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rat,
PUBLIC UTILITY INDUSTRY
.
•
i I
Of
FEATURED IN THIS ISSUE
!
V E R S I T
MJCHIGAi:'
JiJN 19
igs
'
'
'
|
PERIODICAL
READING ROO^
Volume
187
Number 5752
New York 7, N.
Y.,
Capital Requirements in
An
Inflationary Era
See It
Almost two
decades have
passed since World
War II brought an end to the Great
which the New Deal had
for
than
more
vainly tried
of
second-hand impression of the
a
the
President, The First National
Boston, Mass.
to terminate
extensive
unemployment
|throughout most of the 'Thirties.
no
banker who advises utilities to
hardships
enough
prevalent
related
sonal
to
income
of
individuals
has
suffered
very
during the slack months that have passed
no>v» expected to improve in the months
immediately ahead.
"unemployment." has become
noire
so
be
not
the
to
been
a
tolerated
that it
that
it
is
sort of bete
ment
the
War
act
II
was
so-called
full
be
But
fine
I
being formulated which commits
press
I
D.
brace
am
and
our
inflation
or
that
would be turned
time
a
—
when
a
economy
softer than
is
Continued
Continued
DEALERS
more
would
to meet their
page
58
Institute
govern¬
I
think
McAfee
that
own
a
and
more
the part
determination
on
obligations in the
American tradition and to face
cou¬
rageously challenges of a scope and
In
line with
complexity never before encountered.
this spirit of examination and evaluation, I look upon
Continued
address
*An
♦An address
on
And
of many individuals
J. W.
46
page
at what they are doing in
there is detectable
by Mr. Brace before the 26th Annual Edison Electric
Convention, Boston, Mass., June 10, 1958.
Electric
Institute
on
page
by Mr. McAfee before the 28tH Annua)
Convention, Boston, Mass., June 9, 1958.
40
Edison
appear
State, Municipal
in Today's PICTORIAL SECTION.
and
U. S. Government,
if
UNDERWRITERS
State and
Municipal
Securities
telephone:
and
BROKERS
STATE
DEALERS
and
BONDS
INDUSTRIAL
RAILROAD
PUBLIC
CHEMICAL
&
CORN EXCHANGE
DEPARTMENT
15 BROAD
and
ON
STREET, NEW YORK 5, N. Y.
Dl 4-1400
Bond Dept.
Net
To
Teletype: NY 1-708
Active
Dealers,
Markets
Banks
Maintained
and
Invetoent
•ities
New York Stock
American
Stock
CANADIAN
Capital
of
3
Due
Canadian Exchanges
CANADIAN
Exchange
STREET
&wl/uv€4t COMPANY
Chase Manhattan
BANK
$200,000
Commission Orders Executed On All
Exchange
NEW YORK 4, N. Y.
DALLAS
Exchange
the
Province
of
Municipal Bonds
Quebec
% % Debentures
for California's
September 15, 1966
Expanding
Payable in United States Dollars
DEPARTMENT
Price 97 Vz
to
Economy
yield 4.15%
Teletype NY 1-2270
25 BROAD
FIRST
Stock
CITY OF QUEBEC
SECURITIES
Members
York
Brokers
1832
ESTABLISHED
New
C-
35 offices from coast to coast
Dealer
T. L. WATSON &CO.
THE
&,
120 BROADWAY, NEW YORK 5
TELETYPE NY W26Z
Distributor
•
Members
EXCHANGES
•
BOND DEPARTMENT
REQUEST
Harris, Upham
OF NEW YORK
Company
AND AMERICAN STOCK
CABLE: COBURNHAM
Underwriter
Bonds and Notes
ARE NOW AVAILABLE
THE FIRST NATIONAL CITY BANK
Burnham
Housing Agency
FIELD REPORT
UTILITY
SECURITIES
MEMBERS NEW YORK
ST., N.Y.
Public
LATEST
FOREIGN
BANK
ROND
MUNICIPAL
COPIES OF OUR
HAnover 2-3700
30 BROAD
•
i
I •»
PICTURES IN THIS ISSUE: Candid photos taken at BOND CLUB of NEW YORK 34th An¬
nual Field Day and MUNICIPAL BOND CLUB of NEW YORK Annual Meeting and Outing
in
DIRECT
WIRES TO MONTREAL AND
MUNICIPAL BOND
TORONTO
Doxmion Securities
Goodbody & Co.
Grporatkh*
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
•
PERTH AMBOY
115 BROADWAY
NEW YORK
1 NORTH LA SALLE ST
CHICAGO
40
Exchange Place, New York 5, N. Y.
Teletype NY 1-702-3
WHitehall 4-8161
DEPARTMENT
Bttttk of Antrum
NATIONAL
ISES? ASSOCIATION
300 Montgomery St.,
San Francisco. Cslif.
J
-j.
thought and action to achieve new
high levels of American accomplish¬
ments.
full steam.
on
>}
Further, they are demanding eviof
vigorous, constructive
be¬
printing
many
i
dence
no
thinking rather of the persistent
steady erosion of the purchasing-
i-
which too often they have been con¬
tent to take for granted.
the
of our dollar over the last
trend which is continuing even now at
our
:
ment, economic progress, and other
important
aspects
of
their
lives
would
the
on
in
eyes
science, education, defense,
or
power
two decades
new
persist.
10 years,
currency
valueless
come
to
to
consider, I have
of
worry
that
sense
Lloyd
! 12 ■
believe that a form of New
England conscience has
begun to show itself throughout the
nation, and I view
it as a very
healthy sign. Americans
everywhere seem to be looking with
a
to 1965, the period which
up
should like to
serious
likely
seven
unemployment is to be prevented in
i
or
circum¬
present
not
Over the next
Naturally, perhaps, the differences of opinion
how
recession
a
inflationary poten¬
that
are
roughly
perpetual.
to
underlying foundation of free enterprise
projects, the need to place public power on an
equitable competitive basis with private power.
terms and develop my rea¬
perhaps you will join in the
sons,
nation to the prevention of
of Edi¬
year
Stresses
if I may be allowed to de¬
conclusion
employ¬
In the Centennial
revenue
which, in other
words, would exceed 1957 performance from five to six
my
stances
widespread un¬
employment. Strangely enough, full employment
is regarded
apparently as synonymous with some
sort of economic millennium—and that
despite
'as
either
should stress the
the fact that it is in the
poorest and most back¬
ward countries that full
employment is
*
of $221 billion and $50 billion in
upon
tial.
is natural
when the
con-
invest- It
an
light, 1979, Mr. McAfee visualizes exhilarating prospects of 665 million kilowatts,
plant investment
requirements of the utility induoiry
not to be and will
of about $4 billion.
ment
who is speaking, it may seem
strange that a discussion on capital
even
World
to
seems
depression, depending
enough, per¬
inevitable, that in the minds of the
politicians at least it is a condition equivalent to
preventable disaster. So it was at the end of
haps
record
I
period that
a
15% million kilowatts
son's electric
dollars, by 1965.
In
public mind, and the people have
often told
at
d
re-
in all these
is
But
a
struction in year of
times.
ahead
years
developments, reviews
markable past record, and
depicts for 1958
eight
compared to $16 billion total capital raised in past
12 years, and
projects $550 billion G. N. P., in 1957
un¬
per¬
little
and
to at least temper some of the
stresses which
expected to make themselves felt and
years,
unemployment insurance and some
have tempered the rigors of such
unemployment as has actually developed. In
point of fact,, thanks largely to what are known
other programs
payments"—that is payments
work performed
currently—the
Electric utility industry's
spokesman looks2I
into future electric needs and
(1) raise capital early
(2) invest
in added
capacity on a counter-cyclical investment spend¬
ing basis. Mr. Brace particularly explains
why inflation¬
ary environment will be with us and then
supplies data
showing capital needs will tend to exceed supply, marked
by return to higher interest rate level. Sees utilities enter¬
ing financial markets for roughly $25 billion in next
In the present
"transfer
be
may
[recession,
as
Retiring President, Edison Eleetric
Institute
President, Union Electric Company
Presaging factors determining difficult
financing problems
seeking capital are delineated by Boston
more
.
By J. W. McAFEE*
Bank of Boston,
ahead for those
| the labor force of the nation today has
/than
:i
Obligations and Challenges
To Electric Utility
bdasby:
By LLOYD D. BRACE*
Depression
half-decade. A
very large part of
a
Thursday, June 19, 1958
f
t
The
Chronicle
Commercial and Financial
. .
Thursday, June 19, 195$
.
(2714)
2
f
The Security
Banks, Brokers,
For
Dealers only
In
participate and give their reasons
Bought
Sold
—
Listed
—
Woods, St. Louis, Mo.
Members New York Stoek Exchange
two
may
for
hog-feed are
items which many investors
easily overlook in searching
sound and conservative in¬
vestment val¬
but these
ues;
Hanseatic
.
above
and5g ra i n
WOj th 4-2300
BOSTON
•
Private
New York 5
Teletype NY 1-40
rina Company,
Cities
to Principal
Pu¬
Ralston
located
on
Checkerboard
in St.
Square
Louis,
tices
of
ffcpONNELI&fO.
for farmers up
Mississippi River.
Little did these great entrepre¬
neurs
realize that a little over
a
half century later, total sales
and
120
mule
feed
and
Members
American
down
the
Exchange
Exchange
BROADWAY, NEW YORK 6
TEL.
REctor 2-7815
almost a half
billion dollars.
The actual sales
total for the fiscal year ended
30, 1957, was $438 million
all-time high for the com¬
Sept.
—an
,
,
The current rapid growth
company is indicated by
comparison with the sales figure
for the first full postwar year,
when sales at that time totaled
only $160 million. ,
*
Many individuals instantly rec¬
ognize the red and white check¬
pany.
Trading Markets
of
Overnite Transportation
Bank of Virginia
Alabama-Tennessee Natural
7.
Gas Company
v
.
to
amount
would
'
the
which is
erboard design package,
Tropical Gas Co.
a
,
sight
.familiar
throughout the
land; but few realize the magni¬
tude of the business. Total assets
Scott, Horner & Co.
Lynchburg, Va.
LD 33
Tele. LY 62
ago—all
as
anced diets of livestock and
INVESTMENT TRUSTS
INSURANCE COMPANIES
The additional income pos¬
sibilities through the sale of
worthy
Call
of
Options
which
investments
able
the
of
our
fiscal .year-end.
year
butter.
and
.
products
.
To
those
to
who
The
success
division is
of this
readily understood after one
opportunity to visit
the huge research farms located
at Gray Summit, Missouri, near
St.
Louis.
This research farm,
had
has
on
mark
duplicated in successive
was
more
Booklet
ton
400,000
first
months.
interested.
Ask for
the
In fact,
the
established
sales
that
time
are
How to Use
Stock Options
an
Members
Put
& Call Brokers &
„
Dealers Assn., Inc.
120 Broadway, N.
Y. 5
BArclay 7-6100
1.957,
earnings of more than
net
For
the six
31,
1958,
months
sales
net
ended
March
amounted
to
$238,759,000, or
872%
above
a
year ago. Net income totaled $8,012,000 and equalled $1.25 per
common
a
In
gain
view
above,
it
This
share.
of
4%
of
is
the
represents
year ago.
factors outlined
over
a
estimated
that
net
income for the current fiscal year
should be well
above that of the
progress
being made at the research farm,
and enables them to more suc-
mately 4 to 1. The capitalization
consists of long-term debt of only
of six, contains 778 acres.
On
practically every
animal
agriculture is
this farm alone,
Filer, Schmidt & Co.
de-
a
The company was
incorporated
Empire
Co., and this producer of glass
forming equipment is now one. of
Emhart's important divisions. At
in
1922
Hartford
.the
as
two-thirds
least
production ,/of
of
the
glass
type
tested
tion,
of
and
the
researched.
company
In
each
addi¬
week
brings in its dealers from a wide
area,
who are able to see and
learn
at
first
hand
the
BOUGHT
—
SOLD
♦
'
country's
at
M0RELAND & CO.
Members
a
Exchange
Stock
Midwest
Stock
Detroit
Exchange
Penobscot Building
1051
DETROIT 26, MICH.
containers,
142 million gross annual
rate, are made on Hartford Em¬
pire machines.Comparing
this
now
.
Branch
7
DE75
WOodward 2-3855
City, Mich.
Office—Bay
figure with .the 54.5 million gross
of
1940,-and reckoning with
trend
nonreturnable
to
one
visualize
can
formidable
the
bottles,
rather
some
production figures
ahead, calling for
an
attendant increase in machines
about
previous year and cover the 25
cents
quarterly dividend by
a
wide margin.
At the last fiscal year-end, the
current position of the company
was
strong, with total
current
as:ets exceeding total current lia¬
bilities by
a
ratio of approxi¬
one
1
Such
scription
to fit Emhart Manu¬
facturing Co. rather handily.
produce
$14 million equalled $2.28 a share.
>
Com. & Pfd.
mar¬
■
would appear
consumes
requires
EQUIPMENT
rea¬
a
years
which to make them.
uating Hartford
be
remembered
in
that
it
serves
as
an
well, and
competes in glass fields other than
•
LEADS?
s
When eval¬
Empire, it must
international market
■
LOOKING
on
the
containers—tumblers for instance.
Approximately of equal impor¬
tance is the Standard-Knapp Divi¬
sion, which turns out a complete
ing these figures over a ten-year
represents period, it appears reasonably log¬
line of automatic packaging ma¬
ical to assume that the sales curve
the most important phase of the
chinery. These machines, one of
for Ralston Purina should trend
business, and is presently estab¬
Emhart's important contributions
lishing new records in tonnage sharply upward over the years
ahead, particularly to the field of labor saving equip¬
sold. Latest sales figures for May immediately
in view of the company's domi¬
ment, are completely automatic in
indicate another new record of
doing the job of packing, gluing,
nant position in the industry.
over
400,000 tons for the month.
Earnings for the company also /sealing and labeling. Another de¬
March and April sales were also
velopment of this division's reover
the 400,000 ton level, and are pointing upward, and in the
last fiscal year ended Sept. 30, ; search is a machine for automat¬
this is the first time in the his¬
April
glad to explain the
will be
subject
/
,
these
MONROE AUTO
stment
ket evaluation.
Borchardt
Herman
approximately 350 eggs, 160
pounds of red meat, 30 pounds of
poultry and 750 pounds of milk,
or
its equivalent in cheese, ice
cream
n v e
given
that
each
Bankers
COrtlandt 7-5680
ground,
sonable
in
alone
Investment
&
111 Broadway, N.Y. 6
consideration,
prospects over the next ten years
when related to the huge growth
States
Tokyo, Japan
Brokers
be well worth
i
to me to hold such
population anticipated during
period. It is reported that
the average person in the United
Yamaichi Securities Co., Ltd.
then it should
poul¬
division
chow
three consecutive months.
firm
the
long-term growth prospects,
stock of Ralston Pu¬
appears
Ine.
v
of
cies, but with
firmly on
common
rina
York,
Affiliate
feet
favor¬
offer
tenden¬
tive
or
at the
There are
If you multiply these 1,500 pounds
actually five major divisions of
of feed by three million — the
the company. These include: Pu¬
increase last year —
rina Chows, Ralston cereals, sani¬ population
tation and farm supplies, soy-bean you arrive at 2,250,000 tons of
annual
feed
as
the
increased
processing and grain merchandis¬
amount necessitated by one year's
ing. Each of these divisions op¬
erated profitably during the last population growth. By compound¬
last
tory of Ralston Purina that sales
were maintained at this level for
are
investigation. A
representative
practical
imagination
and acquisi¬
simply correct feeding
methods, largely developed and
sponsored by the company.
To those who are in search of
try,
New
of
with
dowed
result of bal¬
a
Securities Company
agement en¬
*
yielding 40% more beef,
better
quality than 15
of
and
years
write
or
Yamaichi
a success¬
with a diversity of
products, each / with intriguing
growth possibilities, plus a man-
1,500 pounds of balanced rations
for feeding poultry and livestock.
$178,879,000
to
amounted
The
PENSION FUNDS
and
encounters
one
than 15 years ago; beef cat¬
are
Call
company
be generally unaware
rapid strides being made
stock and
poultry
fiscal year.
Put
When
ful
feeding. ' As an illustration, the
average hen today lays 45% more
tle
information
current
Emhart Manufacturing Co. ;
scientific
eggs
/
For
may
the
branch offices
our
JAPANESE
San Francisco, Calif.
Sutro & Co.,
•
Many individuals who are un¬
familiar with agricultural prac¬
in
Direct wires to
STOCKS
Research
various types
of
sales
really have
an occasion to use either chickenfeed or hog-feed, do not realize
that the company dates back to
1894,
when
the two foundingfathers carefully mixed
various
types of grains to provide horse
Since 1917
Director of
any
ment field.
RIGHTS & SCRIP
Stock
Stock
to
Birmingham, Ala,
Mobile, Ala.
BORCHARDT
: HERMAN
of feeds.
Most urbanites, wtio
York
current
The
ago.
year
ing success stories in American
industry, as well as in the invest¬
Specialists in
New
a
$32 per
$29. ,to
between
of
area
share.
NY 1-1557
New Orleans, La. -
holding up surpris¬
are
additional
E. T. Boll
of
one
outstand¬
the
HAnover 2-0700
measurable extent in
the price of animal agriculture
products. Still another favorable
factor
for
Ralston Purina
has
been
the rather
severe
winter
weather in many areas
of the
country. This has accounted for
felt
co m-
bined to make
FRANCISCO
SAN
•
Wires
have
CHICAGO
•
PHILADELPHIA
sing
York Stock Exchange
American Stock Exchange
Members New
Members
million and
$28
recession in business has not been
American
120 Broadway,
Steiner, Rouse & Co
19 Rector St., New York 6, N. Y.
ingly well, despite large produc¬
tion increases. Egg prices are well
ani¬
feeding
p r o c e s
im¬
year
checkens
similar
in
Fran¬
Sutro & Co., San
cisco, Calif. (Page 2)
7 search,
cattle prices are the
since
1952.
Prices for
highest
mal
Associate Member
Stock Exchange
,
early
items
1920
Established
of Re-
Borchardt, Director
6,421,162 shares
ple are apt to overlook is the fact of $5 par common stock. There
that
farm
profits from animal is no preferred stock outstand¬
agriculture continue high.
Hog ing. The common stock is actively
prices are running at the highest traded in the Over-the-Counter
winter level in four years, and
Market, and presently sells in the
items and sev¬
Corporation
man
non-agricultural peo¬
trend which
large -tonnage
eral
Manufacturing Co.—Her¬
Emhart
portant factors in connection with
the
company's
favorable
sales
Ralston Purina Company
Quoted
the more
of
one
Bought—Sold—Quoted
(Page 2)
represent and, sell the
company's products in their re¬
spective areas.
:
Perhaps
Louisiana Securities
Boll,
Investment Analyst, Yates, Heit¬
ner
& Woods,
St. Louis, Mo.
Purina Co.—E. Ted
Ralston
cessfully
BOLL
TED
Analyst, Yates, Heitner &
Investment
Chicken-feed and
New York
particular security*
a
•re
E.
•.
Their Selections
(The articles contained in this forum are not intended to be, nor
they to be regarded, as an offer to sell the securities discussed.)
Securities
•
for favoring
Alabama &
Participants and
Forum
which, each week, a different group of experts
the investment and advisory field from all sections of the country
A continuous forum in
Public Utility
Unlisted
I Like Best
,
Week's
This
A
or
over
Dunhill
their
FREE:
a
quarter of a century
firms
financial
have
looked to the
List
International
mailing
list
Mailing List Catalog
dunhill
Co. for
requirements.
on
Request
INTERNATIONAL LIST CO.; INC.
NEW YORK 16: 444 Fourth Ave. MU
6-3700
Washington St. DE
2-0580
CHICAGO 5:55 E.
ically weighing and packing bacon
slices, now used by large meat
packers,
of
and with the potential
being used for other commodi¬
$4vmG^>
ties.
Another contributor to the field
of labor
saving is the V & O Press
Division, which produces machines
stamping
out
metal
parts.
for
V
O
&
finds
its
markets
in
the
aircraft, auto, electrical, and other
leading industries.
Chances
the
found
and
are
plastic
in
bottles
medicine
to
be
cabinet
kitchen
were
made by Plax
This leader in the field, is
owned in equal shares by Emhart
Corp.
and
Monsanto
genuity
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX :
good that most of
squeeze
your
N. Q. B.
Chemical.
Its
in¬
in
finding new applica¬
tions for plastic products molded
Continued
19-Year Performance
35 Industrial
FOLDER ON
page
63
7 ;
REQUEST
National Quotation Bureau
Incorporated
46 Front Street
on
of
Stocks
? New
York 4, N.Y-
Number
187
Volume
5752
.
.
.
The Commercial and Financial Chronicle
(2715)
The Challenges to Free Enteiprise
INDEX
By HON. STYLES BRIDGES*
Articles and News
-
U. S.
Expressing
Prospects for Business Recovery and Moderating
Recession—Gordon W. McKinley
fears about the "insidiousness of the domes¬
grave
enveloping us," Senator Bridges
warns electric utility
industry that it is on the front lines of
defense against expanding government and would be the first
succumb
unless
present trends
reversed.
are
The
and com»aj»y
the
4
The Middle East and Oil Industry—R. O. Rhoacles
tic brand of socialism that is
to
Keeping Our Heritage of Freedom Is
—William
A.
Easy Task
no
McDonnell
14
Look Forward, Forward March in American Banking System
"fuzzy-minded liberal" and the
the citizen's
over
dwelling unit, and the possibility of greater control
over
rea¬
obsoletes!
and
sees
no
need to
USSR with Federal
race
continuously
It is well that we
re-emphasize the underlying spirit
behind our Revolution—the love
independence
accept
refusal
the
and
preserving
government
of
able.
Today,
the
it
independence
the
all
double-
about
the
of
ABOUT THE
read
—J.
pa¬
belongs
realized
we
that
Enemy From Within
of the Soviet Union
J.F.Reilly&Co,Inc
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30
Your
current
midst
lieve
lieve
we
What makes
freedom and liberty.
eral
in Russia
single objec¬
tive, and this is making the Rus¬
sian state the most powerful in
the world and the Communist
Party the most dominant force in
the
we
humanity
more
and
when he
pater¬
government,
when
he
votes for government controls, or
when he votes for government to
manufacture
one
liberal
is
What
of
not
the
alone, how¬
unthinking
materialist
should be careful
deciding and
things that mean
seeking those
happiness for
So, our objectives are mani¬
fold.
in
our
midst with
charity
made
that
our
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great—nor a dole, nor a welfare
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vidual
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And
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if
or
best
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it's
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world,
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50
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a consequence,
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Observations—A. Wilfred May
today in
Fed¬
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bureaucracy growing
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It is a
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have
t|J
Expansion Program Opposed by Investment Bankers
he
government,
these United States we see a
During World War II, America
showed what it could do when all
*An
and
price
could do.
military
the
that too is it.
its energies
<:•
Survey Committee, Headed by Arthur Griswold,
Forecasts Record Electric Power Expansion
no
ence,
nor socialism.
Instead, it
housing the indi¬ was achievement by the individ¬
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housing he ual, and his pride in that achieve¬
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erators, television sets, that's it. If man, however humble, that what
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33
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self
Exchange PI., Jersey City
EEI
of his basic needs.
use a yardstick that reflects the
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losophy: "The country owes me a
jective is the attainment of the living"?
maximum happiness for each in¬
That attitude, of course, is not
dividual with the individual him¬ the American tradition. It wasn't
If
1
DIgby 4-4970
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Association of America
more
relative progress
to
him.
TVA
problem more
fuzzy-minded lib¬
he is advancing
nalistic
ever.
being made,
of
cause
The
31
thinks
who
advocates
the world.
In measuring
#
our
difficult is the
Salt Lake City Stock Exch.
Spokane Stock Exchange
Employee Information Program Is
Get There?—Sherman R.
coun¬
handle.
can
system is producing better results
we are under our system of
one
our
Top Management "Tops"?—S. L. Drumm__
Broad-Gauge
up
must watch, but we be¬
we
than
to
in
faced
Tatum, Jr._____
Where Do We Go From Here—And How Do We
to this
threat and have done something
about it. The Communists in our
have
We
try.
The Communist Party
25
Gros
Mandatory—Chas. E. Oakes
ple deliberately plotting on behalf
is dedicated
R.
28
A
lieve this nation should adopt its
»
Oblivion—Robert
26
We know there have been peo¬
tendency of many to be¬
that
Russia's
communistic
♦
19
BeLorenzo
to
Opportunity—Elmer L. Lindseth
Is
Tlie
I would like to comment on the
G.
Countdown
The High Cost of Redemption—Admiral Ben Moreell____
have.
The Soviet Threat
HYCON MFG.
9
10
Competitive Atomic Power: Today's Challenge and
Bridges
version of socialism.
CHEMICAL
3
Ely
—Anthony
The
should
they
internal threat from those who be¬
own
HYDROCARBON
—Cover
Inflationary Era
an
Better Selling Is a Must—C. A.
thinks
government
second,
we'have the
INDUSTRIES
—Cover
McAfee
Shape of Things to Come—Ralph J. Cordiner
The Place of Public Relations in Modern Management
get what they want, not what the
And
W.
—Owen
this
threat
Styles
ADVANCE
INDUSTRY
The
enterprise.
Only through free enterprise
can the people be certain that they
Sen.
UTILITY
The Challenges to Free Enterprise—Hon. Styles Bridges..
Electric Utility Industry Continues to Forge Ahead
is also true of free
posed by So¬
cialist Russia.
49
—Lloyd D. Brace..,.
to
it's
edged
threat.
First, we have
the
military
and
ideologi¬
cal
ELECTRIC
Capital Requirements in
He said
Well, I think
people.
time
!
Obligations and Challenges to Electric Utility Industry
realized that
we
press
BELLANCA CORP.
■
a
about time
was
35
or
have
Washington
a
DIXON CHEMICAL
3$
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Outlook for World War III—Roger W. Babson
talk on freedom
made by that news¬
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freedom
with
war
a
paper's managing editor.
o u r
faced
reporting
per
intoler¬
was
Temple__
fear—we will do it!
no
item in
news
a
concen¬
freedom,
our
The Economic Outlook—Alan H.
The Economic Situation—Hon. Sinclair Weeks
three weeks ago, I
or
17
22
objective,
upon
a
single
whether it be winning
Two
that
must
we
trate
faith—have
any
action
Any time
war.
Dept.
STREET, NEW YORK
16
Small Business Today and World Events—Wendell B. Barnes
projects.
power
WALL
99
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S. Strike
Present-Day Problems and Long-Range Outlook
—Philip M. Talbott
TVA expansion and
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1
tempting
as
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Telephone: WHitehall 4-6551
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Now Is the Time to Build—Clifford
and balance in government; deplores
son
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cash
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$600 Billion Economy
a
—Joseph C. Welman
educa¬
Refers to work of present Administration to restore
tion.
a
almost
14
Incentive Commercial Research Key to
—II. Leslie Hoffman
private hands to the state, increasing control
is
as
13
"unthinking materialist" for instigating the growing misuse of
the power to tax, transferring the functions of capital from
to
—is
12
;
Popular Western—Ira U. Cobleigh__
noted
VICUNA
6
The Electronics Industry: A Look at the Larger
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New Englander singles out the
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producing plant which would
suf- high and capacity excessive, for
recession in some chance occurrence such as a
was not al- cutback
in government defense
cutback would not have been
Prospects for Business Recovery
And Moderating the Recession
believes
we
reached
:
V
to
reces¬
both
to
an
ommendation
ment
reached?
first/quarter of 1956.
than
the
in
dmable
a
intelligent rec¬
regarding
govern¬
immediate initiating forces
turning business activity down¬
are easier to spot than are
that the forces which touched
the
year?
of
basic" causes'>of the
the
current
downturn.
1957, it is clear
off
recession
business
three
were
(1)
questions
after
Suez,
—what caused
government defense orders shortly
after mid-year, and (3) the slow
recession
McKinley
avoidance
This
of
the
is no doubt due
fact that our em-
question
to
partly
the
ployers and our usual audiences
not much interested in the
are
past; they want to know what is
going to happen in the future,
Our reluctance is also due, how-
to the fact that most of us
quite sure what did cause
recession. 'We have a number
ever,
not
are
the
of pat answers,
the
more
more
we
we
the decline in exports
(2)
the cutback in
but
tant, yet it is
the question to which economists
seem to
devote the least amount
time.
but i am sure that
about it the
think
worrv
about
our
»me
same
Wonth ^
18 month
hich
.
increased
goods
only
by
most astute
would lead
IT"and over-capacity was the
I ell,
result. The fact is, however, that
saving did not rise and consumer
'
even
and the
economist into believ-
expenditures
strong.
Aside
real
steady decline in business
purchases of durable equipment
beginning in the second quarter
0£
^
year
Declines in these
three types
of spending or orderpreceded the downturn in
•
Qross
National
Product
and
pre-
ceeded the beginning of inventory
liquidation,
'
and
goods during this year
half.
This meant that one
a
whole
of
segment
the
TJLthT.n overall
the Sh
started,
and economists did some
ihe pattern of consumer expend i-
lures to which I referred earlier,
the ^consumer was not the villian
the
economy
,
1954 recession
duraU^goods.
Now
an
^ -
qneroan go oh/
camroi
from this
industry to
one
lu"sumc'
not to a subsequent
S
' propensity
Capacity—Fiscal Policy Formula
Enunciated
hot an accurate description of the
real world. Recovery began then
and
labor,
, and-out
^o'conTume
an
left idle capacity, idle
rising inventories in
spending
re-
but
u of J957 resulted from an
misiudmnent datin®
1 the waV back to the beginning
''ia oui m bjua^meni aatin*
a11
t
begins with a rise in- busijnvpsfment which distributes
cession
more consumer expenditures, is a
pntirpKr
entirely diffprpnt kind of indi.s- pouon wnicn I nope is confined
different kind of indus- notion which i nope
+y*v
trip* rhfltipp in p o n s u m p r to economic textbooks since it is
from
sudden
a
in-
elrtly'^ ^me ^li?h ^cour^el
"even 'labo?0"^ trot®
shifted
hot
,|)e clec]ine in durable equipment
The notio
exDenditures
was
buying and eventually to the
ventory adjustment.
The over-
in
"P'^ex^nditoes. pusiness le
The notion
tnat recovery irom a
initial chpngp-in consumer spendine'
ing, to build- an explanation for
to puna an exnlanation 101
and
increase
It
sudden realization that capacity
h»d been overbuilt,'which led to
anCTampie^ine
declipejiii consumer spending
ail.
a
The
example
as an
clearly 1?" i^^on as
was
recession
at
in mind
ervfrom'the
lo1, th.is
.
vfroducts
thpir
f
To explain what I have
recession
reason
...
segmented
on
the
and
,
continued
very
from the shift in
pretty careful thinking about the
forces,which were generating the
of durable
before
Looking back to
of
that
so
old sch00l are
irrational actions
recession develops,
the
of
.
weakened
mot
that some bust-
true
the soundest businessman
of the
crucial
been a rather general overestimatron of the volume of demand.
gn
tQ
I* I were following the strictly
orthodox explanation. I would say
Bl,t my argument is basically that
of this point that savings in the
a-1 '
of events inevitably economy; began to rise, with the
is
It
nessmen
This is more
increase,
was
byButKdu° inf fte
But during the
ward
Gordon W.
normal
a
economy
is market apparent1956 it finally had
in late that there became,
for
demand
estimate
who
-
the
durables and services than in
to busi¬
ness i during
the remainder
pen
—is by far the
most impor¬
the' 'third
the third
In
In
quarter oi 1957 consumers were
spendmg $20 billion more on non-
policy.
The
What is
likely to hap¬
the
.
..
ouartersgof95l69l7nd
quarters of 1957.
prerequisite
intelligent forecast of
is
the future and an
(3)
these
"Will this sort of
thing be repeated over and over
finally,
and
nessmen
downturn
first
equipment expansion and that this
new plant would never come into
operation.
As long as capital expansion
continued during 1956, consumer
in the first quarter of 1956, conincomes were raised sufficiently
sumers
abruptly lost interest in in the future?".
to keep even the new plant comdurables.
Their expenditures on /,
I ahl not taking the position that
ing into operation at a high per
non-durables1 and services conbusinessmen
ar| s0 stupid that cent of capacity. But when most
tmued to move forward strongly
,
.
..
know how l0 es_
of the new capacity came onto the
capacity, and
recession
the
of
the
The
capacity not
building of the new
pr0vide sufficient income to buy
the increased flow of products?",
not because 1 am sure $ 4 0j; a billion. Allowing for the ing that capacity should be exconsumers
1 know the answer, biit because intervening nriee rise
"Si11It "S".S panded further, unless these bus!some
explantation of the cause actually lowered their purchases
bot¬
been
non-
plant, and these incomes were all
going over to bid for the output
of existing plant. Putting it jn
another way, the level of eonturner incomes was sufficient to
clnve plant; to capacity at the beginning of 1956 only on the assumption that incomes would continue to be supported by plant and
answer it
constitute an
attempt to answer three questions
about the current recession:
(1)
What caused the recession?
(2)
My remarks will
of
questions are "Why does the overfrom capacity develop?" "Why does the
away
—
Following the consume r durable
goods buying splurge in 1955 and
^ disagrees with text books' in placing consumer spending's
U;;
^importance ahead of investment spending.
tom
expenditures
goods and
toward
durable goods and services.
as
Has the
nothing new about
general over-capacity,
Obviously, a recession must invoivs over-capacity.
The real
Now, there is
me idea of
beginning
durable
1956, and (2) consumer income
the output of full capacity so
disequilibrium between income and
the
to
sumer
only able to demand
prevent
penditures, etc.
of 1956,
at which time a pronounced shift
occurred in the pattern of con-
that income is supported by new plant-equipment
expansion that does not come into operation. Author finds
overexpansion of production beyond the level income can support stems from business being biased by demand, and that an
unexpected cutback, for example, in government orders can
touch off a downward cumulative decline. Proposes a formula
long
.
cause
back
stronger recovery base if taxes are cut to increase purchasing
jpower. Turning to what is viewed as a seriously neglected
topic, Dr. McKinley attributes downturn to (1) consumers'
significant shift in demand—at an earlier date than generally
level that is
comes,
Up
I have held that the
of the recession dated
now,
basic
,
of
process
correction, layoffs, decline
recession.
the
of
cause
come into
inventory
in indecline in consumer ex-
cumulative
search deeper for the
We must
not
the market for some
time, and thus were distributing
touch off the whole incomes equal to the cost of this
to
orders
*•.
-
Demand
Consumer
in
until
either in April or May, and foresees $435
billion fourth quarter G. N. P.—$13 billion over first quarter,
without a tax cut in June, and a $447 billion G. N. P. with a
realized—commencing early in
which
economy
Shift
sion's low point
:
produce a
...
of Economic and
Prudential Insurance top economist
to
ready prone to one.
basic
Investment Research
Insurance Company of America, Newark, N. J.
Prudential
an
McKINLEY*
By DR. GORDON W.
Director
ficient
I
have
gone
uiruugh
all
this
it will begin in this lecession,
mewhat laboriously not simply
through a rise in consumer buy- M,m^wuai<^uuuiiuumv uai &impiy
a® cales nirked un
business
as an explanation of the present
goods industry is not a big part ln*>- As sales picked up, business
rec,essjon but because I want to
nf ihe
economy
Durahle gooas, men were of course encouraged
;T14 oui oecause i
oi
tne
economy,
uuiaoie eoods
raDital exnanset the sta8e lor a Policy recomeven in normal times, account for
l? »egin some new capital expan
mpnda+:nn
r+ .ppm(, to nie +bat
nnlv about 13% of total consumer
slon> an(t this expansion aided the menaation. it seems to me tnat
only aiiout JoVf) oi total consumei
»
POnsuJer pxnpnditures l)er ceilt of capacity should play
whole segement of the econTt is trup that the durable
omy.
it is uue tnat tne auraoie
one
nmv
friye 111 consumer expenditures.
larger role in guiding fis-^he upward movement having cl V
?•
RT
..
.
guiuing u*
started it tended to cumulate
cal Pohcy than it does at present,
very quickly following a reduc- oxlcc started, it tenaea to cumulate
for iiistnnrd that the I'isinstance, tnat tne us
vious that the small reduction m tinn in demand 101 their nroducts so that by the beginning oi 1956, ^llPP°se>
tion in demand for tneir products,
difficulty in sun- cal authorities set 85% of average
spending accounted for. by- these
DlviL the
burner capacity as their principal guide.
taf. f would1
bave been suf- difficult and expensive to ware- Plymg the tremendous consumer (I will assume also that better
produce a real recession house, and they have a large demand.
data are available so that some
,,
,,
„
Although these three forces pre"pitated the recession it is ob.
kaf l\ no* aeea that a basic imbalance had developed in the
economy.
From the first to the
durable goods
spending.
But the
indnstries
inaustiies
normally
normally
off
on
lav
lay
men
men
For these
fall in the demand for
capital investment.
reasons,
a
Income
Generated
Needed
rough overall measure of capacity
could be calculated.) Then as out-
But
Not the Output
goods has a much more
wirtosm-ead effect than would sav
widespread eiiect tnan would, say,
durable
At this Po'nt in the recovery, it Pllt, generally moved above 85%
logical for economistq and
ln
1955, personal income tax
luglLdA /or economists ana
ehnnld
hav* hppn raised
mand for services
businessmen to conclude that cap- ^ates ^VoaACl aave ^
i
J
periodic breathing spells. My at- the rise in capital construction
seivlces*
ital olant was not sufficient Most Theoretically, they should have
As i say, one could therefore
piani v\ as noi sumcieni. iviosx
rakp/'hv
nmonnt bv
temnt to answer this first question expenditures more than offset this
exnlain
the
whole
recession
in industries were operating at very
been laised by the amount oy
high per cent of capacity and con- which new capital investment was
is therefore undertaken with due
roinor decline. The fall in net
foreign investment was only $.9 terms of the
in
high per cent of capacity and.con- .
still rising.^'exceeding sayings.
humility.
i am attempting to Gf a billion. The cutback in Fed- aemana which first necame an- sUmer spending was J A ._.nsAng; term«
demand wnicn iuj>i became ap- ^ ^ at tbjs D0jn{ however that terms, let s ii«f env In practical
life lust say that laxc
Dccame dp
^
that taxes
.d
* PUJIJb nowevei, mat
' -.-.j J TP
-i^tinn hod
eral Government purchase orders parent early in 1956. In the Pru- ,i
*An address by Dr. McKinley before
dcntial
Business Forecast issued the mistake was made. The level
weie laised. If this action naa
was
more
the Forecasters Club of New York.
severe,
but even this
a tt he be shi n i n » o f Dece mti crlast
of consumer incomes which made been taken, consumer purchases
understanding of the forces which
,
cause
the economy
.
,
.
to take these
quarter of 1957, spending on
producers' durable equipment de-
clined by only $.2 of a billion, and
equivalent decline in the de-
an
a
»
——
wn.cn
apmann
S
consume?
i.rs.
it possible to drive most industries would have been less, and busiclose to capacity operation de- nessmen would not have been led
and sufficient ^ause of the dif? Pended heavily on the plant exto undertake so grandiose an expansion programs already under- pansion of capacity. Taxes should
for
which
we
were
ficulties
way.
We
were
using ' a
good then have been maintained at the
headed.
we
year
thfs shift
ANGLO AMERICAN
•
.
t
-
~
™
in fact
did
in demand
areu?
was
ttat
the basic
portion
of
labor
our
force
Continued
in
on page
Today, I would still say that the
shift in consumer demand
EXPLORATION LTD.
but the more i
important cause,
think about it the
more
convinced that there
(Listed American Stock Exchange)
basic
more
will
recession
we
Descriptive circular
on
cause—a
reappear
future
the
will
few
every
i become
was
an
even
which
cause
and
over
and
an
was
in
over
result
years
in
request
Income
vs.
•> t
basic
This
cause
are
pleased to
announce
the appointment
o£
unless
EDWARD M. HEFFERNAN
take action to offset it.
•
We
a
Output
is that,
as
our
out of a recession
into
a
period of prosperity, a
sequence of events invariably oc¬
155 Sansome
Street, San Francisco
economy moves
C. E. STOLTZ & CO.
Members American Stock
25 BROAD
STREET, NEW YORK 4
Phone—HAnover 2-1762
Exchange
Bell System Teletype NY 1-2532
curs
which
causes
over-estimate
their
capacity
which
the
flow
demand
for
beyond
of
the
level
incomes
will
A general over-capacity
thus ensues, and there is an ac¬
support.
companying tendency for
cessive
build
in
Regional Representative of
businessmen to
the
products and thus to expand
plant
as a
an
inventories.
ex¬
The
stage is then set, with inventories
Hugh W. Long
and
Company, Incorporated
Westminster
at
Parker
Elizabeth, New Jersey
55
1ST
Volume
Number 5752
.
.
.
The Commercial and
Financial Chronicle
(2717)
To
combat
the
hazing of
man¬
agement—and
suggestions.
Chips Now
popularity of the
together with the
so-called paradoxical market-bus¬
institutional investors.
by
their
irresistible
highlights the
ing
constant
the divergence
shares
this
the
r
issues
those
d
g e a r e
m e a
du
to
that
data,
in
tistical
by
funds
In
A,
Wilfred
buy
the early future.
logic
iii
i
into
"the
market"
for
intervening business fluctua¬
tions, its policy in issue selection
early
postponed,
or
money"
buys the
Is
as
recov¬
corporate
on
operation.
First
funds
because
of
too
process
easy
Henry T. Mathews With
be
the
it
(Special to The Financial Chronicle)
."
CHICAGO, 111.
Mathews
with
has
Walston
South
La
&
tough
about
who
a
buying
stocks
IBM
as
the
amateur
alike
professional
are
disillusionment
that
forgetting
and
off
a
Henry
T.
Mathews
Mathews who has been in the in¬
issues'
worried
"professional
Impact
-
of
the
Funds
Our prediction of the near-term
continuation of the concentration
in Blue
and
Chips, of both the growth
"good-management" types, is
chiefly based
on
the impact from
&
and
been
Knee-
Co.
no
than
Lehman Corp. Reports
Executive Elections
a
Street,
nounced
of the investment
company. Here¬
more
The
Lehman
New
tofore
the machinations of the one-share
that
continue
stituting
turn
sample
product
con¬
William
James
B.
has
an¬
Downing"
Vice-President
a
as
Treasurer
It
was
Dealers
tary,
that
complete
facilities
counter securities
Inc.
In addition
counter
ments
firms,
for
we
for
are
to
the
came
been
and
will
total
on
on
insured
new
1957 " week,'
claims
new
claims is issued
a
week
numbered
ahead of the
unemployment.
In the steel industry the June steel rush has
been much
bigger than expected. Both the mills and their customers have
been caught off balance, states "The Iron
Age," national metalworking weekly on Wednesday of this week.
It
states
that
the mills were counting on a June'spurt
by
hedge against the expected price boost in July.
specifying June delivery has grown to
unlooked-for proportions.
As a result, some June business will
carry over into July.
consumers
as
a
The
is due to
low
metalworking weekly adds, the June boom apparently
a combination of
price hedging and actual need due to
inventories. Among those caught short are several
consumer
of the
auto companies.
A lot of behind-the-scenes jockeying for
now going on.
The situation poses problems for the mills.
They are being
badgered by their salesmen to step up production on the one
preferred position
hand, but
on
on
steel order books is
.
...
'•
V.
>■•■;.•••..
.
f.?
....
Continued,
on
page
Announcing the formation of
D. H. BLAIR & COMPANY
..
Members American Stock
Planning Go.
42 BROADWAY
;
,
Planning Company,
.
July 10: New York City.
July 16: Newark, N. J.
July 17: Philadelphia.
Exchange
Exchange (Assoc.)
NEW YORK 4, N. Y.
Telephone: WHitehall 3-3980
Madison
Avenue, New York
City, will give a series of one-day
seminars on pension and profitsharing plans as follows:
Cable: "BLAIRINS"
The
over-the-
Form International
partnership will continue the business activities
formerly conducted by D. H. Blair & Co., Inc.
available
regular
market letters and special
company and industry reports.
Fidelity
GENERAL PARTNERS
(Spt-cial to The Financial Chronicle)
DENVER,
Fidelity
formed
Colo.
with
Seventeenth
a
—
International
Corporation
been
has
offices
at
818
to engage in
securities business. Officers are
Harlan
W.
Phillip
P.
Louis
and
Street,
Philip R. Egner
Robert W. Miller
Hyman L. Federman
Kenneth B. Ortmann
Harold S. Stonehii.l
Herbert M. Iselin
Charles J.
Member New York Stock Exchange
Miller
Sloan, President;
Pyles, Vice-President;
S.
Middlemist,
LIMITED1 PARTNERS
Secre¬
tary.
George, O'Neill & Co.
Incorporated
30 BROAD
Robert I. Cummin
Joins Ideal Securities Co.
(Special to The Financial Chronicle)
STREET, NEW YORK 4, N. Y.
Telephone: HAnover 2-2140
DENVER, Colo.
Hopkins
—
Russell R.
joined the staff of
Ideal Securities Co., United States
National Bank Building.
has
.
the other they are up against the problem of getting
Members New York Stock
George, O'Neill & Co.,
make
corresponding
elected Secre¬
associated with The Lehman
Pension
offering clearance facilities for over-thedealers
the
The report
issues and
maintain active Research and Trading Depart¬
affiliated
In
well. Mr.
as
Corp. in 1951.
625
marketing of seasoned
invited to contact
Labor reported.,
Workers filing new claims for
jobless pay numbered 321,600,
new low for
1958, in the week ended June 7. This represented
drop of 16,500 in the number of new claims from the
preceding
!
one-share investment.
new
higher than
The number of workers
drawing unemployment compensation
week in a row in the week ended
May 31
a
total of 2,827,600, the lowest total since the
first week in
succeeding Mr. Downing in
capacity. Mr. Williams be¬
..
seeking participations in promising
below to 1%
ago.
also announced that W. L.
Williams has
than a normal re¬
by way of dividends on the
Dealer Services
on
Wednesday of last
Bradstreet, Inc., show
1929.
The Pension
to
3%
millionth
Downing has been with The Leh¬
Corp. since its founding in
more
Approach
from
Secretary-Treasurer, he will
To Give Seminars
A New
was
two
"Ward's Automotive Re¬
man
sortment of consumers' goods "on
the house"; with the "free gro¬
ceries"
(as the lunch is called)
the
Corp., 1
City,
York
has been elected
another slap at manage¬
ment." He is further troubled over
as
and/or
volume
a
But the volume of orders
strued
vulner¬
'
Co.
hecklers
land
ability at their present recovered stockholder in a number of com¬
levels now perhaps imply a greater
panies who thereby gets a_ guided
risk than is constituted by
picking tour of stockholders' meetings,
up the temporarily "under water" cutting down on his meal expense
cyclicals?
and acquiring a considerable as¬
'
Chicago for
recently
Reynolds &
punishment and that your hon¬
est question might even be con¬
periods
the speculative
these
is
with
in
has
years
to
the
growth.
not
he
of
questions
frenzy's outrunning of the actual
Does
For
President
important and sincere
by making you feel
management has been subjected
and
of' past
followed
the
have
other
Minnesota Mining at 40 to 50 times
earnings,
year
week.
thought in mind
publicity - seeking
venture or a browbeating mission,
take up time and
frequently cut
making
through
decisions
wonder
Men.
cars
As for
to
we
Association
passenger
of
exceeded that, of the
in the United States
industry completed its
calendar year,
retail trade in the
period ended
week, spot estimates collected by Dun &
218,100.
-
trucks
January, the United States Department of
perhaps suspect
Vice
1958
and
dropped for the seventh
Credit
the
Mr.
the
as
cars
of
ports" noted.
a
have meetings to end
all meetings? At least this is
par¬
regarding that intri¬
guing term, or of disregard of the
already sharply advanced price. In
from
Street.
their
vagueness
escape
201
that total dollar
many
of
advanced by 11.2%
The Hecklers Heckled
A
and/or
Production
automobile for the
Inc.,
industry last week,, despite the lack
settlement,, output of
prior week.
Henry T.
Co.,
Salle
mann, Executive
of
the
National
way
In the automotive
associated
—
become
promise "growth"—irrespective of
this
•
labor
vestment business
"defensive"
,
Walsion ( Co. Inc.
tially proposed by Henry H. Hei-
deemed
$17,700,000,000, reflecting little change from the
comparable year ago level. While a
year-to-year gain during the
cumulative period of 4% occurred in
public construction, private
outlays were down slightly. \
'.J
one
Should
Volume for the first five months of this
year amounted to
a
way to fulfill the
scientific investment
of
and Labor show.
merce
con¬
to
climb,
operated at
of
capacity, up 3.5 points, based on utilization of the
Jan. 1,
1958 annual
capacity of 140,742,570 net tons. Output was about
1,725,000 net tons or the highest of
any week this year. Accord¬
ing to "Steel" magazine, steelmakers are
elatec^ by June operations
and sales reports but
expect them to slump, in. July.
Construction is
contributing its share to. brighten the economic
outlook by
showing a seasonal increase ir\ May ta
$4,10^,000,000,
preliminary estimates of the United States- Departments of Com¬
ardently
so
management?
15% since October, would not the
acquisition of issues whose earn¬
ings and prices have suffered such
drastic cyclical declines be logical?
Instead, the buying has been heav¬
ily concentrated in issues which
are
64%
democracy.
rendering.
of. self-
Business Failures
Steel
production last week continued its
upward
scoring its seventh consecutive rise.
Furnaces were
those
appease
following the "wisefunds; again the public
this
function
which
advanced by
have
averages
of
to
good-looking Chips.
is open to serious question. On the
ery,
officers
tions to renewed acquisition of the
of
major premise of business
seem
kind
a
Index
Index
Auto Production
■
new
satisfactory performance with the
Chips; and as the peak of the
structure, the funds devote their
incoming shareholders' subscrip¬
the long-term future in disregard
the
prevalent
Trade
Price
of
services which they are
buying; then the funds
partly because of this
them
shrewdly
these recession months
over
buying
Pont
Retail
Commodity Price
Industry
vL
day's volume in
funds
to
Tuesday
disclosed
prior
popularization; next, the
public buys
additionally as
investing community
behaving with unusual
been
publicly
the
the
the public's
While the
has
so
saviours
own
the
Carloadings
Food
and
Production
Electric Output
State of Trade
how
strategic politeness,
artfully practiced by pre¬
siding
stocks have risen because of
name
permanently? Whatever the an¬
swer, this divergence is emphati¬
cally still with us now, and will
over
fact,
pyramiding
May
Lehman Corp., under Alexander
Sachs) back in the 1930's, continue
remain
of
contributing
study
of the
(the
one
Just this
fund
half
du
sisted of its purchases.
analyzed
major sta-,
a
where
their
briskly advancing
which trend
was
finds,
now
severely subjects them
Pont, et. al.
major
a
surable
value
so
of
with
technique
Steel
'
meet¬
distributor-stimulated scrutiny
This column would welcome
second-guessing are intensi¬ communications
from our stock¬
fying the Blue Chip-ism. Their holder-readers
evaluating the con¬
favorite-ten still comprise
Jersey, duct of their articulate defenders
IBM,U.S.Steel, Gulf Oil, Amerada, at the annual
meeting, and the
and
to
selling
patience
expand¬
open-ends
man¬
on
and
see-
of
market
window-
formed
business
seminars
stockholders'
a
to
growth-andglamour
newly
particularly tse
Will
between
and
hold
conduct
a/.>
The
ing, particularly stressing efficient
procedure to dispense with the
disruptions. Obviously, he has lost
Motivated
dressing compulsion, the
sta¬
tus of the Blue
Chips.
agement
the growing stock
market partici¬
pation by mutual funds and other
funds
situation
proposes
to
The intensified
iness
that
the
Association's
current Monthly Business
Review
By A. WILFRED MAY
mutual
In
he
Those Blue
<r
this
shop-lifting—
Mr. Heimann has some
affirmative
Observations
5
Michael A. Miller
Harry Janin
Sidney B. Lifschultz
Louis P. Schrag
62
Chronicle
Commercial and Financial
The
6
Thursday, June 19, 1958
.
. .
(2718)
Eisenhower
pre-convention
campaign days of 1952, one
those
most
responsible for
the' foremost
of
one
and
From
Washington
of
Eisenhower's
as
it is over Sherman
ranks
who
was
in
subordinate
the
make
race.
accepting,
I
Miami
it ;was
before
headquarters'
V -During
that he was cock of the walk; '' 'r
I
on
am
not passing, any.
comment
have
people bowing and
scraping to you and bringing gifts.
I know that Senators as a whole
However, if Eisenhower has a
great trust in him and a deep ap¬
Truman's Secretary, and
preciation of him he is a pain in
Lamar Caudle, of the Department
much expect a hotel to
the neck to everybody else. Cer¬ pretty
of
Justice; ' even for poor old
compliment their bill and in more
tainly this is the impression he
Harry
Vaughn
and
countless
cases than not it is done.
has created. Conceivably it could
others
who
rightly or wrongly
One
service
the episode
has
be a false one, that back of his
have
gotten hurt in the great
rendered is that millions of peo¬
severe manner is a heart of gold.
game of politics.
A biographer, though, would have
ple now know what a vicuna is.
But in the case of Adams, no¬
to dig mightly deep to find it.
>
where do I find other than the
I know a man who once visited
Correction
highest glee. One reason is his Adams when he was Governor of
holiers than
thou
attitude, but
In the Financial Chroiiicle of
New Hampshire. He tells me that
mostly it is because he has been
5th
it was
reported that4
as
if to put on a show Adams June
bo hard-boiled and cold-blooded.
would
call ill his
subordinates; Ansgar M. Christensen, who had
My own reaction is one of amaze¬ cabinet officials and lesser serv¬
previously conducted his own in¬
ment that lie would be gracious
vestment
business
in
Giendale,
ants and talk to them as few men
enough to accept a gift even if it
talk to another.
Men who have had joined Quincy Cass Associates,
were
tendered on his birthday.
This was in error,
worked with him at the White Los Angeles.
I have never enjoyed a close as¬
House and left because they due to our confusing Mr. Chris¬
sociation with the gentleman but
tensen and his father.
couldn't stand the gaff have at¬
I would have, if caught in his
Ansgar M. Christensen, Jr., who
tested to his severity.
company, be restrained from of¬
established his own
investment
How
Eisenhower ever picked
fering him a cigarette.
business in Giendale in 1955 as a
-
this Governor of a small state and
Members of Congress
sought
to
and
the resultant un-
happiness it has brought him.
There is
is
quite
a
members
no
his
citizen. I am assured by
of
the
New
England
industry and energy New
England would be in an awful
fix today. There is no reason why
a
man
of his stature should not
have been
the
able to see Adams and
President.
semi-official
And
official
and
Washington
see
nothing irregular in the fact that
hgs given presents to New Eng¬
land Senators and Governors.
On
he
one
occasion
New England
he
even
called
a
conference of Gov¬
All
President
shunted
Carlson
doubt that Goldfine
delegation in Congress that with¬
out
rities,
see
industrialist Bernard Goldfine got
him
last: two : decades
the
profound and far-reaching
have-' been- taking place
A1•
depletion. Al¬
though we still are finding a lot
of oil, it takes no genius to recog¬
nize that so large a number of dry
holes and abandoned wells greatly
dispel any dream of long-term
abandoned due to
changes
in the
world's petroleum
self-sufficiency.
Major U. S. Oil
No
Fields Found
been
Frank
of Kansas, seldom goes to
Senator
s e n
h
o w e r
intimate.
Former
Pennsylvania
Eisenhower did
another.
make
a
election
to
be
speech in favor of his re¬
in 1956 but this seemed
sort
of an
afterthought.
had
seen
him
as
1953
1956.
and
surprised
probably
He
when
the
fact that the
States
United
lost
its
position
of
has
new,
the
speech.
discoveries of 100,000,000 bar¬
or
more,
were found each
say
Ralph O. Rhoades
i
rels
petroleum
But, it would appear that not
one of
the fields dis¬
covered in the United States in
the last four years will prove to
be a major oil field.v
embracing a predominantly desert
This failure cannot be attributed
area
in the.;approximate middle
any
lack of effort.; On:* the
of the Eastern Hemisphere.
•
<
• to
contrary, through 1956 the amount
..The figures that spell out this
of exploratory anddrilling ac¬
long-term,
significant
shift of
tivity increased year by year until,
petroleum power away from the
United ; States ■ can
be
briefly in 1956, the domestic oil industry
stated.-In 1938, the United States drilled the unprecedented number
That
power.
;
position has been taken by the oil
producing countries of the Middle
East—a grouping of small nations
year.
single
a'
.
secu¬
was
indeterminate amount of error.
{Special to The Financial Chronicle)
DENVER.
was
ties
Eisen¬
with
Colo.
—
DAC
Securi¬
Corporation has been formed
offices at 463 Logan Street
situation, however, even if
allow for a substantial margin
Henry
we
correcton, the basic
picture
remains unchanged. For our own
future and the future of the free
of
Cabot Lodge
of these Shares having been sold, this advertisement appears as a tnatter of
record- only.
in
In this
world, the maintenance of access
is doing a good job to engage in a securities business. to Middle Eastern petroleum is
Officers are
Richard
S.
Derry- becoming more and more impor¬
in the very honorable
place of
Chief
Delegate
to
the
United berry, President, Jack G. Padgett. tant every day.
Nations
but his contact is with Vice-President; and John G.
Here, in the United States, oil
John Foster Dulles.
Yet he was Binkley, Secretary-Treasurer.
producers have for many years
clung to
the belief that, come
what may, the domestic oil indus¬
try
could
always
find
new
domestic reserves to replace the
made
hower
1953, an average of 2.87
major oil fields, which is to
through
supremacy y in¬
terims of world
statistician. ~ Mr<
Sr.,
'
between
is
dustry
when
here
self-sufficiency
outside the in¬
an
little
very
suggest that the time is
the whole concept of
must be re-ex¬
amined if we, the people of this
nation, are to take the steps now
that will prudently safeguard our
future. During 16 years, from 1938
few years
stood
discontinued ' his
Form DAC Securities
:
•
Duff
r
has shrunk to 14% of free world significantly. Over the last hun¬
years,
among
all . wells
formerly supply, and those of the Middle dred
associated
with
First California East have grown to 71%. As most drilled, about one in four proved
Co. for many years., later joining of
you
know, all estimates of dry. Over the past four years,
Kenneth Ellis & Co. in Phoenix.
petroleum reserves are subject to among 219,550 wells drilled, one
1957
Christensen,
Senator Joe Duff of
was
not
has
January
He was an early
the White House.
E i
have
group
aside.
try itself, and
still less well
unde
fact, the events of the past
In
of 58,418 wells,- or nearly 10,000
possessed 59% .of all the oil re¬
wells more than it did in 1953.
serves
then known to exist in
business. Ansgar M. Christensen, what is now the free world while Not only did this high level of
Sr., his father, is now a registered the Middle Eastern share was only activity fail to find a major new
representative with Quincy Cass 17%.
Today,
the proportionate field, but the ratio of dry holes
Associates, which
he joined
in share of United States reserves to the productive ones increased
over-the-counter
dealer "in
and Sena¬
placed him in the powerful posi2him are tion he occupies has long been a
getting a tremendous kick out of subject of speculation. Abler men
the ease with which New England
in
the
original Eisenhower-forsee
■
/P1
the merits of the
you
nelly,
to
>,v
\yill disturb older or
profit-sharing agreements
future agreements.
and Japanese
Eisenhowerin -Denver realized
visitors to the
.
Carlisle Bargeron
hotel;
for Matt Con¬
who
y
,
Beach
tors
recapitulates growing number of firms and stockholders with
foreign production holdings; labels Israel as
^
single cause of international trouble in the Middle East ;
describes Nasser as a question mark; and doubts recent Italian
campaign
not • long
Eisenhower
entourage ' and
The oil executive
of expansion.
Middle East programs
our
-
political mess
only a case-hardened man
picture of the
can stand.
An explanation is that he is in. I am simply saying that sup'ply.
Little
he is completely dedicated to the. everybody I have run into enjoys rec agnized,
thoroughly.1 In my - perverse even by many
President's welfare; no more dedi¬ it
cated public servant ever lived I way I don't see what is the ad¬
pfeople within
am assured.
.,:
: vantage of having power unless the oil indus¬
recall, the
hospitality of
a
this
in
the
into
that
ministration
as
j
him. to
led
delegates
primary over
whose term as Governor
expiring,
promptly moved
was
of taking a
is something
task
to
•
world petroleum
is made clear by Mr. Rhoades in examining our concept
of self-sufficiency, condition of angry contradiction within the
domestic oil industry, and crucial necessity to pursue resolutely
Eisenhower's
primary per¬
Taft.
within the oil industry, that we
position of supremacy as a
our
power
Adams,
task and Adams' way
the
Truman Ad¬
lor
suaded
are 15- minutes late
luncheon they are taken to
from
White
the
House
Bob
showing
if they
ing;
of
out
accept
New Hampshire
a
Senator
They
Donald Daw¬
forced
it
a
dinner engagement.
have
to be
on
the • job
promptly at 8 o'clock in the morn-,
to
sympathy for.
son
an
subordinates at
the White House are almost afraid
lot of
a
in
His
discussed.
is
callous
our
ac¬
causes
of laughter wherever
outbreak
in
find
generosity
Eisenhower ticket of
Corporation
Vice-President, Gulf Oil
The lack of realization even
have lost
He made
President.
early in 1952 when he
his bid
an
Adams
that
fact
his
cepted
depression
the
the whole tab.
up
the
But
Adams' dis¬
comfiture. You
will
picked
and
elbow of the
discuss
to
ernors
official and
semi-official Washington has been,
in such a high state of titillation
and
BARGERON
By CARLISLE
that
seldom
is
It
little man
is the one:
got the position of unique
tremendous
power *at
the
who
RHOADES*
By R, O
Senior
state,
little
the
from
Oil Industiy
The Middle East and
running.
Sherman Adams, the
the News
Ahead
the
in
boosters
oil withdrawn and consumed each
Over the years they have, to
creditable degree, proved them¬
and
two
half was dry.
a
oyer a three- or four-year
could scarcely fail to have
'
'
"
-
-
From
began to
the
1956
wells,
of
125,000 Shares
these, 458,000
time
another
Pepsi-Cola General Bottlers, Inc.
*
(Illinois)
'
j.
-
*An
were
of
address
Of
1859.
dry holes
at
completion,
and
s$ have
Of
in 1957 fell off to
"these, 20,156 were dry
holes.
:
or
by
Mr.
195), the
this
At
the
become
has
same
particularly
the last four
time
our
serves
at
in terms of years
Rhoades
before
of supply
consumption rates
current
tic
reserves
continue
to
decline
during
1894E
MUNICIPAL BONDS
CORPORATE BONDS
LOCAL STOCKS
4
The
Roiinson-Humphrey Company,Inc.
!
RHODES-HAVERTY BLDG.
June 18,1958
•
has
Should our domes¬
in relation to demand
Continued on page
Association, Cleveland, Ohio.
STATE AND
>'
rising
of re¬
been declining.
ESTABLISHED
qAllen & Company
years.
domestic
consumption
has
been
steadily, while our ratio
Meeting of the National
COMMON STOCK
%
domestic oil,in¬
dustry has found itself in the posi¬
tion of spending more and more,
per
foot of hole drilled, while
getting less and less oil per foot,
Since
been
600,000
the Semi-Annual
Petroleum
-
in doing so they
surprising total
1,749,000 wells since
the
•
the
drilled
become evident.
peak of 58,418
drilling
53,350.
marked during
have
dis-.
of that discourage¬
1957 the signs
ment
and
selves right. But
a
domestic drill¬
ing activity, and, indeed, during
a
V
period,
couraging effect on
year.
NOT A NEW ISSUE
continued
return,
of
kind
This
WALNUT 0316
ATLANTA1,
long
GEORGIA
distance 421
the
56
Volume 187
Number 5752
.
.
.
The Commercial and Financial Chronicle
<2719)v
|
Interest Exempt from
present Federal and New York State Income Taxes
ij
New Issue
$49,000,000
tate of New York
4%, 3%, 2%%, 2.90% and 2% Housing (Serial) Bonds
Dated
July 1, 1958
Due
,
$1,000,000 each July 1, as shown below
■-Principal and semi-annual interest (January 1 and July 1) payable
at the principal office of The Chase Manhattan Bank in
City. Coupon bonds in denomination of $1,000, exchangeable tor bonds registered as to principal
$1,000, $5,000, $10,000 and $50,000. Registered bonds
York
isew
and interest in denominations of
.
be converted into
may
Y
y
coupon
form
at
the
of the holder.
expense
Legal Investment for Savings Banks and Trust Funds in New York and certain other States
and for Savings Banks in Connecticut and Massachusetts
•
.
Acceptable to the State of New York as security for State deposits, to the Superintendent of Insurance to
secure
policy holders, and to the Superintendent of Banks in trust for Banks and Trust Companies
'i:(
ii
These
Housing Bonds will constitute, in the opinion of the Attorney General of the State of New York, valid and
binding obligations of the State, and the full faith and credit of the State of New York will be pledged for the
payment of principal and interest.
.
..
tr"-<
t i
;j
MATURITIES, COUPON RATES AND YIELDS OR PRICES
Yield
Rate
Yield
Due
Rate
Yield
4%
Due
1.00%
1967
4%
2.20%
1973
1968
4
2.30
1974
1969
4
2.40
1975
Due
Rate
or
Yield
Due
Drlce
Rate
or
WIce
"
1960
4%
2.60%
1982-83
23/4%'
3
2.60
1984-85
23/4
2.60
1986-87
2.90
1961
4
1.25
1962
4
1.50
1963
4
1.70
1970
4
2.45
1976-77
23/4
23/4
2.65
1988-89
2.90
1964
4
1.85
1971
4
2.50
1978-79
23/4
2.70
1990-98
3
196S
1
2.00
1972
4
2.55
1980-81
23/4
W 100
1999-2007
23/4
1966
4
2.10
2008
2
2.80%
.
;
2.85
® too
2.95%
® 100
3.10%
Not Rcoffered
(Accrued interest to be added)
Redeemable, at the option of the State, at par and accrued interest, on July 1, 1998, or
on any interest payment date thereafter, all of such bonds then outstanding, or all
of the bonds of a single maturity beginning in the inverse order of their maturity.
The above Bonds
offered when,
are
•
•
.
as
;
,
.
and if issued and received by us, and subject to prior sale and approval of legality by the
Attorney General of the State of New York.
The Chase Manhattan Bank
York
of Western New
►
,
v
The
.
■
.
^
Carl M. Loeb, Rhoades & Co.
L. F. Rothschild & Co.
B. J. Van
Greaorv & Sons
®
!
Frnct
E.I11SI
1
.
k
,
Reynolds & Co.
A. C. Allyn and Company
A. G. Becker & Co.
Incorporated
First of Michigan Corporation
-
■
State Bank of Albany
Company
Geo. B. Gibbons & Company
; Spencer Trask & Co.
J. R. Williston & Beane
.
The Franklin National Bank
of Long Island
Hannahs, Ballin & Lee
New York Hanseatic Corporation
Wood, Gundy & Co., Inc.
Hayden, Miller & Co.
'
Incorporated
Schoellkopf, Hutton & Pomeroy, Inc.
Chas. E. Weigold & Co.
Newark
Green, Ellis & Anderson
Weeden & Co.
W. E. Hutton & Co.
Incorporated
Corporation
June 18, 1958.
'
Buffalo
Fidelity Union Trust Company
Laurence M. Marks & Co.
Schmidt, Roberts & Parke
New York,
.
of Albany
V^OIIip<UIJ
juJien Collins & Company
.
Incorporated
& Cnmoanv
Oi
Swiss American
.
Incorporated
The National Commercial Bank and Trust
GHckenhaus & Lembo
S
:
Adams, McEntee & Co., Inc.
Ingen & Co. Inc.
Baxter & Company
Bache&Co.
Stone & Webster Securities Corporation
Shields & Company
.'
White, Weld & Co.
Manufacturers and Traders Trust Company
Kean, Taylor & Co.
Federation Bank and Trust Company
Francis I. duPont & Co.
.
Equitable Securities Corporation Hornblower & Weeks
Bear, Stearns & Co.
Incorporated
Hemphill, Noyes & Co.
t
^
F. S. Moseley & Co.
W. H. Morton & Co.
Mercantile Trust Company
^
Blair & Co.
Incorporated
Barr Brothers & Co.
u.
Salomon Bros. & Hutzler
R. W. Pressprich & Co.
—
.....
....
Philadelphia National Bank
Estabrook & Co. j
Kidder, Peabody & Co.
_
Ladenburg, Thalmann & Co.
"
Hallgarten & Co.
The Northern Trust Company
Harris Trust and Savings Bank
The Marine Trust Company
Manufacturers Trust Company
C. J. Devine & Co.
Blyth & Co., Inc.
Chemical Corn Exchange Bank
Kuhn, Loeb & Co.
Malon S. Andrus, Inc.
The Peoples National Bank
Sterling National Bank & Trust Company
Schwabacher & Co.
William Blair & Company
Rauscher, Pierce & Co., Inc.
Wachovia Bank and Trust Company
' t
The Commercial
ipaoi
Sulphur as an inflation hedge—Study—Filor,
26 Broadway, New York 4, N. Y.
"These Industries Chose the New Orleans
Dealer ^Broker Investment
Recommendations & Literature
-
send interested parties the
«to
Atomic Energy Review—Latest
following literature:
»
developments in the industry—
Harris, Upham & Co., 120 Broadway, New York 5, N. Y.
Atomic abetter (No. 38) on growth of civilian nuclear projects,
planned vnew uranium-milling capacity to be allocated by
AEC, and (developments .affecting Algom and Pronto Ura¬
nium Mines—Atomic Development Mutual Fund, 1033 Thir¬
N. W., Washington 7, D. C.
View — Monthly investment letter
Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
is current
able
—
Letter.
Foreign
Canadian Bank Index
Theory—A
guide to Canadian in¬
new
vesting—Draper Dobie & Company, Ltd., 25
West, Toronto 1, Ont., Canada.
Chemical & Pharmaceutical Price Indexes
Adelaide Street,
Smith, Barney &
—
Carl
M. Loeb, Rhoades & Co., 42 Wall Street, New York 5, N. Y.
Fire & Casualty Insurance Stocks—1957 earnings comparison—
Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
—
Comparative study on 97 companies
—
-
Impact of Industrial Recession on Electric Utility
;7
- J '
Inside Story of Outside Help — Booklet describing services —
Ebasco Services Incorporated, Dept. V, 2 Rector Street, New
5, N. Y.
'
York
6, N. Y.
Japanese .Stocks — Current information
Company of New York, Inc., Ill
Stock
—
Yamaichi Securities
Broadway, New York 7,
in Japan
—
turing Co., Toyo Electric Manufacturing Co., Tokyo Gas Co.
and Fuji'Precision Machinery Co.
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
Quotation Bureau Averages, both as to
^yield and market performance over a 19-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
4,'N. Y. Pharmaceutical Industry—Survey and reappraisal—E. F. Hut7ton & Company, 61 Broadway, New York 6, N. Y.
Public Utilities "Bulletin—Fortnightly letter on both listed and
unlisted utility stocks—Eastman Dillon, Union Securities &
Co., 15 Broad Street, New York 5, N. Y.
used in the National
Public Utilities Fortnightly—Magazine covering finance in all
branches of The ^utility industry — descriptive brochure
"Herels Proof" —Public Utilities
Fortnightly, 332 Pennsyl¬
Building, Washington 4, D. C.
able is
..
&
Options—Booklet
on
how to
Manoir Richelieu,
June
(Minneapolis-St.
1958
19,
on
Yacht
Bear
Club, 'White Bear
Lake, Minn.
June 20, 1958
,-i77v;77.7.'7
-■
,
(Philadelphia, Pa.)
Investment Traders Association
.
Philadelphia
Overbrook
York
N. Y.
5,
Chemical
Securities Traders Association of
Detroit & Michigan annual
?
June 27,
Also available is a bulletin on Wagner
i
W. Press-
•
'
Baird & Co., 110 East
Wisconsin Avenue, Milwaukee 1, Wis.
Glasspar Co.—Memorandum—Sutro & Co., Van Nuys Building,
Los Angeles 14, Calif.
Hartford Electric Light Company — Annual report — Hartford
Electric Light Company, 176 Cumberland Road, Wethersfield, Coni l.
\ 77
Illinois
&
Railroad
Central
Co.—Analysis—Peter P. McDermott
Co., 42 Broadway, New York 4, N. Y.
Interstate & Engineering Corp.
—
Memorandum
—
&
—
Report
Broadway, New York 4, N. Y. 7
Northern
Fourth
Pacific—Data—Edward
Deere
on
Gas
and
Electric
Gas
homa
City 1, Okla.
and
Electric
Nassau
&
Fuller.
Company—Annual report—Okla¬
Company, 321 North Harvey, Okla¬
,
'7
: Cove, L. I., N. Y.
June 27, 1958
at
(New York City)
Municipal Bond Women's Club
New
of
York
outing at
annual
vent
Station, N. J.
27, 1958 (Philadelphia, Pa.)
"7 Philadelphia
Securities Association annual outling at the
Golf
Overbrook
Bryn
Club,
Mawr, Pa.
June 28, 1958
(Chicago, HI.)
Security Traders Association of
Chicago summer golf outing at
the
Woodridge Country Club,
Lisle, 111.
Glass—Report—Thomson & McKinnon, 11 Wall
Street, New York 5, N. Y. Also available is a report on
General Dynamics Corp. and a study of Fire & Casualty
Aug. 21-22, 1958 (Denver,
^
Bond Club of Denver
Colo.)
-
Rocky
Group IB A 24th an¬
nual summer frolic at the Co¬
Mountain
Stocks.
Planet
Corporation — Report — Hudson White & Company,
Michigan Trust Building, Grand Rapids 2, Mich. T
lumbine Country Club.
(Cincinnati,
Sept. 18-19, 1958
Ohio)
reports—Southwestern Public Service Company, Mercantile
Bank
outing
Club, Glen
Country
,
D.
Owens-Illinois
.
(New York City)
summer
June
Sprayregen & Co., 26
River Fuel, Anheuser Busch, Inc. and Stix, Baer
Oklahoma
outing at Sleepy Hollow
Country Club, Scarborough on
the Hudson, Scarborough, N. Y,
Syndicats
report—Iowa Power
Jones & Co., 300 North
Also in the some circular
Co., ACF Wrigley Stores, Mississippi
&
7
v
.
Morris County Golf Club, Con¬
Street, St. Louis 2, Mo.
data
are
—
annual
Lakepointe
'
J. Barth &
Light Company, Des Moines 3, Iowa.
Minnesota Power & Light
at
York
June 27, 1958
Co., 404 Montgomery Street, San Francisco 4, Calif.
Iowa Power and Light Company—Annual
Detroit
Investment Association of New
-
Commonwealth Life Insurance Co.—Memorandum—Robert W.
<7
of
outing
June 27, 1958 (New York City)
Citizens Utilities
,
(Detroit, Mich.)
Country Club.
.?
prich & Co., 43 Wall Street, New York 5, N. Y.
•
Company—Analysis—Mitchum, Jones & Tem-
1958
Club
Bond
summer-
.
pleton, 650 South Spring Street, Los Angeles 14, Calif.
sum¬
outing at the Lakepointe
Golf-Country Club.
mer
Company—Bulletin—Baclie & Co., 36 Wall St.,
Corn Exchange Bank—Memorandum—R.
Country
Township, Pa.
Radnor
Canada.
New York 5, N. Y.
Electric.
outing
Club,
summer
June 24, 1958 (Detroit, Mich.)
Limited, 62 Richmond Street,. West, Toronto 1, Ont.."
Carborundum
them—Filer, Schmidt
Co., 120 Broadway, New York 5, N. Y,
Murray Bay
Paul)
Twin City Bond Club annual
picnic and outing at the White
Southwestern Electric Service Company—Annual and quarterly
use
Association
Quebec.
at
.
Stock
(Canada)
of Canada annual convention at
Micromatic Ilone Corporation.
on
homa
Street, New York 5, N. Y.
Field
Investment Dealers'
of
Government—18th
edition, ineluding credit and debt management factors influencing the
-market; public debt of the U. S.; securities of government
corporatians and credit agencies and International Bank; the
budget; ownership of the Public Dept.; factors affecting com¬
mercial banks; taxation of income from securities; prices and
yields of treasury securities—The First Boston Corporation,
15 Broad
Investment
In
Also available is a memorandum on
General Railway -Signal Co. and Hoffman Electronics.
California Water & Telephone Company — Annual report —
California Water & Telephone Company, 300 Montgomery
Street, San Francisco, Calif. *
*
7
7
'
7. 7./'7
Canadian Curtiss Wright Limited—Circular—Lampard & Com¬
7 New
Corporation.
Securities of the United States
'
Co., 72 Wall St.,
Lists for
Manufacturing Co. and Twentieth Century-Fox Film
Francisco
EVENTS
Exploration
Burroughs Corp.—Memorandum—H. Hentz &
income, growth and yield
—Reynolds & -Co., 120 Broadway, New York 5, N. Y. Also
available are analyses of Shamrock Oil & Gas Corp., Ray¬
theon
memorandum
a
bulletin
a
San
COMING
California Packing Corp.
Ltd.—Circular—C. E. Stoltz &
Co., 25 Broad Street, New York 4, N. Y.
Asamcra Oil Corporation Ltd. — Bulletin — De Witt Conklin
Organization, 120 Broadway, New York 5, N. Y. Also avail¬
<
Recommended Investment
Street,
gomery
Calif;
—
Bond Yields.
American
Anglo
Discussion in
"Monthly-Stock Digest" — Nomura Securities Co., Ltd., 61
Broadway, New York 6, N. Y. Also in the same issue is a re¬
view of Japanese business conditions and data on Isuzu
Motor Co., Nihon Cement Co., Mitsubishi Electric Manufac¬
Over-the-Counter Index—Folder
Blaw-Knox Building,
Co.—Memorandum—Goodbody & Co., 115 Broadway, New York 6, N. Y.
7;77
American Motors—Analysis—du Pont, Homsey & Company, 31
Milk Slreet, Boston 9, Mass. Also in the same circular are
analyses of Textron, Beaunit Mills and U. S. Freight.
American Pipe & Construction Company—Report—Dean Witter
& Co., 45 Montgomery Street, San Francisco 6, Calif.
Also
pany
Field-Report—Harris, Upham & Co., 120 Broadway, New
vania
vs.
the Growing West
Company—
report — West Coast
Telephone Company, 300 Mont¬
American Independent Reinsurance
New York.
York 5, N Y.
Marine & Fire Insurance Industry
Crest in
—
Annual
Booklet on the area
served—Utah Power & Light Co., W. A. Huckins, Business
Development Department, Dept., 7, Salt Lake City 10, Utah.
Underground Wealth—Discussion of crude oil and natural gas
reserves of major companies — in "Current Comments ioi
Investors"—Francis I. du Pont & Co., 1 Wall Street, New
York 5, N. Y.
In the same issue is an analysis of Chicago,
Rock Island & Pacific Railroad Company. Also available is
an
analysis of the Retail Trade Industry, and a study of
Companies—
Study—$25 -per copy—Gregory & Sons, 72 Wall Street, New
York
West Coast Telephone
.
.
report
States Telephone
Company, 300 Montgomery St
San Francisco, Calif.
Pittsburgh 22, Pa.
available is
Co., 20 Broad Street, New York 5, N. Y.
Electric Utilities
products—Blaw-Knox Company, 1231
Telephone
Annual
Southwestern
Descriptive brochure on services and
—
States
—
June 18-21, 1958
tieth Street,
Burnham
Company
r»^vi*+
•
Blaw-Knox
is
This
Treasure
mentioned toill be pleased
It is understood that the firms
"l
Thursday, June 19,1958
.
..
Southwestern
Bullard & Smyth,
Area — Booklet
describing the area served — New Orleans Public Service,
Inc., Industrial Development Staff, 317 Baronne Street, New
Orleans, La.
Latest
and Financial Chronicle
n
Municipal Bond Dealers Group
Building, Dallas, Texas.
annual
outing
cocktail and
—
Thursday at Queen
City Club; field day Friday at
Maketewah Country Club.
dinner party
For
financial institutions
.
.
.
Sept.
We suggest
that the following
investments at this time
.
.
are
National Security Traders Asso¬
ciation Annual Convention at
.
the
Servicing
Mallinckrodt Chemical Works
Broadmoor.
Oct. 6-7, 1958
Association
<
Metals & Controls Corporation
Brokers and Dealers
Red Owl Stores
National Homes
Mine
Nov.
of
at
Asiel & Co.
Members
Troster, Singer & Co.
New
Telephone HAnover 2-5000
Trinity Place, New York 6, N. Y.
York
American
20 Broad Street
Members Neto York Security Dealers Association
Governor!
of
Board
30-Dec.
Stock
Stock
America
(Miami
annual
Association
convention
the Americana Hotel.
Nov. 2-5, 1959
(Boca Raton,
Fla.)
National Security Traders Asso¬
ciation Annual Convention
Exchange
the
Boca Raton Club.
Exchange
With Mutual Funds Assoc.
New York 5, N. Y.
(Special to The Financial
Teletype NY 1-1110 & NY 1-1111
LOS
G.
Teletype NY 1-376-377-378
Yl
Hotel.
1958
5,
Investment Bankers
Safety Appliances
HAnover 2-2400
Stock Exchange
Beach, Fla.)
Corporation
Members
74
Firms
Mass.)
(Boston,
of
meeting at Somerset
Since 1878
Firm Markets
(Colorado
1958
3,
29-Oct.
Springs, Colo.)
OUR EIGHTIETH YEAR
attractive
:\
ANGELES,
Nahigian is
Funds
now
Associates
Chronicle)
Calif.—Harold
with Mutua
Incorporator,
3780 Wilshire Boulevard.
Volume
Number 5752
187
.
.
.
The Commercial and Financial
Chronicle
(2721)
commercial, while industrial busi¬
declined 5.7%.
Meanwhile the electric utilities
ness
Public
Utility Securities
have
continued their heavy con¬
struction program, which is usu¬
ally projected two to five years
By OWEN ELY
in
advance, since electric gener¬
ating equipment takes about two
Electric Utility Industry Continues to Forge Ahead
the
Dufing
past
electric
year
| utility stocks have r encountered
market swings.
wide
As of May
gether;
the
earnings,
about
with
stocks
now
come
of
declined- 10% to 46.42, re¬
flecting the drop in industrial is¬
sues as well as the rapid rise in
between
rates, which
was
con¬
adverse to utility earn¬
sidered
ing
At
power.'
about
this time,
the Federal Reserve
taking measures to
lower money rates and the con¬
tinued gains in earnings and divi¬
dend
rates
for many
utilities,
together, with rate increases
ber.
began
granted 'Jby
state commissions,
[quickly dissipated investors' fears.
20 times
or
yields
of
only
and
the
yield
afford a range of in¬
roughly 4y2-6%
con¬
with
yields
ranging
5.5%
The
7%
and
last Octo¬
yield
average
the
on
Moody group of high-grade issues
dropped from 5.26%
to 4.36% recently.
however,
board
now
2V2-4%;
trasted
it had
money
issues
again sell at about 19
1957,-Moody's average price
24 'electric
power
common
stocks was 51.85, but by Oct. 25
31,
| of
growth
last October
Electric utility output has
quite well
up
a
the increase
ago,
year
compared
as
in
held
with
resi¬
dential and commercial sales sub¬
stantially
in
off-setting
industrial.
