it Produce Materials Cooperative Association, Inc.
June 23 (letter of notification) 250 shares of capital stock
and 250 memberships.
Price—At par ($100 per share)*
Proceeds—For working capital, etc. Address—Box 683,

Underwriter—None.

Salinas, Calif.

Pyramid Electric Co.
May 3 filed 50,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — To
selling stockholders. Underwriter

—

S. D. Fuller & Co.,

New York.

it Quinby & Co., Inc.
July 1 filed $1,000,000 of Quinby Plans for Accumulation
of Common Stock of American Telephone & Telegraph
Proceeds—For investment.

Rand

of

&

McNally

Skokie,

Co.,

III.

(letter of notification) not to exceed 3,045 shares
stock (par $10) to be offered for subscription

June 9

common

by stockholders. Price—$16
general corporate purposes.
Ave., Skokie, 111.
Oil

Rebel

&

per share.
Proceeds—For
Office—8255 Central Park

Underwriter—None.
Uranium

Co.,

Denver, Colo.

(letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For
mining operations.
Office—636 South

May 27

Underwriter—Lester Gould &

Broadway, Denver, Colo.
Co., Inc., same city.

Inc., Cincinnati, Ohio
$1,000,000 of 5^% cumulative convertible
25,000 shares of common

Revere Realty,
March 8 filed

debentures due Jan. 1, 1980 and

Price—Par for debentures and $100 per
Proceeds — To purchase real estate or
Interest therein. Underwriter—Stanley Cooper Co., Inc.,
Btock (no par).

share for stock.

Cincinnati, O.
Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of common
stock (par five cents). Price—At market (total not to
exceed $150,000). Proceeds—For working capital. Office
—Walker Bank Bldg., Salt Lake City, Utah. Underwriter

No general offer planned.

—Whitney & Co., same city.

Saint Anne's Oil Production Co.

(letter of notification)

20,000 shares of common

June 6 filed 6,492,164 shares of common stock (par $5)
to be offered in exchange as follows: 578,739 shares for

(par $1) to be first offered to stockholders. Price
—$6.25 per share. Proceeds — For oil and mineral and
related activities. Office—Northwood, Iowa. Underwriter

stock of

—None.

Sentry Royalty Co.

on a

shares of stock of Power Coal

stock

147-for-l basis; 216,000

Co.

on

an

18-for-l

3,565,000 shares for stock of Homestead Coal
713-for-l
Co.

on

Coal

44-for-l

a

co.

Co.

basis;
on

a

basis; 794,200 shares for stock of Sinclair Coal
on

basis; 611,064 shares for stock of Key

54-for-l

a

Broken Aro Coal Co.
for

stock

of

Alston

basis; 546,000 shares for stock of

on

60-for-l

a

Coal

Co.

on

a

basis; 100,000 shares
10-for-l

basis^and

81,161

shares for all of the properties of Sinclair Mines,
(other than shares of any of the above seven com¬

Inc.

panies owned by the Sinclair firm.
conditioned

the

upon

acceptance

The exchange offer

of

the

offer by

at

least 80% of the total number of shares of each
company
to be acquired.
Underwriters—None.

St.

Regis Paper Co.,

June 28 filed 329,327 shares

offered

be

Corp., Salt Lake City, Utah^
May 25 (letter of notification) 300,000 shares of common
stock (par five cents). Price—10 cents per share. Pro¬
ceeds— For
mining expenses.
Office — 688 East 21st
South, Salt Lake City, Utah.
Underwriter — TransWestern Brokerage Co., New
Orleans, La., and Salt
Lake City, Utah.
Permian Basin Uranium Corp.
June 2 (letter of notification) 640,000 shares of common
stock.
Price—At par (10 cents per share). Proceeds—

mining costs. Office—613 Simms Building, Albu¬
querque,
N. Mex.
Underwriter-—Western Securities
Corp., Salt Lake City, Utah.

Petrolane Gas Service, Inc. (7/15)
June 24 filed 61,302 shares of common stock (par $2).
Price—To be supplied by amendment.
Proceeds — For

working capital.

Office—Signal Hill, Calif. Underwrit¬
ers—Bateman, Eichler & Co., First California Co., Inc.
William

R.

Staats &

Pictograph Mining & Uranium Co., Inc. (8/8)
June 15 filed 2,400,000 shares of common stock (par one
Price—25

ploration

and

equipment and

cents

mining

per

share.

operations

additional

claims

Proceeds—For
and

or

ex¬

for

purchase of
leases when justi¬

fied.
&

Office—Edgemont, S. D. Underwriters—Shaiman
Co., Denver, Colo.; and J. H. Lederer Co. and McGrath

Securities

Corp., both of New York City.

Pioneer Mortgage & Development Corp.
April 27 filed 300,000 shares of common stock (par $1)
with warrants attached entitling the holder to purchase
one additional
share at prices ranging from $13 to $20
depending upon the exercise date. Price—$10 per share

"as

a

speculation."

Proceeds—For working canital

general corporate purposes.
derwriter—N one.

exchange

one

on

General share.

New York
of common stock (par $5) to

for

stock

common

of General

basis of 2% shares of St. Regis for
Offer is conditioned upon St. Regis

Underwriter

obtaining 80% of outstanding General stock.
—None.
San Juan Uranium Corp.

(letter of notification) 89,850

June 23

stock

(par one

underwriters.

shares of common

cent), represented by options issued to
Price—50 cents per share. Proceeds—To

— Fidelity Bldg.,
Oklahoma
Underwriters—Moran & Co., Newark, N. J.
Wewoka, Okla.; and through com¬

selling stockholder. Office
and

E. W. Whitney,

pany.

Fe Uranium & Oil

Santa

Co., Inc.

(letter of notification) 2,959,500 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds—For mining operations. Office—416 Indepen¬
May 26
mon

stock

dence

Bldg., Colorado Springs, Colo.

lumbia Securities Co., Denver,
Uranium

Saxon

Mines

Underwriter—Co¬

Colo.

Ltd., Toronto, Canada

April 29 filed 1,500,000 shares of common stock (par $1).
Price—40 cents per share.
Proceeds—For exploration
and

working capital; also to repay advances and other
Underwriter — Degaetano Securities Corp.,

liabilities.

New York.

Uranium

Shoni

Corp.,

Riverton, Wyo.

(letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds
For mining expenses. Address — Box 489,

April 21

—

Co., all of Los Angeles, Calif.

•

cent).

in

Container Corp.

City, Okla.
Pelican Uranium

and

(letter of notification) 4,438 shares of common
stock (no par) to be offered for
subscription by stock*holders on the basis of one share for each
3V2 shares
held (with an
oversubscription privilege). Price—To bfe
supplied bv amendment. Proceeds—To repay bank loans

Underwriter—None.

expansion and working capital.

expenses.

Price—$1.25

June 23

50 Church

payment of current notes, timber bond of Montana, plant

June 6

mon

For

June

★ Poison Plywood Co., Inc., Poison, Mont.
May 12 (letter of notification.) 100,000 shares of capital
Price—At par ($1 per share).
Proceeds — For

Co.

it Pacific Northwest Mining Co., Bremerton, Wash.
May 2 (letter of notification) 200,000 shares of common
stock (par five cents). Price—20 cents
per share. Pro¬
ceeds—For mining expenses.
Office—415 S. Cambrian
Ave., Bremerton, Wash. Underwriter—None.

is

May 17 filed 40,000 shares of capital stock (par $50) be¬
ing oifered for subscription by stockholders of record

share.

Corp. (7/19)
$20,000,000 of 3V2% debentures due 1985.
Price—To be supplied by amendment. Proceeds—To re-

43'»

stock.

May 9

issued to Newton-Conroe
shares to The Phoenix-Campbell

and 800,000

Corp., New York.

Pacific Finance

June 28 filed

Peabody Coal Co., Chicago, III.

Corp., in exchange for properties. Newton-Conroe is dis¬
tributing its stock to its stockholders in a liquidation.

At

—The First Boston

Israel

National Credit
Corp., Phoenix, Ariz.
May 6 filed 300,000 shares of common stock
(par $1).
Price—$3 per share.
Proceeds—For working capital.
Underwriter—None.

on

(7/8-11)

100,000 shares of common stock (par $5)
to be offered for subscription
by stockholders of record
July 7 on the basis of one new share for each share
held; rights to expire on Aug. 8. Price—To be supplied
by amendment. Proceeds—To diversify and increase its
premium volume. Office—Greensburg, Pa. Underwriter

Pacific

Mufti-Minerals Corp., Salt Lake
City, Utah
May 5 filed 1,500,000 shares of common stock (par one
cent).
Price—$1 per share. Proceeds—For payment on.

•

Old Republic Insurance Co.

June 10 filed

Weeks.

Supply Co.

being oilered for subscription by stockholders of
as

mining expenses.
Office—300 Consoli¬
Royalty Bldg., Casper, Wyo. Underwriter—E. L.
Co., New York.

dated

Aaron &

v
Momell (John) &
Co., Ottumwa, Iowa
■'
March 31 (letter of notification)
16,000 shares of capital
stock
(no par) to be offered in exchange for a like

$10

Stanley & Co. (New York) and
(St. Louis, Mo.) on a best-efforts

basis.

Morning Sun Uranium, Inc., Spokane, Wash.

June

Morgan

—

Reinholdt & Gardner

City, Utah. ...Underwriter—Mid-Con¬
Securities, Inc., same city.

tinent

shares outstanding, intends to exercise rights to

purchase at least 104,230 of the

Uranium Mines, Inc.

(letter of notification) 6,000,000 shares of
Price—At par (five cents per
snare).

ceeds—For

shares

it is entitled.

stock.

mon

July 14 on the basis of two new shares for each
held; rights to expire on July 28. Murphy
Corp., which owns 530,450 shares (52%) of the 1,015,500
nine

>

city.

same

June 6

mining

par

(103)

Office—Houston, Tex.

and

Un¬

Riverton,

Wyo.

Underwriter

—

Melvin F.

Schroeder,

Denver, Colo.
Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining expenses.
Office — 6 Kirby St.,

June 20

Moab, Utah.
ver, Colo.
Siboney

Underwriter—Skyline Securities Inc., Den¬
Development &

Exploration Co., Tulsa,

Okla.

of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For geological and geophysical surveys and for drilling
of
exploratory wells.
Underwriter—Dempsey-Tegeler
& Co., St. Louis, Mo.
June

27

filed 2,000,000 shares

Continued

on

page

44

44

(104)

The Commercial and Financial
Chronicle

Continued

from

page

Texas Eastern Transmission
Corp. (7/13)
21
filed 160,000 shares of cumulative preferred

43

•

stock

(par $100). Price—To be supplied by amendment.
Proceeds—To repay borrowings made in connection with

Siegler Corp., Centralia, III. (7/14)
June 20 filed 225,000 shares of common stock (par $1).
price—To be supplied by amendment. Proceeds—To re¬
pay current indebtedness and for general corporate pur¬
poses.
Underwriter—William R. Staats & Co., Los An¬
geles, Calif.
Silvaire
June

17

Aircraft

(par

Proceeds—For

Texas

com¬

Office—Fort Collins,
Kirchner & Jaquith, Inc.,

Colo.
Underwriter—Carroll,
Denver, Colo.

Western Oil &

Uranium

mining

National Bldg.,

Denver, Colo.

ter &

407

—

Co.,

same

value

amendment.

at

which

time

the
is

ever

their

of

lower.

first

Purpose

sale
To

—

$1

or

increase

Feb.

share,

per

facilities

properties; and for work¬
ing capital.
Office—San Francisco, Calif. Underwriter
—Norman R. Whittall,
Ltd., Vancouver, B. C., Canada.
June

27

Colorado

filed

20,000

shares

ferred stock (par $50).
ment.

Power

Proceeds—For

Co.

of

writer

•

(7/27)

4.72%

cumulative

stock

mon

one

cent).

Price—10

cents

per

June 9 (letter of
stock.
For

Gas

Co.

Price—$1
for

to

per

Texas.

oil

share.

and

gas

Proceeds—To repay bank loan, and
other

Office

Angelo,
Co., Inc., New

&

mining operations.

mon

Hotel, Inc., Las Vegas, Nev.
filed

stock

(as

(par

cent).

3,750,000 shares of
Price—$2.50 per share.

working capital.

com¬

Pro¬

Un¬

Co., Inc., New York; and
Coombs & Co. of Las
Vegas, Inc., Las Vegas, Nev.
Sunshine Park

Racing Association, Inc. (Fla.)
Nov. 18 filed $700,000 of
6% convertible sinking fund
debentures due 1966 and
70,000 shares of common stock
(par 10 cents). Price —
100% and accrued interest for
debentures and $2 per share for
stock.
Proceeds—To
repay bank loans, for new
construction and for
working
capital.
Underwriter—Gulf-Atlantic, Inc., Tampa, Fla.
Super-Seal Piston Ring
Corp., Brownwood, Tex.
(letter of notification)
575,000 shares of common

June 3
stock

Belle
,

Great

(par 10 cents). Price—50 cents
per share. Proceeds
machinery and working capital.
Office—1812
Plain

Ave.,

Southwest

Brownwood,
Securities

Underwriter—

of

notification) 6,000,000 shares of com¬
stock (par one
cent). Price—Five cents
per share.
Proceeds—For mining operations.
Office—1890 S. Peari
St., Denver, Colo. Underwriter
Carroll, Kirchner &
Jaquith, Inc., same city.
—

TelAutograph Corp., Los Angeles, Calif.

(7/27)

July 1 filed $2,396,500 of convertible
subordinated de¬
bentures due July
15, 1965, to be offered for
subscription
by common stockholders of record
July 27, 1955 on the
basis of $500 of
debentures for each 50 shares of stock
held. Price—To be
supplied by amendment. Proceeds—
To retire
outstanding loans from Commercial Credit
Corp.; to purchase additional stock of
Nuclear Consult¬
ants, Inc.; for expansion of present
merchandising activ¬
ities; and for general corporate
purposes.
Underwriter
—None.

^-Tel-Instrument Electronics
Corp.
notification) 199,999 shares of common
cents). Price—$1.50 per share. Proceeds—

•June 20 (letter of
stock (par 10
For

acquisitions and working capital.
Office—728 Gar¬
den St.,
Carlstadt, N. J. Underwriter—Batkin & Co., New
York, N. Y.

Tennessee Life & Service
Insurance Society
June 20 (letter of
notification) 9,200 shares of common
stock (par $5) to be
offered for
subscription by stock¬
holders.
Price—$30 per share. Proceeds—To increase
working capital for agency expansion.
.

Office

-^Magnolia Ave., Knoxville, Tenn.




Box

April 1

•

mining expenses. Office—32
City, Utah. Underwriter
Investment Co., Tulsa, Okla.

States

Washington Plywood Co., Inc., Lowell, Wash.

Lake

construction

U-Kan

five

—

1409

Underwriter—None.

Inc., Hollywood, Calif.

in

com¬

penses.

U.

and

development

stock

June 28

stock

mon

Proceeds

(par

one

S.

cent).

Price—25~cents

per

share.

For equipment,
drilling costs, and working
Business—To explore, develop and operate ura¬
nium mining properties. Underwriter—None.
—

Utah Southern Uranium

Co., Las Vegas, Nev.
(letter of notification) 3,000,000 shares of capital
Price—At par (10 cents per share).
Proceeds—
mining expenses. Office—210 N. Third St., Las

June 6
stock.

For

about Aug. 8.
Proceeds—For

expenses.

Office—1030

Salt Lake City, Utah.
Co., Inc., Denver, Colo.

South

Sixth

Underwriter—J.

W.

Wicker-Baldwin Uranium Mining Co.
May 26 (letter of notification) 900,000 shares of common
stock.
Price—At par (25 cents per share).
Proceeds—
For mining expenses. Office—616 Sixth St., Rapid
City,
D.

Underwriter—Driscoll-Hanson, Inc.,

Wilma

com¬

capital.

mining

St.,

Hicks &

,

Corp., Stockton, N. J.
(letter of notification) 1,000,000 shares of

or

Horse Uranium, Inc., Salt Lake
City, Utah
(letter of notification) 2,900,000 shares of capital
(par 2Vz cents). Price—10 cents per share. Pro¬

ceeds—For

ex¬

USeven

on

amendment.

June 9

West

Underwriter—None.

by

White

Proceeds—For

multiple thereof. Proceeds—75%
S. Savings bonds and the balance

and exploration

supplied

^ White Castle Uranium Co., Boise, Idaho
(letter of notification) 22,500,000 shares of capi¬
Price—At par (one cent per share). Proceeds
—For mining operations.
Office—6515 Fairview Ave.,
Boise, Idaho. Underwriter—None.

June 13 filed $600,000 of Grubstake Loans to
be offered
in amounts of $25 or
invested

held; rights to expire
be

tal stock.

Properties, Ltd., Virginia City, Nev.

equipment

shares

June 24

—

be

Union

filed

program.
Underwriters — Kuhn, Loeb &
Co.; Lehman Brothers; Clark, Dodge & Co.; and Salo¬
mon Bros. & Hutzler, all of New
Yor£ City.

mining operations. Address
Box 709,
Wallace, Ida.
Underwriter—Wallace Brokerage Co., same
city.

to

30

construction

Uranium

for

Under¬

filed

Price—To

purchase of
property, construction of hotel, athletic and health facil¬
ities, and working capital. Underwriter—None, but sales
will be made through agents.

Uranium

and to repay bank loans.

Telegraph Co. (7/25)
1,041,393 shares of common stock (par
$2.50) to be offered for subscription by stockholders of
record July 22 on the basis of one new share for each

March 1 filed 30,000 shares of
preferred stock (par $50)
and 100,000 shares of common stock
(par $10) to be
offered in units of three
preferred and 10 common
shares. Price—$400 per unit. Proceeds—For

share.

(7/19)

Hills

^ Western

—

per

31

June

—

cents

Telephone Co.

Nebraska Oil & Uranium Co., Inc.
(7/25-29)
April 4 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For exploration and development costs
and working
capital. Office—924 Broadway, Denver, Colo. Under¬
writer—Israel & Co., New York.

Uranium & Oil Co., Salt Lake
City, Utah
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office
Judge Bldg., Salt Lake
City, Utah. Underwriter
Northern Securities, Inc.,
Seattle, Wash.

10

(par $5,000).

Western

mining costs. Office—406 Judge Build¬
ing, Salt Lake City, Utah. Underwriter—Empire Secu¬
rities Corp., Las Vegas, Nev.

—

stock

Price—$5

Proceeds—For

Price

common

Inn, Fort Worth, Texas
200,000 shares of capital stock (no par).
per share.
Proceeds—Together with other
funds, to construct, furnish and equip hotel to be built
between Dallas and Fort Worth, Texas. Underwriter—
Schwanz & Co., Inc., Aurora, 111.
Jan.

Uranium Corp., Salt Lake
City, Utah
(letter of notification) 5,000,000 shares of com¬
stock (par one
cent). Price—Five cents per share.

stock.

shares of

program

Western

Western

Prince Mining Co.,
Wallace, Ida.
April 18 (letter of notification) 1,750,000 shares of

296

writer—Blyth & Co., Inc., San Francisco and New York.

Ucon

mon

filed

West Coast

Exchange

—

13

June 27 filed 150,000 shares of common stock (par
$10).
Price—To be supplied by amendment. Proceeds — For

June 2
mon

stock

Proceeds—To purchase plywood mill of Walton Plywood
Co., Inc., etc. Underwriter—Albert Walter Braedt.

For

Salt

Washington Natural Gas Co.

June

Jay Uranium Co., Salt Lake City, Utah
May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Place,

New York

retire indebtedness and for working capital. Under¬
writer—Barrett Herrick & Co., Inc., New York.

Corp.

Proceeds—For

Associates,

To

456, Fallon,

mining operation^. Office — 130 Social
Hall Avenue, Salt Lake City, Utah. Underwriter—Melvin G. Flegal & Co., same city.
—

Hotel

(7/11-12)
(letter of notification) 238,632 shares of com¬
(par one cent), of which 192,011 shares are
for account of company and
46,621 shares for account of
selling stockholder,, Price—$1.25 per share. Proceeds—•

(letter of notification) 2,000,000 shares of com¬
(par 2V2 cents). Price—10 cents per share.

Proceeds

Underwriter—Skyline Secu¬

May 24

stock

mon

operations.

writer—None.

County, Nev. Underwriter—H. P. Pratt & Co.,
Uranium

as

&

—

Seattle, Wash.
Turner

*

Proceeds
To pay part of purchase price of Warwick
Hotel, Philadelphia, Pa., and related expenses. Under-1

common

Lewellen-Bybee Co.,

O.

mining

Warwick

mon

P.

J.

June 22 filed $4,250,000 of participations in
partnership
interest in Associates in minimum amount of $10,000.

,

Union Club,

Denver, Colo.

mon

•

—

I.

mining expenses. Underwriter—Moab Bro¬
kerage Co. and National Securities, Inc., 368 South State
St., Salt Lake City, Utah.

Co.

Tasha Oil & Uranium
Co.,

May 11 (letter

Texas.

Churchill

Address

—

ceeds—For

(50 cents per share). Proceeds—
Office — 506 Judge Bldg., Salt
—

Underwriter

Name Change—The company "
San Miguel Uranium, Inc.

Wabash Uranium Corp., Moab, Utah
June 10 (letter of notification) 10,000,000 shares of
capi¬
tal stock. Price—At par (three cents per
share). Pro¬

Two

amended)

one

ceeds—To construct hotel and for
derwriters— Golden-Dersch &

--For

par

Uranium

—For

June 8

San

working capital. Office—76 West Sixth .South
St.,
Salt Lake City, Utah.
Underwriter—Harrison S. brothers
& Co., same
city.
16

Price—At

expenses.

rities Inc., Denver, Colo.