Thus
ended June 7
the
in
decline
the
the Edison
to manufacture
years
week
Electric
As the end of
install.
and
April, U. S. capacity
had reached 131 million kw
name-
plate rating with actual capability
probably 5-10% greater. The gain
the previous year was
7.2%
for that month output
over
although
down
was
2.3%.
Thus
for
the
chain stores, etc. ' Greater
attention was paid to the "built-in
safeguards" in utility earnings,
with
which many
analysts had
been familiar, but which had re¬
der last year.
mained somewhat of
the
the
average
market
other
extreme.
Thus
to
the
swung
Moody aver¬
not only recovered the lost
10%, but -has gained about an
to 57.38
since
on
June 6
the highest
—
of
month
avilable for these
tire
well
in
indus¬
help
offset
March,
latest
figures, the
en¬
industry (including public
as
an
increase
of
11.1%
in
This advertisement is neither an offer to sell nor a solicitation
is of
pump
of
course
of offers to buy
any
of these securities.
ISSUE
It must be admitted that the
good earnings reports whir1 so-e
normalize
them, special tax
sav¬
ings resulting from accelerated
.depreciation, which increase auto¬
matically every year (they began
in 1954).
Regarding
operating
expenses,
fuel is
a very important item and
in recent months the price of fuel
oil has eased somewhat, following
earlier increases.
The supply of
hydro
more
has
power
in
except
is
cost
homes
new
partly offset
etc.
'
.•
also
become
which
of
the month of
in
occurred
the
country.
many
Thus
in
January the cost of
fuel for all Class A and B private
utilities was 4.7% below the pre¬
southern
heating,
favorable attitude of
state
The
funds,
bug-a-boo a
5%
offered
with
states
(some
still
are
cases
obtain
increases
portant
and/or
earnings
since
Paine, Webber, Jackson & Curtis
Wood, Struthers & Co.
Wagenseller & Durst, Inc.
Irving Lundborg & Co.
Walston & Co., Inc.
viously inadequate).
Summarizing,
vestors
should.
Crowfell, Weedon & Co.
mer)
seems
Brush, Slocumb & Co. Inc.
Sutro & Co.
»
ler
&1
Pasadena Corporation
Hooker & Fay
,
„
,
Jones, reeger
i
n
'u
ewi
Pacific Northwest Company
is
now con¬
one
to
last
6%
year
able
to
favorable
so
industry
and
sympathetic
by the commissions.
must
be
kept
in
the
mercy
mind
that
of
the
;
'
new
are Philip R. Egner,
Hyman
Federman, Herbert M. Iselin,
L,
Charles J.
ler,
Miller, Robert W. Mil¬
B.
Ortmann, and
Stonehill, member New
Stock
Exchange. Limited
Kenneth
•
.
Harold S.
York
partners of the firm
are
Robert I.
Cummin, Harry. Janin, Sidney B.
Lifschultz, Michael A. Miller and
Louis P. Schrag.
of politics
Two With Dean Witter
the
both at
the local and national levels. Poli¬
tical
partners
regulation
However, it
utility industry remains somewhat
at
General
pressuring for unwarranted
(Special to The Financial Chronicle)
SAN
FRANCISCO, Calif.—Rob¬
ert G. Kunz and James E. Nickelson
have become associated with
Dean Witter & Co., 45 Montgom¬
low rates, and political promotion
ery Street, members of the New
York and
San Francisco
Stock
of
Exchanges.
big tax-free public
power pro¬
an
The
offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.
any
of these, securities.
NEW
ISSUE
June 19, 1951
$16,000,000
Mountain Fuel
4
Supply Company
%
Debentures Due 1983
Dated June 1, 1958
Due
June t, 1983.
last
two
Price 100% and accrued interest
A issue were
6%
a
permitted by the FPC to
the
feature.
extra
any
recovery
Copies of the Prosp c'us
writers
may be obtained from any of the several under¬
only in Stales in which such underwriters are qualified to act as
dealers in securities
a
ltd in which the
Prospectus
may
legally be distributed.
in industrial
is
now
increasing
Power
Corp.
rapidly;
The First Boston
has
about
:
with
Blyth & Co., Inc.
Lehman Brothers
Corporation
Eastman Dillon, Union Securities & Co.
Merrill
Goldman, Sachs & Co.
Lynch, Pierce, Fenner & Smith
Dean Witter & Co.
Hemphill, Noyes & Co.
White, Weld & Co.
Boettcher and Company
on
only the air. Western Massachu¬
setts Companies is experimenting
Corporation
back
long as
maintains its dy¬
namic growth and enjoys reason¬
the
'
spe¬
;
a
its. lines.
Schools are
experimenting with electric heat¬
ing and find it quite efficient for
their special requirements. "Radi¬
ant heating" is being increasingly
used; it's more efficient than re¬
sistance
heating, since it heats
2,000
>
The Milwaukee Company
5%
June
non-callable
Florida
First Southwest Company
.
such
was
taking another hard look at the
possibilities of house heating. The
number
of heat pumps
(which
heat in winter and cool in sum¬
Davis, Skaggs & Co.
Incorporated
Laird & Company,
switch
industrial issues, but the long pull
outlook for the electric utilities
still
as
number
firm
recession
some
gressive utility managements are
Bateman, Eichler & Co.
First California Company
Grimm & Co.
Hill Richards & Co.
Shuman, Agnew & Co.
Newhard, Cook & Co.
The First of Arizona Company
Ball, Burge & Kraus
Estabrook & Co.
E. F. Hutton & Companyr
Incorporated
•
from current price levels of utili¬
ties might occur, especially if in¬
would
quickly
reduce
surplus
capacity to normal.
However, as a safeguard and to
balance
their
growing summer
air-conditioning load, many ag¬
v
.
ob¬
a
of leading corporations.
activity
.
_
Stroud & Company
are
The firm will act
cialists in the stocks of
(except in
where other factors-are im¬
the
fully aware of this possibility
but are not too much concerned,
Incorporated
Laurence M. Marks & Co.
of
are
Salomon Bros. & Hutzler
Hemphill, Noyes & Co.
Incorporated
Smith, Moore & Co.
New
rather
panies.
to
on
obtaining
capacity being
built up become a drag on the
industry, because of the capital
costs
involved?
The
companies
Dean Witter & Co.
White, Weld & Co.
not
a
Will
William R. Staats & Co.
McCormick & Co.
American
.announced.
basis; two of
gas pipeline issues and
third an electric utility which
on
use
Lynch, Pierce, Fenner & Smith
Refsnes, Ely, Beck & Co.
Goodbody & Co.
is
were
was
*
and'
compared with 4.80-
issues and
Baa
Blyth & Co., Inc.
Lester, Ryons & Co.
of
year ago,
In
summer.
the
Kenneth Ellis & Co.
York
Exchanges
August; and A-rated is¬
cost 4%
or
slightly more,
these
Bosworth, Sullivan & Company, Inc.
New
Stock
last
sues
Copies of the Prospectus may be obtained from any of the several under¬
writers only in States in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be dish willed.
Merrill
future
cost
which
about 3.85%
-
compared
Hogle & Co.
the
the
siderably lower. For example, in
May Aa bond issues cost only
share
Corporation
the
about
new
plus accrued dividends from-June 24, 1958
J. A.
of
companies.
industry?
?50 Par Value
Elworthy & Co.
some
commissions, particularly in
utilities)
of the late
wave
and there was a
gain for these in¬
definite
What
Stock, Series A
$2.40 Cumulative Preferred
A. G. Edwards & Sons
Formed in NYC
•;
and
dividual
Spencer Trask & Co.
D. H. Blair & Co.
the
Formation of the firm of D. H.
major factor in the improved
sentiment for investment in util¬ Blair & Co., 42
Broadway, New
ity stocks has been., the more York City, with memberships on
early spring. While
use of electricity for heating
purposes
is still in the early
stages of development, neverthe¬
less, this was a plus factor for
some companies. Also, many elec¬
tric companies also sell gas for
house
Schwabacher & Co.
collectively.
A
1 his advertisement is neither
for the
more
Coffin & Burr
or
the
Arizona Public Service
Allyn and Company
where
by
omitting
chimney, furnace,
construction of
plentiful with the increased
cially
240,000 Shares
A. C.
indiyidually
.
summer
Stone & Webster Securities Corporation
either
efficient
England
The new firm will
conduct,the
niggardly). money brokerage business here¬
needed because of
higher tofore performed by D. H. Blair
some cases
costs, the commissions have been & Co.,Inc.for more than half a cen¬
den demand for
air-conditioning willing to allow a rate of return
tury,, as well as engaging in all
during a heatwave. At any rate, slightly in excess of the standard
other, activities of a member of
the extra reserve carries some off¬
6%. However, both interest rates the New York Stock
Exchange.
setting advantages—the new and and fuel costs have now declined One of
its important functions will
'efficient equipment can be used
somewhat from last year's worst be to
provide financing for smallmore, and obsolescent plants less,
levels, so that the utilities may and medium-sized growth com¬
than would normally be the case.
find it a little harder from here
be
needed in
where there is a sud¬
has been the cold
Eastman Dillon, Union Securities & Co.
unfavorably in future
against utility earnings and prices,
Where
might
higher.
June 18. 1058
The First Boston
most
such as TV A which have
unfair competitive
advantage,
could react
vious year, although in that month
the sales of electricity were 1.5%
made only by the Prospectus.
Price $50 per
ducers
an
all, but is expensive to install
Another favorable factor (espe¬
NEW
after
little
current), the
hot water being stored for
heating
purposes the next day. The heat
California
capacity,
this
sections
residential kwh sales and 4.8% in
can heat water
(when there is
demand for
though
rainfall
privately-owned utilities)
as
showed
Both
the
"growth"
and
the
"yield" stocks have advanced to¬
The offering is
charges
schedules
rate
the
In
addition, rising
1931.
granted
the decline in industrial business.
The
amount in
"demand"
trial
age
equal
rate increases
of
companies, and also because
some
the
revenues
doing better than kwh output
because
mystery to
a
investor.
pendulum
are
Moreover,
normal
present at least the electric utili¬
ties have some excess
companies have been issuing have
Moreover, as industrial activity Institute
estimates
that
output j enjoyed- special j supports
ot
a
[ continued
to, decline investment- was
1.1% over last year, although -bookkeeping nature, such as (1);
funds sought,a safe haven in de-,
the interest credit on new plant
*?iii some earlier weeks in Aprilfensive issues, and utilities shared
not yet placed in operation, and
this quality along with tobaccos,- May it had dipped about 2% un¬
(2) fof companies which do not
drugs,
Electricity
midnight
9
a
cheap
night rate, so that
J. A. Hogle & Co.
Bosworth, Sullivan & Company, Inc.
Edward L. Burton & Company
Moore, Leonard & Lynch
Brush, Slocumb & Co. Inc.
William Blair & Company
Singer, Deane & Scrihoor
Schwabacher & Co.
10
(2722)
The Commercial and Financial Chronicle
The
Atomic Energy Act, industry has
By RALPH J. CORDINER*
$500 billion worth of electricity and
one and one-quarter trillion
the next 20 years are foreseen
by Mr. Cordiner
•11
the basis of
on
pected electrical
needs.
The
growing population's
our
General
Electric
head
.
.
ex-
conclusions:
effectively toward estab¬
lishing a base in development, de¬
sign, -manufacture, and use of
power reactors. Now the industry
effort is moving into a new era—
one
in which operating experi¬
ence, meager as it is, can be ana¬
lyzed. The results, based on five
pioneer reactors now operating in
the United States, are encourag-.
ing.
V
Currently, there are four large
Chairman of the Board, General Electric Company
New York, N. Y.
dollars of electrical equipment in
in the laboratories with these few
moved
Shape of Things to Come
.
asserts
the central power plant.
best for extra marketing effort,
capital improvement and expansion; previews some startling
technical and business opportunities open to business by the
/,
scheduled for completion in
1980's; 'and, of the challenges ahead,
.
singles out
atomic power stations under con¬
struction
in rthe
United
States,
the
as
the
opportunity
';
,
.
500,000
on a
development are
scale never before
r
;
-
.
-..
difficult the achievement of political and economic
most
•
the 1960's should make fission
con¬
supplement to fossil
fuels, on a substantial scale, in
the 1970's.
(Mr. Lindseth's paper
has more to say on this subject,
generating equipment replaced by "home atomic battery"; finds no sales force in in¬
dustry has better value to offer to consumers than does the
*
but it must be mentioned
review
electrical
appliance one; discusses aggressive gas industry
competition; and lays stress on need to channel long range
atomic energy
■
these
scares
are
the
•lems
•
days
when
Sputnik
followed by recession
it
not
JImW®
-
'
faith,
challenge,
truly
»
■
-
but
the
great
A
are cer-
speaks
the
f§^^H
MHHklfiHIHI
for
R.
industry
that
has
courageously
J.
less
shown
it
set
outline
of
work
for
the
bL
being
an?
startine with
surge
V-
Premise
ment 011 the importance of
laboratories
Electric
tute.
The
within
10%. When
ahead 20 years in
is
one
a
world of
that is not
nificant variation
....
a
ex-
on
million kilowatts of
Sonera ting capacity
by
^ F
with this years
million kilowatts. It will
take
the order of 3 trillion
kilowatt-
e.lectri£al
Shu
a natl0n whose
Will have passed
nnumi*
u
-
the
energy to
population
the quarter-bil-
mark.
eleetriml
UinnSgs!
its
the
mv
ergy.
.
uine
storing electrical
Solar energy has
possibilities on
Let
me
cussion of
sum
the
the
those
first
turbines
need for
as
T+
«
iQ
+L?
in
F
c advance
who
sudden
,.
appropriate
electricity.
'
which
(2)
,
As never before, the elec¬
industry must assure tomor¬
row's progress by
continuing its
vigorous exploration of scientific
opportunity and exploitation of
,
technological gains.
.
My comments thus far have
phasized
tricity,
watt-hour has averaged about 3 %,
compounded
year,
During
the
period
annually.
to
1950
to
a
it
ever,
no
time for details, but
factory, in commerce, in the
home, and on the farm, the em¬
phasis in the coming decades will
limits
can
done
metals.
ment;
that
genuine
being reached in what
are
be
be toward
Technically, how¬
appears
with
Until
knowledge
is
the
some
tive
basic
trial
ap¬
technology
turbine-generator
may be
considerably
smaller
en¬
the
those
some gen-
in
utilities
years
that
ahead
duction
in
fuel
and
commercial
higher-capadty
tems,
■,
Experimental High Voltage
arealready
consumption
per
:
;; One of the most exciting proj-j
ects ' in
the; i electrii^r field ,is
General"'Electric's
nounced
newly
Cxtra-high voltage
f«
toe
Primary Markets
Trading Facilities
are
►
'.
r,___
® Pace of sciis being stepped
.
and
there
concerned
are
lest
a
breakthrough
might unexpectedly make major, long-term
investments obsolete. There is no
evidence; to support such unrealistic
concerns.
•,
.
BONDS
Pace of Atomic Fission
Progress
•
PREFERRED
STOCKS
•
COMMON
STOCKS
Consider the pace of progress in
atomic fission, for example, which
has been
pressed forward by subexpenditures from both
private and government sources.,
stantial
In terms of
courage, investment,
and work, such
goals are
dous.
It
both
the
stupend-
is indeed
fortunate that
manufacturing
and
the
utility sectors
dustry have
about the
because
of the electrical insuch close
agreement
challenge of
—
to repeat
i
truth—Ww
•fv.
without
the
supplier, but
address
as
as
by
laboratory
capable
Working tocustomer
partners
in
adventures,
Mr.
CnnJ^t- An™aFEdis.on
Convention,
Cordiner
amount of
producing
power.
a
large-scale
of
tiny
a
reaction
power
plant
up
ca-
economical
New York
Boston
one
ob;iec.tive of
process.
a
long and
The important
economically feasible
we
demonstration.
.In the three
since
the
and
passage
a
of
half
the
years
1954
Detroit
•
San Francisco
Philadelphia
•
power has proved to be
exPensive
before
Blyth & Co., Inc.
reaction
But to expand
producing
and
Electric institute
Boston, Mass., June 9, 1958.
of
+thlS ?ny lab°ratory
1 to
other.
o^any greatest
"An
ancient
power
from atomic fission was
proved
by Dr. Fermi and his associates
in 1942, with a
US Can Succee(f Pable
4.
gether not only
the future
an
The technical feasibility of
•
Pasadena
Minneapolis
•
San
•
Chicago
Pittsburgh
•
•
Diego
Spokane
•
•
Los Angeles
Cleveland
•
•
San Jose
Oakland
•
Fresno
establish¬
transmission sys¬
the
with Complete
of elec¬
for
a
long-range, efforts
imagina¬
use
ments; and toward higher-voltage,
provement; in
new
more
toward bigger blocks of
with' homes
using the
equivalent of today's small indus¬
that the increments of im¬
pears
automatic equip¬
economical
power,
new
it
more
toward the
and
tronics;
available
discovered,
electricity.]
There, is
mainly
rapid increase in the average
pressure, and size of
units installed.
be
many new ways to
and, use
in the
a
temperature,
the
but
em¬
production of elec¬
the laboratories are
exploring
distribute
1955,
the rate of improvement rose to
remarkable 5% a year, due
are
also
the
'
Seattle
Louisville
•
Eureka
•
•
•
Portland
•
Indianapolis
•
Sacramento
Palo Alto
•
i
selling price for I
nation's
.
+ha+
enormously,
some
the
prospects;
+rim
business—
the nation's
realistic reappraisal of
a
the
as
;
up
our
of
economy'—may depend on win¬
ning public understanding of the
aver¬
special-' operating
the
largest-size
ma¬
v .
chines.
The company's scientists
this brief dis- and engineers estimate that a re¬
application basis.
;
trical
a
semi-conductor converters of va¬
rious kinds, the thermionic
power
of
on
business and
indeed, the health
have
Over these 50 years, the reduc¬
tion in fuel consumption
per kilo¬
electrical
converter, and the need for
systems that,
gain.
challenges presented by su¬
perconductivity,
the
fuel
cell,
methods
century,
engineering
engineering activielectrical industry are a
major r factor
growth
up
„
evaluation
of
the
data shows that the
United, States
will need 665
in
conclusions:
and
ties of the
si°-
_
realistic
?Q7Q
Jol
135
Since
research
looking
plosive change
A
be
1979. If space permitted,, it
would be interesting to -explore
'
industry has welcomed
change and has invested millions
of hard-earned
profit dollars to
bring it about. Today, the re-
Insti-
of •
difference,
difference, is
margin
a
A
to
electrical
Edison
explored
half
past
entire electrical industry has con¬
tributed, have made electricity the
American consumer's biggest bar¬
a
other
which
clear
improvements, toward which the
undoubt¬
many
two
-There would be little disagree-
lesdershinTnTe
leadership role—
McAfee,
President,
however,
the
and
edged reciprocating steam engines
out of the picture.
These
;
possibilities
to
right
the
ofmen
thk
are,
thing like the degree that has ex¬
in recent years.
This leads
for
estimates of the
20-year
future are
remarkably close to
those set forth
by Mr.
s
not
not
isted
future.
The islative halls.to see what Portents
-of®. naLnal for the future theV mi«ht Present,
building
PP7 to say that General
,
did
appearance be¬
are
out¬
age, use only about one-eighth
much coal per kilowatt-hour,
year
comments will be directed toward
*
T
would
on
laboratories, and which may
having appreciable effects in
J? tha market places,
rts
anT mature farSighted' C°llfiderit tur^
Electric
V
technical
™
!ab°rat,orles,'
justified by events.'
enterorise in its
enterprise in its
scale
power
There
.
great
fusion
how¬
generating
going to be
enough to offset the inflation in
your
production costs, to
any¬
are
your
erator
im¬
General
the first fission plants are
into operation now.
Thus,
Fission and fusion
next
that
;
ne^t
develop¬
edly the two principal long-term
prospects for basic change in the
technology of the utility industry.
But
fu™,
another per?od° of Sr-'
vrnwth
From
basis,
(1) Unless the basic inflation^
ary trend is halted, the health
of
research
as
century.
of things to
come is
being determined now—
in the executive
offices, in the
ably in carrying the
economy
through those periods of adjustwent, and the wisdom of your in-
and
ahead.
-
nationwide
a
the advances in
efficiency
combined to produce turbine-gen¬
period
fore the final two decades of this
as
X 55JRS5 &
and 1970's. The shape
Investing
and
the
fundamentally determined by decisions made, battles won, funds
invested, facilities built, and re-
high
exceed them.
utilities in the recessions of
194950 and 1953-54
helped immeasur-
through
ill
likely to make its
audience
samif manner, the^most
SS afelCeV/t wM
was
technically
significant
objective of tre¬
the
On
During
is
I
sev-i
Using Less Fuel Consumption
Electric's studies,
economical
the
vestments
immediate
high-capacity machines, by
ever,
proved
this
pass
research
mediately
be
is
n°t the case. The main patterns
of today's electrical industry were
Cora.ner
can
to
power
efforts
substantial
sophisticated
business generation.
.;
goals, and then
yet
the
and
from
750,000
omy.
generator technology is an im¬
portant factor in planning for the
is
timetable for fusioh
Tb
mendous
ment
going
through
it heard these
distant goals set forth, that this is
•effects because
fusion
milestone is
just
goals.
might believe,
reaching
he
that
good times and bad.
tain to have
far -
an
arithmetic
They can
by sustained effort,
won
pursued
President's
i
the
achievable
only be
of
industry. Your
words
All
that
what
Therefore
to
companies,
will
produce
further advances in
system econ-i
• ?
look for developments in turbine-
J
■
future.
near
any
it appears that
necessarily mean that they repre- -the late 1970's may find the first
sent the shape of things to come, demonstration
power
plants of
They are only goals—high, hard, fusion power going into operation,
work, and vision from
be
■
perspective,
It has
feasible.
statement of faith must
mistaken for careless opa
timism.
in-
spokesman
these high
surpass
.
Such
in
shape of things to
•• -
this
the probable
went into these computations
may
be
correct,
but
that
does
not
spiring to hear
words of
and
goals.
the
is
reach
can
prob-
of
day,
a
v
With
policy in the national interest.
scares, and so many of our fellowcitizens seem to be overwhelmed
by
come.) "
power?
In
the
of
larger
eral
(3) Nothing on the technologi¬
cal horizon gives promise of re¬
placing rotating machinery for
generating
electricity
economi¬
cally—not on a big scale or in the
an
economical
Doubts technological
rapid
the
use
of
•
ditions conducive to opportunities ahead.
horizon will see rotating electrical
installing
kilowatts will
come into use in the
1960's.
In¬
creased
ihterconnection and the
trend to joint purchase
and
and research and
proceeding
•imagined. ?
I960.
making
already available,
turbine-generators ' rated
of doing things
ways
by
progress
j
the
' of
machines
in the electrical industry are nev¬
ertheless inevitable and necessary,
Thus, the experience gathered in
are
(2) New
:
year
years
the average,
There are, of
course, many utiL
ity companies which still have
plant increases. That is to
say; the so-called "home atomic
battery" is hot likely to replace
....
these—recessionary— times
of
a
on
power
...
-
size
the
as
of
perhaps 1 to
is. the best that
can
be expected in the
next 10
V/2%
economical
Thursday, June 19,
1953
.
.
kilowatt-hour
(1) The two' most promising
prospects,
fission
and
fusion
power, become more efficient and
:
.
Oxnard
an?
proj-|
Number 5752
187
Volume
.
.The Commercial and Financial Chronicle
.
to reach the
an experimental high-volt¬
transmission line to be built
not i'ar from the company's High
Voltage Laboratory in Pittsfieid,
Mass; This "three-phase transmis¬
sion line over four miles longwill have a rated system voltage
of 650,000 volts, suitable for oper¬
ation up to 750,000 volts. As you
will recognize, this is a consider¬
able advance > over the highest
previous voltage of American
ect
—
is
age
tricity and
equipment
Let
been
curve
accord¬
year,
most
presented.
is
it
that
sales
of
of
■vital ingredient missing from the
manufacturers' program? Is there
the
have
other
A
increased
on
■
the
of
have
tried
many
efforts of
seems
the
indicate
to
fronts.
to
forward
move
on
?
.77
tomers
a
produce
a
coordinated
group, of
what constitutes a chase
"normal" year—the appliance and appliances, rather than just one
increased.
television receiver business seems appliance, have been
say
growing
twice
of
today's
A
as
many
of
study
expect a premium price in order
to pay the cost of research. Ac¬
tually, they can continue to offer
their products at attractive prices,
major
a
the
lias
increased .-to
been
and
a
This announcement is neither
77.
both
expanded
turers
.
.
and
have
been
•
clined
the
improved in terms Of special-
an
offer to sell
components
crease
tomer.
for these
useful home products and services.
that
has found
nor a
solicitation of
an
I
no
which
they have the volume of busi¬
required to keep production
as
well above the
Such
volume,
am
/
level
on
of
to
required to
profits
tain their assault
The
the
earn
value
to
the technical'
on
But
;
future
the
mined
not
only
is
on
deter¬
laborato-
the
11.
the models used
cost-of-living index.
the
e.,
offer to buy these securities.
'
.
ties. It is also being shaped in the;
'marketplace./ •
* \ r* v V
Projects
Changing
Debentures
Growing
and
/
Market
■
Municipality of
(Province of Ontario, Canada)
•
Due
77" Dated July 1, 1958
' r
v' ;
4;"'.
r' •"v *
July 1,
as
shown below
f
The character of the market; is
going -to ehangedraharaticaUy in';
the next 20 years, and will offer
new. opportunities
for everyone
$3,800,000 Instalment Debentures
'
.
associated -with the electrical
dustry.-Rising
and. education,;
Public
in¬
levels of income
along with the
/
Amount
•
sharp increase in household for¬
mation in the 1960's, will mean
a i bigger,
higher quality market
for residential uses of electricity,
The United States population is
trending toward the formation of
What
might" be. called "super-*
Price*
Date
100
100
3
100
31/4
31/2
100
3%
33/4
99.54
Offering
Yield to
Rate
Prte*
Maturity
98.50
3.95%
33/4%
100
4.00
48,000
1969
4
100
4.00
49,000
1970
4
100
4.00
52,000
1971
4
100
4.00
54,000
3.85
1966
Interest
Date
4
1972
4
100
4.00
* 56,000
1973
4
100
4.00
3.70
99.32
1965
Apprex.
Maturity
1968
3.50
1964
Public
•
1967
3.25
100
•
>
344,000
3.00
^ 1963
*
.
$332,000
2.75
«
.
Amount
.
2.50
1961
21/2
23/4
1962
•7 399,000
100
-
Principal
*
Maturity
2Y4%
1960
:
v'
Yield to
1959
$360,000
371,000
385,000
415,000
300,000
311,000
324,000
Offering
Rate
Maturity
Principal
Approx.
Interest
2.25%
:
~
(ipius accrued interest from
7 ' \':,
July 1, 1958)
cities,"
as the suburbs of neigh¬
boring cities spread out and over¬
lap into
continuous
urban
areas
hundreds of miles long. /New in¬
dustrial and residential
areas
,787,000 4% Sinking Fund
will
fvolve along the great through$dys that are being built on a na¬
tional
All these
scale.
lation
centers
will
new
large
Price 99.25%
Quantities of power for commun¬
ity facilities
such
as
Debentures
July 1, 1978
popu¬
need
Due
water
(Plus accrued interest
from July 1, 1958)
and
plants, highway and street
schools
and
shopping*
Highly / concentrated
blocks of power will be required
for new industrial parks and resi¬
dential areas. The development of
I pigger industrial and residential
markets in areas formerly confined
to agriculture and mining, espe¬
cially in the south and the west,
sewage
lighting,
centers.
Will
provide
new
outlets for in¬
dustrial, commercial, and residen¬
tial load. In such
a
Yet
be
no
business manager needs
reminded
dealers
Harriman Ripley
;
that
every
;
A. E. Ames & Co.
Wood, Gundy & Co., Inc.
.
'
The First Boston
McLeod, Young, Weir, Incorporated
Blyth & Co., Inc.
Salomon Bros. & Hutzler
Lehman Brothers
;
| Between now and 1979, the injdustry must sell about $500 billion
of
$iy4 tril¬
electrical
equip¬
ment, in terms of today's prices,
White, Weld & Co.
kilo-
Burns Bros. &
worth
Corporation
Incorporated
Mills, Spence & Co. Inc.
Denton, Inc.
.
Nesbitt, Thomson and Company, Inc.
Greenshields & Co (N. Y.) Inc
dollar.
worth of electricity and
and other
The Dominion Securities Corporation
& Co.
Bell, Gouinlock & Company
lion
securities in this State.
Smith, Barney & Co.
sold—sold against a growing mul¬
titude of competing uses for the
customer's
obtainable from only such of the undersigned
lawfully offer these
Incorporated
Watt-hour, evei;y dollar's worth of
power
and
equipment, must be
I
as may
vastly expanded
market, the forecast of 3 trillion
kilowatt-hours a year by 1979 is
entirely feasible..
to
Copies of the Prospectus are
W. C. Pitfield
& Co., Inc.
Dawson, Hannaford
Inc.
■
Equisec Canada Inc.
•.
in¬
cus¬
the
con-
page
60
t
■
Metropolitan Toronto
being
in
that
when I say
offer
Continued
sus¬
barriers of the future.
fact
industry has
$39,587,000
steady basis,
a
them
raw
making the under¬
of the year
break-even point.
enable
should
key
greatly
sales force in
better
a
the
of
research and development, as long
ness
of
prices have de¬
their real value to the
statement
customer to buy and pay
housewife
spite
of
cost
New Issue
they do how, and continue their
features,
appliances ' have r many
improvements
Liberalized credit arrangements
have made it much easier for the
the
the
The
in
today's
ization.
While
in
materials.
manufac¬
The offer is made only by the Prospectus.
,
new
government's
increase
five
appliances have actually declined.
expanded,
12-cubic-
refrigerator and
sells for .less than $300.
currently
are
electrification and automation has
a rate of less
Yet major appli¬
expected to be
as
high degree of
Factories have been rebuilt and
televi¬
$230, while
$330, while the equiv¬
model
freezer, with
higher and higher price tags on
nearly everything she buys in re¬
cent years, the prices of electric
at
than 3% a year.
are
than
more
appliances
times the prewar level.
The sales efforts of
exciting
<
ances
the
alent
.
to
from
foot combination
ers
greater, flood
of,<new,
products
and
features
-than in any previous period. New
appliance
busiiies.f to
warrant
appliances
and '
entertainment
such optimism.
There has beeh
products have been introduced,
little growth in unit sales since
1950.
Ignoring wide swings in styling has become much more at¬
tractive, and inducements to pur¬
year-to-year sales''volume — and
levels required to war¬
benefit
can
appliances and television receiv¬
In the past 10 years, the manu¬
facturers have, offered their cus¬
There is nothing in the/current
sales trend of the electric major
be
12-inch
cost
cost-of-living
being sold.
index reveals
that, while the gen¬
Distribution patterns are chang¬ eral cost of
living has risen 26%
ing. " As these changes proceed on since 1947, the prices of major ap¬
an evolutionary basis, the cost of:
pliances1 have actually declined
moving goods from the factory to. 14%. These declines in prices have
the ultimate consumer, along with
taken place in spite of a 63% in¬
the services the customer wants,
crease in the cost of labor in elec¬
is being reduced.
trical manufacturing, and a 50%
Manufacturers'
advertising of
•4
.
to
the
1950
of 1950 cost
many
that, while there have been hu¬
and shortcomings, they
con¬
a
tinuation of that trend.
to
of
set
The
to
man errors
the
than
faster
review
manufacturers
classifications, and forecasts
who is
example,
11
today's 17-inch set, a better prod¬
uct all around, costs only $180.
eight-cubic foot refrigerator
/
*
of future load are based
new
values.
providing that high volume can be
maintained. At present, it appears
that the industry has the
capacity
home
appliances have not grown at the
generally agreed that the "rate they should? Is there some
back¬
attractive
sion
economies of volume production—
of the evidence.
some
For
manu¬
customers
Appliance Sales?
Why
the
into
The industry's productive ca¬
pacity has been increased so that
Why Decreased Consumer
*
introduced
facturing processes, to produce the
.
consumption
of
the
average residential customer. Res¬
idential
and
rural
power 7 sales
stimulate—con¬
tinued
investment in
scientific
advance.
One sometimes hears
that
the
leading manufacturers
as
'been
has
watt-hour
industry's research
the volume
rant—indeed,
a
--
and development have
and profit
of 8%
ing to the 1979 forecasts that have
account for two-thirds of the kilo¬
products, and new processes are
going to be essential to achieve
the growth envisioned in Mr. Mc¬
Afee's forecasts. These technical
challenges can be met as long a;
the manufacturers which provide
-
cite
boosting the load
utility business, the
by economic reces¬ something more that the electric
sion and potentially the greatest utilities should be doing, to close
producer of revenue. At present, The gap between market potenmajor appliances and television trial and market reality? 1
brief review of the
the
is
bone
prospects in the laboratories, it is
of
in
average
least affected
operation in planning this work, '
most
me
It
'
knowledge,
industry
to the present.
residential customer is the
maximum value to the industry,
we have approached the. Edison
Electric Institute to ask, its co¬
new
much
as
present evidence, that this
sales objective will be attained?
assure'that-this project will .be of
that
an
Is it reasonable to assume, from
foreign experimental lines.
Knowledge and experience gained
extra high-voltage proj¬
ect in the 1960's will lay a foun¬
dation for the operating transmis¬
sion systems of the 1970's.To
clear
factor
much elec¬
times
the
as
as
the
with the
this
four
sold from 1879
or
From
goals envisioned. This
about five times
(2723)
Harris & Partners, Inc.
Midland Securities Corporation
in computing
12
The Commercial and Financial Chronicle
(2724)
Women like it, too.
finance is price inflation and frus¬
Money is universally sought aft¬ tration of,all our neatly-laid plans.
and universally use. In varying
"When we say that money is no
degrees, everyone has some of it, object, we also imply that we do
and everyone has had experience not care how little it may buy in
with it.
:
the markets or how much misery
Keeping Our Heritage of
freedom Is No
Easy Task
*
,
-President, Chamber of Commerce of the United States
T^ Chairman of the Board, First National* Bank in St. Louis
:r; :b
L *. '' '< •»« m''"- ■'
,1 '
a'' 1 ,\{* 1
^
1
'■*
thing ' which
ev&fyone
is so familiar, would bb thorough¬
ly ; ahd
universally understood.
And yet, I venture to
"say that
*
blam^fet"presenf|||t
there is
;
done about it, are among
i£p.—oijce remarked that aS
merce
a pro¬
fession, advertising is' young; as a
force, it is as
1 d
o
world-. The
tains
v
,v
■
,
-
■
•>
National
De¬
Chamber
Wash¬
in
H "We
that
a
;
ancient fallacy is taken out
mothballs, dusted off, and of¬
fered pf labor unions as an argu¬
; This
-
,
of
simply take it for granted
'dollar is
a
money.
dollar'—and that
a-
franc,'
and that all
,
four
first
words
ever
ut-
tered, "Let
be
there
consti¬
light,"
tutes its char¬
All
acter.
na¬
adopted
policy which
"As stewards
of
the
public interest, business
(I might say at this point, that
managers should never fail to rec¬ in this
age of outer space, it would
ognize their responsibility to in¬ be nice to have
Copernicus work¬
terpret their actions through con¬
ing for us.)
ington
states
in
a
part that
communications
tinuous
employ¬
its im¬ ees, suppliers and distributors, and
the community can judge objec¬
ture is vibrant
with
pulse.
customers,
stockholders,
tively and in proper perspective
commentator the great contributions of busi¬
Another
advertising
who bears that
on
W.
A.
McDonnell
l 1-k
w e
is good, it pays to
when business
advertise;
that
said
Nonymous,
A.
name,.
nown
is bad,
when business
you've got to advertise
y,
the
who
do
like
It
does
not
.
us
pay
much—and
you
not allowed to take home free
are
of adver¬
tising, jof course, is to move goods, samples of the product—but it is
but
an
increasingly
important fun.
But I am not here to talk about
purpose of advertising is to move
The (primary purpose
banking, but about money.
idcEis*
assumption
can
and
all
that,
legislative
of which
things,
high level of
is an absolute
a
power
as
tional
of
the
object;
spend
that
is
that
we
want.
We
power.
'
y'
'
for
every
dollar of gross
the enterprise taking in
that dollar is in a position to pay
cause
Na¬
receipts,
'nnt
■'«'
n•
>■
•,
;
i:,.
Wage Cure Argument
It is
being argued that Wage
now
increases
will
the recession
because they would increase
pur¬
cure
chasing power. The exclusive em¬
phasis on wages as a source of
purchasing power is a fallacy,
vlt is; true that-wage, increases do
the
increase
those
who
purchasing
get
them,
power of
what
who do
about: the millions
but
not—
the
farmers, y the self-employed
professional people, white-collar
workersv and thpse living
incomes?:
increases
that
on
fixed
,Vh:U:.
For some
a dollar for
wages, raw mate¬
rials, containers, power, fuel, taxes,
dividends—and might have a little
get all
forget that
left
be
may
which
over
is spent on re¬
expansion—so that
inevitably
increases
wage
people,
affect
follow
everyone.
people,purchasing
increased,
but
it is reduced.
power
for
most
/;
But the unions say—
oh, no.
prices need not be increased. All
have to do is to take the in¬
you
creased
wage
and
tant
rates
bloated
this
point at
vention
are
out
of
and
those
exorbi¬
profits of corporations.
ter Reuther stated
in
a
when
taking
a
labor's
recent
he
trouble
ness is
Wal¬
case
labor
said
that,
because
disproportionately
discussion programs.
is
needs is higher takefor workers and lower
take-home pay for corporations."
pay
This recipe for curing economic
recessions
completely ignores the
Department of Com¬
f igures do not back it up.
salt of truth.
merce
the income stream its entire gross
receipts.
total
the firm
figures preceded by dollar
signs, but of blood, sweat and
big
tears.
or
automatically returns to
y
'
Most firms
since
they
do
also
more
tend
than
to
that,
into
go
debt, and thereby pay out more
dollars than they actually take in.
Everyone's purchasing power
national
income
has
1957.
In
1948, corporate net earnings
Continued
is'
on
page
silver
Economic
Need
We
Education
Oiir
country is emphatically in
need of more economic education.
And indeed the world wide strug¬
dollar
across
some
CAt/un
&
MEMBERS
NEW YORK
MIDWEST
a
You'
This
dollar
j4. Cd//un and Companu
ey around.
A lot of people
panies, and not the law of supply
and demand, control .prices; that
business makes annual net profits
up
to
50%;
that
most
concerns
could raise wages without raising
prices, and that prices could be
considerably cut with companies
still making a reasonable profit.
It is bad
enough that these fake
<
,
I
might add that modern day
patriots are throwing bigger mon¬
Or
think that money
will buy anything—because it is a
medium of exchange. That is not
true.
of
buy happiness; it will
not buy health; it will not
buy
It will not buy love.
course, now, I am
Confederate money.
speaking
Incorporated
Underwriters
It will not
friends.
EXCHANGE
£§:£:;::x£:-
"long green with
short future."
school seniors
com¬
EXCHANGE
is
green—and
for that, reason, it is sometimes
called "the long green."
a
that
EXCHANGE
(ASSOCIATE)
bill
He called it the
believe
STOCK
down his way.
probably aware that
repeated surveys have shown that
a
substantial proportion of high
are
STOCK
AMERICAN
river
When I lived in Arkansas, I
gle between this country and Rus¬
sia may well be
won by that used to have a colored yard boy
who invented what I consider to
nation which proves itself the bet¬
ter
advertiser and/or seller
of be an improvement on that term.
ideologies.
STOCK
Public
and
and
Utility,
'
Distributors
Industrial
Municipal Securities
Of
since
1912
of
A frieiltf of mine, who is noted
are
entertained by future
voters, but it is just as bad that for his somewhat Lotharian habits,
the seniors' viewpoint undoubted¬ once said to me, that "Who
says
ly reflects the thinking of preSent- that money will not buy love?
day voters. In other words, their You just give me plenty of that
parents.
stuff, and I will do my own shop¬
ping."
The extent of economic
ideas
illiteracy
in this country,
plus the firm con¬
viction
that
something can be
'A*
the
address
Annual
industrial
by Mr. McDonnell before
Convention
Advertisers
of
the
National
Association.
Louis, Mo., June 4, 1958.
St.
Money enters the life
'Miv
["»
of every¬
one.
CHtCAGta
MEW YORK
BOSTON
It
brings
joy
and
sorrow,
triumph and tragedy. In order to
get it,
will sweat and toil,
lie,
cheat, steal and murder.
man
been
steadily declining during the tenyear
period from .1948 through
Here
supposed to have thrown
our
"What is
home
Some of the most
he
"we
big busi¬
These figures show that the net
income, after taxes, of all U. S.
corporations as a percentage of
placement
achievement is the product, not of
powerful and in my hand is a piece of money.
It is a one-buck bill, a dollar bill.
compelling editorials on the Amer¬
ican way of life and our people's It is technically known as a silver
capitalism are found in the adver¬ certificate, because the govern¬
tising sections of our magazines ment will give you a silver dollar
and newspapers, and advertising for it, if you want to swap.
There is a picture of George
is footing the bill for social, eco¬
nomic and political enlightenment Washington on this silver certifi¬
cate—which is probably because
by way of radio and the television
on
con¬
'large;share of the fruits of
developing economy.
out
is no
need to
Nothing is more futile to
real accomplishment, and demor¬
alizing to organized productive
effort than throwing more money
helter-skelter in every direction.
All we get out of irresponsible
between
Production should, and does, fi¬
nance
its own
consumption, be¬
money
that we simply
freely in order to
balance
whiskers.
City Bank Monthly Letter
idea
proper
purchasing power
comes firsty-and production comes
second
is; a
myth
with long
recently put it:
"The
a
contrive to main¬
The notion that
a
First
must
we
production and purchasing
is
nation,
have everything we want
and butter,, full employ¬
the Editor
As
call
us
bankers, a term we. prefer.
It is
commonly believed that
the there is something mysteries about;
business that considers itself im¬
banking.
mune to the necessity for adver¬
That is not true.
The business
tising 'that sooner or later finds consists of just three things:
itself immune to business.
And
(1) You get the money in.
even that famous man of silence,
(2) You put the money out,
Calvin Coolidge, found his power
(3) You try to get the money
of speech sufficiently in working
back in again.
order one
day to observe that
It is nice work if you can get it.
advertising is the life of trade.
Which it is.
behind
ment, subsidies and social welfare
and I
—
tain
utterances
lsoo
gets
'
swollen
But
buy
Those
of
purchasing
public
proposals
time of recession, it is
a
with
scheme
and sell money. People —everything—by the simple ex¬
who do not like those in my busi¬
pedient of spending more money.
ness
call
us
money
changers.
I
consumption to go along
mass
production.
In our
mass
must.
—guns
could not agree more.
In
of
This illusion about money mani¬
fests itself in many of the current
we
ness."
Banking Explained
disdaining the' importance
that
so
about
ment for
higher wages every time
We run into a recession of busimoney is stable—just as Centuries pess*•
activities.'y:•:
agd, before Copernicus, people
I hope T can make myself very
took it for granted that this earth
clear on this point.
I am' by no
was stationary."
" A ...
means
is
•
to
"Nobody
tin' for 'nuttin'," and it still
holds
good.
* .'/ ,77C.V.
- ; •;
• y
"
•'.i:
theory that produc¬
a high
there is not enough
back
dating
bO'
handing out or paying out more
;
^Heyidoscribed it like this:
;
a' 'franc
:
".
years ago.
erb
v
*
old American
prov
an
which says that
theory"—
Ancient. Fallacy
labeled "the money illusion"
by Professor Irving Fisher of Yale,
some
p o w e r; i
Or,, to put it another way* when
production falls off, all you have
to do to bring it back up is to cre¬
ate purchasing power by either
generally accepted '
are
\
as
Money
About
was
rea¬
Meeting oC
Annual
recent
Concepts
•
■
the
is> known
unless it
by productivity improve
There is
purchasing power to take the out¬
put off the market.
/.:r
■
The commonest misconception
of Com¬
Chamber
every-day life.
our
a
tion cannot be sustained at
about anything else that
are numerous absolutely
conceptions about money
which
-n-
thA
n g
the
is
There
Business. Relations
a
The
the
False
of the United States main¬
partment.
the
as
that the
sons
more
part of
a
false
■;
"
./.One Of the1 greatest advertising
men <of! this Century^-Bruce Bar-
i
as
level because
-
consumer
h
rc
which
is
deplores U. S. wage-price spiral and the coinmon belief
can be cured by stepping up purchasing power
through wage increases; asserts that the surest way to cure a
recession is to get prices down and, thus, release unspent pur¬
chasing power; and asks business and labor leaders to work
toward halting wage-price spiral that "has been .discouraging
"p u
what
is
1933
else.; :Everv
in
in the wage of a
worker is
cost to someone else,
is offset
Another misconception about
there is
man
p
it
money
ignorance and' mis¬
understanding about money than
that recessions
\
\ve may create among defenseless
people who have put trust in the
integrity of government."
common
with' which
usage,* and
FrencJb j'pliti^al unrestr by M
McDonnell who sees in this aA;
warning for our country after calling attention to our 48 cent
dollar in 1939'purchasing power terms., The business spokes*
V
■
depreciation of the franc is partty
such
has
19
cost to someone
ment.
>•
Now you would think that any¬
,}
<
•
The swift
■«
,
Thursday, June
.
.
crease
er
By WILLIAM A. MCDONNELL*
,i'
a
.
anti:S3 l;£>ffte rcllies
A :;'jV.;
"k
58
Number 5752
387
Volume
.
.
The Commercial and Financial Chronicle
.
(2725)
The reduction of allowables
year.
Popular Western
tractive
price/cdst/volume
tion
By DR. IRA U. COBLEIGI1
Natural
Gas
drilling
Company
can
The
has
scored
been
three
equa¬
,
static
for
some
i'-'i'.tC'.M•■'./>«*'{»
yvH/VY *,
For
'11
.
some
now,
years
' !f
;..<•«>.? ■
Western brought in last February. This pro'
Natural Gas has been favorably
regarded as a producer of oil and
natural gas, and an avid explorer
for sarnd; yet ■
somehow
it
of very
In
interest
3.25%
in
17
its
on
acres
Western
(50'%
owned)
at Boundary1 Butte.
this
?
,1
u.
,»
..
*
lantastically successful
enterprise, (2) excellent managemerit and (3) substantial financial
ural Gas, a
resources and
(4) an aggressive,
imaginative and extensive drilling
program.
These are all qualities
calculated to generate quite a lot
of forward motion both in earning
Between a
high of 19V2 (it
swung
3% and
low of
a
is 16V2 today)
oil stock of defi-
So here is an
romantic and speculative
five years, has been
little more than treading
No dividends, no market
nitely
a
hue that, for
doing
water.
splurge. But the promise
surge or
recent explora-
there and
is still
tory
successes
giving
are
more
substance to it.
Since
A
*
is
a
natural gas
and its parent is a huge
gas buyer, a new found gas field
is of major importance.
Western
has apparently come upon such a
new field in West Texas.
In Febcompany,
of this year, Western and
Magnolia Petroleum completed a
ruary
deep gas discovery well with an
open flow potential of over
180
million
day.
confirmation well
cubic
15,000
foot
being
feet
drilled,
southest.
All
per
tamed only by rising prices for
is
on
is
of
part
33,600 acre block owned 50/50
by Magnolia and Western. A con-
a
tract
has
stock ahead o£ the .4,475,000 shares
ot common. This capitalization
creates less leverage than one
might assume, however, since the
195? series of 5% preferred (now
selling at 36V2) is convertible into
*81of pom in on at $15;
and the 1955 series of 5% preferred (now selling at 42/2) is
conver^iyi^) in^° 192,000 of common m $12.
already
been
arranged
with El Paso Natural Gas for
it
of
some
200
million
second
exciting development
in gas production for Western relates to the 1.7 million net acres
of
permits
m
British
Columbia,
by Gulf States Oil Co., its
wholly-owned subsidiary, and to
a 2a %
interest Gulf States has in
owned
253,000 acre tract (farmed out
by Imperial
Oil)
northeast of
Prophet River. On this last tract,
a
Fort Nelson,
near
bia,
a
promising
British Columdiscovery well,
Regarded as a major strike, was
brought in, last December.
The
importance of gas in this area is
tnat it can be tied into the Westcoast
Transmission.
contract at the rate
C.F.
per
day,
(Gas,
under
of 30 million
is expected to
three
jn
cussed
new
above,
a
Western would
lion
F.
natural
cents
at
per
of
leaseholds
worth,
plus
million,
an
at
; that
59th
annual
'was
Exec¬
succeeding
George E. Clark
,
now,
51/2
A.
years.
alld
in
liabilities
be
debt
amount of
the
major develop-
ment, favorable to Western, was
the discovery oil well in Block 10
Lake
Maracaibo
(Venezuela)
and
above does
of
optimjsm, there are plus factors
-n the situation
that should be
noted
No vaiue has been attached
Joins
(Special to Thic Financial Chronicle)
heavily
travagant, especially when (1)
the
long range price trend 0f,North
AmeriCan gas is definitely upward
and <2) over 40% of current company gas sales contracts come up
for renegotiation in 1959 and moderate increases in price are defi-
expectable.
Further,
made,
about
1 '
•
Joins
Russell, Long \ |
CliRoNiOEi)
(Special to The Finanmai.
Ky!
LEXINGTON,
Cleveland
with
formerly
Company,
&
Long
Short
West
257
Colo. — Elvin J.
become connected
Investment Corpora¬
DENVER,
has
with Liberty
Denham Building. He for¬
merly conducted his own invest¬
tion,
ment business
headed
by
Sinclair
and Gas. In the Louisiana
tidelands, this group already has
four producing wells and will
Oil
start barge deliveries
of oil this
affiliated
become
has
Russell,
Street.
Waddell
with
r'»!
Leslie C.
—-
inc.
He
&
was
Reed,
7;;;"..
With Eastman,
Dillon
(Special to The Financial chronicle)
BOSTON, Mass.
is
—
now
Gregory P.
with
in Denver.
State Street.
Two With Estabrook
CHICAGO, 111.—George L. McDonough has
become
with Reynolds &
Salle
(Special to The financial Chronicle)
Co., 39 South La
He
Street.
aassociated
was
formerly
BOSTON, Mass.—Jay K. Goose
and
(Special to The Financial Ciiuontcle)
'V
With Merrill
(Special to The financial Chronicle)
111.
CHICAGO,
—
Joseph
La
Walston
Lynch
(Special to The Financial Chronicle)
V.
Perlin has been added to the staff
of
Jonklaas have be¬
connected with Estabrook &
Co., 15 State Street.
Walston Adds to Staff
DENVER, Colo.—William B. E.
Anthony
come
with Walston & Co., Inc.
Three With L. A. Huey
BOSTON,
Mass.
—
offer to buy
any
Salle Street.
be construed as an offer to sell or as a solicitation of
of these securities. The offering is made only by the Prospectus.
June 17, 1938
NEW ISSUE
$15,000,000
Oklahoma Gas and Electric
Dated June 1, 1958
Due June 1, 1988
'
Price
1
Company
Mortgage Bonds, Series due June 1, 1988, 3 %%
First
101% and Accrued Interest
obtained in any State in which this announceonly such of the undersigned or other dealers
lawfully offer these securities in such State.
The Prospectus may be
ment is circulated from
brokers
may
as
Merrill
Lynch, Pierce, Fenner
Paine, Webber, Jackson
Goodbody
Co.
SC Curtis
SC
Granbery, Marache 8C Co.
White, Weld SC
Co.
Smith
Francis I. duPont
Kidder, Peabody & Co.
C. F. Childs
-
and Company
Co.
L. F. Rothschild SC Co.
McDonnell 8C Co.
Hallgarten & Co.
Shields SC Company
Fahey, Clark 8i Co.
Hayden, Miller 8C Co.
Henry Herrman & Co.
Elworthy 8C Co.
Halle & Stieglitz
Incorporated
Irving Lundborg 8C Co.
Henry
F.
Nelson and William F. Waters are
South with Merrill Lynch, Pierce, Fenner & Smith, 18 Milk Street.
& Co., Inc. 201
This announcement is under no circumstances to
an
Eastman
Dillon, Union Securities & Co., 50
Reynolds Staff
no
the
6.25%
group
'
the side
on
important new finds
in Tex
British Columbia and
Venezuela.
Further, valuing gas
reserves at 3V2
cents is not ex-
was
record, teed off at the
a
tournament.
(Spesial to The Financial Chronicle)
^hose very
nitely
golfers,
«,
a
With Liberty In v.
Halladay
a
Hay-
den, Stone & Co., the Association's
Chairman, stated that some ,200
Plunkett
f
with
Jacobson
Robert
to
Richard G. McDermott,
74.
gas
Assuming that the
ment
20.5% interest.)
oil
or
too
went
and 15 handi¬
67. Low gross
net of
a
(
view
merely set down to outline, in
general, the probable values contained in this common stock,
yeer
golf
82 gross
an
for
cap
rut. Those who ager of the company's Claremont,
in the ground New
Hampshire works; and Assis¬
as a valid hedge against inflation
tant
Manager of the Franklin,
may find something they like in
Western Natural Gas.
Pennsylvania works.
getting out of
production
oil
Deducting
million.
$118.1
He had
B.
Drastrup,
who has re¬
June 17
on
Cup ,4at
.
Vice-
Preside nt,
speculation
Governor's
the
tournament of
the
New York
Stock
Exchange
Golf Association at the Winged
Foot
Club, .Mamaroneck, * N. Y.
He.l-
C.
utive
Western
aV I6J/2 is
common
the
elected
sizable
that
attractive
won
Louis
payment worth $11 million. Add
these together and the total is
has
Gas
Schubert
Walter B.
an¬
mick'
V.
a
Y GoK Tournament
same
$25
$10,
interest Western has in an
offshore exploration and develop-
recent
of/evidence
more
.
/
•
conclusion, there is
body
a
history.
company
In
v e
nounced
document the best year
1.9 tril-
worth,
gas
C. F., $66 million;
million barrels of crude at $1.15
3i/2
14
c>
mention
third
in
4L
pany,;;:
share. Both of those
should move forward in
and
the
was
Winners al NYSE
fair estimate for
be about
tember, from the existing Blueberry field in which Gulf States
a
At
many,,years
'u-;r
its
t i
x e c u
y
time, the com¬
around $1 per
1958
of
for
discoveries dis-
delivered to Westcoast this Sep-
A
E
of
1955)
sale
C.F.
sibility.
A
flow
cash
a
Casper
with John J. O'Kane Jr. & Co.
Committee!'
share net
has not recently
Allison, Lee C. Brooks and Row¬
published estiland D. Young have become con ¬
mates or calculations of its oil
nected with L. A. Huey Co., U. S.
and gas reserves. Without allowNational Bank Building.
ance for reserves and recoverables
iate
$17 million, you arrive at a net
figure
of
$101.1 million.
This
daily, once Federal Power Com- divided among 5,329,000 common
mission approval has been given shares (assuming total conversion
to run a gathering pipeline sys- 0f the preferred) creates a per
tern into the area. Assuming the share equity of roughly $19. Reflowering of this Goode Ranch member this figure is reached by
field as projected, a cash flow of highly unofficial estimates, and a
above 50c a share
on
Western calculation
uncertified
by
any
common is a distinct future posfirm 0f public accountants,
It is
to
and
per
Mr,
elected Chair-,
maim
company
(since
A worth $16.1 million; 2V2 millions
the
to
miles
IV2
this
cents,
a
as¬
with
Sidney Jacobs Co.,
Exchange Place, New York
City, in., the trading department.
City, has been
wells, have already bCen located.
The
Western
37
of
was
York
New
i
sticking °
DroUtfhie
bL^
and improved share quota- natural gas, and larger oil protions.
Yet the record shows that duction.
As a result, the comin the five year period ended Dec. Pany has needed
to raise some
31, 1957, net earnings per share money to finance its drilling.
It
ranged narrowly between a low now has $15,200,000,;^., long-term
of 27c and a high cf 39c; and in bonds, two issues totalling $11,the same period Western Natural 400,000 of $30 par 5% preferred
common
.»•«
••
than at any time in the past
New petroleum findings signed from the position.
Mr. Clark had been elected to
proration and development,! are now Expanding at a moremapid
rate
than
production,
and 5 the the Company's Board of Directors
against
in 1957 The
company is also working to bring geographical spread of operations at a Board meeting on May 28.
and holdings, in some of the most
pretty promising
areas
in North and ; Mr. Helmick had been serving
d
where
South America lend considerable Joy as Vice President and Gen¬
wells have already
romance to this speculation. While
eral Manager of the' company's
early dividends
do not appear
Actually in tne last two or three likely, and Western common sells industrial division. With Joy since
years gas production has declined at a high price/earnings ratio, 1947 Mr. Helmick had been Man¬
and cash flow has been main- earning power here appears to be ufacturing Vice President; man¬
power,
Gas
of
quality and extent, point to a sub¬
stantial increase, particularly in
natural gas production. FoN j.957,
the end result
Harry D. Casper has become
sociated
40
production and
gas
Com¬
Pittsburgh, has announced
George E. Clarke/President
the Adamsf Express Company,
$l£million
Cobieigh
Nafw*
by lower
Natural
is operating
year
on a tighter
budget. It expects to
spend around $7.5 million in ex-
claque-—.
subsidiary o£y<
set
Manufacturing
that
oil delivered have been off¬
more
figures
Utah,
11,000
build
Poco-.
10% interest (com¬
a
has
from' wells
wonderful'
sponsorship as
F1
which
Western will deliver
15 million C.F. a day of gas to
EI Paso, beginning next January,
(1)
a
the 25,-
25,000 acres in Block
Maracaibo).
Lake
board
a
in
acres
another
had the quali¬
up
also
pany
reserves-on
10
Western has
growth-ty p e:
speculation in
petroleum: - It-
room
large
Block
000
aged to live
up to its bill¬
ing as' an at-'t r active;
ties that
years, no\yu looks brighter.
Whereas higher prices for gas and
Joy
pany,
ducecl 4,080 barrels a day through
rising costs of drilling and ex¬
a three-quar'.er inch choke, and
ploration, the mew finds, both in
indicated the probable existence
man¬
never
;!J;:
major hits.
;
Mn,'-
fi:'
The
earnings picture which has
disappointingly
Harry D. Casper With
Sidney Jacobs Co.
.
Joy Manufacturing
be worked out.
Enterprise Economist
Western
Clark Elected by
will, however, slow down devel¬
opment drilling, until a more at¬
13
Davenport & Co.
14
The Commercial and Financial Chronicle
(2726)
subsidiaries, is
electronics, as
big
electrical
The Electronics
Industry—
the Larger Companies
A Look at
.
small
of
hundreds
The
Key to
com¬
in
of
the
lack
of
agement
in
financial
sound
many
$600 Billion Economy
a
By IT. LESLIE HOFFMAN *
technology, the.
military business,
changes
importance
,
Incentive Commeiical Research
panies in the field, the impact of
rapid
.
major factor in
several of the
equipment
pro¬
are
ducers.
By DR. W. I. LATOURETTE*
Manager, Research Department of Shearson, ITammill & Co.,
New York City
Adjunct Assistant Professor of Finance, New York University
a
President, Hoffman Electronics Cqrporation
Los
man¬
this
difficulty of appraising the com¬
Winner of
declares the time has
ing the electronics industry, and explains why it has proved
ness
were
indus¬
clines.
Most
fading
away
are
the
of
one
dynamic growth
projections pale
more
Future
.
sile electronics, and $1 billion for
even
-
past
i
record.
The
are
J
-r
fiscal- 1959
for
"1
_
1*11*
A
Hill
publica¬
tion,
Looking
"Elec¬
•
tronics,"
Further Ahead
further
balance from
dicts that sales
on
of
phasis
consumer
from
electro nics
products,
expenditures
which
of
were
around ' $l1/2
last
by
on
shift
each
for
missile
in
estimated
s
1959,
about 48d
dollar
will, be
of
I.
W.
LaTourette
1965
23% to 25% in the current "fiscal
:
and should top the $-3 billion mark" year and may well reach 30%
by
1975.
trial
was
concerned
with
because
the
of
Our
than
the
one
Commercial
spending
and
indus-. I960.
Finally,
by
research
difficulty in selecting individual realize what
companies which are likely -to was happen—
benefit from the prospective up-~* n §>
has
surge in electronics, - a policy of mushroomed
concentrating on larger companies into an: enor-
electronic
Westinghouse
electronics
Fortunes
Electric where'"the
play is thinly
of
these
spread
companies
are
-
predicated
we
.011
maintain
can
and
the highest living standards at one
and the same time, without either
being sacrificed for the other. This
could
we
is
economy
thesis that
the highest military standards
%
faster
almost
extreme
just
making
«.•«.product. But
Partly
simple
relatively
a
business—close-knit, compact, and
The Big and Not So Big Companies
em-
missiles,
to
dustry
Norden
and
better world tomorrow.
a
thinking on the '.salient elements
of our economy.
is
in
small
no
the
order.
It
international
periority
and
sibilities
for
that
means
for
race
survival,
su¬
have
; we
established objectives and
aircraft.
minimum
50%
the
Lear
today and for
Few Years Ago our in-
a
spent for electronics compared to
approximately 34p in the case of jn the field would seem the most mously cornSprague- Electric
esti- logical one to follow. By; larger plex-;.industry, y
mates- that
the
percentage
of companies we do not mean
We ndw-pFo-^major procurement expenditures industrial giants such as General 4 u"c & m a 11 Ygoing for electronics will rise from Electric " General
Motors ^ahd- i>i^pdtictis^n^;>i
-
year,
should
enjoy- a
increase
the
aircraft
the Air Force
Based
billion
ahead,
electronics industry should benefit
pre¬
a
WlDriAO '
Instrument,
Ketay.
McGraw
Looks
Only
>
tax credit program, and is confident it will
sevenfold return in government revenue and provide
a
the stimulant for
Dynamics Corp. of America, ElecfvAMlnO PAVA
AT
A
PIAAAV'Q 1
expected to exceed $4 billion, tronics Corp. of America; General
shipments
tronic
the
make
Electrodynamics, not to mention
revises its tax system to encourage
ingenuity, enterprise and
initiative,
new;
Specifies
energy.
other the dramatic drop 111 prices or
elec- smaller companies shares, such as
communications gear and
equipment. Total military
country's
industries,
curb
than
rather
-
.
.
be solely
to
not
afford it—if government
-
-
..
as
the.
stock,
prices that took place in Beck-man ■
Instruments
and
Consolidated
Raytheon and I. T. & T.
Electronics is almost universally
of
can only pursue costly research—if it
confined to the big companies that can
,
is
de¬
aware
a
commingled goals and
:
severe
in profits and
with Russia and maintain
dynamic and growing economy. According to Mr. Hoffman,
•the electronic industry holds major responsibility in these
industry went through a
adjustment
period » and
suffered
for government to help industry
we are to win our
come
scientific battle
and
military
■
stocks
most
year's electronic industry's Medal of Honor
expand commercial research substantially if
ing the past year when the elec¬
tronics
trial giants, such as G. E.„ G. M., and W. E., hut may include
established, reasonably broad-based companies of still consid¬
viewed
many
painfully brought home dur¬
painful
'
as
the
problems
involved
in
making
specific selections. These points
itself a highly speculative industry which holds many unusual
pitfalls for the investor lacking "good business sense." Points
out difficulty in defining and selecting individual big and small
companies likely to benefit from prospective upsurge in elec-
erable size such
of
some
are
;
the
and
cases,
plex technical aspects of the busi¬
mean
Angeles, Calif.,
„
Dr. LaTourette looks into the present and future factors affect¬
tronics, and notes "larger companies" need not
Thursday, June 19, 195^
.
.
.
respond
which the
ourselves
Russian dictators have not
reeog-.
11 i zed for'the Russian:
people;- ^ V-
/• Thus, we find ourselves-with
twov challenges instead of one-7
and
w<frk -Mlwideb¬
Iy >diversified v;
; f i e ld S- Our Products and :
-
they go hand, in hand;. They
are so
interwoven: that
-and-
must
we-
cannot
not—try to consider
To put alt of our ef¬
them, apart;
and development work 4s sched- determined primarily by the ebb
Leslie Hoffman
fort into one at the expense of the
uled .to rise importantly in the and' flow of demand" in other; services have ^
coming fiscal year and this should fields. There are several well es- become essential to the -national other would be
catastrophe; ^^ rresult in sizable production con- t'ablished, reasonably broad-based security and haye provided a more
' - *
^
A V•;6y 1975". Production of transistors tracts in the following year.
companies
of
still
considerable '■'■Satisfying and I comfortable, life to
? ,vcpicis a wo yoats ,
alone, which more' than doubled
While "long-term prospects- for- size which do fill the
bill, ;'how-vbullions . of': Americans^ iny their -- What are these goals?-;:y*
to 29 million units last year, is the electronics industry in. gen-;
ever; two that stand out are Ray-" homes, their offices,l and'iii-itheir
The First Is Economic. It is the
for
electronics,
$1.2 billion
last year, is projected to increase
IVz times by 1965 and four times
which
amounted
to
expected to reach
an
of 200 million units
.
eral
annual rate
of
important military segment
the business,
which accounts
-------
*
-
bright, it is extremely theon
Manufacturing
and^-ThteV-^^bi811^ ihours.'^-:;^».\-;,;:;.v:
P'ffv target we must reach if we are to
Telegraph;\ I Many of;Us Can Remember keep the United States a healthy,
national
*°
thesis to profitable investment- use. h,crhiv
Electronics has
nrnwH
itspif
The
—
appear
difficult to apply this conclusion
by I960..
Raytheon,
whose
volume
is
currently running dt. du annual
at an dimuai
v
^
n
-
Telephone
&
when: the electronics: industry ,had virile entity, strong enough to give
a market volume of half a billion the free world the leadership it
L
^
.
have.
To accomplish this, we
increase
t
our; gross
national
ct from $430 billion of today,
„
Electronics
overlaps into - many years. Several unprofitable civilian' a few -Jyearg' - ago—and ' thus?it has to $600. billion in the next decade.
ar®?s> and
\s v<rry dllflcult to lines have been eliminated and an become the fifth industry ii\;man- . -Our Second >Basic ;: Goal is to
new approuetine an electronics company as interest in a computer, venture, ufacting volume in- the United create and maintain a superior
priation
requests
for
electronic
SJJ v.- lnternatlonal Business which promised to be a large States. It is significant, that this, military < establishment that will
procurement totaling $3.7 billion, iV1acmnes, and others m the office financial
drain
for
some
years
growth was sparked by new ideas insure peace in today's uneasy
including $1% billion for aircraft equipment Held, have big stakes ahead, has
been
sold.
Impor- ■'and-new-products—the end resultworld, with the ultimate objective
electronics, $1.1 billion for mis;
eieclronics as do some or the -tant additions- to top - management''of;research. Seventy-five percent of a permanent ]peace.
mnmi^nnln«Awn
corner
and is
moving sharply
ward. The Administration's
for fiscal
1959
up-
budget
shows
„
aircraft manufacturers.
*An
the
New
address by Dr. LaTourette before
Association
of
Customers
Brokers,
York
City,
June
5,
Telephone
Electric
1958.
through
and
Bell,
its
A
American
Western
_.i
1
strengthened
__x_
.
Ji
the
.
company
stantially and have instilled
Laboratories
Continued
on
'"viaI-
^
-1
*n projects which
a new
page
the electronics
is
not
offer to sell or a solicitation of an offer
offering is made only by the Prospectus.
an
The
to
the
of
buy these securities.
nation
our
that
industry might well
become
announcement
born, with-
were.
in?hf Long10/eafsuggested
last Ago I
* Not
63
,
This
•
_
iA/rlrttr'n
.
sub--?*' today's employment is involved
economic
barometer
because
of
its
breadth, depth, and scope. VCertainly there is no single industry
.
J
1.
i.1.
_f»
-Both
,
;
obtainable goals
these
of
need to be reached without
inflat-
l»%'°urmay notice furtlher put the
dollal' fill that I ;.^
You
economic, nonmilitary goal first,
I did
intentionally because we
so
cannot
the growing
military establish-
support
strength of
our
ment without a sound, vigorous,
aild expanding economy,
The average factory worker in,
the United States, in April of 1958,
scientific battle with Russia and received $2.10 per hour—8 times
the prime stimulant for a
dynamic that of Japan's average of 26 cents
in
America
today which holds, at
and the same time, the
major
responsibility in our military and
one
$3,000,000
Fall River Electric
First
Light Company
Mortgage and Collateral Trust Bonds,
.
Dated
and
growing economy.
hour,
per
.
Yesterday we were responsible!
only for originating and transmit•
ting the voice of broadcast commuriications. Today we have not" resPectlvely.
°my the responsibility of giving
.
April 1, 1958
V
Due
-j
April 1, 1988
military
our.
also
sight
voice,
endow
beyond -the
them
but
horizon
"«»<
We
must
build
for
these
systems brains quicker and
than
than
anv
any
muscles
possessed
whose
by
surer
and
man,
components
must
;
.
.
inroads into
our
once
made
have
and Japan
with
guide them unerringly into outer
space.
Price 102.108% and accrued interest
systems
must
we
-
Foreign Inroads
.
4/s% Series due 1988
approximately J
and
times that jof, France,
fa"y- a"d
ls
e,®n
cents, and 801
strong eco¬
nomic
Sfa^-^y^ForTe V&
nomic areas- Why? r
wny. For the past
areas;
.
10 years--these
,._„j
^
w0«lng nations have cievoitu
most of their best manpower, w
working
ShtL^and efforts to creating new
Je Van
f
™,la
machines
products and improved mac:hine
and techniques for civilian uses.
Dut important as this is, I would
They have been relatively free
lihfiitt tw I believe t0 aas-great from .the heavy burden of armaresporisibility that
is
ments. • Their top
scientists and
react in microseconds.
Rnf
imnnvto
f
•
•
t
r,
■'
The
;
Prospectus may be obtained in any State in which this announcement is
circulated
*
off the undersigned and other dealers as may lawfully offer these securities in
from only such
such State.
thn
the
^ F^ne
defense
hf,Ve assumed
the
free
world
of.
engineers
.
HALSEY, STUART
& CO.
INC.
Overnight
R.
W.
PRESSPRICH & CO.
have
changed from Sputniks, Explorers,
Vanguards to talk of recession
negotiations
back to Sputniks.
—
and
.
face the
We
now
This focuses
Unfortu-
at
markets
our
our.
unless
we can
prospect of losing
home and abroaa
equalize these
'
*.
June 19,1958.
headlines
nroiects.
nately, we cannot discount either
their productivity or the quality
of their products.
a
and
and labor
DICK & MERLE-SMITH
the
concentrated oil
have
nonmilitarv
through military strength.
"An
11
address
occasion
tronic
Medal
of
his
k
by
m
Mr.
Convention
Honor
of
ff
,
Hoffman
on
being presented the
Industries
of
«
the
Aessociation's
at
E.
the
I.
43th
A.
the
Elec1958
National
;
differences
j
*.•'*.
through
greater pi '
ductivity. We should n
that
Our
^
folget
u
w
greater
..
..
:*.r
prOdUCtlVlt.
^
nflCie
COTitlUUCCl OTl puy
64
Number 5752
187
Volume
.
.
.
The Commercial and Financial Chronicle
(2727)
personnel
possible—especially
as
banking associations. At the national level, the work of your own
American Institute
of
Banking
the younger people.
Years ago,
the main avenue of
education open to the banker was
the "school of experience/' Those
were
the days of self-made men
who came up from the ranks by a
By JOSEPH €. WELMAN*
difficult
,tt
t
President, Bank of Kennett, Kennett, Mo.
v
,
,
.
our
role fin the
economy,
areas;
There prevails in .many parts of
;
than usual
y\
jness, restraint,/ •»
and patience. V, Recently we : ii
have seen the .Vice -r Presi-;
1
•
:
-•
the
cies and ,tools,
|
an
am
:
in
factor
a
banker's
rectors.
V.
:v.
.
banking
is
a
complex
The bank-'
pan-
ing his first job in
a
sound budget' ap-/
broach,.;'and wise; and moderate
assistance rtfrom/ the govemmeptj
'
|
won't ,correct.; At the same time, C
1 am ^greatly Concerned by the
|
tendency of many to seek
.
formula
convulsions-of
as
cure
a
for
magic
a
of our1
all
.
»**»..«*./troubles..
most serious ■■!
nature.
•'
•
bank to the
,'
.
^
s
than most of the countries
severe
of
the
world-^-we
find
business
.
.
V On the Mother hand, the recent
and industry with more than the
Unlike
ods
of the other peri-
some
economic difficulty in our
of
Usual amount of-management dif-
country,
ferences
battles, labor
is
there
today
out-
an
and
coping
with
the
important
of the public, business, in-
dence
core
Institute.
With
a
matters of recession, taxation, de-
dustry, labor, and the government,
fense, foreign aid and trade, and
recog-,
But that
recognition and appreciation will
and the unques-
tioned leader in these activities is
your own
immediately fully
nize their value to you.
come.
,
mem-
struetion to more than a million
and a half bank men and women,
you have justly earned the distinction of being the largest and
much
But
Stand
Pat
remains
be
to
We cannot afford to become
done.
tired
complacent. If organized bank¬
ing is to meet the present and
future needs of its membership
for educational-services, it must
strive constantly to strengthen ex¬
isting programs and ;to move for-,
or
into
ward
new
areas
where
op¬
tional and state levels to potential
most ..effective'
adult
educationol
.organization" in the world.
cardinal-necessity, along continue to make a wonderful ways of improving the quality ,-aX
with practical experience; and to- contribution to American bank- bur
programs,
meeting unfilled
day the two are inseparable. We ing, and the significance of your needs, and achieving a more log¬
really have a three-prong prob- work is appreciated, will continue ical and better rounded pattern
lem, and we must and we are to be appreciated, and will be- of educational activities on a na¬
applying a three-prong approach come more obvious to everyone tional basis./.
tpvit.'- All of ,us are striving to in the years ahead. On behalf of / This will require much visioa
integrate our efforts in the fields the American Bankers Associa- and much hard work. But it is a
of education, proper training, .and tion, I salute and commend you.
"must" if banking is to keep paca
practical experience. The import .« The, facilities of your Institute with the expansion of our econ¬
tance of these programs to our are
available < only to member omy over the years ahead and to
profession—rand .to the public for banks of the ABA. I have, often train the broad-gauged banking
which bankers are trustees—can- said and I should like to say again leaders who will be needed in
not
be
to you:
overestimated.
employee
the
has
''The privilege of utilizing
the educational programs of the
American Institute of Banking is,
tn most cases, worth .more than
the dues paid by member banks
to the American Bankers Association.
with greater
All of the other educational efthoroughness, or in which a high- forts of ABA and others in the
er degree of success has been ateducational field are intended to,
tained.
.
and -will, supplement —not supbeen
'■«; approached
bright . spot in the
Over the years,
with considerable internal and ex- economy; and/that is a strong, •
Over tne years, there has been
tnerenasneen
ternal difficulties, and our own virile, alert, and aggressive bank- a steady expansion in the educational activities of both the nagovernment engaged in debating ing system, enjoying the coni'iproxy
will not
Don't
become a
standingly
and
—
You
educating
ing-
•
Sometimes there may seem to be—
Banker education -programs have- have made, are making, and will
friendly nations
even
—
strength of
educational system.
portunities/exist to do a better
job.
' Continuing attention will
have to be given at both the na¬
position taken by the leaders in
For
organized
many
years,
•—are
having .great difficulty in both part res in opposition to
banking has been pre-eminent in
agreeing on what -should be done measures which would have unthe field of professional adult edand what should not be done.
~ doubtecUy added greatly to the
ucation. In fact, there is no field
'In our,own country—with our already certain large deficits is
of business in which the problem
problems indisputably far
less indeed heartening an dencourag- of
Nations
;
grass-roots
/V
.•/
no
an
^suggested
and
banking
inevitably
//'•
>
The hard
our
|| /.Tcasonable restraint' and patience;1
d;
jally,
France,
is suffering
a
assume
•
ivd
T; o
u
I
less than the physician or. bership of over 147,000, an eiirollthe
lawyer,
must
be
sturdily ment of almost 84,000, and with a
equipped for a work which has record of having furnished in¬
|j; together Avith oub monetary polir
peighbors.
O
why
the
back¬
although, of course, there shouldn't
be
a
lag in the full recogni-,
tie, and Baton Rouge, and the new tion and
appreciation of the AIB
school in Texas, there are today work
you have done and are do¬
26 general banking schools, study ing.
Perhaps even those of your
conferences, clinics, and seminars,-; who have completed the coursea
Complicated Business
Today,
er,
||study, -^cpmlno^l^>aol^eyfchard^<-W^rk;
countryJ
wife,f:r
ir iend
is
and technical business.
H with4- the•* country that - intelligeni j
disgra eefully/;
treated by our/>:'
I
That
sole
A
,
I1 XI believe there -is nothing wrong
his
and
-
every
.
'
itself.
meet
regional schools at Madison, Scat-
^aeea/ pr
a" : heads-in-the?eloudsi senior officer-—must learn more
i attitude of refusing to face reality; and
mpre about more and more.)
dent of o uY/
pw n
the sand,-a
....>/-; following
v
It
an
ostrich-* come to be:
recognized as profesheads in sipnal ju: nature. - All of us in
sheep-like attitude of banking-^-from the youngster tak-
cannot
dissatisfaction and ir- like attitude with
ritation—a marked lack of calm-
that
to
The
management fully
special needs of their members. In
addition to the three established
them for
respect
to
em¬
case.
our
facilities
Work of the ABA
Facing.Reality t: v -
•
We
most
you
phatically that is not the
bone
training. V
and reviews work of the ABA. T".
the world an atmosphere of more
assure
cational
work.
urging that we seize the opportunity in times
of more than
normal problems to utilize it to including five programs which are
the maximum. But experience can designed
specifically for senior
no
longer stand, as it once did, officers and one for bank di-
partisan efforts to minimize our Federal deficit; and contrasts
our independent banking system with the European contralized
one.
Calls on bankers to strive constantly to improve their
:f
as-
can
imagination in establishing edu-
ness
applauds bi¬
economy;
fails
ABA and senior
The state
I
understand that AIB is the
as
in
or
AIB.
American banking.
what they
is still true, of
important part of
the educational process is in busi-
intelligence, hard work, restraint and patience, and proper
monetary-fiscal policies, rather than a magic formula, correct¬
wrong
forgets
fully appreciate the importance of
ing at Rutgers have exerted a profound influence on the progress of
sociations have displayed zeal and
course,
sees
ing anything that is
aids,
and The Graduate School of Bank-.,
All
of hard
road
accomplished.
ioning of the impact of the recession and aiding our recovery.
Mr. Welman praises the fine job bankers are said to be doing
working with borrowers in depressed and distressed
cational
and
.•/" i
Banking's spokesman describes the banking system as the one
"outstandingly bright spot" in this period of economic difficulty
which, he believes, can and will contribute much to the cush¬
in
banks and the ABA, in the
your
search for and trial of other edu¬
too often their educational opportunities were limited. We admire
President, American Bankers Association
15
tional
tions
and
as
Ptant
i
should not be and will not be any
conflict,
as
those
of
other
In
phases of the American
some
economy, science and technology
have enabled us to hold our po¬
sition—in spite of low labor costs
of
other
the
at
us
in
and
nations—and
same
many
with
Wasteful
permitted
time to work less
to
cases
money
become
and
man¬
power.
as
others pull abreast in
struggle for markets—and in
But
the
,At times it may seem to you
the senior management in
state bankers associa-
well
the Institute;> and there
constantly growing numbers to
bear the great responsibilities of
our industry.
;
Continued
that
on
page
64
This can and will contribute much
to the cushioning of the impact
many others.
/To
here and
come
large and fine
observe
this
group of more than
1,400 banking people — the very
backbone of our banking person-
recession and aiding our
, We
must see that our
of the
recovery.
translated into a willingness,
which I ,am convinced does exist,
engaged in a week-long inspiring to act with foresight and courage
and instructive program with a and to assist in every way possi-?
central theme, "A Forward Look," ble.
" .' v
nel
calmly but enthusiastically
—
Now Available to Institutional Investors—
appreciation of this condition is
Securities of
edition
-
.
is like
a
a
breath of fresh air.
real tribute to American bank-
ing and to
mend
is
It is
and
the
country.
our
I
com-
congratulate you.
kind
This
that is
of
activity
to be heartening to our
country and our'friends abroad
and discouraging to our enemies,
And we may all rest assured that
certain
it doesn't go unobserved.
For
■
some
time
We; experienced
employment and
in
:
country,
our
reasonably full
growing econ-
.
to say that I have
impressed by and
extremely proud of the fine job
bankers
are
doing in working
with borrowers in depressed and
distressed areas. This is indeed as
it should be, and it is good public
relations-in the truest sense. The
strikingly low rate of foreclosures
and repossessions is a tribute to
I should like
greatly
been
the American public and the
American bankers,
pmy, stimulated and bolstered by
considered that a
large part of today's bank lending
government subsidies and defense
force
a
When
is
it
had limited
has
or
no
ex-
adjustpansion and
ments
to significantly
changed
fiess,. industry, municipalities, and conditions, the situation should be
individuals. No one seriously be- used as a training ground. An
spending and
unprecedented exspending by busi-
perience in working out
lieved that could continue at such
alert
a pace
as
management should
personnel
possible to the knowledge de-
as
many
rived from
finance,
and
able
business,
government warned
that
we
the.
same
effects.
couldn't do
.time
And
so
leaders
in
expose
much of its lending
indefinitely. The monetary
authorities, most economists, and
wise
problem loans as they
develop
-everything at
there.
This
Government
This
comprehensive
reference volume is
for
1-
use
designed
by investment officers,
institutional investors and others
•
interested in United States
Government
in this
securities. Included
140-page handbook are
discussions of:
Factors Influencing
Market 1956-1958
Credit and Debt Management
the Government Securities
Public Debt of the United States
Securities of Government
The
Ownership of the Public Debt
Budget
*
Affecting Commercial Banks
•
Corporations and Credit
Agencies and The International
struction and Development
•
•
Factors
•
Taxation of Income from Securities
Bank for Recon¬
miss proposition,
fully worked-out
harmful
without
it happened.
The situation in which
we
cur-
here
and
industry and
us repeatedly
rently find ourselves is definitely
hit-orbut under caretraining sessions
geared, of course, to the particular
organization of the bank. Lending
personnel thus oriented can be
should
not be done as a
Jot a depression of the sort we expected to become broaderJad in the 1930's, but of course visioned representatives of the
is an adjustment and a reces- bank,
and can thus become a
sionl
the United States
•
'
i
-
•
:
address by Mr- Welman before the
stronger hase on which to
for the future/We should
most- of
spread
June 6, 1958.
this
among
as
this
build
^ake
opportunity
to
valuable experience
of our leading
maily
The
FIRST BOSTON
CORPORATION
•
Prices and Yields
15 BROAD
STREET
of Treasury Securities
•
,
NEW YORK 5
Boston
Pittsburgh
Philadelphia
San Francisco
Chicago
Cleveland
16
The Commercial and Financial Chronicle
(2728)
By CLIFFORD S. STRIKE *
record
high expected for the
year 1958, against $3.12
full
STREETE
earned last
;
year.
President, F. H. MeGraw & Co., Hartford, Cohm.
Prominent construction company
.
,
.
t sion
.-(•♦I
Advancihg 1$ points on the "soft goods" sector " of the
Average in four economy, as well as a secu¬
successive % r a d i n g sessions larly upward sales trend. The
during the past week, the latter has been helped by an
market encountered consider¬ expanding
market of teen¬
able irregularity even before agers, and also of greatly in¬
its 2-point decline of Wednes¬ tensified
promotion efforts.
day. On Monday 363 issues Additionally, continued pro¬
declined against 567j rises, gress is being made in the de¬
while Tuesday's advance in¬ velopment of foreign markets,
Dow-Jones
cluded
even
gence with 495 advances and
432 declines.
Undoubtedly the chief
port of
the Street's
"buoyant
spirit"
is,
>
*'
■
■
'
"
,
exemplifies
■
sup¬
current
the
most
per
arguments pervading
commentary from the services
'■
51
1956.
in
this
of
Strike contends his industry provides
Mr.
underlying support to the yconomy than any other par¬
ticular industry; warns that the presently propitious time to
build may not
last very long; and expresses gratification about
performance, the greater availability of craftsmen and
the newer materials and production devices. Tells
architects,
labor's
continued
The
plant engineers; and managers, that
down they can use ingenuity to cut costs
may seem impossible to do, and that now they must do
since we "are charged with seeing that it is done."
engineers,
com¬
when the
pany's
which
so
I have seen
inflation.
in
are
inflation—run-away vation of employment costs re¬
sulting from the rise to tremen¬
when a carton of dous political and economic power
I have lived and worked
Germany
American
the
contractors,
chips
of
bring
cigarettes would
equivalent
of 150 Ameri¬
dollars
can
brokerage firms, the
next few months.
!■ :
term
growth is confidently
plethora of investible funds
:j:
*
s-:
expected. The issue's, opti¬
against the background of
mists point to its investments
falling money rates. Also, of
To
those
market partici¬
in new fields, its broad re¬
course, the output of business
pants favoring the cyclically
search program, and its hold¬
news has not been devoid of
depressed sector, as affording
favorable items. Retail sales a substantial "come-b a clc ings in a number of associated
for May were
quite surpris¬ ride," Crucible Steel is at¬ companies, including Chem-.
ing; good, ahead of April and tracting attention. With a net strand, the second largest
manufacturer
of
well over March. Likewise, a income
synthetics,
drop of 49 % per quar¬
month-to-month rise in hous¬ ter from 1956 to
acrilon, and nylon (jointly
$2.18 in 1957,
ing starts, to exceed the mil¬ current earnings at but five owned with American
lion mark, was
registered in cents, the shares are down a Viscose).
*
❖
*
May. Also encouraging were full 53% from their high of
in
German marks
er
and
or
when
In
their
for
search
anti-
more
people
are
coming to understand and accept
this as a fact, regardless of wheth¬
'40
their attitudes be sympathetic
critical. But what people do not
pounds of lard
so
would
basic
fully undertsand is that when
employment costs advance,
industry by industry, to a degree
have
s
,
industry-wide labor unions.
"More' and
f.
■
.
and
reces-
a
more
highs—32 now versus
maintenance
is not
the recession.
to
"growth" issue which is at¬
tracting interest at a level
representing considerable de¬
flation from its former bull
market
Jiead declares today's
deterrent to plant expansion but, instead,
actually
is the right time to build, and is only a deterrent, if to
anything,
a
long-term growth is
evidenced by
sales volume
a field
pioneered with extra¬ three and one-half times, and
ordinary vigor by Coca Cola per share earnings almost
under Mr. James Farley, over doubled over the
past decade.
the years. This issue, along While this
expansion has
with Pepsi-Cola, Canada Dry,
tapered off somewhat since
and Dr. Pepper, is seen as
1955, and per share earnings
particularly likely to gain re¬ during this year's quarter
freshment from the peak sales have
sharply fallen to 27
records anticipated over the
cents, resumption of the long-
diver¬
greater
*
''
•
Monsanto
Thursday, June 19, 1953
Now Is the Time to Build
first quarter, up slightly from
82 cents last year; and with a
THE MARKET... AND YOU
By WALLACE
the
for
reported
share
per
...
procured
leica
a
and lenses
greaterj than the rise in overall
national productivity, -they can¬
worth
not
camera
$1,000
up
Madison
on
Avenue
Japan
of any' one business
from a small part to a
very large part of its total costs.
But every business fnust purchase
goods and services from others.
These purchases from others re¬
flect
the
increased employment
in
—
one
dollars bills
would just
about
the
buy
Little
to
men
in
Clifford
up
a
vt.
—
and
in
costs of the
China
party of five other
real Chinese
a
Shanghai.
Strike
S.
.
Ginza
when I took
costs
may range
when
1,000 U. S.
help but force all other costs
with them. The direct employ¬
ment
restaurant
Waiting for
suppliers, whose
own
purchases reflect the increase em¬
ployment costs of their suppliers
in
turn, and so on and so on."
Mr. Tyson, when he was
starved us all and the Chinese referring to goods and services
Captain's English was not much purchased from others, was look¬
better (imagine trying to use
sign ing straight at us. Others, too, to
language to order a Peking duck be sure—but certainly at us.
dinner). So in order to get on
medal, and somewhat temper¬ chinery and equipment indus¬ years. Furthermore, the pres¬ with the
Cost Can Be and Must Be Cut
ordering I took a package
ing bullish enthusiasm were tries, then eventual potential ent high price-earnings ratios of Chinese dollars from my
We—architects, engineers, con¬
the prospects for
unusually recovery to the $5-$ 6 level is are regarded as fully justified pocket, indicating that with this tractors, plant engineers, and
amount of money I was
ordering plant managers—for the purpose
extended summertime "vaca¬
seen, which would render the by the additional growth dinner for six. The
package con¬ of this discussion may be consid¬
tions" and other shut-down shares'
characteristics of these issues,
current
19
level
tained one million Chinese dollars. ered one industry. We are all con¬
with the popularity prize
excuses, worry over the pos¬
Those are among the things that cerned with the capital costs and
throughly reasonable.
sibility- that the business
seemingly still going to I know, having lived them, and the maintenance costs in plant
Prosperous Internationalist
Merck, with its new miracle from them I know that we want building and operation. We can¬
perk-up may turn out to have
all
110
by ourselves stop_ this
such inflation in the United not
news
of
a
rise
in
industrial
last
While this year's
production and a payroll in¬ earnings will presumably cyclical industries, investors
are still
crease for the first time since
favoring the ethical
continue negligible, with the
the Recession's start.
company
catering to auto drugs, which have done so
well market-wise oyer recent
On the other side of the
makers as well as the ma¬
year.
order
in
Chinese
me
would
to
Now
have
.
been merely a
temporary
Despite the clouds persist¬ drug Diuril.
rally, and in the market itself, ently overhanging the inter¬
[The views expressed in this
the record high ratio of
prices national picture, which have article do not necessarily at any
time coincide with those of the
to even boom-time
earnings. often in the past given Inter¬
"ChronicleThey are presented
With the advent of summer national
Telephone and Tele¬ as those of the author only.]
the soft drink area of the
graph stockholders some jit¬
market is
reflecting the ters, this issue is now picking
Street's proclivity to empha¬
up new friends. Its impres¬
size
"seasonal"
factors.
And
sive market movement to
new
broader considerations too,
these issues are seen as bene¬
on
highs during the week pre¬
sumably stems from the satisfiting from the comparative factory earnings situation;
strength of the consumer with actual profits of 84 cents
r
Hugh W. Long & Co.
Appoints Heffernan
and
General
entire
business
vestment
ern
ington
Southwest Gas Corporation
articles
field,
Mr.
The
AMERICAN
STOCK
STOCK
EXCHANGE
EXCHANGE
san francisco
300
Montgomery Street
•
TRADING
•
MIDWEST
L.
(ASSOCIATE)
647 South
Spring Street
has
WIRES
TO
NEW
YORK
AND
DIVISION
J
debt
—
in
ultimate
of
users
the
very
more
essential
very
to lie
thht "figures may be made
also true of statistics
is
being largely made up
that
even
near
its high
it
now
#
i^somewheie
peak.
On the othe
would wager that there
are many architects, engmeeis,
contractors
who would J-Qmp
I
hand,
this year
start
of the s
some
last.year-at
jobs that they started
a material reduction
in
quoted just a year ago
speaking from what I kno
At
this
point I would like to
subjects to borrow some remarks by Mr. Rob¬
and
Financial ert C. Tyson, Chairman of the Fi¬
now
Committee
nance
it,
affiliated
Hammill
&
with
Co.,
3363
of
U.
S.
Steel,
before
the Executives Club
of the Greater Boston Chamber of
Commerce last April. Mr.
Tyson,
while defining the type of infla¬
tion
known
to
most
everyone,,
which he labeled "Wartime Infla¬
tion," went
Lido.
Joins Paine, Webber
OFFICES
a
are
in
expensive due to our initial start,
the whole process
begins all over
contributed
(Special to The Financial Chronicle)
PRIVATE
for
increases his prices and,
we, the contractors, are often
.
.
You
a
new
cannot
textbooks.
a
on as
follows:
cost-plus
in¬
thing in America.
read
You
about
can
it
in
the
think of it
inflation.
Its
as
funda¬
PASADENA, Calif. —David S. mental root is the cntinuing ele¬
Smith
has
joined
the
staff
of
*From a talk by Mr. Strike before 2nd
Paine, Webber, Jackson & Curtis,
50 North Garfield Avenue.
Annual
quet,
Factory Magazine
New York City.
company
own
That
isn't
dictment
last
much
Awards
Ban¬
the 1
would.
meant
that'
we
year.
ct,M
•
_
toJoe
charg
an 1
sugges
It does
,
is ingenuity
amongst us which is brougn
0
bear
when
we
most need
e
work. It is not unlike anothei o
however,
that there
adage—"Necessity is
Continuous peacetime
flation is
Teletype LA 533
Statistics
tool
again.
Commercial
Shearson,
make
higher, and he
financial
Spence is
Via
los angeles
Teletype SF 885
the
NEWPORT BEACH, Cal.—Jack
EXCHANGE
must
are
—
since
areas.
on
he
past products which have become
for the
and
which
in¬
(Special to The Financial Chronicle)
FACILITIES
STOCK
the
With Shearson, Hammill
INCORPORATED
DISTRIBUTORS
that this must be added to our
cost and that cost passed on to our
customer.
Certainly this is true
made
First California Company
•
merely say to ourselves after ne¬
gotiations have been concluded—
gauging almost any activ¬
ity, certainly they are used a lot
in our industry. But the old adage
his
spent
in
career
Heffernan
Chronicle.
COAST
several years.
business bargain for
labor—and without passing on the
merits of our bargaining groups—
turn
California, Oregon and Wash¬
Southern Nevada Power Co.
PACIFIC
construction
Manager service
six years has been active in north¬
Nevada Natural Gas Pipe Line Co.
UNDERWRITERS
Sales
of the Long company.
Mi'.
Heffernan
has
California-Pacific Utilities Company
MEMBERS:
Calif.—Ed¬
FRANCISCO,
has been elected Vice-Presi¬
dent
UTILITIES
even
they
of figures
ward M. Heffernan has been ap¬ on cost
I am sure, again, tnat
type of contracts and, in anyway.
pointed a regional representative many respects, is also true on unit there are some experts, who can
for Hugh W. Long & Co., Inc. He price or
prove by statistics that the capita
lump sum contracts. And
will make his headquarters at 155 with that start the
vicious cycle cost of construction has not been
Sansome Street.
continues—the capital cost to our materially reduced at any one
He succeeds Frederic C. Coltrin, client
is
higher,
the
charges time in the past several yeais,c
SAN
who
GROWING
Yet we, individually and spiral toward uncontrolled infla¬
collectively, condone by our tion. We can, however, by the use
very actions some of the things of our ingenuity, make a substan¬
tial contribution toward checking
which bring about this
type of
inflation. For instance, we in the the increasing rate o-f the past
States.
of
invention."
The
that when the chips are
costs
can
down
absolutely must be
be
done
Anrl
it
ic
and
» 1
all 1 e
paie
regardless of
statistical information to
tvQvxr
mother
the
fact remains
the con
nPOlole like US
W
®
18/
Volume
Number o752
.
.
The Commercial and Financial Chronicle
.
'
(2729)
the
Present
Day Problems
And Long-Range Ontlook
in
ital goods.
A boom to
( j;
;
poses
and suggests
p'/ji..of the 1960
own
is based
s
to
work is to
as
well
as
findings as to the
economic picture during
President
of
was i
visit
my
the
year
They
National
my
every
uneasiness.
segment of
country
I
in almost
field of
every
fact
that
regard
our
every
to
is
eral
my
t
and
>
of
hope and cour¬
M.
Philip
permeates
this mighty land of
Talbott
age
I could
in
fiiyd
dread
actual
ours.
no one
;
who stands
see
upturn
ap.
tem
That does not
mean we are
true
even
of
-
case
in
the
sale
of
little
in
or no
measures
In
but
local impact whatever.
philosophy is not
much in evidence. It is generally
recognized that we cannot talk
our
way .into
a
resurgence
of
booming prosperity. But it is also
recognized that most of our Jere¬
of disaster and
our
before it
are
who
ones
combinations
health
of
the
policy
taken today.
created
are
Obviously,
in
long
a
and
the
and
are
real waste
a
of
the burdens
ployment
something.
is
not
to
difficult
ing
for
a
further
into
read
lik¬
a
centralization
*From
the
a
talk by Mr. Talbott before
Washington Real Estate Board, Inc.,
Bedford Springs, Pa., May 30,
1958.
"el¬
high
of
tasks
Public Policy
than
face
we
against,
powers
foolish
the
think there is
even
not
to
pretend
or
later
we
an
consumer
the
by
era! tax
revision.
swept £rom
Unless
recession
demands
for
without
corporate
Should
and
to
the
the
regard
1960's
are
If
are
tax
tax
rate
to
50%, with
to
40%./
relief
is
going
to pack
meaning and provide actual
help to all our people, it will be
real
criminatory and patchwork relief
—which appeals to many clamor¬
ing voices today—only
serves, in
the end, to send tax rates
up and
makes them
more
Then
morrow.
quired.
This
^unbearable to¬
mohe relief is
has
fortunate pattern of
the
been
our
•
•
wise
are
Joins
that
issues
must
the
By
be
to
wages
productivity,
us
a
all booms—and if
about
Kuhn,
present-day
Lqeb
Street,
&
Co.,
1960's,. the
a
their
associated
with
municipal
department.
formerly
with
the
Halsey,
There
will
There would be
more
of
them
.
John/ B.
elected
of
Hansen
Assistant
Wm.
20 Pine
E.
and
Pollock
women.
Greyhound issues, underwritten in March, 1958 by
the ultimate point of 40%
$3,500,000 V/2% Convert-"
Sinking Fund Debentures, and 180,000 Common Shares.
White Weld's
on a
national scale
Canadian investment dealers,
Any U.S. Company with broad interests in Canada may find it
advantageous to investigate the possibilities of Canadian investor
participation.
public utility underwriting, distribution
intricate
trading facilities are among the most complete
in the financial
was achieved through a group of
resulting in over 2,000 individual
institutional holders of the Company's securities.
Distribution
parent
community.
Our successful experience
details
in completing the
of such matters—to the satisfaction of
Company and Canadian
both
subsidiary—is at your disposal.
Member
We welcome inquiries
from public utility companies.
The Investment Dealers
Association
of Canada
Gairdner &
White, Weld & Co.
20 BROAD STREET
NEW YORK 5, N. Y.
Gompanij Limited
320 Bay
Street, Toronto
Philadelphia
Boston
Los Angeles
Alt Major Canadian
Montreal
Kingston
Quebec
Calgary
Vancouver
Stock Exchanges
Chicago
Hamilton
Kitchener
London
Edmonton
Winnipeg
San Francisco
Gairdner & Company
<has
&
been
&
Co.,
Inc.,
Street, New York City.
Gairdner & Company Limited, provide
Canadian ownership through issues of
and
Stuart
Vice-President
The attractive
and
its
was
.Pollock Go.
clamor for goods of all kinds:
Realizing the broad public relations advantages accruing from
Canadian investor participation, Greyhound Lines of Canada Ltd.
now
enjoys the active interest of many thousands of Canadian
Securities
in
He
Hansen Officer of
babies
war
Greyhound—the best known name in inter-city bus transporta¬
operated in Canada since 1931.
Utility
firm
Co. Inc.
establishing
own.
present production plant will
not be enough, and blueprints for
expansion * are
already on the
drafting boards.
men
Public
Wall
30
York ,City, announced
that William F. Dore has become
Our
fiscal
ible
pat¬
Of Kuhn, Loeb & Go.
are
tion—has
distribution of our stock of
physical capital uneven and sets
new
Municipal Dept.
as
Canadian Investment Circles
age
a
tern for the loom of the future.
GREYHOUND-A New Name in
capital expansion and innova¬
tion. This "bunching" makes the
tax system
we can have that boom
without another spiral of inflation.
employ¬
still rising?
of
un¬
years.
,It is time to design
-
re¬
the
action,
stimulate
prices
we
going to give
boom to outdo
government
massive
brackets
reduction
eventual
to
increased
of
early
tax
percentage point, granting
considerably faster depreciation
schedule and reducing the 52%
over
depres¬
sion by unsound government
pol¬
icies or by yielding to labor bosses'
1940's-'will be
how
of
middle-income
one
a
spending—through Fed-!
homes
measures
easy solu¬
plants and equipment—as well
of the
it.
The Chamber suggests reducing
f
getting people back to work
is to encourage investment in new
much
for
economic
single solution. :
a
stability of employment we really
want, can legitimately expect, and
the price we are willing to pay
question
on
the
One of the solutions to the rid¬
the natural
of the econ¬
fundamental
Sooner
put
a 60%
max¬
individual taxes,
present 91%, and
would lower this later on to
40%.
of
dle of
we
are
of uboth
Getting People Back to Work,
omy.
at stake.
eco¬
would
rate
instead
of
painless as passible. In other
words, governmental action dur¬
ing recession should work with,
there
and
It
imum
found only in rate reduction. Dis¬
degree
tion—or
and
is
mis¬
inequities in how
The prob¬
temporary unem¬ lems,;: are root inherently insoludistributed.
'
^
able, but we will delude ourselves
at
It
to
bility in government.
to prevent what should be
lull
in
economic
rather
lead
understanding and fiscal responsi¬
if
The
will
eco¬
rational, -effective
policies
require
a
stabilization
Economic growth is by nature a
It
allow
of
are
Tasks
realities
Ultimately,
:
unnecessarily
jerky process. Investment in plant
and equipment tends to "bunch"
in boom periods which are fol¬
lowed by periods of integration
and the absorption of the effects
their call for drastic action
within
still
nomic future.
de¬
serious
ment while
on
do
downs
limits, and
policies, create fear
distrust, and jeopardize our
system.
deep
15%.
obsolete.
are
the Federal Govern¬
something—to do any¬
thing—wise or unwise—but just
and
ups
income
bracket rate
tq 19%
immediately —and eventually to
a
them
economy sufficient
room."
But to ignore
bow
maladjust¬
new
pression involves
take
ment to do
calling
largely
with
which
The National Chamber
suggests
ual
our confidence
cope
free
our
self-reinforcing.
adjustment,
recuperative
our
private and pub¬
lic capital grow; demands changenew products and new techniques
of production open new invest¬
ment opportunities and make ex¬
isting
facilities
and
processes
gets better.
the
can
our
reasonable
become
tive
ments
and the stock of
ravens
despair have personal axes to
grind. For Feasons of their own,
mostly political, they would like
to
see
th© recession
get much
These
we
various
can
directed
A growing economy must con¬
tinuously adjust to changing con¬
ditions and demands. Population
of
worse
and
keep
danger
grave
may
preventing adjustments but at
legitimately ^piping tp make them as prompt
changing dynamic society
some
fluctuation in output, em¬
ployment, income and prices is
part of the process of economic
growth. We delude ourselves if
we think that growth can be com¬
pletely painless and automatic, or
take place at a constant rate.
-The Pollyanna
miahs
realistic appraisal of
public policies, and an aware¬
of the future implications for
economic
communities
those
for
a
ness
hid¬
the recession has had
results
expect
ing our heads in the sand. It is
generally recognized that we are
going through a period of eco¬
nomic readjustment, and this is
.where
works;
the
of any challenge
that matter
from within—or—for
—beyond our boundary lines.
always
therapeu¬
nomic
V-. there
red
an
a
or
building
we
—
reducing the 20% lowest individ¬
robbing
their savings?
should they get out of hand. There
is no good reason
why we cannot
all
de¬
lays economic progress. Further¬
more, even irt a minor Precession
.
th
"good"
that
public policy are
only a
ink, but let me say this:
"
activity from
Rational economic policy must
cumulating beyond the range of
be based on an unemotional
normal
adjustment and adapta¬
evaluation of economic conditions;
tion, and to alleviate individual
a
sympathetic understanding of hardship where necessary. Policy
how ;a Jree market economic sys¬ measures should be directed not
gen¬
observa¬
abundance
tion
say
tem¬
by
economic fluctuations is
If recession goes
beyond the stage
of necessary and normal
correc¬
the
it
to
downturn
a
resources
Growth
not
are
cumulative
ties market floundering around in
second division.
I don't like
endeavor, and
is
persons;
board
dle-income groups to invest. That
would create
jobs, while at the
same
time, it would enable those
in the lower-income brackets to
buy more goods and services.
unemployment should we
maladjustments and
recovery to give the "ratchet"
that
tic. .There is
of unem¬
ployment as a personal tragedy.
It is not pleasant to see the securi¬
business
men
the
Unemployment
-
with hundreds
of
this
action?
some
the
across
would encourage
upper- and mid¬
new
matter of
the
over
cure
could have tax reductions—
we
right
validated
government
attempt to
while
Learning to live with inevitable
efficiently and
income
be
them and others of
we could not
higher levels of out¬
real
recessions
■
Economic
talk
to
All
authority in Federal
ignore
new
and
an
employed
longer pull.
long-range outlook is entirely too
promising to be cluttered up in
advance with the type- of action
which
could
only add grief to
.our
and
put
resources
falling,
if
wage-cost
even
therg -not also., inequities in
anti-recessionary measures which
seek to help some
temporarily un¬
before the
"shakedown,"
our
attain
ex¬
agencies.
good fortune
to
clamor for all kinds of goods
of economic
Chamber.
It
use
that
of
national
my
as
nomic
babies of 1940's establishing
new
should like to report some
I
a
now so
is
on
of inflation another
upward twist?
Are
economy can
move upward
again. Without such
periods
of
self-correcting eco¬
plant-equipment investment—
spending—through Federal tax revision.
consumer
use
balanced
economic
requires periodic read*
justment
of the solutions for getting people back
one
encourage
In
porary
create
growth
upward,
goes
passively by
an
Healthy,
Premise for boom
present production plant and necessitate
our
States
pansion.
).»•
upon war
homes and initiating
that will tax
v,
wise anti-recession steps
we pursue
sense/are
a
boiled out of the system.
Commerce of the U. S.
have the boom without inflation.
we can
their
of
in
inevitable and necessary self-cor¬
is
the
demand
recting phase of the growth proc¬
ess in which
maladjustments are
predicted for the 1960's by
S. Chamber of Commerce. Mr,^ Talbott pro-
Chairman of U.
?that
Board, Chamber
outdo all booms
Should
push, which
'
•
Recessions,
By PHILIP M. TAI/BOTT*
Chairman of the
stage for future fluctuations
replacement demand for cap¬
17
Inc., New York, N.Y.
and Financial Chronicle
The Commercial
18
"Federal
in
fh^Broperty16 Misrepresents
property,
lhis represents
orderly divestment program of T. V. A. from Federal Govern¬
to
stop threat to private utility industry and our
economic society.
ment
eral
strong attack on pending Ten ¬
Valley Authority legisla¬
tion and Federal public power
Boavd
the
to
of
Governors
of the
Inv
-
*
sound
•_/
ciation
America at its
meet¬
recent
at
White Sulphur
Springs, West
held
ing
Securities
:W*V
i t tee
o mm
headed
Thomas John-
this
Thomas M. Johnson
ofJohnson,
work
Lane, Space
Corporation, Savannah, Georgia.
In
calling for and explaining
necessity for a forceful stand on
public
Utility
Associa¬
compelling concern over the per¬
sistent trend toward socialism in
Government's
that since 1931,
a
total electric
of
t to
name-
state that: "the two bills now
are S. 1869, the
Bill.
■
Superficially,
purpose
issue
4226, the Davis
their similar
to authorize
is
TVA to
bonds to finance the
revenue
investment of $1.6 billion in power
In May, 1933 the Ten¬
facilities.
Authority
Valley
nessee
Government's
deeded
the
Shoals
project "for
was
Muscle
the
primary
facilities as judged necessary by purpose of flood control and navi¬
It was only incidental to
the three directors of the Author¬ gation.
such activities that the enabling
ity; in the Senate Bill only is the
law permitted TVA to construct
amount of bonds limited to $750
and operate
power
facilities at
million.
4
navigation and flood control dams.
;! "To a harassed Congress faced
with many essential demands for Notwithstanding this original in¬
appropriations, these two bills tent, today the major business of
construction
might
of / additional
to offer
appear
alternative
a
power
practical the Authority is its electric
further outlays for
to
tions
and
70%
of
its
opera¬
capacity is
eqUivaient
enterprise
r?*ease 0
this
mjgs|on
may
^
Q r
accoimts anc{
and
rates
f
o r
the
t h
supervision
of
p£
amortization
General
wrote
Senate
the
Committee in
Public Works
on a
continued
enormous
interest
and
investment"
of
ln
_
facilities
power
„
1955,
ner,
is
COMMITTEE
was
Ohio
Wes-
leyan Univer.,
,
,
sl^y and i;haj
received
training
in
engineering
well
ness.
gan
as
busi¬
as
be¬
He
his career
account¬
the
with
ant
General
tric
Robert
Elec¬
;
L.
Du
company
New York
Gene
V'
•
and
Marshall Field
SECURITIES
UTILITY
it
graduate
a
of
later with
was
in Chicago.
Co.
&
experience in the investment;
field includes workihg
His
PUBLIC
gov¬
part-
announced. He
in
,
Respectfully submitted,
'This great dependence of the sys¬
tem
its
operating
Du
; fl
a
ac
general
as an
adequate to cover all costs
+lfWothei areas. As the Comp- including, taxes,
J£dustry to the detriment
the
bring
of
determination
e
make-further
troller
jurisdic-
of
conditions of service
to
to
taxes
private
of
those
to
"piaCe TVA under the
agency
efforts
local
and
a s
mittpH
tion of the Federal Power Com-
be anticipated that
load will continue to
contract and compel the Authority
Thus, it
,
present territory of 80,000 square
miles, and representing a taxpayer
Kerr Bill, and H.R.
,
its
500,000 kilowatts of interim power.
nomi¬
report went on
*'before the House
mitted
prOgl^D!:
State
"Pay
,
_r
requirements, and last
crm^nnr??1-1!011110^
"The TVA is the largest power
Committee
mostly
Energy Commission.
:
„
L.
Gene has become associated with ^
Blunt Ellis & Simmons, 208 South
La Salle Street, and has been ad-
pal to the Treasury.
the
Yet
agencies,
.
electric
publicly owned in¬
stallations increased from
614%
growth
and TVA shows
power
enterprise in the USA, serving a
The
f OllOWmg
tile
_
all taken by other
was
the AEC has begun to cut back
TVA Valley Authority.
gigantic
of 57 %
Atomic
field. It plate capacity to 24% at the end
of 1956. On Dec; 31, 1956, 15% of
warned the membership that cur¬
the total installed generating ca¬
rent legislative proposals for the
Tennessee Valley Authority, if en¬ pacity of the nation was Federally
owned, and more than half of this
acted, would remove even the limwas
operated ! by the Tennessee
"ited restraints now exercised over
utility operation.
™w
through munici
III.—dtohert
CHICAGO,
of we
year
cooperatives,
and
Federal
the Federal public power
the
tumnnv,
consumers
palities
ance
of the
brief review
public
nal
fiscal
the
for
In Blunt Ellis
.
accomplished
be
can
while
"Deny further extension of the
specific
legislation but to nearly half as much—or 14%— present service area.
went to benefit industrial and
out an adequate solution for
"Require regular interest and
commercial customers.
The bal¬
and for the entire Federal
significant repayments of princi¬
"A
of
R. L. Du Gene Partner
until such
ernment of the TVA and
divestment
the breakdown
note
us
nnn,„mq,.n
farm
TVA Growth
expressed to the industry its
tion
■F
AJ
problem, the Public
Securities Committee of
we
recommend to the Congress
that the; present laws governing
1957: Only 29% of the Authority's the
Tennessee Valley Authority
output went to residential and be amended so as to accomplish
"Let
electric, sales
public power problem.
power
Investment Bankers
the
TVA
therefore,
"Basically,
strongly recommend ; the orderly,
divestment by the Federal Gov¬
General
Comptroller
Quotes
private investors, we should take
a forceful stand not only to defeat
by
*
son
average
Inc., New York.
Harold H. Young, Eastman Dillon
Union.Securities & Co., N. Y '
Suggests Divestment Program
given
Inc., New York,
Carl Stolle, G. A. Saxton & Co.,
reversing the trend."
to start
much as 40% below the
cost elsewhere."
as
away
.
Government
our
other
from
attracted
is
industry
states to the Valley by power
indefinite expansion of terri¬
tory and unrestrained competition,
and that it would perpetuate un¬
sound and inequitable financing.
We submit that as the agents of
Utili¬
Public
ties
CISCO.
competition from
in business, but
further
to
halt
tage of this one geographic area.
It is only salt in the wound when
age
Virginia, by a
James M. Powell, Boettcher and
Company, Denver.
%
-
Weeden&Co,
provided by the taxes of the
rest of the country to the advan¬
the
f
o
jnstead, our
to thepnProposed legislation are
based
the continuing threat to
been
only
pation/ and unrestricted license for
proponents of Federal public
power.
We believe that it would
release the Authority from all ef¬
fective Congressional and Execu¬
tive control, that it would encour¬
Asso¬
roent
»■
of John W. Pancoast, San Antonio
Pancoast Dewar, Robertobjections
son &
,
future, but complete emanci¬
the
t-
Company, Milwaukee.
authorizing the issuance ol Fed-
m
provide, not a
basis for TVA activities in
can
v
Robert H. O'Keef, The Marshall
advisability or legality
fltta? fwmicVA haveycXbSte3 the Investor-owned utility indus- Albert Es Schwabacher, Jr., f
in^ ta8xesTomIthin«Tess^^than 67. try and thus to our entire eT
Schwabacher & Co, San Frantaxes something less man o A
nomic, society.
we believe the
lacking in appeal.
"Our
Committee, however, is
convinced that this proposed leg¬
islation
/
principle
nationvetpresidents
lesiaents
issue may not
bond
the
eral revenue bonds as a matter
the entiie
"tne entire nation, yet tne
be entirely
delivered
problem as a whole was
revenue
of
ah
an
the
■
to
as
Baker & Co., Philadelphia.
_
Utility Securities Commit-, GeorgeNewNye Smith, Barney &
t
. t
controversy
Co., L. York.
t
t
of accumulated net
$413 million
province of the.
the
not
is
"It
$l°f bmion'fo^poVefZ^oses
Pillion toi
powei
puiposes
proposed legislation and in Calling for adequate solution
for T. V. A. and entire Federal public power problem, suggests
A
appropriations by
$1.2
of
nessee
country is compounded,
"Unrepaid
Valley Authority. Asks for defeat
practices of the Tennessee
ca^
any
rest of the
proposals, and the concept and
Federal legislative
T. V. A.
subsidized
is
nower
but doubly so
TVA where the burden on the
in
powOT
Utility Securities Committee's report to Investment
Bankers Ass'n advances numerous arguments opposing current
C
19. 1958
James M. Howe, Farwell, Chap*man & Co., Chicago.
also violates the recommendations Milton.F. Lewis, AG. Becker &
of the President of the United ^,C°-York. *
States, the Comptroller Geneial, Ed^ar J. Loftus,_ W. E. Hutton &
the Secretary ofthe Treasury, and
U ., JP
'
the Bureau of. the Budget.
Wallace M. McCuidy, Thayer,
to be fuel
Public
*
Thursday, June
.
lates the will of Congress as expressed in existing legislation, and
pally feasible this, too, will have
generated.
Expansion Program Opposed by
investment Bankers Association of America
T. V. A.
:
.
.
(2730)
securities
banks, insurance
Thomas M. Johnson, The Johnson, companies and ' trustees. During
program, the affairs of the
• Lane,
Space Corporation, Sa- the past three years he has spoken
TVA should require unusually
vannah, Ga., Chairman.
before
more* than 150 various
close control by the Congress and Elwood D. Boynton, C. F. Childs groups on investments and conthe Executive Branch of the Gov/ and Company, Inc., New York, ducts a regular adult education
eminent.'
Secretary., ; J'y.tt
course on the subject. ;
"Aside from taxpayer contribu- WHham N. Bannard, 3rd, AmeriBlunt Ellis & Simmons 7 are
tions
of initial capital and
the
can Securities Corporation, New members of the New York and ;
retained earnings, TVA, of course, ■
Yo^k"V' •
; Midwest Stock Exchanges. Other
enjoys a continuing subsidy.
It ^art
Brown, Laurence M. Marks partners include John E. Blunt,
pays no interest on its capital; it
& Co., New York.
3rd, R. Winfield Ellis, Richard W.
pays
no
taxes, local, State or Edward J. Costigan, Jr., Edward Simmons, Walter J. Fitzgerald,
Federal; and it is freed of many
D-Jones & Co., St. Louis.
v • jr>> Eugene Hotchkiss, Gilbert H.
charges such as workmen's com- Carl H. Doerge, Wm. J. Mericka Osgood, Robert H. Gardner, Stanpensation, pensions and other
& Co., Inc., Cleveland. -. • jey e. Cronwall, Robert M. Clark,
fringe benefits provided by the Thomas B. Gannett, Hornblower Bernard J.' Cunningham, Harvey
Government at no cost to the Au& Weeks, Boston.
H.
Orndorff,. and Robert Evans
thority.
Although nominal pay- W. Ronald Gill, G. H, Walker & Maxwell (limited).'
ments are made to local and state
Co., Providence, R. I.
:
ernment
demand
power
leads to
.
with individuals,
the suggestion that, in any expansion
.
~,
..
.
,
.
.
.
(
..
_
the
insatiable
TVA.
To
the
general
public,
jmay seem a logical
way
the
power
on
'
Government's
a
of
requirements
fuel generated, not
it there
of putting been
'business-like' footing.
Even
writing and distribution of
a
Fed¬
end
in sight,
Nor is
for it has
announced that an additional
bodies 'in lieu of
Albert H. Gordon, Kidder, Pea-
taxes,' the com-
PA
Arlrls
body & Co., New York. •
....
""Ff V°v™aa
'
ity and its intervening distribu- Edwin B. Horner, Scott, Horner &
^ (Special to the financial chronicle),
plant will be needed annually,
tors amounted to only 3.66c of the
Co., Lynchburg, Va.
r
4
.
BOSTON, Mass. — Ernes.M«
and because further hydro-elec¬
1956 revenue dollar, as compared B. ^. Houston, Dallas Union Secu- Pitschman has been added to tne
tric development is- not economi- with an average of 23.4c paid out
rities Company, Dallas.
staff of Keller & Co., 31 State bt,
project $160
to investment bankers, the under¬
an
hydro.
million
of
new
generating
bined amount for both the Author-
for
of
taxes
.
all kinds by the in¬
vestor-owned utilities in the
same
Return of capital to the
Treasury since 1947 has amounted
period.
to
an
Pioneer Natural Gas Co.
Regardless of the exact computa-^
tion as to the extent of subsidy
(
granted
that
it
TVA,
obvious
the
earned
•return
Southern Union Gas Co.
UNDERWRITERS and DISTRIBUTORS
$240 million, but this represents
annual average well below 1%.
seems
claim
on
the
patently
of
a
4%
Railroad
Govern¬
ment's investment is only a
Industrial, Public Utility and
Securities, Municipal Bonds
book-.
keeping fantasy.
"This
Committee
believes
that
before any consideration can prop¬
Bank and Insurance Stocks
Unlisted Securities
erly be given to the financing of
TVA, certain vital policy decisions
must be made to curtail the arrant
growth
this
Unlisted
Trading Department
and unfair advantage of
project and other similar Fed¬
undertakings. We con¬
Laird, Bissell & Meeds
eral power
tend that thd Kerr Bill and Davis
Bill, and
WERTHEIM & CO.
Members
New
York
Stock
Exchange
lation
dorse
YORK
must
the
Members
New
York
and
American
Stock
Exchanges
other similar legis¬
be
defeated.
report
of the
We
120
en¬
minority
Public Works
opposing the lat¬
ter Bill, 'because the subject mat¬
ter of the bill provides a vast: ex¬
pansion of authority to the TVA,
without proper controls, and vio-
BROADWAY, NEW YORK 5, N. Y.
Telephone BArclay 7-3500
members of the House Committee
on
NEW
any
DuPont
44
Bldg., Wilmington, Del.
Bell Teletype NY
Phila. Nat'l Bank Bldg.,
Whitney Ave., New Haven, Conn.
10 Waldmannstrasse, Zurich, Switzerland
1-124849
Philadelphia, Pa.
160 W. Broadway, Salem,
225 S. State St., Dover,
N. J«
Del*'
Number 5752
187
Volume
.
.
The Commercial and Financial Chronicle
.
high
The Place of Public Relations
bit
Management
ANTHONY
G.
aroma
of smoke.
up.
v
.
a
•
nize
pig.
a
What
foundation
is
what
we
in
even
this
businessman
pany
Doing
relations aspects at the very start.
This explains' why we say that
public relations is a management
good
to
deeds.
or
This
when
job
is
done
consideration
must
do
an ;
pointed out
to
relations
public relations started out
Going
-
-
ple. People, individually and peo¬ so on, and you have laid a solid venting fires by having something.
ple in groups. Unfortunately, some foundation for good public rela¬ ; to say about the materials that go
into the house in the first place.
public relations men mistake the tions.
first for the second. They think, if
If we had given consideration to
For
the
very
small company
the public relations aspects when
>;ou get along with people individ¬ this is usually the- sum total
of
ually—over a martini, for instance good public relations. Good "em¬ we first decided to build a plant1
---the rest comes easy. y;>
.
•
y> ' ployer, good product, good serv¬ in Glen Springs, I doubt we would
'
profound
any
but
t i
m e .s
s om e
•
.
such, off-the-
cuff
v
'I
opinions
„
'
Actually!; tcel second? Is y most
helpful. ;
are
I would also
tion should go
conceived and
group and as individual
''
You have established
companies.
yourselves
the field of public
However, if, notwith¬
standing that, ,you folks in New¬
castle still want coal, I for one do
not object to carrying it.
Let me begin with a confession.
I am not very proficient in public
relations semantics.
Sometimes I
experts in
relations. ;f
have
at
trouble.
in
been
doubts
my
be
short
little
of
the
the phrase
"public-relations" to describe two
separate things—a state of being
Actually,
and
an
we
use
activity.
build
of
land.: Then
to
we
public relations has yet attained
the stature of other professions.
all,
lations is
a
plural noun.
;
agile
with
rationalization,
up
a
mast
better
off
than
cise
their
when
cus¬
confidence and exer-,
refrain
to
right
from
I
sions
mindful of
was
having to do with the oper¬
plant. This was when
ation of the
products
this
of
were
in great demand
Now,
even
the
are
management for imperil¬
pany
get into a bad competitive
position.
;
What the management failed 'to
was
then
take
firm position and
a
give the reasons for it.
any
one
thing,
don't have
we
impressive paraphernalia. The
engineer has that mysterious con¬
traption called the slide rule; the
accoimtsint has his calculator. Doc¬
dentist"have formidable
assortments of weapons, while the
tor ; and
can cite obscure cases from
forbidding shelves of musty vol¬
lawyer
umes.
V'v:
ry v
-
We- have
d.
accessories in
,no
our
trade, and I think this is one rea¬
for the
son
tendency I have no¬
public relations
mumbo-jumbo of mysteri¬
ticed to surround
with
ous
'"
a
phraseology.
Such phrases
were
t
ing of consent,'? "perceptual con¬
text" and "image profile."
V
ratified discussion a prac¬
defined public relations
"the Science of propulsion of
.In
one
titioner
as
motivation."
.i:.
<•
r
/
-
To
me
it
relations
earth.
down to
more
means
-
..
My concept of public
is somewhat
,
>
Public
This
is
Public Relations, the
ganized
"the engineer¬
as
primarily—
"Getting along with
people."
"P"
and
activity,
a
with
capital
or¬
capital
a
"R."
*An
the
address
26th
tute
be said to have
by Mr. DeLorenzo
Edison Electric
before
Annual
Convention, Boston, Mass.,
Insti¬
June 11,
1958.
Utility Securities
Springs couldn't be better. The
people there are very proud of
their General Motors plant.
But how much simpler if com¬
important to make
leaders had beeti con¬
Otherwise
we munity
right after we acquired
tend to become bogged down in sulted
the land, if our plans had been
a
morass of words.
It is impor¬
tant to know, when someone says explained to them, if assurances
the Edison Consolidated Company had been given as to what the
I think it is
this
distinction.
Underwriter
.
has
good public relations, whether
effort
mean its relations with the
public are good.
,
,
lesson the hard
Not too many years ago a com¬
avoided.
One
was
We
a
Her¬
had
reason
that public
•
Distributor
Dealer
have been
to learn our
would
culean
just
What
plant would not be.
they mean it has a smart public
relations staff or whether
they
.
A company can
way.
for
this,
think,
I
relations in those
pany's relations with the public .days was the frosting on the cake
were
presumed to be good until —something you put on after the
they got so bad they smelled to layers came out of the oven and
The
FIRST BOSTON
PRIVATE
WIRES
CORPORATION
TO
G. A. Saxton
Schneider, Bernet
& Hickman,
Inc.
&
Co., Inc.
15 BROAD
It
'
*
»
T
-
'
.J.
STREET * NEW YORK
'*-
&
Eastwood, Inc.
Teletype; NY 1 -609
-
NY 1 -610 '
Securities of the
Philadelphia
Reinholdt & Gardner
St. Louis
.McAndrew & Co.,
San
Inc.
52 Wall St., New
-
,
.
WHitehall 4-4970'
;
Bank Stocks
_
-
.
-
y
Securities of the
.
Trading Markets
in Public Utilityi
Natural Gas and Industrial Securities
•
Agencies
Revenue and Housing Securities
Common Stocks of
Utility and Railroad Corporations
Bonds, Preferred and
Industrial, Public
Francisco
Cleveland
United States Government and its
State, Municipal,
York 5, N. Y.
Chicago
San Francisco
Philadelphia
:
5, N. Y. *
1
Pittsburgh
Boston
Dallas
Hendricks
This
leads me to another important
planning
to is
But public relations also means
pillage and1; sack the community an end in itself but only a means part of the Public Relations job.
to certain ends. \ A good public
the things the company .does in; and
carry
off' the women and
First it is. important to let
people
a. formalized activity to influence children into slavery.
standing in the community is not1
Continued on page 53
worth much to the company that
its relations with the public. , in
:
: It took months to convince Glen
this sense it is singular.
Springs that we weren't going to
All groups have "public "rela¬ build gn eyesore; we weren't go¬
tions" spelled with a small v."p'' ing
to; pollute their river; we
and a small "r." Whether we like weren't going to create a smoke
it or not, whether we'want to or nuisance; our trucks weren't go¬
not, you and I have relatiohs with ing to endanger their children.
the public or a public.
Eventually, we did win reluctant
consent to the project and went
;r But —-whether these relations
are
good or bad can depend in ahead to build our plant. What
substantial degree on what we do is the sequel?" Today our com¬
relationships
in
Glen
about them in n conscious way; munity
thought \ we
'
For
em¬
critical
ing their jobs by letting the com¬
do
point to be borne in mind
that public relations is never
The
a
a company that
building good re¬
lations
with
its
employees by
agreeing to substantial conces¬
am
thought it
what the public
ever, be aware of
reaction will be.
with
one
factory whose windows are broken
and whose parking lot is kneehigh with weeds?
themselves
but
bear
that has gone broke? Is a
community with a plant at half-
ployees
standpoint,
but
Are
moment.
war.
tomers lack
our
';
employ¬
ees temporarily out of work better
off than ex-employees of a com¬
me
after the
rezoned for buying, lay-offs become necessary.
In making the decision to lay off
some
employes we should, how¬
have the property
a
company.
This, may appear to be a pretty
its
tions
tract
a
drew
filed them and petitioned
plans,
relations means, first of
Public
We got together
Springs.
f
1
a
the
of
lay-off, for example, may not
seem wise
from the public rela¬
A
decided to
plant in—let's call it, Glen
we
immediate
our
a
precedence.
disastrous.
Public Relations Distinction Made
Some years ago
that
We- pany
ourselves right
case)
company's-. relations with heavy industry. Immediately, all
the public—in other words,, how
hell broke loose.
Citizens com¬
it stands with the public, whether,
mittees/action committees, church
people like or dislike it and its
groups, town council men -jumping
whether products. In this sense public re¬ on; the band wagon—you'd have
•.
even
have
would have asked
,
DeLorenzo
G.
well-
well-planlied public relations ac¬
tivities you have undertaken as a
as
ever
ice, good neighbor; add them up
and you have good relations with
start, will the community
the public.'
1 ? ?
J ^ Fortunately for us in the busi- oppose the idea and for what rea¬
dealers, neighbors and, ness, this is not the whole story sons? Have we answers to objec¬
of course;"; that biggest and most
tions that will seem valid to the
by any * means.
For the - larger
indefinite^of all groups —- the company, while doing a good job community?
How best can we
public, y' '
: (.::y
is fundamental
y yU
to good
public present them?
Mind you, I am not saying that
Perhaps, before I go any fur¬ relations, how you do the job is
ther, I had better explain a point important too. The job must bo the public relations aspect of any
that, freq u e n 11 y confuses? our done in the right way or the ef¬ policy or action should control.'
thinking about public relations.
fect; on one's public relations can Usually, other considerations take
our
i m proy e d
public posi¬
the
•
tomers, shareholders, suppliers (in
of the v
credit for your
to
with
people in groups—employees, cus¬
in all sincerity "t h aty:
say
much
^ getting along
important
v
of
cific instance it is actually in the
long-term public, relations interest
'
research,
the public
policies and
assess
aspects
lay-off will be
unpopular and therefore unsound
from a public relations standpoint,
we may
conclude that in a spe¬
v
is not based on
shall be better able
we
beyond
reaction
a
as
is my
outsider and it.
job—-in
profitable busi¬
a
actions.
belief that the electric good public relations if it gets essential prerequisite to public: lire department, and we still get
utility industry occupies the along with people.
acceptance. Make a good product, called out in the. middle of the
A good public relations man has
strongest public position in its his¬
;:live right, treat your employees night on occasion. But increas¬
tory.
This is the opinion of an the ability- to" get along with peo¬ well, be competent managers and ingly we are concerned with preIt
production
operating
identify and
moment ago,
a
better
ness—then
the action taken—not after.
As I
"a jolly good fellow"
primarily to increase sales or
a
tion of
be
-
This may seem
other words, to perform our func¬
before the decision is made
come
solid
a
which
others.
become
but
given. And this consideration must
public
in* mind
have
that "the
say
that
to start with
of
we
to
poke.
is
all
obvious,* but I am afraid that it is
forgotten.
If we keep in mind that our end
objective in seeking to improve
our public standing is not solely
means, among other things,
giving consideration to its public
to
is to keep his com¬
solvent and this duty tran¬
scends
job in the right
good
a
Start
time
a
means
relations has
variety
their
of
most
broke achieving it.
As
Brogan says, the duty of the
gone
D. W.
way
prac¬
required
has
important
Using PR at Very
ground
relations
still
This
came.
most
a
point.
.
are
company
to
me
trying function—a top management func¬
to make a
silk purse out of a tion. Every policy decision, every
sow's ear. By and large, however, ^administrative action all down the
the public has learned to recog¬ line, has a public relations aspect
spend
.
job with
■
:
public
titioners
before
brings
a
Of course,
to do but rebuild from the
public relations, briefs essential P. R.
principles and practices, and contrasts the workings of this
endeavor in the automobile and electric utility industries.'
Notes both industries share the same problems of government
encroachment and accusations of "bigness"; envies direct con¬
tact electric utility has with its customers;
and commends
an outstanding
of techniques.
get
place was ablaze by
then, and often there was nothing
Corporation, Detroit, Mich.
electric industry for doing
just
the
point
would
whole
Some
;
this
us fire laddies
he thought he detected a
say
the
Mr. DeLorenzo defines
,
At
president
worried,, call in
faint
DeLORENZO*
Vice-President, Public Relations
General Motors
heaven.
•company
and
In Modern
By
(2731), 19
•
Casualty, Fire and
Life Insurance Company
Stocks
Bankers'Acceptances
■ • i
International Bank for Reconstruction and Development
•
Canadian Bonds
»
Foreign Dollar Bonps
.
.
;
*"
Financial Chronicle
The Commercial and
20
of
part of the Philadelphia National
Bank,
Philadelphia, Pa., it was
administration toft the
branch
Lafayette National Bank of Brook¬
News About Banks
Parkway
consolidations
new
branches
new
officers, etc.,
revised
,
-
k
.
'■
j,;•
>
Tjit
;
-i
■
■
M
jieKW-
>:* cwinvn.r*.
W/.iiiJ
*
•„
C •'
..
Kitlitz"
I
•
H5>h
.
'i'''":
n'."':.'.
c
"
'
•
ndent.
iV '
?»i'
\
'3nM»»
:■
as
B.
■
■
AJfc
.
The
Moore, Chairman of the Board,
Mr.
Baskin succeeds the late
announced the appointment Joseph Singer.
Greene, Jr., Dominiek H. Mot-
department.
of: the international
Rinaldi
Domingo
Geoffrey
firm
Vice-President
of
been
has
named
of
Providence,
P.
designated
be
Cleeve, K.C.B., K.B.E., to the Ad-
son,
firm's munici¬
He
Vice-President
of
pro¬
T. cwas
to
that
bank
Puerto :. Rica n
of
Manager
1932, Mr. Baskin joined the
public
National
Bank
& Trust
sinCe
named
merged
^'Hector M. Angueira and Charles
Public National Bank.
A;-Whitcomb'were named Assist-
j.
•
v:
value of $25.00 each, to
-
Chairman'of
Chief
Exceptive Officer of Standard Oil
the'Bogrd Of. pirectors and
elected
been
*
Robert
*
Swensop
have been appointed
Vice-Presidents
tional
Rodeiic
by The First Na¬
New
Bank,
East
to
1918
serve
Mr.
in
of
board
the
on
a
savings bank in. New York State.
Magnus is a director of Ja¬
Mr.
Ruppert Co., The Fifth Ave¬
cob
the
Association,
nue
of Trade and
Board
member of
a
also
a
trustee
the
of
elected
Meadow
Bank,
Formerly
a
luncheon
for
given
Mr.
>ear,
its 110th
Mr. Magnus, the 10th trustee
Central
Silleck
Robert
Swenson
B.
Roderic
with
Silleck
with
is
."
and
William
Dr.
elected
a
.
'
■
has
the
of
been
Lincoln
June
the
of
Com¬
12
death
the
si:
Heger,
of
dent
difed June 11 at the
age
Trust
1,
search
of 83. Mr.
and
held
National
Smith,
Arkansas,
Bank
Fort
of
its
increased
capital stock from $500,-
common
16.
*
$1,000,000, effective May 31.
(Number of shares outstanding—
40,000 shares, par value $25.)
000 to
Officer
has
of
Exchange
Wisconsin,
in
the
title
since
the
Miami
Board,'
and
:
an¬
Weintraub,
Joseph
by
President
of
been
has
Fla.
ol'
Bank
National
Beach,
nounced
re¬
1947
Mr. J. Arch
Vice-President
as
Mercantile
Assistant
of
Jr.,
Avary,
charge
Wuesthoff has
Marine
ft.
The appointment of
Bank,
investment
the
"
ti*
•
the
for
research
in
"stock dividend the Mer¬
a
chants
Assistant Vice-Presi¬
Trust
National
for
'By"
>1;
,
engaged
'
'
stock¬
to
Wuesthoff
Department.
been
1.
been President of the
Heger had
July
investment
of
value $100.)
U:.',
announced
also
Wm.
and
outstanding—15,000 shares,
shares
Hacketl,
E.
quarterly dividend
share
on
capital
a
a
been named
National
L.
of* St.
Bank
stock from $1,000,000 to
$1,500,000 by the sale of new stock-,
effective
June
3.
(Number of
par
#
Marine
Hempstead,
West
$
7
National
Empire
Directors'
Robert
payable
Milwaukee,
Brook
Meadow
of
cents
50
Winfred
Vice-President
a
JJs
elected at
of
holders of record June
s«t
.
was
Board
Fitch
stock
.
sjs
several* bro¬
in
houses.
kerage
Sr., last March.
to
value.
par
Bank
Jansen
Trustee
approval
municipal department for
a
departments
pal
the
announced
Wis.,
Friedmann, who
Mr.
Trust
estab¬
large New Jersey bank. He has
Bank,
Exchange
meeting, fills the vacancy, left by
1953. ';
and
Bank
Emil R.
silver
*
*
Passaic.
Great Neck, New York, was
same
of
*
Corre¬
Department,
Bank
spondent
the
sterling
memento.
?
Mr.
a
the
increase * its
capital stock from $1,114,590 con¬
sisting of 111,459 shares of the par
value of $10 each, to $1,814,590
consisting of 181,459 shares of the
to achieve a 40th anniversary, was
presented
National
declaration of
given
At
Mr.
Bank,
Brook in
Meadow
firm
own
later
capital
Mr.
Passaic-
with
National
Clifton
York, and a director of
Underwriters Trust Company
Magnus at the bank, in
a
his
and
years
25
over
municipal
a
Paul, Minn., increased its common
the
Vice-President,
a
was
He operated
some
lished
Fitch, President of the
Milwaukee,
N, ,L, and the First National Bank,
Kearny, "N. J., before he joined
pany,
of New York.
for
had
as
election of Ralph T. Friedmann to
the
bank's
Board
of
Directors.
I.
L.
G.
Marine
National
Brook
depart¬
recently been manager oi' munici¬
Eliot
■
been
Hempstead,
West
Peticolas
has
experience
dealer.
the
under
ton National Bank of Columbus.
Vice-President
Executive
of
the
'.
sis
Peticolas
C.
Ben
Kings
lyn, New
effected
was
charter and title of The Hunting¬
H.
Harold
by
>!s
;•!
County Trust Company of Brook¬
the
16
June
Society. He
American Arbitration
is
York
New
Arbitration Committee of the
the
dation
Helm, Chairman.
River
York.
the
of
Trustee
a
Magnus was the youngest man
City Bank of New York.
i
June 12
of service
on
celebrated his 40th year
Savings
and
Magnus
C.
Percy
of
International
on
change Bank, New York, was an¬
nounced
us
*
Silleck
B.
the
Bank.
Board
Robinsoh' has
Mr.
years'
effective as of the close
business May 29. The consoli¬
merged,
i
.value.
par
visory'
a
Crowther
Geof.
Sir
the Business of Chemical Corn Ex-
consisting of 91,069 shares of
same
also
of
Director
a
Manhattan
Cliase
has
Jersey,
New
Company,
common
Sinclair
municipal
formed
E.
investment division, r.'.C-
Columbus, Ohio, with
stock of $600,000, have
Company.
Lord
John
Howard in the
,
the
Bank
Exchange
Market
The
and
i.cq-P/resi-
department will continue under
supervision of Vice-President
John J. Cummings of.'the Bank's
Ohio,
Columbus,
,
be
ted
a
ment of the Providence bank. The
Bank
National
with, common stock of $6,000,000;
capital stock from $2,232,075 con-
si-sting of 89,283 shares of the''par
$2,276,725
Maiiagei's of the Beirut branch.
Columbus,
of
•*•••'.
newly
3:1
sj:
.
V
dent
Robinson
R.
Arthur
'.-y-
Huntington
The
;
'••V .."4;''
anf, Managers of Puerto Rican 7 Commercial, State Bank
and
branches', Hvhile Alfred- J. Buck- Trust Company pf New York was
l^' Suheil E; Abu Hamad,1 and given approval to,, increase its
Mafio 'GiiliiVibertr were appointed
12.
i
with Assistant
v
business July
in 1955
with the
will
a s soc
of
close
depart¬
ment,
thp 33-year
the
at
bank
Gimbel
old
Company
Bankers
pal
to
chase certain assets of
joined
and
in' 1953
Trust
Bankers
when
branches.
a
agreement,
of
terms
subject
currently
manager ! of
the New York
the approval of
supervisory authorities, Philadel¬
phia National will assume all the
deposit, liabilities and will pur¬
office of Bankers Trust Company
Company, New York, in 1929.
the
Under
still
ap¬
tive July 14.
Mr.
Robin¬
National
?
Bank.
His
comes" effec¬
the Gimbel
as
I.
pointment be¬
Philadelphia National Bank. It
office of the Philadelphia
a
Na¬
tional Bank of
branch
become. the '24th
Wer-
Industrial
store
department
unique
to
will
of
Sinclair
Lord
end
Associated with the 39th Street
was
moted M)m Assistant Manager
B.
the
for
of
oC'Sir
election
Crowther
Co.
.
of James
Assistant Treasurers
tola, William- F. Murphy, William
S. Ogden a and John R. Petty, all
1
a—Vice-
formerly
Hebwas
&
by the Board of Direc¬
tors of both banks, paved the way
bank
.
.
Thursday, June 19, 1958
.
Action
H
George Champion,* President of
the Chase Manhattan Bank, New
York,
of Charles
Vice-Presi-
Executive
as
theim
joint
a
.
O/'i"
K,-,i
The bank also
branch.
announced the election
Bankers
and
Capitalizations
■
.un/v.
•'
.
investment
York
statement
issued by H. J. Grinsfelder and
Frederic A. Potts, Presidents of
the respective institutions.
Mr.
York.
in
announced
Grant for¬
merly was an Assistant Vice-Pres¬
ident-and Manager of the Bay
New
lyn,
•
.
(2732)
■
the
of
Chairman
Mb
;
"
Mr.
associated
is
Swenson
supervision
of
the
in
the
Both
were
formerly As¬
sistant Vice-Presidents.
At the
Albert C. Simmonds, Jr.,
of The
man
Bank
of
New
announced June 17 the
time the bank
York,
He
Assistant Vice-President. Mr Rob-
ory
with the Consumer
is
and
Commodities
District
Goods
of
the
National Division.
W. Spurr Jr., of the Banking
Department. Richard L. McKin ay
was
named
Estate
Trust
Division
of
Officer
the
pointment.
merged last year.
were
in
Trust
the
De¬
Savings
Home
Plains,
elprteri
York
berg
and
W
Fred
Board',
President.
Johnson who
Danby C.
The
Kull-
dent
of
K.
New
York,
head
the
and
was
Baskin, Vice-Presi¬
has
Trust
Company,
been
Bankers
named
to
39th Street
Avenue
branch, it
T. Rex Rhodes was
Assistant
appointed
Treasurer in
Seventh
tional
announced
by
William
H.
Stanley
elected
H.
Hunt
H.
Jr.,
has
Grant
Vice-President
has
been
in charge
• r
Trust
Commercial
in
$15,000,000
from
by
of
shares
he
for 27 years
been
having
with the First
Ga.
Atlanta,
of
Bank
Vice-President
a
His first full-time banking
of
increased
its
$14,580,000 to
the
was
National
since 1939.
Bank
sale
stock, effective June 4.
and
New
investments division.
its
O.
May 31.
National
Minn.,
to Mercantile
comes
Atlanta, where for the past
year he was with Goodbody and
Co., in that city. Previous to that,
sjs
been
Albany,
Company,
York
Bank
G.
capital stock from $12,000,000 to $14,580,000 by a stock
elected Vice-President of the Na¬
ing Department.
company's
First
dividend and
Alfred
Eliot
Avary
from
common
as
the Bank¬
an¬
by Milton
sis
Minneapolis,
Vice-President
partment.
Herbert
Mr.
ap¬
the
to
by
retired
si«
J. Pianis Secretary.
Walter
made
this
to
Marine
previously handled
Voilmers
Maurits
elected
was
of
White °PIains, "New-
chairman of the
Qsborn
Bank
_
prior
According
President, Wuest¬
hoff will be taking over the re¬
sponsibilities in the Trust area
promotions
Vice-President
Roberts from Assistant Cashier to
erts
Vice-President
Fitch,
white
John W.
20
nouncement
Raymond W. Hammell of the Investment Department, and Greg-
nounced the promotion of
to
for
I.
the banks
The
an-
L.
elected Vice-Pres¬
was
ident of the Meadow Brook when
of
same
Assistant
Chair¬
Malverne,
of
years.
District of the bank's National Di¬
vision.
Bank
Savings Bank, New York.
Southwestern
outstanding
of
were
Fla.
Orlando,
Guaranty
Trust)
he
returned
lution
Firm
with
its
of
750,000
Stockholders
of
the
tional Bank of Miami,
have
approved
sale
Na¬
First
Miami, Fla.,
of
an
addi-
common
shareholders
Establislied 1928
dated
We
April 30, effective June 2, at 9:00
a.m. Liquidation
agent: Allan H.
Trading Markets in-
Offer
a
COMPREHENSIVE INVESTMENT
Sturges, 31 Milk Street, Boston 9,
AND
Mass.
&
(a) Operating Utilities
plus
Transmission, Production
& Distribution
account
74
National
IlAnover 2-2400
Teletype NY 1-376-377-378
Pa.,
including
PUBLIC UTILITY—RAILROAD—INDUSTRIAL
FOREIGN ISSUES
We
and
of
<
The
First-Grange
s
*
*
to Service Firms
With Retail Distribution
i
Your
First
Inquiries Solicited
Huntingdon,
un¬
$
i
Gimbel Brothers Bank
P.
F.
National
120
Bank of Huntingdon, Pa.
...
Particularly Adapted
Company,
der charter of the latter bank and
title
are
He
Trust
Bank
CLASSES OF BONDS AND STOCKS
total
Huntingdon, Pa., consolidated
new
Trinity Place, New York 6, N. Y.
*
Grange
Huntingdon,
Security Dealers Association
ALL
New Jersey, has
bank's
the
8.':
Members New York
Commercial
the
of
SERVICE
m
capital
funds
to
$10,000,000, making it
eligible to make single loans of
as
much as $1,000,000.
The un¬
divided profits account is now $1,326,060.
brought
The
Troster, Singer & Co.
DEALER
The transfer of $1,000,000 from
the undivided profits to the sur¬
Trust. Company,
(b) Natural Gas Companies
$
,
&
,
Trust
Co., Philadelphia. Pa., will become
*
FOX &
CO., INC.
BROADWAY, NEW YORK 5, N. Y.
Telephone
REctor 2-7760
to
Atlanta.
new
shares, par value $20.)
capital
stock of $1,500,000, has gone into
voluntary liquidation by a reso¬
Mass.,
a
National Bank of Commerce (now
Pilgrim National Bank of Bos¬
ton,
jobs
After
in New York City with the
year
(Number
—
in
Teletypes
NY
1-944 & NY 1-945
Number 5752
Volurrje 187
.
.
.
The Commercial and Financial Chronicle
tional, 100,000 shares of capital
stock.
The new
stock
will
be
offered to stockholders at $34 a
share on the basis of one new
for each five
share
held.
now
was absorbed by Wellington State
Bank, Wellington, Tex.
*
Surplus of The Ilialeah-Miami
Bank, Hialeali, Fla;, has
Springs
increased to $600,000.00 fol¬
lowing
Directors'
approval
of
$100,000
from
Un¬
of
transfer
divided Profits.
open
National
Colo.
County's
oldest
Bank,
funds
of
Dade
state-chartered
now
has
capital of
a
Prank
L.
California
tion
nine
of
ft
;
: ft
Bank
Norman
city
division; and Louis
Schaefer, instalment loan de¬
y
William
Trust
Barker, Jr.,
division; Charles W.
partment.
H.
Wieland, Jr., was
elected Comptroller of California
Bank,
Earl
K.
Simpson
was
ft
and
promo¬
Bank of¬
meeting of the
a
Com¬
The First National City Bank
of price increase during inflationary
:
v
.
'.'J-
Federal
and
Senator Robertson
that there's
1,
easily be offset by central banking
can
■'
,.j
■
The June
.'V.
'
,,
monthly Bank Letter
,V
•
measures.
t
Industry
■
An increase would, of
helpful to gold-produccountries. They would gain
price of gold ill absence of "im¬ buying power at the expense of
perative and inescapable" need to nonproducing nations. :,.
,};
do so and pointed out, for exam¬
"The last—and only—time the
ple, that our last gold devaluation dollar price of gold was signifi¬
"had a legitimate object of en¬ cantly
changed was during the
The situation
couraging recovery of a painfully great depression.
and
inequitably deflated world was quite different. Then the Fed¬
eral
Reserve
had
been
embar¬
price structure."',
of the First National
New
City Bank of
York opposed an increase in
In another
pressed
in which he
area
ex¬
regarding possible
recent outflow of gold
from the United States, -Virginia!s
effect
concern
have
trusted
portance.
the
needs,"Credit
The very
as
talk
rise in the dollar
of
ing
The
fighting
Federal
trade
and
and trust
course, be
rassed by gold shortage in
the depression. Now the
who
dollar; it would hand out windfall
profits to those who have not. The
intricate world-wide machinery of
:<•
;
,
a
dividuals
danger in
no
to the dollar would, have
bonanza to gold miners.
example, an increase in the
dollar price would penalize fort
eign governments, banks, and in¬
Chairman
Reserve
Any alteration in the ratio
For
reserves.
conditions,
S.
yond
outflow of gold and that its effect upon bank reserves
recent
..
Vice-Presidents of the
were
Devan,
M.
Chairman reported.
Mutual
V.
Board of Directors.
Elected
U.
assures
'
*
California
ficers, following
$31,288,996
.
a
Calif., has announced the
bank
against $28,223,000 a year ago,
Charles E. Buker, President and
V; /
'
ft
environmental
King, President of
Bank,
Los
Angeles,
out-of-town
Resources now total
and
bank
on
of N. Y. does not approve
The bank
$150,000
surpllis of $ 150,000.
record June 20.
as
gold outflow
Cortex.
interest that this should
our
so.
21
large implications, running far be¬
gold question deal, respec¬
tively with domestic gold price considerations, and effect of
W. E. Bozman is President,
quarterly dividend of 20 cents a
share, payable July 1 to holders of
Board
Cortez,
be
of gold
Two separate analyses of monetary
the First
T. R. Yowell is Cashier.
&
total $1,837,377.
Directors also declared a regular
Bank
bank to
new
a
*
capital stock of $800,000
and remaining undivided profits of
capital
v
Permission has been granted by
Comptroller of the Currency
With
$437,377,
is in
Piice of Gold and Gold Outflow
the
to
been
*
(2733)
of
a
gold is
price
threat to prosperity.
a
sooner
lubricants.
the question?-,ceases to
disturb men's minds the better.
"Any nation can raise5 the price
it will pay in its own currency for
gold.
increase
An
in»
the price
of gold is tantamount to —Or a
method of—currency devaluation.
Many
than
nations, sometimes more
have devalue# their
once,
currencies
riod.
over
They
the
have
postwar
done
so
pe¬
reluc-
of
Reserve holds $9.7 billion excess tantiyfbecause'they had^tofTtlis
gold reserves; gold is not a limit- natural that currency devaluations
ing factor in applying measures should be undertaken with greatFederal Reserve Chairman Wil- to increase money and credit sup- es^ reluctance.
For devaluation
Named Assistant Comptrollers
*5*
v
r' ' ' .v
liam McC. Martin to comment on plies as aids to recovery. In 1934
were Thomas B. Carson, Albert R.
generally means higher prices and
,By a stock dividend, the com¬
this matter, which tlle Senator in- the 69% increase in the gold price
higher prices are unpopular. The
Jacobson, and Raymond H. O'Conmon capital stock of the State Na
eluded with his remarks published was designed to raise our prices united
ner.
■
;
§tates is;;np exception to
tional Bank of Decatur, Ala., was
in the Congressional Record, April generally — an object of dubious this rule. The dollar
price'of gold
increased from $1,200,000 to $1,~
merit in the present instance. Then will
The Bank of Montreal, Montreal, 30, 1958 (pp. 6907-08). Chairman
scarcely be advanced unless
320,000 and from $1,320,000 to
Martin foresaw no danger to our our policy was selfish and nation¬ the need to do so becomes
Canada on June 18 changes among
impera¬
$1,500,000 by the sale of new stock,
alistic:; we sought to improve our tive and inescapable.
top executives at its New York gold - certificate holdings of the
effective
June
5.
(Number of
trade position at the expense of
Federal Reserve System and em¬
shares outstanding—150,000 shares, Agency, its Ontario division and
Gold on the Escalator?
phasized that such international other nations and, incidentally,
head office in Montreal.
par value $10.)
gold movements assist the work¬ threw the world currency system
"The most imposing argument
R.
D.
Mulholland,
assistant
*
*
*
ings of the international gold into a turmoil from which—with for an increase in the
general manager in charge of the
gold price
it has never fully re¬
The Board of Directors of The
standard and can easily be offset the war
bank's
Ontario
division,
with
is that the growth of world trade
Now we have a higher
National Bank of Commerce in
whenever they affect the reserve covered.
headquarters in Toronto, has been
New Orleans, La., announced the
respect for international respon¬ plus inflation create a need for
position of our banks.
pany,
elected
its title
Auditor, and Thomas E. Mead be¬
Senator
came Auditor;
'•.;:;;; ri' [h -:l
St. Louis, Mo., has changed
to Security-Mutual Bank
and Trust. Company.
'
r
1
v
■
,
,
.
to 'the
post
of
General
A. Willis Robertson asked
■
,
¬
.
—
election
of
John
President, and
Executive
as
Credits,
on
A.
Vice
C.
the
as
Smith
President
-
May 20 and
announced
appointed deputy general
Oulliber
Clebert
on
death
of
Mr.
New
Silbcrberger
in
will
Toronto
be
suc¬
by James W.
Aston, President of the bank, fol¬
now
Gordon
agent
an
Joseph C.
Hobson,
H. Kenner, now
agent
in
New
York,
Mr.
The
First National City "Bank
noted that "as has hap¬
pened several times before in the
the financial mar¬
Spring have been swept
by rumors that the U. S. dollar
price for gold—$35 an ounce since
1934—was going to be raised. Such
a usually responsible organ as The
postwar
t
entered
the
to
as
Wichita National Bank of Wich¬
Canadian
some
Adams
ita
York
since
Mr.
1955.
joined the Bank of Mon¬
Falls, Tex., increased its com¬
mon
capital stock from $700,000
to $800,000
by a stock dividend
and from $800,000 to $1,000,000 by
John, N.B., in 1922, and has served
the
1953.
sale
of
June 3.
stock,
new
treal
at
effective
(Number of shares out¬
par value
ft
ft
its
of
Mr.
home
town,
York
career
New York
since
agency
has
Kenner
Saint
spent
of 38
his
Interstate
Securities
Corpora¬
tion has opened a branch office in
shareholders
the Northwestern
at
Newton, N. C. under the manage¬
ing
bank.
The
of the
and
liquidat¬
liquidating
Bank
ment of Claude S.
Hunter, who should be
care
Economist, for
Continued
on
page
in
been
here.
and
to
also
Counseling
Offering
in
Valuable Asset,
a
Corporate Financing
a
in the $35 price
certainly figure in the
increase
"An
will almost
Commonwealth
British
the
in
Abernethy, Jr..
Winston-Salem
direction
bank
of
Bill
Building,
under
Sexton.
the
the
con¬
in
South Africa,
producer, has been
largest
pressing the
for many years
higher price is
now receiving widened support in
the Commonwealth which also, of
course, includes some other coun¬
tries with important gold produc¬
case
the idea of a
and
tion—Canada and Australian
"The
idea has
the
SERVICE
DEPARTMENT
{
-
superficial
now than on the ear¬
occasions when a gold price
has
had
war
been
chronic
discussed.
We
inflation since
and, indeed, most of the
time since 1933-34 when the
was
Special Over-the-Counter Studies
more
plausibility
have
on
The
world-wide.
tlements among the nations and it
gold rumors that proved false.
advance
Capitalize
monly than gold in financial set¬
gold reserves which can be
provided by marking,up the price,
healthy caution, on the other hand,
is the fact that speculative fingers
have been burnt so many times by
lier
DEALERS'
com¬
meeting in October.
Interstate Sees. Branches
May 19, effective May 24,
4:30 p.m.
Liquidating agent:
addressed in
more
September and at
the International Monetary Fund
dated
Mr. E. M.
have
markets
extent
ference
in
Bank
more
dollar is used
discussions of finance ministers at
years
agency.
ft
National
Wellington, Texas, with common
capital stock of $100,000, has gone
into voluntary liquidation by a
resolution
New
at the
$25.)
First
the
his
entire business
standing—40,000 shares,
The
at
Stocks of gold
companies
in
New
"The
the price
that
strong demand in the London and
in 1923. He has been senior agent
rectors.
suggest
;
Bank
sibilities.
Economist of London has gone so
far
mining
Hobson
years,
kets this
should be trebled.
will succeed Mr. Adams.
lowing the regular monthly meet¬
ing of the bank's board of di¬
V.
New
at
Mr.
succeed
assistant
an
by
agency.
will
while
was announced
;.
Letter"
York
York",
a
Tex.,
head
.
in
Adams,
Lloyd
its
John A.
Hobson, senior agent at the Bank's
Trust Officer of the Republic
National Bank, of Dallas, Dallas,
as
at
Mulholland
ceeded
Dale
Graham, Chairman of the Board.
Election
office
Bank
Montreal.
-
June 3
of
manager
of the
raised ffom $20.67 to
price
the pres¬
Each turn of the inflation
spiral adds to the danger that some
ent $35.
day U. S. gold policy may need to
reconsidered. But this is not
Prepared for Dealers
be
by any means to say
Our
Dealers'
Service
Plan
is
developing
important business for dealers throughout
the
country.
For complete details write to
Mr. William P. Green
or
Mr. Lewis E. Stone.
II. HENTZ & CO.
Members
New
York
Leading Stock
72
WALL
And
STREET
Offices in
TWX NY 1-1154
Stock
Exchange
And Other
Commodity Exchanges
NEW YORK CITY 5, N. Y.
Principal Cities
Phone BO 9-8120
that the time
change has arrived.
The Federal Reserve has taken a
series of measures which defer the
need: the credit squeezes of 1953
and 1957 which checked inflation;
and the reductions in bank reserve
for
a
price
Corporations and financial
requirements in 1953-54 and again
this year which make more eco¬
nomical use of the U. S. gold
to
institutions are inv ited
avail themselves of our
services.
reserves.
ft
The
ft
ft
Recession Argument
Salomon Bros. & Hutzler
in¬
clined to think that the U. S. Gov¬
"Some observers abroad are
ernment may be led to
Dealers and. Underwriters
price of gold as an anti-recession
measure.
The direct benefit of
such an increase to American bus¬
iness would be minor for gold
mining is of rather negligible im-
of High'Grade
Members New York
raise the
SIXTY WALL STREET,
Philadelphia
Boston
NEW YORK 5, N. Y.
.
Pn
1
LTrl£?r'f\
Chicago
Cleveland
<v.n,
C
Securities
Stock Exchange
P.t
><
Rr»rn
61
and Financial Chronicle
The Commercial
22
(2734)
Small Business Today
And Wotld Events
reviews
Barnes
Of
-
To
American free enterprise economy
and strong because it
situation for
is vigorous
offers
favorable
a
busi¬
small
to
be
started
and
to
grow.
Small
nesses
business is
growing
not
—
disappearing.
There
are
small
more
businesses in
existence to¬
day than at
past.
Most
the
of
press and business pages of
popular press, perform a great
service to our country when you
the
point
tion of
d
m
firms
in
this
11
are
Small
Business
of
we
culture
and
perception
Benson's
If
economic
some
particularly in the
small
manufacturing
businesses
which are closely related to the
and
farmers
interdependence and unity of in¬
they have the combined
terest,
strength
observe
to
most
the
the
of
country,
outside of the metropoli¬
mainly
tan
in
businesses
small
and
that
in fact, flourishing
prospering at present, and for
areas, are,
curious
reason.
-
think of small busi¬
nesses
and their relation
to big
business as suppliers and dealers,
and frequently observe the inter¬
dependence between
large
and
small business.
However, except
in the metropolitan areas, most of
Usually,
the
small
we
businesses
the
across
country — the
retailers,
whole¬
salers, produce handlers, * imple¬
dealers
ment
and
small
banks-
closely related to the agricul¬
tural economy.
The farmers are
their
customers.
They
provide
are
markets
the
and
the
distribute
products of the farmers.
These
their
businesses
small
closest
ties
and
a
have
I
Loeb
New
address
Awards
York
by
Mr.
unity
Barnes
Presentation
City, June 10,
at
of
the
welfare.
especially happy to par¬
am
ticipate
I
of
meeting, because
in this
know
no
better way to per¬
petuate our Republic than to em¬
phasize the virtues of our free,
competitive enterprise system. We
constantly hear a lot of talk about
alien ideologies, about moving to
the left or the right, or getting
by
course.
so-called middle
the
through
-
Thank
under
the
there is no left¬
goodness,
American system
or
rightist or fence-walkings
middle-gfounder — simply
the
straight path founded upon the
ist
help .them
products and services
the Government, and offer new
to
technical and
on
that
and
four
the
In
.
ment
opportunity
sive
ideas
where
individual
is
for
is
no
are
liberal,
unlimited
most
progres¬
in
our
the rights of
paramount.
disgrace
to
aspire
INDUSTRIAL, PUBLIC UTILITY,
years
have
are
writers
and
MUNICIPAL
SECURITIES
on
for
recall
Mr.
Khrushchev's
people
now
p urcb ases?.
;;
reporters and interpreters of
economic
news,
you
must • be
finance.
and
the
As
wondering whether or not something in the nature of the Trojan
gen¬
Horse is in our midst.
now
looking to you
finance and business to
reads
who
events
occurring around the. world.
17,000 firms and individuals. These |
are
loans at business rates, and?
business
is
the
Everybody
newspapers
and
knows that Russia
economically into the
press
moving
,M'■ r
We do not
compete
with
private
lenders.
Banks have participated in twothey have to be repaid.
thirds of
help
to
of the smaller
our
banks
Unlisted
their customers.
serve
In
In reality, we:;'
loans.
our
many
cooperative program with
the
Department of Defense and
purchasing agencies ol
Government,
we
have had
re¬
civilian
served
to
exclusive
for
award
small
Public Utility
competitive
approxi¬
firms,
mately $2.7 billion in Government
There is
prime contracts.
the
companies.
have been
no
sub¬
Stocks
Our
nical
markets in
production
history.
Events and
ever
STOCK
EXCHANGE
(ASSOCIATE)
Each
is
today
greater
for
upon
under¬
been
re¬
munity,
his
Nation.
and
State,
unlisted
primary
utility
attractive to retail. Your in¬
"
to
:
required of the busi¬
nessman
of today is nothing less
than a comprehensive understand¬
ing of world events.
For most
American businessmen, this is a
new concept, a new rule.
partner, Harold H. Y'oung,
analyses pertaining to both listed and
utility
stocks.
Many
of
our
dealer
helpful. We would be glad
supply it to other retailing dealers
on
request.
What is
could
ago
much
of
even
a
successfully
the
world
MEMBERS NEW YORK STOCK EXCHANGE
few
ig¬
outside
All that
area.
Eastman Dillon, Union Securities & Co,
was
PHILADELPHIA
CHICAGO
EASTON
15 Broad
LOS ANGELES
required of him was, one might
say, one-dimensional vision. The
BALTIMORE
little
prise
world
of
his
enter¬
own
nessman
much
no
of
longer
today
so.
The busi¬
must
have
vision; the scope of
his interests is getting wider every
day.
mean
to
BOiding Green 9-3100'
jt
.
READING
imply that the
CARLISLE
SOUTHERN PINES
V:
LAS
VEGAS
ST. LOUIS
NEW HAVEN
RICHMOND
PITTSBURGH
NORFOLK
ITHACA
SHAMOK IN
TORONTO
GREENVILLE
SAN
MARINO
SAN
Private Wires to:
a
wider
I do not
TE LE PHON E:
BOSTON
NEW HAVEN
all that mattered.
was
Street, New York 5, N. Y.
PATERSON
HARTFORD
■
our
"Public Utilities Bulletin" with infor¬
friends have found this
his
even
'
«
That is
teletype N. Y. 1-344
are
fortnight
mation and
CLEVELAND
NEW YORK 5, N. Y.
Many
prepares a
time must transcend his com¬
his immediate
EXCHANGE
maintains
Business
of
businessman
quired of him before. His under¬
standing of the forces that affect
nore
YORK
Department
broad list of over-the-counter
change—is the order of the day,,
and it showns no signs of abating.
The businessman of
Laurence m. Marks & Co.
a
quiry is solicited regarding specilie issues.
of the
Change—abrupt
revolutionary period
a
Trading
stocks.
of us are caught up
Today, all
in
This
activities.
problems.
briefly summarizes our
world's
to
Additional thousands
given assistance in the
tech¬
solution of management and
years
you
correct inter¬
lion dollars in credit to more than
./
telephone hanover 2-9500
all
l'inance
to
interpret the far-reaching
has been in operation, we
approved about half a bil¬
gram
our
STREET,
looks to
their
and
Khrushchev's Recent Boast
We
businessmen,". Govern¬
officials,
erally
half
a
standing than has
WALL
community
facts
pretation.
significancc
happening in the world
Indeed,
financial assistance pro¬
our
called
48
bi<>
in the years ahead,
of business and
man¬
to most small firms.
World
NEW
mar¬
obtaining subcontracts from larger
have the
tem, ever devised by man. If our
system were not liberal, how could
the unequalcd economic growth of
this
nation
be
explained?
The
It
STOCK
upon1
the over-riding
course,
ness
the
to understand the
of what is
agerial problems that are common
The
MEMBERS
man
their
sell
business enterprise sys¬
We
Rule.
therefore
1058.
AMERICAN
Of
the merchandise he
con¬ .More and more,
liberal.system of government, and
Golden
Luncheon,
RAILROAD
and
a
sidy in price, however.
Many thousands of small firms
have also been assisted by us in
system
^An
protect and promote
to
their mutual
automotive industry, it is gratify¬
ing
perhaps
investments
kets.
produces must compete with mer¬
chandise
manufactured
abroad.
problems,
financing
information
agricultural workers, and the 30
working*constantly to strength-: million owners and employees ol
further., this important sector small businesses recognize their
curtailment,
a
million
15
the
Administration
economy.