Bldg., Albu¬

Tungsten, Mountain Mining Co., Fallon, Nev.
(letter of notification) 149,800 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For

activities inci¬

—

For

Feb.

Simms

Underwriter—Hicks, Newton & Co., Inc.,

City, Utah. Underwriter
Washington, D. C.

>

Sun

N. M.

Lake

stock (par 100).

Strevell-Paterson Finance Co.
June 16 (letter of
notification) 352,000 shares of common
stock
(par 50 cents) to be offered for
subscription by
stockholders at 70 cents per
share; unsubscribed shares
to be
publicly offered at $85 per 100 shares. Proceeds—

•

Office—915

expenses.

mining

Drilling Co., Monticello, Utah
June 20 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds

For mining operations.

Underwriter—Barrett Herrick

York.

stock.

common

operations.

mining

For

—

formerly known

Vas

notification) 3,000,000 shares of common
par (10 cents per share).
Proceeds—

Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of

Otis, Inc. and F. H.

development of properties and

dent

was

cents). Price—To be supplied by amendment. Proceeds
—To
acquire part of properties presently subject to
option in favor of company, and for expenses incident
to mining and oil activities.
Underwriter—Garrett Bro¬
thers, Inc., Dallas, Tex.

(7/8)

March 14 filed 750,000 shares of

Proceeds

Schenin & Co., New York.

^-Trans-National Uranium & Oil Corp., Dallas, Tex.
1 filed 2,000,000 shares of common stock (par 20

Crerie & Co., Inc., both of New
York.
&

expan¬

July

pur¬

Stewart Oil

for

and

Uranium, Inc., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of com- ■
(par one cent). Price — 10 cents per
share.;

stock

mon

Denver, Colo.

Stancan

•

Price—At

querque,

com¬

share.

Uranium Corp., Toronto, Canada
April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Price—To be
supplied by amendment. Proceeds—For exploration and
development expenses and for general corporate
&

note,

Vanura

Uranium Corp., Albuquerque,
New Mexico

mining expenses. Office—704 Equitable
Bldg., Denver, Colo. Underwriter—Daggett Securities,
Inc., Newark, N. J.

Underwriters—Gearhart

retire

filed

June 16

Thunderbird

Proceeds—For

poses.

Proceeds-^-To

18

New York.

and

purposes,

(par

Fla.,

working capital. Office—Murrysville, Pa. Un¬
derwriter—Hulme, Applcgate & Humphrey, Inc., Pitts¬
burgh, Pa.

future

Sovereign Uranium Gas & Oil Co.
May 13 (letter of notification) 3,000,000 shares of

Co., Pjalm Beach,
20, 1955.

Jan.

filed

amendment.

and for operating capital and
expansion.
Office—West Memphis,
Underwriter—General Investing Corp., New York.
for

reserve

22

sion

Racing Corp. (7/11)
June 10 filed
1,250,000 shares of common stock (par
10 cents). Price—$1
per share. Proceeds—For construc¬

Ark.

oh

Markets, Inc. (7/14)
$2,000,000 of sinking fund subordinated
debentures, series A (convertible on or before June 30,
1962), due July 1, 1975. Price — To be supplied by

Southland

tion and related

Cook

Thorofare

June

pre¬

Price—To be supplied by amend¬
payment of bank loans.
Under¬

writer—Stone & Webster Securities Corp.,
Paine, Web¬
ber, Jackson & Curtis, and six other firms.
•

Emerson

underwriters

as

Vanadium Queen

Uranium Corp. (7/8)
550,000 shares of capital stock ( par 10
cents), of which 70,000 shares are for the account of sell¬
ing stockholders and 480,000 shares for the company'3
account
(each share being accompanied by a warrant
to purchase one-half share before Jan.
3, 1957. Price—
$2.50 per share. Proceeds—To repay notes and for ex¬
ploration and development expenses. Office — Grand
Junction, Colo. Underwriter—Van Alstyne, Noel & Co.,

near Orange, Tex., for the purpose of
insulation building products.
Under¬

None.

—

withdrew,

Co.,

April

1966. Price—To be supplied by
Proceds—To construct and operate a manu¬

manufacturing

Worth, Texas.

•

1, 1962 to Aug. 1,

facturing plant

end invest in other quicksilver

Southern

filed

stock.

Fort

$1,500,000 of 6% series A debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from

17

com¬

notification) 300,000 shares of com¬
Price—At par ($1 per share). Proceeds—To
manufacture, process, rebulid and market television pic¬
tures tubes, etc. Underwriter — Zone Investments

Texboard, Inc., Dallas, Texas

Jan.

same

Vactron Corp.
13 (letter of

mon

Underwriter—Floyd Kos-

Quicksilver Mines, Inc.
April 27 filed 800,000 shares of capital stock (par 10
cents), of which 80,000 shares are to be initially offered
•to public. Price—To be fixed on the basis of the market

LaFortune,

May

Denver

address.

•

Sonoma

Co., Denver, Colo.

Office

expenses.

L.

share). Proceeds
mining expenses. Office—737 Peyton Bldg., Spo¬
kane 1, Wash.
Underwriter—None, but S. Everett Salter,
Secretary-Treasurer, will handle sales.

(letter of notification) 5,960,000 shares of com¬
(par one cent). Price—Five cents per share.

Proceeds—For

operations.

mining

15

Underwriter—Lester

For

stock

mon

Thursday, July 7, 1955

.

A U. & W. Uranium, Inc., Spokane, Wash.
shares of

a

—Dillon, Read & Co. Inc., New York.
June

Nev.

.

June 21 (letter of
notification) 12,000,000
mon stock.
Price—At par (one cent per

portion of the Little Big Inch pipeline
to the transportation of
petroleum products. Underwriter

Price —10 cents per share).

cent).

one

reconversion of

Co.

3,000,000 shares of

(letter of notification)

stock

mon

Uranium

&

Vegas,
city.

June

.

May 31

same

city.

K.

Uranium Mining Corp.
(letter of notification) 9,990,000

shares of com¬
Price—Two cents per share.
Proceeds—For mining expenses.
Office—Grand Junc¬
tion, Colo. Underwriter—Columbia Securities Co., Inc.,

mon

stock

(par

one

cent).

Denver, Colo.
•

Wright Line, Inc., Worcester, Mass. (7/8-12)'
17 filed 110,000 shares of class B common stock
(par $1), of which 50,000 shares are to be offered for the
.

June

Volume

Number

182

5444

.

.

The Commercial and Financial Chronicle

.

(105)
company

and 50,000 shares by certain selling stockhold¬
be supplied by amendment.
Proceeds—

Price—To

ers.

To finance

additions

to

factory building and for work¬

ing capital and general corporate purposes.

Webber, Jackson

—Paine,

&

Curtis,

Underwriter

Boston

and

New

York.

Wyco Uranium, Inc., Salt Lake City, Utah
April 7 (letter of notification) 2,900,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per share.
Proceeds—For mining expenses. Office—429 Ness
Bldg.,
Salt Lake City, Utah. Underwriter — Rocky Mountain
•Wyoming Uranium Corp., Salt Lake City, Utah
April 22 (letter of notification) 833,333 shares of com¬
stock (par one cent).
Price—3Vz cents per share.
Proceeds—For mining expenses. Office—522 Felt
Bldg.,
Salt Lake City, Utah.
Underwriter—James E. Reed &

mon

Co., Salt Lake City, Utah; and Coombs & Co., of Wash¬
ington, D. C.
York

County Gas Co., York, Pa. y
(letter of notification) 5,571 shares of common
stock (par $20) to be offered for subscription by stock¬
holders.
Price—$45 per share.
Proceeds—To pay off

June

3

bank

Office

loans.

127

—

West

Market

St., York, Pa.

Underwriter—N one.
-

tal stock.

Price—At par

—For

10,000,000 shares of capi¬
(two cents per share). Proceeds
activities. Address—P. O. Box

mining and oil
348, Newcastle, Wyo. Underwriter—Empire
Corp., Salt Lake City, Utah.

Securities

June

it

14

^

April 20 stockholders

a

debentures.

Probable

bidders:

Halsey, Stuart & Co.
Stanley & Co.; The First Boston Corp.

approved
convertible

new

issue of

not to

When

is¬

Power

&

Light Co.

May 27 it

was reported company plans to issue and sell
80,000 shares of cumulative preferred stock (par
$100). Proceeds—To repay bank loans and for new con¬

Underwriter—To

be

determined

by competi¬
tive bidding. Probable bidders: Lehman
Brothers; Blyth
& Co., Inc. and Smith, Barney & Co. J jointly); Equitable
Securities Corp. and Union Securities Corp.
(jointly);
White, Weld & Co. Bids—Probably late in October.
Blackhawk

Fire

&

Casualty Insurance Co.
April 5 it was reported company plans to issue and sell
200,000 shares of common stock. Price—Expected at $5
per share. Proceeds—To acquire Blackhawk Mutual In¬
Co., Rockford, 111.
Underwriter
& Co., Inc., Chicago, 111.

surance

Krensky
Bliss

—

Arthur

M.

(E.

W.) Co.
April 26 stockholders increased the authorized

common

stock

(par $1) from 1,000,000 shares to 1,500,000 shares.
Underwriter—Previous financing was handled by Allen

&

Co., New York.
California Electric Power Co.

June 7 it

was announced permanent
financing had been
postponed to fourth quarter of 1955. Proceeds—To retire
bank loans (estimated at $10,000,000). Underwriter—To
fee determined by competitive
bidding. (1) For bonds,

probable bidders

may be Halsey, Stuart & Co. Inc.; Blair
Co., Incorporated; White, Weld & Co.; Blyth & Co.,
Inc.
(2) For any common stock, bidders may include:
Carl M. Loeb, Rhoades & Co. and Bear, Stearns & Co.
(jointly); Kidder, Peabody & Co.; Lehman Brothers;

Lynch, Pierce, Fenner & Beane.

Continental Aviation &
June

13

it

reported

was

29

it

was

stockholders

announced

Bank

to

offer

its

to

for 72,500 additional

(par $5), with

a

13-day standby.

Underwriter—Price & Co., Inc., Camden, N. J. Meeting
—Stockholders on July 29 will vote on approving financ¬

ing and merger with Bank of Oaklyn National Bank.
Cavendish

sale

it

19
of

a

Uranium

was

debenture

Proceeds—For

Mines

announced
issue

plans

issue

million

and

dollars.

concentrating mill, mining equipment
Underwriter—James
Anthony Securities Corp., New York.
a

not to exceed

Central Maine

Power Co.

31, W. F. Wyman, President, stated that company
plans to issue and sell some additional common stock,
par $10 (probably to stockholders) in the latter part of
1955.

Proceeds—For construction

program.

Underwriter

—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin &
Burr, Inc.
(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.
and Kidder, Peabody & Co. (jointly).
Meeting—Stock¬
holders on May 11 voted to increase the authorized
common

stock

from

3,250,000

to

3,500,000 shares.