While there is
American
urgent need for action
is
sturdiness of character.
in the
our
or
know,., many
you
as
which correction is
business;
upon
stantly underway, but for general, -businessmen "in this country are
over-all effect, I would say there, •going to look for markets abroad
'
small- -and
country
are
19. 1953
know, in the wake of these
political unheavals is an effect
of a; generation ago.
not so. If anything,
businessman of today
must,
correc¬ in many cases,
require
economic system.
are,
in
areas
small businesses owe a debt
gratitude to Secretary of Agri¬
of
ore
a
which
our
There
.
growths
malignant
out
situations
many
million
four
Wendell B. Barnes
in
time
any
the
en
Thursday, June
recent boast,
somewhat angrily,
by the for their products.
In the years ahead, among the to the West: "Whether you like it
Congress before it adjourns this
interest with the agricultural com¬
or not, history is on our side. We
summer, to benefit small business nations.of the Free World, there
munity.
When the farmers are in two major areas: taxes and is almost certain to be a period will bury you."
prosperous, the earnings of these
Well, history is not on his side,
The
labor-management relations. I am of expanding world trade.
small businesses improve. Recent¬
the
United
States
of
glad to note that the Congress is businessman of today must have because
ly, farm prices have been improv¬
making some progress in
both some understanding of world eco¬ America is living proof of the.
ing, and farmers in many areas of areas.
nomics, at least to the extent of invincibility of freedom over dic¬
the country have had increased
realizing that trade is a two-way tatorship. As for burying us, he
SBA Programs
earnings. The money the farmers
street.
If this Nation is going to has another guess coming. Isn't it
are
spending
has
brought in¬
•And
now,
a
word about the sell its products abroad, it must apparent that this means they in¬
creased
prosperity to the small
programs of the Small Business provide markets for the products tend economic competition with
businesses which serve them.
v;.
us
for world
Administration. The Agency was exported by other nations.
trade, in view of
There
are
great areas in the -established to help small business
Ht is in economic areas such as their activity in many areas of
country, particularly in the Mid¬ firms in all sections of the coun¬ t tills that you business and finan¬ the free world?
dle West, in which the only thing
What are the implications of his
try
to
help
themselves.
This cial news reporters can be of in¬
they know about the recession is Agency has no regulatory author¬ estimable value to the business¬ recent offer to buy billions of dol¬
what
they
read in the papers, ity—it is a 100% service organi¬ man. You not only report news, lars' worth of goods in the United
since they are enjoying increased zation.
but. also help interpret the news,
States, and suggesting that we ad¬
business from the farmers.
Thus,
We help small firms with their point the way, help the business¬ vance long-term credit to Russia
the
degree,
large
that you men
say
writers for the busi¬
ness
over
very
would
I
and women,
plan to buy latest products of private initia¬
and then use this transplanted industry—with slave-wage
labor—to undersell us in the world markets.
a
barnacles gather on
course,
seas.
areas
Kremlin planners
tive
.
great deal more about his day-to-day news stcry is the ef¬
own
business, about accounting, fort of the free world to under¬
inventory control, promotion, ad¬ stand and meet the moves of the
vertising, customer relations
n< rulers of Soviet Russia. We speak
the
cold
war.
In
all of its
host of subjects that did not much of
ramifications and forms, the
concern his grandfather at all.
effort
Whether he likes it or not, the of the Russian economic planners
businessman of today must also to penetrate and take over free
world markets presents a prob¬
be concerned with events beyond
the shores of this country.
For, lem for our free people. The busi¬
good ships—ships of state, as
well as the kind that traverse the
free world markets, Expresses skepticism about
their ability to do so and, also, their recent offer to buy
billions of dollars worth of American goods.
Asks whether
.
of
know
all
U.S.S.R. intends to penetrate and
world events, he points out
the
limited.
of strength and weak¬
nesses of small business, and the work of the Small Business
Administration. Turning to need for business to be aware of
take
.
As you
of today can afford
concerned with the wel¬
his
business, than
his
businessman
to be less
one
it—freedom un¬
the way we want
Washington, D. C.
Administrator
as
fare
Administration
Administrator, Small Business
long
as
acquires his wealth honestly and
with a decent regard for fairness counterpart
toward his fellow-man.
That is No, that is
BARNES*
By WENDELL B.
unlimited
are
opportunities
the
Here
wealth.
;
.
i
DIEGO
ESCOND1 DO
VENTURA
-
Number 5752
187
Volume
.
The Commercial and Financial Chronicle
.
.
(2735)
world .markets.
But; what
does this mean to us?
Here, your
and inter¬
free
leadership
writers
as
preters will be helpful.
and
men
lbok
women
to
of
one
rising
opportunities.'*
scientific
Mr. Krushchev trying to make the
ad¬
our
advancement
that
opening up opportunities at every
tossing this hand; the demand for new schools,
in the- form of hospitals, and the increasing pres¬
world
the
by
tempting bait to us
an order for machinery
during
Of
private initiative—of the
free enterprise system—and then
use this transplanted industry to
the
in
us
Russia
kets?
world
of
forced
work
to
for
of
compensation
plishment.
the
are
ness
-Let
•
personal
for
are
b
us
our
of
a
then,
Wall
the
;
Alsfyne, Noel
Street,
have yet known.
accom¬
Ingram is
&
.
on
busi¬
and finance all recognize this,
LOUIS, Mo.
now
Woods,
associated
Cortese,
members
of
and
R.
Brown
the ,New
Building,
York
with
as
have
their
52
City,
&
Stock
and
Midwest Stock Exchanges.
Mr.
partner
become
firm:
of
manager
A.
the
J.
Re¬
Department; Philip Byrne,
PINES,
Greene
was
Cortese,
Union
With
buy goods in this country.
as
reg¬
a
Joins Commonwealth Sees*
(Special to The Financial Chronicle)
formerly
a
Kupsenel
&
Co.
J.
Tobbe
has
Ohio
been
agreements
they stir
ways;.
in
up
trouble in
free world, and now,
suggested
that
the
behold, Tt is
send
we
them
Best Climate for Growth?
i v.,'
and
our
own
v
..
.'
.j-.c;
"j
/
...
"■.
.
,
_
-
- ■
.
..
.
\
•
General Telephone
•
domestic affairs, one
in the
Increased wage costs
big industries are largely
to consumers. However,
passed
on
annual
increases
taking
been
industry-wide
accompany
bargaining?;
up
in
have
wages
much
of the
sav¬
ings from improvements in tech¬
nology,
this
methods
production
materials.
How
much
continue?
race
labor
costs
from
and
longer
eliminate
international
cap
tion
home
at
us
trade, handi¬
us in the economic competi¬
with Soviet Russia, and per¬
haps force us into an isolationist
position?
Or
should,
increased
productivity be a necessary concommitant
to
Instead
thinking
of
increased
terms
of
begin
to-think
rely
of
in
we
talent"?
"man
System Will Grow
business
103% since 1951, has increased its
telephones 141%
in that time.
Silver Lake,
its
Wisconsin, in the
same
period, jumped
population 21.4%—its telephones 104.6%.
Tampa, Florida, reports 42.3%>
phones —in
more
That's
community
the informed
on you as
Port Lavaca, Texas, whose population has swelled
wages?
labor
"manpower," should
Our
The
of
"Look at the figures.
can
Will increased
more
people-83%
like time.
typical. But
will
mem¬
a
you
probably
wondering
are
what's significant about places like these.
bers of the business and financial
on these
important questions af¬
for enlightenment
press
and other
fecting the future of all of
! I raise these questions, not with
discouragement. I do not have the
slightest doubt that our free en¬
terprise system, a system based
opportunity
upon
the
for
It is
indi¬
vidual, will continue to grow and
grow
and grow.
But, it is not
going to be easy.
American businessmen who
other
to
serve
free
people
free
countries
.
have
Work cut out for them.
are
sion. They are the
in the
'
a"' * »*
•
"
These
they
localities with the
are
room
to hold America's tremendous expan¬
are
places where people and indus¬
finding
room
and
scope
unavailable
big cities,
A
/
•
are
are,
'
the
'
V;
areas
that
are
•••
•;
'
.
r
'
"growing places." And
mainly, in General Telephone Territory.
in
their
We have both the tools
As I see
it, our main problem is to main¬
tain our higher wages and higher
standard of
now
tries both
•
trying
simply that they
needed
us.
grow.
we
and the opportunity to
And by giving better service to more people,
think
our
prospects
are
like
money
in the bank.
living while compet¬
ing for
markets against countries
lower
wages
and
lower
With
standards of living.
},
Yes, I know that production per
Worker
and
other
into
but
it
it,
enter
factors
is
generally ac¬
cepted that Russia recently forced
cut in aluminum prices by offer¬
ing aluminum to European buyers
below American prices."
a
Let
us
not become
Russian
gloomy over
American
competition.
businessmen
are
not
afraid
of
competition.
They thrive on it.
This country has met all kinds of
competition in. war as well as in
peace,
lonial
and
our
times
people
have
As
President
since
survived
t
gone forward.
■
co¬
and
-
Eisenhower
America's
has
said, "In the long view, the ques¬
tion is not one of surmounting
.
.•♦
*
.
Territory
might ask how long improvements
in technology can match the de¬
mands of annual wage increases
which
to
Corp., 150 East Broad Street.
-
products of our factories and give
them time to pay for it. In brief,
to.trust them. Are we moving to¬
ward durable peace with honor,
and do not know it?
Or, are we
being lured into a trap?
Returning to our own shores
Theodore
Fastest-Growing Telephone System
the
staff of Commonwealth Securities
The
countless
—
added
Russian rulers have failed to keep
their
Securities
Stock Exchange.
How
involved can things become?
—
with.
CLEVELAND, Ohio — Paul A.
Lindsay is with Fulton Reid &
Co., Inc., Union Commerce Build¬
ing,
members
of
the
Midwest
relations or something else?
:
The suggestion also has been-,
made that the United States grant
credit to Russia with which to
C.
Fulton, Reid
sincere offer of friendly trade
a
N.
now
Co., 105 East Pennsylvania Ave.
COLUMBUS,
Cortese
is
(Special to The Financial Chronicle)
representative.
in
B.
Department,
Macey Kronsberg,
istered
with Yates, Heitner
Paul
individuals
with the Institutional
Theodore
—
Co.,
York
Exchange, announced that the fol¬
search
(Special to Tiie Financial Chrcnicle)
ST.
New
&
members of the New York
upward surge
that will dwarf
new
Yates, Heitner Adds
•
James
Eastman Dillon,
Noel
_
,
with
SOUTHERN
Alstyne,
competition, lowing
our
economy
we
timorous,
/
■
to meet
anything
the
fearful
forward
go
and usher in
However,
Well-informed writers
needed to judge whether this
is
of
(Special to The Financial Chronicle)
Van
Van
and, I trust,
was,
be
who
those
future.
.
dissemination
needs
really challenges, a part
free, competitive society.
they are solved, comes the
satisfaction
tests
or reward
determines.
What
changing times.
prob¬
never
will
never
for
are
our
When
whatever
Kremlin
our
they
mar¬
this, you
know, because her factory workers
are
course, many, many
arise in meeting the
lems
do
can
America
in
living.
factual
With Eastman Dillon
Three Join Staff of
knowledge.
'
of their standard of
of
undersell
of
and
courage
planning to buy the latest prod¬
:
ments
by virtually all of
our
people for a greater share of
all the things that are the measure
a
period when some industries are
hungry for orders?
:
Or, are the Kremlin planners
ucts
exerted
sure
happiness of all of our people
through your constructive com¬
are
XJnited States look puny and weak
before
pd contribute toward the growth
and
of
vancing productivity, our increas¬
ing population, the vast areas of
Is
you.
our
This is true because
Business¬
to
problems—but.
our
23.
'
•
24
(2736)
The Commercial and Financial Chronicle
Export
Dividends and Politics
prospects
for
dividend
firms
serves
Complications and considerations beyond the normal turn of
policies^ of British boards of
■
many
guise if
fortunate minority.
cisions
in
90%
not
<
outbid
to
exceptionally difficult them by more equalitarian taxa¬
just now.
From the tion and more nationalizations. *:
view of business pros¬
Right Dividend Policy
pects, there is
Directors of leading industrial
no means
of
knowing firms have to face the possibility
which way the that their industry will be on the
cat will jump. short list of those singled out for
'
sions
the
of
prices
are
yet
.there
are
;
an-*
ticipations of
further;
a
de¬
in
capital expenditure. On
the other hand, recent wage deci¬
sions foreshadow a resumption of
inflation, which in any case may?
be regarded as a political neces¬
sity during the year just before
the next general election.
this ground alone, boards
confronted
are
So
of
to be based
compulsory
a
tributed profits from 30% to 10%.
But can the firm afford to raise
dividend to
level
a
which
at
it might easily
become untenable
Boards of directors are
used, however, to such dilemmas.
Why the present situation is un¬
usual is because of the likelihood
of a Labour victory at the next
general election.
The
prices
at
to
current quotations,
acquisition is likely
on
to be based
the average
on
prices
quoted during the last few years.
It is tempting to take advantage
of the reduction of the tax on dis¬
its
virtually nonstop appreciation of
the equity holdings of the fortu¬
nate
minority.
This is liable to
.
influence
their
attitude
towards
If
an
of
a
Labour
industry is expected to be
nationalized outright then it is to
the interests of equity holders that
their equities should
appreciate
long before the change of regime,
in order to improve the average
price on which compensation for
their holdings would be based. To
that end it would be important to
the
dividend immediately,
raise
On
the
likely
probability
ment
other
that
hand, if it is
the
would
Labour
resort
to
more
Govern¬
"backdoor
the
dends, they may derive
comfort
from
the
some
that
over
as
inefficient
is
110
nationalized
industries which
loss.
Government
more
waste of
ammunition to raise the
others.
This
dividend
too
they will
even
is
one.
largely the fault
servative
held
of the Con¬
Governments that have
office since
1951.
Had
they
appear
the
to
very
ment
future Labour Government to
trial firms
re¬
where, more or less, the
previous Labour Government left
off in
for
1951.
the
As
favors
classes by the
it
of
is, competition
the
working
Conservatives will
might then
expedient to raise
considerably at the
Moreover,
the
the
at
boards
of
present
many
not be in
may
very
good position to raise their divi¬
dends, owing to the decline in
profit margins.
Wages are still
rising, and there is growing con¬
sumer
resistance to rising prices.
What they want
industries
ous
once
whose
of
to
nationalize.
of
point
He also
was
praised for his civic contributions
member of the
as
on
,?V
/
a
.
V.
,
/;■■"
Bond Club member, is
memorial to the late Arnold Grunigen, Jr.,. of J. Barth &
of the founders of. the club.
to George W.
to Charles R.
The
Co.j
view,
the
From
too,
before
years
Labour
concerned
a
few
the
ad¬
Government
being
national¬
few direc¬
ized.
It has been awarded in previous years
Davis, senior partner of Davis, Skaggs & Co. and
Blyth, President of Blyth & Co., Inc.
meeting concluded with the installation of officers for the
1953-1959 year.
The
new
President is Harvey J. Franklin, manager
of the municipal bond department, Merrill Lynch, Pierce, Fenner
& Smith. He succeeds Vernon J.
Gerald F.
is the
new
Kimball, partner of J. Barth & Co.
Brush, Vice-President of Brush, Slocumb & Co., Inc.,
Vice-President, succeeding' Mr. Franklin. Lawrence H.
Prager, Assistant Vice-President of Bank of America,
as
Secretary-Treasurer.
was
installed
He succeeds James A. Sanford of Blyth
& Co., Inc.
The Board
•
of
the
three
of Governors for the
new
1958-1959
year
is composed
officers, the outgoing President, Mr. Kimball,
Brantley M. Eubanks, partner of Stewart, Eubanks, Meyerson &
Co., Robert M. Bacon, E. F. Hutton & Co., Andrew E. Steen, As¬
sistant
Vice-President, American Trust Co., and Emmet K. Whit-
aker5 partner of Davis, Skaggs & Co.
Now With Laidlaw
Joins
BOSTON,
Mass. — Philip
F.
Mackey, Jr. is now with Laidlaw
& Co., 80 Federal Street.
Long & Meany
(Special to The Financial Chrgnicle)
(Special to The Financial Chronicle)
PALM
M.
Copp
BEACH, Fla.— Gordon
is now associated with
Long & Meaney of New York.
However,: very
equity holders are likely
to hope or pray for a few indif¬
With Russell Inv. Co.
With Jensen & Stromer
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
or
ferent
years
account
on
of
this
DENVER, Colo.
Couch is
ment
consideration.
KANSAS CITY, Mo.—James B.
Hubbard and William W.
Bantrup
have become affiliated with E. F.
Hutton & Co.,
Ill West Tenth
Street. Mr. Hubbard
more
was
with Harris, Upham &
now
—
Harry L. R.
with Russell Invest¬
Company, Boston Building.
MARYSVILLE, Calif.
S t
a n
p
h i 11
is
with
— Eugene
Jensen &
Stromer, 426 East Fifth Street.
Underwriters and Distributors
Railroad Securities
formerly
Co.
r
Joins
for
Equipment Trust Certificates
Dempsey-Tegeler
(Special to The Financial Chronicle)
than 100 YEARS
ST.
LOUIS, Mo.
Backer
has
joined
Dempsey-Tegeler
Locust
Street,
—
&
Mortgage Bonds
Harry S.
the
staff
Co.,
members
of
Guaranteed and Special Stocks
1000
of
the
Serial
New York and Midwest Stock Ex¬
Estabrook # Co.
15 STATE
STREET, BOSTON
Boston Telephone
New York
Hartford
James Fallon Adds
LOS
LAfayette 3-2400
Pouglikeepsie
H.
Providence
Members New 1 ork and Boston Stock
1
(Special to The Financial Chronicle)
Boston Teletype BS-288
Springfield
STROUD & COMPANY
ANGELES, Calif.—Charles
Evans
has
been
INCORPORATED
added
to
the
staff of James L. Fallon Co., 7305
Sunset Boulevard. Mr. Evans
Exchanges
Obligations
changes.
•
a
one
Two With Hutton
in NEW ENGLAND
as
advisory
(Special to The Financial Chronicle)
'Distribution
of
reduce the likelihood of the
may
firms
tors
Witter, partner
go
more
vent
made by Wendell W.
So it
indifferent
mo¬
indus¬
a
few
was
The trophy, awarded annually to
.
seems probable that
for the most prosper¬
industries when they begin
this
last moment.
not pursued semi-Socialistic
poli¬
cies it would be possible for a
sume
a
It
soon.
be
dividend
to be
a
a
The award
are
profits would offset the losses of
appear
is
now
presented the Arnold Grunigen, Jr.
Perpetual
cil, and Trustee of Franklin Hospital.
industries—
longer held by
Socialists. They have quite enough
—
and
of the Executive Committee of the San Francisco
Bay Area Coun¬
their
ket, then it might
nationalization"
board
the coal industry and the
railways
America
financing of the San Francisco Bay Area Rapid Transit
District; President and Director of San Francisco Stadium; member
wholesale nationalizations. Be¬
take
was
head of the San Francisco Chamber and
sides, the view that the State must
such
of
of large investment syndicates which underwrite state
and munici¬
involuntary action is calculated to
reduce the temptation to embark
on
Bank
regular meeting of the Bond Club at the Hotel St.
a
pal bond issues.
slight
fact
of
:,/Mr. Browne, who is manager of Bank of America's municipal
bond department, was cited for his professional service as
manager
forced by adverse
to cut their divi¬
circumstances
Vice-President
Dean Witter & Co. and Chairman of the Awards
Committee.
holding of equities.
running at
be
Francis.
are
by buying a con¬
trolling interest in the open mar¬
Socialistic than the last
Mr. Browne
Trophy at
willing to sacrifice their dividends
volved in
Browne,
was chosen
Investment Banker of the Year by the San Francisco
Bond Club.
for the sake of bringing home to
the masses that there is a risk in¬
But if firms
K.
President of the San Francisco Chamber of
Commerce,
porary setbacks apart—the politi¬
cal party which proposes to share
Government not later than in 1960
has to be envisaged. And it seems
certain
that
the
next
Labour
will
Alan
the Labour Party which promises
them, a share in the benefit of
industrial prosperity by means of
determined by legislation or
through the purchase of equities, out these benefits
among the elec¬
in the open market.
Even if the torate
by nationalizing equities is
take-over prices are fixed arti¬
likely to be at an advantage
ficially, they have to bear some
against the political party which
relation to Stock Exchange values.
proposes
to ensure the present
This means that it is to the in¬ holders to retain the
advantages.
terest of the present holders of This is
by no means the only con¬
sideration that is liable to influ¬
equities that the Stock Exchange
prices of their holdings should be ence the electorate, but it is a very
as high as possible when the La¬
important consideration.
bour Party assumes office.
It is, of course, difficult to imag¬
But
while open market purchases have ine many firms which would be
on
dilemma.
next year?
of the British electorate does
possess
The
after' 1960.
equities
di¬
with
'
be
to come, and
Paul Einzig
of
over
fall in raw
material
;
rectors
and
now
For at least
taking the equities in national
ownership.
So long as
the overwhelming
has stood up question is, what is the right divi-'
majority of firms continues to pay
dend policy to pursue?
w ell
to
the
National- out bigger and
bigger dividends,
recession, but ization may take place either and so long as the Stock
Exchange
the repercus¬ through ? the ..compulsory
take¬ quotations continue to rise—tem¬
nationalization
So far Britain
cline
number of
a
between
with spite at the thought of the
nonstop rise of dividends and in
Socialists
are
of
cuts
any equities.
Human
nature being what it is, a large
proportion of them are inclined to
turn green with envy or yellow
voters
Britain
point
blCssing in dis¬
a
witnessed
wc
the general election.
;<
the
compel
higher
pay
political point of view it
dividend
for Labor if they see non-stop
appreciation of the equity holdings of a
LONDON, Eng.— Dividend de¬
From a
would be indeed
would be envious enough to vote
rise in dividends and
re¬
Might Make Voters Envious
policy will encourage nationalization by a future Labor Gov¬
ernment looking for profitable industries to offset moneyand, further, whether
1958
by
even
adequate
being able to
19
dividends in spite of lower profits.
U
/;
, ,
•
»• " ■ /
•
..
•
';
tively untouched British economy, the economist points out,
but there is also the problem of whether a liberal dividend
ones
have
Thursday June
.
•
directors are uncovered by Dr. Einzig.
It is not only not
knowing whether U. S. A. recession will affect the still rela¬
losing nationalized
for
increases,
which
.
Alan K. Browne Receives Award
promising/ This may not appear,
therefore, to be the right moment
By PAUL EINZIG
events, affecting stock dividend
too
none
are
.
formerly
with
California
was
PHILADELPHIA 9
NEW
YORK
PITTSBURGH
In¬
vestors.
V
ALLENTOWN
LANCASTER
Number 5752
187
Volume
.
.
The Commercial and Financial
Chronicle
.
(2737)
work.
The Countdown to Oblivion
7
By
ROBERT
R.
GROS*
in
most
against public
now
public's indifference
union leaders?"
Among senior
high school students surveyed at
power
nothing but endless
pontificating talk, talk, talk within the industry, paved with
good intentions but marked by obvious failure to talk to and
with the people in simple, clear language. Mr, Gros doubts if
tax angle copy has ever impressed a single consumer not
otherwise influenced; praises E.C.A.P., and
"Reddy Kilowatt"
as the only successful effort to
date; advises we take a lesson
from Billy Graham and reach the non-believers, and
give the
right public relations man authority equal to his responsibility.
as
Purdue
problems
■
Allow
this immediate
me
So
tion:
long
as
.
Devil,
Where
.
time!
our
asser-
just sit and
we
talk about Old Man
wasting
may be just as tough
production and sales.
.,
we are
,
would
soul of
the
Jabez
ners
and
0
.
.,
terms,
.
the
in
word
•—a
watch
.
twmI
...
plainest possible
in
the
Stone;
■
too
few are
hearing
even
let
Are
us
worried
or
um'
while
It's
It
ubiquitous, often amusing
ancl always clearly understand-
of
on
ab*e
our
industry is
be
when our
prose is forgotshocker
a
in
1 Advertising Convention last month
quit
called institutional advertising,
Indeed the only utility advertis-
they
are
JjS they remembered
&
promoting
promuimg
power.
at all
symbol
was
Reddy Kilowatt, who was pegged
'thoroughly in their memories as
appropriate
w?rm,
of'
if
today
a
i:el l
n
'Webster
had
g
i
devoted
his
all
ener-
there
dis¬
the
to
e s
cussing
I've
And
Devil with his
KpPn
soul
would
be
from
at
mi<rhtv fpw
the
anrl
battles
far
where
to take
so-called
record.
have
hpfwppn
were
we
customers
"public
away
power."
that
one
out All Stevens County, Washin
WVWA1VJ
ington, a couple of years ago, we
electric
our
vwv
WVVV
-
where
square
of
times,
Fighting Kinsey Robinson racked
up
UJP
right'
soul
look
Except for the real good
Robert R. Gros
would be! And
and
let's
trying
that's where it
that's
thousand
a
heart
utility
business is
II
J
VAMA*
-
haven't put a
real big inning up
the scoreboard in 15 years. And
going to be if we don't/ 0n
get our $200 suit-bottoms off our for
every Hell's Canyon there have
$300 swivel-chairs and go out and
been at least two
the
battle
field
of
We
Devil
the
on
playing
this
timately
Devil.
industry
acquainted
We
know
in¬
are
with
him
by
Yes, indeed
our
•
.
advancing
«AS"a Ana. just
A
7 ,re?
name.
c-t
„
Socialism.
ages
^+riv0rpnTi?U+ n7\
talk,
talk, talk to
of youth
This
half
is
we
the
meetings
tended
world
every
this
leagues.
series
intra
one
of
our
On such occasions
States
in
even
the
among
most
those
conservative
communities—there is
own
we
introspective.
are
We
and view
system of in-
lege graduates of 1958; then decide
whether I
Talk
who
overstate
with
the
the
next
the
bar
in
problem,
100 lawyers
Clergymen ordained in your service territories, and see how well
,,,
.
admonish
of
this
•r-
each
and
u
f
Convention, Boston, Mass., June ii, 1958.
our
pass
detractors
have
their
me
put
man
whale
plained that
as
more
now,
more
the
economic
meddlers
Mem hers
'
page 39
*
<-A
continuing interest in the followmg
Utility Stock s=
Arkansas Western Gas
18;
Public Service of New Mexico
and
i
j
Southern Nevada Power
could
years
of
become
countdown.
the
TO
our
OBLIVION,
Ancj
^at
the
let's
United Utilities
j
They
j
could be the declining cycle of
j
digits along an oak-paneled, deep- j
carpeted, genteel COUNTDOWN j
years
INQUIRIES INVITED
A limited number of copies of our
Impact of Industrial Recession
are
not
delude
available
to
on
59-page study entitled—^"The
Electric Utility Companies"
at $25 per
copy.
institutions and investors
ourselves
presently stand at ten—at
top of the countdown.
The
we
fearful
statistic—that
America's
is
power
fourth
a
of
Government
generated—means that the echo of
shall
that
and
us
in
convenes
1959,
rolled
have
not
our
that by
sure
is
seven
be¬
half
Members New York Stock Exchange
destiny.
the time
our enemy
^
^
JK
S,
"natural"
a
seven.
two
counts
more
Then
we
tip the
should
Telephone WHitehall 3-7600
Corporate Teletype: NY 1-865
•
Municipal Teletype: NY 1-1691
Stock Exchange
American
I
could.
we
firmest,
the
only
used to be
Now I know
it?
stop
we
confident
strongest,
can
turn
the
tide
of
public
opinion in our favor. We can do
it, but not with the caliber of re¬
sults we
ar6
achieving through
efforts
That
today.
obvious to us all.
our
must
be
We have direct wires to the
Albany
Beverly Hills
Cleveland
First,
60
Broadway
Telephone:
Y ork 4
WHitehall 3-2800
Teletype:
NY 1-3433
Fullerton
clutter
agement
Indianapolis
Los Angeles
Greenwood
up
Nashville
our
public
rela¬
We ought to recog¬
Pittsburgh
IIarrisburg
St. Louis
St. Paul
San Francisco
Syracuse
Santa Ana
Toronto
Washington
Houston
Kansas City!
Minneapolis
Montgomery
Philadelphia
New Orleans
Portland, Ore.
Durham
Fayettevili.e, N. C.
Joplin
Jackson
Mvlone
Cincinnati
Detroit
we've got to do
quit pontificating.
We must
stop blindly depending upon
"Spirit of the Public Service" and
"Tradition
of
Loyalty"
slogans
nize that
Des Moines
Fayettevili.e, Ark.
Grand Rapids
Huntington
is
that
Denver
Baltimore
Chicago
Burlington
Quit Pontificating
tions efforts.
Francisco and Other Cities
Dallas
following cities:
Ash evillf.
Albuquerque
Boston
Farmington, N. M.
Laurel
Pacific Coast Stock Exchange
New
a
=Public
Muskogee
San
on
v'v'
s
subtle and insidious—yet it can be
yes,
The first thing
Teletype: CG 1089
far less in-
Public Service of North Carolina
our
most hard-headed and realistic ef¬
Unlisted Trading Department
2-6100
Continued
«
j
j
fort
FRanklin
are
c'inec' toward private ownership
than men. And why haven't we
'
birthright away.
Indeed,
children will help them. Ah,
the venom of Socialism is
that
Telephone:
of
they discovered that
us,
women, bless 'em,
PY
ex-
>,■•••
of
.or
he the minority!
and Other Securities
Chicago 3
•.
re¬
\
Can
120 So. La Salle St.
opinion surveys
„
business
ownership
uw..c,s,uP
To
the.amazement
chil-
Only
Underwriters and Distributors of Public Utility
Stock Exchange
>
ac-
dren's
balance of power.
Established 1893
Midwest Stock Exchange
•.
h^h!
ho
he
vnim
voice
do
we
ceptance of reality, then the here-
tics,
public
garding
genera-
If
the Socialists will take
me
motorist possibly
as
industry
tions—three at the most.
EEI
New Yoke
,.
hi<?
his
no
We have
our
than two
Let's make
Co*
the
know it today cannot sur-
we
"in"earthier"ie^r.Those^ble
1
More
or
conviction
my
risen in the throats of
&
*
told
directly
more
men,
men.
Dunning and
Dwight Van
Meter, studied the breakdown of
^
man
story
and dedicated advertising
advertising
when the ircount
others
bluntly as I can. If we don't do
something about this situation of
hind
INCORPORATED
'
recovered
iccoveied
a
eight is dying in the distance
A* G* Becker
d
our
Ed
bother
a
Generations
your
done
t
tell
yoian electric company utilities.
"Ismost of
■..>
Sees the End in Two
These
me?
Please go
out and interview a hundred coldoubt
you
^
^
centive capitalism.
Do
n
"dverUsing
_■
P
about it.
more
t
^
An
™
and
at-
a Maiden{orra Bra ad
m
t
must
i
under^nXbl™ and
'
as
fatal.
the American
nA* nu^Edbon'''hkHc inSitS'
We
aware
lot
our
be-
distress.
ourselves
see
us"—and then to do
a
no substanthought that government ownership of utilities is inconsistent
tial
state;
then assess the position of our industry.
Chat with the next 100
other, "be
77
has at-
us
usually note with alarm
26th
after
company
-
in
year
pathologically
re-
again.
are
hundred
a
with
waYs
of
with
ourselves.
Well, welcome to the class
union. Here
"to
ways
see
not respond with hard-headed
United
recognizes
anything evil about public power,
jn
generati0n now reaching
reared
is
them
vive
the
simpk.
we
say
dicate that the great mass of the
electric power consuming public
SGX asn P1C adult-hood —
sex, ail we
rt
hke
nothing to in-
TTni«o
•
not ignore through wishful think">«• Nor am I presumptuously
fmger-pomtmg, without also indictniginysclf. But I urge you
and intend myself to strive al-
public opinion
The record shows
reason
the
in
know his
we
,
.
Today?
a
but
other way
I must because I earnestly believe
that they barometer facts we dare
the
Who Sees Evil in Public Power
the
my conscience thoughts tractive as
not l0!ce'me .
sacb
other fronts.
our
All We Ever Do Is Talk,
Talk, Talk
t
on
it
and say such things. But
Let
pseudonym: Socialism.
A+
reverses
giveaway;
any
believes
lor.cc me l°
purgatory.
in
is
public
has eveiy last one of you.
those"
in
burning right
square in Hell,
*
it
Since the war, our victories
Jabez
Stone's
so
But
friends?
own
done
Potsdam
Salt Lake City
Santa Fe
Tulsa
Whittier
San Antonio
Spartanburg
Seattle
Utica
Phoenix
Rome, N. Y.
Rock Island
Victoria, Tex.
Wichita
the employee and man¬
attitudes
that
go
with
.
remembered
.
*
D
'
and
It has been proved that our
such subjects as TVA are
believe
public
of
corporate-toned
ten*
We heard
g0n
them
symbol
usually
garbled by intra-ihdustfy jarthat many people who read
so
;
the percentage of
public power capacity rises and
ours
diminishes, we are success-
advertising job is not hopeHere's an example
on the Plus side—Reddy Kilowatt,
advertise-' whtre a Panel of college students
nobody but we and our declared that none of them had
directors can
under- been attracted to any of our so-
speeches
boards
stand.
ads
Our
Pittsburgh at the Public Utilities
to
us
and
less» though-
,
for
Reddy Kilowatt
„
instead
'
past-time
writing
ments that
anybody
people
he impressed
;That
pontificating
completely earthly Let'*
to and with
0f just at them. :
so
own industry?
but it hasnt. i
go
v
ECAP
for
talk
to think that this fact has
j
And
of
any
Praise
power
more
us
^
o
A1_
feels wonderful, but
Precisely nobody,
90% of people—and
than enough votes to
win any election.
in tolace of
lofty
-
jourselves too much. And today,
nearly one in four among America s ; kilowatts
is generated by
•Government.
.
man
far
:
it
When he flips the switch he expects the
lights to come on *
And
they
do!
That's
service
economic: that's
■
.
nn
•V'* ^ } feel-better if the
Sas? ls sta^ed fully.. lam sure he
have
in
th.
/
<<r
service.
the
say on the perils of
We've been talking to
Devil hfhSrf °1utsideu°ur
every
that
for
we
Socialism.
naive as
i
We castigate Old
-.
Socialism
-
Plainly, far,
We expose the sin
deplore the
them.
on
said
bad
eliminate
-
frightened
of that."
ware
is
heeding—or perhaps
»
,
would
poor
problems.
engineering,
as
most
year,
business
"What's
it
«.hlA
to'offer?
facts
private
country; half thought that "taking
from the rich and
giving to the: enough
Blames utilities for ineffectiveness of P. R. program and
points
P* R;
last
corporate
earthly
me?"
we
We must recognize this
unhappy
truth:
To the
average customer
there is not a bit of
"difference
between public and
or
dismissing the fight waged until
out
provable,
for
improved living
business, government
—
stratosphere when
reid
to remember it
an
upper
toward
standards
could
offensive weapon. Whv use
intangibles that float around the
survey, business ran a poor third
on the
question: "Who contributes
halting the count¬
oblivion/' California utility executive declares
encroachment and
as
dont overlook the housewives.
In a recent
Opinion Research
"We can't afford to waste any more time in
our own
them
form a kind of Maginot
policy-line utterly without value
your city. Yes, and the small
businessmen and the farmers—and
Vice-Prcsiclent, Pacific Gas and Electric Company
San Francisco, Calif.
down to
Next, check with the teach-
in
ers
25
•I:*®
I
•
and Financial Chronicle .".
The Commercial
.
26
.
Thursday, June
19, 1958
(2738)
E3fi>ert, Predictions
impressive amount of research and * dustry; will jhave spent- aboii.t i$U0;
%:;
development done both 5 through ^million on i this program.
qxt .w ;.Thereyiri'; a'nutshell is: our im«*
the; AEC and private industry has year the investment will ,be_ ♦.I11- mediate task. *We must not only
TodayV Ch illenge, Opp»itnnity
By ELMER L.
LINDSETH*
,
^
r
Challenges and opportunities
.generating capacity of one and a
half million kilowatts.
b'.These are impressive figures,
electric power, propulsion, testing, However, I want to stress that the
research, production and training; reali value of this country s^.nu-reactors either completed, undel' clear power program.-cannot be
construction, or in the pluming measured in dollars or \in kilostage.
y
;
•
watts; Other countries -—Britain
Eighty-eight of those—again as and Russia, for example—can also
inumber of American nuclear,;re-
Company
President, The Cleveland Electric Illuminating
Cleveland, Ohio
'actors
.
encompassed in the inexorable
approach of competitive nuclear power, according to Cleveland
utility head, cannot be gainsayed or ignored. Nor, for that mat¬
ter, can the five inherent major impact-problems confronting
the utility industry. What industry can do—now, today and
tomorrow—is outlined ,by Mr. Lindseth who is firmly con¬
.
.
of nuclear power will be here in
significant effects upon American electrical
power industry. Author finds our investor-owned electric utili¬
ties are ahead in nuclear power program in the world; notes
vinced that large amounts
.
projects currently underway by our
and
a
week
other
booklet
a
entitled
To Outer Space."
The.
makes
ness
years
ago,
booklet
a
a
sci¬
but
on
an
Elmer
Today there
satellites
submarines
impressive
......
the edge of -space;
on
into
dropped
/
*
-
,
powered tand
that
concluded
Lindsetn
homes
and
industry; • radar in daily
and people watch¬
ing television in. Bangkok, Mur¬
commercial use;
mansk, and Reykjavik.
technological
—
our
energy
ticular
has
happening
as
20
years
"ago.
Yet,
those changes are, they
are
a
mere
foretaste of-what will
almost
certainly
during
happen
the next 20 years.
change
even
is
accelerating.
In ^this
events,
stand
For the rate of
.continuing — possibly
*An
the
address
by
Annual
Convention,
.
.
place
Act which first al-
will
yield richer dividends of inknow-how,
and ex-
perience than will a program ded-
Act stated,
that, "It is
declared to be the policy of
icated to kilowatts alone.
without
•
IV
'
..
nuclear
S**
f ~
S
private
a
That
fbr
a°d
p
enterprise.
was
.
than
less
four
has
:
already been established as prac-
"tical and safe. The next step is to
y
take lt:out o£ the
year?, puf
;
considers
position to know who
it'totally unjustified is
F. Libby, scientific
of
the Atomic Energy
a
Willard
Dr.
member
Commission. "America," he stated
recently,
,
'
^
/niPt„.rp'mf
pxf>p]1pnf
bas a technological development
portended such' far-reaching economic, social, and political imP»cts< ; ty- : :
' 3 ; i'
How; - completely are ;we pre-
laboratory and
jf jn the marketplace
niir
ato£ic enersv^earcir ahd^-
program
-
One in
?
nificant effects on the American
electric power industry. Of this
you may be .sure./For never before in the history of our industry
must: be to make nuclear power
economically competitive. It has
Since that date the industry i
launched
a
comprehensive
ago.
!'
•
reservation}
or
is going to come,
And it will have
be/here.
goal, of course,
has
out
hedging
power
.
.
pi0™'o!"
America's
in par¬
singled
of
in this
room
Lindseth
before
us
Mr.
Electric
Edison
Insti¬
Boston, Mass., June 9,
1958.
Pared to meet the impacts that
fuHy competitive muclear;; power
^
will bring? By .Vfully'V.cpmpetiNuclear tive I mean : nuclear power com.have had the invaluable coopera- R
f
^ Petitive with fossil ifuels in all
Hon and 'participation of equip/ '
wlm^ave not^eadTf l wtmhl Uke Pal'fs ' Of the country, including
ment manufacturers, nther-Ameri-l
jy ° X
^
^ today's lowest .fuel cost areas, j
can industries,
the Congress, .and
/kdustrv's^nuclear cowernrberSm^ • How comprehensive, are our
"the Atomic Energy Commission.; iRRLJ flTRS, ^
R ^
plans—those of us who have spent
arid?ProsDecty
"^puhlish&4rf
"
our
"holds
an
absolutely
positioni"un the
HI
SSSSSHf
commanding
I
opment.
That
view was reinforced
■
in
a
report from the so-called "Three
Wige Men" of Euratom, the nu¬
clear federation of six European
countries.
These
European
ex¬
perts, after a world-wide study of
atomic developments, stated: "An
nounced.
These
and
working lives in this business
to
public
the
whom
reactors
are
•
these
of
a
comparative study
on
AEC;
Electric
tion
are
third,
the
are
sible
of
two
to
and '
economic
the
97 companies
General
pos-
h
re-
,
.
\
f_UKeiy 10 De
successful. The Task Force recom_
mends further research and develunder construe-
contracted for,
opmeiit
along
variety
a
of
lines
„
Carl M.
on
Request
or
are
remaining six
are
while >an(j construction
in the plan-
.
Investment
&
Co.
Wire
OF
NEW YORK 5,
TIIE
LEADING
System
to
NEW
STOCK
to
the
YORK
AND
STOCK
EXCHANGE
COMMODITY
,
The
reaetion
concept
of atomic
caught
the public
and° in so doing it
great deal of confu-
has
power
rmagfnatlon,
led to a
has
raneinff
of additional
\n
ei7P
frnm
re-
PY
*
I
N. Y.
*
EXCHANGES
throughout the U. S. and Canada.
For
Many Years We Have Specialized In The
Underwriting
and U. S.
America's
trie
utilities
nuclear
are
power
counterpart
Of
Distribution
—
Trading
Sound Public Utility Securities
accom¬
are
in¬
certainly show that
investor
—
i
S. R.
projects here.
They are detailed in an
panying table for all who
terested. They
1
con-
plants. That
Compares Our Progress With
I won't list those
Branch Offices, Correspondents and their
connections in 100 Cities
lead
That in U. K.
Securities
42 WALL STREET
OTHER
doubt
brings the total to 27 nuclear proj¬
ects, in which 123 utility com-'
panics are participating.
,
Underwriters and Distributors of
MEMBERS
no
struction of additional
Loeb, Rhoades
these
Answers Popularly Held Fallacies
First 0f these impacts is public
1
will
Copy
industrial
V
'.
identify the type of
h-
t
Company.
are
iw r
Force believes that it is not
owned by;;
by
iV
^
our
on
companies? On our industry?
the
-geography ;of'the nation?
,xLet's ; examine some of
in this way, and I quote: "The'Task/impacts.; ;.
; .;
•
'
<
investor-owned
plants
have
will
development
own
,0n
sion.si A number of fallacies have
-gained widespread currency;
ning or development stages.
° s
g g ; n tsJze from ex" many people today believe things
In addition, there are 12 morePerimental
unit? to full-scale wbjcb jUSt aren't so.
research, development, and study power producers as warranted by
one common fallacy is the belief that nuclear power will someprojects under way, some of which * advances in the art."
'l
1
Electric Utilities
on
projects
on
an" ??i:>e'i
.
Chairman,, James ,F,
The report sums up;the picture
.
The reactors in
three
.Another six
giving extensive data
-
operation today producing power
the
prepared
r
_
Three
;
.a.fd ^to its ChabmSv^me^K
owned by the Utilities
concerned.
these
Private
may
seven','SST analyzed all the impacts this new
types of reactors. In" 12.
of the 15 projects, involving Six
of the seven reactor types,
the
systems
We have
embrace
different
being utilized
AND
capacity
United States that
the? Sg0 much for the record. What and in large amounts. Twenty
development, use, and control; of about the future?
'%/■.
: years from now, it will definitely
program,
been
installed
total
our
well be atomic. And since
nuclear plants can be expected to
have a high load factor, that 5%
may
be supplying as much as
llM% of the kilowatthours generated.
;,
Predictions as to * the time of
reaching specific amounts of nuclear kilowatthour output are of
necessity uncertain. But one im*
portant
fact can be predicted
formation,
The
power.
15%.
may
will .remember,
the
have
as
of
be qual-
ity-oriented, rather than quantityoriented. And so, by concentrating
on research and development of a
to build and ;own facilicivilian development of
and
On April 1 of this year Philip
Sporn predicted that by 1975, 5%
'
•
program can
embracing research, de- ^ivMbbmont
Let's take a few minutes to look
velopment, ;and construction Tof
e
at the record and see how justified
both
prototype and.-^large^scale:
ar Power
this criticism really is,
plants,'covering a wide-range rof,
•"•••••
-reactor types.. In this program, we
H
^ Task-
realities
out; the split world and the
26th
tute
current
overriding
split atom. All of
.
-
our
where between 5
do
world-wide field of nuclear devel¬
onrushing
two
and
country
second
nation.
atomic
••
V, Not one of these phenomena was
startling
nuclear
you
in this country
lighted by nuclear fission; com¬
special criticism,
puters solving problems for busw
ness
interna¬
us
for
at Russia's re¬
achievements—ad¬
scientific
mittedly
the
States.
Thus
looked
have
cent
"
are
some
are
who
the Presiof
ties
national prestige.
which to hang
There
introduction
dent
those
the
lowed
problems. The atom, even
in its peaceful uses, has become an
instrument of world rivalry, a peg.
ington, D. C."
United
of
some
not have'.
prestige
many—is the one
countries
other
most
are
proportion of that
output g e n e r a te d in; nuclear
plants, they said,'may be 'some-
progress , with variety of reactor types, we have
dates -from :• 1954/ built up a broad-based, diversified
Congress passed .the nuclear power program—one that
Atomic Energy
of the root
one
that, which
of total output
reached,; the
power*
when
tional
House, Wash¬
oy
of
causes
as
its publisher
"The White
carried
because it is
# predictions
industry's
atomic
not
only because of its basic techno¬
logical importance to our industry,
bouse. But this
It
Our
problems of the day.
split atom affects us
The
fiction
showed
inter¬
and
ideological,
mate promise for the future or
designed to produce electricity in
a civilian power plant. fHow does
America stand in civilian power?
national
publishing
one
in the minds of
the
with
citizens
to stand for atomic
seems
busi-,
than usually
more
us
as
political,
have
borne the im¬
print of
concerned
j.
•
kind
the
us—and
concerns
affects us be¬
split world
.
with that title
ence
not.
Wein
America don't need
atomic;, kilowatts right now. y?e
eminent
position • is universally caii produce all the power we can
conceded.
However, the kind of use more cheaply with convenpower reactor that more directly tional fuels, which we have, and
these
by
the very nature of our
cause
;
affected
especially
Electric Tower.
;
i
; -
V
In;; nuclear ^development
"naval propulsioii, America's pre-
quality
our
two realities.
was
"Introduction
published
would
-
more in information, know-how
and experience.
•;
;
are
Twenty
.
approach will yield
;
The
States
tial expenditures of •manpower
effort, and /money from the in*
dustry, and a good deal of Assist*
ance,
financial; and otherwise"
from the government,
The Atomic Industrial Forum in
January of ;this year foresaw si#
million kilowatts of nuclear power
capacity in the U/ S; in 1968—10
years hence—providing economieaiiy competitive nuclear power
js achieved by 1964.
The McKinney Panel in Jami-*
ox
quantity oriented
are
kilowatt needs.
to meet immediate atomic
oriented
and
government programs
are
Moreover, we must face the fact
that bringing the cost of nuclear
power down to a competitive
level will demand very substan-»
;
alone but should include the fact
in investment and output
that theirs
•
be measured
differences with U. K. and U. S. S. R. should not
point:'to
1957—were* power re-
actors, either for propulsion or for:, and.* electrical
electrical generation.. Ad m ir a1 programs are
industry add up to $520
half kilowatts; and points out that
nuclear power in reasonable,time
substantial investment
output. J But r. their
different* in nature
Lewis L. Strauss, Chairman of the from ours.
For one thing, they
AEC, has said, "This total of * 88 are entirely government programs,
power reactors represents a pro- For another, and more significant
gram which, to our knowledge,'is ^perhaps,
they, are quantity-orinot
approached
by; any other ented. That is, they are aimed at
country, either in performance or producing power in large amounts
planning."
*
'
' ''i"'
by' whatever atomic method has ary, 1956, predicted nuclear caV
J,% * " ti Proven feasible today,' no matter pacity of l'rom five to nine mil*
Where Do We^ Stand. ^ir Nuclear ? whether that method; offers jultir lion kilowatts in 1970. By 1975
at year-end
twenty years with
million involving one
That 'figure' in-
237.
was
•eludes reactors for allpurposes—,
-
owned
embarked
program
anywhere
elec- '
on
without
in
Boenning
Members: Philadelphia-Baltimore
&
Co.
Stock Exchange; American
Stock Exchange
a
1529 Walnut Str?et—PHILADELPHIA 2, PA.
Bell System
the ]
world.
By the end of this year, the in-
LOcust 8-0900
PH
Teletype
30
New York
Telephone
COrtlandt 7-1200
'•
Number 5752
Volume; 187
,
.
.
The Commercial and Financial Chronicle
(2739)
as' "free as the air"—be
to meter." It is amaz¬
be
day
"too cheap
ing
how many people Yfail to
realize that even if nuclear plants
,
be built for. nothing, even
nuclear fuels :were free, it
would still cost money to provide
electric service.
;
;
Another fallacy is the belief
too
to
soon
.
cheap nuclear
,
around the corner,"
power is "just
We
do have
nuclear power in
America. But why doesn't every¬
one in America have it?
What's
the holdup? This fallacy, like the
and
where
opportunities
.
*Y\Y; vn
if.
abundant
just
problems, fuel delivery problems,
or
coal piles, will have a
higher
will; lie, and what- our solutions,; degree of acceptance by the pub¬
may be. YrY'Y
■ vY-'Y.-:"VY- .*:Y;
lic; in large urban areas.
v.
could
that
examine
those problems
Y Change
,
■
A
third
competitive
be
on
our
important
nuclear
own
power
power
vj-YY YVY atomic
impact
of
will
po.wer
system
by
new
order
of
things
will
importantly affect the choice
locations
plants
for
too.
our
Such
own
of
power
factors
fuel
as
also
is
There
fallacy
the
that
government could do a better
job
pollution
be * the
problems will cease to
determinants.
The .con¬
trolling
;
factors
will
be
that
competitive nuclear
first be achieved by
factor
a
size
now
may
conventional
To
more.
The
likely
seems
generating units or plants
larger than our largest cur¬
much
rent
en¬
previous one, stems from failure
supply, delivery, and atmospheric
to understand the cost story.
the
also
Y;: generally
Engineering and
Economics
gineering and economics.
v
It
;
and
in
we
and
plants,
fueled, is already con¬
stantly upward. But conceivably,
supersized
nuclear
plants
may
so
pacity
on
sites,
into being
can
before their
ca¬
be justified or absorbed
individual power systems.
forth.
networks
will
problems having
It is high time that
vastly raise
areas.
however
come
These
associated
do with interchange
arrange¬
ments, joint ownership of facili¬
ties, standby capacity, operating
and power
dispatching, pooled re¬
serves,
transmission
rights-ofway, ultra-high-capacity switch¬
ing and transformation facilities,
or
units
Certainly 345 kv will be
to
three
or
kv.
raise
the trend
sure,
of : both
possibly
ones,
of. two
be
GOO
required.
27
they will be relatively
untried,
new and
shorter-lived
be
may
than today's.
Likelihood of early obsolescence
will require 'more adequate de¬
preciation charges. Research and
development will continue to ab¬
sorb
the
much
more
money than is
today with conventional
and this money must be
case
power,
recovered.
Because
the
ratio
of
sights in these fixed costs to operating costs will
YYYyY Y-Y.Y : YYY;YYY ;Y be higher, capital structures
may
our
■
VJH
■ be
r
Financing
altered.
Y' The
*
The fourth major impact on our
industry will be in the
of
area
financing.
.
problem
of
/^;;Y
economic
de-
preciaton will be intensified. Spe¬
cial
be
depreciation
required.
incentives
may
Greater capital
in¬
of our nuclear power pro¬
Y The Y answer
might
well
be
Nuclear plants will require vestment wiU require higher de¬
proximity to load, and availability
Two lines of reasoning are
of condensing .water.
multi-company power pools or higher investment ratios per unit mand charges in our irate struc¬
current here — one international,
These
nuclear
power
plants, transmission networks, probably output than today's fossil-fueled tures; more ratchets; minimum
the other domestic.
gram.
Y
there
Internationally,
less
over
concern
is need¬
country's
our
with
no
attendant
air
pollution
at
ultra
high voltage,
say
500
to
plants.
The
early
Y
because
ones,
Continued
on
A number of people—
prestige;
them many long-time pub-
among
advocates — argue that
".crash program of largescale
government
reactors
can
maintain our world position.
lie power
only
a
though
Unsound
claims
these
be, we as an industry can¬
not merely dismiss them. Nuclear
may
power is more than a
cal development; it is
technologi¬
a military
political weapon in the cold
As an industry, we have
been thrust, however reluctantly,
and
war.
the international stage.
on
the
domestic
misguided
citizens
heed to the
socialized
On
front,
many
paying
are
power
pro¬
ponents, who see in nuclear power
a chance to further the national^
zation
of this
country's power
industry.
.
,
,Y
r.
Public opinion has always been
But it has never
important as it is today.
important to us.
been
as
We need as never before the un¬
derstanding
support
and
the
of
public. ■
'Y The American people must have
a
complete knowledge of what
we are doing, and what we intend
And to provide
do, and why.
to
with
them
must be
time,
that
attention, and
before.
more
than
money
knowledge,
we
prepared to devote more
more
ever
vi
,Y"
End Fuel-Cost Differentials
A second
major impact of fully
nuclear power will
our industry of
competitive
the impact on
be
the
of
elimination
ultimate
differentials
cost
the
V "
country.
the
As
of
cost
of
between
fuelareas
•
nuclear
power
progressively reduced, it will
become competitive first in high
fuel-cost
areas.
Eventually, al¬
as
Kahn
& Jacobs.
General contractor:
George A.
Fuller Company. Architectural metals fabricator: General Bronze Corp.
number of
later, it will be competitive
though
years,
38-story bronze skyscraper at 375 Park Avenue designed by Mies van der Rohe and Philip Johnson. Associate architects:
it
be
may
a
everywhere.
•I, This
single
going
to
a
of
is
fact
cause
course
shift in
major
jthe economic and industrial geog¬
raphy of the United States.
%■
Age-old
Today, such industries as basic
alloys, and electrochemi-
'metals,
cais
'can
locations
favor
most
amounts
with
-where
cheaply obtain the large
of
fully
they use. But
competitive
nuclear
power
power, they will be no longer re¬
stricted to the low fuel-cost areas
of today.
Determining factors in
their location will be chiefly mar¬
kets,
and
materials, labor force,
raw
available
sites.
\
'
Obviously, this is going to pro¬
vide
hitherto
nities to
in
a
their
grams.
♦
.
unknown
lot of power
area
opportu¬
companies
development
pro¬
Formerly fuel-poor areas
new advantages for in¬
will have
dustrial
prospects.
Conversely,
fuel-rich areas that have hitherto
had advantages built on lower
generating costs are going to have
nation-wide competition,
v
Two
appear.
some
aspects
What
companies
of
are
are
situation
problems for
opportunities
the
for many others. I can't pretend,
at
the moment, to have answers
to these problems or formulas by
which to capitalize on new oppor¬
tunities.
But I believe
it is none
copper
alloy in
a
brand
new
setting
they
There's
a
striking
new
the world's first bronze
face adorning Manhattan's skyline these days. It's
building. Radiating warmth and color, the 38-story
Park Avenue brings forth intriguing new concepts
in building design. Massive masonry walls have given way to lightweight
"curtains" of glass and architectural bronze.
The
office building at 375
For bronze endures
and endures
.
ages ever so
AnacondA
Company
gracefully. But, until
recently, architectural bronze extrusions were unknown in the large sizes
needed for a building like this. Formerly, bronze extrusions were confined
commercially to those whose cross-section
a
six-inch circle.
studied intensively by Anaconda's American
the architects and the architectural
fabricator, Anaconda men found the answer. Then, as principal sup¬
The extrusion
Brass
would fit in
problem
plier, The American Brass Company used its specially designed dies and
modern extrusion equipment to produce the 26-foot-long I-shaped'bronze
extrusions that helped transform a pace-setting
architectural concept into a functional and beautiful reality.
mull ions and many other
Creativity with bronze is just one more illustration of how Anaconda uses
technology to serve industry. Ranging from aluminum to uranium,Anaconda's many areas of endeavor lead the way to ever-expanding
its
uses
for non-ferrous
ments in
American
was
Company. Working closely with
metals
The
metals and mill products
America's pattern of progress.
, • •
and to important attain¬
Brass
Anaconda Wire &
Andes Copper
■
Chile
Company
Cable Company
Mining Company
Copper Company
Greene Can a nea
Capper Company
Anaconda Aluminum
Anaconda Sales
Company
Company
International Smelting
Refining Company
and
page
34
28
The Commercial and Financial Chronicle
(2740)
service agency, was lo be
.
Thursday, June
.
.
19
curbs and controls to such an ex¬
The
High Cost of Redemption
a
tent that
ly limited in function to the pro¬ "century and three quarters
tection and preservation
of the
By contrast, the French
rights of individuals. The powers lutionaries of this period
with
hardly
the courage to resist enslavement.
In this historic City of Boston,
Pittsburgh, Pa.
! Chairman of second Hoover Commission Water Resources and
Force
Task
diagnoses
of
problems
serious
,
privateh.::'
endemic disease *
V which afflicts the country at large." The J.&L. Steel Chairman
sums up pervasive crisis said to be facing America as the crisis
?
of liberty and states none of us will save his own skin unless
there is a rebirth of liberty for all. Admiral Moreell answers
two rationalizations frequently advanced to justify big government—i. e., to fight the threat of imperial communism abroad,
utility industry
"advanced symptoms of
as
;
an
we
and to avoid domestic depression;
discouragement
expresses
to
? ;
t
''
•
-
t
lPower
is
the lifeblood\of' our
machine,
and
what
happens to power, for good or ill,
will affect all industry. The power
ihdustr^fhas
" ' 1 0
..
which
t other
mo s
industries
not
Yours
the
was
problems,
:ap.
an
of
•sou
thjs; country
personal
were; strong
advocates
of
politically
who
Ben
Moreell
were
others
it
The
time
our
escape
estimate
that it is
see
of
that price
moral
very
courage,
and
and
I
shall
you
will
high, in terms
individual re-
personal
sacrifice.
It
clone once before at
major
is
one
of
trend
our
is
pretense
Liberty
increased
toward
crucial point
in
our history.
>
Before, we assess, our present
situation, let us look briefly into
that
present
of
our
business
out
of
our
what
is
de-
way
and
us.
Reviews
lives,
government
over
crisis,
manded of
govern-r
daily
the
Basic
that
date,
projects are included, approximately one quarter of all the
power produced
in this country
will issue from generating plants
owned and operated by govern-
nnd
industry for the good of all.
plan may be to control only
the
economy;
but the economy
cannot
be
politically
directed
without controlling persons. The
instrument to control
problem peculiai
has
careened
toward
socialism
during the past half
century. The Federal Government
country
■*-* attt
now
rtit r\* fi
rfn
r*
engages
1nAtr
Anrtl
tL
a 11 n
a
i-v
/I
in several thousand
*An address by Admiral Moreell before
the 26th Annual Edison
Electric Insti¬
tute
Convention, Boston, Mass., June
11,
1958.
a
man
man
is not
in order
is mastered
Hon
of certain religious concepts
about the nature of man and his
place in the universe which
by those who control the fruits of
inherent
tradition.
There
to it. The entiie
him;
It
his labor.
...
Howevei, the piogiessive socialization of your industry is not a
to own
necessary
to dominate
us.
can
problems
!iny
0,ie
of
be
no
anv
one
industry,
industry until
we
"hf
answer
or
1
or
of all
God, the Ruler of the Universe,
the
find the solution
0ur^society
the
The basic concept was that all
power and all authority flow from
to
business
even
in
are
Judeo-Christian
Since
all
men
of
creatures
are
_
.
«
_
_
^
_
•
_
^
*
_
l
*
Market Place
I
m
The political application of this
religious concept of natural rights
gave birth to the idea of limited
for ALL
government and its
the
right to sustain
the
WISCONSIN UTILITY ISSUES
fruits of his labor.
that
life
I
•
,
!L®iwi
'
its
225
EAST
MEMBERS
MASON
|
SECURITIES
ST.,
MILWAUKEE
full
significance,
the
right to
the
with
"Of
And
And, not content
it
since
is
.
the
.
.
.
"The
.
.
to
eral
designed
personal
accepted
to
.
to
hampered
exclusion
-
-•
MIDWEST STOCK EXCHANGE
11
"Whilst
the
:
'
law
the
direct
by
own
The
that
natural
law,
of
«it
knew
human
in
God's
i.e., in religion.
Cut
roots, liberty stand¬
alone is too fragile a thing to
very long in our kind of
ing
survive
world.
They knew that all the
prophets" hang on the
'
'
"law
two
un¬
and
great Commandments, to love
God with your whole
being and to
love
laws,
rules and regulations imposed by
as
and that
the
neighbor
your
yourself;
liberty without such love
becomes
on
Fathers
roots
founded
were
moral
restrictive
was
con¬
off from these
cre¬
energies,
Founding
the
liberty
of
was
the
they please,
license
which
leads
ul¬
timately to
sovereign individual whose rights
and liberties it was, the duty of
anarchy and then to
slavery. "Man ultimately will be
governed by God or by tyrants,"
government to secure, it must not
said
Ben
Bell,
the great
be
that
assumed
thinkers
who
the
shaped
ciplined
individuality.
freedom
that
institu¬
our
tions were advocates of
phasized
believed
profound
undis¬
an
They
because
freedom
is
internal
em¬
must
of human nature; but
they held that this freedom must
exercised
within
the
work of God's moral
and
tion
In
external
re¬
was
to
climate in which every
a
could achieve his greatest
development in those positive fac¬
tors which contribute to a good
society—moral courage, integrity,
understanding, reasonableness and
individuality.
These, in turn,
would provide a firm base to act
as
a
launching platform for at¬
tainment of the higher ends of
set up
by the Constitu¬
designed to end man's
control of men.
The goal was a
society
in
which
each
person
free
he
appetite,
on
be
not
short, the design here
person
code.
was
be
Canon
when
not sufficient
are
restraints
•
there
establish
frame¬
The political agency envisioned
in the Declaration of Independ¬
ence
matter
straints?"
re¬
quirement
be
And
Episcopal scholar,
the
asked: "If there
they
a
Franklin.
summarized
to
life
—
such
scholarship,
as
art,
music, charity and worship.
I
am
well
of
aware
Such
the
is
American
basis
the
of
instances 'the
best
hope
all
of
mankind.
where the idealism in this scheme
distorted
was
by
human
evil.
This
in
actual
ignorance,
was
to
error
be
Where Are We Today?
practice
Where
and
have
expected.
People are fallible, and no society
is perfect. Not even its shortcom¬
ings, however, can detract from
the
MAINTAIN
AND
today?
How far
from these
the nature or.
concepts of
his relationships to God
and to his fellowmen? Do we still,
and
look
government
upon
POSITIONS
COMMON STOCKS
IN
OF:
Lake Superior
.
as
MARKETS
TRADING
HAVE
we
departed
basic
man
mobility of the experiment in
WE
are
we
Dist. Power
Central Illinois El. & Gas
"Northern Indiana Pub. Svc..
Central Indiana Gas
"Northwestern Pub. Service
Gas Service
Company
Otter Tail
Power Co.
Iowa Southern Utilities
Light
_
Transcontinental Gas Pipe Line
"Wisconsin Power & Light
'Prospectus
Available
William A. Fuller & Co.
free people com¬
ernment, relegated to the status of
real
whose es¬
sential purpose is to unfetter the
creative and productive energies
of men—and whose spirit is still
revolution,
Portland General Electric
posed of sovereign individuals was
derived from these
concepts. Gov¬
1
Wash¬
ceiving, and forbids them to com¬
mit, what is rash or unjust."
fp$
price
his
re¬
'
Iowa Electric Light & Power
Iowa Public Service
a
of
permits
Americans to do what
choice, the risk
as
us
-
Pacific Power &
The ideal of
.
years ' after
America, observed:
encour¬
Thus, the individual
free
.
ington's • address,' -in
1831, the
gifted French, scholar, de Tocqueville, after- an extended-tour of
on
re^pqppjtbility,
the results of that
be
in
Thirty-fIve
of the penalty of the wrong choice
freedom.
indulge
morality
prevail
ligious principle."
right of
established
was
shores
being
caution
religion prevents them from
society
these
with
us
and'experience both forbid
expect that national
can
etc. I
A
let-
.
son
people shall not be infringed
.
the
dispositions and
which'lead to political
supposition that morality can
prevail without religion.
Rea¬
filled
.
all
the
restrictive
such
in
Fare¬
prosperity, religion and morality
are
indispensable supports.
many
Prohibitions"
his
"
habits
restrictive provi¬
sions of the
Constitution itself,
they insisted upon further safe¬
guards in the first 10 amend¬
ments,- the BUI of Rights, which
might better be called .a "Bill of
with
France
Indiana Gas & Water
labor, either by direct expropria¬
tion, by unwarranted taxation, or
by any other means.
2
NEW YORK STOCK EXCHANGE
of
=
probably
America and
he said in
when
control him; man is controlled
by
those who control the fruits of his
is, Co,
I
States.
Washington
both
life must be coupled to economic
freedom. I repeat, it is not neces¬
sary
to own a man in order to
m
a
to
up
Central Electric & Gas
"right to life," standing
alone, has little meaning; to have
INCORPORATED
INVESTMENT
drawn
was
on
The
'
I
the
and
labor, that is, his honestly ac¬
quired property.
This so-called
"property right" is, in fact, a "hu¬
man
right." It stems from man's
right to life, which carries with it
m
1
corrollary, the
inalienable right of every individ¬
ual to control the fruits of his own
Unlisted
terror
1
invest itself with such authority.
m
Constitution
A
Independence.
crisis
rights of others without violating
the moral law, nor can
any group
M
of
provide a legal structure for these
political ideals and to specify the
limited functions assigned to the
new
government
by the people
would
And
of
dictatorship
A ''vim ,/b'.y-
;
-
George
mind
govern himself,
God, each of us derives his inwith political intervention sanc¬
of our society
is the dividuality and
his freedom
tioned only to remove outside in¬
crisis of liberty. This nation was directly
from God.
Thus,
each
terference
with
this
aim.
The
established that men, voluntarily person is sovereign in his reladisciplines and controls were to
accepting the discipline of God's Hons with all other persons.
It
come
from within a mans' own
rule, might enjoy the blessings of follows that no man can, arrogate,
being as he sought to live out the
liberty. But as things now stand, 1° himself the authority to tresdemands of his religion.
we
have
been
conditioned
to P.ass on the God-given or natural
the
reign
well Address;
Declaration
While the emphasis
The
ment.
the
Concepts
The Founding Fathers rebelled
against the established disorder of
rational
The
the
was
had
political masters.
Our
Thev tried to
which ended in the
was to
be kept within bounds by
conforming it to the principles of
ative and productive
social
control
a
PettY political tyranny. But the
real American revolution began
government ownership has grown
long before our Declaration of
rapidly so that at present Federal
Independence. It began as an idea,
projects, built and building,
It was a religious—not a political
amount
to
about
15.2%
of
the economic
order" represents <our -^idea, The real American revolucountry's total capacity. And by livelihood, and whoever controls tion manifested itself in the 18th
1960,
if
state
and
local
power
our
livelihood
has
a
powerful Century as the political applieasince
result
Napoleon.
not be violated"
redemption.
revo
tossed
historicarex
completely'
had, our forebears established a
society whose
political
agency
we will be in a better position to
will exercise control
power,
limitations, y / *
Having wrested their independ¬
ence from England
by a bloody
war in which they risked all they
prescribed
the
of
a
a
ago
completely nfew society one
sought to emphasize
the
primacy of the rights of man
bv
denying the existence of God
phrases as
"Congress shall make no law"
"The right of the people — shall
price
'
here
which
carefully.
their
to
not
k:n
vs.
The
electric
and
establish
only as long as they were
exercised/within
liberty for all.
1906
sell
have
tained
the basic concepts upon which our
forebears erected this nation. Then
that
u:q
Collectivism
ment
and
we
religion and
perience overboard.
uniess
clear
now
government
ownership
utilities; and they saw no inconsistency in this. As early as
generate
decades
i
determine
of
to
en-
by obtaining -a
privileged■»sanctuary,
I here is a rebirth of
Government
•
course;
both
government, obtained by dele¬
gation
from, the citizens,
were
provisional. They were to be re¬
over
been
might
we
:ii
vocated
undertook
edging
claimed,
Federal
suicidal
a
of
responsibility to secure
"the blessings of liberty for ourselves and our posterity;" that this
deterioration, if continued, will
lead ultimately to slavery; and,
finally, that there is a way mut—
provided we are willing to pay
form,
disaster
is
«
in
one
breath, to stand for free enter¬
prise, but who in the next, ad¬
the
recent
show that we
self-government launched
generation
a
have
us
raged to think
But
Admiral
power.
they
as
at large.
than
more
some,
jo-
011
v;
strict¬
demands that we, too, be willing age the individual to develop his
to pledge "our lives, our fortunes God-given talents to the full by
landscape like a gigantic ice- and our sacred honor" to regain providing maximum personal
Its progress has been uneven, and preserve our freedom, as was freedom of choice with a collat¬
)ur
earliest
in
sympendemic disease which
collectivism has been
socialists.
There
serious
the country
sbcializers''" in
public
of «business
but the advanced
are
For
the
/ ■"■■V'-y; ■'
yielding to government
.
while private business operates in
atmosphere of Congressional
criticism, * hostile' suspicion, -controls, punitive taxation and costly
intrusions by Federal inspectors,
afflicts
target of
The1
in
been
an
degree.
same
that
lvmetitioii with its'own citizens;
toms of
the
our
*
individual
different ' kinds'
'•<
losing
we
•
.
indeed
are
•
are,
.
to
'
your
do
have, at
least
first
.
prob¬
lems
Are
•
•
political, social,
—
and
It is my purpose to
from disaster to tremendous spiritual growth
productivity, and world moral leadership.
industrial
some
events
world-
recent
of
heritage of liberty? If. so, can we
reverse
course, and what is the
price we must pay to correct past
errors?
police state. Prescribes five steps
v
,
light
suicide?
"
of
Lowell,
military —and our
panicky reaction to them, we may
well ask, "Is our American Society
now in the process of committing
our course
and material
.
.
the
economic
get us out of this1 "morass" which, he says, if done will
change
-
President
and
will
the
Harvard University—lawyer, edu¬
cator, philosopher, and student of
history—made this statement: "No
society is ever murdered; it com¬
shaking'
v
people eagerly seeking unearned government
accelerated pace towards
our
late
In
/ hand-outs; and deplores "pseudo-charity" by government and
;
losing
are
mits suicide."
,
about number of
It appears
that
the
Power
protest.
a
ADMIRAL BEN MOREELL*
»
;
accept regimentation
Board, Jones & Laughlin Steel Corporation
By
Chairman of the
o,;
we
1955
Members
209 SOUTH
LA
oj
Midwest
Stock
SALLE STREET
Exc'nanae
CHICAGO
an
Number 5752
187
Volume
.
.
.
The Commercial
and Financial Chronicle
29
(2741)
agency responsive to the people,
whose limited function is to pro¬
God-given rights of in¬
dividuals. all individuals, from in¬
fringements by others, all others?
Or have we come to look upon
our own creation, government, as
t h e
all-knowing/
all-powerful
deity,,, the
gold-plated calf, at
whose, altar we must worship if
the
tect
we
be
to
are
housed?!
fed,
clothed
and
that there are $495 billion
contingent and "moral obliga¬
tions,"
i.e.,
actual
or
implied
in
guarantees
•The
of'
States
glaringly obvious.
approximate gauge of the
tion becomes
An
Government
and
owns
the
land
Continental'! United
has
now
total
real
property with an acquisition cost
of $42.9
billion, marking a $2.9
increase
functions
present situa¬
Gov¬
vious
year.
some
commercial
inevitably curbs
individuals.
omnipotent
reasons,
are
It
social
government
an
he contends; first to
cope
threat
of
abroad
the
imperial
and
second, io
depression
adequately with
danger of
To deal
fallacies
contentions
com¬
in
a
each
would
of
these
require
a
and
op¬
business
and
more
the
over
owns;
3,000
the
liberty
need
two
munism
at home.
the
we
for
the
avoid
But
separate speech, if not a book. I
pave
discussed
these
issues
in
other writings and can do little
facilities,
carried
disease
pre¬
its
and
on
by
major operating units.•
Our
this
of
with
acreage
standards: and
our
Federal
one-fourth ; of
erates
a
the
Federal
about
fundamental question,
but as soon as we ask it seriously
the contrast between
our
early
This is
by
ernment.
billion
V
,
found
"is
here
than
indicate
a
will¬
ingness to tackle them.
this
"What Tthe
point
World
'
human history,
nition
of
other
of
the
fraternal
a
Two
Rationalizations
of
from
our
ignorance have
catching up with us.
Numerous fallacies
recog¬
dignity of man—in
words, the terrestrial hope
in the Gospel?' Such a
reaffirmation
of
thh
ideal
would
over
communism
be
a
>
A
told,
bumper
for
are
a
of
way
endlessly
are
crop
in¬
of
babies will insure continued pros¬
perity—in spite of
that
victory
the evidence
in
increases
population
home -do not automatically result
in
and abroad. It would also permit greater economic productivity; in
the adoption of a sound policy of fact, they may have an opposite
national defense, because under effect/ as in India and China.
modern
mere
both {at
conditions the
of
defense
country is based
on
operating in
free economy—and an economy
a
is
have
We
;
virile
a
free only to the extent that it is
not subject to arbitrary political
intrusions. Which brings us to the
There is this much
that
stance,
American
major
a
We
repeated.
men
industrial machine
Answers
natural law, but the consequences
follows:
as
expects
America is that she keep alive, in
our
1,937
"
political
confirms
conditioned
been
to
believe that payments for not pro¬
ducing goods and services are just
wholesome and just aS sound
economically
as
* expenditures
made to produce the goods and
as
truth in the
degree tp
which we have de¬ elephantiasis, as is clearly indi¬
first contention: If we grant that
parted from those standards is the cated - in the following official
services we need and want.
the United States have a divine
gigantic growth in size, scope and statement made by the late Row¬
second objection, that we need a
We are told that military ex¬
mandate to police the world
power of the Fedeial Government land Hughes, at that time Director
big government to keep business penditures stimulate the economy
which
means
unlimited
com¬
with the inevitable, attendant of
the
Federal
Bureau,
of
the
mitments abroad of our resources, operating in- an orderly fashion and induce prosperity, in spite of
shrinkage of state sovereignty and Budget. He said:
and in the public interest.
the fact
that
they are, -on the
our
money and our manpowerpersonal liberty.
,
%■
"The
Federal
Government
V:
,.
—
—
,
Let us look at some of the latest
statistics in this area, compiled by
the Second Hoover
Commission.
is,
among
other
electric
things,
power
the
producer
largest
in the
then
it
follows
that
we
far that the figures
were
Federal
74%, state 13%, and
local 13%.
debt,
$275
billon
the
Hoover
officially de¬
in
national
Commission
going further I'd like to
recognize
often
two
objections
raised at
this
which
point,
frequently by the same person. He
admits that our
government is
enormously overgrown and that
are
In addition to the
clared
Before
a
wide-spread
In order to
whole, almost 100%
our
present
of
economics, finance, science and
technology, and thrqugh. modern
developments in managerial skills,
the
economist
one
"We
appear
White
book,
Maritain,
"Reflections
on
America,"
it,
expressed
to have developed
Father
will
take
care
mistakes but will absolve
their
a
of
us
from
And not content with
their
people"
There is
no
evidence in
history
mortals
gods
or
power,
is operated
like
and
supermen,
the
wherewithal
petual
you
boom
by
or,
not by
me,
either
has
intelligence
to
which
ordinary
generate
prevent
Government
can
economic
the
the
or
a
per¬
depres¬
delay
or
by
cannot
processes
its
interventions; but it
suspend the operation of economic
laws.
We may choose to ignore
restricting^
"doing
for
good
America,
en¬
our
"Dealers"
are
now
busily engaged in expanding their
activities on a global basis — at
the
,
American
the
of
expense
taxpayer!"%f.,y
And
v
to
so our
the
digression returns
us
main
question; the extent
of our defection from the original
American system.
Consequences of Defection from
Basic
logic that government,
after all,
at
to
thusiastic
It
or
efforts
consequences."
accelerate
Jacques
has
everything—that he will not only
foigive our (economic) sins and
sions.
philosopher,
in his recent
can
childlike conviction that the Great
of. the American ideal. The world-
French
Government
Federal
spark booms, prevent depressions
and control the business cycle. As
largely lost that place, and can
regain it only by a reaffirmation
famous
the result of vastly
as
non-produc¬
tive.
increased knowledge in the fields
implement
country, the largest insurer, the foreign
policy Washington ! must
1910, the Federal Government largest lender, and the largest have unlimited
power to conscript
cost the average American family borrower, the largest landlord aiid
both property and people. But if
$38.00 per year; in 1955 it was the largest holder of grazing
land, our own
government
exercises
$1,600, an increase of 4200% in the largest holder of timberland this kind of
power over us' we
costs while the population was in¬ and the largest owner of
grain, have installed a kind of domestic
creasing only 81%. During this the largest ship owner and the totalitarianism
right here at home,
same
period
the
Federal
debt largest truck fleet operator. For a first cousin to the
thing we profess
grew from slightly over $1 billion nation which is the Citadel and to be
fighting.
to $275 billion—and the Federal the World's principal exponent of
We
should
not
flatter
com¬
payroll (civilians only) from 384,- private enterprise and individual
munism by imitating any of its
000 to 2,362.000. At the same time initiative, this is an amazing list."
features. As a citadel of liberty,
the
Federal
Budget grew from
The increase in the size, scope
America is, in Lincoln's phrase,'
$639,000,000 to $65 billion, an in¬ and power of government raises
"the last best hope of earth." We
crease of about 1,000%.
the issue of personal liberty, for
are only as strong as we are free.
In 1916, the tax collections of the history of liberty, as Woodrow
It was our ideal of liberty and
the Federal Government amounted Wilson reminded us, is the history
justice for all that gave America
to only 23,% of the total tax take, of the limitations placed on
gov¬ its high place in the minds' and
state taxes being 12%
and local ernmental power. As government hearts of men all over the world
taxes 65%. By 1954 the process of expands;' the liberty of every one
during the Nineteenth
Century
centralization in Washington had of us contracts.
and
until
recently.
We
have
so
to be
seems
belief that
In
progressed
There
cannot
have limited government at home.
Federal
denied
its
doing
size
that
has
Government
extended:
While
Concepts
be
cannot
and,
the
vastly
powers.
it has both under¬
mined
personal liberty and the
political, integrity of the 48. states.
so
But that is not all.
The
■?
growth of gov¬
ernment has imposed a heavy tax
enormous
burden
even
on
that
sufficient
every
citizen. But not
excessive
to
pay
taxation
the
Continued
on
is
mounting
page
36
MARKING 75 YEARS OF GROWTH
BY LOOKING TO THE
AS
$31,450,000
^
in
new
equipment
budgeted for
continued
in 1957.
Columbus
$60,000,000
and
expansion.
FUTURE
+
S
^
Excellent
for
returns
long-term
investors.
Southoffi Ohio Eloctric Co«
30
(2742)
i
to
Better Selling Is
Must
a
By C. A. TATIJM, JR.*
personnel, and setting
On
exist.
the
budgeting
i,
f
*
^
tention during, the last year.
v
.know the
plans of our comof
many
detailed
sales
;
.
us
• are
tomer, employee and publie
convinced that to meet today's
We
•>
history of the electric iiir
dustry has been marked by
of
the
most
aggressive,
salesmanship
i^t
!
rates.
>
.
;
.
>
he'd
hand,
industry
could
relied
and
.
.
And
other
our
.
ou"ufacturer
wants to do!
to do,:or
If your company is typical; he s
operating within budget and man-
.w-
r
.
h
•
.
his
accomplish
only
on
w.
.
lose.
That
It
happened to Napoleon.
to me we might well
even
seems
double
general. For a long time now, the
electric industry has had the wind
additional
big a budget, what
to increase the sales
surge
or
.
every
nine years
or
.
to
.
of us
might actually
a
back.
"front
the
are
during
haven't had
much
as
to
use
time
we
heads
our
as
did.
once
we
this
doing
Maybe that has given other industries the opportunities to move
be
job,'..
up
,
in
But
to the
m e
d i
o
Tatum,
crity
trie
eventually
catches up with you.
a brief story which I
this point.
trates
For years
the
Let me tell
think illus¬
help thinking back
selling job done by the elecr
industry in the past
things which
Let's
British
military
just one
laundry equipment.
Selling
his¬
from the time of the Phoenicians
was finally struck by a pat¬
which, he observed, happened
again and again.
A military
He
would
too
little
time.
leader would emerge.
have
few
too
equipment,
So he'd
men,
be forced to
his
use
head, to overcome his bigger and
stronger adversary.
He
washer
or
near
it
know it
be
$50?
built
Of
a woman
today.
anything
for
It had
not.
course
have that
We
sales
to
carry
a
price ticket
neighborhood of $250.
in
the
service.
this
amount
This
is
added in
one
and
year,
have to sell, of course/
is the time of our generators. We
we
our
it—as
much of it
He would
mies
and
try to divide his
them
take
on
ene¬
at
one
a
washer
raised
$250.
time.
would
He
and-drag-out
more
avoid
knock-down-
engagements.
And,
often than not, he would win.
Then
when
.
.
.
this
Liddell Hart found
general
grew
desirable
so
their
That
The
was
*An
address
Annual
10,
by
Mr.
Convention
Institute,
.
.
to
sales job.
that
campaign
of
im.
.
.
Tatum
before
the
Mass.,
*
•
4
Customers
induce
can
we
industrial
ent
.
and
our
pres¬
pres-
comme
■-rcial
,
customers toseive
busi-
us more
nessI don't
I
don't have to remind you who
"nursed" electric refrigeration into
wide
use
.
.
.
bulbs,
years
...
occupied
I
we
am
all
induce
we can
Pres«)t customers to buy more
clecti ic power than they can use.
But we can do more than most
door-to-door,
af aie ^oin8 1°
them rea1
son
almost
to
aware
are
.
.
.
The
how
pre¬
and
have
and
else,
buy
more power.
thing, more
which will help
than
one
tomers
use
more
mation—or
our
is
power
electrical
serious
a
don't
our-
capacity
or
;
,
television,'; washers,
rnore
m
all
cus-
auto¬
moderniza¬
f
in
and
this
be increased 50%
four years.
.
,
lack of
.
inspired
and
inspiration
get if done,
j
enthusiasm to
But that determination
faith
.
job
can
v
.
.
.
that
.
that inspiration and en-
.
thusiasm
.
.
must
.
from and
come
be transmitted to
inviting road
great,
a
■•
,
done
be
)
need-—in my opinion—
down
is
.
can
next
lighting it
for this pur^.
reaLdetermination to get the
lack of faith that it
done.
-
n rr-*
.
the
the
use
The only shortage that could
possibly hold us back is lack of
to greater
•
alone
pose
444;:- 4*,- 4
■»
of
needs and kwhr
4 and they are
profits.