Of¬

fering—Probably in September.
^Chesapeake & Ohio Ry.
Bids

are

plans

company

sale

(7/19)

expected to be received

date

thereof.

up

-

to

noon

(EDT)

on

&

Co.

and

Chicago, Milwaukee, St. Paul & Pacific RR.
May 10 it was announced stockholders will vote July
13 on approving the creation of an issue of
$60,000,000
5% income debentures, series A, to be offered in ex¬
change for outstanding preferred stock, series A, about
An*?. 1 on a par for par
basis; offer to expire on Sept. 1,
i

tumn

of

additional

this year.

Washington, D. C.

convertible

debentures

Offi«e

the

to

Au¬

726

Jackson Place, N. W.r
Business—Industrial merchant bank¬
—

ers.

•

J

International Oil & Metals
Corp., Seattle, Wash*
May 23 it was reported company may do some
financing
some time in the future.
William D. Bost of Whitcomb
&

Co., New York, is Chairman of the Board.

authorized

creation

of

Brothers, both of

proposal

(par

$1)

to

increase

from

500,000
financing
Underwriter—Hirsch & Co., New York.

shares to 1,000,000 shares to
provide for future
and expansion.

A Denver
June 30

National

it

was

Bank,

Denver,
that

announced

&

ing and 25% stock dividend.
stockholders

about

$60,000,000

without

proposal

a

convertible

debentures

authorizing

debentures.

was

made

to

Previous
stockhold¬

underwriting.

Doman

Helicopters, Inc.
Donald S. B. Waters,
President, announced

Feb. 17

Sherman &

common

is planned
Under¬

shares.

Co., New York, and Garrett

Co., Dallas, Tex.; and others.

reported company plans to sell $5,000,009
Proceeds—For construction program.
Underwriter—To be determined by competitive
was

of preferred stock.

bidding.
Corp.; Merrill Lynch,
Pierce, Fenner & Beane and White, Weld & Co. (joint¬
ly); Glore, Forgan & Co. Offering — Expected before
July 1.
Probable bidders: The First Boston

date to

offer additional

stock¬

holders voted to

shares for sale

offering of 16,666 shares of
made

to

residents

of

common

Georgia

nationally.

stock

only

at

was

$3

An

recently
share.

per

Office—517 Stephens St., S.W.,
Atlanta, Ga.

June
file

9

Developments, Inc., Cleveland, Ohio

it

announced

was

registration

a

that

company plans soon to
with the SEC covering a

statement

proposed issue of 600,000 shares of
ceeds—For

general

corporate

common

stock.

Pro¬

Underwriter—

purposes.

George A. Searight, New York, will head group.

Long Island Lighting Co.
23

it

issue

approved

of

offer of convertible

(Texas)

reported early registration

April

Detroit Edison Co.

2

was

D.

Lithium

plans to offer

right to subscribe for 50,000 addi¬
shares of capital stock (par $10) on the basis of
one new share for each four
shares held. Price—$30 per
share. Proceeds—To increase
capital and surplus. Meet¬
ing—Stockholders to vote July 28 on
approving financ¬

ers

writers—L.

Colo.

company

to its stockholders the

May

it

Jan. 27 it
a

stock

common

30

undertermined number of

an

Keystone Wholesale Hardware Co., Atlanta, Gc.
was stated that the
company plans at a later

Daitch Crystal
Dairies* Inc.
April 28 stockholders approved
the

Isthmus Sulphur Co.
March

Feb. 21 it

approved

Lehman

of

$15,000,000

announced

was

first

company

mortgage

plans

to

sell

an

bonds,

series H,
due 1985.
Proceeds—For construction program. Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders—Halsey, Stuart & Co.
Inc.; The First Bos¬
ton Corp. and Blyth &
Co., Inc. (jointly); W. C. Langley
& Co.; Smith, Barney &
Co.; Baxter, Williams & Co»
Offering—Expected late in 1955.

increase authorized capital stock from
1,000,000 shares to 3,000,000 shares in anticipation of
expansion of the company's activities.
Underwriter—

Lucky Stores, Inc.
April 20 stockholders approved

Previous financing handled
by Greene & Co., New York.
Florida Power Corp.

shares to 2,000,000 shares (there

April 14 it

announced

was

company may issue and sell
and $12,000,000 of first mortgage
bonds. Underwriters—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬

between

$10,000,000

& Beane
(jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly); Glore. Forgan & Co.; and The First
Boston Corp.
Offering—Expected late in 1955 or early

the authorized

standing).
proposed

1956.

Motor

for-1

stock

Co., Detroit, Mich.
was reported that
following a probable 10split, an offering of approximately 4,000,000

shares will be made to the
public.
be around $60 per share.
Proceeds

new

of

Offering—Probably

not

Price—Expected
—

To

until

the

Ford

"latter

part

1955, if then."

is

Inc.

(8/1)

reported company plans to issue and sell
$20,000,000 of 4j/2% sinking fund debentures due Dec.
was

31,
exchange for the Foremost
(par $100), Foremost $50 par pre¬
ferred
stock and Philadelphia
Dairy 4V2% preferred
stock for a three-week
standby. Price—105%. Under¬
1980, to

be

first

writers—Allen

offered

in

&

Co.

and

Salomon

Bros.

&

Hutzler,
New York.
Registration—Expected about July 11.

both of

General Minerals Corp.
June 20 it

reported that company plans early regis¬
tration of 1,200,000 shares of its common stock.
Under¬
writers—Sanders & Newsom and Rauscher, Pierce &
was

Co.,
Dallas, Tex.; and Laird & Co., Wilmington, Del.

both of

Gulf States Utilities Co.

May

16

it

Maine Central RR.
Feb. 14, E. Spencer Miller,
not

President, said company haa
given up the idea of refunding the $17,000,000 5%%
mortgage and collateral trust bonds due 1978.

first

reported company may issue and sell
first mortgage bonds if market conditions
Underwriter—To be determined by competitive

bidding.

was

Probable

bidders:

Halsey, Stuart & Co. Inc.;
Brothers; Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co.
(jointly); Salomon Bros.
& Hutzler and Union Securities
Corp. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn &
Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
Lehman

ly); Stone & Webster Securities Corp.

for new bonds may include
Halsey,
Inc.; Kidder, Peabody & Co.; W. C. Langley
& Co.; Coffin & Burr,
Inc.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner &
Beane; Blyth & Co.*
Inc.; Glore, Forgan & Co.

Majestic Auto Club, Inc.
Aug. 25 it was announced company plans to offer 500,(par five cents) to the motorist and general
public shortly after completion of the current offering
of 100,000 shares to service station owners and
operator*.
Office—Room 717, 141 Broadway, New York
6,
Middle States Telephone Co. of Illinois

May 19 it
issue

authority to $20,000,000.
& Co. (Inc.), Chicago, 111.

20

it

on

increasing

Underwriter—A.

G.

one

expire

was

new

on

share

Sept.

For construction

26.

for

each

25

Price—$22

program.

On

May

the

11,

authorized

Underwriter—Central Republic Co., Inc., Chicago, 111.
Mountain States Telephone & Telegraph Co.
it was announced that company plans to issue
and sell to its stockholders additional common stock

May 21

next Fall, the amount and ratio to be determined later.
American Telephone & Telegraph Co. owns about 86.7%
of the presently outstanding common stock. Underwriter

—None.

Murphy
April

12

(G.

C.)

Co.,

stockholders

the authorized

limit

McKeesport,

approved

of

a

Pa.
to increase
$3,000,000 to

proposal

indebtedness

from

$20,000,000. Proceeds—For expansion program. Under¬
writer—Merrill Lynch, Pierce, Fenner & Beane, New
York, handled preferred stock financing in 1942.
New

Haven

June 7 it

was

Clock & Watch Co.

[

announced that in connection with its pro¬
upon

July 26,

shares

capital.

Underwriter—Probably

held;

rights

to

share.
Proceeds—
Underwriter—None. Unsub¬
per

scribed shares to be sold to highest bidder.

Reynolds

of

new

Co.,

New

plans this

year

&

York.

New

(9/5)

reported company plans to issue and
sell 14,817 additional shares of common stock
(par $15)
to common stockholders of record
Sept. 5 on the basis
of

stock.

common

increased to 450,000 shares from 350,000 shares.

posed plan of recapitalization to be voted

proposal

Housatonic Public Service
Corp.
June

was

reported company plans to issue and sell

was

additional

N. Y.

the company plans to raise not less than $300,000
a

debt

Becker

bidders

Stuart & Co.

$10,000,000
permit.

However, no immediate financing
Underwriter—Probably Blair & Co. Incor¬

planned.

porated, New York.

000 shares

★ Foremost Dairies,
June 30 it

was

to raise approximately $1,500,000 through the

Probable

Ford

March 15 it

It

a proposal to
increase
(par $1.25) from 1,000,000
are 804,063 shares out¬
reported previously that the company

stock

common

sale of 150,000 shares.

ner

the

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.

offer

Jersey Central Power & Light Co.

company has no present plans
additional borrowings.
Underwriters—

l-to-15 years.




Underwriter

The

Hammermill Paper Co.
May 10 stockholders approved

,

near

additional

an

July 19 for the purchase from the company of $3,600,000
equipment trust certificates to mature annually in from

1955.

in

$25,000,000 of debentures or
other indebtedness
maturing later than one year after

and for underground development.

Dec.

will

shareholders, the latter probably sometime in

of

$4.50 preferred stock

Corp.

company
of
several

tures,
-

Alstyne, Noel & Co., New York.

Foundation.

plans

the right to subscribe

•shares of capital stock

April

Engineering Co.

Continental Can Co., Inc.
April 18, preferred stockholders

to

ic Camden Trust Co., Camden, N. J.
June

bidding.
Morgan

Inc.;

—

•&

Merrill

Bank, Washington, D. C.
April 25 it was announced company, in addition to
plac¬
ing privately an issue of $500,000 convertible deben¬

sell

tional

about

struction.

to

Consolidated Uranium Mines, Inc.
July 23, 1954, stockholders authorized issuance and sale
of not to exceed $6,000,000 convertible debenture
bonds
in connection with the acquisition of Uranium Mines
of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter
Tellier & Co.,
Jersey City, N. J.

New York.

sued, each stockholder would receive rights to purchase
the debentures in proportion to his holdings of stock
(probably on the basis of $100 of debentures for each
eight shares of stock held). Underwriter—None.
Arkansas

expects

company

pre¬

International

to $50,000,000 bonds some time during
the current year. Proceeds—For construction
program.
Underwriter—To be determined by competitive

making any
Goldman, Sachs

Co.

exceed

$650,000,000

announced

was

common

stock, $1 par value); also waiving of
emptive rights to such increased shares.

^$40,000,000

from

for

American Telephone & Telegraph

be

Consolidated Edison Co. of New
York, Inc.

the

Prospective Offerings

a proposal
increasing the
3,000,000 to 4,200,000 shares
(200,000 of such increased shares shall be (new) serial
preferred stock, $50 par value and 1,000,000 shares shall

authorized capital stock from

new

future of $2,000,000 convertible debentures.