-y:
manufacturer reports that
survey shows the average
has ,25%
home
the
speed our progress in the right
.
livable.
their
aiiH
•/.;
dryers,:-and
housework easier and iheir homes
this
in
friends'
•.
other appliance' that makes
every
must-have 4; One
expressways
we
direction
your
own
com-
panies to get the job done 011 the
local level. By the same token it
is only through you that the job
can be done on the national level,
sustained
selling effort for theTo start the ball rolling on the
a dynamic- program, local level, let's tell our sales deof market
expansion
the partments to prepare an ambitious,
greatest display of selling enthu- far-sighted, long-range program of
siasm ever seen by our organiza- selective
selling
designed to
tions and our industry.
load our systems economically and
Quoting
the
words
of* Phil thus aid in sustaining low rates
industry
'.
.
.
.
.
.
Powers before
ference in
ago:
will
ficial
.
in
.
use,
a
.
.
.
and with sales
higher than
ever
goals set much
before.
bold
a
effort
a
.
con¬
.
every
individual
their
sales
few months
r
a
.
What services we decide Jo pro¬
program that mote, of course, will be a matter
conceivable bene- -for local determination. But the
with opportunity for field appears to be wide open. ,
companies to pattern
Anv
nrnuram
souncllv con-
need
sell
the EEI
Chicago
.
"We
who sold electric
or
ago.
Now
June
that
mean
We
Survey after survey shows that
consumer
acceptance of electric
ones say,
want
.
First,
and to the utilities.
J
7
to
open;to
are
Industrial-Commercial
Edison
of
Boston,
•
avenues
us:
the
so
revenue.
Two broad
wide-open
What
.
big and
1958.
T
$50
paved the way for many
appliances which are now
light
26th
to¬
women
from
good
a
of
.
Electric
that
sights
success
got
automatic
portant to the American home
strong, and had plenty of men and
munitions, he gave up using his
head
t
forgot his resourceful.
that
have
onTiciT
residential TipIH
field
as
itable
manufacturers
We. still
capacity.; sales
excess
of
distribution problem.
.
gether
made
*
Hun-
.
So—let's sell
any¬
this
■j°b«
appli¬
plenty of materials for
Consumers have plenty
selves into
approximately $4 bil¬ ticularly in view of; the job being
companies' money; This done by the gas industry./
must be put to work. To do it, we 4" So T— we have these two broad
face a marketing job—for; which
avenues open to us — the indits-.
better selling is a must.
trial-commercial market, and the
.".J
ties
and
a
our
What
do
selling
represents
lion of
.»nd imaginative ways to gain his
and
building.
to
abundance
of money in the bank.
have to be afraid of
exclusively electrical manufactur¬
ing field. But even these are gfet+
ting more: than a little disheart¬
ened
over
our
apparent lack of
interest in
merchandising, par¬
companies.
greatest capacity in¬
the
shortages of
no
an
ances, and
1110,1 e suPP°rt from you.
by the electric
crease ever
and
.
appliances is at an all-time high,
Customers <>«want S more electric
typi- 5 kitchens, air - conditioning, color
•
■
ap¬
victories.
ingenious
is
out of
ouUtKatytoiness; The remaining-
million kilocapacity will befput
Of
proves
concenoiini.u
should fire
net
a
cat dealer*atJess>than 2%.
This year about 16
added
ah
profit, of less than 1 %; and
decision, someone will have to do. in effect,: that if you
some very specific sales planning',
market developed, we1
new
.
need
estimated; that the typical
dreds -of-dealers have'gone
cannot;store
Did that stop the electric indus¬
is
It
potential in
in order to carry
But,
simply
'
distributor -is, operating,
possible—and convert it into prof¬
to
resort
enthusiastic
too
.
of
use
try? You know it didn't. The utili¬
would
be
to
about selling' electrical appliances
exclusively, we cannot be too
critical.
Their
concern V is
not
hands.
our
in
perfectly good electric
we
as
Could
triple the sale and
even
proximately 12V2 million is being
time when
a
t.
are
we
There
.
that appliance in our territories.
Just by deciding to clo it!'
watts of
washing machine of the early type
for around $50. Then the industry
came
along with the idea of
the completely automatic clothes
too little
or
was
could buy a
today.
He
tern
There
are
we
There
logically with kilowatthour sales,
ances
and merely by deciding to .but with making a merchandising
erely
do it, could start the planning and
profit,..which iswgetting harder
y.
programming that would double and harder to do.
auto¬
4 Commodity
of history,
campaigns
to
—
Higher Priced
a
know,
example
thing
not. seem,
in a unique
position. Any of us could pick any
one of those low-saturation appli-
on
.
have
great load builders.
consider
torian, has been studying the great
down
.
.
the
many
turned into
matic
might be surprised.
The rewards could be startling,
*
No
ke done
4 If. distributors and dealers do
You
or
you
imaginations as to what might
by the eiectric industry
our
spectacular promotional
at this time must come from
elsewhere.
of electricity in our markets?"?
can't
I
Captain Liddell Hart,
famous
military
areas.
some
And—here's
the danger—
as
could you do
You
remipd
.
trated selling '.
trafpd spiiina
..
.
pretty medi¬
ocre
-
We
j.
Maybe
many
Still
its
runners."
too
and
.
.
eight
every
.
.
twice
Jo
once more. the power of
a; profit of around z /o on saies.
Consequently, they point out, any
if you called
take note of what happened to the
every 10 years
happen tomorrow
in the head of your
"If you
would
„
This
w?lch '3^Vfo«y
sales department and said:
. .
.
.
often than not
more
...
to
r
Big Potential Demand and
^
Material Shortage
'
_
inadequate today.
What
need
our friends.in the gas industry.
-
'
'
c
.
that were' -too * * Appliance,
manufacturers are
and certainly; being
caught in a cost-price
limitations
power
don't
about what has been achieved
how
knows
had
size and strength
his objectives.
industry has
any
On- th*1
seen.
some
effective
ness
seen
Jty;:
I
small ten years ago,
The
have
what, better-sell¬
ing campaigns have done fn other
fields.
/, ' '
,
i
rela-
tions."
.
national
,
.
*
situation, our industry should proof us have examined vjde more initiative, more promothe philosophy behind the budgets /fional leadership and more ^ pro¬
-! of our sales departments?.;;;/J
motional-money.
X.
;
'"
'
,
rapid growth
than in the past by running ahead
of gas and other competition
more
Development of this market .in that will produce a higher degree
the future is a job that we must of diversity, . . . that will make
do to a greater extent ourselves, for assured and sustained profits
The
electrical
manufacturers • • . and that will improve cus-
with
point
cannot
stations
.
will provide
new
management function—an
currently
and
the fluctuations in earnings with seasons
The- late and economic conditions
that
How many
a
economically and sustain low
systems
we
Thursday, June 19, 1958
.
that will diminish
' 2.
1
panies?
dollars
more
°
creating
and
.
.
factor on facilities
,
really needs attention.
of increase of residential load has
have to sell* begun, to reflect this Jack of at'
How
level, too, the Texan utility head
prescribes a well-conceived program to back up local effort
and tie-in with manufacturers and others,: designed to load
,
.
.
finding
one
us
higher sales goal, to take advantage
of tremendous potential demand and no material
shortages said
to
and
and the cost of
.
.
.
pride.
for sales and advertising, increasing sales force and calibre of
its
.
susceptible to economic readjustments.
V * Vi
Yet here is a markeL .which
and
...
and taxes
..
important one—to which many of
>
inspired and sustained selling effort in the industrial-commerHe suggests
.
rate of return
is
gas
cial and residential fields.
with capacity
.
.
markets for what
industry competition has achieved and
what happens to those who become big and
successful, Mr.
Tatum urges electric utility companies to go all out in an
/
.
But
Dallas Power & Light Company, Dallas, Texas
Mindful of what
be
construction
money.
President and General Manager
J
and Financial Chronicle
The Commercial
&
to
particular
that
program
constantly
needs
will
result
improved
ceivJJ
0Uo-ht
to
be
®
'
'one
good for
Continued on page
load
tion of plants.
A
TWENTY YEARS OF PROGRESS
great
work
many
right
automation
-December 31
1957
Utility plant
at
original
cost..
capitalization
revenues
Net income
$70,941,692
49,000,000
49,615,000
44.1%,
69.9%
A
number
automation
one
.
.
of
of
years
was more
more
$
Why Investment Dealers Use
<►
t
*
Public Utilities
•
utility
novelty,
company in the East
airplane-load of. execu¬
an
44.9%;
54.3%
54.2%
21,138,000
22,007,800
a
79,813,742
20,163,531
19,866,563
for
us,
90,301,531
91,489,363
our
a
37,991,605
17,799,800
5,510,313
2,187,252
13,687,342.
tives
out into
model
To
the
Midwest to
them
interested
the
the
reaches
in
FORTNIGHTLY
is
and
con¬
....
the
only
magazine in its field covering finance in all
branches of the utility industry.
/
we
into
the
plants
on
our
sys¬
aggressive program
modernization.
We
fortnightly—
FORTNIGHTLY
executives
Because
see
really make this idea work
tems with
for
•
plant.
should fully organize
people who know some¬
thing about automation, and send
the
cerned with financial matters and
own
14,372,120
Because
when
ago,
of
to
fHWHWWHHWVHHHHHWHHHHWUWHVWWWil
power
flew
86,500,303
.
the
modernization
try, can do a great deal
push this idea.'
246,459,518
preference stock..
Common stock and surplus.
Operating
$111,192,240
Or
at
are
promote
I think, we, as an indus-
41,391,656
Preferred stock
Total capita) and surplus
1937
110,882,000
.
% Debt of utility plant
Convertible
1947
$287,076,435
38.6%
Long-term debt
% Debt of total
plants.
—
forces
to
now
an
simply need to do
more
a
imaginative and creative sales job.
During the past
dealers
ment
display
nave
year,
used
leading invest¬
FORTNIGHTLY S
numerous
the
to provide .information about their
utility industry, including the market¬
114 billion dollars worth of bonds and
pages
services to the
ing of
over
over
7 million shares of stocks.
',
President
Residential Customers
NORTHERN INDIANA PUBLIC SERVICE COMPANY
Hammond,
Indiana
Send
\
Usher's
Second, a truly great opportu¬
nity beckons to us in the residen¬
tial field
.
.
.
including the exist¬
ing home market.
which
is
most
This
is
productive
a
field
of
net
utility revenue, and which is less
for
r
332
our
brochure "Here's Proof" and
Statement
our
Pub-^
of circulation and distribution.
Public Utilities
Pennsylvania Bldg.
FORTNIGHTLY.
Washington 4; D.
C.
J^wwvvvwwvwvvwwwwvwvvvvvwvvvwvwvwwvvvv*wv**vV
187
Volume
Number 5752
The Commercial and Financial Chronicle
...
(2743)
industry associations.
vourmeeds
are
But. many;
By Si.L, DRUMM*
giving
f:
■
decade, raise
estimated $123 billion of
an
off government
stave'
lags during inflationary price rise.
out
having
as,
member should
•person
check list of things
challenge the industry and should be solved; suggests
•with
examples of better methods that,could be more wisely used;
and urges more extensive participation : in, organizations* of
of
So
the
right
be
handle
can
such
that
whether
industry the spotlight has
been? on the solution of problems
fully
our
nan
cmg,
^
*
ft
cmp
our-
•
^
•"•"'
of
methods
own
good "as they
as
are
be.
can
-
We should ask ourselves whether
in. the fields •of engineering, con-
struction;fi-
our
methods
are
good enough for
today-^-wvhether'-we are
-
out
methods
;
we
want
that
the
alone
good man¬
a
*
c
The
second
that* the
t ions
and
to
as
we
is
needs.
that
toward
well
As
the
more
we
grow,
trend
it
will
decentralization
activities
*p o 11 c i e s;
,
organization, no. one can afford
AbeTuxim#: of waiting for years
up
*
we know-must
?r
„
...
xr
•
is
S.
L. Drumm.
a
Top executives can't afford the-
.
the
,,
operating
districts,;to build a fire-prevention 1
care should
be taken to move
commensurate authority, and there
never-ending
to
suggest
that
we
that the caliber of
So
the
that
to
cuwuundi
aw-
mauve
ana
aaequaie
conuuis
without'changing decentralization
into abdication.
«
third
help
Plan Well in Advance
The third generalization is that
our
the "sine
as
that
vnu
you.
should
We
whether
ask
ourselves,
vour
nrpa
area
ready
make
-
-
needed-
the
for
ower
make
to
for
♦
equivalent of the electrical facili¬
that'have been building for
the
are
we
the
compete favor¬
of
by
and
staff
-
por
techniques to bring
about
degree
linebetter
and
increased
policies,' proce¬
responsibility,
.
a
of
the
jn
management
ther public,- to
level
enable
us
to
.7
should
work
ever-
only, but rather the entire upper-*
which includes most,
To attain opti-'
mum
- overall ^
efficiencies,
top ^
»' management " should
constantly
.,1979 as confidently as we are
saying today—Power Is Our Busi•
•
lastingly at it. By "top managemenf' .we do not mean presidents
say
in
•
to be out front
methods? it? uses, its: top
company
of-efficient
operation, with concomitant low
rates and good service as a firm
basis for earning the support, of
ness.
less decentraliza-
dwarf what we are now raising.;
of modern manage-
rnent tools and
a
or
in¬
going
functions,
clear
An industry that is under un¬
remitting-attack by government
power zealots should, continually
such
come
gineering y decisions based upon
vision, readiness to change,and. a long-look ahead; and: need •
for raising sums of money that
razoivsharp.
use
may
dures, and standards; need for en¬
*
make full
more
communications,
tech¬
niques
various
codification
1979
money
for
toward
continues
should keep its management
new
of
(ion. with clear definition of
to
double in size every decade and
that will need an: estimated $123
billion
growth
cluding manning; need for
support of the investor,
that
times that
making substantial
for
bility
money
industry,
in
face
we
changes in organization structure
and
in
assignment of responsi¬
market by ob¬
taining operating results that will
the
this
With
Operations
to
century;
that,
present.
need
Pressures Demanding Better
ably in the
about-four
to
size
efforts match
the opportunity and the challenge
of operations improvement.
continue
a
beyond
prospect of adding facilities
approximating
twice 'those
we
now. have,, bringing our electrical
"farming" as well as we know
In short, we must be alert
our
decade
the
how.
that
of
three-quarters
the
that
sure
to
In
the next decade we must add the
we
spotlight is there and that
.
team
jf not all, of you.
motivate, • organize, plan, prod,
and
control.
Otherwise, suchoptimum efficiencies will; not be
attained.
But with leadership
and motivation the search for better. methods becomes part of the,1
provement is an outstanding area company's way of life. Don't you
in which management is free to agree that that's the kind of leadmove.
" j;
.,
•••-•
ership it'takes to make a. comThe methods used in our in- pany's top management "tops ?
In
industry
an
whose ;wages
are
^largely subject to negotiation
whose prices are regulated,,
with a regulatory- lag that-works
against it-in these days-of con-* •
tinuing
inflation,, methods
im-
and
■
CBWRIL MD' SOUTH WEST C0RP0R1TI01W
Wilmington, Delaware
Central Power and Light
Public Service Company
Company
of Oklahoma
\
dustry
That
Each of us is fortunate in that,
constantly improving.
are
should
not
probing, in.each of
stop
our
us
methodsimproved'
in addition to the better
from
companies,,
we
ourselves^ develop,
>
'■
y
widAv
Sotvp
nrA
are
comnhnv's
Continued
ties
an
exr-
new&r
df
siei-n**
using.
you.
It
so, you
search
will
in¬
effi
efficiency
us^
i
in your
nf Pftm'ranv vAsnnnsfhi
of company responsibility. If
enough for .tomorrow and, if not,
sure
actively search out
improvements for ourselves. The
earn
isre~
mtehf*' "he-riefirisllSiR
and to study-them for
too,
methods will be good
our
and
To
few
better methods that
bringing about improvement?
Not at all, be¬
changes. ; Our " growth tends
make some methods obsolete.
sure-
a
the
of
niro'n/iw
already
Others may be of help: to
you are not already doing
may want to consciously
them
non" for
qua
piecemeal, that we be quick
to study the applicability to our
companies of new methods and
techniques developed by others,
to be
optimum
consider
some
more
used
are
trends*
than
is
us
of
be
crease
doiiig against our own
established '-norms
and
industry
that our
approach is comprehensive rather
urge
generalization
assure
methods
out
whole
would
of" being
that
pro-
and a better-equipped firer
department. '
•"< vVgram
.
obviously be
But it is to urge the im-
portance
.
,
•
that
untrue.
service
personnel practices are free portunity., to exercise their, capac- to mimimize errors, decisions that
JjjwiiYiioo*' and Tnnlrinrf nn+i1-': Ay Slid tO grow Slid DrO£!reSS! 31ld JIVA!' lYinHp nil Si. HflV-tfl-flflV flllfl
barnacles; ntirl making opti- ltV an<* to Cl'OW and progress; and arc made on au day-to-day and
mum
mum use of labor-saving devices? Awards commensurate with their
year-to-year basis should be made
Are we'usirig controls that really achievements. ..
T
v ; against
a backdrop of studying
tell us how our various company
The importance of having the and planning ahead in all areas of
units
and
our
companies
as !a right kind of organization struccompany interest and should be
continuing
for the better.
cause
such,
to
is
of
Of
management has not3 been chang¬
ing
of
as
and
'
and
not
or
esiaonsnmg
.
;;
haven't been improving our oper¬
ations,
longer
even
inclusion
and
as
But
•
should: be given
development
period of years; op-
agement—presents
This
in
be
to
They
ciency through
-
especially
decisions.
should, through proper delegation,,
jf responsibility is moved, out make available the time needed
searchingdeath^and retirement to;open toward
improvements?■.and
•:
man-
the
and
__
f standards; Simplifying/procedures; -bility, and the other qualifications
!keeping;tbUr^marketing^method;s: necessary^do . achieve managerial
•?
—y
opportunity
challenge.
longer,
Now let
■
are
planning
of
years' variety,
talking gib out
periods
amples
the increasing
of our el'fi-
better
do
five
to
sometimes
Improvement)
single
phase- of : our
c o m p a;ni e s?'
we
-r.
who ;tralization is indicated, to get the suits, we review the adequacy and
organization/structure;;'program-^are.really , tops.
Using the most full benefits line-and-staff re- comprehensiveness, of. our for¬
ming-the reduction of excess per- advanced, techniques*, it. is possi- sponsibilities should be sharpened ward-looking objectives and plans.
a
improvement:^
•
company
marketing, personnel, ac¬
counting, financial, engineering,
operating, and power production.
inithe conduct:
of every
in
ourselves
.■■grounded in modern management put decision-making nearer the time to put out the daily firestechniqqes. In staffing the top point of action in order to speed with hancf extinguishers. But they
„
operations ;
our
ask
attempting such planning on a
sufficiently organized and com¬
prehensive basis.
Of course, all
fields
eye
well
generation and transmission.
by should be the appropriate increase
jobs: in accountability. If more deceni
whether in
we're
likely
up
v
on
might
certain physical facilities such
decen¬
an
to
advance.
three
whether
should
The way
plan it that way long enough
study and from having
well-understood separation
functions.
The
people
generalization
decision
how much
we
make.
nearly assure that important
long-range objectives are reached
and that things we would like to
happen actually do happen is to
tralize should not be left to chance
but should
result
from
careful
line-and-staff
competent'
best
to
companies
Decentralization Decisions
forecasts
the
on
We
organization structure, particularly the top structure.
it adequately.
for -fun
based
know how
more
assure
can
<our
one
eof drones and should be made
utility industry.
times-in the history
At various
if
{top executive staff should be free future
.
benefit to entire
depend
With-
a
agement1
be made in next twenty years.
that still
branches
well-rooted, strong, upright
can't possibly have an
outstanding tree.
Structure With Top?
•Responsibility
a
and
trunk you
-should be carefully assigned with
like things grouped; together and
Presents
limbs
for support and sustenance.
some
twenty years and that three-fourths of investment in 1978 will
of
the
People
leadership
made in, past
was
ture. can hardly be over-emphasized. It's the tree truck on which
;kind of top organization structure.
The span of responsibility of each
Mr. Drumm points out that
three-fourths of present plant investment
fit
Probably no single thing is so optimum overall results, the first
important in assuring this kind of generalization is that we look to
per
rate
overcomes
you
Y
by 1979*
new money
advocates* and
power
do
Staff Top
■
Utility industry is told of the importance of conducting a
continuous, comprehensive "operations improvement'-* and of
increasing its, efficiency to help: achieve doubling growth
all
our use.
and, are.
Before
examples, there
are three generalizations that will
.bear emphasis.
••
•''Executive Vice-President, West Penn Power'Company'
Greensburg, Pa.
Not
timely, for
31
;
.
r
V.
~
•*
.
c
26,^1"^
Convention, Boston, Mass.,-June 10, 1958.
'
methods developed and tested by !
others -are freely available to us
through the trade press and our.
Southwestern Gas and
Electric Company
West Texas Utilities Company
on
page
52
32
The Commercial and Financial Chronicle
(2744)
The basic
money,
widespread effort
concept of an em¬
.expository talents of high ployee information program is to
order.
fortify the employee with infor¬
Bioad-Gauge Employee
Information Program Is Mandatory
By CIIAS. E. OAKES*
'
\
Allcntown, Pa.
We
this
file, and supervisory, employees
public utilities as a great but still untapped potential to
impart badly needed insight about the essential facts of this
country's economic philosophy. Fearful of long-term problem
of continued invasion and growth of public power, the Pennsyl¬
vania utility executive makes clear how easily public utility
employees can reach a vast number of the public in a friendly
and intimate way to present free enterprise case—providing
the employees are well grounded about the subject.
Urges
upgrading employee relations and information, and outlines
look
Whitehead
once
said, "In the conditions of modern
life, the rule is absolute: the race
does
not
value
trained
intelligence is
'
I
we
ing
very
scious
the
observation.
ernment
happen¬
ings of recent
con¬
quer outer
have
made clear the
We
incidence of
s c
i entif ic
security. The
technological un¬
and
better practical
application of scientific principles
has
become
clear
very
to acquire such
should be fostered.
urge
These
and
served to
the
other
and
the
knowledge
events
bring forcibly before
us
truth of this statement in
ica and its institutions.
lack of real
a
in
And
to
the
as
But there
understanding of
ize
that
become
we
people
fully realize
That this mistaken notion is being
recognized is fortunate. But even
sc^ is the fact that the prob¬
spreading the knowledge
of
have here in America
is getting the more concerted
attention it deserves and
by those
who have the
now
understanding, the
ability and, presently, the will to
solve it.
in our industry for
been in the first line
by those who would
we
sensitive
their
to
motives,
have been somewhat less than
completely successful in translat¬
ing their objectives effectively to
the public mind. Couched in ob¬
scurities
made
possible by the
complexities of our modern soci¬
ety and abetted by the false cloak
of promoting the
public welfare,
these advocates of federalized hu¬
man endeavor have
accomplished
much.
depends
and
—
Without
passing
motives
whether
ance
or
and
nation
of
originating
in
on
people—
from ignor¬
malice—the
severe depression of the '30s and
the subsequent world conflict af¬
forded them unusual opportuni¬
ties, under the guise of emergency,
It
in
role
the
that
and
they
process
pass
to
an¬
government
economy .and the
and the impact
not be
can
assumed that
em¬
necessity
taxes.
for
of
Such
discussion rshould
a
and
others must be
many
in
any
to
acquired
by
use
ally has not
tively in the secondary school
systems from which the great ma¬
good
jority of our employees is drawn.
Therefore, we should start an em¬
number
Though
who
can
which
they
are
ployee information program with
a good
grounding in the essential
facts of our economic philosophy.
proportion
feel
investor
ownership of the
utilities is right—yet there is still
about
see
equal
an
no
a
in
way
concerned.
(3)
y.1
While approval of govern¬
ment
TVA
power,
has declined
with
than
1953—yet there are
out
one
they have
approve
1947 and
people knowing about
more
more
example,
since
some
TVA than in
say
for
three
of
who
opinion, neither
disapprove.
nor
110
of the
mation
of
basic facts with respect
to
the
profit that is being made by
American
business.
Many polls
have
cate
been
conducted
which indi¬
the belief that 25%
profit is
compared
with the
realistic figure of 4% to 6%.
study of the American eco¬
normal
more
as
by
its
member
course
together with
a
kit
demonstration
material for
a
materials, and
training school for
conference leaders for the conduct
training
is
It
amazing ignorance
an
recently been
Edison Electric
96-page illustrated booklet con¬
taining a six-hour employees infor¬
of the
is
for
One
has
program
companies. This is the "American
Economic System," embraced in
a
Suggests Educational Program
There
program
employees.
the
for
The subject gener¬
been taught effec¬
encompassed
worth-while
Institute
by Mr.
Edison
Oakes
Electric
To
ward
areas
program.
that the
necessary
of economics'be
broad
thoroughly
understood in order that more ef¬
fective training of employees
may
be continued in a specialized
pro¬
gram
relating to the utility busi¬
This
ness.
reason
is
the
paramount
that employees must thor¬
-
Mass.
to¬
move
a
socialism.
These opinions can only be due
lack of understanding by the
to
public
subjects of vital concern
industry. I cite these few
instances simply to indicate that
there is a major job to be done.
to
on
our
which
the
econ¬
to
1057
$22,024,248
in
which
the
company
member
but he
member
in which
the
company
impor¬
an
favorable
Management
creasingly
in
(1)
While three-fourths of the
the
acceptance.
is in¬
that
aware
the
em¬
of atomic energy to gen¬
electric power — yet only
the
narrow limits of evident cor¬
porate self-interest lie the broader
of
ones
state
what
have
and
down
come
kind
of
the
nation
depends
dividual—in
nation.
to
greatly
our
And
fact
we
on
case,
so
that
are
the
the
to
in¬
em¬
ployee—and on his economic be¬
liefs and attitudes. Therefore, the
electric
utility industry has an
obligation to inform first its em¬
ployees and then the public itself.
have
ernment
have the
immense
an
our
stake
in
business from gov¬
encroachment
means
this objective
as
of
we
and
we
accomplishing
have what is
perhaps the closest continuing re¬
lationship between employee and
public of any business in America.
To educate and to stimulate the
interest of the employee in the
our
tions
of
the
American
way
industry is neither simple
easy.
from
thoughtful
It
calls
our
for
best
minds.
It
one-fourth
as
(2)
a
of
our
and
source
natural
the
a
the majority of our
know that TVA pays
only
income
one-fourth
pays no interest
taxes
know
yet
—
that
TVA
the funds pro¬
vided by the nation's
taxpayers.
(3)
not
The
well
fourth
about
check
as
"preference"
the
many
means
will
take
957,514
$39,166,549
$36,357,860
Only
right
answer;
think that "prefer¬
providing
again
about
don't
they
is
one-
(4)
know
as
many
Other Income
31,032,222
S 5,325,638
even
The word "partnership"
less
understood
and
in
71.337
131,031
an
Earnings
Interest
$ 5,999,139
and
Net Income
Other
Income
Minority interest
Net Income
..
Stock
Balance
for
.
&
Common
of shares
Stock
information
employees is
sity, what can
program
an
absolute
246,272
$ 2,249,673
of
5 2,148,099
$1.65
$1.59
Central
'
Company
on
number
outstanding at end of
year
CENTRAL ELECTRIC & GAS COMPANY
SUMMARY OF CORPORATE EARNINGS
we
do and how
Operating Revenues:
Gas
us
can
949,089
Operating Expenses and Taxes
a
most
con¬
important phase
a
company's work.
The de¬
partment head operating
employee
and public information
programs
should have access
directly to the
'957,514
$17,142,301
Total
Net
515,£87,927
$16,193,212
Electric
for
neces¬
formation program should be
as
2,394,371
is
getting this job done?
employee relation and in¬
sidered
5
245,104
$18,845,441
15,492,120
Operating Income
15,332,750
$ 1,650,181
go about
An
1,752,806
$ 2,494,777
»,,,.,,...
Common Share
per
1,249,798
Gas
Dividends..
Electric & Gas
Earnings
4,147,177
1,954,561
for Central Electric
Company
Preferred
$
$ 4,449,338
5,396,975
1,549,801
Minority Interest...
before
Deductions
$
de¬
check the right answer.
With
the
evidence before
that
Net
it
what
fining it only 3% of the employees
of
33,298,441
$ 5,868,108
Operating Income
to
power
means.
we
Operating Expenses and Taxes
Net
schools ahead of other
or
and
users,
say
word
understood.
hospitals
S 1.512,691
Other Income
(including dividends from
subsidiaries)
Net
Interest
and
Other
Income
Deductions
768,421
869,661
$ 2,418,602
Earnings
$ 2,182,352
515,488
445,721
$ 1,903,114
Net Income
$ 1,736,631
top executive in the company and
Preferred
Dividends
preferably should have executive
standing paralleling heads of other
245,104
246,272
Balance for Common Stock
$ 1,658,010
$1,490.359
$1.21
$1.10
departments.
should
itself
also
This
department
presumably
with
employee
concern
selection,
employee training, position evalu¬
ation and classification and em¬
ployee appraisal.
1
most
15,887,927
949,089
on
contribu¬
and
Electric
resources.
While
Federal
no
recognize
fuel
new
employees
key figure. But beyond
a
Gas
use
community ence"
industry
im¬
for
employees of our companies say
they have read something about
is
em¬
it operates and in which
desires
ployee is
is also
of
The
need
$19,512,419
16,193,212
Telephone
They found that:
conserver
regarded by the public.
ployee is no|, only a
the
1056
Operating Revenues:
Total
atom
displays in the company
and his job find
expression in the
stature
show
EARNINGS
Year Ended December 31
provement.
erate
Employee
terest he
we
and Subsidiaries,
SUMMARY OF CONSOLIDATED
in
His attitudes, his knowl¬
edge of the company and the in¬
it
CENTRAL ELECTRIC & GAS COMPANY
Employees' Knowledge Is
Deficient
What people
company.
the
Institute
economic
the
average customer
and
citizen the employee is the
local
nor
before
Convention, June 11, 1958, Boston,
country this would be
on
Understanding
of
address
the
plays
as
one
nomic system.
about
economics
Annual
added
such
business
greatly
policies, in the laws
Down
restriction of the individual to the
*An
free
a
conducted.
are
to force the nation further
toward
26th
can
feel finds reflection
preserving
judgment
these
conceived
I
in
their
on
under
Boils
We
How Free Is Enterprise?
the
think
and
of the community and of the
omy
tant
like to remold the structure of our
American society. While we have
been
I
beliefs and attitudes.
people. Now, we
that this is not so.
have,
other;
this
our
many years,
of an attack
alter
to
Are our employees in the posi¬
struggle, we are faced
tion to give the public this infor¬
with dealing with the
mation?
Recent inquiries of em¬
most dynamic, most powerful and
important things in the world-^- ployees by Central Surveys about
knowledge
of
our
ideas. And what kind of a nation employees'
In
ings of our American system was,
perhaps, not wholly essential for
We
effort
primarily
rules
tendency to proceed on the
theory that widespread and com¬
plete understanding of the work¬
we
>
converted
product
presentation
competitive society embraces ethi¬
cal responsibilities which can not
and
there has been
the
of what
deeply
are
outcome
existence
our
national
lem
we
the
consequences.
our
more
au¬
without equivocation that the
leaders of our industry fully real¬
think
For years,
of
more
say
great.
mass
human
industry have been
our
the institutions that made America
the
democratic
of
fun¬
on
are
through from
ployees generally have a thorough
knowledge of the American eco¬
be denied.
past
its
broadest aspects. This intense in¬
terest in scientific progress has for
its basis the preservation of Amer¬
is
eco¬
consequent
and
more
concerned
need for greater
derstanding
of
philosophies.
national
our
our
in the forefront of this conflict of
Chas. E. Oakes
knowledge
upon
well
our
erosion
his friends
are
finished
sidered
months in the*
space
the
his neighbors,
to
and to the general public
values
by
materials
raw
the
into
oughly understand the over
all
(4) Although a good majority In a
thority in fields traditionally con¬
American economic system. Not
as
rightfully within the say that socialism would be bad nomic system, the discussion
only must they understand these
province of our state and local for the United States—yet only a should include such fundamental
basic facts, but they rhust also begovernments and of ever-greater little more than half think that if subjects as profits and the division
Federal
Government ' pro¬ of
domination over affairs affecting the
Continaed on page 50
income, with particular refer¬
duced
all
the
the individual.
electricity in the
The
to
and
of informa¬
source
which
include the creation of
wealth and
its sources. All these elements
(2)
the
of
will for the, company
reliable
a
ambassa¬
an
even
government ownership.
rights. We see the ever-growing
assumption by the Federal Gov¬
reality of this
race
with
a
electric utilities—yet there is still
over
one out of three who favor
governmental control
into all parts of our
life,
ideals
tion
first
be
(1) Though there has been some
improvement in the sentiment fa¬
may
and
dor of good
and
employees as a very
contribution.
It requires
a
will
he
turn, he becomes
economic processes
our
that
labor plays
that labor re¬
discussion of the
machin¬
the economic system
a
voring business ownership of the
be found in the
can
In
so
efficient company employee.
more
the
the
of
contamination
con¬
of
infusion
education of
mation
that
lieves that:
enterprise system free?
our
The results
nomic
all becom¬
are
ask: Is
we
concepts
political structure
1
think
point where today
the electric
must, and,
analysis we
ceives;
ery
of
role
damental economic principles of
public the American enterprise system.
Inherent in the process, he will
slightly. In spite of
what has been done in the past, be well informed on
every phase
our industry-sponsored
polls1 con¬ of the company's operations and
tinue to show that the public be¬ its problems.
economics educational program.
North
belief that
the
our
attitudes
suggested in-plant continuous, comprehensive
a
in
preserve
at
herculean
of
of
to
utility business is a
indeed, in the final
real
Mr. Oakes looks to rank and
A. B. C.'s
firm
are
task
public of
;
1958
and the proportion
through
doomed."
the
ence
and
can
Chairman of the Board, Pennsylvania Power & Light Co.
which
to
Thursday, June 19,
time,
A
Alfred
...
"The
Industry,
poration.
Public
Appraises the Electric
1955"—Opinion Research Cor¬
Earnings
Stock
per
of shares
Common Share
on
number
outstanding at end of
Number of Shares
year
of Common Stock of
Central Electric & Gas
Company out¬
standing at—
December 31, 1957
December 31, 1956
.
1,366.908
*
"*
.
1,351,951
33
(2745)
Z?JS Shvrra,:^ b®4 f,ame gT.i!,g sect.ions of the State- trie's
0t,„the„
a,ld he s walkl"S -and the country. . ...
:
tario.
the .harness shop-,-
Russell Plant, on Lake OnFollowing the hearing, the
w
Actually, Manresa-is not
-
'nulJc.JL011t3 Si d s5r?s2n® land, but
si
a tbih
A«d How Do We Get There?
/
puts it
:
By SHERMAN R. KNAPP*
.
x." Hartford, Conn.
,
president draws
Connecticut utility
securing—against great odds—a harbor
rience in
expe¬
4m^ommunfciSorn
communications.
to
There is
illustrate the point that (1) public relations
on
.
of public opinion. Mr. Knapp prefers the term "peopleowned" to "investor-owned" private utilities; finds diffidence
arena
line in the
a
one's
views
fight for legitimate beliefs by stating
as a
to
the public characterizes
many
far
toward molding public opinion in
our l'avor unless we are doing the
best
job
We
are
say we
Investors,
to
who
must
corporations,
business
safe
to
-
-
owned,
chers,
place and reasonable return
money.
In a way, it is
taxpayers, who
will
not
for
pie
long
hide
the
money
for
need
will
tions
in
if
much
inefficient,
facilities are
our
employees
if
or
inattentive
and
with
business
doing
cus¬
our
tomers.
are
as
our
much
public understanding, we
first understand the public
individual customers, and as
To gain
must
—as
vaguely defined national opinion.
But before I can raise the titled
subject of
talk, "Where Do We
How Do We
my
■
Go From Here—And
One
tish
considerable
a
freedom
choice in both quantity and
burn
up
have
by asking, "Where Are
I say
I cculiarities of
Well—we
We
ness.
the
sense
are
are
that
tt44iu„
Utility Busn ess
peculiar busipublic utilities in
in
we
a
(|rive
to
for
-
.
We
pay
our
taxes.
publicly regulated so that
for the services we
supply do not result in more than
a
reasonable return on our in¬
are
our
charges
vested
Incidentally, many
our industry who
capital.
outside
people
When,
across
the
in the
around
right
every
opinions
his
reader
its
flower bed
or
walks
arouses
^ ^0g
When the
Our
lights go out.
product, like air, water, and
js noticed most in
,
galt -n oatmeai
jts
absence.
enjoy
and
to
Great-
because
diffidence,
a
shot at the
^
begins
the
on
it with
can Prove
names> dates, and headlines.
It
happened to us—it could happen
to you
This is how it happened,
and how me met it by shaking off
"
1
112
"
our diffidence and going straight
to the
increasingly
How public can
as
serve
the
the public,
for the public.
you get? Yet we
by
ourselves
allowed
labelled
to
be
"private" power com¬
distinct from "public"
power
operations which are di¬
rectly or indirectly "government
power operations" and whose lifeblood is governmental credit and
panies,
as
freedom from taxes.
I
think
stem
*An
26th
some
directly
address
Annual
in
its
ago
in
decision
year
a
1957, the opposition still
con¬
tinued the legal battle by appeal¬
ing to
the Connecticut
Continued
Supreme
on
page
mn
$22,416,181
Gas
that
aware
every
34,198.802
Operating Income
119,036
Earnings
Deductions
1,609,491
1,312,093
$ 4,388,774
$ 4,045,761
1,888,321
1,829,166
$ 2,500,453
$ 2,216,595
244,724
245,993
$ 2,255,729
$ 1,970,602
Other
Income
V
Minority Interest
Electric & Gas
for Central
Income
Company
Stock
Dividends
Common
for
Electric & Gas
Earnings
88,881
$ 5,357,854
before Minority Interest...
and
Income
Preferred
31,166.588
$ 5,268,973
$ 5,998,265
Other Income
Net
$36,435,561
$ 5,879,229
Operating Expenses and Taxes
Net
962,073
$40,078,031
Total
Interest
15,316,761
930,639
Electric
Net
$20,156,727
16,731,211
Telephone
Net
m?
,
Stock
of Central
Company..
.....
Common Share on number
outstanding at end of period
per
of shares
$1.64
$1.45
V-
business, cause, campaign, drive,
and
everyday
operation, must
my
have learned to
workthem from their sudden
plunge into pre-electric living. I
am still humbled by the faith and
available that we were all
to
created
public, financed
making a profit
have
just
CENTRAL ELECTRIC & GAS COMPANY
SUMMARY OF CORPORATE EARNINGS
better,
regulation.
were
the Superior Court
PUC
issued
Elec-
and
Operating Revenues:
Balance
profess to be an expert
in what is loosely called public
relations—although I have become
I do not
believe that regulation means
We
June
the
12 Months Ended March 31
people.
erroneously people without light, heat, freezers
Cites Manresa Case
that and water. These disasters pre¬
The Manresa case seems to have
utilities are guaranteed a profit,
sented huge public relations prob¬
become a classic in public utility
and that all we have to do when
lems.
But, we thought of them
operations with the public. It had
the going gets rough is to ask for
more
as
private relations prob¬
everything, embodying every
a
rate increase.
The history of
lems,
things happening to our
branch of law and public commu¬
the trolleys, and now the bus and
friends, our customers, who had
railroad
business,
denies
any to be helped and informed, who nications, from the first stirrings
of local sentiment to a place on
guarantee of profit because of had to be told by any means
know
hould
the
Superior
and Subsidiaries
or twisted the Senator's
tail shortly after San Juan Hill.
company's territory we learn to move within the limits of
live with disaster public understanding. I any howa couple of hurricanes, two devever, ail avowed expert on The
astating floods, and assorted ice Case cf Manresa Island—I had to
storms
which left thousands of be.
In
Gas
order
we
^
his bill.
meter
see
good neigbor-
upheld
have been
power
when he pays
the
to
CENTRAL ELECTRIC & GAS COMPANY
sheriff,
negative, with the company which
must deliver our
communities—and
us
Granduncle Joe took
has ^ thr.ee 1]iaj°r contacts, all
anyone
When
the op¬
and
appealed
SUMMARY OF CONSOLIDATED EARNINGS
of
has no such di¬
Now let me say here that I do
preference. It not think national problems are a
with a simple multiplication of regional
four-color label—although I wish ancj COmpany problems. I will get
it did. While other products pr°- to that later. But I do believe that
who can pay
for it. We are publicly owned by
anyone with the price in his pants
who wants to buy stock. We are
publicly responsible to serve our
product
a
.
,
many
does not come in a carton
get
Rochester
Roch¬
to
let them
dangling
a
mension of personal
worked so hard to
product under his thumb:
Commerce
of
for themselves the
employ.
Too many of us have
j3een willing to settle for silence,
in various pleasant
has
action
promptly
decision
PUC
Court.
ester, New York, to
lines of
position
too diffident, too self-conscious, to
of
qual-
that
vide prestige or some kind of public relations
We Now?" glow, the normal electric customer home grounds. I
*
about
Commission's
certainly not of
There?", I might better begin
Get
Norwalk
timony. In October, 1956, the PUC
affirmed
the
Norwalk
Zoning
of the
advance
Chamber
go
Yet
ago.
years
without
noble blood.
and satisfying ways.
Electric
which were not. concluded until
June 1956, consumed 17 days and
involved over 2,000 pages of tes-
pro-
hearings, we
had flown a group of Norwalk
citizens including the Mayor and
representatives from the Norwalk
answer
they'll
the
described
an
400
tree
ancestor is almost
ity of what they eat. drink, drive,
and
I
of guilt, like
moors
familv
is that they have exer-
reason
cised
to
permit utility cut Public Utilities Commission,
construction regardless The
hearings
on
this
appeal,
zoning,
In
overdevel¬
a family
whose 'genealogist has
found a
sheep-stealer hanged on the Scot¬
-
,
on
don't
maybe
we
sense
they don't squawk at the check. have
they need our service.
as
peculiar in
product
,
and
door,
Possibly,
bills—if they ve had a good meal,
iness,
and
that
business,
'Tower Is Evereybody's Business."
We live for and with the public,
and we need their understanding
really
........
difficult, and
shades,
the construction of the plant. The
away.
plus that outweighs the minus—
people get a kick out of a car that
lets them forget the gas and repair
........
customers
t
that
submit
I
the
oped
our
the
down
is
invisible,
available on a push-button basis.
It cannot be packaged, but only
measured.
Most products have a
that
our
discourteous
are
Knapp
We have
unpleasant,
hearing,
the
new
facility would not beobjectionable, would employ some
70 people with a payroll of $260,000, and would up the company's
the
sleeping-dog basis. Or with thatother corporate cowardice — pull
their
and have no choice as non-
Our business is also
K.
buerman
rela¬
program
prove
pay
the
face
the
evaded
operations.
fancy
a
public
as
to
that
needs of the area, pointed out that
best ideas
our
communities.
our own
refused
voting stockholders in government
a
neither
bath,
driving around in
in
more
authorized
we have many of us been
tax payments in
school teachers, but¬
cops, businessmen, young diffident, to say the least, about $200,000 a year.
people, and not simply by peo-
as
perfume
as
At
I think
by
or
posed plant, the increasing power
The key word is "DIFFIDENT."
people-
safety of our economy that the biggest business is
owned in small pieces—by people
Just
serve.
of
Many Have Been Diffident
the glory and
communities
we
it is priced at $300 less."
Well, I thought a Bentley was
something slightly better than a
their
for
the
of the
people
we are
1953, the Zoning Commis-
P,ant Wlth appropriate restrictions
°.n smoke, noise and water pollution.
plant
a power
half mile
a
1952.
company
couples and old folks who seek a
con¬
tacts with
cember,
persons,
most
day
of
from
jng to free
patience
of these people
that
somehow, sometime, and as soon
as
possible, we would get there,
aiKi the lights would go on again.
Perhaps
made
me
problems
this unfortu-
Mr. Knapp before the
Edison
Electric Institute
by
Convention, Boston, Mass.,
June 11, 1958.
has
conscious
that
public relations begins with pri¬
vate
understanding
between
a
ballot
the
struggle
as
election. In
public opinion,
city
the kit
about every tool in
just
was
a
for
used.
a
chosen
Harvard
It has even been
case
study
at
the
Business School.
It
began
bought
an
Connecticut.
in
1952
when
island
off
For
years,
we
Norwalk,
we
and
its
customers.
Things were much simplier when
vou could pick up the phone, after
mand
searching
for
power
County, which
$16,731,211
Gas
962,073
$17,661,850
Total
$16,278,834
15,937,382
Operating Income.
(including dividends from
subsidiaries)
14,981,409
$ 1,724,468
Operating Expenses and Taxes
Net
$15,316,761
930,639
Electric
$ 1,297,425
Other Income
Net
Interest
Preferred
Balance
Other
and
..
—
Stock
Income
Deductions
805,392
689,956
$ 2,529,860
Earnings
$ 1,987,381
453,200
538,570
$
.
i,:KHk,i81
244,724
245,993
$ 1,746,566
Dividends
for Common Stock
$ 1,288,188
$1.27
$ .95
had
for a site for a
waterside
plant
which
would
allow us to meet the growing de¬
been
Operating Revenues:
Net Income
in
Fairfield
is the southwestern
stub of Connecticut that reaches
within 30 miles of New York City.
cranking it of course, and say,
-r~—
.
"Sadie
can
you
get me .John Both residential and industrial use
Jones9"—and
Sadie would say, have made this one of the fastest-
company
our
experience
this
doubly
in
the
on
Jan-
which involved no change of zon-. situation
finally resolved itself
ing because the local commission, into an vappeal to the. Connecti-
"investor-owned." Jaguar, and costing maybe a little
oversimplify, are less than a medium-rare Caddie,
day
work, involv¬
ing as it does
innumerable
routine
our
nomenclature.
in
ex¬
is
cash operators
be rich. Actually, like
moneyed
know how to do in
we
confusion
nate
one
make
so
: uary,
In
area.
away—would not be the most desirable addition to the harbor. TheFollowing the approval of the
opposition was well organized, Norwalk
Zoning
Commission,
and well heeled. They made their there were numerous legal manpresence felt at the Zoning Com-.euvers on the part of the opposimission's public hearing in De- tion in their, efforts to forestall
r^„..
_
automobile
same
>
groups who felt that
cept that the radiator costs less to
'
We cannot hope to get very
plantpur- son, Long Island, which is also
generating
poses with respect to both cool- a beautiful harbor, familiar to all
—even
Royce advertising, featuring pictures of people washing their own
$13,500 car and using it to lug
groceries, which I think is signifi-
which is the
Island
Long
There was an immGdiate pr0- sion voted three-to-one to aptest from-several neighborhood Pfove the construction; of : the
;cant to us in the power and people business. It reads, "If you are
diffident about
driving a Rolls
Royce, _you can buy a Bentley,
utility firms; and
bargain the cost of participating in the utility indushry's four national activities.
case
the
Rolls
new
—
rather than willingness to
of
mcX
0-mod"
ern
.
home grounds, and (2) the utility industry needs
reach the thinking people, the "eggheads," to win in the
begins
.plant
ery of fue1'
half mile out of Norwalk, desired by the opposition for a rec¬
reation area, to
new
It is ideally Lighting Company in Port Jeffer-
ing water and water-borne deliv-' yachtsmen of the
feeling in the mechanics of
site
power
to
«fQS^ar! fWe +nee<i I?0rf
his firm's initially
upon
dismal and the subsequently successful public relations
good half mile from the
a
suited
7^^' Sadie represented personto^person communication at its
...
.
arm of causeway which
afi- nearest habitation.
call
should
I
wan
Zoning Commission took the mat-
is-
fist of land at the end ter * under advisement, 'and.; to
i;January of 1953 they visited the
a
u
President, The Connecticut Light & Power Company
an
Earnings
per
Common Share on number
end of period
of shares outstanding at
Number of Shares of Common
Stock of
Central Electric & Gas Company out¬
standing at—
March 31, 1958
March 31, 1957
1,373,834
1,356,050
48
The Commercial and Financial
(2746)
34
Continued
from
27
page
of
public, by and large, is still quite
uninformed
about
the
electric
.'M.
Chronicle
are the solvers of
problems. ...
/
~
Seventh and last, let's rememWe have to kindle
by pointing out how ber whatever else we do, that the
they are directly concerned., Then■„ threat of socialized power is not
we must see that they get the full
only still with us, but is going to
facts about what we are doing, stay with us. -We must meet it
what We plan to do, and why.
with every resource we can mus*
•
■
kilowatt-year Concept.;
these
For
,.
•,*■'■■
and
reasons,
to
be
In
.form and level of our rate struc¬
no
'
But
another, it will affect
ent
do I mean to paint a
way
If I have
concentrated on the problem
,scrutinized and adjusted. (
areas, that's only because prob¬
Our rate of return as an indus¬
lems are more easily solved when
try I believe is too low, not only
they
are
recognized
and; dealt
for today, but more so for what
with in plenty of time. And there
lies ahead.
The financial welldiscouraging
closely
tures will have to be very
picture.
;
Higher Level Manpower Needs
Fifth
last
and
on
list
my
impacts is the impact of
long,
short of
,
industry in
our man¬
of
r:
our
more
and
phase of
every
touched
have
morrow?,
complex in
operations. -1
our
First,
only a few of
problem areas.
But
'
on
mon
-
...
?•'.
Fifth, it behooves
\
foremost,
ratio
of fixed
our con¬
struction
that
earnings.
of the future in
programs,
reasonable
there
will
manifold
be
Th'sWiU take
problems as well.
We'll
adjust to new conditions
J—and probably more worrisome
conditions—in the regulatory and
legislative fields and their effects
on both
operation and construction. All aspects of our business
effort, iand
^
.v.
■
•":•
- -
-•"
V
do the
This
Second,
better
in
v
our
grams
industry
in
Type of Reactor
Co. & Plant
.
-
time is none too
and
to start
i, 1958
■
1
::y '-S. \
£'■
Water
of-'S Owner
Plant RAVE
.
of
*
Reactor
*60,000
AEC
Reactor
Estimated Cost to
In
&
Electric Co.
Boiling Water
5,000
General
"
"U-v *r
(3) Southern California Edison
Co. (Santa Susana)
Sodium Graphite
Lt:
-'V'' S-.'v'-^V "
! General
AEC
'ElectricCo.
•
.
"''
1
f"
.r"
•
.
.
'
$572,000
Oct. 1957
$1,500,000
1
i'-i
flncludes $18.3 million for the conventional
$For turbo-generator portion.
'
•
'
1, 1958
Not applicable.
•
Name of Organization
Capacity of
'
,
Type of Reactor
.•
portion
•
•
of
V
•
;
'
/
Study
"v
'
.
Cycle Boiling Water
180,000
led
to
decision
Pressurized
100,000
Water
Pressurized
-
site
a
was
nuclear, power
a
appltcable7
'^'V/
for
formed In 1954 to-study the
reactor,
In early 1957 th®
future
a
atomic
plant
-power
:,
the
PugetSound
•;■>'
Utilities Council
'
Joliet,
■
to
"
'
■
Location
'
,
*;•
'
.."
^
Monroe,
was
i
-
T
,
Not Applicable
I.
.
4
*
•!
..
'Study & Planning
Not applicable
.1
Power Group
.
_
Utility
-
San Diego Gas & Elec.-r
In
by
Research &
Development
-
«
'
^
Notapplicable
v
•
\
'■
Dynamics Corp.
-
i
San
j
L,.."•
Diego Gas & Electric Uo. is participating in the fission
conducted
1960 v
1960
-i
;
research program
power
General Atomic Div. of 'General Dynamics Corp. The company's partici¬
will include taking part in the designing of specific reactor systems,
; ;
by
..
Research
&
Development
•
67,146,000
1
Div. of General
v.,-
"Operation
$5i;ooo,ooo
Michigan
*;'f.
-Study & Planniug V;
^
(9) Rocky Mt. Nuclear
n
(10)
Organization
Id.
•
,Energy Associates
.
«
v
t,
■'?.
Advanoed epithermal,
thorium-uranium233
fuelVyele
275,000
Controlled
Central Utilities Atomic
Indian
Point,
N.
This group, composed of
Y
90,000,000
•
1960
contract
134,000
Rowe,
66,000
Sioux
Muss.
57,000,000
1960
Power Associates
Falls, So. Dakota
"28,800,000
1958
•are
recirculation
boiling water
with
January
Water-stain¬
less clad fuel elements
Northern States Power Co-
currently
(12)
1962
.
15 electric utility companies, was formed in 1957. It signed a
International Division of North American Aviation, Inc, in
4-year research and development program. Studies and research
Atomics
for
a
underway.
^
Texas Atomic Energy
Research Foundation
r
.
Research & Development
'
"'(Pathfinder)
Not applicable
'
v
"(Humboldt Bay)
Advanced
-f t
Boiling Water
in o o o O
Eureka, Ualif.
20,000/000
1962
" i
\
.
"Estimated total cost of project including $6,000,000 research
60,000 KW expected.
and
development
.
•
:
contribution
'
by
AfeC.
tGuarahteed
,
Type of Reactor
Heavy
Assoc.
.
(2) East Central Nuclear
and
Water
EaHier
1 Expenditures
Electrical
Estimated cost
to
-^Organization
(3) General Public Utilities
Corp.
New England Electric
System
(5) Pacific Gas and Electric Co.
17,000
Parr
50,000
Florida West Coast Area
Shoals, S. C
(6) Pennsylvania Power and
Light Co., Westingliouse
of
ttons concerned.
excess
VBaeed
,
1962
34,898,000
1963
Heavy Water
Moderated
Water
Not
Operation
by
$22,000,000
Location
i.
j,
Nuclear Group
(4)
Utility
In
Moderated
Cooled
Gas Cooled,
Group—Florida West Coast
^
10,000
selected
200,000
New
yet
Aqueous
selected
200,000
8,000,000
Homogeneous.^
operating costs.
Includes
w 150,000 -Kw •reactor,
./ 70,000\150,000
research,
-Does
England
Practically
all electric utility companies known to be participating
phases of nuclear power development supplied information.
(Estimate of
Central
expenditures by
under construction
Dresden
1964
;
East'n Pennsylvania
or
1963
development and construction costs to be borne b-y organizanot include excess operating costs.
recently
electric
under
of
any
for
and
1959
announced -Pacific Gas
flncludes
expenditures
by
do
for
include
an
estimate
or
one
mora
plants in
research and
Vallecitos
Santa Susana
Shippingport
not
in
following
including accompanying
operating costs.
excess
Pathfinder
1958
utility organizations
contract,
Indian Point
Enrico Fermi
Figures
t62,500,000
1959
1958
1957
$92,600,000
§10,000,000
Total by Years._____j._i__.
14,000,000
27,100,000
39,200,000
59,100,000 102,600.000
Cumulative
14,000,000
41,100,000
80,300,000 139,400,000 242,000,000
°Based on replies to inquiries to member
companies of the Edison Electric Institute.
?0 her
development work, but exclusive
California
Not
1956
for
Plants-. $11,200,060 $25,100,000 $34,900,000 $52,700,000
Expenditures
L_,
2,800.000
2,000,000
4,300.000
6,400,000
operation,
Saxton, Fa.
yet
by Electric Utility Companies for
Nuclear Power Development*
1955 and
1, 1958
Plant-KWF.
of Expenditures
Development
Capacitv of
Name of Organization
(1) Carolinas Virginia Nuclear
.
TABLE V
Elrctric Utility Company Participation in Nuclear Power
Plants in Various Planning Stages
MAY
:
This group, formed in 1957, Is composed of 11 texas electric utility companies. It is
working with General Atomic Division of General Dynamics G rp. in a 4-year Jointlysponsored research program. - Studies and research are
currently underway.
Estimate
TABLE HI
•
„
g g-
.
thennonuclear reactions
(6) ! Pacific Gas & Electric Co.
»
•
° V
in the field of controlled
■
"Exclusive
" J
•
■■
4 electric utility Companies,
of
Not
,
'■
::
.
.
Tho¬
rium-Uranium
^(Yankee)
Power
'
:
Edison Co. of
Y„ Inc. (Indian Point)
(4) Yankee Atomic Electric Co.
■1
.
Dresden Project (see
'y
undertake
to
1.
Study & Planning
(11) Southwest Atomic
Fast Breeder
N.
r
'
.
Notapplicable
'
'
s<
(8)
pation
Consolidated
.
;
•
This group, composed today -of six electric
Utility companies and 'three engineering and
industrial organizations, Was formed in 1954. It is
conducting Btudies of various types of
nuclOar reactors looking toward the
undertaking of a • significant -nuclear research
program.
■.' /; '• '
';
•-1. ■
Estimated Cost
1 '
,
Plant-KWE
<Enrico Fermi)
;
'
■
,
,
:
'
:
,
Co-General Atomic
Co-Nuclear Pwr. Group,
Inc. (Dresden)
(5)
II).
group, composed of
V
Electrical
(3)
^
' '
V
This group, composed of one investor-owned and four state and local
government-owned
electric utilities, was formed in 1955 to determine the nuclear
power system or systems
most practical, technically and economically, for future vise
by merger utilities.
July 1957
-
•
"
MAY
(2) PRDC-Detroit EdisonCo.
in addition to the advanced
*
feasibility of deslgh and construction
purchase by -fe member dompany of
/...
>
•
*'
"
Study & Planning
^
General. Electric Co.
Table
Power Group
•
Electric Utility Company Participation in Nuclear Power Development Plants
Under Construction or Contract
Dual
with
of
announced.
*
(1) Commonwealth Edison
l
This
TABLE II
Name of Plant
coolant.
•
Nuclear Power Group
■;
v.-,."' V -v
Atomics
-International
'"Initial capacity; ultimate of 100,000 KW expected.
plant and the site, and $5 million 'toward cost'of reactor.
,r;
reactor
a
(7> PacificNdrthA^-est,
Dec. 1957
Co.
ElectricCo.
*6,500
'
i
Concepts
•
(Vallecitos)
.
y'*-.
Group wfes formed in 1953. Composed today 'of 7. electric utility companies and' \
engineering firm, - it is evaluating promising reactor types and making detailed studies
of certain types which appear to have
greatest future promise.
Earlier studies and
•Operation
t$23,300,000,
"'■*<■!
;"• • *
Composed of 2 electric utility companies ■ and 26 other business organiza¬
formed, in 1955 to evaluate and further nuclear development of interestl.to
and its industry.
It recently donated a gamma radiation facility to the
was
state
(6)
"S,
Utility Organization
Duqiiesne
.
.
*
"
group,
the
-
(2) Pacific Gas
«s
University of Minnesota.:
"
*
Operator of
*
":\'yy^r^y
'. 'y'C'r'i.Not applicable
y;
•"
tions,
'
Pressurized
;
-
Study
;
This
item
S;
:'■*
'
f
in early 1957 and composed today of 14 electric utility companies,
Minnesota Nuclear
research
Electrical.*/
and
'
"
*
12
testing
conducting
Operations Group
re¬
Plants tin Operation
-/V; S
<yyyy»'''
) y ''
-
and
appendix v
water moderated reactor it is developing With Florida.
Weftt Codst
Gp (see item 2 of Table ill).- East. Central Nuclear Gp has also" participated
with Nuclear Development Corp. of America in n 'feasibility study of the
possibilities of
(5)
cruiting and developing the mOn
who will cope with them. Our in¬
dustry has too iohg been short Of
adequate manpower for our rate
of growth. And it is the recruits
;■ Development
of
Not applicable
*"
-
variety of other nuclear reactor
a
II
.
r
i/;
*
-
'
Power
-
.
Table
13 electric utility companies and 2 engineering firms, was
studies of the technical characteristics, operating
for-application to power systems of-various reactor designs,
of
is
•*
2Vpf
cooled heavy
using steam
.in
soon
»
-
Nuclear
'
'Capacity
'
-i; '-
group, formed
gas
road
rfnirt-rt
information
™
.
,v
the
part Of toward
increasing complexity.;
4A'
assistance Tb/iir are
They
going to Crop up 111
and other¬ every area of operations and the
TABLE I
Niiclear.
Participation
Name of Participating
Co.
continues011.
*'
broader
It
1955.
has considered
"
Company
*
(Shippingport)
manifold
there are
-
-
item
(see
Study
.
(4) East Central.Nuclear
This
going to be
lesser Vjpwblefo's as' our
business
•
a
pro¬
our company add
levels.
The
American
■'
Duqueshes Light
Jreas, that
proper
need
we
public
at both
in
plant
concepts.
'
•
•
composed
group,
formed
the
on
Atomic Power Engineering Group
v
not, forget,
Fermi
Enrico
'sC+:- Group
job.
'Vs. S'sS'V V''
''
with
the
,
Fast Breeder *
;>
- •
in 1954.
Composed. today of 31 electrtc xitility companies
engineering film's, it is cowdudting research, development 'and
and
problems and suitability
Sixth," let's
—financial, technical,
industry can certainly
--
Utility
But
wise—our
be
affected ■;■*** managerial,
technical, financial, legal, per¬
sonnel, public relations, and so on
right down the list.
IV V
s Utility
achieve
great deal of timfe,
government, and
will
Electric
a
money.
attitude
proper
■
(1)
time
we
goal—which is America's goal
—of competitive tiuclear power.
to
•
so
meht and Testing
studying advanced breeder
(3)
,
Study, Research, DeVciop-
;
formed
was
associated. with
our
lesser
have
in
may
business,
And
;
Group
costs;
development efforts and
expand
opment Associates
'industrial
the higher
as
to operating
to
our
•
,,
(2) Atdmlc Power Deyel-
*-:>/■
increased Considera¬
tion of such factors
1
must
we
to do more >"
us
thinking and planning in the area
of our financial well-being. This
these
of the executive
■
•
Group was tdmttd ta NOvembet:1937. Composed of one electric utility company and four
industrial and engineering firms, it is conducting studies looking to development of
a
prototype reactor. »
/
'
r
*.''*•
today.f
economic depreciation;, form and
level of rates; and adequacy Of
are enough,
in themselves,
indicate the new dimensions
1
•
;
Industry Do?
deal, I think.
to
gomery Street.
■
ndvv
research
continue
ert.H. Wotherspoon is now with
Walston & Co., Inc., 265
Mont¬
,
our
broad
the
••)
our
will demand
and
>
Calif.—RobJ
..
:
A great
SAN FRANCISCO,
..
:•
more
Staff
to
(Special to The Financial Chronicle)
r-v
best
panies,
XI
is
situation
20 years ago.
seen
Walston Adds
1958,
TABLE IV
^
advantage of our c<M-.
customers,, and .our Electric Utility Company Partfeipatich tft Nuclcat Power Development
;
Study, Research and Development Projects J;" "
service areas. These developments ; v;
; \
V.i,
Of,Reactor
' ,
can justify corporate mergers, joint
Name of Orgairization .,: j -*• ¥yj>fe bf Project
If Applicable
1
ventures, pooled operations, and a
(L) -Amei'ican Nucdear
•
•
Studyks Fhninfeg
;
Helium-cooled, uraniumhost of other corporate arrange¬
;
-■ Power Associates
/'rv;;''-;-7.
• bismuth fueledj•. / V
ments which me all t<yo lihbdiiithe
vanished.
power
recognized, and tackled, the.,op.
4>ortunities and challenges of
been fore¬
today could not have
and
,irl?uftry'
S-JSw 22?
commonplace
is
>
What Should
America,
inevitable developments to
these
fore-
have
resources
much that
talk,
quantities. We can be
thinking about how we can use
oUr
What can we as an industry do
vV'V about these challenges and these
business is going to be ¬ opportunities? Now?" Today? To¬
too.
For
fuel
our
on
size; power is going to be gen¬
edented
The coming
competitive nuclear
going to intensify that
v
faced
all..: ;.
us
erated and transmitted in unprec-,
otherwise limitless
an
Limitations
adequate for
growth.
of
come
has
seeable
industry has been
manpower
rate
our
heretofore
future.
our
Conclusion
Implicit in all our planning, of
course,
must be the realization
or
way
that we cannot foresee the future,
in
our
which
of
power needs.
Too
have
•
plan more inten¬ We can make
.informed estimates,
sively for the impact nuclear en¬
forecasts, and predictions. But we
ergy will have on power system
cannot knoyr for sure. As I sug¬
engineering and economics. Units
and plants are going to mushroom gested at the
beginning of this
opportunities, of course,
far outweigh our problems/This
vast new source of energy bids
well to set aside the single limit
^
IX
But
>
one
can be. And I
hone
that in 20 years' time those
of us
are still around will
look at
the changed face of
who
let's
Fourth,
problems we must face new.
are
industry needs con¬
our
tinuing study and planning.
companies.
anything well
opinion.
xn
1
-
being of
will
transformation
informed public
vastly different effects on differ¬
:X
the
and
improved,
This
all these areas.
many
•others, our earnings position will
have
ter, remembering always that our
strongest ally is an interested and
TTiird, it's none too early to adstart recruiting and developing just our thinking and planninng
the men who will cope with the to the coming transformation Oft
increasingly complex problems in- the ; industrial map of America.
The time is none too soon to
especially for
large
cyclical
industrial loads;
•and possibly even a return to the
now, it may be
..
power industry.
Today's Challenge,
Thursday, June 19, 1955
.
that we will loqk fbac(c on what I
tfiave Said . today _nahd.» murmur
something like: How could we
«ave been so far afield in foreseemg what was going to happen? i
Hut today, our direction seems
pretty clear for years ahead. The
coming of economically competitive nuclear power is as certain as
.
their interest
demand guarantees,
.
So 20 years from
today who
tomorrow's
.
,
Yankee
for the
of
expenditures
and Electric Company Humboldt project.
individual
companies
and
groups
of companies lor
These figures do not include expendi¬
eight projects listed in (t) above.
nuclear power study, research, and
development.
tures 'associated. with any of the
f Approximated.
'
.
.
.
.
>
-h^
187- Number 5752
[0luine
i
.
.
.
The Commercial and Financial Chronicle
(2747)/
Record Electric Power Expansion Reported,
Though Not
High
as
Institute's
Electric
«Edison
Originally Predicted
as
mid-year
;;
Power
Electric
The
about
Survey
ity
-cwimittee. of the Edison Electric
jriswold
added
total
chaired by Arthur S.
of the Detroit Edison
nstitute,
double
the
new
covering 1958 and later
Co., issued the
includes
Institute's
5j
years
%
power survey.
It
lished
Edward
report
covering prin¬
cipal aspects
N.
Gadsby
oath of office
as
Griswold!
Arthur
sion
For the
ders, after making a low in Feb¬
have
shown
gratifying
The
the
quarter of this year
goods and serv¬
and
ices,
some
lines
five-year. term
modest
im¬
1.4% below the peak, but produc¬
tion was more than 4%
lower.
•
for
a
new,
-
prove
expiring June
also
was
d
capa-.
was
tion
re-
i g n ated
e s
Chairman
in
expressed
dollars,
was
produc¬
ter the gap
The
difference
from
inventories.
terms, the de¬
by Presi¬
is
ration with the. power area rep-
dent
esentatives of the electric power
hower.
trial
Eisen¬
systems.....;*/■
'
Gadsby
J
-
served
The following is a summary
of
findings of the "Survey":
States reached
V of
Chairman
the
for
forecast
the
end
exceeds 179 million
represents
si
Edward N. Gad*by
of
1961
kilowatts,
average
an
f annual increase from the end
since
o n
20, 1957,
when
he
suc¬
ceeded to the vacancy created by
the
resignation
of
J.
Sinclair
Armstrong and for the remainder
of
expiring June 5, 1958.
Chairman Gadsby was born on
April* 11, 1900, at North Adams,
'
1956 of 7.9%.
of
He
Mass.
United
in. the
served
States
'2)
PEAK LOAD
as
whole in December, 1957,
106.9 million kilowatts,
a
was
4.4%
but
above
4.8%
December,
below
This'
forecast.
a
for the country
faster
than
the
1956,
October
resulted
from
anticipated
re¬
trenchment of business
during"
the last quarter of the year,
together with an unseason¬
ably mild December.
Present
peak
load
forecast
for
December, 1958, is 119.5
million
kilowatts, 2.5% less
than
the
tober.
for
forecast
last
of
load
Peak
Oc¬
forecasts
December, 1959 and
1960
have been reduced about 2%.
For December, 1961, the
load
peak
147.6 .million
is
forecast
kilowatts,.. which
represents
an
average
annual increase
from December, 1956, of 7.6%.
The
of
the
1958
load
is
115.7
forecast
peak
summer
million kilowatts, 3.4% above
the
1957
summer
peak and
96.8%
of
the
predicted
De¬
cember, 1958, peak load. The
1961 summer peak load fore¬
cast is 145.6 million kilowatts,
which
represents
annual
(3{:
of
1956
with
of 3.2%.
GROSS MARGINS
firm
law
Williams
summer
&
Tucker,
City, from 1929 to 1937.
then
returned
1937
period,
as
Council
of
President
served
North
of
from
and
practiced law
During this
1938
to
1944 he
1947.
member
a
City
he
to. 1945
Government
also
Appeals
Agent of Local Board 132.
In
1947
Mr.
Gadsby was
pointed
m
u
the
toming; out"
period
m
e
r
automo-
rather
fundamental
renewed
be
a
year
still
our
financial
or
a
covery
tailment has brought output well
Trom
the
8th
a
talk
•
June
11,
expected?"
Mass. —- Hutchins' &
Parkinson,. 27 State Street, mem¬
bers of the New York and Boston
Stock
Bank in St. Louis,
'
•peak
load
sition'until
Chairman
he
1952
-1952,' serving as
1947 to 1949.
from
its
members
of
the
.
Thereafter,
he
and
Commission
the
was
he
until
in
the
prosperous
To Admit H.
great
bers
the New
of
of heavy
equipment set
new
all-time highs in
1957,
and for some classes of equip¬
electric
ment
power
is
scheduled
Chairman
Gadsby is a member
Massachu¬
to
Net
SAN
FRANCISCO, Calif.—Rob¬
W. Church
ert
ated
has
with Dean
Montgomery
the New
higher rates in
for
1958.
Orders
equipment, however,
continued, in most categories,
to fall off sharply during the
first quarter of 1958.
new
(5) CONSTRUCTION
power
of
new
projects is
proceeding
a slightly lower rate
than
six months ago, but the 15%
million kilowatts of new caservice
in
1958
that
placed
any
previous
in
come
still
into
exceeds
has been admitted
in
practice
He
courts.
Middlesex
is
Federal
various
a
member
of
and
1952
% Increase
$31,752,000
57%
$ 9,724,000
Income
Oper-
$ 5,707,000
70%
,
19.5%
17.9%
324,749
290,121
12%
$246,609,000 $148,071,000
67%
ating Revenues
Massachusetts, and
County Bar Associa¬
Customers
ber
Served
31
Decern-
——
Generating Capacity—Kw—
(Special to The Financial Chronicle)
John F.
Ganley, Jr. is now affiliated with
Cooley &
Company,
100 Pearl
Street, members of the New York
HARTFORD, Conn.
.
-
Plant
Electric
—
Stock Exchange.
2 With
728,900
348,560
109%
System Peak Demand
659,400
376,000
75%
3,283,262
2,411,94a
36%
$2.55
$2.00
28%
Number Common Shares
„
Outstanding
Parker, Connaway
Earnings
per
Share
(Special to The Financial Chronicle)
PORTLAND, Ore.—Vivian A.
and Cleo V. Hickman are
now with Hunter Parker, Conna¬
Bish
&
way
Morrison
Street.
,
,
ST.
PAUL,
Hamilton
in
and
is
East
has
of Juran
-
Adds
321
R.
added to the
& Moody,
Sixth Street.
our
1957 Annual Report for
and information
relating to
our
statistical data
broad service area,
OKLAHOMA GAS AND ELECTRIC
■
Minn. —Donald
been
Write for
Southwest
430
Holden,
Juran & Moody
operation
Pacific Coast
Stock Exchanges.
the
With Cooley & Co.
staff
year
Co., 45
members of
Street,
York
New York and
at
pacity scheduled to
become affili¬
Witter &
$49,932,000
Percent Net Income to
Inc., 93
North Harvey,
DONALD
S.
Oklahoma City 1,
KENNEDY, President
Ex¬
Joins Dean Witter
law firm of Sullivan & Worcester.
of the
Stock
(Special to The Financial Chronicle)
Southwest.
still
for
York
change, on July 1 will admit Her¬
bert Lloyd to partnership.
August,
Operating Revenues
Lloyd
Cohu & Stetson, 26
Broadway, New York. City, mem¬
1957
joined
1957,
member of the Boston
a
of
hub
the
and
July 1.
Winslow,
in 1957 at
continued its rapid expansion
.
.
Massachusetts De¬
York
Winslow, Cohu Firm
OKLAHOMA GAS AND ELECTRIC COMPANY
partment of Public Utilities, and
held
that
position
until
1956.
riod
(4) MANUFACTURE
New
Detroit Stock Exchanges, on
In
General
appointed
was
Counsel of the
margins
throughout the pe¬
including 1961 are ex¬
pected to be 20% or higher.
partner in Smith,
a
Hague & Co., Penobscot Building,
ap¬
Public Utilities and held that po¬
July 1 will
partnership J
DETROIT, Mich.—Hal H. Smith
tions.
to decreases in
forecasts.
Gross
to
Commissioner of the
Department! of
a
American,
owing
on
Grant
Smith, Hagie & Co. to
Admit H.H. Smith, III
are
happy.
equipment probably still is a long¬
distance ahead.
Exports probably
will
decline
further.
There is
1958.
Exchanges,
admit John
re¬
questions
these
to
are
To Admit John Grant
The
The turnaround in
business expenditures on plant and
by Mr»- Temple before
Business and
Finance
Forum, First National
longer "How deep
How rigorous a
be
can
answers
less
consumption, and that in-
Annual
no
low normal?
just ahead is that production cur¬
-
is
now
it
go?", for the answers are
developing, and they are reassur¬
ing.
Rather
the
questions are
"How long will business stay be¬
the controlling fact for the months
below
major anxiety about busi¬
The
ness
they
Hutchins & Parkinson
every
will
either
liquidation
for
in
that
depression is small,
major world
absolute amount. It
in
experience has shown
cycle much inven¬
tory liquidation takes place after,
not before, the upturn begins.
tion,
depression or by grave fi¬
nancial
difficulties, have com¬
pleted the downward leg within
a
year or thereabouts.
severe
are
true, however, that im¬
provement, in production
must
await maximum inventory reduc¬
Nearly
of
high
inventories
that
true
not
is
world
likelihood
is
It
history, except those which have
been accompanied by a spiralling
the
I am sure
doing so.
III will become
tions, within this calendar year.
weakness.
old..
closed,
or
increase in industrial opera¬
some
than
all of the business declines in
Since
and
correct in
period, which we have apparently
entered, should be followed by
By midsummer the business de¬
cline will
this gap must be
for inven¬
indefinitely.
It may be closed in part by falling
consumption, but mostly by in¬
creasing production. The conclu¬
sion is that the "bottoming out"
narrowed
% *
;•
dence,
are looking to the
with great confi¬
Massachusetts
tions,
-
the
of
Adams, being
body in 1943;
that
1940
as
He
Adams,
he
to
from
served
North
to
where
Mass.,
from
in
1958, 1959, and 1960 are
higher than previous predic¬
,.
New-
S
course
tories cannot supply it
bile model
may
bring new lows in
the indexes in July and August,
but if so these may be considered
part of the long-expected ''bot¬
Mudge,"
of
-
York
setts Bars and
predicted
for December and for
the
Stern,
an
increase
summer
average
from
the
Army in 1918. A graduate
College (A. B., 1923,Phi Beta
Kappa) and the New
York
University School of Law
(J. D., 1928), he was associated
Amherst
of
Temple
-/%, '
change
term
a
or
shutdowns and
Alan H.
of
Commis¬
Aug.
end
an
the
which
130
the
at
increase of 6.5%
year.
The capability
1957,
for
than
more
kilowatts
a
member' and
(1) CAPABILITY of the electric
power systems of the United
million
as
In due
stopped.
has
future
BOSTON,
"Bottoming-out" Period Noted
opera-
schas
n
slackened
-Chairman
Findings Summarized
the basic
tio
•
Businessmen
-1
"
'0
dynamic influences in the
economy
are
firmly
longer
supplied
cline in indus-
sion
however, there
run,
development expenditures, in pop¬
growth, and not least in
aspiration, enter¬
prise and faith.
apparently is of similar
size.
overall
ex¬
disappointed.
ulation
In the second quar¬
annual rate.
In
of
very
optimistic
doubts.
no
between production and
consumption was $9 billion, at an
has risen
suspecting
not I be
be
may
The gap
considerably.
Commis¬
the
made in coop-
Steel
196 3c He
5,
ment.
were
the qualities of
for
demand
we
founded in immense research and
run.
In the first
the
be
American
reduction has been
most rapid in our history.
ruary,
Overly
be
for
will
longer
should
ventory
or¬
rate, of
may
shortages.
war
reasons
are
pectations
in
manufac¬
bility,
r-,:.
:
the
encouraging. New
the
recovery
vigorous.
stability
industry, from
to
took
are
Member of the
a
constructure
ture
weeks
reports of the past few
Securities and Exchange Commis¬
the. entire
and
Business
SEC Chairman.
May,
1958.
This
dynamic growth for the longer
Gadsby Redesignated
pub¬
was
of
ery,
semi-an¬
nual electric
that
World War II rate. While doubtful of vigorous recovthen, in the short run, he optimistically contemplates
while
war,
good
These
opera¬
with post
million
.
23rd
increase in industrial
some
the
time than it has been
a
the
that
economy
are
pretty well stocked,
they still owe a lot of money.
and
"bottoming out"
a
Sees, however, turnaround in
business plant-equipment expenditures still a long distance
ahead, and a slower rate of growth for a time in comparison
The
kilowatts.
almost
have entered
we
period and should expect
expansion
ox
Temple concludes
our
slower for
making
People
tions within this calendar year.
capac¬
1957.
during
program
Mr.
in
growth
since
By ALAN IL TEMPLE*
Executive Vice-President, First National City Bank of N. Y.
survey
think
to
reason
The Economic Outlook
recently issued
shows encouraging progress in all directions even though
record highs achieved do not match 1957 year-end predictions.
),
35
•
COMPANY
Oklahoma
36
Financial Chronicle
The Commercial cind
(2748)
Continued from page
which confer upon
29
for
things
him the exclu¬
which
us
sive power
his
Tke High Cost oi
costs o|
government,
'•
conclusions
their
Basing
such
Colin
as
Clark,
have
of
..
of,
rises to the range of
government
20-25%
income
the earned
of
the
people, large segments of the
population will insist upon in¬
The mood of our
country is one
of apprehension
many of ourmoney as a means of easing the people have an •uneasy intuition
burden 'of direct taxes. In other, that something has gone wrong,
and
they look for a scapegoat.
words, they demand inflation.
It has been demonstrated many The industrialist calls the politi¬
the
ill
creases
of
volume
remind
the
once
cian
government
concede,
leader
beyond
above
point.
this
32%!
And
progression
We
are
now
to
be
Those
and
elements
Each one
privilege
special
nounces
on
other
politic.
body
our
inevitable
the
appears
at
of
as
(i.e., total deposits and
for
currency
,
the
general welfare.
Unfortunately,
.
accusations
-
many I
.
in
de¬
In
tained in costly storage,
In'
under their
many
to
legislators,
ministrators;
citizens
and
public
from
The .most
-
of
V
;
vociferous number
to
-
,
large and
our
If
I
were
^
to
take
a
man's
which the
me.
But
law
would
if
are
,
away
onerous
the
Fourth—Those
from
away
to justice.
In current the¬
government promises: to play
or
There
are
•
•
welfare." The union official insists
other activities which
that
he
must
have
special
dishonesty. In other words, we, as
voters, call upon government to do
laws
others
make
wills
Happens Under "Pseudo-
Charity"
by
There
contemporary
who, after
principles
is
state
Today
shop
new
days when Florida
was
only
accused of
hundreds of business firms
every month
various parts of the Sunshine State
prosper! Here are some of the reasons
why
business,
too:
-
-
MANPOWER —Workers
happier, stay
on
-
•
-
Every
many
1
.
.
.
.
coming to stay and
perhaps they apply
•
.
—
up
•
.
Lower than elsewhere
maintenance,
other phases because of
air,
rail, highway,
sea
facilities.
Florida leads the Nation in
GOVERNMENTS
-Friendly to business
state and local levels;
plus dependable electric
no
at
punitive tax levies.
other
has
of
men
gra-;
,
good¬
better
to
FLORIDA POWER & LIGHT COMPANY
MIAMI, FLORIDA
fortunate,
And
lover
every
when
of the
care
devoutly
liberty
of
in
it
un¬
voluntary
Sifts and
charity. But he objects
imposition of a "psuedocharity" by government on un¬
the
to
willing givers as immoral and un¬
economic—injurious alike to the
recipients and to the forced con¬
tributors.
He
foresees
these
results of such action:-
sure
-
First—The victim is deprived of
what he produces, which destroys
to
produce—as- well
his faith in the two Commands
as
meats—"Thou
shalt
not
covet"'
and "Thou shalt not steal."
Second—The
unearned
one
who
received
gifts
is relieved of the
need to produce which, likewise,
destroys liis incentive. and leads
politician
extended period of
an
power, concludes that
and wisdom are so much
power
alike
that, since he wields power,
he must also possess wisdom.
He
is converted to the seductive the¬
sis that election to public office
the
endows
he
official
and wisdom.
power
has
both
point,
distinguishing
difficulty-
between
with
At this
what' is
•
morally right
politically expedient.
and what is
Such, in barest outline, is our
present situation as I see it —an
.
overextended
government,
exces¬
sive
taxation,
politically r en¬
gineered inflation, mistaken ideas
about economics, moral
confusion,
American character
and faith?
Lays
The
and;
Blame
fact
I>
is
that
All
of
,
Us
all of us,
you
share
niust
the blame.
got off the track.
past 50 years we have
Somewhere
Over
On
the
we
we have actively
participated in — the propagation
of a misplaced faith in the power
of
government tor accomplish all
sorts of social, economic and even
upon government; or else
have, with great docility, ac¬
we
quiesced
while
functions
been
of
the
and
powers
have
government
extended",v accelerated and
an enhancement
centralized. Such
of
political
:
at the expense
power
social
is
power
correctly
labelled "socialism."
tendency
v
American
of the
for
prerequisite
of/what
piece-meal
intrusion
to
force.
production
With
voluntary
a
way
among
to "whip up"
the ever-in¬
creasing non-producers. Even the
original beneficiaries become the
victims
of
contrive.
the
The
tive is now
"stick"
planners
over-all
of
incen¬
of
coercion.
The
Who hoped that their
blueprints for salvation
be
see
thing they helped
"carrot"
discarded in favor of
the
accepted
that
about the
might
socialism
that
does
ad-:
called
political
be
—
not
encroach
what he conceives to be his
upon
territory.
own
We
tend
to
be
apathetic about the general social¬
istic
drift.
In
many instances we
actively support socialistic meas¬
ures under the guise of promoting
prosperity
or
"developing J;the
community." But we should now
be
that
aware
what
threatens
to
socialism.
others in
influence
public
duty to actively
us is total state
Leaders in business, all
engulf
a
position
to
opinion, have a
socialism wherever it ap¬
oppose
is ancient
tyranny under a modern disguise
—even though it has enlisted some
misguided idealism in its behalf.
If the promise of America is to be
pears, because socialism
redeemed
oppose state
level—philo¬
sophical and spiritual as well as
economic and political. If our sole
concern is
merely that aspect of
socialism which directly confronts
our own company, or our own in¬
dustry
must
we
socialism
on
every
or our own
community, we
may
tions.
More
production destroyed, the powers-
now
complacent
.
neglect, if not by our positive ac¬
as a
Third—As production inevitably
declines, the coercive State must
might
be
sustenance
aid.
resort
to
vance
government which
paternal
a
business manager, in common with
citizens in other walks of life, is
contribute to the advance of
socialism on other fronts by our
him to depend for his
that-be seek
..."Helping Build Florida"
the effect¬
employed by
or
means
taking
doubts
grave
propriety
demands his vote
by the greatest expansion in FP&L
history!
program
he
welfare staters.
believes
on
power,
continuing
But
on.
comes
num¬
ber of ports of
entry.
This advertisement is
part of our
are
housed, better clothed,
fed, better educated, and
his incentive
TRANSPORTATION!,
in
Latin America.
.
.
setting
mild-climate economies.
— in Florida, the
Southeastern U.S., neighboring
assured
.
are
center.
in construction,
MARKETS -rGrowing greater
.
being unchar¬
person
see
iveness of the
"
COSTS
are
the job, do
by the day
..
'
-
better work. Skilled technicians
easier to recruit.
©
the-welfare
Such accusations
about the
vacation fun
a
in
to your
of
off—better
the
the
history
exercising
The
Any person who, dares to ques¬
tion .these
immoraland uneeo-.
nomic
better
are
in¬
many
of the well-intentioned
Government
:
so
Gone
moral
•
tuitous.
FLORIDA'S BUSINESS FRONT, TOO!
their
a
stances
are
to
to
weakness.in
i
ap¬
power
conform
inevitably develop
of
What
will wants to
THERE'S GOOD NEWS ON
have
powers
itable.
Mr. Businessman...
who
of
L
'
.
moral purposes. Implementing this
faith
we
haye thrust; enormous
Hood, robbing the rich to
the poor., The theory is thor¬
oughly immoral—but the practice
is even worse.
The~ promise is.
soon
forgotten and Robin Hood
robs riqh and poor alike to pay
Robin Hood. AH this, in the name
of the "general welfare!"'.
'■/
of
it
of
•
immorality
propriated the political
.
farm income!
they seek
they employ. ;
means
They
devo¬
very
ends
pay
punish
portion,
a
noble
Robin
be¬
by some strange mental
vote
force; their
the
blinds them to the
these.
..
ory,
we
we
of
one
This is not the road to prosper¬
ity
have rationalized a
code- of ethics, which provides that
process
not;
,
.?■
longings by. stealth or violence, it
Would be theft — an immoral act
for
is
i(;i must first take it
you.
people
% A,[
to
to
give somebody else anything,. encouraged—nay
can
reach for unearned government
hand-outs.; ;
.
of
production
Therefore,
before 4 government
give you something it must
first take it away, from so-meone
else; and,, conversely, before it
discouraging feature
a
in
factors
can
these communications; was; the
apparent eagerness of
three
ernment
;
-'
tion
land, labor and capital; gov¬
are
ficiaries. of public/"economic and
social Uplift" projects in all parts
of the country.
resort
.
The
ad-*
bene¬
assorted
guidance, government
,
private
•
that,
Thursday, June 19, 195$
.
clothing, and so on.
But they personal liberty in decline and a
glibly gloss over the fact that gov¬ growing political idolatry. < b %'>
ernment
doesnot
produce
the,
Where lies the blame for our
economic goods it promises to current
predicament — so-foreign
dispense; people produce them. to
the-promises, of the original
•
elected "officials,
is
votes
our
curity, i.e., at least a minimum of
economic
goods — houses,
food,
Second
Commission, I received
written and oral statements
from
Perhaps the
the claims of
Will provide us with economic se¬
the
with
of
those, seeking'
such
work
my
campaign.
blatant
more
power
with an at¬ essential
for
national
survival!: another man's property and use
regimentation of The scientist
implores government for the special benefit of ourselves
agriculture. In spite of these gifts, to
provide
generous
funds for or others, we have merely to call
during the past six years there "research essential to • the Na¬
it "promoting the general welfare"
has been a *23 % decline in net
tional Defense and the common in order to remove all taint
tendant
election
Hoover
these
government aids to education
set¬
maximum
for
economic action.
—
products main¬
are
talking about, take any recent
am
to set quotas, up
cases, political
expediency' becomes the guide to
'
of unwanted farm
without working, but
favor
in
laws
wage
stage
down.
or
of the vastly increased produc¬
tivity of our industrial machine, we businessmen look for govern¬
there has occurred, since 1933, a ment subsidies or loans when we
sharp decrease,- some 5.5%, in the cannot obtain funds from private
purchasing power of our money!' sources. The farmer demands a
guaranteed
income,
subsidized
There are many areas where
electricity, irrigation, and tools.
government has. intrudedJnto. the The doctor,, is
opposed to these
domain of private responsibility
socialistic measures and to social-,
and has substituted the weight of
izecl medicine, but wants sub-;
political factors for the interplay sidized'
training,
research
and
of economic factors as a regulator
laboratories- The educator points
of our economy. We all know the out the, deplorable dowering of
depressing story of the farm sub¬ moral
standards
which
results
sidies which, in the long run, have when
a person is deprived of the
injured,, not benefitted the farmery
responsibility for his own welfare
They; have resulted in $8 billion
and
then
demonstrates I that
,
the
also, the
and
have - sub¬
stantial basis in fact! For example,
appear
declaim
who
-
minimum
ting
-
of
had
only for the
which economic goods may be
laws. When government is
given authority to adjust farm
prices upward it acquires author¬
ity to adjust them downward, and
indicated by the fact government largesse —when
outside banks) while the popula¬
tion increased only 32%.'In spite
,
favor that when we
government the au¬
wage
the
that from 1933 to 1955 there has other fellow gets it. But when his
interests
are
involved, he
been
a
500%
increase
in
the own
money supply of the United States nationalizes hist project as being
schedule,
clamor
*
multiplier of wealth, some sort of
access to a fourth dimension from
to
for
,.
—
accusation
to
well
be
.
thority to give, we automatically; voting.
'
;
concede
the
authority to take.
For endless examples of what I
and
venal
labor
who
those
government
,
that
would
it
Perhaps
the
self-seeking; the
his
political
assumes
responsibility
for "the
hencemen paint the industrialist,
economic welfare of its citizens,
as a greedy monster;
the teacher,
the
20-25%
range
in
take
of
earned income is quickly reached. the minister, the doctor, the work¬
all; point the
finger of
In the United States we are far man
times
political redistributions of
of these
to
.
which they must eliminate.
immorality
who would excuse the
.
con¬
cluded that when the tax take
this
just
writ large, and yet there are some
property on the ground that they
provide them with an educa-*
are legal!
<
"
tion, a job and a pension.
Old
disaster
assistance,
area
redeIt has been said that the people
people
are
content,
for
the
velopments, Federal aids to educa¬
moment, with generous retirement never give up their liberties ex¬
tion, social security, unemploy¬
proviieges. And the man-in-the- cept under some delusion. We
ment
relief,
F ed e f a 1
Health street demands from government have been losing our liberties
programs,
minimum wage laws, a subsidized house, food, medical under the delusion that govern¬
loans; to
poor
business
risks,
care,' and
an
ephemeral thing ment has some competence in the
controlled money costs and others.
realm of economics, some magic
called "economic security."
economists,
competent
The welfare
kind of thing
individuals.
is
state
of
government
Young people want
for example, water resources
and public power developments,
on
.
;
violence, all under the guise
"conserving labor's gains."
;
as,
studies of the financial behavior of -
nations*
of
Redemption
the gov-, bid fair to rival the farm story,
so
to inflation.
eminent resorts
private
would
we
ourselves as
shrink from doing for
to coerce and regiment
members, to abolish freedom
contract, -and
to
resort
to
.
there
voluntarily
is
opposition
than
50
years
ago,,
the
great historian of Rome, Theodore
Mommsen, visited our country. At
a reception in his, honor, he was
asked, "Mr. Mommsen, what do
you think of our country?"
The
great scholar replied,
years
"with 2,000
be¬
of European experience
have repeated
Europe's mistakes.
fore your eyes, you
every
one
I have
no
But
we
of
further interest in you.
who
love
our
country
easily abandon interest
in its welfare. Our country today
cannot
so
crucial test in its strug¬
gle for survival. I believe the is¬
is facing a
sue
will be decided in the arena
ol
187
Volume
Number 5752
.
.
The Commercial and Financial
Chronicle
.
(2749)
moral values—not
the field of
on
Our current situation
battle.
well described by
of
one
spiritual values which I mentioned
earlier.
was
when
and
A
victory
there is no longer a
embarrassing gap be¬
preach the
the
that
when
I have seen
we
gospel of freedom to
peoples
of
the
first make sure
Z"
God,
We cannot sell the goods
Dr.
is
these
scholar
than
that
of
people
our
have
rights
of
and
social
should
munity.
be
of
the
human
self, they still
are
such
of the Master. To force
into ways of righteousness
by
police
into
to
powers,
social
ways, to
them
torture
to the
men
ord of
ment
with
mass
psychiatry, to
discipline, was
terrorize them into
in
the.
America.
creed
This
-
of
became
but
spiritual
rather
Trend
government
Police
ulcers
our
from
State
One
cannot
help
recalling
prophecy uttered by
English /scholar and
Macaulay,
so
in: 1857.
*
the
he
"Either
Caesar
Napoleon
some
or
said,
Will seize the reins of government
with a strong hand; or your re¬
public will be
fearfully plun-
as
dered and laid waste by barbarians
t
fn the Twentieth Century as the
Roman Empire was in the Fifth;
r-with this difference, that the
Huns and Vandals" who ravaged
the Roman Empire came .from
without, and that your Huns and
Vandals, will have been engend-"
.
and
-
by
frequent.
What
the
were
fundamental
so
the doctrines and creeds
much
\yhich distinguish
sect
one
de¬
or
ular
from
in
order
wrote
in
that
the
society
might be genuinely religious. DeTocqueville saw this clearly when
he
1835,
America takes
the
"Religion
direct
no
in
part
in
government of society but it
must
be
ered within your
society
•
Is there
take
own country by
institutions."
ahead which will
a way
of
out
us
this
morass?
Is
is
possible
only
both the Declaration of
life?
ence
believe there
it is also
it
is
the
only
is—and
that
out.
But
by means of political
It is through the re¬
not
nostrums.
habilitation
of
way
those
moral
and
it
is
composed of self-disciplined indi¬
/ Z
a way to recover, the sanity
and balance that once marked our
I
if
viduals.
there
;
These convictions
and
framers
lieved
ing
the
Independ¬
Constitution.
of. those
that
visible in
are
they
documents
were
The
be¬
transcrib¬
"the
laws of Nature and of
Nature's God." The supremacy of
YSTEM STRENGTH for
OUTHERN
based
such
resources
underground natural
goals
service
and
and
or
accomplishments
:
der." And
as
;
up
-
for
turn
pulsive drinking.
-Second
—
Let
take
undertake
us
that
re¬
us
re¬
to
the
many
the local
on
able
to
level, the
apply more
scrutiny
to
the
government
corrective
Fourth
at
must go!
powers
government, let
as possible
as
their
alcoholic to stop his com¬
an
in
of
and
to
action.
Let
—
"acts
agents
once
an
orderly demobilization of
resolve
us
Continued
on
that
page
Today
NEW ORLEANS-THE PORT CITY
a
ii/atto...
of the
meant
not
or¬
men
'
\
discussion
to
I
imply/that
problems
to the economic and
els, but I do
/
;
-
foregoing
have ; not
there are
peculiar
political lev¬
as
electric
capacity
and
These
are
continuing
directed
to
customer
level—fn
the nature of the universe and of
ELECTRIC
my
judgment, is
ues
which
ican
I
believe
that
such
the
supporting power of cosmic
sanction, for God intended men
to be free.
"The God who gave us
life," Jefferson observed, "gave us
liberty at the same time." We will
need conviction, courage,
strength,
understanding, humility, compas¬
sion
and
what
William
"those
as
faith
INDIANA
commerce
needed
by
i$
one
industries to
many
comes
of the
this
reasons
the multitude of
for the
For to
area.
raw
New
materials
wide variety of plants. The very waters that,
a
bear that port traffic supply industry abundantly with
fresh water for
manufacturing
V
purposes.
a
part will call forth
our
on
of
Orleans' wharves
There
basic to the Amer¬
are
dream.
effort
to
in
set
James
other factors for the city's distinction as a
cooperative workers. Nearby
are
amply supply
power
many
like natural gas,
kinds of industries.
Every form of transportation
to
friendly and willing,
resources
sulphur, salt, petroleum and timber plus low-cost electric
inland
motion
referred
are
plant city. The people here
the city—ocean,
serves
waterway, rail, air, highway. Facilities
connected, efficient; rates
low.
are
-
are
inter¬
•
i
tiny, invisible, molecular
moral forces which work from in¬
dividual to individual, creeping in
New Orleans offers
through the crannies of the world
like
soft rootlets, or like
the capillary oozing of water, but
so
you
the
It has the
give them time, will
hardest "monuments
/
'round
of
>
put
on
the mantle of
inevitable
a
Trade Mart,
intent
we
I
that
the world
such
now
could
expansion
dynamic
a
is
what
of
of all
as
on
We
of
the usual trade aids plus
International House, International
Foreign Trade Zone..
as a
\
v
/
;
)
plant city New Orleans is well worth yoqr
And to make your
tion
easier,
Industrial
leadership.
ice
supply that leadership if
emulate the Founding Fathers
can
and
year
into foreign
of "These Industries Chose the NEW ORLEANS Area"
be
The world looks
for moral
Yes,
>
to tax the capacities
mankind!
America
to
are
need for
go
investigating. Write and we'll gladly send ypu your copy
spiritual growth and material pro¬
ductivity
ones:
you
decide to
am
change course, I firmly
threshold
service
your
unique
you
prophet
While
doom.
mild, pleasant climate
high production. If
markets, at
these
Here let me disavow any
to
you even more.
many
Averting Disaster
investigation of
a
New Orleans loca¬
invite you to call on our experienced
Development Staff, New Orleans Public Serv¬
Inc., 317 Baronne Street. Valuable staff assistance
^comes
to you as a
"justice, mod¬
us
we
confidential cost-free service. Contact
today for the full plant-profit story.
"frequent recurrence
fundamental principles/'
What
taken?
can
EVANSVILLE,
influx
rehabilitation
of those moral and spiritual val¬
specific
I believe
steps
must
be
Serving NevJ
that no one, no
exalted his position,
determine for 172 million peo¬
matter
COMPANY
Actually, port
God's moral
we
GAS and
NEW OBLEANS-THE PLANT CITY
to say that if
right at the deeper
their understanding of
mean
not
are
virtue"
are
critical
just
'Third—Of the
.
evidence of the faith
"
the
In
to
Offices:
people
as
be
But if
power
their idea
on
in their devotion to
General
as
-
convinced that disaster lies ahead
development.
INDIANA
socialism, that it will
to break the habit
subsidies
politically
privileged positions
For
as
eration, temperance, frugality and
SOUTHERN
businessmen,
States.
rec¬
vailing concept of the cosmic
unless
gas storage.
industrial
privileges,
truth that every social order de¬
rives its sanctions from the pre¬
believe
in
special
main
pattern laid down by .* God forman's conduct in society. This was
in strict conformity with the basic
the
«
fight to retain
its
and government protection.
freedom is to live, all
any
us
struggle
a
all the
way; every pressure group
in the nation will
uneasy
other group.
In
one respect, this is the easiest
step
of all—we need
only refrain from
passing more socialistic laws. But
we
have become so addicted to
hard for
the
and
secular
of
„
Will
trying to set
ordef
men's pride."
,
unions,
or
is
health
Fathers
rend
f
farmers
social
discovery and declara¬
•
which, if
,
it.
code—they can tinker
another,
but
rather the fundamental belief in with economic and political prob¬
lems from now until doomsday
God which they share* It was a
and still come up with the wrong
basic American principle to main-answers—which is precisely what
tain a strict
separation between we
have- been doing in recent
church and state, not because of
years. It is a case of putting first
any hostility to religion; quite the
contrary. The state was to be sec¬ things first, and the first thing, in
nomination
your, own
i
of
one
were
recur¬
regarded as the first of
their political institutions." A free
,
by
to
thei in the sanction o£ "divine Provi¬
or
to fundamental principles."
rence
the
America
all
act not of will
"
virtue,
great
himself,! to
ducted
back
of
principles referred to by Mason?
I
believe; they
were,
broadly
on/
speaking, religious principles; not
statesman,
Addressing
this
progres¬
This
sanity, and it will be
stop
drift toward collectivism
by end¬
ing all further private raids on the
public treasury — whether con¬
transcript, and their enact¬
an
eration, temperance, frugality and honor."
its
by-products"; corruption in high
places, juvenile crime, the perpetual world crisis, the cruelly op¬
pressive tax burdens, and
■v
of
some
us
books.
our
their
liberty can be pre-; dence!'..'for
actions, they
served to any people but.'
.by a> pledged to each other "their lives'•
firm. adherence to justice,. mod¬ their fortunes, and their sacred
i If this trend toward the
police
State does not frighten us, then we
get
,
Toward
to
control
j In effect, the Founding
a
.
.
i'ju'.
and
external
tion."
r
' blessings
bind
matters indifferent, merely a
con- :
order
never
to
as
fessional, to hypnotize the social
" r
First—Let
on
road
follows:
legislate them
by laws, to principles, human laws are, when
their evil" entitled to obedience save as to
.
"V
na¬
now
This could be done in five
as
from
...
f
its
express
con¬
interpenetrate all Rea¬
son as such.
They are eternal and
immutable,
tn relation to such
self-anointed
Significance.
cerned.
steps,
bureaucracy by the
sive repeal of the socialistic laws
progress
brainwash
•
so
persons
the
37
and
ture
humanitarians, teaching and a preaching land.
yrtio advocate these measures have Education by conviction has been,
■?: convinced themselves'that the sec¬ our ideal
The teaching per¬
ond of the two great Command-. suading mission we believe is the
ments,"Thou shalt loye thy neigh¬ way of social reform.
/
bor as thyself," can be enforced
In the Viginia Bill of Rights,
: by the police power of the State
drafted
by George ; Mason- and;
and
that
when
this occurs
the
adopted on June .12, 1776,!there;
"; fifst, "Thou' shalt love the 'Lord appears this, statement in Article
j
thy "God," ceases to have much 15: "No free
y-
principles 'were
human hands; indeed,
command
Cod's law of love, people can be
coerced
into - "doing
good"J for
their neighbors.
It appears that
"
Such
They
men
scribe to the concept of the New
and Fair Deals—die idea that by
the
consciences
propose that these decisions, and
the problems connected
therewith,
be returned to the
political
laws
Go ye into all the world and
teach
all
nations—was the last
been
of force for
of
preached and taught but not other¬ made by no
be forced upon the minds' if they did not antedate
deity it¬
ing, just as some believe that
Christianity has been tried and
found wanting. Many of us sub¬
substituting man's law
teacher
noted
of! lence, altogether regardless of the
of man, these attitude of those who wield the
the individual
physical resources of the com¬
these
race.
Many
Cor win,
economy, writing of "The 'Higher
Law'
Background
of
American
wise
converted to the idea that freedom
has been tried and found want¬
j
and
S.
.
order
the
today America is moving rapidly
in the direction of a police state,
j
Edwin
this
can
answer
responsibilities
do
we
Morass?
accomplished?
to
not have in stock.. The fact is that
s
be
better
no
ideal
mon
conviction.
no
This
.
we
carry
to
by Dr. Ralph Cooper
until recently Presi¬ Constitutional
Law,"
describes
dent of Lafayette
College. In an' this sanction as follows: "There
inspiring address entitled, "Those are certain principles of right and
Who Would Have Freedom From
justice which are entitled to pre¬
vail of their own intrinsic excel¬
Tyranny," he said: ".
Our com¬
believe in it—and practice
it—at home. Otherwise our words
that
of
given
Hutchison,
must
we
believed
was
from its correspondence to
law superior to the will of hu¬
man rulers.
that
oppressed
world,
Out
rehabilitation
personal example."
means
Way
Now you may
ask, how
tween one's stated aims and one's
This
Constitution
stem
a
from which one merits the
wide
.
mili¬
our
tary commanders in these words:
'.. "It is the sort of moral crisis
only
the
how
n(u>
ple their day-to-day economic and
social decisions concerning such
matters as wages,
prices, produc¬
tion, associations and
others.
So I
4
uRKons
Public Service
Orleans
with low-cost electricity,
natural
gas,
and transit
38
The Commercial arid Financial Chronicle
(2750)
38
Continued
•
"The field day
r
of Our natural rights.
all, let us hold
higher before our eyes the banner
of individual moral responsibility,
.
acknowledging
that unless
each
this finds
as
statements
We
ments
the
and
•
Sermon
has
last half
of
1957,
The
and
of
mands
rapid devel-
of
the
necessary
security,
national
created, on
one hand,
*
year.
-
the Twentieth
itless
opportunities
for
Cen¬
the
Convention,
Benjamin Franklin
predicted thgt the Federal Union
can only end in despotism^ as1
other'forms ihave done before* it,*
when the ; people shall becomeVso
corrupt as to need despotic gov¬
ernment,* being • incapable of any
other."
And when- asked by an
.
$37 billion in 1957. But don't un¬
derestimate this significant com¬
parison: Except for these two alltime peak years, this year's total
is higher than that for any other
i
-*
•
;
.
;
The importance of science and
technology ;to the /economy is
clearly revealed by the history of
Now the inventory picture looksn c e on
Measures. .It' is a bit better. Many companies are;
'
brought home ;to everyone Who; scraping the bottom of the barrel.;
r examines*
your* rpcord that, your' Stocks,; on- a seasonally adjusted;
i
intere^ yoqrractivities and your' basis; * declined $800million in;
y ;
•. * *'; V'■?;
I influence are so closely cbnhectad April. u. :•
:
r^cted/ to the ^
advances of,,.,
Commu<
in
bloc
development.
Smclair
W«eks
and
This
jtheinterests'of,th'b'business;
commuriity and with the national panies
-
I with
-
science educa-
Weights
that your leadership and
anxious citizen, : "Well} Doctor, tion and in the making of sput- guidance contribute'■ greatly
to
what have yomgivemus, .a repub¬ niks, intercontinental missiles and; economic stability and growth.
lic or a monarchy?*^ Franklin re^'i nuclear weapons; American pub-I
^
: v v
:: ' ' •
*
plied, "A republic—if you can lic*opinion Js determined; that ourf\ ^£eon'omlerSiihatiob'''-f^-;.: :
own
private and
keep it/'
i
"How
long will
endure?"
asked
the
the
.
David
inant."
economy
in hell
are
-
reserved for those
nology in economic progress. Sci¬
entific
research has
played an
important role in creating new
products, in increasing productiv¬
ity and in other ways raising the
standard of living.
(Special to The Financial Chronicle)
Regardless of
KANSAS CITY, Mo.—Floyd M.
pace
Baird has become associated with
McQueeny- Hendon, Inc., 440 East
64th
Terrace.
He
was
formerly
with Mutual Distributors, Inc.
Okla. Gas & Electric
Offered to Investors
improving their inven¬
*
An underwriting group managed
jointly by Merrill Lynch, Pierce,
Fenner &
Smith and White, Wel d
& Co. on June 17 offered
000
Oklahoma
Gas
Electric
first " mortgage;
bonds due June 1,1988. The bonds
are
priced at110 J % arid accrued
interest, to yield 3.616%. * The
group was awarded the issue at
competitive sale June 16 on a bid
of 100.3099%. 1
ti,
'
Net proceeds from the financing*
applied by Oklahoma Gas
and Electric to payment of part of
will be
the
strengthening
gram.
Thus, with sales
somewhat, some
buying again forinventory which means iriore pro¬
duction and more jobs. Steel mill;
$15,000,-
Company: • 3 % %
tory position.
firmsr have been
rind
*
of its
costs
The
the
construction pro¬
t' .'.l
bonds
of
option
/
^
redeemable
are
the
nt;
at
compaiiy
-.
With McQueeny-Hendon
;
S15 Million Bonds of
'
who,
in a period of moral crisis, main¬
tain their neutrality."
'
some com-*
■
prices ranging 4'rom 104.88% to.
operations advanced fhorrt a low
100% but if they are redeemed
of 47% of rated capacity in the •
i
;
prior to June 1/ 1963 through a
last week of April to 61% in the
to give a
debt refunding operation having
V
ards—under the able direction, of t ^e current economic situation— first week in June.
an effective cost of less than the
Dr. Astin
will expand its pro-; j^0th the headaches arid the
Other signs of healthy revival
hopes.interest rate on the bonds, re¬
gram is one assurance that we are.
]por {he last several weeks, busi- are: Employment in May rising to
deemed, then the regular redemp¬
trymg to meet the needs of the negs s{atistics in general have 64.1 million, a jump of 1.2 million
tion premium will be increased by
ultramodern age.
from April. The number of job¬
looked better than at any time
3% pf the principal amount. For
less dropped by 200,000 to 4.9 mil¬
Among the opportunities un- since the decline started last year,
the sinking fund the bonds will be
One last word; more than 700
ago the great Italian poet, folding to this generation is the- The field day of the hand-wringDante, said: "The hottest places, greater use of science and tech- ing pessimist is about over.
!
years
are
that
mean
is overwhelm¬
r1
important role
I have been
brief run-down on''
Starr Jordan, President of .Stan¬
ford University. He answered his
own question:
"So long as the
ideas of its founders remain dom¬
:
must
science
public^cience ■&because of your
£!?
^?cV
in
the economy,
that the National Bureau of Stand-,
Republic
late
inventories, in rela¬
tion
to reduced demands, have;
caused layoffs in manufacturing,;
especially in autos and other con¬
sumer durables and in producers'
durables. ' '•
r
'*
Excessive
\ the National Confere
* - *
National. at¬
nist
ture
\
tention \i§ d|-*
the
which is the fountainhead of fu-
<
ing.
how and to add to its facilities so
;
natibn's-expanding
realistic optimism
business as
step up its capital
improve its 'know-
as
to
produce the amount and
kinds of goods the people want.
our
potential for spectacular
economic growth in the next 10
years, the evidence in support of
improve,
always will
spending to
re-
f
good of
mankind.
encourage
ize
and its
■
sales
As
we
{search, including basic research
and
to
"■
;>•
de-; year.
I
continue
'
•
Admittedly, this sum is below
the $35 billion spent in 1956 and
is 17% below the record outlay of
not water down research
connected with the civilian economy.
We must not rob tomorrow
of its chance- to grow strong. We
must
showing that businessmen ine closely our strong economic
to invest $31 billion in foundation and correct its
linger¬
plant and equipment this, ing weaknesses and when we real¬
expect
new
must
political prob- '
lems and,
on/,
the other, lim- '
tury.
I At the close of the Constitutional
♦
differ-
and
survey
military
the frontiersmen of the
.
.
dan gerous
| These measures require bold ac¬
tion. Those who take up the gage
of battle will be the real pioneers
our age,
the
into so-~
ciety and invites tyranny.
Of
a
opihent of science and technology
the
on
living in quite
born into.
Were
the Ten Command¬
Mount—he brings* chaos
are
ent world from the one most of us
expression in such
as
-
of the hand-wringing pessimist is about over,7'
Commerce Secretary Weeks declares in calling attention to
strengthening confidence in job security said to be engendered
by knowledge* of rising employmenf ami* continued personal
income strength, which are weighed with other'plus factors
against minus factors. Agrees our convalescing economy will
not achieve complete health rapidly, but avers the outlook is
bright for better times later this year.
...
•
one of us humbly tries to govern
his actions by God's moral code—
•*;"
-
Secretary of Commerce
;
,
.
for with our own
return for a surrender
; Fifth —Above
By HON. SINCLAIR WEEKS *
*
;
never again will we yield to the
seduction of the government panderer Who comes to us offering
paid
Confidence waned last; the plus factors,, the outlook is
buying shrunk. Inven¬ bright for better times later this
tories piled up above sales.
year.;,... *.
t,v; /
The- Commerce Department an¬
To
me,
optimism is another
nounced in the press recently, a word for vision. When
wei exam¬
fall
High Cost of
Redemption: Moreell
money, in
Thursday, June 19, <1958
.
capacity.
from page 37
The
gifts
..
right
*From
a
now
talk
slower economic
compared
with
Weeks before
43rd National Conference on Weights and
Measures, Washington, D, C., June 10,
•
a
by
Mr.
If
public confidence continues
to grow, if business continues to
spur the upturn, and if govern¬
ment continues to keep away from
gumming the works by unsound
legislation, the economy should
continue to improve.
To get a better
understanding of
the prospect, let us first consider
some major causes of the reces¬
sion. A super-boom in capital in¬
vestment created temporary over¬
1958.
lion.
The seasonally adjusted un¬
employment rate declined from
its high 7.5% in April to 7.2%,
the first dip since the rate started
to
last
soar
that
new
construction
ac¬
tivity went up to $4.1 billion in
May, a 10% increase over April.
Total dollar
five
volume
months
at
for the first
$17.7
billion is
equal to that of the same
period last year. Our Interstate
about
Highway Program will be accel¬
erated
in
the
101.16% to 100%.
The company owns an intercoji-
nected -electric
summer.
Preliminary estimates reported
last week by the Department in¬
dicate
redeemable at prices ranging from
coming Weeks and
mission
and
production trans¬
distribution system
Ibtated in central
Oklahoma
and
western Arkansas which includes
10
generating plants with an ag¬
gregate capability of 906,400 kilo¬
operating revenues dur¬
ing the^ 12 months ended March 31,
T958 totaled $50,577,000 and its net
income $10,055,000. Fixed charges
for the period were earned 6.08
watts;' Its
times.
add its boost to the forward thrust
of construction.
Joins First of Michigan
(Special to The Financial chronicle)
Summary
The
indications
convalescing
covers
to
go
still has
before it re¬
complete health.
Because
of plant
over-capacity and inven¬
tory backlogs, the pace of revival
may
not be
fast
as
as
we
DETROIT, Mich.—Oscar L. Buhr
the
economy
months
some
that
are
should
has
joined
the staff
of First of
Michigan Corporation, Buhl
Build¬
ing, members of the Detroit Stock
Exchange. He
Detroit
Bank
was
&
previously with
Trust Company.
like.
But
confidence in job security
strengthened by the knowledge
rising employment, and addi¬
tionally because personal income
With Parker, Wester
is
of
is
to
holding
well.
The ability
buy consumer durable goods is
up so
strengthened by this fact and by
the ample reservoir of savings and
credit.
(Special to The Financial
P.
— Gerald
connected
Wester, Taranto &
Dunkly has become
with
Parker,
Co., 6609 Stanley Avenue. He was
formerly with Richard A.
Considering both the minus and
A
national
son
organization
PROXY SOLICITING ASSISTANCE
and related services
Colorado Central Power Company
"DL
Broadway
p.opL"
Eaglewood, Colorado
DUDLEY F. KING
Main Office: 54 Wall St., New York 5, N.
Tel. BOwling Green 9-5550
Harri¬
1
Inc.
founded in 1942 specializing in
3470 So.
Chronicle)
CARMICHAEL, Calif.
Y.
2
The Commercial and
PICTORIAL
Financial Chronicle
...
Thursday, June 19, 1958
34th Annual Field Day
George
N.
Lindsay,
Swiss
H.
George
American
Albert
Corporation; Augustus W. Phelps,
Ascher, Wm. E. Pollock A Co., Inc.
R. Waldmann, Mercantile Trust Company; Eugene G. Mc«
Mahon, J. Barth A Co.; Gene Marx, Bear, Stearns A Co.
Hal
Phelps,
Fenn
A
Co.;
George
W.
>
Beaver,
Schoellkopf, Hutton A Pomeroy, Inc.} George Rutherford,
Corporation; Warren W. Ayres, Dudley F. King
Murphy and Edwin L. Back, Commercial £ Financial Chronicle
Joseph Nye'
Securities
* Whi,head; Calvin M. Cross, Hallgarten £ Co.;
Austin
Edwin H. Herzog, Lmuxrd Freres A
Co.; Caryl H. Sayre, Merrill Lynch, Pierce, Fenner A Smith;
Eugene M. Geddes, Clark, Dodge A
Co.; Richard de La Chappelle, Lee Higginson Corporation; Lloyd
Gilmour, Eastman Dillon, Union Securities & Co.
Dominion
Brown,
Dean
Witter
<ft
Co.
•
|j
Augustus
J.
r "
*>
J. Martin, United States Trust
Company; William H. Long, Jr., Doremus A Co.; Ernest
Altgelt, Jr.,
Harris Trust A Savings Bank; John J.
Clapp, Jr., R. WPressprich A Co.;
Frederic M. McClelland,
Kidder, Peabody A Co.
,
H.
Lawrence
Parker, Morgan Stanley A Co.; Andrew G. Curry, A. E. Ames
Robert M. Gardiner, Reynolds A Co.; John J.
Bryan, Reynolds
A
Co.
A
Co.
Incorporated;
■■■
**
Charles Bishopt Th* Hanover Bank;
Stephen
The
Hanover
Bank;
Allan
Reynolds, Halsey. Stpart A Co. Inc.; Evans G. Mcrgan,
C. Eustis,
Jr., Spencer Trash A Co.
Volume 187
Number 5752
...
The Commercial and Financial Chronicle
At
tSSl'ch' AlherV C.
IVerfneim A Co.,
Albert
John
Purities,
Sleepy Hollow Country Club
Y?"er A Co., /nc.; Alfred J. A Co.,- Allen C. da B.I.,
?'?.ine' CoWman, Sach.
Walston
Ross,
Raiss, Burnham and Company; Frederick Ehrman,
Brothers; Lee M. Limbert, Blyth A Co., Inc.
Lehman
Dicfc
E.
F.
Dunstan,
Bankers
R.
A
Trust
W.
Company; John Linen, Chase Manhattan Bank;
Pressprich A Co.; John French, A. C. Allyn A Co.
James F. Burns, Jr., Harris, Upham A Co.; P. Scatt Russell, Glore,
Forgan A Co.; Donald Stralem, Hallgarten A Co.
Smutny,
Rudolf
Salim Lewis, Bear, Stearns A Co.; V. Theodore Low, Bear, Stearns
A Co.; Joseph Nugent, Mabon A Co,
10?
■
*
-
mi?:£
ft.
mm
:
y$$m
mA
George T. Flynn, Hornblower A Weeks; Homer O'Connell, Homer O'Connell A Co.,
White, Weld A Co.; Egerton B. Vinson, De Haven A Townsend, Crouter A Bodine;
Salomon Bros. A Hutzler
Inc.; Jan Hunt,
William Morns,
Kenneth
Edward
A.
B.
mm
Kerr, E. F. Hutton A Company; John H. Carlson, Carl M. Loeb, Rhoades A Co.;
Selding, Spencer Trask A Co.; Edwin A. Stephenson, The Chase Manhattan Bank;
Carnot W. Evans, Clark, Dodge A Co.
de
"■
>4$
•*
: :
i *
'•
'
fop U
/
•
'
4
iTT
■
;
V
■
1
•
T-IT.'-
:
■
.
Charles Buek, United States
Trust Company; Malon
Kidder, Peabody A Co./ J.
S. Andrus.Moion 5.A ndrus.
Raymond Smith, Weeden A Co.
Inc.; Henry Kardos,
Howard F. Vultee, Eastman Dillon, Union Securities A
Arthur E. Allen, F. S. Smithers A Co.; Walker
Co.; Norman W. Stewart, F. S. SmithersA
W. Stevenson, Jr., Hemphill, Noyes A Co.
'\%
$
Co.,
4
PICTORIAL
Edward
T.
Thursday, June 19,
1958
R. W. Pressprich A Co.; Albert Hager, Jr., Halsey, Stuart A Co.
Freeman A Company; James F. Colthup, Freeman A Company
Inc.;
The Commercial and
McCormick, American Stock Exchange; Blancke Noyes, Hemphill, Noyes
T. Leach, Estabrook
A Co.; James F. Burns, Harris, Upham A Co.
A
Co.;
Orin
Charles
Li'^Wgfnann,
Dwight
Beebe,
Financial Chronicle
.
.
.
1
I
■ff
R
m
>
D
J
e.-.
Raymond
Stitgerf
u/L
White,
DMAAtm.
Brooke
Levy,
T.
Lewton
x
,,,
,,
_
Weld
Uf«Hl«A*u
_
1L'
l_
-
^~
r»
J
Dick ,Rand,
Co.;
:
Wynkoop,
1
TN.
j.
l_
Fahnestock
o.
&
n
,
Rand
„
&
„
Robert
F.
Lawlor
A
Rockwood;
Joseph
Wood,
F. Patten, Bear,
Struthers A Co.
Smith, Barney A Co.; H. Keasbey Bramhall,
Falion &
CoInc.,
Ralph
Hornblower, ' Jr., ;
,?aul L. Sipp, Jr., Stern, Lauer & CoPaul L*. Sipp, First of Michi_^
Hornblotper & Weeks
igan Corporation; William \M. Cahn, Jr., Henry Herrman & Co.
„
^^
Goldman, Sachs A Co.; David Lewis, Paine, Webber, Jackson
King; Hubert Atwater, Wood, Walker A Co.
Lawlor,
Seebeck,
CoBramhall,
Co.
Stearns
A
A
Co.;
ff.
t
o
ti/
_
'
\
Philip
K. Bar^w,
•
»
.
-
Allen J. Nix, Riter A Co.;
Curtis;
.
_
//
a!
-
---
i
_
Lawrence Bogert, Jr., Eastman
W. Borkland, Jr., Tucker,
Anthony
Har0ld.I^P«hFbR,i,nro« Bm°?L Bp,e,4 Co.; Gordon
James F. Burns,
Blyth A Co., Inc.; Richard C.
v..
vv
ww
.
-
Dillon, Union Securities A Co.
A R. L. Day
B. Whelpley, Joseph Walker A
Vivian, First Boston Corporation
■■
a
r<_
Ernest
Sons;
Volume 187
Number 5752
.
.
.
The Commercial and Financial Chronicle
PICTORIAL
Municipal Bond Club of New York
Charles
E. Weigold, Charles E.
„
Boston
James
Weigold A Co., Inc., reti
iring president; Wilbur M. Merritt,
president; George W. Hall, Wm. E. Pollock A Co.
general chairman of the outing
,
Corporation,
.
D. Topping, J. D. Topping A Co.; Kenneth Speer, Rippel A
Co., Newark, N. J.; Harvey S. Renton, Freeman A Co.
Bill
Veazie, Mabon A Co.; Stebb Allen, Chemical Corn
John S. Linan, Chase Manhattan Bank
W.
Neal
,
.
A. J.
Bianchetti, J. A. Hogle A Co.; J. C. Fitterer, Jr., Wertheim A Co.; William D. Muller, Halsey,
A Co., Inc.; Edward J. Meyers, Laidlaw A Co.; E. G. O'Leary, Eastman Dillon,
Stuart
Union
Donald
Securities
A
C. Ebbitt, Shelby Cullom Davis A Co.; Russell Mclnnes,
Wood, King A Dawson; George J. Thurnher, Drexel A Co.
Breen, Glore, Forgan A Co.; Edmund
Theodore P. Swick, White,
Corporation,
Co.
Kenneth
Fulkerson, Bankers Trust Company
Exchange Bank;
.
o
/i.
Rirhofd H
De Bolt. Indianapolis Bond & Share
Henry L. Harris, Goldman, Sachs & Co.; Richard n. ue noix, mhu
h
rhicaeo
Indianapolis, Ind.; D. R. Bonniwell, Cruttenden, Podesta & Co., Chicago
t»
The First
incoming
ng
Robert J. Mullens, J. J.
C. Byrne, Phelps, Fenn & Co.;
Weld & Co.
Boston; Ed Kelly, Dean Witter A
York; Frank B. Sisk, Salomon Bros. A Hutzler
Kenny Co.; Marsom Pratt, Estabrook A Co.,
Co.; John Sweeney, A. C. Allyn A Co., New
5
6
The Commercial and Financial
PICTORIAL
Charles
F.
Kavanagh, Bacon, Stevenson & Co.; Malvern Hill, Malvern Hill & Co.;
R. M. Schmidt, Blyth <ft Co., Inc.
Edwin L. Beck, Commercial <ft Financial Chronicle; William
The Northern Trust Company, New
David A. Pincus, D. A. Pincus <ft Co.
Ferguson,
Ed
Wrightsman,
York;
August
F. Pardey,
Chase
Charles V. Smith, Clark, Dodge <ft Co.; William E.
Simon, IVeeden &
William M. Durkin, First National Bank of
Chicago
The Chase Manhattan Bank;
Bank;
William
The Chase Manhattan
Ira Haupt & Co.; Archibald Galloway, Vandewater, Sykes, Heckler
Maxwell, James H. Blackburn <ft Associates, New Orleans
Co.;
&
..
.
Thursday, June 19, 1958
Arthur E. Kirtley, First Boston Corporation, Chicago, 111.; Carnot W. Evans,
J. David Everard, John Nuveen & Co., Inc., Chicago
Manhattan
Arthur A.
Chronicle
Galloway;
K. J. Sickler,
The
C.
Courtney Keller, Wertheim & Co.; George R. Waldmann,
Mercantile Trust Company; Gene Kelly, Carl M. Loeb,
Dubendorfer,
Bank
John
D. Cooper,
Clark, Dodge (ft Co.;
Rhoades &
Co.
Shields & Company; Homer Locke, Shields <ft Company; Harold A. Walker,
Company; Robert G. Gerrish, G. H. Walker & Co., Providence, R. I.
Bankers Trust
Arthur Mathews, Dun <ft Bradstreet; Bill Skinner, Coffin
<6 Burr, Incorporated; Robert C. Mathews,
Trust Company of Georgia, Atlanta, Ga.; Bill
McKay, The Blue List Publishing Co.
Volume
187
Number 5752
.
.
.
The Commercial and Financial
Chronicle
PICTORIAL
\
■
■
■■
.
.
7
'
Friday, June 13, 1958
Richard
I. C. Hess, Blyth &
Co., Inc.; Eugene A. Mintkeski, Port of New York
Authority; Prentice
Talmage, Tucker, Anthony A R. L.
Day; Warren Oltmanns, Charles E. Weigold A Co.;
I
William R. Torgersen, Charles E. Weigold A Co.
Alfred
S.
Knapp, Janney, Dulles A Battles, Inc., Philadelphia;
T. Poole, Poole A Co.,
Philadelphia; Leigkton
Mcllvaine, Goldman, Sachs A Co., Philadelphia
William
William
B.
F.
Ludwell A.
Hitz, B. J. Van Ingen & Co., Inc.
Strader, Strader & Co., Lynchburg, Va.; Byron Say re, 7ro
Harry M. Peiser, Ira Hgcupt & Co., New York
\
Murphy, B. J. Van Ingen A Co., Inc.; James F. Reilly, Good body A Co.; Fred W.
Reichard, B. J.
Van Ingen A Co., Inc.; Elmer C.
Eaton, Jr., Paine, Webber, Jackson A Curtis, Boston;
Paul Stephens, Paine, Webber, Jackson A Curtis,
Chicago
Travers, Francis I. du Pont A Co.; Carlton
Chambers,
Kennedy A Co., Boston; Frank R. Cole,
F. R. Cole A Co.,
Newark, N. J.
Brittain
Andrew Dott, Malon S. Andrus, Inc.; Harold J. Kennedy, E. P. Hutton A Company;
James J.
Dick
Haupt & Co., Chicago;
S. Garland, Jr., Alex. Brown A Sons,
Baltimore, Md.; Henry G.
Pentz, Alex. Brown A Sons, Baltimore, Md.; Edward H. Robinson,
Schwabacher A Co., New York
C.
L. R. Sullivan, Fitzpatrick, Sullivan & Co.;
Joseph S. Banks, Blyth & Co., Inc.; James Edward Falion,
Bramhall, Falion & Co., Inc.; Karl J. Panke, Lehman Brothers; Russell A. Haff, Joseph, Mellen & Miller
Andrew D. Buchan, Bacon, Whipple &
Co., Chicago; Jerome J. Burke,
James G. Brophy, Blyth A Co., Inc., Chicago
Blyth A Co., Inc.;
Commercial Financial
and
The
3
Chronicle
. .
Thursday, June 19, 1958
PICTORIAL
At Westchester
Country Club,
F.
Laidlaw & Co.; Elwood S. Robinson, Penington,
E. Flaherty, Barr Brothers & Co.; Thomas F. McEntee,
Frank L. Lucke,
Simon
Milton
Pierce Rauscher,
& Co., Inc.,
Halpern,
Morris
A. Dudley,
San Antonio, Texas;
Rauscher, Pierce & Co., Inc.,
Dallas
M.
Ponicall, Jr., Singer,
Charles J. Martin, Felger, Nolan,
Washington, &D.Co., Inc.; Washington, Folger,
C.; Arthur Friend, D. C.;
Hibbs
Barr Brothers
& Co.
Nolan, Fleming-W. B.
Edwin A. Riehle,
James
Walter E. Morse,
Edwin P.
J. Ryan,
Co.; W. T. Burnett,
Lehman Brothers; Joe Vandernoot, R. W. Pressprich &
Kean, Taylor & Co.; John F. Hornbostel, Hornbostel & Co.
Sunderland, John C. Legg & Company, Baltimore; Thomas
Company of Maryland, Baltimore; George Kiener and
(Pat Marro and A1 Stecher)
A. Lankford, Union Trust
his orchestra
Deane &
Harry Downs,
Colket <fi Co., Philadelphia;
Adams, McEntee & Co.
R.
Schlichting,
Rye, N.Y.
Scr/bner,
Harry Downs
Pittsburgh, Pa.; WilliamP. King, King,
J. P. Morgan & Co.
& Co.; Ed Warren,
Quirk & Co.;
Bernard Van Forgan B. J. Van lngen & Co Inc.; Robert A. Co.
Ingen, & Co.; William H. Thorpe, Drexel & Boytano,
Glore,
Park, Ryan, Inc.; James E. Klingel, Juran & Moody,
Arthur F. Tubridy, Herbert J. Sims & Co.
Kidder, Peabod,
&
Co.;
K. R.
Russell
W
Schaffer,
SchaRer,
Petroski, Drako <ft Co.
St. Paul, Minn.;
Necker <6
Co.,
Philadelphia!
Number 5752
187
Volume
.
.
.
The Commercial and Financial Chronicle
(2751)
Continued from page 25
possible liability lor
damage
to
ladies? /.
Because we've forgotten
ment
too often clo in
ognizing that a public relations
problem may be just as tough as
we
our
per¬
statistics and logic. We
to know
far
by now that
reliance
an
women
are
"manage¬
upon
intuition"—instead
_
needs
careful
same
reachable through an research, planning
1
approach that talks to' action.
/
hearts as well as to their
Yes, we must
keen minds.
utilize
have
man.'/
has
ECAP
magazines
are
added
embarked
approach.
more
on
women's
schedule
a
warmer
than'two magazines
women's
much.
and
copy
But it will take
story
our
two
the
to
,
effectively
audience
Such
an
to
tell
to
that
lot
a
this
counts
so.
approach will not
the
fi¬
analysis,
and
more
Now that the figures
reminded us of that fact,
rec¬
sales problem. And it
or
the
emotional
their
of
engineering,;. production,
ought nancing
men
decisive
; ;/:■
to remake
our
*
behind which they masWe know their goal is
querade.
Successful
men."
torial
and
of the
"PR
Are
-
they merely edi¬
supervisors
of
advertising
copy and publicity material, mak¬
ing sure that clever and careful
language is used?
abject flunkies to
Are
former
his
pr
n
,
n2^v
star
hit
car
an ex/ removed from
w
?hlni!^iand *?1S b?uj
fh *
2Y1}* 1 have m mind
JQm
Reverend Billy
of
that
company
was
wS„n
the utility.
'
■
Now let's look at the PR angle
to a topic about which we do an
lot
of
question
hollering—the
tax
/
f
Pachmg
?fils?s
w
both
evidence any
no
of
be¬
freedom
and
sides
of
the
Iron
Curtain.
and
times.
missionary, he works primarily
among
the
non-believers
and
utilities
As
more
prettily garnished and
spiced to be more palatable—but
it would have been the
:
where'w*10 have strayed from the
I
you
a
There is
the forces
those of tyranny, has
taken/rpe tor
many corners of the earth and on.
been
talking just to the believers.
•
Tax Angle Is a Dud—Stressed
con¬
continually
tween
Pi/23"1. ^pesn t waste his time
vociferously against
awful
and
cancerous
bal struggle for the mind of
man,
is
waged
that
*??? he
JJ ipant there than almost any
place else in America I know. But
*ac* makes al? the more per-
the local newspaper
editorialized
investigation
|?tern Baghdad-by-the-Bay
sur-
prised when
•
the
It would have been tempting thi»
morning
to
have
deluged
you
^ arenas with
statistics, to have drowned
£it to °ur you in rafter-shaking reverbera¬
tions of sound. Yes,
found sin more might have cooked the roast I
could
have
u
power pole. He left a widow and
two young sons. The law depart-
kind
any
football
killed when
was
w
the
of
My first-hand probing of the glo¬
T
a
they only
alibi
popular
a
who
ml
industry,
exposure
spiracy of Socialist Collectivism
all-powerful also has. been my life's vocation.
the
%1 su^gest
"
nmn]p
ultimately lose the more vital
public opinion battle. I know of
a
utility which slapped a $500
damage suit against the estate of
monf
nation in the
our
public strous image of
relations to avoid the loss of milSocialist state,
lions of dollars\in good will. Too'
,
j,
often we win a legal skirmish but
ment
recognize
expertness
public
rela¬
tions work depends to a
large ex¬
tent on how
management uses its
"PR
of
some
guises
should
we
—
muclr
sonal lives—that you can't make
effective love to a gal with cold
; making
fanciful
some
maybe
legal activities clear with
been getting our story over to the
~as
suit,
consider
39
I
have
have
spoken
public
as
meat
same
digested,
an
relations
many
electric
man.
I
choose rather to plead simply that
we have a duty to the American'
that the tax differential ever has -° d*
be popular with those of us in of
•
:
:
a
policy which management
economic system
as' well
as
to
management; and ; our
directo¬ decides to carry out, regardless of
Take a Lesson From Billy Graham our own industry. We can't afford
rates.
But until we stop
Are they
writing public opinion?
just
to waste any more time in. halt¬
This is as true as the notes of
We in the industrial public recopy- for - ourselves
and
; start
nice, congenial hand-shaking and
liberty's bell, despite the millions 3aP°"s field tall5 a lo} and say a ing the countdown to our own
talking
the
people's
language,' back-slapping machines who make
we've spent telling the public that
we?ll never get a
We are missionaries, too. But oblivion.
really big audi¬ a lot of friends but do not influ¬
LET'S GO HOME, TAKE OFF
we
ence for our
pay taxes- by the billions of !°° often we say our Piece only
ence
messages.
*
■
•
many people?
If your PR
OUR
dollars and public power agen- in °ur own temples. We can take OUR" COATS, ROLL UP
!I cannot leave ECAP; without man does " not prove his
mettle,
cies pay none. : •••-' *'/- *•a. lesson from Billy Graham in SLEEVES, AND FIGHT '.BACKF
Complimenting -the
great " job then fire him and find a fellow
Why is the argument a dud? sPeaking out bluntly and couragewho
ECAP does in*
warrants
your
confidence.
-
,
otiherwfse
_
building
broad
a
Because • everything
But when you do find
we
say • on ously—and in a voice the people
him, in
the subject
sounds as if we're understand and will believe. We
business-man- ' heaven's name give him author¬
either complaining or bragging— must carry our brand of Ameriaged power companies.: The proof ity equal
to his
responsibility.
or both. What is the reaction of
of the pudding that the
PR men
,can evangelism to the non-becan
do their best job
campaign
r..
••
lievers, too. Sure, its harder to
is doing a lot of good is attested when they are consulted by man¬ the consumer7
He says, "What's so noble about
by the constant chorus of in¬ agement before and not after "the
"t nnv fvdn&'efdn_ cusposeci our way.
But the obllnuendo from our detractors and hour of decision." We must call navinj?
their- frenetic
,I'd like to
,great and the stakes are
efforts
to
have them in on the take-off and not
LOS ANGELES, Cal.—Dempsey-'
Tegeler & Co., 210 West Seventy
Street, have added to their staf£
Dorothea Amrhein, Ora M. Busbr
Roger A. Clark, Frank F. Doolittler
ECAP
Helen B. Edsall, Thomas H. Haz-.
foundation
about
of j public
America's
•
^
.
-
„
//l/, oura"divneBunt0tthelrobhy
pleynfyg.,
expenditures
disallowed
/.
.// >
tax-wise.:.
-
Public relations is
a
a
broad and
There
plain.
Whether
not, too
tims
many
of
average
himself
wishful
not
Yet
labor
the
it
the
a
or
vic¬
The
prides
"hard-headed
man
election
returns
as
he
has
too
little
contact
with grass roots.
/ In
our
in
tency
his
whom
of
top-flight
compe¬
hiimTn bS!™
,,J?
t
the
And theyie not
with
an
to
And.
cope
executive
of
course,
with
who
is
comes
the
in
or
whatever
it
is,
clear
Norfis',
Al¬
pay
ignore the natural laws of
psychology.
lative
councils
—
must
war
or
our
Federal,
be
legis¬
State
and local.
There is
you
know
the
survey.
doesn't
would
human
labor
a
L.
To expect any other result
one-wife-
on
Sherry
a
to accept service from
public agency at mighty attrac¬
tive rates just because the PUD,
alleged "public reaction" to
add—based
zard, Jr.,
proud spokes- exander C. Peppin, Lauretta F.
1S
" man for Capitalism. As much as Savory and Patrick C. Scull. All
this thing we call public relations were previously with Wad doll &
going jias ^een may daily work in our Reed, Inc.
taxes.
no
need
for
issue
to be¬
me
with statistics.
between
We
all
Capital¬
ism and Socialism. We know who
of
publicity
having to
legal departments, to
our
enemies
avoid difficulty
and
are
we
penetrating
have
the
no
dis-
"IT WONDERS ME"
THINKING
FAST
control
BOILER-BRAIN.
panel master-minds
a
This
high-speed
automatic
Blaw-Knox
network of intricate circuits. They Instantly
detect, and correct, the slightest variations in the feeding, firing,
pressure
or
steam
,
of boilers at the Pennsylvania Electric Company's Seward Station.
Electric power demand
jumps 100% every decade—
This strange
"caravan" recently roiled through the heart of the Pennsylvania
dutch country... a
it were coming
52-wheel, double cab "monster" which looked as though
and going at the same time. It drew the traditional local ex¬
Blaw-Knox Automatic Controls
help boost generating efficiency
As
pression of perplexity: "It wonders me!"
means
A 150-ton transformer was
hauled to location
million
PP&L
as
being
part of a $3
substation
project
Over
expected
$30 million annually since 1946.
the next five years,
to average
they
are
nearly $40 million yearly.
part of a continuing program
of construction to meet the growing
regardless of the current economic
Eastern
situation, because we believe that
electrical needs of Central
Pennsylvania.
expenditures
PP&L's construction
have
averaged
PENNSYLVANIA
over
the future for Central Eastern
Penn¬
sylvania is one of substantial growth.
POWER
&
LIGHT
COMPANY
of
must be
for
electricity doubles and re-doubles,
generators continue to provide the most economical
producing it. But turbine, boiler, and boiler-controls
closely integrated than ever before . . . they now
more
have to operate
with higher and higher efficiency. And Blaw-Knox
answer—for today's power
automated boiler controls provide the
stations,
This continues to be our program,
and
need
tremendous
the
steam turbine
as
well
as
Blaw-Knox has
in
we
for those of the future.
outstanding record for stepping
an
up
efficiency
plants, installations, and operations of many kinds. Perhaps
can
help you in this way, too. If your company generates
fabricates metals, or builds roads ... if you
processing or communications—you'll be
brochure
Blaw-Knox" tells you about them. Write for it.
electricity, rolls
deal
with
"This is
or
chemicals,
interested in
our
services and products for industry. Our
BLAW-KNOX COMPANY
10:31
Rlaw-knox
Buildina
Pittsburgh
,
(Special to The financmi. Chronicle)
a
own
relations.
hardest
f
A nH
nnv
Inyrefuse
f
to
lifetime student of politi-
^ cal science and
^
field, without
Plainly, the tax
necessarily knowing a thing about fought in the halls
Instead
industry there is still too
horseback
auditors—each
possess
the American farmer,
or
the
and
senior
unionist
for
may
public
so
politician.
He
isn't in touch with the people be¬
cause
side-tracked
opinion of the engineers, lawyers
prove that he
hard-headed or
should
nearly
realistic
are
thinking.
being
themselves
is
us
management
on
realist."
admit
we
of
sef
just for the crash landing!
is no/question in my comprehensive field and a true
mind "Why
ECAP?"—only/'Why expert must have a sound, prac¬
tical
not more ECAP?"
knowledge of the human
/;>...
Our story can be told plainly. equation. But once he has proved
But the fact is, we in the indus¬ his expertness, his advice ought
try just can't stand to keep it to be heeded instead of being
r
Dempsey-Tegeler Adds
education
•
300
Sixth
22, Pennsylvania
Avenue
Obligations and Challenges
To Electric Utility Industry
of
discussion
indus¬
our
of
tion
bombers
and
missiles,
of what
idea
—and
that future will
develop
can
you
be
solid
a
foundation for sound action.
or
for putting
together in¬
from
data
and
formation
important
most
the
of
One
mediums
every
being in th® in the fantastically complex sys¬
of computers,
radars, and part of the industry is the Edison
nature of a report to the American tems
Electric Institute. And, through a
people on how we of the electric weapons which are constantly on
variety of programs and projects,
companies are meeting our obliga¬ the alert to counter any attack
the
Institute
helps its member
against us.
tions and facing our challenges.
companies put the experience and
An indication both of the tre¬
First of all, we have to make
abilities of others to work for the
clear why our industry sees to¬ mendous rise in the importance advancement of electric service
of electricity in the progress and
morrow a s one of the most es¬
everywhere, to the over-all bene¬
protection of our civilization and fit of the public.
sential responsibilities of today.
how
well
our
industry
is
Electricity cannot be stockpiled of
Praises EEI and Its Committees
for the future—it has to be right prepared to meet any demands on
there on tap at the instant new it is shown by a comparison of
try's
progress
as
demands for it are made.
So look¬
loads
and
over
art in the electric companies.
national crisis.
An¬
riod which includes times of
other factor in developing future
electricity supply is the length of
time it takes to construct the huge
generators
and * other
complex
equipment going into a power
plant
From the planning stage
v
i
Xo operating plant may be a mat¬
c
ter of three
".V Electric
years
and more,
service is unusual in
that companies in 4he businness
cannot shift into another line of
„
capabilities
generating
the last four decades—a pe¬
ing at tomorrow and appraising it
has become a highly developed
We
in
emblazoned
have
memories
words
of
great
our
appreciation
in World War II.
Emergency
in volume and
complexity, were met fully and
promptly by the American utility
industry." J. A. Krug, Director
of the Office of War Utilities, said,
demands,
-
great
from the 1950
kilowatts to
million
ment
plant and equip¬
from about $19
twofold
nearly
year.
jects in the accounting, commer¬
cial,
engineering and operatingfields, as well as to many other
matters of high importance*to the.
~
In
has
in pre¬
both
EEI
forecast
10
So
as
we
the
view the
a
of the bases of
is
economy
will
also
We
fore-'
our
conviction" that "
the
economy
continue
that
to
the,
grow.
shooting
war will occur.
Basic, too, is our
belief that the American people
assume
continue
will
along
no
the road
of"
individual initiative and will not
adopt
tenets
the
of
socialism
major ground-rules for the
tion of "their government.
But
.
industry: sales
about
370
billion
reach
situation
one
cast
that annual electric
would
looking to 1979,
by greater gains in the
ago
years
of
than before.
and
manufacture
soundness
of
have,
breathing'
spell. In the past, readjustmentslike this one have been followed?
the
electrical
An
proof
we
"
Quite frankly, our industry
dicting
basic
the
current
record.
always been conservative
economic
dramatic
trend.
billion in 1950 to
billion at the end of last
This is truly a remarkable
$36.5
current
It is
and its great potential.
Further, because the electric com¬
panies represent such a significant"
influence
in
the
stability
and'
growth of the entire economy, we?
feel a'responsibility to do what?
we can in stimulating an upward
companies
electric
risen
the
is
aware¬
economy
doubled,
figure of 71 million
the
has
ment
in
for
program
the faith and confidence
the 1957 total of 135
alone in electric
construction
situation.
kilowatts. And the invest¬
by
The figure
$3.7 billion.
of
ness
During the
span, generating
almost
has
capability
construction.
was
Our
magnitude of its fu¬
This has been and is being done
ture. Before developing the fore¬
successfully through the unselfish
cast for 1979, EEI compared about
cooperation of the individual elec¬
a dozen published forecasts made
tric companies.
And, on the part
of
some
1,800
EEI
committee by various authorities in. the. past
with actual performance by the
members, it means the devotion
of a great deal of time and effort, industry. -Without going into de-.
away
from their own company tail,, let us see what happened in
some
of these instances in just,
assignment and duties. As mem¬
bers of 60 committees, these one category—kilowatthour sales.
spoken by those with heavy re¬
sponsibility for the fate of thenation.> Dwight D. Eisenhower,
when he was U. S. Army Chief
committeemen contribute their,,
of Staff, said, "American electric
specialized knowledge and under¬
power was one of victory's weap¬
standing to a wide range of sub-v
ons
seven-year
same
Thursday, June 19, 1958
.
being carried out with full
last year.
billion
.
1957
nearly doubled its sales, from 281
billion kilowatthours in 1950 to
558
.
new
help it along on a firsthand Accomplishments of Recent Years
In just seven years,
practical day-by-day basis like
or about
this, you are not theorizing or one-third of the forecast period,
hoping. You have a pretty good the entire electric industry has
and
Continued jrom jirst page
this
Financial Chronicle
The Commercial and
(2752)
#j40
Of
we assume
They were
about one-third below the actual
move
already
lines
the
%
it af-,
,
along
~:
•
that the pattern
government activity' as
the
economy
will
fects
kilowatthours in 1957.
as
opera¬
estab¬
lished.^ We expect "that govern-?
move to another area,
figure. Another manufacturer and. ment spending will proceed at'
they do not like the way things
industry's progress.
V a leading electric industry trade .about the present rate, that tax?
are going for their operation. You
publication two years later pre¬ structure will show no significant
I
cannot review the work of
cannot move miles of transmission "Power has never been too little
dicted 1957 sales to be 435. billion
.lines, tremendous generating or too late." And the Navy's Ad¬ each of the EEI committees. They kilowatthours-^and were low by alteration, and that fluctuation of
plants and all of the expensive miral W, R. Monroe, said, "When are the Institute; and they merit; more than 20%, Predictions, made interest rates will be experienced
as
in
the past.
And that there
equipment going into electric we called for power we got power our sincerest congratulations and within the last three to five years,
will be further inflation.
:
appreciation.
:
service from one part of the na¬ and not—Thank God-r-alibis."
fell short of the actual 1957 per¬
tion to another because you may
The ability to produce electric,
Basic to the Institute's effec¬
formance by from 5 to 14%.
/
•
Projects GNP in 1979
not care for developments in your power to meet the nation's needs tiveness in serving the industry
This may indicate why seers in
In
making our forecasts, we
is
not something
created on a and the public is the widespread
present territory.
activity should be modest made use of a number of guide-'
This fact of being married per- crash basis, which expands and nature of its membership. Member, any
v
men, disclaiming infallability.
It lines in the economy which bear"
manently to one basic line of contracts with changes of tem¬ companies serve about 96% of all
also indicates why the electric in¬
a
relationship tO our " industry.work in a single area makes for perature in the cold war or with customers of the investor-owned
n'
dustry, in its expansion plans, Predictions of the Gross National
Si strong sense of responsibility on
economic fluctuations. It is based electric
utility industry in the
takes great care to provide the Product, for example,, are helpful
the part of electric
companies. on the sum total of what we see United States.
means
of meeting needs beyond to use in getting information on
This is not so much a virtue of as necessary to serve well all the
A membership development of those
which may be predicted.
future
kilowatthour : sales.
By
...
yvork or
if
,
'
.
.
tU
*
■"
'
-
•
our
characters
as
companies and
communities
of
which
we
a
are
individuals. It is rather the clear part, and which make up the
fecognition that, for better or for larger community — the United
:
do only
.
than
more
has
national
about
come
to EEI
mission
significance
through the ad¬
affiliate
as
mem¬
well as States.
bers of electric companies from
An electric company knows it§_
And,
15 countries of Latin America and
when this sense is multiplied in service area intimately—it has to. the Caribbean. May I
say we are
electric service areas across the Typically, it knows of any large
delighted with the opportunity
nation, it means that the electric new industry coming into its ter¬ this
presents to work more closely
companies as an industry are a ritory, and may even have helped in
sharing the benefits of EEI
worse, we can
•>
responsible and potent force for
bring it in
as
part of
an
area
activities with
neighbors and
our
show
have
we
no
fear
that
future will not be at least
markable
as
as
the
ono
for
which
the
we
entire
have proved to be
true time after time in the past.
after day, electricity be¬
increasingly important to
our rising standards of living,
whether it is in a modem, allelectric kitchen, or on an elec¬
tronically controlled
production
line. And electricity becomes in¬
creasingly vital to our national
defense, whether in the produc¬
i
I>ay
comes
personnel will be working
civic
improvement
projects
help make the communities
ceiving its service
ous
Institute
was
moved to
lar
the past. 1958 will be
in
record year for new construction
in the power business, with the
to
re¬
more
which to
This
prosper¬
and better places in
story building, 750 Third Avenue,
in New York City.
EEI's
is
first
relocation
since its organization in 1933.
25
For
oned into the calculations of what
it occupied quarters in
the Graybar building at 420 Lex¬
ington Avenue, expanding until
electrical
its
live and work. All these and many
other considerations will be reck¬
years
needs
will
be
in
the
you
activities
In
floors.
ahead.
When
years
forecast
the
future
took
the
parts
the staff functions
of
floor—the
sible
three
of
building,
new
are
on
the
present rate of in¬
be
would
figure
1979.
trillion
$1.7
? ;
,
A The $700
to inflation.
a
billion?is attributable
/r v t ? i *
Population trends jaiid. the for¬
mation
of
households .are
also
,
.
of
installation
some
factors
results,
electric
to
total
10 years, the
electric companies have averaged
about
$2V2
billion
annually
rather
these
are
have al¬
accurate
particularly
checking our own pre¬
Population"1 is expected
about
of last year.
last
the
be
pre¬
other
250
million
in
1979,
the population
And households will
than 82- million, in¬
nearly half again
companies
have budgeted about $4 billion.
During
so
in
dictions.
greatest proportion of the indus¬
forecasts
produced
useful
the
output- and
,
Population
accomplish their part of this
year's construction, by far . the
total,
power
ways
To
try
are" helpful in
which
dicting
data.
34-
new
a
on
If
flation continues, the current dol¬
re¬
15% million
United development program. In a com¬ friends to the south. At a later
kilowatts.
States.
pletely different field, that of Convention session, we will hear'
This exceeds the previous high
$o, when we say that we will home use, the company will have from one of the leaders of the
record set in 1955 by more than
continue to bo ready," willing and charted growth for years into the
electric industry in Latin America.
three
million
kilowatts
iable to supply all the power re- future, taking into account such
and
is
I would like to mention another
about equal to the total net instal¬
quirements of the nation, we are factors as the rise in air condi¬
Institute development. At the end
not bragging. We simply state a tioning.
lations of the 10 years between
of April, the general office of the
1936 and 1946.
In yet another field, company
'
*
fact of life for this industry *—
progress
,
to
our plans for adding
generating capacity this year
new
we
total.
*
*
Certainly
as
the communities we serve.
estimate that GNP will?
reach about $1
trillion in 1957
dollars, about 2V2"times last year's"
1979,
Record Year for 1958
more
cluding
over
an
1957.
Before
for
increase of two-thirds
taking
up
the forecasts
all
one
sixteenth—making
more
pos¬
economic and efficient
administration.
s^
V >5,N
v
$$$ ;
||
The
staff
of
numbers
Institute
90
men
now
and
whose basic mission it
women
to
the
some
provide
is
the services required
the EE.I committees to facili¬
by
tate their work.
One of the task the Institute has
undertaken
for
this
industry re¬
a fore¬
port is the development of
cast for the year 1979, which will
Another year of GROWTH
...
in the Golden State
Percentage of population increase in
was
be
our
service
areas
greater than fast growing Southern California last
year. This continuing growth helped us set new records
in gross revenues, and higher net income in 1957. Our
Annual Report for 1957 reports the year's
accomplish¬
ments and explains why recent rate increases should re¬
sult in
a
Clliforitia
300
MONTGOMERY
a copy
without obligation
Water &
STREET
•
SAN
Telephone Company
FRANCISCO, CALIFORNIA
100th
tical
incandescent
Months
of
results
even
we
to
are
of
the
be
light.
careful
gone
may
people
to
electric
and
have
examination
the
the first prac¬
study
evaluation
into
this
future, and
surprising,
accustomed
as
as
studying the prospects
of the years ahead.
Before
it
will
we
FASTEST
look
be well to
pendent telephone
years
check
hence,
our
cent
future progress.
the fastest in the Pacific
ment in
an
utility plant
were
achieved in 1957. This year
extensive program of expansion is under way, neces¬
sitating expenditures of
the
approximately
$8,500,000. Our
report outlines the year's operations and
promising prospects for continued
progress
in 1958.
per¬
past. These provide both the
"launching pad" and the impetus
our
company
Northwest. Record high revenues, earnings and invest¬
1957 annual
21
utility in the Pacific Northwest
Security analysts rate the postwar growth of this inde¬
Copy available
spective by recalling briefly some
of the accomplishments of the re¬
for
GROWING
Anniversary of Edi¬
invention of
satisfactory increase in net profits for 1958,
Write for
the
son's
on
request.
WEST COAST TELEPHONE
300
MONTGOMERY
STREET
•
COMPANY
SAN FRANCISCO, CALIFORNIA
187
Volume
Number 5752
for-the electric industry,
comment
to
like
trending
.
.
.
The Commercial and Financial Chronicle
I would
briefly
on
our
plotted
chart, two basic.
on a
types of line can result..
-
first
The
rent
hours?
rate than the
By 1979, it will be 665 million
When data for any given factor I:
are
duce those three trillion kilowatt-
process.
is
the
straight-line
type of relationship, or arithmetic
curve;
The
second
is
the
ex¬
ponential relationship, depicting
constant
percentage
This is the kind of
teristic of many
of
kilowatts.—nearly five times
million kilowatts—more than five
limes the 1957 peak.
A reserve
a
charac¬
phases of electric
margin
of
15%
demand
over
is
included in the capability projec¬
tion.
*
In. predicting
and
demand,
sales,
capability
have assumed
we
a
factor
of
performance.
But
in- load
66.6%, approxi¬
dealing with a curve that rises at* mately the present average for the
a
fixed rate of increase, we run- nation. There are many variables
industry-
in to
problems.'- It
is
difficult
dollars,
but
at
far
a
lower
general inflationary
trend.
A pair of dollar figures of great
^
to- which
enter
1
pay.
Projecting
term
basis
revenues
shows
long-
a
by 1979
they, should' be about $50 billion
annually, over six times the 1957
record of $8 billion.
It is esti¬
that
mated
these
needed
to
on
assure
straight
a
line,'.
*
Let
us
that
assume
points
of
other,
summer
applications
a
!keep, local, state and Federal govern¬
and winter peaks in bal¬ ments
will
reach
an
estimated
We believe that the; salesand'/ promotion • abilities
of
the
plotted on graph paper having
companies will be exercised imag¬
equal disances on both the verti¬
and. efficiently during,
cal and" horozontal scales, and that1 inatively
the years ahead, with the result
these points reveal a constantly
plot
the
points
on
semi-log
graph
paper in
order to express that
curve as a .straight line.
This fa¬
rising
We
curve;
then
can
that
load
about
factor
will
continue
at
today's level.
total of
six
nearly $12 billion in 1979,
times;
.
last
year's
figure
of
about $1.9 billion.
Our forecast for
tennial is
of ways, not
only for
but for the nation
industry
our
as
as
we
as 20 years
maintain the
We
just
sonal
which
whole.
a
standards
Russia's
tion
,
of
No
produc¬
they
of
permit substantially
produce to go to
civilian
The
needs
offsetting
•
than
a
will
we
advantage
we
do.
can
an
—
don't
when
seem
so
many
to under¬
we
like it
or
economic animal.
production
not,
man
What he
And
a
man
cannot, be free under those
in
It is
con¬
—
man.
ditions—even in his thinking. In
the United States,.men and; womeit
great incentive and. to the ex¬
we
States*
does, by an large, is reflected iti
economic terms. In Russia, where
government operates the economy^
it also operates the chief tool of
the
to
work
atmosphere of freedom.
tent
others
Whether
is
over-all
United States is that
United
the
stand it themselves?
living and that their
of
less
to
Americans
will
rulers
an
this
year.
It is clear
trained to a lower
are
in
we
more
determined people.
are
can
stimulating to their initiative and
creative
abilities,
can
produce
of all that is valued by man¬
kind than any system run by gov¬
ernment?
How can we explain
per
doubts that the Russians
one
of terms to avoid in¬
explain to the world
how free men, in an atmosphere
capita
figure for the United States, and
only about one-quarter of the
4,223
kilowatthours
for
every
last
by the
dazzling
It
the
patient explanation and
use
right here
How
1,044 in 1957,
slightly below the 1936
solved
of
creasing jealousy or hostility. And
the problem is of great dimensions
living and in
Russia
was
be
economic system.
our
will take
worldwide
a
misunderstanding
display
fruits of
which
area
kilowatthour
capita
per
standard
t Of the 665
million kilowatts
In the dry figures presented here
predicted for 1979, about 500 mil¬ are the f lesh-and-blood of excit¬
lion, or better than 75% will be. ing
accomplishments
to
come.
cilitates
the projection
of past
in plants of. the investor-owned These forecasts present an exhila¬
trends into the future and makes1
electric companies. What will this rating. prospect. This is the kind
it easier to see what may be ex-,
mean in terms of money invested?; of
big job that is the glory of the
peeted in the years ahead. We are
In .terms,
of - the
dollars .ex¬ American free enterprise system,
using charts drawn on semi-log
pected to be current in 1979, tak-. the kind of achievement no other
important
one
than
in
cannot
simple
over-all economic progress,
is 21 years behind.
that
have
problem
has high significance both in per¬
.
papeiyvyb'ich ' is' characterized by
constantly decreasing spaces on
much
can
both desirable and
seems
attainable.
careful
American
Light's Cen¬
significant in a number
-
If
Russians
qualities and products which have
given us this wide margin of lead¬
ership, it is perfectly obvious we
are
capable of keeping our posi¬
In
to
ance.
£ast p er forma nee have been
of government or
tion.
.
dealing with
probably
because
they have al¬
by one form
another* and the
standard of living promised by the
In this category
of
productive
ahead.
hensible,
ways been dominated
commerce
big lead — both in
living and over-all
capacity. In fact, we
a
standard
will
.
are
production,
have
we
investment
revenues
produce the return
predict its future course because picture, including increasing sum¬ i If the presen rates of taxation
and
a
of the.constantly changing slope.- mer load
growing trend, continue, the amount of taxes paid
The task is much easier when we toward
selling, electric
heating, annually by electric companies to
and
particular drive in the field of
are
on
that
continuing
flow of capital for the expansion
the load factor; of electric supply facilities,
into
a
industrial
and world trade.
was
at the end
of last year. interest are electric revenues of
Peak load is expected to reach 578? the
companies and the taxes they
increase.
curve
what-
it
41
(2753)
protect and preserve
are free to. determine what they
strong.
shall do, and the government fy
promises a better life instituted by them to maintain
the vertical scale.' ' - 1 -1
(
about $221 billion -r- nearly six
leadership to America beyond that for pepole through freedom. Rus¬
order and fair play.
When yoi|
The theory behind forecasting
times the $36%, billion at the end of any nation in world history.
\
sia, too, holds out the promise of have freedom of
action, freedom
is t^at, if we "have* enough past' of last
year,
•
; y , ■ ;
^
;.
Who, then, ean be daunted by a better .life for- many .in the of thought, of imagination so with
informationj .about ; a • Particular
-If we take this -investment on what-we-see ahead?
Only those world, but the Communists seek
it—if, for no -other reason- than,
factor,, and if we^can make rea-f the basis
of; 1957 constant dollars,, of little .faith, only those who to conceal the mechanism for it$ because you have to; pick -among
sonable assumptions about the fu¬
it would be about $174 billion have always
m i s trusted
the achievement—slavery. Our society many courses of action, to; which
ture,; then these two sets of data You can .see what- the inflationary American system, only those who is basically one of freedom and to devote
your time and energy.
can
he" used" as". a ^ guide' to whaf
trend in the economy is likely to are incapable of understanding it. abundance; the Soviet society one
Is likely to happen in the future.;
of slavery and scarcity.
mean' in electric, plant investment
Government Operation
For our own sake as a nation,
*'
1 For* the electric ■ industry, we —something over $40 billion in
But there are millions irv the
"Strangulates
ing inflation into account, electric, system has been able to approach,
company plant investment .will be and which, in fact,, has brought
it
will remain
we
American
'
-
,
.
-
well
as
trended; the record from "1933 to 22 years, V;'.; ;;
the pTqsent and projected it to.
However, if we examine this
1979.
The; results
correlate re£
investment in terms ( of cost per
mark ably "well with the',indices
kilowatt of
Of other factors in the economy.., ;
...
In the
son's
Centennial year of Edi¬
electric light, then, wef see
-
for
annual sales
three
about,
industf^ of
the
kilowatt-
trillion
capacity,
it
becomes
indicates the over-all cost of
struction
in
the
electric
con¬
utility
:
5 ,
field.
In it are the factors of
Thfs is over five times thOsafes= higher labor , and materials ex¬
for last yekr. To reach this figure penses. ~ But,; because
we
have
annuaV'rfte of growth of about
of
doubling
is. estimated, with a
sales'every nine years.
ling
.
seem to be, it may even be
conservative in view of past per¬
formance and what can be loremay
Remember,
seen.
sistently
have con¬
in the past,
we
undershot
not
through
objective
statistics, but, primarily
of
use
because
growth seemed so
hard to believe at the time.
indicated
the
You
inset
the
be
may
on
the
interested
chart.
kilowattbour
would
appear
It
when
iti the
shows
sales
been
able
able
record
to
Start-; design .and
trillion figure
that three
as
how
projection
plotted
on
arithmetic paper.
have* little
of
first-hand
America,
should
we
f
who
knowledge
maintain
of
a' remark¬
advances
construction
in
of
ties.
.
c a r e
about
1
;
-
u
be
ex¬
crying
..
do
in
can
seriously
the world
mislead
who
look
to
up
at
shown
-
anywhere near the • rate
by over-all construction
costs.
of
our
With Soviet Union
The
Russians
In
conclude
stalled
1957,
kilowatt
the
cost
for
all
per
in¬
electric
plant, including generation, trans¬
mission and distribution facilities,
seem
and
Continued
on
page
California-Pacific Utilities Company operates electric,
gas,
determined
field in which they
their comparative
any
possibility of
success, we
can, I think, expect
aggressive action to implement
the challenge. In weapons, science
strength
During
the
compre¬
water and telephone services, one or more of
which
future.
challenge this country's leader¬
ship.
them
more
AQrmngViml
is
to
To
it.
system is
for
trous consequences.
Comparison
achieve
Russian
others
us
leadership, with potentialy disas¬
new
have been able to keep the
really important figure—cost per
installed kilowatt — from moving
today
.
modesty or actual mis¬
representation of what we can
the
ers,-
who live in such
So, when government operate^
conditions of misery and, ignor¬
the economy and* the industries
ance
that they cannot; begin to
which make it upvitia also oper4
imagine what the American stand¬
ating the people and; depriving
ard of living really is, or how the
them
of freedom, •, Government
free exercise of
human ability
operation of any/ industry, or any
could
: '
z
^ False
We
should
not
be
afraid
of
plant and equipment, particularly.
in. the use of larger and larger realistic optimism, in the electric
or
anywhere else in
generating units, the utilities, with industry,
the fine work of the manufactur¬ America, in the careful evaluation
offers
economics
a
the
Russians
provided in 69 communities in California, Oregon,
Nevada, Idaho and Wyoming. These five states experi¬
increase in population in the most
enced 40 per cent
recqnt census decade, against a
per
cent
—
national increase of 19
and this trend continues.
are
believe that
showing great energy and will
undoubtedly make some progress.
it will rise slowly in terms of cur¬
Recently, they have been making
was
Now,- what is the magniture of
the electric plant which will pro¬
matter of principle, but
a
as
"poor mouth" about our capabili¬
Handy-Whitman index line
world
.
rapid than the inflationary trend.
;
an
us
tremely
hours.
8%
believe in
apparent that the rise is much less
The
1
for those elsewhere in
as
the world who may
about
$375 for the investor-
owned companies. We
H Iftrfrr
CUSTOMERS
(THOUSANDS'
THE CUSTOMERS KEEP COMIHG!
r
Last
■„
5,474
of
new
a
year
customers to
Steady growth since World
total
total of
equivalent
California Water Service Company added a
its 28 systems — or about the
community with a population of 15,000,
new
customers
to
War Two brought the
company's
representing an
about the size of St. Louis, Mo.
231,845 by the end: of 1957,
estimated population of 840,000 or
1947
Between
.i
:■
1948
1949
1951
1947 and 1957, number
33,994 to 62,425; total revenues
$9,005,794; net income
tomers
CALIFORNIA WATER SERVICE COMPANY
1950
374
West Santa Clara
Street
San Jose, California
86 per
increased 84
per
1952
1953
1954
1955
1956
1957
of customers increased from
increased from $3,758,994 to
increased from $411,965 to $766,596. Cus¬
cent; revenues 140 per cent;
and earnings
cent.
California-Pacific Utilities Company
405
MONTGOMERY
STREET
•
SAN
FRANCISCO
4, CALIFORNIA
42
•
Continued from page 41
of
But
»
industry, including
power,
inevitably starts
the constriction and strangulation;
of human freedom, even though
this may not have been the inten¬
part of
electric
;
i
any
basic signifi¬ vestment, can be
more
will
in terms of
shorter work
mean
human' progress. • A
Obligations and
To Electric
even
on
is what these kilowatthour
cance
figures
i
and Financial
The Commercial
(2754)
42
themselves
human
Utility Industry
fundamentals
in
civilized
life
—,
heating,
one
and more time
drudgery,
aspects
which
ulti¬
the
produce
mate values—and which cannot be
Potentials in Heating and Lighting
house
of
more
of
the newer applications, is gaining
beginning.
in importance as a means of bal¬
up the difference be-,
twecn the two systems are living ancing the growing air condition¬
conditions here and. in Russia. In ing load. When the customer be¬
the Soviet Union each person liv¬ gins to think of home heating as
well as home cooling as a job for
ing in urban housing has an aver¬
tion at the
Pointing
of about 79 square feet of electricity, we will have opened
living space — equivalent to a the door to dramatic increases in
our rate of growth.
room slightly
smaller than 8 by;
Lighting, the load on which the
JO feet; In, the United States each
American- has
on
the
average industry was built," still has great
about 370 square feet —- nearly; potential. It has been pointed out
five times as .much living space,' that home lighting has been in¬
age
made
helping to make this future
prospect a rewarding reality for
all people, the electric companies
will continue to operate with in¬
creasing efficiency in producing
an
abundant and dependable
supply.
themselves
companies
The
full
take
will
Sound Financing
advan¬
and expansion
of
electric industry to serve the
lic well is good regulation.
of the economy
Through the payment of taxes,
electric companies contribute
the
electric
America's
ship
£o when
electricity,
talk about selling
we
dealing with an
area of economic activity that the
Russians know nothing about —
we are
their problem continues to be one
of -rationing.
our
But a great deal of
attention is devoted to selling
electricity and its applications to
the consumer for
Right
in the home.
use
the
now
residential
and
rural category accounts for about
23%
of
total
watthour
United
States
kilo¬
By Light's
sales.