(letter of notification)

Hupp Corp.
May 13 stockholders approved

financing.
construction, which, it is estimated,
will cost about
$125,000,0000 in 1955. Underwriters—
For last equity financing were The First
Boston Corp.
and Glore, Forgan & Co.
Proceeds—For

—Van

York Oil & Uranium Co.

June 3

Commonwealth Edison Co.
Jan. 24, Willis Gale, Chairman, announced it
should be
Fall before the company undertakes its next

45

Feb.
to

4

Orleans
it

issue

was
some

Public

announced

first

Service

Inc.

that company

mortgage bonds due 1985.
Under¬
competitive bidding. Prob¬

writer—To be determined by

able bidders:

Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Union Securities Corp.
Continued

on

page

46

The Commercial and Financial Chronicle
46

Continued

Underwriter—To be determined by competitive bidding

from page 45

17,

the company

proximately $200,000,000. Underwriter—For and bonds,
to
be
determined by competitive bidding.
Probable

Co.; Halsey, Stuart & Co. Inc.

bidders: Morgan Stanley &

Thursday, July 7, 1955

.

Marvin Chandler, President, announced that the
company plans to spend $60,000,000 on new construction
through 1958, and tfiat about $25,000,000 would be raised
through the sale of bonds in the period. Underwriters—
The First Boston Corp., Halsey, Stuart & Co. Inc. and
June 14,

Glore, Forgan & Co.

March

29

ments

for

it

*

will

1955

(Minn.)

Power Co.

announced

was

that

capital require¬

new

Present

approximate $31,000,000.

plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and -White, Weld & Co. (jointly); Equit¬
able Securities Corp. an^ Union Securities Corp. (joint¬
ly); Smith, Barney & Co\ Lehman Brothers and Riter
& Co.

(jointly); Glore, Forgan & Co.

Northwest

Nitro-Chemicals,

"

Ltd., Alberta, Can.
sell publicly deben¬
chemical

March 4 company plans to issue and
tures and

stock to finance its proposed

common

ic Nuclear-Electronics

Corp.
June 28, it was announced that it is planned, following
proposed merger into company of Olympic Radio &
Television, Inc., and Victoreen Instrument Co., to issue
and sell $2,500,000 of debentures.
Underwriters—Van
Alstyne, Noel & Co. and Barrett Herrick & Co., Inc.,
both of New York...Meeting

Stockholders to vote

—

on

in August, 1955.

60,000 shares of cumulative preferred stock (par $100).
Proceeds—For Construction program.
Underwriter—To

competitive bidding/ Probable bid-*
ders: Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb
& Co.; Harriman Ripley & Co., Inic. and Stone & Web¬
ster Securities Corp. (jointly); The First Boston Corp.;
Union Securities Corp. and Salomon Bros. & Hutzler
(jointly).
Registration—Planned for Aug. 17. Bids—
Expected to be received up to 11 a.m. (EDT) on Sept. 20.
determined by

be

Ohio

Power Co.

June 20 it

(9/20)

reported

was

retire

To

loans

bank

Underwriter—To

Feb. 21 it

construction

for

and

program.

competitive

by

bid¬

Probable bidders: Halsey, Stuart & Co. Inc.;
Ripley & Co. Inc. and Stone & Webster
Securities Corp.
(jointly); Kuhn, Loeb & Co.; Blyth
& Co., Inc.; Union Securities Corp. and Salomon Bros
& Hutzler (jointly); The First Boston Corp.
Registra¬
tion—Planned for Aug. 17.
Bids—Expected to be re¬
ding.

Harriman

ceived

Ohio
March
sell

to 11

up

Water
it

28

a.m.

(EDT, on Sept. 20.

Service

was

burse

the

Proceeds—To retire bank loans and reim¬

company's treasury for construction expendi¬

Pacific Far East Line,

Inc., San Francisco, Calif.
June 18 it was reported that early registration is ex¬
pected of 80,000 shares of cumulative convertible pre¬
stock

stock,

common

for

the

(par

about

160,000

100,000 shares

are

shares
to

be

of

sold

the balance for the account of
Underwriter—A. G. Becker & Co. (Inc.),

Chicago Corp.
Chicago, 111.

June 21

of

and

of which

company

Pacific

$25)
and

announced company plans to offer to its

was

common stockholders later this year 1,339,196 additional shares of common stock on a l-for-6
basis. (American Telephone & Telegraph Co., the parent,
owns
a
majority of the common and preferred stocks
presently outstanding.) Price—At par ($100 per share).
Proceeds—To repay bank loans and for new construc¬

Underwriter—None.

Pacific

June

21

was

announced

company

tal.

to the extent
The company has scheduled

Jan.

large-scale expansion

program,

bidding.

debenture

This

issue.

w/ould

not

exceed

a new issue of 500,000
stock (par $100). Proceeds—To re¬
cumulative preferred .stock (233,500
shares outstanding), and for working capital.
Under¬
writer—Harriman Ripley & Co., Inc., New Y'ork

deem

■

/

Receptor Co., Inc.
was
reported that

it

28

public offering is

a

soon

of about 250,000 shares of common stock; of 100,000 shares will be sold for account of com-:

and 150,000 shares for selling stockholders.

pany

writer—Bache &
■*-

Utah Power &

debt

Dec.

at

the

conditions

of

proposal increasing the

31, 1954 totaled $84,077,350.

amount

the

of

the

bonds.

issue

the

and

Probable

•

Union Securities Corp. and

terms

bidders:

-

E.

Halsey,

Utah
March

10

Diego Gas & Electric Co.

Power &

28 it

struction

Sherwin, President, recently reported that the
company will need a minimum of $11,000,000 new capital'
to help finance its current $20,000,000 construction pro- *
gram.
The financing will probably take the form of a :
bond issue or preferred stock.
Underwriters—(1) For
preferred stock, Blyth & Co., Inc., San Francisco, Calif.
(2) For bonds, to be determined by competitive bidding. '
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler; Blyth & Co., Inc.; Union Securities'
Corp. and Merrill Lynch, Pierce, Fenner
& Beane (jointly); Lehman Brothers; The First Boston Corp.;
White, Weld & Co. and Shields & Co. (jointly). Offer¬
ing—Expected in September.

been

plans to issue and

with

from

mortgage

California

competitive

P.

30
to

stock

it

Co.

was

Underwriter—To

be

de¬

Warren
it

upon

is

of

Bids—To be received

Brothers

announced

was

stockholders

proposed
bonds

pay
.

off

$225,000

a

loan

for working capital.

and

Westcoast Transmission

April

25 it

and sell
in

,

of

notes

and

stock.

Bonds

New York.

U.

March 2 it

for

the

latter part of July. Bids—Expected to be
opened Aug.

announced

Sinclair Oil Corp. has agreed

for

ex¬

shares

Commission

bidding.

was

of-Westpan stock (52.8%). Underwriter—Union
Corp., New York, underwrote recent sale of

Securities

Bids

Sinclair's holdings of Colorado Interstate Gas Co
Weld

&

Co.,

New

Worcester
The

plans to Issue and

500,000 additional shares of

common

*

competitive

company

with

of

was

reported company plans to issue and sell

later this year
$9,300,000 of first mortgage bonds.

ceeds—To repay bank loans and for




(jointly);

Blyth

&

Co.,

Inc.,

be

may

included

the

SEC

new

Pro¬

Bear,

construction.

the

to

file

a

payment

of

Underwriter—To

bank
be

bidding.

loans

and

determined

1985.

new

by

con¬

compe¬

Probable bidders: Halsey, Stuart &

Co.

Co., Inc. (jointly); Coffin

Inc.; Kidder, Peabody & Co., Blyth & Co., Inc.

and

porated and Baxter, Williams & Co.
-

statement

early in September with respect to sale

Securities Corp. and Equitable Securities Corp. jointly):

Brothers; Morgan Stanley & Co.; Kidder, Pea¬

(10/18)

registration

Merrill Lynch, Pierce, Fenner & Beane, Salomon

& Burr,

(jointly); Union

body & Co., and Merrill Lynch, Pierce, Fenner & Beane

White,

among

$8,500,000 first mortgage bonds, series D, due

struction.

bid¬

County Electric Co.
proposes

Proceeds—For

subsidiary companies
by

York,

bidders.

Lehman

16.

Pennsylvania Electric Co.
Feb. 15 it

Co.

be

with the SEC to divest itself of its investment ol. 384,380

(par $5). Proceeds—To repay bank loans and for

&

to

has

Bros. & Hutzler and Stroud &

Registration—Planned

expected

Underwriter—Eastman, Dillon & Co.,
Offering—Expected in July.

Stearns & Co. and Dean Witter & Co.

(jointly).

are

privately.

Wertheim

Corp.

Ltd.

now plans to issue
publicly about $20,000,000 of securities, probably

units

placed

Co.,

reported company

was

White, Weld & Co., Lehman Brothers and Union Secu¬

&

,

19 will

to

rities

Stanley

Juiy

or

Inc.;

Probable

Morgan

on

a plan to refinance
the outstanding 40,665
$2.50 cumulative preferred stock (par $50).

titive

bidding.

Inc.;

Sept. 13.:

on

Co., Cambridge, Mass.

Application

bonds

determined

con¬

issue not more than $2,593,000 of
debentures which may be in whole or
in part convertible into common stock at not less than
$50 per share. Proceeds—To retire preferred stock, to

(11/9)

be

For

—

Westpan Hydrocarbon Co.

announced company

the public

Proceeds

Underwriter—To be determined by
bidding.' Probable bidders: Lehman Bro¬

First Boston Corp.

notes,

received on
& Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly); Lehman Brothers.
Southern

(9/13)

stock.

program.

competitive

It

last sale of bonds were from Halsey, Stuart

sell

(8/16)

filed

emption

first

common

thers; Union Securities Corp. and Smith, Barney & Co.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Blyth & Co.. Inc.: The

shares

reported company plans to issue and sell

of

Light Co.

reported company plans public sate of

was

177,500 shares of

vote

D.

$40,000,000

Smith, Barney & Co.-(joint¬

ly); Kidder, Peabody & Co.; Salomon Bros. &- Hutzler;
White, Weld & Co. and Stone & Webster Securities Corp,

Inc.; Morgan Stanley & Co.

was

plans to Issue and

Bear, Stearns & Co.

stockholders approved an additional issue ol
up to $25,000,000 of first mortgage bonds, of which it r
is planned to sell initially $19,500,000 principal amount *•to mature in 40-years.
Proceeds — For property addi- tions
and
improvements.
Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Hal- "
sey, Stuart & Co. Inc.; The First Boston Corp.; Union
Securities Corp.; Blyth & Co., Inc. and Harriman Ripley :
& Co. Inc. (jointly).
May

(9/13)

(jointly); The First Boston Corp.; Lehman Brothers and
(jointly). Bids — To be received
Sept. 13.

and >

Louis-San Francisco Ry.

St.