Cen¬
tennial. residential and rural sales
.
f
will rise to better than 35% of the
total
estimated
kilowatt hours.
In
'i1
us£
1979,
three
The
such
with
rural
and
of
electricity will be
I.T"; trillion kilowatthours,
about
in large
establishments
stores and offices,
of fuel
cost
required to generate
a kilowatthour of electricity well
below the levels of the past dec¬
the pro¬
ades.
But
portion of total electricty sales
approaches 20%.
By 1979, power purchased by
industrial
customers
will
total
ment
in
as
about
1.3
kilowatthours,
trillion
times the 283 bil¬
kilowatthours used in 1.957.
than 4M>
more
lion
Commercial
use
will be 533 billion
5*2
times
year's 95 billion total.
kilowatthours,
Reflected in these dramatic
in
industrial
fice
last
processes
activities.
A
big
and their
gains to
For
and
research
different
has
nation
This
high
a
level
wisdom and sense
fuels
hold the promise of
uses
particular
been blessed
of regulatory
of responsibil¬
bills could have bought 137
jet bombers at $8 million
Or they could have built 23
new
submarines
B-52
now
possible
home
was
coal, and use the remaining
low-grade residue in a new type
cost
valuable
from
furnace
of
for
the
generation
of
electricity.
Atomic Fuel
fig¬
and in of¬
factor will
The
use
course,
fuel
atomic
has, of
drawn the geratest public
attention.
time
of
it
But
will
be
a
long
this
25 years ago,
in the
half of what it
and the over-all
of
living has doubled. The
electricity price record stands out.
in sharp contrast to that of other
goods and services. It has been
as
a
result
of
good
regulation, gains in operating ef¬
ficiency, careful watching of
expenses,
and the public's con¬
stantly
year
ing facilities of the entire Tennes¬
Valley Authority,: with the ex¬
see
million plant
ception of the $600
to serving
Commission, j
Incidentally, it is worth empha¬
allocated
investment
,
the Atomic Energy
sizing that the plants of two spe-:
daily organized groups of electric
companies supply about half the
load in
AEC
the TVA
charged
groups
those
as
electric
at the same
but the
are
of
The
area.
these
by
level
TVA,
are not exempt from
local, state, or Federal taxes.
increasing
and
local level,
million in taxes
paid last year by the electric com¬
panies could have been used to
build 320 high schools, each cost¬
p o w e r
the
On
kilo¬
per
revenue
less than
is
one
the cost of all the power-produc¬
the
watthour of electricity used
example, it is
Federal taxes for just
could have covered
company
companies
Per
Revenue
average
million
matter of fact," the" electric,
a
company
Kilowatthour
The
$48
:;1;:l4
As
rates
customers
to
at
each.
any
Declining
chemicals
to
interest
billion
each.
pany
which will not.
of
come.
extract
new
$1.1
paid to the Federal Government
last year through electric com¬
going
are
the
example,
For
to continue to
high levels, there is one of
future
develop¬
types
weapons
public.
for the
leader¬
power
it for the future.
achieved
will be increased automation
ures
residential
electricity
of
commercial
In
trillion
-
use
industry accounts for about half
of the* total of all power sales.
other
and
submarines
and will continue to
today
example,
will
play, an increasing role in the op¬
eration
of
constantly v growing
Many of these advances combine
to bring
down the amount and
building of missiles, nuclear
to the
the
■
afternoons.
company bills,
other parts
would result.
serious dislocations in
ity on the part of the various
generating plants. Electronic com¬ utility commissions. In fulfilling
puters will be used more, and their basic mission of protecting
His freedom restricted in creasing at a much slower rate more widely
to
determine in¬ customers from poor service and
than kilowatthour sales for other
countless ways, even in his living
stantly what combination of plants unfair charges, the commissions
services in spite of significant ad¬ in interconnected
quarters, the Russian consumer1
systems should have also recognized the impor¬
has
very
little choice in other vances in the art of lighting. be used to meet changing power tance of assuring fair treatment
Proper development of these ad¬ needs most economically. • ,
for investors in the utilities. This
things he needs and wants.
In
this nation, < producers of goods vances, according to a recent EE1
Generating units themselves are is not only because investors make
report, could add more than 700 being built in larger and larger up a larg part of the public them¬
and Services
devote effort and
per
customer
to sizes,
ingenuity to selling their wares to kilowatthours
and transmission voltages selves, but because good service
the consumer. But in Russia, the utility loads in the next 10 years. continue to be increased. Devel¬ depends
upon -investor
willing¬
consumer must choose from what And ' load in the home lighting opment in these and other fields ness to supply funds to the utility
is offered that he can afford in* field has very desirable charac¬ of power supply technology will for continued expansion of facili¬
with
peak
loads
on make constant contributions to the ties and service.
either scantily
stocked ^ govern¬ teristics,
ment stores or the black market— many utility systems shifting
Although many of the financial
efficiency and low cost of electric
factors in the electric industry's
and neither is concerned with cus¬ from winter evenings to summer service, v
tomer satisfaction.
taxes had to be
other means than
pub¬ for defense, to government con-:
The servation activities, to hospitals,
schools, and to all the many other
intelligence and understanding of
services which governmental
the regulatory commissions have
in the past helped make possible agencies on every level perform
tage of the technological advances
their service makes
possible.
for
of money
electric
through
sound fi¬
factor in the
key
assure
Automation,
raised by some
and Expansion
nancing
these
reason,
investing.
A
by machine.
In
power
market in
opportunities for
companies good
huge amounts
highlight the' importance of the;
electric companies as a tax source
in the entire economy. If, for any
general, representing a variety of
individual and corporate interests,
will continue to see in the electric
for people to develop as they will
in the creative, spiritual, human
offer these major opportunities.
Electric
and
more
stock
The
securities.
Thursday, June 19, 1958
. > •
These
expected to keep
major proportions of
funds into electric company
putting
their
week, more machines to take upon
Chronicle
con¬
state
nearly $800
million, and each
providing modern educational fa¬
ing about $2i/2
cilities for about 750 students.
There are,
of
course, many areas
government spending of tax
which can be considered
of
money
very questionable, to say the
Because the money
of our
least.
cus¬
involved,
tomers
is
have
responsibility to do what
to help them, keep their
,
a
before
heavily
we
electricity produced sumption.
growth and creation of new
we
can
and job opportunities. from nuclear fuels will be fully
Of the total revenues received
thinking straight on this vitally
competitive with electricity pro¬ last year from customers by the
spectacular example of
watthours in 1957,
important matter of taxation.
this in recent years is the elec¬ duced from the so-called conven¬ electric companies for their serv¬
tn developing this prediction,
tronics industry, whose principal tional "fossil" fuels
coal, oil ice, 23%—23 cents out of every
Public Power
we" have included the effects of
growth has come about in the and gas. The fossil fuels are not dollar
went for taxes of all
For example, it seems unwise
adding about in, "phantom" ap¬ dozen
years since World War II. inexhaustible, however, and with kinds, local, state and Federal.
and unfair for governmentally op¬
pliances a year—new applications In all of the enterprises making the tremendous increases in en¬
Over the years, the tax pay¬ erated power projects to sell elec¬
of electricity for the home which
over
the
up
this industry there are now ergy needs expected
ments turned over to government tricity at a price which does not
cannot now be foreseen but which
about 1*2 million jobs, and annual years, there will come a time of
by the electric. companies have provide for taxes which are in¬
will influence consumption. This
sales total more than $13 billion. growing reliance on uranium and
mounted into astronomical sums. cluded in electric company bills.
reflects the rapidity with which
It would have been difficult in¬ other fissionable materials.
Since
1933, for example,
new
about If those served by TVA and its
developments in electrical deed to
So the electric utility compa¬
predict 20 years ago, on
living come into begin and are the basis of what was,.essentially nies, the electrical manufacturers, $19.7 billion in taxes have been municipal distributors had pro¬
paid. Between now and 1979, an vided for Federal income taxes in
accepted by the American public. the radio business, the tremendous the new atomic
industry and the additional sum of
$122 billion in their electric bills in fiscal 1957
But
there
are
two
fields
in development
of
the electronics U. S. Atomic Energy Commission taxes will be
collected through on the same basis as the customers
which applications of electricity
industry. I am sure that there are working now to bring about
electric bills, for a total of more of electric companies do, $49 mil¬
could cause advances in use which will be other industrial surprises economic nuclear power for the
than $141 billion since the year lion would have been added to the
seven
times
the
158
about
billion
kilo¬
be the
industries
The
most
—
-
—
would
exceed
predict.
what
Light
and
we
can
heat
—
pow
two
of
similar magnitude
two
in the next
decades.
benefit of all mankind.
that
Today, less than four years since
Congress permitted industry to
and
own
operate
nuclear
MASSACHUSETTS
COMPANIES
tax-escaping
TVA
was
U. S. Treasury.
Further, the 80% of the people
power
plants, the electric companies
WESTERN
the
established.
are
participating in 27 atomic power
projects,
including
15
nuclear
power plants either in operation,
under construction, or planned.
—
This
had 1,209,081 common shares outstanding on December 31,
ried
1957
on
expanding program,
in cooperation with
manufacturers
—
is owned by
Energy
15,778 shareholders
more
—
—
Commission,
is sole
owner
per
share
of Western Massachusetts Electric Company
As the electric industry grows
in all its aspects, so do other sec¬
the
American
free
So, too, does
market
in
its
capacity to finance growth. We
in
the
electric
industry expect
to
WESTERN MASSACHUSETTS ELECTRIC COMPANY
Q
serves
136,000 customers in 55 cities and towns in western
raise
the money for
the plant
making up tomor¬
row's industry in the free market,
and equipment
as
—
has
The financial
sources
of the
na¬
will continue to look to the electric
companies
—
had $28 millions of gross revenues
during 1957
Where per capita savings
among
and investment
the highest in the nation
where in creasing
to
supply
is
fostering
its
always been done in the
tion will continue to expand, and
operated Sill millions of plant as of December 31. 1957
NEW HAMPSHIRE...
.
demand for eleetric
industry,
a
.
growing
farms
and
electric
.
are
and
power
homes
industry.
past.
Massachusetts
—
Thrifty
involves
than half-a-billion dollars of
tors of the economy.
—
the
Atomic
electric company funds.
in 1957 earned $3.23 per share
during 1957 paid dividends of $2.20
the
and
car¬
as
good
put money to work. Insurance
companies, for example, with con¬
increasing
>
COMPANY OF NEW HAMPSHIRE
AND SUBSIDIARIES
places in which
to
stantly
PUBLIC SERVICE
sums
for
in¬
Executive Offices:
Manchester, N. II.
c1
tid
Number 5752
187
Volume
'.
.
The Commercial and Financial Chronicle
.
(2755)
United
the
in
States
served
companies
electric
by
be used
taxes
pay
This
through their bills to help make
ernmentally supported
1
e
e c
ti
Later
ic
The
all
cus-
bills
-
of
only
same way
electric
their
through
that all
assure
taxes in the
tomers pay
because
electric
ing it in
agencies, or cooperatives.,
-
follows, too, that tax money
should not be Spent to build more
It
government power projects.
investor-owned
companies
Just
mean,
are.
economy
of
values
The
public acceptance
Just
whatever .magnitude,
an
indication, the 12 Vz
as
million kilowatts of
scheduled;
to
one-third
the
total
indicate
what
this
ating capacity of TVA.
The
ignorance,
able-to build each year the power
equivalent, of
there
one
TVA.
no
need
be
can
and
the. burdens
of
the
t
add
a x p a y e r
through the construction of
more
cus-
curve
ernmental
a
be
that the
clearly demonstrated
only
be taken
.
page
[ED. NOTE: Mr. McAfee has
prepared
of charts relative to the
projec¬
spelled
out
in
the
text
of
his
series
Then —since
keep
to
are
thinking
are
a
(5)
Must
what we
Let's sell them harder
to.
the
.
.
are up
.
the
on
...
7.
astic,
effective crusaders for
electric way
of living.
help do the job.
In
Next, let's be prepared to invest
a
show-
lot
dollars
more
in
sales
and
advertising. We once invested a
dollar to get a dollar of new rev¬
enue.
cents
Today
.
.
spend
about 30
which buys about half
.
we
what 30 cents
not a govWhere would
formerly did. Thus,
been gradually
decreasing, while that of other in¬
dustries has been increasing.
our
.
,.
the
They
can
All
made
tor
of
include
is
forecasts
a
basic hidden fac-
crucial
if
the
goals
we serve.
we
Enterprise
It
clear, however, that
has
program
Roughly 1.6% of
goes
into promotion.
This figure
connection
talking
with
to
use
more
in their
own
we
National Level
To
to
...
an
investment that is just as impor¬
tant today as the investment in
new,
It
but
still
capacity
was
yesterday.
-
may be hackneyed to say it,
the way to make money is
to spend money wisely—an
idea that
our
consumer's
competitors for the
have already
dollar
been
.
.
.
what
Sales Effort
begin with, I do not intend
sell
short
the
splendid pro¬
grams we have today. These have
been performing heroically.
But
grams
future
possible
appliances
homes.
do?
it is evident
our
of
can,
neighbors—-if
electrical
On the national level
can
tunity.
We need to recognize this as an
their
we encourage as many as
revised, as
an elementary first step in capital¬
izing on this tremendous oppor¬
investment in
we
course, make better salesmen of
these employees—when they are
our gross now
should be reviewed and
this
now
that these pro¬
not enough.
are
;
Nationally, we need an overall,
industry-wide sales effort
sponsored by utilities
to capi¬
.
.
talize
on
.
the present market
meet the many
*
.
.
is what
long
they all depend
We
run.
curve
of belief
electric
must
Yet this
on, in
competitive chal¬
a na¬
is
is—our real competi¬
just with the gas ap¬
There's still plenty of
not
pliances.
move
the
in free enterprise
supply up, among
employees and our customers.
Making this curve take the right
power
ielligence
progress
portant
no
and
less
a
hard
task for in-
work
than
in any other of the imof company policy
areas
operation.
When
business for both electric and gas.
Our
most
potent Competition
-'
-
meet
and beat it.
Because we
have the best product. We know
we have the best sales
story.
•
We will tell that story more
dramatically.
Tell
to
it
forcefully. Tell it
people
and make
.
them see it
lost
Tell it more often*
more
more
this
round.
a
.
.
do.
we
as
at
point
Maybe
have
We
look a
people. But
we
little groggy to some
now's the time to get up and Come
back swinging with our own Sun¬
day punch.
i
Sure—our
competitors are do¬
ing a good job. They have made
real progress. But
they have also
done us a favor, if their successes
prove to be the spark which fires,
us into more aggressive action.
\
It isn't like this
a
industry to take
back seat to other industries In
imagination,
ideas,
Or
anything else . . * to neglect our
obligation in any fashion to any
segment of the public we serve
energy,
...
or to be
anything but the best
in
everything,
manship.
But
there's
Facing
including
no^
doubt
sales¬
about
we
what
it;
today,
a9
we
look
position of leadership
our industry deserves, is a prob¬
lem that calls for prompt and ef¬
us
fective action.
It's
We
a
,
problem we must solve.
must
solve
it—and
solve it—with better
we
selling.
Now With
can
;
Dillon
(Special to The Financial Ohhonicle)
v*»
t
LOS
C.
ANGELES, Cal—Charlotte
Quasebarth is now associated
with Eastman
rities &
vard.
Dillon, Union Secu¬
Co., 3115 Wilshire Boule¬
Miss Quasebarth
merly
with
was
for¬
Croweil,
Weedon &
Co. and Francis L du Pont & Oo.
^{*y
■>,p,
We are at the forefront of a
struggle to defend two basic tenets
of the American way of life —
In
age_0ld
people
attitudes are,
and
continuing
to keep free of
^humanizing domination of
government, we of the electric
er
industry have a unique
position. The challenge today is
greater than it has ever been and
reqUjres constant vigilance, intelligence and the willingness to act
promptiy against threats to freedom
the
consider what
the
man
when
ever
and
their
,
CONNECTICUT
wherever
/.. t >
J
m.
appear.
The ways to slavery are camouand how to get our
own ideas flaged in many guises. The naked
across to them, we are not dealing
use of force, chains and shackles
in
some
occult
art
difficult to are not the most effective techcomprehend.
Basically, we are niques of would-be masters of
involved
in
communications — mankind. These obvious methods
and
communicating
with other inspire the will to resist among
people takes up more of every- those not immediately subjected
one's thought and effort than just to them. Instead, economic methabout anything else he does.
»ods are used; the granting of ecoNot only does everyone have a nomic favors, or their withholdcertain
natural aptitude in
the ing; the threat of deprivation, the
field
of
communications,
there lowering of status, or standard of
have been developed techniques, living; the setting of one group
practices, and tools to facilitate or nation against another for mawork in gaining public acceptance terial advantage.
A government
and understanding, and they are which has the power to make use
available to all of us. But if they of these methods anywhere in the
are to be effective, they have to
world as certainly threatens men
think,
real
a
toward the
The fact
tion
do
should aid^Jiemby not eve
tempting to tell our story,
the struggle of
our
direction is
of
No matter how
aggressive is the
competition in the future, we can
and
lenges of other industries.
cannot
program
doesn't show anything like thority, and a free economy, not
accomplishment the curves for operated by government,
the other fields indicated.
and
com¬
programs
free speech) untaxed, not subject
to
censorshiP by governmental
fiscal agencies or any other au-
Hidden Assumption of Free
the
national
prevent us from offenng facts
about ourselves and the nations
have
we
are to be met.
That is, quite simply, acceptance and understanding
by the peupxe
people
uy
of
electric power supply to the pub-
'
the
which
It will help meet the
Maybe
.
our
(4) It will stimulate retailers to
effective sales support.
address.]
heavily underscoring.
comes from the thousand and one
Third, let's increase our sales
Other Vendors Of goods and serv¬
forces, and improve their calibre.
Let's see that they do a better sell¬ ices whose products for the mo¬
ment may seem to have more sex
ing job in areas where we need it
most right now. Then, let's keep appeal than ours.
to be an issue indicates that far
A well-conceived national pro¬
1()0 in favor. And that's the dif- up an active interest in all the
too-inahy
..JpeOple are,not aware £erence between a simple plural-. problems facing our sales depart¬ gram will accomplish several im¬
!^e,
J? ity and a two-thirds majority.
ments, and keep on giving them portant jobs;
Understand them. And a climate
v
the support they need and deserve.
(1) It will provide a modern,
of good public understanding ' is
There are enough people ,un- J- Finally v. on the local level
efficient way to reach 47 million
essential to us in the electric in? sympathetic to us, with an. awarelet's get all our employees in on residential customers, at a mini¬
dustry, if we are to realize the imssofthe value of public opni- the act. Let's tell them what we mum cost per customer.
full measure of what we see in »<>". Who are doing their utmost to
Americans
tie-in and advertising sup-
more
.
.
future for. our cusomers,
turer
port.
tions
Selling Is
effort.
Advertising
is an organization representative
of the American way of producphilosophy of freedom and five enterprise, made possible by
which offers equitable tax treat- the investment of the
savings of
ment of all customers. Further, we
people like themselves?
That it
lead the world in electricity sup- iS
operated by people like tbemply because electric service was selves who are constantly striving
developed by enterprising organ- to provide their neighbors and
izations in an atmosphere of free- friends
with
the
best
possible
dorm In other parts of the world electric service? '
where government has undertaken
Such a chart would show what
the operation of electric systems,
the eUect would be> if the 24%
achievement has been nowhere
were informed that they received
near as
great..
their service from companies. InAs a logical matter
therefore, stead o£ 56 out of
every 100 cus_
the question of so-called private
tomers
favoring investor-owned
vs
government power should not
companies, the percentage would
exist.
The fact that it continues
rise about i2 points, to 68 out of
the
our local sales
campaigns,
(3) It will encourage manufae-
It is
can
investors,our employees-for all
a
to'
launch
30
Budget More for Sales and
this
being served by an electric company? That an electric company
which should
course
power industry is
embodies the Ameri-
to
a
vigorous determina¬
obligation in meeting it.
our
.
future.
by the
which
that
accept with
tion
plan, company
and make them eager
regardless of the shifting business- to sell our
company ideas to the
climate .
regardless of whether public. In other words, let's trans¬
selling is tough or easy in the form our employees into enthusi¬
supply requirements can be it be if electric company people
fully met by electric companies had paid a friendly call on each
operating under, the American 0f our customers and had told Mrs.
free enterprise system.
^
; Smith or Mr. Jones that they were
can
five-year
wasteful—let's
power
It
continue
on-again, off-again promotions
company,
agency?
from
Better
a
electric
an
government power projects; when
must
society,
we
which
job unless it is backed to the limit
by all of us.
)
jng customer sentiment for the
companies be if the customers
knew they received service from
to
own
and
us,
in
out*
of
because
where would that
Certainly
to
The chal¬
lenge is clear before
climate
tional
governmental agency
panies which pay taxes instead of gets the credit! This is the kind
draining public tax resources are' of irony that can hurt.'
com-
they have
based their civilization.
(2) It will help to maintain
receptive
can
a
community,
gener-
on which
other industries.
Continued
backyards.. '
our own
into account the ignorance of their
families, which would bring the
total to over 30 million people,
capacity
our
believe,
petition
for,' addition Iby the So
an
investor-owned
electric
this year exceed by company does a good job in its
companies
about
new
In
supply
power
cans
endure and reach ful¬
can
fillment.
The tomers don't even know that they
have, are served by an electric company,
...
vital weapon in to¬
a
worldwide battle to assure
a future for all mankind in
which
the highest human qualities and
constantly demonstrated t h e i r That means about nine million of
ability to meet all power require- those we serve, without taking
ments
is
day's
exemplify the freedom to exercise
human abilities in which Ameri¬
have neglected terid-
we
survey has pointed
about 24% of our own
that
any
,
Electric power supply in a free
Convention,
careful heed.
does
as
is not up with the others is
no ' curve
governmental
take
us
reason our
matter who serves them, whether
companies,
the
slavery
horde of conquerors.
our
ideas on "how to do it" in
public and employee relations will
be presented to you. I hope that
equitable solution for this
situation is to
in
on
where
we
some
systems.
•
is
most important people
served by various gov-
20%
the
that
with ultimate
people,
in the communities
because
serve,
for what is not collected from
up
and used with
—
means
43
•
The
areas once
served by The
Connecticut
Power Company and The Hartford Electric
my
Light Company
are now
(since January 1,
1958) served by one company.
Annual
THE HARTFORD
{
Report available upon request
ELECTRIC IIGHT COMPANY
176 Cumberland Road
Wethersfield, Connecticut
i,t „i
investment, and erations, if carried to the ultimate,
' .
would mean government ownery
shin of all the means of producThe many Federal organizations.
would all be working for
handling these fields are free from won
we w wa ^ v..
^
many
state, local,, and in many goyernme t.
..
cases, Federal taxes.
Thus, these
In. my book, that is socialism,
kind—Of. agencies have an unfair competi- and though it is a
business, foreign
Continued from page
3
,
inter-governmental loans. i
j
;
«
•
-
-
.
stultifying to the
centive by outright interference dynamic long-term
growth that.^ye advantage
and by unfair competition when has characterized this country in - prise.
Where
the
ihey try to do things for them- the past ...
\
solves.
of in- is
"If our economy is to
•
and
The Spread
of
survive
concerned
must see to it
we
prosper,
Government
over private enter. • ■ ■
.j" ,
private lender is
with earning a profit
feels
and
immediate
an
some,
face it.
.
.
Government
Federal
The
every
lives
the
touches
day in some way or
more."
harder and produce
now
each of us
of
incentive to work
has little or no
respon-
The- obvious
another.
>.
aid
socialism.
creasingly high taxation is the
if
they
'
1
It would be serious in any
...
...
-1-1
_
from the Federal
direct Federal aid
in my judgment,
gives real cause for concern. It
individuals,
centralization
of
government
in Washington,
with correspondingly less control
by individuals over their own
indicates continuing
ernment
'
of
sion
people, it creates new classes of
selfish vested interests who resist
Congress,
housing
other
has curtailed 50;
of discontinuance
and has
scheduled 161 operations lor dis¬
attempt to change or end the
particular program that benefits
any
"Communism*
The longer a
operates,
Yes, there is
in housing
in spite of the fact that
of the real estate and
expansion
Returning to our main theme, I
wish to refer to an excellent study
made
recently by the Legislative
Section of the Library
Reference
is
when there
curtailment—for a
by Defense officials to determine
whether they can be eliminated.
Elsewhere in government, 145
billion
since
curtailed
continued
lower
income
groups
may
eventually
extend to government housing for
the middle income group, which is
at the request of some
colleagues in Congress. This
increasingly
of my
of taxes and unable to pay
study is designed to show the ef¬
fects of a big government that is
bigger on individual
rights and free enterprise.
The study has a good deal to
say about taxes. The government,
of course, has a right and a need
growing
us.
Where
the
power
out of hand is where
increasing control over the citi¬
zen's dwelling unit, the possibility
sidization of housing for the
of Congress
to tax
sub¬
to tax gets
taxation be¬
oppressive and this, largely
to support unnecessary expansion
of government.
The study notes that for 1956,
comes
way.
sure
burden
the
feeling
its
Obviously, should this
votes of those who
housing.
be
$30.
Though national
done, the
qualify will be extensive.
•
As
this
study further states,
what could represent less freedom,
as
project
the
taxes
increased 23-fold.
privacy
than
the
process
through which an applicant must
go to qualify for residency in pub¬
lic housing: Investigation of his
credit, his job, his living manners.
Following World War II, a spe¬
tax committee of the House
Ways
and
Means Committee
ported its concern over the
re¬
effects
high tax rates on production as
follows (and I quote):
of
"With
the present
scale of tax
rates, we have put the brakes on
men's incentives to a dangerous
degree
by
piling heavier and
heavier burdens on them as they
try to climb up
the ladder
instances
been
when
occu¬
.
.
.
this
was
Business
Senate
I
Appropriations Committee,
a survey of more than
made
we
1,000 different business activities
which the U. S. Government
engaged.
was
I
was
of
than
These
tions.
and
electric
development.
1956, the Budget Bu¬
revealed the astounding in¬
formation
ernment
that
the
owned
Federal
19.711
Gov¬
business-
contracted with private parties
to
operate.
Turning to Federal credit ac¬
tivities, today the Federal Gov¬
ernment
lends
directly $ I
for
is production only for the use by
of
amount
and
to
seems
expand
to
be
lending
government
the
areas
covered
are
carries
out
loan
the
programs
housing, agriculture, loans to
it operated
The total Federal in¬
was
SI 1.6 billion.
This
government itself and not for
sale
to
the
fields, such
capacity
I
public.
as
"
;
safeguards
broader
;:
the
been sub¬
In yet
other
electric power pro¬
the sky.
in
The
I
Electric
to
now
what is
of
implications
h
s
t
m e n
posal.
capitalism
state
of
the revenue bond pro¬
This state capitalism Ob¬
viously
sets
precedent for
a
up
organizations in the Pa¬
Northwest,
the
Missouri
similar
cific
River
who
Basin, the
Southwest, and
eventually.
where
knows
corporations first will
your industry and with the
pattern then well established will
engulf
for
used
be
and
Here
what
others.
example of
insidious-;
another
is
meant
I
steel, coal
oil,
gas,
doubt many
no
the
by
confronts
in high
places cannot see the pitfalls in
the revenue bond .proposal.
of the
danger than
Many
persons
ness
The
even
proposal is
bond
revenue
principle, but if it is
adopted for the TVA there should
at
least be provision
for these
in
unsound
safeguards:
Industry
have waited until
1 i
through
us.
protect
to
American people have
roughly
taking place there today.
The first of these is the estab-
who have fought
us
an area
in
10 million kilowatts.
examine though, the
of
want
to
say
Clearly "defined area limi¬
TVA's service area
(1)
anything about the electric power
tations keeping
because unquestionably
industry is in the front line
of defense against expanding gov¬
where it
industry
your
You will be the first to
ernment.
succumb to government
reverse
can
face
You
a
unless
we
the
present trends.
terrific struggle, for
the
proponents of Federal power
are
many;
they
they
When I
Senate
in
are
dedicated and
rest.
never
was
first elected to the
1937,
2.4%*
of
the
now
Congress
over
is.
Maintenance of
(2)
bonds by
of
issuance
the
control by
executive agencies
and
TVA.
of present
investment,
plus actual interest cost and ade¬
Full
(3)
and
recovery
future
Federal
quate payments
instead
on
in lieu of
present
the
payments.
'
(4) An end to the sole
clause
by
pbblic.
panies owned 89.7%
and
other
public bodies owned 7.9%. In the
Prohibit
seeking
intervening
of
TVA
taxes
token
J.''.
na¬
tion's electric capacity was owned
duction, it competes by sale to the
supplie1
contracts
which
source.
It
tax
rising.
The fields in which the govern¬
ment
facilities which
vestment
'
<
.
control
miles.
Having exhausted its hydro po¬
tential,
TVA
went into steam
power generation
and this now
constitutes over 75% of its total
we
May,
reau
;
But those of
were
flood
square
to
government
operations
to
operations are the paramount ac¬
tivity of TVA ill an area of 80,000
pie
or
private banks.
to
increase
the
benefits.
incidental
be
40,000 square miles, today power
is
dared to point out there is no
power
In
the
It
jected to much abuse because
factories,
cream
for
deliver.
can
nearly
of \vhich only $240
has' been
repaid to the
billion,
and navigation
wrong
such opera¬
included furniture
3,000
making, clothing manufacture, saw
mill operations, dry cleaning, rope
making, synthetic rubber plants,
ice
it
totals
alone
Whereas power
to
promise
to
government
than
investment
government
These state
is
made a survey
member,
a
more
while
and promotions
being made to vacate
their government homes.
by
the
for
The Hoover Commission,
it
largest
Treasury.
coun¬
battle.
morally
our
won
believe
the
become
taxes
million
pledge benefits to the American
people and then set up an un¬
sound system for financing these
in
over-time
every $5 lent
The
pressure
always
primarily
country.
$1.2
support—but we have not
can
wrong
the
of
Chairman
type
work
tion
more
pants of housing projects refused
for fear of
cial
When
Out of
the
in
has
The
from
We have stood firm against
having the government undertake
more than even this wealthy Na¬
for
Government
individuals
to
unpleasant
flood control and navigation
a
single power producing agency in
try.
I
Keeping
less
have
income quad¬
rupled from 1929 to 1955, Federal
direct
encroach¬
government
of
ment than these.
the construction of middle income
the per
about
There are, of course, more
forms
own
i
t
t,
tion of our children.
There is already much pres¬
on Congress for assistance in
his tax records, the size of his
capita tax from all levels famBy and his income,
nf
fjov^mmpnt
of' government was estimated at
was estimated at
jn pU^iic housing projects it is
more
than $600.
About 75% of the rule that a tenant's income
this
represented Federal taxes. may not increase more than 20%
Twenty years ago, the per capita over the income earned at the
Federal
tax
burden
was
only time of his acceptance.
There
.
greater control over the educa¬
of
efits
these
with
familiar
details. What started out
inventory Was
an
and is
happening in the TVA region. I
am
sure -you
are all thoroughly
strictly
289
the facts
has happened
what
about
civilian-type
manufacturing
activities have
been terminated or substantially
of
your
'•
TVA
I don't have to tell you
in
out
doubt that
no
trate.
addition, 958 operations are
various stages of review
In
still
prices 20% below what they
would otherwise have been and
possibility to at¬
a
The
votes.
tract
Soviet
government ownership advocates.
The implications of the various
drives in this connection, however,
spell trouble for our whole free
enterprise, system. Let me illus¬
partment has acted upon.
day. The study also cites a Department of Agriculture estimate
that surpluses in 1955 depressed
that farmers lost about $2
process
:
5.17% and 6.56% a year — even
where the final output decreases.
the
industry is the first target of the
Federal pro¬ has come
as a result.
completed a year ago.
members
the more en¬
The study observes that when a
In many cases, the Administra¬
trenched
it
becomes
and the building materials industries say
commodity is produced lor the tion was able to take action on
that public housing not only is
harder it is to stop.
government rather than for a its own. In the case of liquida¬
costly to the taxpayer who puts
In this connection, many of you
growing market, the producer al- tion of ther RFC, the sale of syn¬
will recall Professor Parkinson's up the subsidy but that the original construction costs are higher most
inevitably finds a ceiling thetic rubber plants, and disposal
spoof on bureaucracy which,
of Inland Waterway Corporation
than they would be if the projects placed on opportunity.
though funny, contains a good
The Legislative Reference Sec¬ properties — legislation
was
re¬
deal of truth.
Professor Parkin¬ were sponsored by private groups. tion of the
Library of Congress quired, and the Congress so acted.
There is evidence to show, ac¬
son, writing some years ago in the
It is not an easy task to get rid
study also explores the adverse
London
"Economist,"
advanced cording to this study, that the effects of other Federal programs, of
government activities, and it is
the contention that in government government's role has not con¬
including Federal aid to educa¬ not an easy task to hold the line
there are two axioms: first, a bu¬ tributed to the long-term stabil¬
tion, the weakening of state rights against further government en¬
reaucrat strives to increase sub¬ ity of the residential construction
through
grants-in-aid,
and the croachment. Neither is it an easy
ordinates, not rivals; and, second, industry and cost reductions are adverse effects of Federal rec¬ task to reverse the trend toward
not apparent.
that bureaucrats strive to make
lamation and the government in socialism.
work for each other.
Professor
But the danger comes from an¬ the electric power business.
Those of us who have warned
Parkinson expressed these axioms other direction. With public hous¬
In the above, I have gone into against moving too fast and too
in a formula to prove that the
jn the welfare field have been
ing as with free public anything, detail to illustrate the insidiousnumber of subordinates multiply there is always a tendency to in¬
ness
of
the domestic
brand of maligned as heartless pinchpenat a steady rate regardless of the crease
the
number
of
persons socialism that is enveloping us— nies.
amount of work turned out.
As eligible to benefit and to expand misuse of the power to tax, trans¬
What we have tried to do is to
part of his jest, he. even calculated the area of authority. This tend¬ ferring the function of capital inject reason and balance in gov¬
the rate of increase at between
ency
is very often accentuated from private hands to the state, ernment programs involving ben¬
them.
gram
is
plus the electrification of
the whole country."
commercial or indus¬
activities the Defense De¬
trial
farm
Federal
1920:
power
total of 548
a
funds.
in
curtailment 63 more;
continuance or
$1 million
the American taxpayer
billion in housing
$1.95
country
con¬
You know what Lenin
sequences.
said in
—
has
or
charges for the surplus are costing
low rent public
During this Seswe passed anbill
costing the
units.
dwelling
national government un¬
to "do things for" the
As the
activity in this industry
lead surely to disastrous
can
type operations;
agriculture with
the
in
ties administering
destinies.
dertakes
In the field of
ex¬
field of public price support and acreage control
housing. As noted in the study, policies, we have gone a long
way toward robbing the farmer of
a vast bureaucracy has grown up
ground the government's .entry initiative and efficiency. And, in
into the housing business over the the process, we have piled up tons
past 20 years. Under the Public and tons of surplus farm products.
Housing Administration, we have The Legislative Reference study
that
warehousing
something like 900 local authori¬ estimates
The extent of
to
government
also
Consider
pansion
is the
power
single, most essential factor in our
nation's productive capacity. Gov¬
..
Government.
But electric
activity.
<
-
ota
directly or benefiting indi¬
rectly from some sort of payments
ing
basic
be it steel, or coal, or
transportation, if government as¬
sumed such a high proportion of
industry,
,
^
,1U11U
ca¬
or nearly 13V2% of total steam
capacity.
-w/m
citizens a^e it gives to creeping
by a govermental agency, Thus ism,
minate them.
Steady progress is
receiving some form of payment Bear in mind that Karl Marx pre¬ we see standards for loans becom¬
from the Federal Government.
1 dicted in 1848 that the destruction ing weakened, political considera¬ being made.
Since Republicans took office
When we include dependents, of Capitalism would be achieved tions begin to play a part, and the "
probably one-half of the popula¬ by the destruction of the middle door js opened for administration in January 1953, the Defense Dcclass with the aid of a highly pro¬
laxities, favoritism and even cor¬ partment alone has discontinued
tion of the United States is receiv¬
cwTv.iti 1
nr
i nd ijsti*ial274 commercial — or industrialgressive tax.
%
ruption.
37,817,000
Today,
steam
ity
businesses the seed of socialwe have taken steps to ter-
run
of
million kilowatts of steam capaccapac
Because we Republicans saw in
thousands of government-
than granted a loan
are
.
advantage these
competitive
unfair
an
agencies receive
lending
private
of this in¬
danger
of nvinto.
credit standards
kilowatts
-
their share had increased to 13.4
n
der competitive conditions. That
system has proven the best y
devised to produce the goods and
services men need, to provide
iobs and to raise the standard of
.
1
.j
j.
the
meet
not
,.
,
,
'
limited.
lV.
.
that men are encouraged to work sibility for the disposition of his
life as a and produce, to turn out better funds, these motives are absent
Federation
of Sovereign States goods at lower prices. Particu¬ or less compelling in the Federal
with a Federal Government exer¬ larly, we must see to it that tax official
'
cising rigidly limited powers. No rates are not so high that a man
Firms or individuals who can-
longer are these powers
million
pacity, or 6% % of the total steam
capacity in the country. By 1957,
Republicans believe that p
industry and
"l1** V
should be allowed to function ui -
nation began its
Our
-
to 75.5%, while other
public bodies .owned 9.2%; 'In
bodies owned 92%rt
1937, the government owned 1.7
hard word
lets have the courage
„
Federal,, while your share had
dropped
^
to
nnd/in addition, robs them
in the Federarpower. field. Last
year, 1$.3f t e power capacity
was
-
seems
money
to
me
that
by the
the
use
Federal
ernment for activities which
pete
directly
payers
with
its
of
Gov¬
com¬
own
i^ indefensible. Such
the
government.
years
Your
com¬
there has been
tax-
expansion in the electric
industry but a disproportionate
op-
share of that expansion has been
great
But,
TVA
power
customers
from any
regardless
of
from
other
safeg'uaicts.
the revenue bond arrangement ^
still bad government. It opens tn
Numbei
187
Volume
5752
.
.The Commercial and
Financial Chronicle
.
(2757)
for
way
series of free-wheeling representing authentic
a
t corporations, out
go ver n m e n
under the
from
Congress free
watchful eyes
to raise
their
free enter¬
prise.
of
This attack
own
the profit motive
on
and rvery
drunk with their
,
lives,
own
power.
Y our system, our
history always at
This formula also puts the seal: work
pushing this
of
approval
the
a
with
itself
the people.
from
•■';i
be
com¬
for
money
•)
country to an
higher state of development.
motivating force is so much
ever
that
way
government -will
peting
in
government
on
in such
business but
This
part of
a
that
lives and traditions
our
inevitably
must question
those who would
one
the
purpose of
do away with it.
A
few
'ueA
years
Electrification
Rural
The
Act
Baruch
wrote
passed no doubt with the best
was
trating
little
in
intentions
the
world
and
ob¬
viously without any awareness in
1936 of the complications it would
present in 1958.
electric
The
cooperatives
to take advantage of the
benefits available under the Rural
formed
Electrification
intentions
the
Act,
also
formed
were
cases
in
the
to
rural life.
I
:
'
other
of
;
of
They
help
neighbors
co-ops.
good
as
should in times
get
you
you
emergency.
gram.
*.
.
When
was
established, it
with the intention of bring¬
was
ing power to uneconomic custom¬
largely in the rural
ers
of
areas
customer
low
density where pri¬
enterprise could not eco¬
vate
nomically
function
RE A
know the
tion
and
am
sure
is
and
now
and
of
central sta¬
Rural
more
Electrifi¬
concerned,
rightly so, with improving its
service.
than
more
50%
customers such
from
non-farm
industry,
as
com¬
merce, and non-farm residential.
Bear in mind that this electricity
is
being supplied with the aid of
Federal loans at 2%. interest.
electric
The
therefore, is in a
favorite position to undersell your
co-op,
companies in going after this
As you are aware, the Adminis¬
tration this year proposed that the
time has
of
seek
the
REA
co-ops
non-Federal
financing.
of
when
come
You
frenzy of
sources
also
are
aware
opposition
that
has been whipped
up to this pro¬
posal by the
We
can
leadership.
co-op
the
see
frenzy when
reason
look
we
fig¬
ures.
Appropriations for REA electri¬
fication loans totaled $13.9 million
in 1936. By
1957, total appropria¬
tions had reached $3.7 billion.
This year, Congress more than
doubled
quest
the
for
1959,
Administration's
loan
setting
for
funds
the
figure
re¬
fiscal
$317
at
million.
Last year, Congress voted
million in loan funds.
The
$379
REA
Administrator, David Hamil,
has
estimated
trification
within
that
generation the
rate
loan
of
REA
a
you
can
what
the
be
year.
Naturally, $1 billion
2% loan money is
a
elec¬
will
needs
running at $1 billion
year
a
of
nice thing, if
a
keep it, and this is just
co-op leadership plans
to do.
Combined
on
with
prolonging
cost
Federal
insistence
this
the
use
money
of
to
buy below cost power from
subsidized Federal power projects,
there is the concerted mad effort
the part of
leaders
tax-free
to
a
few electric co-op
establish
REA
co-op
Federal
the
as
the
true
symbol of free enterprise.
Your companies have repeatedly
attacked
as
''profit
com¬
been
panies," and
same
as
time, the
monopolies. At the
is held up as
co-op
cation
of
the
better
As
to
national life.
our
(and I quote):
if men's labors show a
profit—that is, they yield more
than is put in—can
society and
each individual member have
the
share.
material
at
Put
believe
leaves
down
me
that
than
a
an
would
One
to ask what
on
of
the
profit
alternative, he said,
be to
sense
civic
unprofitable one."
have
the love of their
a
to
more
alternatives to
system.
old-
as
will, but I still
profitable enter¬
Mr. Baruch went
the
to
less
you
contributes
virtue
To
progress.
loss
a
fashioned, if
people."
,'this
work
men
labors
service
to
for
out
or
others.
of
But
of
has
experience,
as
f,
been
ever
able
to
hold
gether long behind this
The
other
of
incentive of profit, he
continued,
"is to force men to work
by order
of some higher authority. Wher¬
ever
it has been
applied, it has
meant
loss of
a
it
some
has
freedom. At
reduced
to
men
slavery."
"The profit motive—may I em¬
phasize—offers a form of incen¬
tive
that
cion.
In
does
That the
a
of
heaven-sent
out
accidental
along with
of personal freedom
before."
seen
The
no
flourished
degree
never
it
was
was
path
which
down
the
the
I
put
today1
led
co¬
blame for
the
is
a
them
Or do
.
we
in
direction.
do
to
I
so.
shudder
think
to
the bill that would have been
by
and
now
to
which
of
run
future
generations of American taxpayers
have
had
we
been
committed
undertaken
proposed
atomic power plants
of
program
if
the
which could have produced power
only
from three
at
six
to
times
the cost of conventional power.
I don't have to reiterate to you
people the
devious
the
and various and
many
who
are
America's
of
the record of American indus¬
on
try and choose
bumbling hand
in its place the
of the Federal
Government.
prise.
that
immedi¬
backs
this situation if they
clearly where it
is
on
could
who
see
When
this
take
we
a
close
leadership,
situation.
We
co-op
strange
at
look
we
see
see
a
this
with those elements
of labor which
all
would
nationalize
it working
side-by-side with those elements
which would nationalize your in¬
industry.
We
see
is
not
what
cans
ence
this brings us
minds
Here
We
v
and
all
we
Each
we
None
can
of
about
rest till all
confronting
the
entire
our
But
answer
live
we
or
lose it.through
J
I .have
as
Atomic
Shearson, Hammill Adds
>
■
v (Special to The Financial Chronicle)
HARTFORD, Conn.
.
Sidney-
—
lies
in
in
our
an
,
the
Shearson,
Lewis
peo¬
increas-
Hammill
Street.
He
&
was
Co.,
37
formerly
with Income Funds, Inc.' > !>
.
-
'
J'
FR
discussed—TVA, REA,
also
Energy—we
steady process of attrition
see
a
PA STURE
on your
industry by other legislation.
Sometimes it is seemingly in¬
nocuous, such as Senate Resolu¬
tion 148.
This resolution changes
the
procedure
for
evaluating
water projects to make it easierto
T O
justify Federal construction of
non-economic
projects.
Sometimes the attrition process
is
in
buried
bill,
a
such
ATCIV:"'-
the
as
DIVERSIFIED
Omnibus Rivers and Harbors Bill
which
the
Sometimes
takes
President
attrition
the
form
the
vetoed.
of
ECONOMY
IN
only
staged Con¬
a
CENTRAL-EASi_
gressional hearing.
The fact is,
however, that there
is a never-ending drive to circum¬
scribe the electric power industry,
A
to weaken
The total
one
of
regulation
of
new
diversified
and the rich farm
has
predominantly
Ntt*
ken
Iq&H af
hold'
nst Texas
id
developed into
on
.
.
«
agriculture
now
picture this presents is
political
an
AGRICULTURE
Producing quality beef and dairy cat-;$3
regulation.
tie, fruit, vegetables, poultry products.
|||
United States and Soviet Power
During the past five months the
power
supporters have
a
new
4
LUMBER
Fine
Federal
advanced
furniture,
mills, boxes, basket
saw
mills, flooring mills, pressed wood.
argument to jus¬
tify the construction of more and
Federal
more
power
MANUFACTURING
projects.
From cotton: textile
argument is
that the Soviet Union is adding
kilowatts at a greater rate, than
briefly,
the
OIL
this
Now,
may well be
Soviet Union but,
the
about
indicated
at the
beginning of
A
true
as
goods, upholstered
furniture, garments. Toy factories.
the United States.
AND
GAS
big part of
new economy
...
explo¬
ration, drilling, processing, production.
1
my
MEDICAL
talk, the logic of trying to equate
our growth in this field with So¬
CENTERS
Modem, complete medical, health and
viet Union growth escapes me. In
We see it loudly pro¬ all the arguments citing the So¬
claiming non-partisanship yet be¬ viet progress, one fact is always
ing
blatantly
partisan.
These omitted, namely, to what extent
things are not characteristic of is the Soviet citizen benefiting
resort centers grace
Central-EastTexas.
dustry.
our
farming
or
from the
rural people.
Atomic
nowhere
Perhaps
than in the
have
our
revealed
has
time
Energy
case
now
more
clearly
have
taken
on
You
we
will
j
elapsed
since
we
which
mostly in
the events
place
—-
recall
that
no
sooner
DISTRIBUTION
to
maintain
meet
these
our
ample
re¬
Copies
of
the
annuel
and
quarterly reports giving further
—Planned facilities offer better distribution, better warehousing. Good roads.
information
operation
served
are
on
and
the
the
available
_
Company's
territory
on
request.
I
serves.
Furthermore,
is
we
are
we
know why it
expanding
our
power
It is to give our citizens
of the good things of life —
electrical appliances to cut
SOUTHWESTERN ELECTRIC SERVICE COMPANY
capacity.
more
more
made the decision to con¬
-
I
continue
and
r
needs
of
Enough
WAREHOUSING
Our
expansion is such that it
will
motives.
Packing and canning, poultry, milk,
and vegetable processing centers.
meat
•
shortage in
In fact, we
ample power reserves.
rate
Washington.
had
have
power
States.
advocates
state
began talking peaceful application
of
atomic
power
to gain some
perspective
United
no
of atomic energy
welfare
their
the
PROCESSING
additional power?
have
We
domestic
labor, more electrically
operated tools of production, more
John
EXECUTIVE
•
Jacobs has'become connected with
minds and the hearts of
ple.
ours
slavery.
economic system?
Partly
'
be
can
whole
problem, the problem confronting
you and your industry, and the
problem
V
But, it is today ;wheri
determine whether we gain it
we.
■
this
issue;
tomorrow.
through freedom
meet
anothe*
freedoms
T
Conclusion
we
to do.
this
our
A wonderful world
privileged class grows, the more
difficult it is for you to fight back.
do
job
a
teach
us
know
made secure.
are
who benefit from the prefer¬
clause. And, the larger this
have
/
.
one
what
for those privileged Ameri¬
How
back again to
hearts
must, in effect, "Each one-,
teach one."
are
thinking. They want more Federal
power projects to
provide more
power
do
are
the issues at stake.
enter¬
many
will
numbers
our
of people.
They must be informed and know
But you know and I know
this
But
few, they must be increased.
And
more
free
problems
your
part.
our
:>
electric co-op leadership working
hand in glove
derstand
tried and
our
of
If
Attrition Against
Electric Industry
'
Very
leading.
through
channels
proven
matters.
understood, people
Legislative
not
are
individualists
their
turn
ately
members
co-op
confirmed
would
farmers
install it
can
these
a
people
go down.
Those of us in
Congress who know you and un¬
vV.yy Vv ■v;
need
are
that
see
don't
for military objectives, we
power
justifications advanced by
power advocates for.
come into our society when such
people choose to turn their backs
issues
have
we
responsibility. Being in the front
line, you have to make sure you
disturbed, not
we
to
too
proves
Even so,
understand
the
;
decide
we
A
'
-
will make the right decisions.
Your industry has a tremendous
too
Federal
Federal development of the atom.
One cannot help asking what has
ture of
majority
the
a
per¬
installation.
industry outside the legal struc¬
it
difficult to believe that the great
find
achieve
because of the power capacity, but
because of the objective for its
If
involved
responsibility
do
living and
But
issues
burdensome.
we
peasants?
want them to
standard of
opportunity to branch be disturbed.
new
a
tric
I
remain
Do
our
Congress has managed to blunt
this state
leadership.
disturbed.
to
the
are
see any
Federal
affairs squarely on the shoul¬
ders of part of the present elec¬
co-op
be
want
it, to make it more dif¬
ficult for you people to remain in
classic example
of a privileged
Your
opponents a r e,
class whose privilege is dependent business.
on government
bounty, becoming even, as you know too well, now
entrenched and seeking to extend trying to force you to keep quiet
and expand their privilege at the and not talk up in defense of your
industry.
expense of the rest of the nation.
being
are
ops
Russians
to
this attack for the time being and
it is well that we have been able
vital
a
freedom.
authority
nor
there
a
it is
coer¬
profit system emerged as
revolt against excessive
accident,
it
on
personal
governmental
that
rest
this respect
mechanism
part of
not
the
reason
In addition to such broad fields
the
what
If they are, I can't
'
.
ingly complex
world
and, toe
often, the effort required to learn
of
hydro¬ haps in the process of doing so
hydro¬ become less of a menace to us. If,
least, that on the other hand, this rapidly
which is economically justifiable
increasing Russian power capacity
—is almost exhausted. The atom, is geared to the
production of war
therefore, represented to them a weapons, then we have cause to
to¬
to
this
how they justified the better
was
development
ideal."
alternative
Is
short, to
living.
standard
doing?
to
,
.
the
services—in
our
source
a
"belonging
electric projects. But
electric potential—at
community
no
automatic
improve
power
(and I quote again), "thus far in
human
*;
de¬
when
Federal
the atom
on
energy
would
"Only
produce
of
up
profit, said Mr. Baruch,
for
pounced
Part
for
the
on
atom
advocates
below
expansion and the exclusive right
on
of business in
finance
to
Time."
plea
of
for this
the
at
is
"A
understanding
by
the
student
body of his Alma, Mater, City
College of New York, of the role
non-
farm business.
should
book
times
Having reached this stage, the
REA co-ops are now turning to
new fields which have
nothing to
do with original concept of REA.
Already the income of co-ops is
called,
Our
all
you
Over 95%
have
now
service
cation
I
statistics.
farms
-This
has' fulfilled
fulfilled well.
our
service.
render
book
a
the
are
RE A
a
of
prise
Today, however, a disturbing
change is taking place in this pro¬
ago,
Bernard
brief and pene¬
Philosophy for
means
of
many
neighbors, and
your
each
and, in
real contri¬
a
along well with the
are
best
advancement
that
know
most
the
world
past, have made
bution
in
with
the
efforts
our
is
disturbing for the profit motive
likely to become has, been the force in
our
money,
centrate
velopment of the peaceful appli¬
45
OFFICES
T
Shewmoke,
MERCANTILE
President
BANK BIP.G'., DAI LAS, TEXAS
—
J
■
46
ContinuecL
from first
An
is
further
possible
even
decline
in
the
a
tion
of
that
value
way
,
is
eral programs or grants-in-aid to*
,
of a threat to
more
our
the
of life than even the Russian
States:
The
result
net
well ask whether gov- abilities
satisfactorily con- • long line
You may
ernment cannot
seems
likely to be even higher Federal trol this process through: Yhe
As you know, the latest' manipulations of: monetary and
,
the
dollar
Both groups, by intersuggest that we may expect
Certainly, many of the panicky inflation, but one advocates it.
measures, advocated
early
in Therefore, I prefer to be on the
1958, some of which have been safe side by anticipating that inadopted in less violent form, could flation seems likely to be a conhardly avoid producing inflation- tinuing process even though at
ary pressures at a later date.
varying rates, rather than to find
because
might
of
be
that
Tmn„,i
accentuated
menace..
T,
.
We know,
of course, that
it has? been cut roughly
since 1939.
in
half
full for
to, think of
the last decade..
Wifchrtho steady rise in the con-
:,
proposes
over
price/ index,, the «1947-49
the
past
spring* was
worth about 81 cents. I might add
sitmer.'
in
dollar
for
1959
fiscal
the nossibilitv of
suggest
deficit of
a
fiscal
some
$fbXn^thout ^all^SSbe.^ « not Impossibility,.of coping
for tax reduction
added emer-
or
•
,
debt;,
unless
The amoimfo of; increase
state
and
1946; to
coun-
as
local
1956
spending
s
almost
was
in
the; increase
;
Expenditures
dollar has about 84* cents in
pur-
by
a
desperate bid to divert en-
chasing
with
ergy
and attention to an external
figure
foe. In order to be sure that the
but- 65^ first of these eventualities does
be
metals
of
and
not
arise,
the
magnitude of
a
defense efforts may well increase
rough calcula— in cost, still; further as the com-
tion would suggest that this figure is, about: in line for many of
th^ large and costly items which
you, must purchase for your plant
expansion programs.
,
History shows that
v
has
War
major
every
been- followed
pressures on
ties for
plexity and sophistication of our
new
systems require larger mount in the years ahead.
and larger expenditures for hard-;
witb all levels of government
-
and for research and devel-
opment.
That there
lessening of tensions
be
may
and
there is
competition 1 for
increasing their spending
a
bound
cor-
a
to
s0urces
be
0f
One
revenue.
responding reduction in expenditures solely for defense, is the
fervent hope of all, but the most
use(j
realistic assumption is that such
a time is not near at hand nor
inflationary imnlications
stantially
riod
would
ajso be
replenishing of the
goods that people and business
need and want. This has usually
been followed by a period of sub*
by sevof vigorous and some-
eralv years
times
toe
frantic
Thus,
I
activity while
breath.
1947,
except for
reduced
economy
since
again in
1953-54, we enjoyed on
almost every front a boom which
took
to
us
economic heights
new
in the third quarter of
1957. All
elements of the economy, particu-
during the
considering.
we
are
addition
In
running at times beyond
gains in productivity, thoroughly
enjoyed the experience.
subversive
Since
last
summer
have
we
in a period of recession,
Despite a steady and marked decrease in production, employment,
peen
and—to;
lesser
extent—income,
prices and wage rates have continued^to show advancing tendencies.
a
Thus
many
perceptive
,.wlsely
tbafc tte inflationary
threat
was
Anti-recession
cnuy? dormant.
tions and
suggestions,
and
out,
would seem to
that;
a
in
ac-
Congress
indicate
substantial number of per-
Son&r—-perhaps
unwilling
a
majority—are
natural laws
allow
to
is
there
an(j
as
rapid
o
accompanied
been
in
by cornproductivity,
mensurate
capabilities in
pro-
particularly in recent years, unit
we
cannot; labor
gains
costs
tended
have
that
a
we
totalitarian
is
Union
in
to
strive to
With
to
rise
hold
it to
even
points and produced
a
trou-
withhold
supplies
of'
A recent study by Edward H.
Chamberlin entitled, "The Ecocut
prices
indiscriminately,
to • nomic Analysis of Labor Union
make loans at low rates, or to in-» Power," published by American
dulge in other forms of economic Enterprise Association, advances
warfare of their choosing... Such "abundant evidence
that unions
tactics could easily be costly to today do have too much economic
the* United States in military or ; power."
Where this is true, the
-
economic aid, development funds,, author
concludes that the public;
jn other ways likely to add-interest
further
a
ddft
a
to
the
costs
that
requires
steps
be?
of-:gov-* taken to reduce it.
and the consequent
flationary pressures.
I would agree
in-* with him "that unions, like busi-;
ness
Added to this new and weighty
influence of the costly "cold war,'"
corporations,
are
'here
to
stay.' But also, like business cor-*
porations, they can be subjected
con
economy
:
' i
In 1965
r.;,
'; billion in the early 196Q's, provid- i
jng the basis for the new products
.
Billion
\"i". :
trend takes the
If the
»-V
v- H
of $550
healthy, grow-
*
and processes of a
•
jHg economy and a^ commensurate
dmettion-demand for fixed capital to bring
suggest, what might this'these programs to realization. Yes,
to the economic growth- of the
users of capital funds* are
which I
mean
the
nation, upon which'continued growth of:
Tn ;turn, likely to prove numerous
and de-
your"in-'' 'manding,jwith a reasonable chance
dustry is to a considerable extent4 that
requirements will exceed
dependent? Even recognizing the * supply. •
hazards of long-range projections, ~ More specifically, what'is the
they must, of necessity, be^a key • probable magnitude of the utility
element
in investment
planning industry's problem?' Perhaps a
of business as well as policy de- • fair estimate of the total new con¬
cisions by government in many struction needs of the investorareas.
Perhaps at present, when - owned utilities for the eight-year
the
economy
is in a recessive period 1958 to 1965 inclusive, and
phase, this may seem to you to assuming installed generating ea~
add to the hazards of projecting pacity at the terminal year of 160
its growth. I would suggest, how- " million- kilowatts, would be $40
ever, that over the period to 1965, billion.
This would work out to
benefiting from a rising trend: of" an average annual value for plant
productivity similar to that irt our expansion more than double that
past history —
per annum 0f the period 1948-1957. It would
compounded—we might expect to likewise be about $5 billion more
build up to a potential gross na- than the total estimated electric
tional product of close to $550 utility plant account at the end of
the
in'1957
billion
The key to
such
dollars.
1957.
achievement of
goal would be based: first,.
a
our
„T.„
XT
,
Di.,'
„
Utilities Will Need
ability to work our way
through the present readjustment
upon our
a
goods, to engage in s dumping, to
stin
::
If we may assume that the industry will. generate internally
monolithic, blesome
"stickiness"
in prices, period without dropping into a about the same- percentage or its
regime,
the
Soviet'while also seriously eroding profit depression; and, second, upori the total casli requirements for cona
position in world1 margins.
avoidance of inflation.'lam more struction
as
it has in the past
must
minimum.
;
Sees Real GNP
Our recession
towSd
we find an expanded role of gov- to social control."
seemT miite
ernment in numerous other direc-<
This necessity will continue to
economy seems <*mte P°s" tions. Under the Employment Act be a pressing problem until we
advocated
trolled
n
not
and
eminent
,
through threats to halt production
in key industries. Since this has
disproportionately. Here we find
has, been used against us
with- the basis for a new rigidity in
great propaganda advantage, so costs which has boosted break-
or
rfin
<
new
afford to disregard.
say
11
of the monopoly power of the
labor unions. Its results are perhaps
best
exemplified by thesteady increase in wage rates over
a
period
of
several
decades
from-her
threat
growing
to^work. Most people fear any
deflation.
Although they may
they want lower prices, they
appearto- prefer, mild inflation
business is the unfortunate effects
own,
economic
added
an
as our
duction and trade that
oh- markets
concluded
a third point which I am sure is
highly disturbing to all of us in
in
rate is twice
.
re-
defense
there
world,
*
•
Labor Monopoly Power
this uncertain
is another aspect
0f the situation likely to prove
costly in one way or another,
"Whether or
not you
choose to
accept the rather generally expressed idea that Russia's growth
qUirements
larly organized labor which was
frble to; get steady increases in
wages
the
to
justified in assuming that
borrowing would be 'extensively
an(j ^his would clearly have
pe-
likely to develop
^ets
short interruptions in 1948-49 and
pace
certainly
will', almost
revenues
The
the States and localitaxes and additional
weapons
ware
—'
of
future demands for services.
our
metal products, where prices have
risen most., And
consiueratiwiis »r. r
political'
State and; local; were allowed to pfevailr While vcrSitys and foundation expendigovernments' are likely to riser it • might seem a worthwhile-ae- tunes on' Research of $3 billiohiast
more
rapidly than the total na- complisnment to hold .'our ihila-;yar.- l*n<h-r favorable conditions,
tional output, using even the most tion to a "creep," this doulil^um^total^esearch^and^ development
conservative
assumptions about out to be a seductive and deluding "Spending might welPchmb to $15
power
highly deceptive,
would
field
the
in
its
by
great*
Federal ; ex-.
only hope to maintain
compared
well
as
penditures from their post-World •.
War II low to> the current, level.: pureiyi*
this
quickly reversed. We have already
in
from
try deteriorate to the point where
the present' .ruling clique could
,
cents
point to a very
ot applicants m the capi'tal markets m the years ahead,
-The
?,°f y°ul .mdusti y. nre
so _great that you . cannot afford
to be very far behind top rank, m
the preference^of investors, however well you have fared thus far.
Changes in investment preferences do take place and aie not
slacken--typeyof, business-
spent for electricity.; Based upon
thevalL-inclusive- wholesale price
index," the overall businessman's
as
seem to
One of the pri- trend at State and local levels of
ently we must risk some
as
as
points, would certainly he government where a similar phi-r
iiig of business and unemployment;
.
.
''
:
that, unlike previous periods fol-losophy^- of "doing ; good" has to accomplish necessai-y readjust-;;fOne proieetion of capi alspendlowing a major war, wer have f^ned out widely and expensive-" ments via this route. Politics-Be^;-mg
dog.!965. prepared by ,Mcbeen—and for a long time ahead iy. According to a recent study
ing what if. is, this is highly un- .Oraw-Hill, sBows a level well m
wilL be—engaged in a defense ef- by the Tax Foundation, there has t
popular, for an eccmomyl always
billion measured in
fort,
whose
impact
upon
our been more than a three-fold in- operating- in an expanding booml957;lollars. The moren.steel' alnlarger^economy
hfv ntihzintfi
economy is fully as significant as
crease since World War II in both
in previous full-fledged wars.
state' and local government ex< There are many who feel that
penditures, and in State and local:
average has resulted in about fiveguarantee quick success, or
cents more power in the dollar internal conditions in that
power
aile-
quately with "wage-push", inflagency
expenditures during the ' tion
through
monetary .policy
year ahead.
Thus, Federal taxes; alone. The Federal Reserve has
wm
m0st
likely' continue ex— dealt courageously and forthright-
that* your? own;; industry's- record > Russia- is unlikely to; strike unless
in holding, price gains below the■, she has clear-cut superiority to
1947. But that is
of the
the difficulty,
Experience
policy.
past year suggests
mary
>
our
estimates
further inflation.
Inasmuch as the early
pait of:the period included^ World
War II, it is probably more use-
change
Thursday, June 19, 1958
tremely burdensome, and tax re- ly with the problem and gained had occasion to note that all ;evels
TWpnrt* Ttifiafinn Pnnniu«inTi
vision or reform—• which might much useful experience in the ,?f. gavernmwit are likely to he
Defends Inflation-Conclusion
brf
abQut mQre equltable dis_ £ power of its various tools for in- substantial
borrowers over the
Perhaps
we
can
bring
into tribution—may be postponed.
fluencing the supply and cost;of. penod-about which-we-are consomewhat sharper focus the reaQf equal or even greater imp or- < credit.
It
deserves
our./.under- cerned. Other places in the line
sons
behind the probability of tance to you, 1 am sure, is; the
standing and approval. But appar-. wi." certainly be taken by many
It max be pertinent to review
briefly what has actually happened to-the buying power of our
dollar.
.
.suddenly that it must be faced.
TnfiQ<5ft„
f
spending.
ence,
softness,
very
.
perhaps. say .that the private utility/'industry has' amply demonwe may continue to have periods
jstrated its? ability to finance an
than stable prices,
y In the areas of broader respon- ? of recession of varying1- intensity, ya^tpuhdinincrease;capacity
sibility to people, such as housing, the only safe basis for planning * both^^durihg dftd^ after World War
social
security,
education,
and for long-term capital needs is to II5 and therefore no new, problem
others, the trend seems to be to¬ recognize the likelihood of further is being .faced. - We can certainly
ward more and more direct Fed- decline in the value of the dollar, hope that this is true but the prob-
Inflationary Era
...
It
.
improvements in productivity, this-, major road blocks,-. Thus, I come
would
entouragerising rather * to the conclusion that even though
page
Capital Requirements in
like.
Financial Chronicle
The Commercial and
(2758)
™
our ability to acdecade, then the (investcr-owped
complish the former than the lat- companies \vould have to go to
ter, as I have already made clear, the financial markets for, roughly
The pathway to such a medium - $25 biJ lion.
In any one year the
term goal could, of course, be con-1 range
would; probably, be fr°m
siderably roughened" by ;'th© pres-; $2^ to $414 ' billion,., Further, it
ence
of intermittent inflatiohafy the ratio
of long-term debt to
pressures. At times progress mighlytotal ;: capital
raised during , the
be speeded up. as it seemed that 1946-1956 period, were to prevail
prices were. likely to'-rise and, - in the years ahead, to .1965, j.tpe
therefore, anticipation' of expendi- long-term debt.requirements alone
tures would be advantageous^' ; At; might equal more than $16 billionother times, when it might appear ; This would be close to the total
that stame slackening-in pricesvWas capital raised from all-sources in
in the offing, there might1' be a the past 12 years*
"J J
.;
tendency to slow down expansion, -r. while such needs on the part of
This environment, even though it the
electric ; utilities; will' rank
sanguine about
^
,
should demonstrate that the broad
list of expanding
they have irtdeed; been during much of the
mythical man m the street should
post-WOrld War II period, subbet confused., In the same day's
stantial financial requirements in
presa one has been able to read
most of our basic industries must
that
several
eminent
and
reextent that government interprets the
reasons
that might be- ad- Capital Needs May Exceed Supply- -aiS0'be reckoned with. These will
spected economists feel the threat this commitment as a mandate to vanced for the
If we may now carry' over this need to be added to the growing
inflationary poteninr?u10n ls.mu^1 toss to be provide "over-full" employment,, tial in the years ahead, certainly; general line of thinking into the* requirements of government. And
feared
sitae
1..
A«a it
A
.
,
is
,
,,
small wonder that the
long-range trend was inflationary,
can arrive at some equitable soluhas
assumed, enlarged responsi- tion,. and I suspect will provide would increase the, problems an.de
bilities for the promotion of "max- some
pressure
toward inflation* complexities of business operation
imum employment, production,, over the period under considera- to a considerable degree.
;
and purchasing power."
."' '.
To the tion. While this: does not exhaust;
of 1946, the-Federal Government;
them
high on the
industries,
where
'
.
-
r
*
than,
ness
or
beyond
ists
a
a
slow-down
rise
in
minimum
tell
us
^esPectod
that
in
busi— it
unemployment
levels, while
ec<mo-
creeping infla*
may
be
pressures
unable
to
resist
the
to take steps which will
have the effect of validating ex-
cessive
these
wage; demands.
frequently to
tend
the heavy defense
spending, rising
of
the
expanded
role
of
capital
requirements,
it'
we
must hot
overlook individual
seem
to me-possible that demands for mortgage money ,apd
of govern— these might-be both enlarged and* lor:- variousr,;:forms
of,-personal
Where ments, and the monopoly
outrun
area
non-defense expenditures in view; would
of
labor
unions,
provide
power
made
more
three- inflation.
costly
At' this
by
noint
continued •
vou
credit; which are almost; certain
1960 s, it
will' to be heaW in the early
Number 5752
137
Volume
.
.
.
The Commercial and Financial Chronicle
J
'S.-j,
_
'
i
*5—.
v
47
achieve our projected growth
we
population, labor force, and
output. To meet such capital re¬
quirements, huge savings will be
required, and savings under infla¬
tionary conditions are quite likely
in
and trouble¬
some gap between supply and de¬
mand, as - was the case during
much of the 1955-57 boom period.
CleaVly, difficult financing prob¬
lems
for
those
seeking capital
seem certain in the years ahead,
we
once
growth.
resume
-
vft
-
economic
our
-V'"
..
needs
cast,
area
to fore¬
all aware. One"
specific. But we
are,
you
as
cannot be
very
note that interest rates and
yields have shown an ir¬
regular advance over the years
may
bonds
World War II.
since
several
been
There have
which; have
surges
successively
shown
of
business
a
won't stop
To Take Census of
growing.
Investment
In your
Shareowners
Spending
Keith Funston, President of the
York Stock Exchange, has
industry, with its record
planning for growth,
it is perhaps presumptuous of me
to suggest that improved methods
could
be
developed.
I
raise a
question,
however,
whether
it
might be possible to work toward
little
than
more
New
tensive research
to
be
and,
when
a
the
reverse
would
course
if
management
the
—a
;
1959 Cen¬
sus
^
by
Exchange
of
Share-
owners.
Results, he
said, will be
available
next
desirable
an¬
prior to the early 1930's. Perhaps
infla¬
tionary pressures and the poten¬
Spring.
"After thou¬
only
sands
persuaded
were
late
of
man
machine
and
ly a thing of the past, and recent
experience would seem to validate
hours
have
been
spent
this
analyzing
assumption.
And,
too,
this
represent merely a devia¬
from
the
long-term trend
tion
skill
and
of
—
the
and
a
industry—even
banking—adequate capital
your
sential. to
.our
freedom
cards,
have
in
is
es¬
flex¬
a
count
new
—
IBM
will
we
and
new
a
of the American stock¬
—
geographic
spread
of
the
stockholding population.
And
shall
facts
the
also
establish
such
we
as
occupation, income level
age,
and
education of the people who
American business.
strong demand which we ibility. Too little capital to meet own
the needs and wishes of the public,
pave suggested combine to make
both customers and investors, will
Mr. Funston disclosed the Ex¬
this a reasonable "guesstimate."
particularly if we can assume that invitelunthinking criticism. And a change's plans in a commencement
talk at St. Lawrence
willing, but' * not neces¬
University.
the Federal Reserve will retain
latitude
in
its
use
of
credit policy.
If, at this point, we may assume
that management is willing to ac¬
:
cept' as a working hypothesis the
'prospect; of further". inflation, a
broad, sustained demand for capi¬
tal, and possibly a rising trend in
what course of
action does this suggest?
My an¬
the cost of money,
is the
raising of capital early
enough to at least temper some of
the stresses which may be ex¬
swer
pected
I
to
.
themselves
make
well
am
the
of
aware
felt.
thesis
of i n flat i o n,
whether.'mild or active, it is de¬
sirable to have debt, in the expec¬
that;; in
tation
periods
of
paying
off
in
later
cheaper dollars. I am equally, well
aware
of the beneficial effect upon
share earnings if-debt rather
than equity is increased. But make
no mistake-—lenders are
and will
per
equally well aware of' these
facts, t Tiiey
will be less than
be
anxious to freeze
their dollars in
situation should there be any
doubts about that industry main¬
any
strength while meeting
steadily
increasing
needs.
This
'seems particularly important in
your industry where you must be
amply prepared to serve the pub¬
taining
lic
demand.
It
pertinent at this
recognize the splendid
record of the private utility firms.
Despite the raising oi' $15 billion
from 1946 to 1956, the ratio of
is certainly
.point
to
debt
the
in
capital structure was
actually reduced by one percent¬
age
point to V 501/2%. Preferred
stock was relatively less widely
used at the end of the period,
while common stock and surplus
combined accounted for
over
37%
of
capital structure in 1956 com¬
pared with 3IV2 % in 1946.
It
would seem
desirable that
such
steady strengthening of the
capital base should be fostered at
opportunity in order to pro¬
vide the soundest possible founda¬
every
tion
for
the
most
desirable
debt
Structure,, If, on the other hand, a
policy
.to
of
minimum
equity
were
followed, it is not difficult
to imagine a condition evolving,
where some utilities not widely
be
considered by the investing public
be in the. inflation-hedge cate¬
to
gory, might be able to put their
capital structure in position to
satisfy
,at
an
sarily able bureaucracy can be
expected to step in and take over
any such
eventuality. If the
question of private versus public
power is to be
clearly resolved
.in your favor, as we hope it will
be, thbji the independence which
"steins
froma strong, - adequate
capital structure must be high on
in
cost.
can
all thev financial
of
acumen
task
shocked
us
had better regard intellectual tal¬
ent as a prime national resource."
be
pro¬
foundly influenced by a sweeping
change that American capitalism
is
now
undergoing.
"A great economic
revolution,"
he
declared, "is quietly taking
He pointed
out that in the past
the growth of
intertwined
so
that
"only people
thinking—
and
capable,
I
might add,
of
understanding history, philosophy
capable
and
of disciplined
literature
welh—are
as
minds,
Fourth:
lively curiosity and a
intellect, he noted that in
the years it took the
graduating
class to move through high school
and
college, multi-billion dollar
Do
you have firm be¬
ability to articulate
them?
The
Exchange President
declared:
"Courage will be ex¬
a
liefs and
creative
the
of you —along with the
willingness to cling to basic con-?
yictions and
the
capacity to
"Electronics, synthetics, rocket
fuels and Space missiles," he said, express new ones.
"Your
"are a few of your contemporaries.
success," he concluded,
Others are on the way.
And to "will be linked to your capacity to
handle this advanced technology, think creatively
to work effec¬
pected
industries have grown up.
.
.
it's abundantly clear that we must
rely largely on college
people. ■ ■;:■'■:,T'Aft-ft;ftvft;ft
press
.
tively with others
-
trained
ft'
.
and to ex¬
with courage
.
.
beliefs
your
and conviction."
ft
"Do not think,
incidentally, that
I mean just technically - trained
people. Our long-range need is
for the full man—adaptable
imaginative
trained to think."
Mr.
mer
.
.
Merrill Lynch
.
BOSTON,
.
Funston—himself
the
Mass;
—
I^opold
Korins has been added to the staff
for¬
of
President of Trunity College—
&
offered the graduating class four
yardsticks by which to gauge their
Merrill
Lynch, Pierce, Fehner
Smith, 18 Milk Street;
ft
>
Now With
experience at St. Lawrence and to
measure
Adds-
(Special to The Financial Chronicle)
their futures:
Pressprich
(Special to Ths Financial Chronicle)
First, he asked: How well do
BOSTON, Mass; —Robert E.
work with others? "The com¬ Fallon has become associated with
plexity of today's business organi¬ B. W, Pressprich & Co., 75 Fed¬
zation," he said, "requires team eral Street. He was formerly with
work in the most literal sense. Smith, Barney & Co.
;
v
you
Tomorrow's
able
to
executive
must
be
initiative within
the frqmework of an organization."
Second:
Can you demonstrate
creative ability—the capacity, in
other words, to range beyond the
immediate job?
Third: Have you learned to ex¬
express
Joins First Southetti
(Special to The Financial chronicle)
ATLANTA, Ga.—Ben R; Chalkley, Sr. has joined the staff of The
First Southern Corp., 652 Peachtree Street, N. E.
industry was meas¬
willingness of com¬
paratively few people to take great
ured
the
by
I' "The
direct
ownership of our
might — our
tools
of
production—has broadened enor¬
economic
part, working Closely with mously.
Millions of individuals
industry as they have in the from every walk of life and every
past.
We have both profited by income group have channeled their
the "relationship which has allowed
savings into stock investments.
many of your companies to bor¬
"This development of a People's
tlieir
row
as
spent, awaiting what
an
auspicious time
you
seemed
to
be
1o sell securities.
of arrangement
This is the kind
Capitalism
Never
unique
has
a
in history.
major eco¬
nomic power extended the concept
which should con¬
of
tinue to be valuable in the future
so
which
is
before
ownership—so
voluntarily
—
successfully
to so
broad
or
dimly portrayed. base."
It is equally apparent that such
He cautioned, however, that we
an inflationary environment calls
need "to improve the investment
for the most enlightened and in¬ climate in America."
In recent years investors have
telligent top management leader¬
ship which we in business and been treated with "apathy, indif¬
industry are capable of providing ference and
undernourishment,"
to our companies, our communi¬ he said. "Time and again, our tax
and
ties
citizens.
our
To the im¬
plementation of this leadership,
your industry, with so many cus¬
tomers and stockholders through¬
structure
ruinous
be
The
far.
the risk
he
He said
if
it
proceeds
could
alternative
our
tax
laws
"dis¬
tax
on
dividends be eased.
•
slightly less than 6V2 million
people owned the shares of pub¬
licly-held businesses. A second
not unfamiliar and one which we major survey in 1956 showed a
must seek to avoid at all costs if 33% jump to 8.6 million.
The 1959 census, Mr. Funston
we
are
to achieve
the promise
which our future holds.'
said, will use research techniques
that were first utilized in 1956 and
enterprise —including both man¬
agement
and
alternative
labor.
with
This
which
is
you
or
(sfl J, 'M
*
1952
have been refined since then.
"They provide," he stated, "far
greater accuracy than is possible
Henry through more conventional survey1
D. Burrall is now associated with methods."
Chas.
W.
Scranton &
Co., 170
Discussing the broad scope of
Grand Street. He was previously the new census, Mr. Funston said:
with the R. F. Griggs Company.
"We
shall
survey
over
5,000
With Keller Bros.
BOSTON,
Zero
Mass.
Court
—
„
Steven R.
with
Street.
big
development
Although
more
than 700 mines of all types
in
are
oper¬
ation, the great mineral wealth of Treasure Chest Land
is still
the
virtually untouched. The
enormous
four-state
stores of basic
area
raw
same
in which Utah Power &
By the logic of circumstances —rich
ing market, plenty of elbow
room
thing is true oi'
chemicals in this vast
—
Light Co.
serves.
resources, grow¬
America's next big
industrial development is already underway in Treasure
Chest Land. It is worth your serious study.
an
—
(Special to The Financial Chronicle)
awaiting
America's next
industrial
Co.,
publicly - held companies with
about 8,000 different stock issues
outstanding. We shall ask the as¬
sistance of 1,000 brokerage firms
and all the stock exchanges in the
United States and the one in
Hawaii.
information
Detailed
sented
in
OTAD
West."
or
For
phone
Manager,
ment
POWER
a
to
copy,
W.
Utah
ML. 0l
Power &
City
held
GO.
pre¬
"A
in
10,
str'ct
write, wire
A.
Business
Department,
Lake
0 LIGHT
Is
brochure,
our
Chest in the Growing
Treasure
(Special to The Financial Chronicle)
Conn.
—
are
Now With Scranton & Co.
WATERBURY,
known shovel
never
drill
undertakes."
that
Discussing the projected census,
eventually be bigger government Mr. Funston recalled that the first
and more' controls over business shareholder census showed that in
too
in Treasure Chest Land
has
ignored the inves¬
tor's right to a fair profit despite
unique posi¬ courage individual investing at a
tion to contribute -— to help in time when we should be doing the
slowing or reversing the infla¬ exact opposite," and urged that
tionary trend whose outcome capital gains tax and the double
would
and chemical wealth
has
the land, is in a
out
Most of the mineral
a
have
wc
ulti¬
Stressing the need for inquiring mately going to succeed."
your
Inc.,
difficult
man¬
agement. In this process, the com¬
mercial banks will be ready to do
become
and
particularly our
space,
have
into realizing that we
into
emergence
Mr. Funston commented that eco¬
nomic and social relationships are
the
Burke, Jr. is now connected
Keller
Brothers
Securities
slow
Mr. Funston said that "the events
of the past year,
judgment's, to get
rately to the diverse problems that
are part of each
major decision?
years ahead, it is clear risks., More
recently, he said, that
provision of capital re¬ growth has been accompanied by
quirements of industry will be a the economic risk-taking of masses
continuing challenge, calling for of people.
that
change with great speed, as events
.of .-the'past six or eight months
have demonstrated. It may then
a
graduating
their future would
of
ercise measured,
the facts, and to relate them accu¬
the
over
Conditions
affecting investors' psychology
destined to live with
seem
we
as
prospective lender only
a
excessive
priority list.
an inflationary situation such
your
In
Mr. Funston told the
class
Association
Dealers."
.
"We will learn the composition
tially
reasonable
National
.
holder," he declared.
and
as
and
the
.
400,000
portrait
a n
estimated
G. Keith Funston
extreme
most
of raising capital.
pressures
In
a
some
.
bit of
procedure might re¬
courage
luck—such
latent
un¬
that business cycles are not entire¬
move
of
ex¬
ever
dertaken
true. Such
were
be
one; could
record, especially since
peaks are by no means his¬
torically high, if one looks back
■ft
project
capacity in periods
capital supply seems likely
relatively easier or cheaper
perhaps, slow clown a bit
when
recent
>
plans for the most
announced
the
accepted as any particular com¬
pany's requirement and plan. With
well set
and
Securities
of successful
a
"In addition, we will
enjoy the
cooperation of the National Asso¬
ciation of Investment Companies
New York Stock Exch.
just
Suggests Counter-Cyclical
other new
the' combination
which
start¬
If this pat¬
quite convincingly that the
advance might
next
con¬
would
higher
ing and ending points.
tern'"is ftp continue,
argue
most
normal added
difficult
a
climate
meeting the continuing
..
And what of interest rates? This
is indeed
to
providing
■
.
Higher Interest Rate
.Return to
■
restore -the
ducive
develop an ugly
to
<
to
Huckins,
Develop¬
Dept.
7,
Light Co., Salt
Utah, inquiries
confidence.
43
The Commercial and Financial Chronicle
(2760)
.
.
Thursday, June 19, 1958
.
'
Continued from page
33
tor park purposes by a very im-
■
•
■
,
majority.
pressive
.
**
■
i
WkAVA flu
WW*lvIv
i!a
UlA
W
PfAM
W
WW V
IVAVA
nCIC
101ftft
»
Both
^
vv
t
Avtfl
-mm
Haw
AAftftU
TIa
liVfl
:
t
IrV
ftlftvAV
.
■
,v.
'
'•»"
•
Court iOf Errors, the highest court
have
in
ago.
the
State.