Light Co.

reported company

was

—

If, in
the future, the directors should deem it in the best in¬
terests of the company to issue bonds, the board will

determine

it

$15,000,000 of first mortgage bonds due 1985. Pro¬
ceeds
To repay bank loans and for construction pro¬
gram. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Sfusrt & Co. Inc.;

authorized indebtedness of the company to $125,000,000.*Funded

28

sell

Reading Co.
a

5%

present

March

Under¬

Co., New York.

June 7 stockholders approved

Boston

shares of preference

writer—Probably Smith, Barney & Co., New York.
Radio

First

United Aircraft Corp.
April 26 stockholders approved

$50,000,000 and would be issued at the discretion of the
directors any time within the next 12 months.
Under-;

Feb.

—

(jointly);
Corp.; Lehman Brothers and Bear,
Stearns & Co. (jointly); White, Weld & Co. and Shields
& Co. (jointly).
The

Pure Oil Co.

convertible

repay

Underwriter

Blyth & Co., Inc. and Union Securities Corp.

April 9 stockholders approved the possible Issuance of
a

first mortgage bonds late in 1955.
bank loans and for new construc¬
To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
30-year

Proceeds—To
tion.

reported company expects to sell about

was

$30,000,000

involving $75,000,000
in-order to keep abreast of estimated load growth over
the next five years.
Underwirters—Probably Stone &'
Webster Securities Corp., The First Boston Corp. and
Smith, Barney & Co.
a

it

24

burg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and

Co.

( par $10),

Electric Co. of Missouri

Union

outside sources—at least

from

purposes

of several million dollars."

ding. Probable bidders: The First Boston Corp., Laden-

&

authorized

an

Texas Gas Transmission Co.

.Co.;

Stuart

approve

300,000 shares (to be convertible into common)
publicly offered. Proceeds—For working capi¬
Office—Buffalo, N. Y.

bidders:

Halsey,

to

,

Underwriter—To

program.

competitive

Instrument Corp.

15 it was reported company plaDs to sell addi¬
Pennsylvania Power & Light Co.
;
tional first mortgage bonds later to finance cost of new
April 19, Charles E. Oakes, President, announced that
construction, which is estimated;at about $17,500,000.
company plans this year to issue and sell $15,000,000 of
Underwriter—Dillon, Read & Co. Inc., New York.
~
first mortgage bonds and use the proceeds for its con¬
• Texas National
Bank, Houston, Texas
struction program. Previous bond financing was ar- "(:i
June 30 it was announced Bank is offering its stock¬
ranged privately through Drexel & Co. and The-First *
holders of record June 15 the right to subscribe on; or
Boston Corp.
before July 20 lor 50,000 additional shares or capital
^ Peoples National Bank of Washington, Seattle,
stock (par S20) on the basis of one new share fdr each
Wash.
five shares held. Price—$40 per share. Proceeds—ToinJune 30 it was announced Bank plans to issue 25,000
crease capital and surplus.'
1
•
shares of capital stock (par $20) as a stock dividend, and
Unexcelled Chemical Corp.
a like number of shares 'will be offered for subscription
May 25 stockholders approved creation cf 100.000 shares
by stockholders.
of 5%
non-voting preferred stock (par $25) and in¬
Puget Sound Power & Light Co.
creased authorized common stock from 500,000 shares to
April 5, Frank McLaughlin, President, said that "it will
1,000,000 shares.
. '
■ \
be necessary in 1955 to obtain funds for construction

—For

by

Precision

*ork.

to be

are

Co. Inc.

Investment in additional stock of

termined

Sterling

competitive

by

sell $67,000,000 of 36-year debentures due 1991. Proceeds
construction

Under¬

of which

Dec.

Telephone & Telegraph Co.

it

common

*'

Citv

issue of 500,000 shares of first preferred stock

bidding. Probable bidders
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For- "
gan & Co. (jointly); Kidder, Peabody & Co., The First
Boston Corp.; Smith, Barney & Co.; Harriman Ripley & ;

Feb. 28 it

preferred and

tion.

and

Southern California Gas Co.

Telephone & Telegraph Co.

it

oi

snares

York

&

determined

Co.

reported company plans to issue and

tures.

ferred

Co.

reported company proposes Issuance

was

bO,oO(J

ana

Broadway, New

King, Libaire, Stout 6i Co., New
Offering—Expected in July.

June 21

$1,000,000 of first mortgage bonds and $300,000 of
common stock (the latter to stockholders) in
future.

debentures

Office—160

June 6 the stockholders voted

San

additional
near

Electric

Inc.
plans to offer $600,-

-Foods,

reported compan>

$7,500,000 of preferred stock later this year. Pro¬
ceeds—For construction program.
Underwriter—To -be

plans to issue and sell

bond^ due 1985. Proceeds—

determined

be

Frozen

was

6%

stock.

sale of

Stuart & Co.

company

$22,000,000 of first mortgage

of

000

Co.,

it

writer—Eisele

which

reported company plans to issue and sell

was

Kidder, Peabody &

& Co.;

Loeb

expected

(9/20)

Ohio Power Co.
June 20 it

Kuhn,

Inc.

project. Underwriter—Eastman, Dillon & Co., New York.

merger

April 18

March

Northern Illinois Gas Co.

Northern States

Corp.;

Pennsylvania

Keith S. McHugh, President, announced that
will have to raise more than $100,000,000
of new capital money to aid in carrying but its expan¬
sion and
improvement program which will cost ap¬
Jan.

Boston

Co.; Equitable Securities Corp.; Harriman Ripley &

Co.

New York Telephone

Southland

"

probable bidders: Halsey, Stuart & Co. Inc., The r'lrsi

(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.

•

.

.

(106)

White, Weld & Co.

Boston Corp.
on

Not expected until Oct 12.

Mass.

Blair &

Co.

Incor¬

(jointly);- The First

Bids—Tentatively scheduled to be received

Oct. 18 at company's

Bids—Tentatively scheduled for Nov. 9. Registration—

(jointly);

office, 441 Stuart St., Boston 16,

Number 5444 : .The Commercial and Financials Chronicle

182

Volume

(107)
As
a
philanthropist, he«:
various causes^upport with
an open hand, devol ed
to, a wide
range of good causei.
One of his
Press.

Wall Street Banker,
Wall

old

Street

week after

two and

a

died

last

half year

a

known

benefr.e ions

Harding
the

and

illness at Boxwood Hall, Florham

Winters

of

the

Park, New Jersey, where he
born 85 years ago. A month

,

was

War,

for

250,000,

ago

park

he

deeded

Im¬

ment

as

Smitn suffered

Mr.

mediate

of

cause

stroke.

a

death

was

a

'heart attack.

Smith's life covered

Mr.

long

a

period of usefulness and unselfish
application as a newspaperman,
farmer, citizen, banker and phiianthropist/ During his lifetime,
Mr. Smith's generous donations to
Princeton University, the Morristown, N. J. Hospital, Protestant

>

•

_

Catholic churches and chari¬

and

ties, to War Memorial Youth Cen¬
the Morristown Memorial

ter and

Hospital,

Boy

Council

Scouts

sury

to

bond

issue

Boxwood

where

retired

of

Chairman

the

in

1931

Chase,

Forbes & Co. board to

►' rest of his days to

as

Harris,

cause

rank

the finest

as

said

to

was
the

country

including several hundred of the

Park.

One

of

his

of his

one

Boxwood t all is located

Mr.

of

one

wi

Smith

the

at Florham

i

considered

s

^largest

State's

land

owners.

his sword,

in
addition
books, m a n

to
u

proudest

Joins White- Ifhillips

is

connec 1 ed

now

White-Phillips Co., I:
Dearborn

with

The

38 South

i c.,

Street.

Special to The

Company

consisted
tion

of

largest
relics

of

in

relics,

with

is

T]he

existence.

All

found* in

were

these

his

-aative

.State of New Jersey. ;

Smith

Mr.

v'

the

of

Midwest

Stock

1

Exchange.

his

started

-

;

old

nc|vl

Special to The Fin.

NEW

Wall

St.

Chicagd

hasten] added to the

Silverman Co., Inc.,
Shell Building Arcade, members

staff of D.

N.

Orleans

New

Ex¬

Stock

change.

1

...

With

is now

curities

Corp.,// 79 1 Milk

firm's

members

the

railroad departments.

and

came

1921

in

bond

buyer as
advertising

the

of

Co.,

suc¬

cessor company to N. W. Harris
amalgamated
Securities

1931. Mr. Smith

with

the

Corporation

was

in

named Chair-

the

the

of

and elected

National

Board
a

of

both

hard

removing

dearth

swept

literally clean,
overhang of
might
otherwise

any

pressure^ that
been

the

around.

ovservers have no

Treasury's

bonds

to

institutional

pension

as

Mr.

insurance

savings

banks,

common

investors

many

knowledge
looking for

outlets for their funds, have been

standing by awaiting .details of
the Treasury's plan,
s^ince con¬
is

sensus

received

graduated

from

School

1898

in

his

Government 3%

BOSTON,

Mass.

of

bers

the

at

the

he

While

was

and

current

Up

and

"Yale
vard
the

at

editor

State

Bar

it

probably will

That

BOSTON,
Vickers

Stock

FE

New

J.

the

school
as

Ex¬

Cents

of

Review."

of

the

While

"Harvard

and

the

—

Lester

of the market

TOPEKA

RAILWAY

York,

could

C.

However, some people, judging
by the sharp reactions recently in
some of the
turnpike issues, would
not be surprised if perhaps a bit
more
adjustment may be ahead
for the tax exempt market.

George Percy Partner
In Clark, Dodge Co.
Clark,

Dodge

&

Co., 61 Wall
Street, New York City, members

has become

a

membership

Lauderdale

of

Robert

to

J.

Vance
Fried-

lander,

Jerome

to

A.

Maurice

S.

Byck

Parnes will

Exchange

Samuel

to

considered

be

on

Eaton, and

is

that

fer

books will

to

The

closed
ment

Bank has de¬

shares

stock of the Bank,

Chase
Manhattan

of

on

capital

payable August 15,

Magnus

books

connection

at

to Staff

Financial

Chronicle)

is

with

now

Magnus

&

ing.

With

Paine, Webber

'

(Special to The Financial Chron ci.e)

CLEVELAND,

Ohio

—

William

M. Craig is now connected with
Paine, Webber, Jackson & Curtis,
Union

Commerce Building.
DIVIDEND NOTICES

Board

declared

of

business

July

14,

cents

Common

Value)

Vice

of

has

twenty-

share

per

Stock

($1

on

Par

of the Company, and
of

share

per

Stock

fifty

the

on

(no

a

(50c)

cents

Common

Par Value)

not

yet

exchanged
under
the
Com¬
pany's
Exchange
Instructions
dated
May
19,
1953.
These

W.-1 STRAUSS

President

(25c)

dividend

1955.
OTTO

Directors

of

dividend

a

five

*ffffiriK
(and Treasurer

are

stockholders of

ord

OTIS

to

the

at

payable

close

of

July
rec¬

business

July 8, 1955.

ELEVATOR

L. G. CLARK, Treasurer
June 29, 1955.

COMPANY

Common Dividend No.

dividend

the

STOCK

no

of
par

Stock has been

July
on

$.625

at

194

share

per

The United Gas

value

Common
declared, payable

1955,

29,

of record

a

Improvement

stockholders

to

Company

the close of business

July 8, 1955.

DIVIDEND

NOTICE

remain open.

A

Checks will be mailed.

quarterly dividend of 50c
share on the Common Stock,

H. R. Fardwell, Treasurer

EDMUND

HOFFMAN, Secretary

per
par

value $13.50 per share, has been

declared

York, June 29, 1955.

payable September 30,

1955

New

Checks will be

stockholders

to

of

record

August 31, 1955.
A quarterly dividend of $1.06M

GOULD-NATIONAL

of

BATTERIES, INC.

R.

SAINT

§er share on thedeclared payable
tock has been
4M% Preferred
October

1, 1955

of record

PAUL, MINNESOTA

August 31,1955.

Manufacturers of Automotive

by the

to

stockholders

Johns Hopkins, Treasurer

and Industrial Batteries

DIVIDEND

Philadelphia, June 28, 1955

NOTICE

VISCOSE
Preferred Dividend

Notice

Directors

of

of

July

a

American

6,

1955,

declared

and

share

on

Viscose

dividends

twenty-five cents

the Cumulative Preferred

Stock,

per

share

(5U )

the

on

five

cumulative

per

preferred

payable August 1,

Common

to

Dividend

The Board of

today

declared

a

t

dividend

of 42Vi$ per

share

Common

tjhe

August 1,to shareholders of

common

stock,

both

the

August

shareholders of
"*

pay¬
of

1,

record

1955,

*

business

Lexington Avenue, New York 17

meeting of

Dividend Notice

July 20, 1955.

to

'the close

at

Stock, payable

.420

At

record
on

lie

A. H. DAGGETT

a

today

.a

dividend

on

July 20,

1955.

,

on

payable

August

record

WILLIAM H.

BROWN

Checks

at

3:30

will

be

Vice President and Secretary
Dated

June

forty

28,

1955,

16,

cents per share was

o'clock

p.

to
m.

stockholders of
5, 1955.

August

mailed.
D.

Secretary

the Board of Directors held

of

the capital stock of the Corporation

declared

President

l

on

fifty cents (50 cents) per

on.

America

of

July 20,
1955.

stock and

the close

not

Vanadium Corporation

shareholders of
record

Directors
($1.25)
cent

today declared

regular quarterly dividend of 56}Ai

per

the

dollar

one

payable

will

ivith

of this dividend. "

Member Federal Deposit Insurance Corporation




of

stock.

Company, Dixie Terminal Build¬

tnL 9j£&Ju2fe!$ SJe SSlS SS&

COMPANY

July 15, 1955.-

transfer

to The

consist

common

CINCINNATI, Ohio—Joseph A.

ENGINEERING,

share

holders of record

in

share

the

KENNETH C BELL

BANK

(Special

The

COMBUSTION

AMERICAN

NOTICE

dividend of 55c
per

of business

of

CORPORATION

The Chase Manhattan
a

shares

Magnus Adds

mailed.

on

12,000,000

will

company

dividends

Corporation at their regular meeting

1955

the

22, 1955

quarterly dividend of
thirty-five cents per share was declared on
the Common Stock of this Company, payable
August 15, 1955, to Stockholders of record
at the close of business July 21. 1955. Trans¬

1955

AVISCO

DIVIDEND

1799'

of

340,160

AND

CAN COMPANY

July; 14.

BANKING

clared

April 30, 1955
For the previous

sales

year

were $1,461,467.
Upon completion of this financ¬
ing the outstanding capitalization,

Dividend No. 207

AMERICAN

of the late Arthur Turn-

bull

Law

Associated

THE

fiscal

TECHNICOLOR, Inc.

N.

COMMON

Exchange Members

Exchange

ended

year

$1,970,133.

member of the firm.

The Board of Directors

•CHARTERED

fiscal
were

.

Transfer of the New York Stock

the

ventilat¬
;

DIVIDEND NOTICES

A

y

kitchen

Net sales of the
company for the

of the New York Stock Exchange,
announce
that George A. Percy

WILSON, Assistant Treasurer,
Broadway, New York 5, N. Y.

G.

'

of

1955

with

'j

•

.

To Be

pa¬

the

sec¬

be

realized.

One

Dividend

WORLD-WIDE

the

kept
fairly busy if the full potential of
prospective issues in that area is

Brothers, 80 Federal St.

DIVIDEND NOTICE

'

ufacturer of recessed incandescent
fixtures in the United
States.
It is also
engaged in the

lighting

manufacture

who

1

Manufacturing
Co., together with its subsidiaries,
is believed to be the
largest man¬

per

On June 28,

lege Mr. Smith worked as a cor{'respondent
for
several
Boston
newspapers

Mass.

student at col¬

a

to

into the municipal

over

pur¬

ing fans.

underwriters
those

offering,
use

chase of additional
equipment.
Marvin Electric

Directors

of

($1.25)

D.

editor

for

the

Heavy

wholly
But

Y., June 28, 1955.
has this day declared
Dollar
and
Twenty-five
share, being Dividend No. 172,
on the Common Capital Stock of
this'Company,
payable September 1, 1955, to holders of said
Common Capital Stock registered on the
books
of thf Company at the close oi
business July
Board

dividend

a

29

become connected

in

News"; and at HarSchool, he was one of

Law

tion

for

almost

field.

from the

remove

ATCHISON,

SANTA

f

Lazar has

Daily

editors

swing

yield

With Vickers Brothers

Phillips-Andover,
of

Gas

market

via

share.

per

$50,capital, $120,000

months do not hold

promise
stick

Billion

a

recognized, however.

120

admitted

was

York

at Yale he served
business
manager

per;

*'■

New

to

Calendar

summer

much

than into

par

their

at

far-reaching effect of the
Washington schedule is definitely

THE

Henry

—

Boston

change.

.

to

1899.

Eastern

slated

.preferred

Mar¬

of

Manufacturing Co. at

for payment of secured notes due
to factor and
$70,000 for the

I

,

Fleming is with F.fL. Putnam &
Co., Inc., 77 Franklin Street, mem¬

1895,
Law

Bell

stock

common

Of the proceeds of the
Marvin Electric plans to
000 for. working

DIVIDEND NOTICES

degree

Harvard

pros¬

Corp., New
offering
100,000

is

price of $3

INC.

firms

in

Texas
is

of

Municipal
The

;

on

University

shows

negotiated route.

they would rather,
this point, put funds into a long

With F. L. Putnam

director of the Chase

Smith

of

that

Bank.

Yale

City,

certain
investors

funds,

and

will

what with*

appealing

of

doubt

program

well received

very
v

helped

offerings. Dealers' shelves

thus

the

was

veritable

the

been

types

are con¬

(Special to The Financial Chronicle)

from

following day

i
the^ who

in

hit

situation

by

*

man

taken

corporates

as

have

The

Chase

far

so

new

at

calendar

Telephone Co. will have $30,000,000 of bonds up for bids and the

corporate

little

of

Stock

(Special to The Financial Chron\cle)

Co.,

been

Soaking

Street,

Midwest

(k

Exchange.

1923.

&

have

He be¬

President of the company in
and Chairman of the board

When Harris, Forbes &

has

One

-I- Maurice T.
with Clayton Se¬

Sullivan

Securities

York

shares

the

Mais.

late
in
1899, his rise was
rapid. He sold bonds and was the
well

sions

Clayton Securities

BOSTON,

fice

municipal
as
heading

Aetna

(Special to The Financial Chronicle)

the New York of-

to

adjustment

corporates

x

y

week's

basis.

municipal

junior clerk. After

as a

$750
another $2

place. Some of these recent emis¬

that

Chronicle)

True, investment

only two sizable offerings in
pect.
On Tuesday Illinois

division, where sub¬

It has been

ORLEANS,|La.—Howard

Gruenberg

joined the

^nationally-known

his transfer

stantial

D. N. Silverman Adds

bond house of N. W. Harris & Co.
in

,

1899 when he

in

of

with corporations naturally stand¬
ing by to take the tax certificates.

;

'

career

extent

3%

could not be said for

companies

the

40-year,

raise

to

the turnpike

be

Kentucky

the

bond market, notably

such

of

dis¬

same

members

-

the

of

one

fully

revenue

Company, Louisville Trust Bldg.,

30,000 piece collec¬

a

Indian

The
the

that

LOUISVILLE; K^.—Thomas H.
Minary

Next

ticipation notes.

Market

FinajSJcial Chronicle)

the slack in

Corp. Slock Offered

is

gnash¬

ing in the corporate field, but they
recognize the present situation as

$16,000,000

have

With Kentucky

there
or

vin Electric

Transmission

no

'

?

its

the

to

and

cerned,

Chronicle)

CHICAGO, 111.—Rai ph R. Oben-

hobbies

quite

process.

(Special to The Finance

weaping

over

billion through the sale of tax an¬

But

scripts and documents of that day.
'■'*

is

have

reopen

million

Eng ish boxwood

his extensive farr

on

on

first President's letters,
estate
records,
Washingtoniana,

and

to

counted the decision of the Treas-

devote the

centering

in

of the old

which he cultivated.;

farming, and to

J. George Washington,

born

v as

his

hobbies.

his collections. His extensive col¬
lection of Americana,

Smith

farm house

home, wa; one of the
showplaces in New Jersey be-

chain

mention.

to

Smith

Mr.

made

public playground and other
local
agencies were almost too
Mr.

Hall, th<

circumstances

much

a

The corporate bond market ap¬

the 1 'ord Mansion

tuous years.

and

numerous

Govern¬

1

its

"all in the game."

peared

as
"

as

>

in
Morristown,
Washington's
headquarters during, those tumul¬

Camp, Girl Scouts Council as well
a 33
acre tract in
ParsippanyTroy Hills Township for a park

1

well

the

Marvin Electric Mfg.

that

found

bankers fare better when
operat¬

stormy

Revolutionary
wiich national
to

dollars

have

issue field.

new

the

during two

the

too

ing of teeth

Morri| Townships,
Colonial Army

of

scene

Encampment

'

potential of

a

billion

otherwise

In
not

market

a

into corporate issues.

way

the

was

issue

might

purchase of the 1,000 acre Revolu¬
tionary War encampment site in

character,

Smith,

Waddell

Lloyd

around

best

Dies at 85
An

new

gave

Lloyd W. Smith,

47

A.

1955,

SHRIVER,

Secretary.

|

1

The Commercial and Financial Chronicle
48

.

.

Thursday, July 7, 1955

.

(108)

hostile to public housing.

ways

BUSINESS BUZZ

The

idea

like

the

President's

Washington
Behind-the-Scene Interpretation*
from the

•..
gJ

/■ y|

1

^

looked

It

d~h~tK

public

the

deal for

good

a

to

go

housers.

JL Ir 11/

jLjLI l/\A/

Nation'* Capital

get

then

program,

Rules Committee,
conference and

get it by the
and

look

it

make

to

was

week-end

at

didn't

Committee

as

would
Rules

though this strategem
fall
through,
that
the
bite.

How¬

later some pub¬
lic housing probably will get
through conference.
ever, sooner or

promises and adjustments among
the members of the appropria¬

WASHINGTON, D. C.—Some

delectable lore of
the Middle Ages relates to the
alchemists. Kings, princes, po¬
the

of

most

tions committees of both Houses;

in

mula

into

who

wizards

by

the

pre¬

metals

base

change

to

have

Alchemy nas a rising successor in this day of the "modern,

budget

up

the con¬

of

one

as

He sub¬

of the new art.

jurors

has

Humphrey

George

Appropria¬
Committee, in air formal-

mitted to the House

tions
■'
:

a

'

are

finally
Speak¬
and the Vice-President, they
to the White House for ap¬
time.

a

er

go

create

automatic

is this:

proposes

to

balancing the

budget by gimmick

Humphrey

Secretary

What

sound

for

pilot

sort of

a

—

Congress should go on,
passing appropria¬

(1)
tions

they should

the Hill, away from
gentleman in the White

ing

an

working

as

-

"But

how big

a

how

she explained. "I hope
to
have 20, in which case I
would need a very big ham. On
the other hand that smarty Mrs.
Johnson may boycott my party
with
her friends,-^and
I will
.need only

half

a

ham."

butcher

the

_

buys

big

a

Saturday. Simple, old chap.
Not

Actually
hill

•

is

itself

when it has
„

Houses,

Work

each

of

the

That

-

Way

appropriation
consequence,

finally passed both

hundreds




of

com¬

probably
thinking the

Byrd

into

is toward reduced spend¬

He is just seeming to take
Humphrey's protes¬
in *

spending

the

at

Secretary's

word.

Eisenhower

President
week's

press

at

conference

last

listed

the "must"

•

proposals he wanted
Congress
to
pass
this
year.
There were 13 subjects for leg¬
islation

'

'

at

President

didn't

TV

will

Commission

the

First,

probably, some months ahead,
order
experimental use on a

lending and spending

temporary basis. Then

in

recommended
the

Hoover

the

Part

Bonds

Revenue

Senator John W. Bricker

has

banks

in

commercial

allow

underwrite

to

state

and

already

basis.

deal

and

municipal

They

(R.,

legislation

sponsored

would

bonds.

of

report

Commission.

Outlook Against Bank
In

it will go
to the appropriate committees
of Congress and in effect, ask
the Congress or the committees
to give it some direction, so that
FCC won't have to take all the
responsibility for either refus¬
ing subscription TV or approv¬
ing it, or if the latter, on what

activities

revenue

are

in

general

Ambitions

Relative

munici¬

obligation

pals.

guesing on the Hill
legislation will get

this

where this year,

if

any

the foreseeable future.

interest

in

the

year

in

There is

out
insurance for trailer courts.
It

banks, the issue
is controversial, and the exist¬
ing investment banking trade
is cool to the idea. There just
steam

behind

be

to

appear

this

Committee

House

months"

be

"many,

before

Communications

the

many

Federal

Commission

It

cut

a,

loan

many

on

Dealers.

J. Hindon

H. Herrman Partner
Henry Herrman & Co., 1 Wall
Street, New York City, members
of the New York Stock Exchange,

did

Committee

the House

continue

gener¬

liberal mortgage pro¬
visions on housing, including a
ally

more

firm

as

reserve program

benefits

gets around to reaching a deci¬
sion

a

and prior to that time was

years

what

to

do

with

sub¬

in the opinion of

industry observers.
Not

attempting

the

units

the

to

know

it

by

public

a

in

year

the

housing

135,000

from

gram

mind,
but only
having watched its methods of

Commission's

Committee

House

The

down

proposal
on

for

the

The

Hanover

Bank.

Mr.

Hyde's admission to the
previously reported in

was

16.

Gartman, Rose Admits
Co., 1 Wall
City, members
of the New York Stock Exchange,
Gartman,

Rose

on

1

July

Kastor

&

admitted
limited

to

Robert

an

cut
pro¬

35,000

to

effort to get

Rules Committee, al-

iffinirtli

Views

on

yr>

CALIFORNIA

CLASS

which

survivors

building
upper

some

(Common)
on

STOCK

request

LERNER & CO.
Investment

Carl Marks

&

Co. Inc

•

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

EC

•

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

Boston, Mass. "

Phone HUbbard 2-1990
'

FOREIGN

Securities

Post Office Square

10

of

Colorado

B

Copies

N.

partnership in

the firm.

New

military personnel, and finally,
dams

with

associated

sons.

on

mutual security

to

admitted

been

program

with

spending, a $21 million atom
"peace ship," the payment of
better

Hindon

to the
general partner.
Mr. Hyde has been with Henry
Herrman & Co. for the past three
has

for providing
public housing for elderly per¬
special

pro-

direct and hidden costs, a

year,

J.

that

announced

Hyde

Street, New York

large health program,

housing program

a

Hyde Now

the

incidentally would cost some $2
billion

Governor of the
the

a

National Association of Securities

school aid program, a compre¬

military

a

Also,

change.

Midwest Stock Exchange and

"sleight-

FHA

of

His

insurance.

somewhat

down

expenditure; headed by the proposed $25 billion road program.
The President's repertoire
in¬
cluded

year.

RIVERSIDE CEMENT CO.
"must"

these

of

that

business

present firm, of which he is senior
partner, was formed in 1925. He
has been President and a Gov¬
ernor
of the Detroit Stock Ex¬

the Chronicle of June

a

modernization

On the other hand',
will

curities

Wm- c- Roney

se-

of

housing.

Subscription TV Issue Will Lag

the

tered

:*

en-

firm

instead
5-year extension of home

of-hand" insurance for military

as

yet to get it moving.

It

cut

in

and

proposed only a 1-year

generosity

enough

proposal

Senate, the bill
of
the
House
Banking Committee looks timid.
passed by the
reported
out
The

legislation

ger commercial

doesn't

proposed by the bill

kinds

eral

is
no¬

1919

have

enveloping

the

to

housing programs of sev¬

new

Best

that

Housing

Curtails

Bill

House

au¬

thorized to underwrite and deal

posals will involve considerable

a

subscription TV
and such con¬

troversies.

mention

even

to

as

color

to

as

the list.

on

Nine
:

methods will be as char¬

acteristic

of

aimed

cutting down expenditures. The

scription TV,

hensive

ham, and gets ready to cut off
what
Mrs. Jones wants, come

Does

Senator
fooled

not

ing.

people come to my

many

legal debt limit

tations of his plans for a cut

'

party,"

So

Federal

Secretary

want, Mrs. Jones?" the butcher
asked. "Well, that depends upon
<

second

the

would be the last he would ap¬

drop

ham do you

an¬

"temporary" boost of $6 billion

trend

.

amuse¬

Byrd's

that

nouncement

by the corner butcher's on Mon¬
day and tell him so and to be
sure
to have a large ham on
hand
for
delivery
Saturday
morning.

Senator

in

the

mention

any

program

except among some of the lar¬

Th'ere was considerable

in

was

"must"

thinks

industry

the

operation,

re¬

these

Absent
any

little

Byrd Knows

as

to

domestic

gram.

Ham

were

or

spending and loan pro¬

welfare

though
Mrs. Jones, knowing that next
Saturday she was going to have
supper,

backs

Eisenhower

foreign

new

ment

water

conserve

sources." ;

O.)

expenditures

of

President

some

is

just

a

from

Detroit

of

"to

river

which

talks
about
constantly re¬

Mr.

grad¬

uated

or

with almost the same frequency

prove.

be

for

level

duced

revenues.

buffet

Humphrey

S.

the University

as

past. As for the Eisen¬
Secre¬

a

duty
U.

Navy,

most

irretriev¬

of

the

Roney

fashion,

an

Administration,

tary

authorized
to be spent by the appropria¬
tion bills will fit the amount of

would

outmoded

gone

hower

sumably the amount

Size of the Party

in

budget,

the
Federal
regarded by

nostalgic part of

ably

by

that

is

idea

is

a

June 1
Congress will have the latest
pitch
on
prospective Federal
revenues.
At the same time it
will be able to adjudge the ef¬
fect of its own action on the
several
appropriations
bills
AND any tax legislation.
Then
knowing what revenues will be,
Congress will merely have to
pass an amendment to the some
dozen
appropriation bills cut¬
ting down the total so that pre¬

a

of

either

1, Con¬
gress should pass an "amenda¬
tory appropriation bill."
(2) Along about June

It

a

which

bouse.

The

Senator

F,

perhaps

be kept on
that

for

Byrd (D., Va.) and
dozen assorted Re¬
publicans and Democrats, no¬
body on the Hill is much inter¬
ested any more in the balanc¬
Harry

piecemeal. However, after

they are signed by the presiding
officers
of
the
respective
houses of Congress,

except

Actually,

before,

Co.,

Following
tour

anything about having Congress
curtail
some
of
the
Federal

finance.

"

as

&

of that city.

mechanism which will

a

have the effect of

proval.

designed

is

schemes,

such

Hal

Smith, Jr.,

Noble

priation bill. This latter magic
potion, like the present legal
but
forgotten
"Joint
Budget
Committee" or any of several

resig¬
of

Smith, Hague,

single appropriation bill, with¬
out asking for the single appro¬

After they are
aassed and signed by the

at

H.

Exchange Firms

created

the

nation

the Secretary
of the Treasury was shooting at
was, as he admitted in effect in
his memorandum, was a scheme
to achieve the objective of the

reasonably
simple. At the present time
Congress appropriates in sepa¬
rate appropriation
bills, funds
for the supply and support of
the Federal Government. These
bills go through the hopper one
outlines

The

has been
the Asso¬

of

va¬

by

Actually what

budget."

eral

-

Stock

a

cancy

idea.

ConFed-

plan "to improve
gressional control of the
ity,

of

fill

to

new

C.

Wm.

Roney,

Detroit,

Governor

a

ciation

deals
and
new
balances,
looks to
members of Congress like day
dreaming on a gigantic scale.
They wonder who it was who
sold George Humphrey such an
striking

and

C.

Co.,

&

elected

and every
thousands of

of

tens

of

items

astonishment of Con¬

the

Roney

each

into

again

ly

one

To

Exch. Firms Ass'n
William

morning, without going tedious¬

can

fort.

gress,
turned

Roney Governor of

they could be
minute before

thai

delivery, like the size of a ham
Mrs. Jones' party Saturday

"

*

and

here

oar

an

for

without visible ef-

be balanced

in

this and that.

think

To

progressive, dynamic, ever-ex¬
panding economy." It is the art
conjuring < machinery
by
Federal

on

cut down the last

or

the

put

there

gold.

which

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)

Houses, as well as the general
membership of Congress who

they had the magic for¬

tended

(This column is intended to re¬

execu¬

establishment; and among
conferees
between
the

tive

tentates, and fat cats galore got
taken

the

of

officials

among

Teletype BS-69