/
i
been
•"
/'•
ashamed
\* ■J
•
'56
of
not
can
Certainly, each of
to defend and project
years
,
r,r
that
say
But it is too
"by en-
we won
listing public understanding."
I
not sdre that "The Public" is
am
at
the
egory
But I do not think that we
satisfy our national necessities
concepts
there
.
in
tion.
win
Own areas, * but
needs which
our
industry has
our
portant
our common
in its
progress
evidence
made
im¬
efforts to
public
confidence./The re¬
ruling of the Internal Rev¬
cent
national
are
There is .abundant
that
is bound
us
100% in this second cat¬
now
to reconsider your position
in the light of the
present situa¬
by simple addition of;local accomplishments.
-npimple to
fronts
tion.
I have said, used
as
publicity operations.
ThaVA/
Ivllt
WWJC r.Wwft
~
all the familiar mechanics of public relations,' press relations, and
^
Wa
sides,
on all
national level
May I urge those of you who are
four
j>rogiams
can
gucceea
without honest local exemplifica-
Reach the Thinking: People
-
through cooperative action
I can
operations.
national
*
Service concerning the
nonare mpre than the sum of all our
deductibility for tax purposes of
pseudo-statistical expression. All Manresas.
;
ECAP expenses which was
t.
insti¬
Tu
•» ..
ash that the electrical
know for sure is that some ot
This has been a dull recitation of the
National
ancl mechanical
Participation in Four National gated by Clyde Ellis, Estes Keprecipitators will the things we did, or said or stood
of legalistic maneuvers for which
remove
from
the
stack
fauver, et al, shows that the gov¬
oases
for, somehow reached the thinkActivities
I apologize. But it
helps to set the while the
figure of 5 4 tons of ash illff Pe°Ple> whose
own underThe way in which our industry ernment giant power crowd is
stage for the real struggle for
djschar<yed per day is about cor- standing created public decision carries on its national program is running scared. If there was
ever
public understanding. The prinrect for"the ultimate development that could finally be tabulated on always a subject for lively dea time when a united front
at the
cipal argument of our opponents Qf
^ie p]ant
the illustration is a votirlg machine. We learned that hate.
It is not my purpose to national level was needed to
was that the presence of the
keep
powmisleading to'say the least
/
you can't Possibly reach every- argue the merits of how it is be¬ the ball rolling, it is now!
er
plant would
depreciate the
n
" .
«
'
body but you can reach the some- ing- clone or how it might be done
value
of
their
property.
They
hiSn/pti S bodies who really make up the better. I do, however, want to
realized as
,
Issue
:o.
of
p„hIi(, Park
Public pal.u
any-' anything rhore than a political or
The'next ad does not
power
lower
vs
vs.
^
about
the
say
than
more
enue
98%
,
.
■
,
,
,
.
.
.
early
1953
as
that to
gain public support for their cause
they had toadopt a more positive
approach. This took the form of
an
attempt to sell the citizens ot
Norwalk that Manresa Island was
needed
public park, complete
moorings,
swimming
pool, beaches, playgrounds and
all.
While the legal battle was
with
as
en
courts, the whole
di
iniHi™ l
m1
temWThp
The
vember.
i m
^ ntShp1\
lill
im
nf
pIoptinn
Nn
Question which the
Sis
ims
afterfive
eiiccuve.
a
nublic° refer
Tip
c^l dust
a™it"„SSt thl
^™snt used against the
ga™- ^as treated
one
pubUc mind, e,
.
■ ... ■
, .
So the heartening thing to me is
^ the Wunt arithmetic of the
vote, but that it was possible for
a public utility to step into the
saw
one says.
.
.
ol
arena
Coal dust and fly ash foi
bieaktast every morning.
boat
going on in the
.
"Do you prefer fly ash
public opinion_and find
friends;
Even
.
mon
on your toast?
Adcording to
testimony of President;Knapp of
fmn'°nnec^icut Light & p°wer
™
p^nppntc
norf
nnr
nn
"where
Citv
Lity
well be conditioned
exore^ion
thk
apnnirin?
acquuing
notion
oi
ManMan-
in w
directive to the City Coun-
come a
cil to
n
Norwdk
Norwalk
of
ot
act, the majority of the votes
east
the
on
question
would have
to be
"yes," and—more important
from
a
piactical
standpoint,
£5^S ofTh^tMaTie^
registered
A,
01
ine
toiai
the
voieia.
Our
lawyers advised
us
that
if the opposition got
enough
even
votes to win, the City could
the
property we
yes
not
condemn
lt
already held
adviser^'said S in°all
political^
probability
have
was
the
enough
opposition
"yes"
votes
would
bv
outnumber the "no" votes, but
it would be verv unlikelv
that enough people would actuallv
vote
the question to fulfill the
on
25% qualification
had
we
Last September
p?ofesS5nal
a
"
made to determine the public attitude
toward
the
referendum.
This showed that 43% favored the'
|;his
plant will
power
Connecticut
away
thiy
You
towns
hJd
ad
nniniftn
nn
Tn
In
opinion.
nth
other
r
a
P01ltlyi6
;
Ruapon posed a real ques,usb -Both.™
°
i
JJL K?rP/i<?foieif a£i
u
o
orfr.
in
ul
-
^
rmMk
linn
in
a
Un
ni
i
Si
thft
i
i, ?
vntw
-
til vfn
m
v
ii^,-n
imxr
ThiJ ,1-
iw
to
;
ourselves
answer
flnri-taVp
w„„
rnittpr
in
uurest
the
nf
dvp^
ihn
polls
Nov.
5
V
Pnniri
nnpstinn*
coldest
affni-ti
WP
Pmiiri
defhii
in
fnni
nffWri
w*
thn
MOT
to face it?
Another
„ •
„
lew ■ or
ments
run
.4
tne
-a
f
advertise-
by the opposition will
^lve an idea ot tne climate, ot.the
fteatand the hatred
in
had to live.
^
The
first
shows that
bl
the
ad
nuisance
did
opposition.
trations
of
not
the
cut
plant
not
be^
much
a
ice
Their illus-
continually
pictured conditions that any self-
respecting
plant
engineer
shows
need
we
standing
means
need
we
public
than
more
in this I find I
variation
a
That
"eggheads,"
am not
had this to say
iiuoca oy me oovious
,
ana oo-i
waadared what we should Otisly,. .dangerous
chasm that
about this new and obviously separates the intellectuals of oui
Pyo^essi0na^y~Ptanned onslaught, nation fiom the millions ot citiWe were conditioned by public zens whose attitudes and opinions
t
Sji1^ wouMiVt°make if
1
e U
Case
the
thf1l™andards°?or Pnat%nal
g0 away'
dpriHPfi
'"The
w^belfeved
directly
(as
fieht
to
for
in. We decided to
to
the
am0rphous
anonymous
public
to
state
we
deep
wbnt
intellectual,
'egghead'
carelessly brand him) has
.
meanwhile,
more
our
the ordi-
.
.
.
trustful of the 'egghead' who has
never
active part in a
political operation.
% ' '
jn our adyertising we stressed
quota.
'met
a
payroll'
or
a
sales
(jle £inanCiai
benefit
•
.
"Obviously
to the City by citing the loss of
would
payroll of ideas, this new "Post"
approach was significant in its acknowledgement of the importance
of the thinking, articulate minorities.
My company's experience
in the Manresa situation was a
flight into the area of ideas.-It
serve
who
members
are
sold
4%% debentures maturing July 1,
1958 and for lending operations.
members of
NONE
who
of
members
are
the
above
D. F. Greene Adds
(Special to The Financial Chronicle)
of
SAN
groups
S.
1.9%.
whi]e
are
^hat, if those
now
are
now
£our
nationafor-
members
the
group,
to%Vell
jumps
Two With Merrill
who
over
of
BOSTON, Mass.—Wm. D. Blake
Barry W. Murphy are nowaffiliated
with
Merrill
Lynch,
Pierce, Fenner & Smith, 18 Milk
the
and
proportion
two-thirds,
a
Street.
&
£n°w what 1
1 g 111
na4lonal activities
(Special to The Financial Chronicle)
•
COLUMBUS,
Jones
The tour-group total represents
with
are
less than one-tenth of one percent
oi our electric revenue and —as
Fenner &
we say
need to worry too much about
selling EEI to the industry. With
few exceptions, EEI is the industry and its value is fully appredated. Those of us who have
played some part in one or more
of the other three undertakings
a
likewise convinced
significant
that
Ohio—Robert
Richard
starting construction.
S.
Roederer
R.
Merrill
Lynch, Pierce,
Smith, 48 East Gay St.
Keller & Co. Admits
one
a
and
,
about electricity itself—it
of the biggest bargains in
our family budget.
It is evident that we do not
'
With Merrill Lynch
is,
.
has
Lynch
(Special to The Financial Chronicle)
very healthy raa.iority. Because
j am continually surprised to find
are
the
members 0f three of the
became
|ourth
to
Co., Russ
Coast Stock Exchange.
are par-
companies
added
Building, members of the Pacific
^mzohons 1 would like to point
ou^-
FRANCISCO, Calif.—Carl
Doney has been
staff of D. F. Greene &
only about one-third of
the jllcjustry's customers
served by companies who
is
$15,000,000 and was
for delivery
premium
a
Proceeds from the financing will
used to refund $106,400,000 of
groups serve
Companies
,
an
be
.
are
that
July 1.
Companies who are members of
TWO of the above groups seive
ONE of the above
14.7%.
for
at
'
"
(Special to
The Financial Chronicle)
BOSTON, Mass.—David J. Don¬
nelly has been added to the staff
of
Keller
&
State Street.
with
Paine,
Webber, Jackson & Curtis.
He
was
Co., 31
formerly
With Kennedy-Peterson
(Special to The Financial Chronicle)
each
HARTFORD, Conn.—George E.
and/important
Melin,
William
H.
role to play.
answer to the question of "Where
nected
action.
to Norwalk befive-year delay in
the
of
of the above groups
Companies who
announced
already outstanding with a
maturity of Nov. 3, 1958 was re¬
33.4%.
14,3•
also
was
an indication of the imporlance of thinking minorities in
their formation of opinion and
Do We Go From Here
Walther
and
now
con¬
Inc., 75 Pearl Street.
was
a
dollars
of
cause
a
of the
It
issue
than 1,000
more
nine months deben¬
securities dealers.
com-
The^of't, 1^0^^£0^195?^°^
'
struggle
with
the
routine problems
mis-
case, to ask for understanding. We
an
of
or
reservations about
nf^ Kn
go
and
be-
national be
havior
Directly to the
Public
,
Wo
THREE
serve
APriJ
rUstomers
approximately $134,000,-
1%%
opened
Companies
and
obvioUs-and ob-i-
Pianl.
Stated
nii
panies having
alone.
in its
Pro-
meters.
under-
ever.
Inform<ition
ol*
of
tures, dated July 1, 1958 and ma¬
turing April 1, 1959. Priced at par,
the debentures are
being offered
through John T. Knox, fiscal
agent, and a nationwide group of
and the National Associa-
Mtod^ EdiC'h Jve ^nTeeJly dS tici« in1the ^
alloided
nlant
So
in
conclusion
I
offer
and
my
How
Richard F. Wheeler
with
are
Kennedy
Peterson,
-
They
bought ads, we bought
Yet I do not believe that our Do We Get There?" We are seekl^bey had bumper stickers, industry can move forward area ing, and I believe we are capable
we had bumper stickers.
They by area. I do not believe that the of obtaining, far greater public
to°k 40 4be racbo> we took to the best of local, public understand- understanding and support of our
ads-
I never knew there
to
ways
get
a
were
And you
know what?
We
won
by more than two-to-one.
The
total number of registered voters
Norwalk at the time of -the
=
can be simply added up to a
private enterprise philosophy than
national total.
exists today. The way to that
goal
There are people here today, I is two-fold—first, doing the best
am
sure,
who honestly believe job we can and recognizing our
that the best of all
grams is a
national
pro-
composite of good local
responsibilities
communities
as
we
jn
was
vote cast
029
which
31,637 and the total
the'
question
was
on
more
was
17,-
than
the
total vote cast in Norwalk during
the
1956
There
were
presidential
11,424 "no"
election.
the
to
people of
In other words,
Norwalk were op-
posed to the City taking
„
„
citizens in
our
site
SAN FRANCISCO, Cal—Henry
the
second
.........
Cost to.the Cpnnecticut Light & Power Company
*n National Electric Utility Organizations
I
Richard D. Murray are now
affiliated with H. L. Jamieson Co.,
Inc.,
Russ
Mr.
Building.
Form Lubart Co.
JERSEY CITY, N. J.—Lubart &
Co. has been formed with offices
in
the
Journal
Building,
Square
7200
to engage in a securities
Arnold
'
;
$51,843
1
Grady
previously with Somerset Se¬
curities Corporation. *•
•
5 247
National Association of Electric Companies
" ■"
Four-group total
Grady, Albert M. Hardie, Jr.
and
of Membership
for 1957
(CL& P Co. Electric Revenue—$65,437,974;
Meters—319,264)
Edison Electric Institute
$14,664
Electric Companies Advertising Program
i
24 737
Public Information Program
W.
was
serve;
_
votes
5,605 "yes" votes.
Three With Jamieson
(Special to.Ta'B Financial Chronicle)
ing
so
message
across.
election
would
with,
our
we
testimony that the
plant
proposed
which
sample advertisement
our
power,
to
per capi4a tax saving Post,
many
a
paid
YES
2f tbe.sai?e theme. The figure of
That most staid yet lively, pubIs,^
opposition's calcula- licahon, ^The Saturday Evening
radio.
Sample Advertisements
A
a.
vote
and
SAVE MANRESA PARK."
million
J.tiJ
m.Kiir.
and
can
'-Norwalk wanted which could be
bought with the extra tax money
J from the new plant—better roads,
better schools, a new police sta^ tion, etc.
The next ad again points up the
i financial importance of the plant
'ShouldU IZ hfn S
tion
firm
in
nnL'nn
nf
so
can
bridge is needed,
plant
.
. bridges across which
ideas can
Ca ,tq the City of Norwalk. We point- travel."
y /
;
•
:
^ :
we ed out as often as possible the
Well, to my editorial friends
many things that the citizens of who have long had to meet the
f Fhll
-t0"s?y that
r^ur T
■uimiM
Public Understanding
In our business, fraught with
the struggle between truly public
utility operations and government
issue
000
r
members of
are
The Federal Intermediate Credit
on June
17 offered a new
Banks
tion of Electric Companies serve
we
actually took
n'T
two-to-one.
t
by about
mg
fA
woids,
plant and
power
Public
pram
gram]
of
Other
turned
Banks Offered
f''
Edison Electric Institute, Electrie Companies Advertising Pro-
^
keep Norwalk clean
and healthy if you will go to the
you.
Twenty-
■ahP'ZJZC7l rrer?galn1
be?
have
■
Companies who
may
"how
on
' i
tabulation:
Tnrlpprl
from here,"
go
a
City condemning Manresa. Island
for recreational purposes.
Intermediate Credit
.
£ aiTe'ele^on inNoveUer
to
Park should be. Add
we
5° thatthre dusa that wi.11 bIow ofI
I am giad to report that a few
5 acres ot P0™*** coal• weeks
ago the Connecticut SuHave you ever tried keeping preme Court of Errors upheld the
clothes" line S clean1' lu^^ clean dec1ision fo£ J-he
il'
w0mnhiW^
I oL £
ruction of the Norwalk
jn
shadow of
monster like ^albor ^^arl^ ^as
Tna^ be§ •
the
that
y p?w?r
>ivt
our Manresa
Debentures of Federal
tional activities, each with specific
jobs to do, offers a flexible and
effective means of working toward our objectives.
Maximum
progress can only be made, however, by active participation in all
four. We are a long way from that
goal as is shown by the following
For our industry, as well as all
businesS}
this
crashing
of
the
thought-barrier, means some new
wiU be 5.4 tons of
dust .and fly ash (not cinnamon) shot into the Norwslk sir
oethfon °read 1<T in'i favor*of" the 7>Zi f/ fe^ ^ W £eir
a
im-
more
portant, that it was possible for a
corporation to move, and breathe,
and compete in the
atmosphere
of ideas. f ' '
V
cinna-
or
had
^
cxpreffij my. 'own belief that the
existing arrangement of four na-
H.
Lubart
business,
President,
is
Treasurer and Secretary.
He vras
previously with Hallgarten & Co.
\
187
Volume
Number
5752;.
.
The Commercial
.
and Financial Chronicle
(2761)
Winners of the First "Loeb" Awards
of Special Achievement awards. Speakers at the
[awards luncheon include Wendell B. Barnes, Federal Small
Business Administration head; Governor Ribicoff of
Connecti'cut; Edward T. McCormick, head of American Stock Exrecipients
,t
«
^'change; and George A. Mooney, New York
f
V^.V
Something
financial
and
June
on
in
occurred
new
financial circles
'
shooting
Superintendent.
V>
writers
10
the
when
,
attended
between U. S* A. and Russia will
war
annals
of
Wall
Street
and.
100 invited businessmen
reception
and
lunch
the
at
awards for
'distinguished financial and business writing.
I ha*'^ long felt that there would
be
"shooting"
a
war
between Russia,
representing Com-
munism,
the
and
United
gimmicks"
States,
Eivte
prise.
\'V §|
->y
■
my
Fore¬
%
'i
the
sition
would
that
a
war
would
hot
take
;
(
that
no
Roger W. Babsoi
shooting
Laurence J.
"Loeb
G.
M.
Werner
Loeb
Awards"
presided
the
war
between
Renberg
Toastmaster
as
Advisory Board
and
introduced
on
the
speakers.
the
1958
"Loeb" winners for
distinguished reporting of busi¬
Steinberg of the New York
"Herald Tribune" and Werner Renberg of "Business Week"
Maga¬
zine, both of whom received $1,000 checks and bronze placj'hbs.
Their publications also received plaques.
and
financial
news
were:
David
,
The presentation
of the $1,000 checks and plaques was made
to the winners by Dr. Albert N.
Jorgensen, President of the Uni¬
versity of Connecticut, administrators of the "Loeb" awards.
Edward T.
McCormick, President of
Exchange, and George A. Mooney, New
Superintendent, were among the speakers.
the
American
York
State
Stock
Banking
Bronze plaques were also awarded to three
newspaper writers
including: Leslie Gould of the New York "Journal-American,"
George H. Arris and Joseph L. Goodrich of the Providence "Jour¬
nal-American," and in the magazine field to T. A. Wise for his
article in "Fortune" Magazine and J. A. Living'ton for his
writings
in "Western World" Magazine.
The
"Loeb"
awards
were
established
partner in E. F. Hutton & Company, with
S. Loeb Memorial
by
Gearld
M.
Loeb,
sia.
Because
ly.
through constructive
factual dissemination of knowledge."
the
was
Banque Canadienne Nationale,
re-elected
Canadian
President
Bankers
of
Association
com¬
.
though
the
at
Eastman
Co., 15 Broad Street, New
City, members of the New
Stock
Exchange,
admit
Kenneth
Quebec.
merly
general manager of the
Bank of Nova Scotia, was named
Honorary President.
Securi¬
York
partnership.
dent and
Mr.
Hill
officer
an
of
July 1
on
E.
Hill
Nasser,
the
Chase
Manhattan Bank.
New Treves Partner
Friesen, Imperial Bank of
Carl A. Hug will acquire a meniCanada, G. A. R. Hart, Bank of bership in the New York Stock
Montreal, J. P. R. Wadsworth, Ca¬ Exchange and
Commerce, and K.
M. Sedgewick, The Royal Bank of
Canada,
were re-elected VicePresidents of the association.
Philip K. Bartow to
Be Drexel Partner
Philip K. Bartow
July 1 will
be admitted to partnership in
Drexel & Co., 30 Wall Street, New
York City.
Mr. Bartow is with
Wood, Struthers & Co.
on
on July 1 will be¬
partner in Treves & Co.,
Wall Street, New York City,
come
40
a
members
of
the
New York
Stock
America,
region now
oil-rich
the
an
able
Dempsey-Tegeler Branches
LOS ANGELES,
Cal.—Dempsey-
Tegeler & Co. has opened two
the
there,
in
stay
should
avoid locating
especially along
Investments should be
and
with
stores
wide
geo-
graphical and product diversifiedtion are very desirable as a hedge
~
am¬
•'Chester
memberof'"
Apy,
the
flcw York Stock Exchange, passed
away on June 6. In the past Mr.
Apy had been an officer of Carl
\y.
Stern
&
Co.,
Inc.
of
San
Francisco,
\i/-fL
n
Wltn
the
resources underground.
Chain
as manager.
Uv;:••:v''-v;
~ Chester
Apy
com-
companies
of natural
among
reserves
JS>
r
Ci
L.O.
Co., underwriters and
distributors of
^ounces
1
Urexel
Drexel &
s e c u r
i t i
e
s,
an-
that John J. Knox and
W.
Montague Geer, III have ; joined
the firm in the New York office,
80 Wall Street, as registered
rep-
resentatives.
r.
'
~
a-
r
I
-1
Good, Low-Gmt Eieckio d7ewic&
£
m
Mow than 700 ComMumtiM
t&
States,
Great Britain, and other
nations might push us into the
in
fight, while Egypt pulls Russia in.
What
Most
Countiei
in
70
one
Chemical War Means
a
people
called
now
atomic
there
sibility
of
chemical
visualize
I
war.
a so-
feel
that
likely exists the pos¬
an ^equally dangerous
more
This
war.
occur
may
through various means, such as
poisonous gases or bacteriological
attacks. Russian publicity center¬
ing on their advances in sputniks,
missiles, and atomic weapons may
well
be
for
cover
a
serious
more
chemical warfare.
on
In addition to the closeness in
for supremacy in
race
reason
nuclear
there is another logical
weapons,
for
chemical
a
and
bacterio¬
or
new
at 9030 Sunset Boule¬
transportation
An
systems
atomic
attack,
other hand, would reduce
areas
into
masses
the
entire
on
of useless rubble.
Outlook for Economic Warfare
I
am
over
greatly concerned
possible Russian tac¬
now-
another
tic, namely, stepped-up economic
warfare against the United States
and her allies,
accompanied by
recession
minum,
and
the
copper,
modity prices.
withstood
the
slumps in alu¬
other com¬
Steel prices have
and
cutbacks
of capacity.
in
output
•
Russia's
sup¬
Harold
Haims
E.
as
Levitt
and
co-managers.
1957
must carefully watch the cur¬
rently high outflow of gold from
I
of
gold
States.
could
take
A
certain
the
place
use
of
germ,
or
atomic attacks.
Thus, Russia's rapidly advancing
knowledge could cause
severe
has
industrial competition. She
her program
to
accelerated
I
H
Kilowatt-hour Sales
System Capability
PUBLIC
The
SERVICE
INCREASE
275,051
88,368
$79,222,115
$36,886,284
$42,335,831
$410,143,483
$131,403,384
1,954,610,000 KWH
304,000 KW
702,000 KW
■*
111
2,390,872,000 KWH
1,006,000 KW
2
•Xv:vS.
I
$278,740,099
4,345,482,000 KWK
Utility Plant (original cost)
'■
the United
1948
363,419
Customers Served
Operating Revenues
we
technical
J.
illUlv
ply of this and other commodities P
is rapidly increasing.
Moreover,
the other at 3285 Wilshire Boule¬
with
Growing
more
intensive
propaganda.
In
fact, Russia may already be large¬
ly responsible for our business
gas,
Martin
the
Penington,
Colket & Co. has opened a branch
office at 1401-07 Reistertown Road
cities,
owning large
empire, with Russia as an ally.
Should he provoke a conflict, the
great oil interests of the United
vard, Hollywood, under the man¬
agement of Donald If. Black, and
vard
panies,
Middle
and
should
widely
diversified
among
smaller well-run industrial
oil
to 50%
Exchange.
•offices,
conflict
a
others
large
seacoasts.
bitious man, seems determined to
make Egypt the hub of a great
to
for¬
was
E. J.
nadian Bank of
be
to
East.
tion
Dillon, Union
the annual meeting at Montebello,
F. W. Nicks, Vice-Presi¬
war," such
South
critical
seems
intact.
York
will
direct-
West
in
,
stroying the people of our large
cities, leaving industrial equip¬
ment, resources, and communica¬
Admit K. E. Hill
ties &
the
economics in their
in
D
.
—
logical attack. Russia would prob¬
ably be more interested in de¬
Eastman Dillon to
MONTREAL,
Canada — Ulric
Roberge, general manager of
Russia
us
Such
in
occur
may
the
Assn. Elects Officers
"brush
some
World War III.
a
istration, who said that "businessmen of today must have some
understanding of world economics, and you well informed writers
Canadian Bankers
that
in
the Korean War, may touch off
as
work
.
retaliatory
our
feel
now
But
financial writing." Gov. Ribicoff was joined in his personal tribute
to
Gerald
Loeb for making the award an annual custom by
Wendell B. Barnes, Administrator of the Small Business Admin¬
.
I
power
of
would hesitate to attack
grant from the Sidney
"Annual tribute to busi¬
Speaking after the lunch, the refined, young and handsome
Governor of Connecticut, Abraham
Ribicoff, sounded the spirit
and temper of the meeting when he declared: "Gone are the
days
when a man seen reading a financial magazine or financial section
of a daily paper could be classed as a banker or broker.
Gone,
too, is the day when a financial writer would couch his stories
in technical jargon understandable only to
specialists," for the rea¬
son that "economic changes had increased the need and
scope of
of business and finance contribute
shooting war with Russia
it must be started by Rus-
a
<
business, and
Government. Young people
and
occurs,
sounci
lives,
»
a
Foundation, Inc. as an
writing which contributes to a better public
understanding and appreciation of our free enterprise economy".'
ments and
own
p
PIKESVILLE, Md.
stronfely advise alt readers to
■work tor
place during the Eisenhower Administration.
financial
and
ness
I
Central
If
The
ness
our
.
with John L. Reynolds
World War ill
,
Unites States and Russia will take
Ackerman, Chairman of
drive
Protecting Against Any Form of
now
•
^Cnington, Uoiket rSrancn
more
place
months. I
Steinberg
1960. /But an
by Russia
inflation and may even
dollar to 25 cents.'
;v;
during the fol¬
lowing twelve
feel
by
started
unemployment
and business slumps.
Moreover, it
could inevitably lead; to drastic
po¬
shooting
Russian
things-worse,
this recession could
war
cause
arouse
make
course
economic
!
have:
taken
its
run
"V
v
I
Pont, Homsey Branch
branch office at 22 Queens Buyway under the direction of Robert
D. Bagg, Jr.
L
further
and
If left alone,
V<k
in
year
cast
■
FALMOUTH, Mass. —du Pont,
Homsey & Company has opened a
enmity
each
Annual
du
and
catastrophe.
these may
r-
Never¬
theless,
suggestions.
the impor¬
Religious faith, good
tariffs could temporarily cushion
us
against such competition, but
represen ting
Free
sane
against World War III, and as the
only hope for survival from any
subsidies
as
avoid
about
health, intensive education, and
industry as the best protection
'
such
but
Learn
Finally, T emphasize
tance of
expand trade
with
dollar-short
Fred World Nations. ^'Gadgets and
day
some
funds,
bonds.
,
Civil Defense survival
1
such
^Waldorf-Astoria for the presentation of the "Loeb"
David
investment
long-term
,j
during
occur
Eisenhower Administration.
over
a
recession, and
may
;
inflation.
buying
our
be able through stepped-up economic warfare to cause
more
unemployment and business slumps, is raised by Mr.
Babson after pondering the possibility that chemical warfare
may supplant atomic war as a greater
possible threat. Doubts
•
State Banking
is the root of
and
well-located
real
estate
become very valuable.
All
should build up reserve
and
possibility that Russia
bombing
Certain
could
By ROGER W. BABSON
The
'
'
against
Outlook For World War III
"Loeb" financial awards for business and
financial reporting
are won by David
Steinberg of New York Herald Tribune and
ubWerner Renberg of Business Week. Five other
writers are
49
COMPANY
OF
INDIANA, INC.,
Plainfield, Indiana
Company's 1957 Annual Report Will Gladly Be Senf Upon Request
H
A
methods
many
been tried for
Detioit Securities Dealer Flays
Market Vocabulary Terms
Perhaps the
most successful one is the
and
lecture
method.
discussion
group
have
imparting informa¬
tion to large groups.
Groups of employees of perhaps
30 to 40 are brought together on
company: < "time
and
a
program
A plea that we realize what we are saying when we use certain
market vocabulary phrases is made by Mr. Fordon in bringing-
conference
undertaken by trained
leaders
and scrutinizing the usage of the terms: growth stocks,
defensive securities, and technical position, or situations
up
good
lecturers,
and
who
are
preferably employees from super¬
visory ranks and generally in the
middle
strata
of supervisory
Financial right time. It has a warming feel- levels. The training of the confering and it seems to endow securi- ence leaders is a most important
Thia
ie
«rnwth
<?tnrk
k an
ties with relaxing and therapeutic phase of this operation. He may
assertion freauentlv made
A few Qualities. It is almost like a magic devote full time or part time to
vears
aeo
the hackneyed phrase dru§ or a favorable astrological the program, depending upon how
w^ft.ha?Aisis a eoM bond The sign but it is a kind of hocus- the particular utility management
Editor, Commercial and
Chronicle:
a
coSse
tetter expression of
is no
the
former
appears everywhere ad nauseam.
Does anyone ever buy shares not
but
heard
longer
It
P^u^ which is becoming a little desiresnot be emphasizedbe set-up.
the program to too often
can
that
Among all the abracadabra of
the stock market, what is more
be
educational
these
done
company
on
programs
This
time.
it stature and serves as
and mystifying than the gives
notice to the employee that the
technical position or tech¬
situation?
Here is presum¬ company considers it important
expecting or hoping for growth?
esoteric
What is
term,
non-growth company?
It seems that the time has come
to discover other descr iptive
a
nical
ably something measurable and
scientific, and completely incom-
While
business.
.
.
Thursday, June
.
19. 1958
company's revenue not have an educational program
components and of of training supervision in ad
its balance sheet and of the meth-, vanced : economics
and ^practices'
ods
which
have been used in concerning business.generally and
financing the company's opera- specifically
applicable
to" the
tions. The economics of the busi- utility business. I call your atten
ness
should be thoroughly dis- tion to .the PubliO/Utilities-Reports
cussed; who its suppliers are and "Guide and Leaders Manual for
where its materials, supplies and Supervisory
Employees of> Utilfuel are secured; and a discussion ities. '
It. is an excellent course
of the dollar flow back into the covering 50 subjects on the noncommunity of payrolls and supply technical side of our business. The
purchases, which directly affect United- States Chamber of Comthe economy of the area served. A merce has a study course for su
discussion of the company's rela- pervisory employees consisting of
tionships at all government levels 17 pamphlets ort the American
and the importance of the com- Competitive Enterprise Economy
pany
in helping to solve com- for user by economics discussion
munity, industrial. and economic groups. ' ;•
.* ■?*
:,
problems are other subjects, .The.
, m
T
/
methods by which the company
Jif tten• at
analysis of the
Explains Methodology
LETTER TO THE EDITOR;
Chronicle
and Financial
~,The 'Commercial
50;> (2762)
employee
turn-
and
expense
.
.
,
,
.
communicates with its
^that^ it Xndrt?
customers
policies
company's
the
and
RMiSt
and
?n°rendering1Cday-to-LyeVs?rrtce
uick
anl effectively*
v
emergencies would
formtfim-
portant part nf such a p ogia
oi such a Drosram .
?f-d
ciently staffed to train the conferl
en<* \eadtrs ?"d .lecturers who
a£ be charged with the respon-
in
and
ilmJ
,
.
«bibty ot carrying out the
pro-
Thig WOrk should be given
gram
well-rounded em- status at the vice presidential
phrases. It may be good sales¬
ployee program should include a jeveL This will serve to emphamanship to harp on growth but prehensible.
thorough discussion ot the relations s|ze generally to the employee and
Probably every activity has to
the term has become almost as
of
government to our business. a|S0
pLlbiic the importance of
The old ones number of new employees will
unimaginative as long time, no use catch-words.
have joined the company and they Perhaps
this
should
be introphase of the company's operare easier than finding new ones
■see.
•>
duced by
an elementary discus- ations>.
y
but they begin to pall after so too, at some suitable time after
Finally,
the utility business is relatively low, nevertheless m the
■course of a Yew years a substantial
over in
a
■
,
Another
word
in
tiring
defensive.
That
is
an
use is
ingenious
phrase, defensive securities. It is
as though defensive securities are
on the ramparts now and, when
safety is assured, down they come
and
the
attacking force takes
their place. It is as easy as that.
To" use*
much
repetition,
costomed phrases
hard to
aside.
cast
place
the
at
let
Thus,
an
us
Bldg.
Co.
the
public utility business in gen¬
finally take up the many
facets of the company's affairs in
particular. These programs should
be comprehensive and cover every
phase of the company's operations.
„
Detroit 26, Mich.
eral and
Broad-Gauge Employee
Information Program Is Mandatory
tinued
the
Otherwise,
them.
training
economics
con¬
of employees
and
operation
on
of
the public utility business will fall
on barren ground,
Management must know whether the training given employees is
accomplishing the purpose, nanje„
ly, that their area of economic
understanding is being widened,
How
can
results
results
are
are
be
determine that real
we
by
done
This
rms
obtained7
ooiaineu.
being
weing
< each
set of questions on the subject before the
program is started and again .re=»
quiring the same set of questions
to be answered upon completion.
In this way a real ...=„oU.c...s...
...
.....
a
measurement
of the increase in understanding
can
employee to
can
y
requiring
answer a
be had.
Uavpml
Of
comnflnips
our
had the foresight to
havP
adont
or
bv
force of circumstances have un¬
dertaken broad-gauged employee
education.
They have found it
to be a rewarding experienceboth in terms of settling trouble¬
some local situations and in ce¬
menting the valued ties between
management and employee.
Comparative surveys have
those
the
new
areas
^new that
nicipal
by
pursued
being invaded by delegated authority.
A thorough analysis of
public power as it applies generally to the public utility industry
in the country and specifically its
effects, short and long range, on
the employee's own company; the
preference
clause
and
how it
works; tax and other subsidies
which
offered to public pow-
are
all should be carefully and
thoroughly presented.
And,
of
er;
business
Atomic Power and its impact and potentials should be in-
and
introduced
and
of
an
Your
with
Company
statement
a
discussion
be
a
of
of
the
course,
cluded
cmnhw again
presentation
■
of
an
innrr
RE A
co-ops
and
mu-
have preference
electric companies
in
buying
projects.
power
from
tl
Federal
^tviAnti^o
'
„
,u
orA.
where
areas
»
(D To serve the American peoPje with a dependable supply of
in
nnv
deficiencies
;
may
J
sj10w
^
•0
^
(2) To plan effectively to meet
Stresses Comprehensiveness
do
less
than
lc opinion starts with the indivicual voter. The individual
v°lei' ls also our customer. Every
omployee of a public utility
s"phld believe in the cardinal
principle that electric service to
.?
rendered better,
?c can,
the lowest over-all-cost and
anore^ efficiently by private mdusa':
than
government
a
requu^ments
as many
^
•
-
•
-
and
present
•
(5) To raise at the lowest prac- employee's interest must he
said that the best way to tical cost new capital required for aroused and his interest mainToo long an interval of
control floods and conserve water new facilities to serve their cus- tained.
small
servation
dams
methods
rather
multipurpose
on
on
soil
the
con-
small
had
heard
posals
time
tomers.
(6) To operate under the
pres-
by large ent system of government regugenerating lation.
the main streams.
(7) To work with agencies of
watersheds
dams
and
than
power
for
or
read, of
TVA
the
government in carrying out apPropnate functions where elecconcerned.
pro-
;
;
further the application
revenue
between- presentations
serve
to
short
with
that
an.
interval
may.
company's
suggestion
to^nstnmt^iP^th^
wa
"
V
and
inV«
transmitting these facts
pubhe. .National smveys
.
1
? +i?
f
+^ay^ that they have been
o^/
S
i/,
8% should be advanced to 75%
a
5-year program. An employee
program:
is the one
™ost. euffe^tiv? >a? tp. f compHsh
3of stemming the tide of
inv?sl0n -of pubhc power in our
business and of preserving the
American
economic
system. If the
~ ::;a
utility industry succumbs to he
^he- Power threat, then the
m industry, the oil in^nd otherextractive mdus-
tries will be next in line:
will
interfere
operations,
has. .been
-
level
management,- is adequately
staffed, and a thorough training
program instituted to cover the
month for the gen- entire personnel in every com-,
employee is about the maxi-: pahy, the morale and esprit de
an
eral
nc'ce
If
.an
employee
information
dissipate interest and too "program is placed in charge of top
the1
The
ttie
every6^-
(6) About one-third fewer than
by
a
lU+nf
a^emble
average
is
agency.
The emP'loyfie is the key to
information
comprehenrive job in employee
training will
fall short of the objective. Ad-to
do a- comprehensive job will take
time in preparation and in presa
in the newly fiiture
acquired »eas as the average .13) To jell electricity at the
said that REA co-ops and munici- lowest pi actical price,
Pally-owned systems pay the same
(4) To maintain adequate earn- entation.. The company's day-totaxes as the electric companies.
ings and a sound credit standing. day operations must continue; The
,«) Twice
eavor'
long-term view, Congress
mu®t. answer to the weight of
0Pin.10n an<^ an informed
in
To
+T
or^wfh C01]tinuef 1in"
^
ii °f public
ll
employee
i
electricity to meet their needs.
.
.
pipr??
th*
^
J^
try
well
as
I pfmp
.
m.ohlpm
our
employee in¬
formation program on the utility
average
systems
the
over
the
as
to produce electric power and in
one of the newer areas, an average number, and in the other,
the
the
be
must
Foresees Long-Term Problem
subject6
gained on important issues as
against the knowledge of others
not similarly schooled.
and
that
which
citizens to keep our freedoms from
who
bonds,
fewer knew about using.the atom
what
recommend
the history of freedom,
the
guarantees afforded by our
constitution
and
the
methods
formation program, the employee's
did answer policies intended as a guide to knowledge of the subject should
that TVA has not proved satis- show the electric power industry
«md
factory as a ''yardstick" for meas- can continue to operate within
uring rates, a smaller proportion the framework of the free enter- should be again tested upon the
in the newly acquired areas gave Prise system. The statement was completion of the program. It is
such specific reasons as the tax recently adopted .by the Edison oiily by this method that the manand interest subsidies TVA enjoys. Electric Institute directors for the agement can be assured that the
Less than half as manv in Yse
? management of mem- training processes have been efthan halt as-many in ker eiectnc Utility companies, fective and strengthened in those
Of
(3)
employees absorb
better
understanding
shown
would
I
preparation
"Objecaverage had
no
opinion as to tives of America's Electric Light
whether TVA paid any interest and Power Companies." This is a
on government money it uses.
statement of the principles and
(7) Fewer
employees
in the
areas recently acquired said they -
Refers to Surveys Made
employees
have
been
given the essentials of the Ameri¬
economic system, the program
should then be expanded to cover
A
in
information
employee
program becomes a never-ending
can
Continued from page 32
Iieve
program.
job of education.
RALPH FORDON
re-arrangement to insure invest¬
right
So
in-
Freedoms
eluding
educational
After
Fordon, Aldinger &
the
this
Cordially,
Penobscot
in
bad
sion
given
with the hokum.
go on
Is sounds like a mere mechanical
ment
be
American
of
becoming an employee, should be
old catch-words
for business and
are
might
unac-
hour
mum
made
a
interval that should be set
order that the total
job can.be
accomplished
in
a
reasonable
m
human needs
time. What
^^®a,.^esear.^ promotion and it
will: be
.^3
segments of
tnneiectrip industry.
\
+v!e 30
tnan
.
be
of
understanding by the public of the
is a reasonable time? electric
utility industry will be
difficult to compress
immeasurably inci*e?tsed. If w^.
subjects into less can reach a goal whereby 75% of
sessions.
corps
of
every
utility
will
greatly improved and the level
This would
re-l our customers know and talk to
Take, for example, one com- twice the average proportion said work of gwd em^ovPP rei^lSfc" quire 2
/2 years of minimum com- our
employees, who are thoroughly
pany's experience when recent the Federal Government should
,
plete coverage at the rate of one
trained in the knowledge of the
acquisitions of properties afforded build nuclear generating plants.
p
To operate as good citizens
ssion
per month for each emAmerican enterprise system ah"
a direct measure of comparative
Experience in these instances both locally and nationally
ployee group. I have, the
feeling of the public utility industry, we
understanding. In the new areas shows that where their employees
(11) To help develop and
?at ance we have proceeded this can solve the problem of invasion
acquired, an educational program have become thoroughly informed strengthen the economic nf iho
had not been in effect as it had they have a higher record of dis- communities served
Sfm-i «Vjuryugrea value °f these of the government in our business
uol-pie° f
(1Q.®
the .Other employees.
found that;
'
among
(1) One-fourth
ees
in the
company
They cussions of company and industry
problems with other people. This
fewer employ- is
new areas
employees
than
as. a
taxes
as
panies.
,
the
can
electric
com-
•
(2) In the newly acquired areas
one-half
more
a
friendly
intimate
such
atmosphere
ness
an
that public
business
can
be
way.
It
is
in
of friendli-
approval of
our
cultivated
and
than the company activated most readily,
employee information
gram should
include
pro
history of
the company, a description of the
a
amongSfiSSr
whole of the public
be reached in
knew that TVA did not pay the
same
highly significant and conclu-
An
latlons'
erty and how it is operated. TWs
would entail a description of the
niw
5°^?. aPParent and
in? S ° -lfectlIe u?derstandapfin
claim attention. Thus
it^
0r^ y
® j°b and
itsimportance
is
emphasized.
■
and reap the benefits of an organization with an ever-increasing
efficiency in the conduct of our
business in service to the public,
.
Thirt
no?ehl1!>0ry. e™Ployee lightly
s
we
dismissed
the theory that governtw
overlooked m set- mental policies were leading to
T?emp yee educational destruction of our freedom. Today
company's organization and how nr^rram
nrnororri' „Evei>v company has a we no longer have a theory—we
°Q^i1\COmpan?
the traTn\'nSrSa
°r lr^ormal, for have the condition. Can the rf--jnb fits in with everv other Tob! operaUfm^nf fv>lUPerVlSOrStiY^ the ready destructive .damage be unSuch a program should include an ness as
conmany s busi- done? - Can further erosion be
such. m
Many companies do arrested and
prevented? What can
™
should
,m
Number 5752
187-
Volume
.
.
The Commercial Und Financial Chronicle
.
(2763)
,wc0s-respoasiblep€!Qple.<io,; about
v
>
-S'
..you
up
to cprtsider. VThe probiepa is "v'''
.to li^ and /to every thiriking j: ':
.citizen;•
'; *.*■■
i
V.;l T
y
-
Perhaps •the"'
most effective ef.-
:
v. ■ ■
f
*'•*>;$<.>';V;.\!:?; •;.•'»
'
*■''
:
■
11ISI1KIKI0
».-Vv
'■
5t
tions Economic Commission for Europe. The Committed
^ }n. Gen«va, Switzerland, Jast October, and:Mr. Gosette
participated instudies of such matters as; the transfer cof
e?ec*r!c. energy across frontiers and problems of rural
electrification. He dlso served as
principal spokesman for
the United States at the fifth session of
theTtommittee'g
J» t. torette as . rresident and Allen tS. King as'Vice-President
of trade association for forthcoming 1958-59 year.
•System aiaia : the'i important role :
w
J
'•■'■ 4 .■»*,-/
.
1
.
vou^ industpy plays inournationai^. ,*k
J. E. Corette, President and General Manager of the
Understanding.
Given a
better knowledge of our American
better
"
.
scene
^weK-sshbu^
to
..
reach.
.
rThey
should
be
,:]$4Q£t<ma Power Company, has been
elected President of
Institute by its J3oard of Directors
was Allen S. King, President of
the Northern States Power
fleeted as.Vice-President
encour-
i aged to lend their support to pub-r
lie officials of integrity Who stand*
C
o m
of ai free.
We must recognize that
preservation
America.
it
,
is the decisions of the millions
President
I sion that in, the end .r determines
.
dent
individual
own
:
.Installation
-
,
people, each exercising his :
right ; of vexpres- i
of our
•
Minn.
was
of
and
the
I the kind of nation we are ulti-\
mateiy to have. - Our industry is y;
very close to every-community we;,
serve—-our employees are- a living
part of the thousands of commu-.
nities
we
serve
throughput the
land. So we fortunately have thev
held
at
of reaching into these
munities in
..
in
the United
The
.-
i
Boston.
National Association of
Sees Close Tie
There is, in
sity* He is
LONG
W.
}•>■
newly elected
Board
economic
.
moment's
the
■
BEACH, Cal.—Raymond
and
LeRoy V. Hicks
Akers
Allen
S.
•••
SANTA
of Direc¬
E. W. Doebler,
Chairman
Lighting Co., Mineola, N. Y.
moimt and the limited interest of
minorities;js subordinated, \
In the final,
analysis, the task
of
Board,
Long
Island
R. R. Dunn, President, Potomac Electric Power Co.,
Wo^viWtnn T) 'r
asnin&con, u. s^.
C. E., Eble, President, Consolidated Edison Co. of
New York, Inc., New York, N. Y.
•
F.
I.
Fairman,
President,
Kentucky
Purvis
joined
&
Company,
i.
;
k
^
With First Fidelity
(Special to The financial chronicle)
"
ATLANTA, Ga.—Henry W.
with offices at 1108 East Washing¬ Bridges, Quarles K. Kerce turd
Dwight J. Wiseman have joined
ton Avenue to engage in a secu¬
the staff of First Fidelity Securi¬
rities business. Officers are Wil¬
ties Corporation, 11 Pryor Street,
liam
D.
Greschner,
President;
Southwest.
/
Fred V. Bennett, Vice-President;
David E. Keller, Treasurer; and R.
E. Greschner, Secretary.
Five With James Fallon
Co.
has
been
formed
'
(Special-to the finanoial chronicle)
Eugene
J.
LOS
ANGELES, Cal.—Leonard
passed away J. Friedman, George I. Guccione',
of 59. Mr. Stark, Glenn A. Paul, Samuel Smith arid
Stark
June 11 at the age
who had been in
the
investment
business for many years, was
with
Bruns, Nordeman & Co.
Scott
S.
Smith
with
now
are
James L. Fallon Co.,
Boulevard.
7805 Sunset
Lexington, Kentucky.
,
v
P. A. Fleger, Chairman of Board, Duquesne Light Co.
Y Pittsburgh, Pa.
•.
v
;
^D. E. Karn, President, Consumers Power Co., Jack.
we K g0n
^
Michigan.
V
-
7
1
•
:
;
f
actually, believe in what w;e^Coq
and ourrbeliefs must find ex-,
Oklahoma City, Okla.
must
\
»
-
.
Sherwin, President, San Diego Gas & Electric
C
o
v*'
r
T
ll
/•
n/VA
t
'
/
..
^
President, Pacific Gas & Electric
to match by
ing
effortsthe
our
'Co.,San Francisco, Calif.
CL. V.
pect to enjby the.blessings of free-. - r ,>4 *y
dom we must be willing to pay ;<&'Gas
;
tha.price-rrto, undergo the .-.arduouswoi?koi
^
'goihg ;to need
are
gering
wa*i
vPublic Service Electric
William
Webster,
: r ^
;
Vice-President,
Executive
New
Need
suppoftinglt:Thy wemust ^ :Engiand Electric System, Boston, Mass.
"that this nation^ under God,-shall .
havea'new^birthof freedom." " :V
We
......
Sutton, President, Carolina Power & Light Co.,
Co., Newark, N. J.
a
stag-
;amomT?^f^ower in the
decades "which lie ahead. I believe
C. ILWhitmore President, Iowa-Illinois Gas & Elec-
,
tric Co., Davenport, Iowa.
:
The Directors term of office that will
■
is J.
Lee
specialized
Rice, Jr., President,- West Penn Electric Co.,
yNeW York, N. Y.
'
most
strongly ,that the best an¬
to the problems, of research,
technology- and, indeed all areas
of ; knowledge
affecting f human
expire in 1959
help
-
Mr. Corette's
Background
many
swers
'
will
progress
we
know
We
in
what
the American way.
must
erosive
will
as
be "found
•
guard against those
which unchecked
forces
undermine
and
destroy
the
structure of liberty, the process of
attrition about which more than
2,000 years ago Aristotle
warned
when he wrote—"one thing takes
the
place of another,
ancient
the
laws
power
will
will
in
be
of those who have
that the
so
remain,
as
boundless
of
as
standing and free
hands
the
brought about
revolution in the state."
The horizons
while
the
,
future
human
men
are
under¬
can
make
V
V
as
head of the nation's electric
Mr.
Donald S. Kennedy
who resigned at that time after
being re-elected President previous June, 1957.
Mr. Corette has been President and General Manager
Born
in
Butte,
Corette received his
Montana, Mr.
early education in the schools of his home city. He at¬
tended Montana State University in Missoula, and was
graduated from the University of Virginia with a law
degree in 1930.
For the following 14 years, he was actively engaged
in the practice of law throughout Montana, and has been
a
partner in the law firm of Corette, Smith & Dean from
1934 to the
us
accept the challenge to
future
present,
they
realizing that "for anything worth
having
one
and the
present.
he became counsel for Montana Power, serv¬
must, pay
the
tience, love, self-sacrifice
currency,
no
price;
—
no
promises
to
Pay, but the gold of real
service."
ing in that capacity
He became a
and General
until 1944, when he was elected Vice-
General Manager of the company.
Director in 1948 and was elected President
Manager four years later.
1957, the U. S. Department of State
In the Fall of
designated Mr. Corette as the United States Delegate to
the 15th Session of the "Committee on Electric Power,
one
of the
directions?
The modern
approach to solving
specialized help. That way you don't
divert your own
key personnel from
regular duties. You don't overburden
regular staff. And you save a
maximum of payroll dollars. Backed
Ebasco gets to
the job
work promptly, gets
done right and economically
while your
normal flow of routine
operations continues.
Ebasco business
specialists
are
principal subsidiary bodies of the United
Na-
at
your
your
call anywhere and anytime you
by long experience in solving similar
need them, for assignments large of
problems for other organizations,
small in any line of business.
.
President and Assistant
price is always work, pa¬
of these
special business problems is to call in
of Montana Power since 1952.
In 1934,
America's
paper
Company,
utility trade association. He was Vice-President of the
Institute since last December when Mr. McAfee succeeded
them.
Let
Mr. Corette succeeds J. W. McAfee, President of the
Union Electric
1
ANA, Calif. —Wm. D.
Co.,
Utilities
Gas & Electric
say
of
Equitable Building,
Eugene Stark
__
n
,
:
Busby, President, Pennsylvania Power & Light
D. C. Cook, Vice-President, American Electric Power
Co., Inc., New York, N. Y.
peoples
of the world have dignity and decency:
in their relationships with others
in proportion to
the degree to
which they have been able to hold
to democratic principles. Progress,
in its broadest human sense, has
been greatest in those countries
where reason prevails over force,
where the general welfare is para-
J. K.
the staff
(Special to, The Financial Chronicle)
King
:
DENVER,Colo—Donald M.Belt
and Glenn A. Allred have
Wm. D. Greschner Co.
mem-
Co., Allentown, Pa.
system. It takes but a
thought to realize that.,
maintained
,•
•
Two With Purvis
(Special to The Financial CNRonicle)
have opened an office at 5435 At¬
lantic Avenue to engage in a se¬
tors, with terms expiring in 1961, are:
»
opinion, a close:
tie between understanding, of. the /
issues and good citizenship.
And
there exists an abiding relation¬
ship betwen good citizenship and
improvement in our social and
my
Director of the
of the Endowment Foundation of Montana State Univer¬
(Special to the Financial Chronicle)
Mas s.,
,Y§
Institute's
a
.••{
,
organizations
Minneapolis, a Director of the
Electric Companies, 'and a Trustee
Akers & Hicks Open
bers of the Edison Electric
-v
:
and civic
States, Mr. Corette is
curities business.
j. e. Corette
game
T'.;
Federal Reserve Bank of
Greschner
,
V,*-
Newly Elected Directors
com- ;
intimate way.
an
'■
Extremely active in business
made at the clos¬
June ■ 9-11.
.
means
rural electrification during the
on
.
new
.
.i
•
Vice-Presi¬
ing session of the Institute's
26th Annual Convention,
:
■
a member of the United States Chamber?of
Commerce and a past Director of the National Association
of Manufacturers.
r
Minneapolis,
p a n y,;
.
forr. the
period.
.
Edison Electric
civic and social circles their voices
working party
For
a
i
complete outline of the services
mite for our booklet,
11The Inside Story of Outside Help."
Address:Ebasco Services Incorporated,
Ebasco offers,
Dept. V, Two Rector St., Neu> York 6,
t EBASCO y*!
N.Y
^
V
s
NEW YORK
•
V'-:-
5
"
I
4
CHICA60
DALLAS*PORTLAND, ORE.
SAN FRANCISCO •
WASHINGTON. 0.C»
52
The Commercial and Financial Chronicle
(2764)
ings
only the setting of maximums and
minimums on the various stock
items. Does the inventory control
tins. Don't you agree that this is system in your company recognize
an essential step in making your
such factors as the cost, of carrytop management "tops"? Here are ing material, of processing an
a few examples of modern methorder, of economical order quanods used by all too few compa- tities, of obsolete material stocks,
you are the chief executive officer of your company, you may
want to guide your staff in doing
'Aies
and other costs?
no
given, they
are
names
company
While
costs.
reduce
to
jn
readily available.
are
0ne
1
three
with
company
years of real inventory control behind it, there has been an adjusted
are
,
contribute greatly to over-all cornimplementing
price decrease in inventory value pany efficiency.
'
Machine Records and Work
of $300,000, or 18%, with approxi-
,
Centralized billing on machines
The question may well be raised
as to whether we need much more
standardization industry-wise. We
rnately another $500,000, or onenow quita general, but it is-onlythird," reduction
in *- capitalized
recently that machine posting of stock costs.
This represents an suffer from the tremendous, vacash records, at centralized'oca- annual saving of $130,000 in car.riety
of
engineering
practices
tioqs has been developed. It mech- rying charges alone, despite the throughout our industry, some of
anizes one of our most tedious fact that 1957 disbursements were which must be unnecessary. • Let
4s
.
routines, that of maintaining cur-
$ii/2 million above those of 1954.
us
economic
ni™
Aoi Kit "nnctinir
Sntrnitma
S
fvlnn«nr
-
o-
for
nrrnnn
Ono
t«
com
planning system expansion
.dispatch computer
load dispatching tool first we naturally utilize to the greatest
came into use - four; years ago. possible extent the present plant
since that time about 15 have investment of over $37 billion; so
as
m
S witK nhnS'
mechanical
a
^n ooo
tric c0mp£lmes- Thls; e(lulPment| weighted very heavily when
iwith. ability to take anto account
bus bar costs, transmission losses,
i flS nnm" and tie-line deviations, saves
finn nno pii<dnmer*
money and simplifies the work of
nf
load
estimates annual savi
thfs
$
g
least $50,000 with a
possibility of substantially more.
of
ings
at
Without
to
with
the
In
it.
along
humorous but
workers
office
of
the
and
inordinately
grow
number
the
control
adequate
office work continues
of
volume
aLaw."0Pthe*
to fill the time available for
as
its
author
"Work expands
states it this way,
so
completion."
One
»-»F
the
problem of
the last
system of which we know,
estimates annual savings that will
the investment in one-and-
repay
a-half years.;
Here
become something of an art. Using
*
utility
the
large metro¬
a
its
reduced
has
personnel by one-seventh
a 10% increase in work
work
variety
do-it-yourself
a
Northeastern
a
indicated
could be done by
reduction.
in
26 people were
which
in
studied
of
measurement
clerical section of
that
the
work
20 people, a 24%
The work force
is
al¬
ready down to 22, with a substan¬
tial improvement in morale because most people like to be fully
loaded with work.
normally found only with newer
equipment. The result was a re„
tion.
The reduction
by transfer, so that no
discharged.
Imminent
retirements of two
people will
complete the personnel leducdion.
was
Vn'
Costs
* Richard
i
j
u
Neuschel
So
Voi
S
associated with
Mc-
a
1
•,
work increase of
leader in its indus¬
try, with a sound long-term earn¬
ings record and a reputation for
being well managed. Then
he
made this striking statement, "It
has been my experience and that
of my associates that there are
a
companies of
do not. have
any
size which
"
f
.iW ^.'f.
their overhead costs."
not
same
we
cannot
have
in
come
the
20
ahead of us. In planning
future
systems,
therefore,
the
weighting might well shift toward
years
the
facilities.
new
Here's
just
in
example
one
our
million
sta-
the
office work.
Inventory Control and Dispatch
Computers
Inventory
control
is
The other
example is that engi-
^
fcmrem-
turbine heat rates in order to opthe
timize
turbine
overhauls.
These techniques not
only minimize the possibility of
error
scheduling
of
but also release skilled tech¬
nical manpower for other work.
Another
means
of cost reduction
from objective
comes
study of the
best number of districts and divi-
sions, the best boundary lines for
them, and the best location of
centers and regional head-
quarters. One company, as a result of thorough study, combined
three
built
former
a
districts
modern,
into
one,
centrally located
district service center, and saved
a
industry spends
a year.
transformers, we still J!i~J a 1
find " large
"*
number of voltage ratings in use
for
terns of essentially the same volt-
vide
tremendous savings to the
a
industry.
If
roughly
varieties
let
and stocked
needs
our
today to meet
to be held constant
are
alone
decreased, then now is
the time to do something about it.
This is just one example of a chal¬
sax-inac
AitW
r
"
tory
to
as
make
use
substantial
savings. And
standards can help, too.
other
A stud>' showed that
a
par-
ber of different types of distribu-
tricts by one each, without
hurt
ing services to customers. The
changes were conservatively esti¬
mated
of
to result in
$187,000
per
a
year
net
decrease
in operating
cms
savings
transformers
as
purchasing,
/
investment
well
Some
can
utility
companies
benefit greatly by improving their
engineering
down
and
capital
contribute sub¬
stantially to operations improve¬
ment.
We should have open minds and
should be alert to recognize sound¬
ly
based
to
embrace
time.
For
engineering trends and
them
at
the
proper
example, the practica-
other
in
warehousing,
In the
to
and
better
methods
Better meth¬
involve
spent.
present
ment
better
results
for
money
In addition to the everneed for good manage¬
to
help
assure
this,
there
basic attitudes and prac¬
tices that make for better results
arc
some
and that
should
be given
serious
consideration.
In
the
commercial
trial sales fields
use
can
be
and
indus-
greater'"beneficial
made
of
such
mass-
effect
and
turn
trade
allies
public
%'i;
,
those
for
of
-
ever been
industry,
who
us
have
It's
longer
no
,
a
tric companies to
than
more
merely
industrial
who
will
be
the
at
helm
de¬
Caldwell
Company Formed
Richard
ing in
Richards is engag¬
securities business from
a
offices
M.
60
at
Sutton
Place, New
For example, it may: York City, under the firm
call for a broader
approach to of Caldwell Company.
make the area a better place in
velopment.
which to work and play
and raise
That, in turn, calls
for active community betterment
r^Vith
one's family.
utility leadership to provide
city
beautification,
youth
pro¬
grams, cultural and recreational
facilities, better municipal serv¬
ices, good land use planning, and
Baumoel
do
best
buiid
to
its
business
in all major markets and to make
its service
attractive to
area more
"Work
basic
BEVERLY HILLS,
Calif. —
Garry Hochman is now connected
with H. Carroll & Co., 324 North
Camden Drive.
industry.
simplification,"
ideas of
common
of
ways
the
concept of
by the
sense
Fabian Adds
(.Special to T
BEVERLY
doing
work."
the
philosophy is that
always a better way and
systematic search for better
a
by those doing the work is
ways
bound
to be more fruitful
than
the
was
as
one year.
closing, let
me,
before me, emphasize
and inefficiencies that
losses
result from
our
another
saving
in
our
entire
the
to
benefit
of
Assuming
200
the eligible base,
as
EEI has almost universal
support,
with 94%
of companies and
of
represented in
meters
NAEC
has
but
&
Company,
(Special to The Financial Chronicle)
BEVERLY
F.
Walsh,
HILLS, Calif.—John
is now affiliated
Co., 9680 Santa
Jr.
with H. Hentz &
Monica
Boulevard.
New Westheimer Branch
GREENSBURG, I nd. — West¬
Company has opened a
branch
office
in
the
Murphy
heimer &
Building under
of
George
Redelman
F.
the management
Redelman.
Mr.
formerly conducted his
in
business
investment
own
Greensburg.
56%
95%
it.
Joseph W. Davis, Jr.
V.-P.
our
industry.
companies
HILLS, Calif.—John
Fabian
of
divisions and from
non-participation in, or luke¬
support of,
organizations
dedicated
staff
a
approach. Through
training one electric com¬
estimates a saving of $2.58
spent;
Staff
With H. Hentz & Co.
hit-or-miss
such
to
Financial Chronicle)
9500 Santa Monica Boulevard.
Its
there is
ie
W. Charleville has been added to
man
underlying
that
Merrill
(Special to Tue Financial Chronicle)
the job to find easier and bet¬
ter
with
now
)
Sheldon
Lynch, Pierce, Fenner & Smith,
216 Superior Avenue, Northeast.
"better
methods," "methods improve¬
ment," or whatever name is given
to training company personnel in
of
is
—
Joins H. Carroll Co.
Top management can't be "tops"
without carefully studying what it
use
Merrill Lynch
CLEVELAND, Ohio
the like.
the
name
(Spt-cial to The Financial Chronicle
with
can
of
industry when the first 100
years roll around in 1979. } What
we do today Will determine how
confidently they can say then,
"Power Is Our Business."
v
pur
But
of companies
•.
ST.
seph
elected
&
Bieder Co.
of
PETERSBURG, Fla. — Jo¬
W. Davis, Jr. has bee n
a
Vice-President of Bieder
Company, 3006 Central Avenue,
members of the
Philadelphia-Bal¬
timore Stock Exchange.
representing 78% of meters; ECAP
56%
of
of meters;
companies with
and PIP, 35%.
62%
of
Wm. P. Hoffman Admits
com¬
Wm.
panies with 50%? of meters.
It
is
not
suggested
that
every
company should be in every one
of
these
organizations but that
this subject deserves careful re¬
change,
F.
ren
Certainly if all these groups
had membership as representative
as that of EEI,
they could do more
effective
their
work
charges
and
as
could
Where
membership is appropriate, sup¬
port of these organizations is a
two-way street.
Benefits accrue
not only to the industry but to
to
inform,
to
inspire, and to
mo¬
Hoffman
&
Ill
Co.,
on
June 2 admitted War¬
Winter
to
partnership.
Two With Fallon
(Special to The Financial Chronicle)
L6S
reduce
well.
P.
Broadway, New York City, mem¬
bers of the American Stock Ex¬
view.
selling devices as conducting do- the individual companies as well.
it-yourself courses for personnel Participation puts management in
of customers and trade aUies. a better position to intelligently
These sales aids have a big lever- direct company affairs and help
age
make
can
management- responsibilities now
for th ose who will follow us
promoting Live Better Electrically
on an industry-wide basis.
ods may
involve cost increase and
frequently do—but certainly they
what
challenging than it has
the history of our
~ and
has
marketing field it's diffi¬
associate
with cost reduction.
Improved Engineering
as
in
cleiical costs,1
cult
expense.
in
of our
in
warm
+h
0ne company has done a magHere s another al0no the same nificent job in reducing the num-
one
utility management more stimu¬
lating, more exciting, and more
: both
supporting the proposal that
dynamic leadership in
like others
mandapossible
made
and
That's
-
to
lenging
opportunity
to
reduce pany
through a bold but realistic for each dollar
estimates that its
approach to standardization.
Within many companies, engi- high as $1 million
neering* standards carefully preAnd now before
pared, kept up to date, adequately
disseminated,
by
great¬
- an d-
costs
another
trans-
must be manufac-
formers which
tured
different
600
distribution
of
recognized
'
Light, Better Sight programs, and
on
the
be
opportunities and
greatest challenges.
Better
the
of
ef¬
our
as one of our
est
fine HOUSElocally, to par¬
use
business and
°VS $^00,CO0+]a yea1r'
bility of employing steam at
all electric comolni« h=v^w super-cnticai pressures of the orthey caU inveSorv control
al
dfr °J t°°° 5Sl
1150° F has
though mS taCwf'ftt already been demonstrated. Arecent study by one manufacturer
field
market; with
increasing
should
ment
management
operating
costs
savings in
,
to having an organized
to the home lighting
approach
of
arid
ficiency and that its accomplish¬
the total number wide standardization of a single cost reduction, is an important
personnel required primary feeder voltage somewhere means of improving efficiency. It
remains the same.
between 22 and 35 kv would pro- has been defined as "the organized
of
"" engineering. Proper
overlook
opportunities for cost
fertile
will
1973
in spite of almost dou- age class but of;slightly differing
station capacity from 264 operating voltage levels. Industry-
'!??' 111 standards and design hold
Whether or
this quotation is applicable to
utilities,
Based on forecasts of our
years.
ticular company could reduce the tion transformers it purchases
?! number of divisions and of dis- from 50 to only seven, with obvi-
He stated that each of these
companies is
few
made in the past 20
was
ment
ticipating in the Medallion Homes
program,
to that
should be
fully aware of the
importance of operations improve¬
to 486 mw,
lin0,
S
ini'
25%.
?'
r
JL ^
n
units at the
new
:earned^out through riormal service
attrition or
one
vestment
^
was
n
examples
ployed electronic computation of
utility
shows that about
But history
three-fourths of present plant in-
While subof a rather complete centralized stantial standardization progress
information system of the kind has been made 111 distribution
mw
load.
Rough
Investment Projections
older portion of a power station, $200
"
"
applying
ment techniques,
office
facilities.
new
{he installation, in the field in which
is
wnr^m^i^re1 iWthe
office-work-measure
™ivw nffire
despite
other
two
are
aie i*p uiam
^
employing automation techniques.
of two
politan
planning
ssst^ rraar^ ss&msssaes
T-
in
A company
are
saves
.
to
answer
the
program
we
answer
late your own obj ective appraisal.
The crux of the matter is that we
to
calendar,
"tops"?
have not given you
question. At
most we can hope to have
pro¬
vided a partial check list to stimu¬
the
rarity for elec¬
have area devel¬
be opment programs to encourage
we industry to build in their service
areas.
But not all companies have
yet realized that area development
may
properly encompass much
instaU at least $400,000 per year; £™wth, we can expect that about
th*s devic?'. ^?tes that 11 three-fourths of the investment in
One
"Parkinson's
dispatcher.
>; having over 3,300 megawatts of
steam capacity, the first system to
method, expects annual sav-
to
tend
facilities
existing
POWER
Is your top management
Certainly
EEI assume
consider this further;
In
been installed or ordered by elec-
rlnims^ savins for its
?ncW ^L+fiy^ fn iQ^7
'fSf
coordinated
NEMA
^
Measurement
.
tivate company representatives
working Nwith- these organizations.
and
customer
employees
into
possible from further, in¬ salesmen for us.
creases in pressure and tempera¬
In
the
residential
sales field
ture up to 10,000 psi and 1450"
greater progress is now being
F, respectively. It is not suggested made than ever before in coordi¬
that you should adopt these ideas nated selling by all branches of
but, rather, that they be studied our industry. But many of us
as to their suitability for your haven't' yet taken advantage of
situation. Also, in this " country the benefits of pulling together
345 kv transmission's already a and of using plans, programs, and
well accomplished fact and 500 kv materials carefully developed and
is under test. Whether and when packaged for our use and avail¬
to go to extra high voltage trans- able at much lower cost than any
mission are matters for very care- partial substitutes we could conful consideration. Engineering ad- trive
ourselves.
To
be
"tops,"
management
should
give
vances such as these, if adopted sales
careful thought to using the EEIat the right time and if applicable,
indicates that significant fuel say¬
Continued from page 31
Thursday, June 19, 1958
:
.
.
Calif.1-Kent
ANGELES,
Peterson & E. George
now
with
James
L.
Triphon are
Fallon
Co.,
7805 Sunset Boulevard.
Joins Merrill
Lynch
(Special to The Financial Chronicle)
ANGELES, Cal.—Eichard
Ryan has joined the staff of
Merrill Lynch, Pierce, Fenner &
Smith, 523 West Sixth Street.
LOS
E.
187
Volume
Number 5752
.
.
The Commercial and
.
Financial Chronicle
(2765)
Continued from page 19
ant
results.
that
would
The Place of Public Relations
Neither
these
have
ventive
arisen
sure
the
were
pre¬
not
been
put
In
terms of large
groups and
long periods of time benefits
over
s.
„
Second, it is important to
explain.
!
know?.'
Then, out of the blue
telegram from
,
cusing
Let People Know and Explain
Even when we know
will have
a
action.; Doing
a good job in the
possible is not enough.
best way
A
deed
good
for itself.
beaten path,to the
better
hides
-mousetrap
light
his
light.
necessarily
There is no
door
of
builder
.
under
the
It
is
there
: :
important
be
:
,
,1,..
v
the
case
giving
they
*
the
of
tele¬
failure
our
As
the
is
:
that
public
(to us) benefits of a General
Motors plant. We overlooked the
fact
thatV "to
" prospective
our
>
to
be
to
prepared
boats.
We
must
man
call
the
life¬
attention
to
neighbors there were certain ob¬ the danger of running aground.
vious (to them) disadvantages.
Because we have no psychoIt is important to let people sonic
depth finders with which to
know, to explain, even when a, detect the submerged rocks and
contemplated, action is sure to sandbars of public misunderstand¬
have a bad public reaction.
We ing that may lie ahead, this calls
have found to
don't
we
down
of
our
•
the
union
been
or
thinks
are
but
you
do
what
and
from
the
public
subscribing to this rather cynical
the substance.. And if the shadow
many
shall
we
be
reflected
say—oblique
that
off
surface—
is
may
It's like those mirrors in the fun
house.
"Business
prudence" be¬
comes
"capitalistic greed"; "en¬
terprise" changes to "aggression";
"efficiency" distorts to "ruthlessness."
Qualities you had always
virtues suddenly are
considered
made
to
sum
up
doing
a
good
a
say:
the
public
good job, do¬
(beginning
de¬
cision) and seeing to it that peo¬
ple are properly aware of the job
done by means of a good Public
the
way
initial management
Relations activity.
That's a pretty
In
long
decisions
sound
and
out
Public
and
effectively
implemented by
(with a
Relations
capital "P" and
a
capital "R").
relations with the (public are good?
Public Relations in its positive
could
sense
available—he de¬
of
sort
some
activity canexclusively by
'IK
the people
puWlcalshould lHn a%ersina1thn
S
opin¬ person-to-person basis
.
In
cent
perhaps
very
Our representatives in the field
serve
as
effective listening posts
the
their respective communities.
Their reports are valuable inuicators of what is
developing in the
of
rase
the
.
„
.
_
or
against
the
with
,/
far more
a
is P^y because, of cer-;.
taln fundamental differences; be-
^ and
Compared
:
.
1.
^0/
Direct Contact With Public ;/ .;
:
'
General Motors has little;
contact with the
nets—as
with
elbows
users
of its
We
customers.
direct
prod-"
do
who
customers
How does
may
one
know when one's
Now, I would like to carry an¬
load of coals to Newcastle
other
by telling you about several pro¬
jection techniques (I can talk the
language too) we have found use¬
ful in our public relations activity.
these
labeled
possibly
I
because
be likened
to preven¬
layed his acceptance. Two months
tive medicine.
later he still hadn't accepted be¬
pomes
we
customers
in contact with
borrowers, but the relationship.:
Gf borrower to lender is hardly a,
as
fjrm
enough one to support much
public relations weight. By and
neighbor. This is largely accomplished by virtue of the fact that
our
people themselves are good
neighbors. Several years ago we
teeth to have available your contacts,
even
your
service
and,
meter-reader contacts.
You are
most to be envied though for your
local executive representation in
of the communities where
do business.
;
Sam Smith is active in civic affairs and service organizations. He
good
a
■<
Many executives also do
a con-
siderable amount of public speak-
ing—which, I
only to the
is
suppose
person
-
to
second
-
so
many
you
,
^
appears on local platforms.
He
helps raise funds for worthy char¬
ities. Inevitably, the
company
Continued
person
on
page
techniques,
fond of
INDUSTRY FINDS
Projection
Techniques
First, "precision."
Described
By precision
precisely the
acting at
right moment. In public relations,
knowing when is almost as im¬
mean
'Ml
"FAMOUS NAMES"
•^^ARE
.
.
.
,
LtViNO^SS'
BETTER
JN
for NEIGHBORS in
tions and preventive medicine at¬
cause
the
material
still
wasn't
ready.
Both Public
Rela¬
portant as knowing what. Bad
timing can all but cancel out the
effects of a good policy.
On the
lead to unpleasother
hand, proper timing can
greatly increase the public im-l
pact ol' any action.
An example of good timing oc¬
curred this spring when we re¬
leased
our
first
quarter profit
figures.
They were down sub¬
stantially from last year, but it
so happened that our two princi¬
pal competitors had put out their
figures a short time before and
they were down even more than
tempt to prevent situations from
arising that
may
ours
were.
contrast
The
made
report appear quite favor¬
Unfortunately for my point,
can't claim that this example
IPALCO-LAND
Relocating and expanding industries find Iowa and
Ipalco-Land
the
a
nation's
Iowa.
60 of
top 500 industries have operations in
That's
reasonable
convenient, comfortable place.
because
and
the
power
is plentiful, taxes
are
supply of competent labor is
ample. Iowa Power and Light Co.
serves
Des Moines
and 235 Central and Southwestern Iowa Communities
our
A year
of PROGRESS and EXPANSION
New records
were
set in
revenues
and income by
Southwestern States Telephone Company
Operating
1956.
revenues
totaled $10,068,390, up 12.7% over
Despite higher operating costs, net income
amounted to $1,265,726,
vious year. 1958 again
a
during 1957.
construction budget
again
will be
up
4.8% over the pre¬
a year
of expansion with
exceeding any previous year. Our
and
plans for the future. Write for a copy without obligation.
Annual Report
tells
you more
about
our progress
able,
I
of
timing
300
MONTGOMERY STREET
•
SAN FRANCISCO, CALIFORNIA
result
on
our
of any
part. We
just lucky.
second technique we have
found it useful to give emphasis
with electric service—and 24 with
gas
service.
more
We'd like to tell
you
about the sound economy
of
were
The
in
to
lift
relations work
is "punch." I mean by that put¬
ting the extra zip into a project
make
our
public
it
out of
it
catch
imagination.
THE SOUTHWESTERN STATES Telephone Company
the
was
deliberate action
to
flair
for
the
our
state.
W
e
Inquiries
are
invited.
will he pleased to send you a
copy
of
our
1957 Annual Report.
the
ordinary and
and
hold
public
Punch
calls
dramatic
for
and
a
the
unusual.
For
are
have
plants; ; And we do meet with
groups at special events and ',
occasions. Our finance subsidiary
neighbors in cities where
am
alliteration—precision, punch and
I
rub
izations.
Even
care.
do too.
you
have
example', you do
V
•
so, the
polling technique is
useful
in
measuring attitude trends and, in made a study and found that about
some cases, for exploring
specific 2,000 GM executives were active
public issues. We use it, and I in some six thousand local organ-
I
'
them busy most of the time.
eral Motors is identified as
The label on the public opinion
poll package should always read,
knew
|
,
for
Service Act?
handle
these
-|aF*c, the only direct, person-toperson
contacts
our
customers
have are with
dealers, who, of.
In our plant cities our conimu- e o u r s
p, are independent, mernity contacts are good. Our people chants.;(•' "V .'•> ; / ! ;
?•
Utility are active in seeing to it that GenPersonally, I would give my'eye
That is why you can always
get expressions of conviction on
non-existent issues—such as: Are
you
you
elective job'with people fhan we
in
the organization to constitute him¬
f
^
tWee"
self
tell
f?
The objec¬
every person
may
furbish the music.
'• For
Isof-
SFcompany.
be kept ever in mind.
tive should be for
in
This
We
it.
electric industry is already doing
,5,
and newsmen reflect
public
and they also affect it.
so
things, because I have noticed the
understand its objectives and
par-
ion
without
superfluous, to
to which all
ticipate in carrying them out.;
we
activities
1 must say I feel it is a,trifle
in the organization
keep tabs oil
what people are
writing and what
reporters are saying. News media
case,
organization in
Relations
jt js the musicians in the orchestra
°r SGC;
largely by the extent
of
value
who
ess is measuied
-
a
people.
an
made
lion
carried
Public
™MiMiWwrv£,
participation of.
an
write the score, supply the instruments and handle the baton—but
as an
on
be
this
of
people
pig
than by any
Because of this,
not
signs avail¬
them all to¬
con-
people
thing.
+hic
mnci(bp
consider
PR As Preventive Medicine
important community
study.
For good and sufficient
reasons—the plant manager had to
determine if any helpful material
be
our
one
ask
can
answers,
important that I would almost go
so far as to say that an organized
staff can accomplish little of last-
A company is
,
by the personal
its
public relations
weather map of public opinion.
v
in¬
volved sentence so let's try again:
Good public relations (with a
small "p" and a small "r") result
carried
gaged in
me
with
ing it in the right
with
good
managers was invited to appear
before a citizens' committee en¬
relations
derive from
Some years ago one of our plant
sible.
paragraphs to
Good
from
most
point I would like to
in one sentence what I
afraid it has taken
reprehen¬
appear
guilty of lack of
this
At
a—
not foursquare, the
well be a quite dis¬
torted image of the substance.
one
result
were
we
imagination.
am
to
get
'
more
other
opinion
attention
13eo*
,
of
other
putting
we
T
I
4
the
I Want/to
I have la
ster.
high -order.
a
on
act of today in terms of the reper¬
cussions of tomorrow. In the case
philosophy, the fact must never-,
theless be accepted that for lis the
shadow often looms larger than
happens
By
Golden
events.
your
tacts
do,
able.
to
kei
weather.
our
of
receive
and after "hia
ot talk ef
mixing with*iris -aUdience.
are
and establishing personal contacts,
15th anrii-:;';-
our
'series
a
j, and
And, filially, the speaker has the
put^opportunity before
afraid
the
Without
are.
of
experience and
compounded with imagination.
Imagination is most important be¬
cause
it is only by the use of
imagination that we can assess the
standpoint of public relations the
important thing is not what you
do
judgment
closing Judgment based
explana¬
that
make
With
third'technique
judged
interpret
public
Motoramas
or herself an
ambassador of
"grass roots" of public opinion.
Other indicators of the public good will.
Standing of a company are opin¬ ;
Generally speaking, we; have
ion
polls.
Public
opinion is a developed a pretty gopd,, dip)omatic service in General Motors—
complex thing,
the /product of
many, often opposing,, influences. right fi'.om the top on down. Many
And polling,itself is a
tricky busi-- :of_ our executives have an instincness. ii For .oner thing dt
assumes ,tive knack; for good public relathat the
Others have learned the
public always has an tions.
opinion.
Unfortunately, the sad value Of. acquiring skill ..in* its
fact is that on many subjects and practice. However, fortunately for
issues many people are opinion- us who make public relations a
less.
Even
more
unfortunately, full-time activity, our executive
they won t admit this to the poll¬ group has other tasks that keep
for
same as ours.
said
to
advantage/ The; audiepee
its
The
a
moment,
clear.
It
so
Our!;
speaker com-
can
questions
2%. milliori
of the invitation to appear before
the
citizens'
committee,
I
am
that if
operation and don't
the union will.b Un¬
tion is seldom the
has
the
announce
an
explain it,
fortunately,
It
sorrow
those that
gether,
has
misrepresentation. It is not enough
not
of
formations and
policy or action can be; misin-v an obligation to chart a course
terpreted. We assumed that Glen through these treacherous shoals
Springs would welcome the obvi¬ and reefs of misinterpretation and
ous
is
than
The
audiproject his personality—which we must assume.is an
He
ence;
for
ran
tool.
publfd
effective
as" an
municates directly with his
and
into
Milestone
call
difficult
as
statistic
kjpag0 and'was vis-,
mor^
versary
however, have certain
barometers, weather vanes, cloud
have
relations
claim
can
that
putting punch mto
think that
we
particular
any
pressures
We
put
If you will permit me to change
metaphors in midstream, it is my
belief
of
almost
as
read "GM Flouts Committee."
to
to.
use
standing
improved
has
relations
the, introduction
models, anq this year we
new
credit.
evidence
the
reply.
We
didn't visualize the local headlines
which
would
of
measure
cast
be
Motors
the years, and
Public
Relations
to
undoubtedly
General
over
been
could
punch
aver¬
We know that the
public
acknowl¬
shadow
construction
upon
explain lest
chance that your
any
an
V'-;•'';v-"■
^-•//,■•.;
have
other
individual,
modesty
may be
a virtue, but there are
few companies that can afford tnis
luxury—for long.
even
We know that
people on the
age live longer than
ac¬
our
own fault;
We had good reasons for
delaying,
but we didn't stop to think what
the
For
not
courtesy of
this
would
who
bushel,
a
;
In
doesn't
speak
of
committee
gram was never made
public, but
if it had, General Motors
would
not have appeared in a
very good
good public reaction,
important to publicize the
is
it
the
edgment,; .Fortunately,
action
our
him
them the
Stressed
.
' "/ynp.- ■
he gat a
;
y
contact
We
show which
a
,ys 111
,
we
100
horsepower.
Diesel
Pcwerama,
r.°
us
our
up Witn the General Motors
evident from both preventive ited
by
medicine
and
,Public
Relations/ persons.
are
-
statisticians told
punch mto
came
,
>
our
abou(t to produce
miJlionth
taken.
;. i
of
ne
results
if
had
measures
be
can
unpleasant
53
example, several years ago
IOWA POWER
AND
LIGHT COMPANY
DES MOINES 3,
IOWA
54
54
The Commercial and
(2766)
Continued from page 53
N. Y. Bond Club
Field Day Prizes
The Place oi Public Relations
is
personified by good, old
What people think of
they think of the
forget that a big country, big
jobs—some of them imperatively
company.
important,
during wartime —
require big companies.
We are
as
far removed from the day of
service interruptions
have a silver lining.
They are
usually the result of an act of
God, not the carelessness of an
assembler
or
mechanic.
And
there's a lot of plus value in those
Even your
Toil
headed:
stories
as
community wagon works as
those of the one-community light¬
ing plant.
blocks
Night" or "Power
of Four States Rush
than
in
front
Christie Cup
Howard
pnes.
think, recognize
I
us,
value of investors.
the
But
the
jnore concerned yvith potential
investors because you must go to
are
the
more often
industry.
markets
papital
than is the
in
case
they assume goes with it. I think
they would be disabused of this
assumption if they knew how
our
j r Physical plant is
impor¬
more
tant in your
industry than in ours.
Your capital invested per worker
big company has to
tread.
Or if they realized what
high visibility we have. Or how
carefully
i| approaching $100,000. Ours is
Somewhere in the area of $15,000.
I By the same token, we have
more
one
sader with
reason why in
perennially popular arrow is
that large companies
drive small companies out of busi¬
the
This is
case em¬
our
team
a
decided
pn
piost projects.
long
ago
that
that big business and little
business
could
be
No indus¬
try has done more to foster small
business
than
ours.
suppliers.
but where Public Relations begins
motive
auto¬
We have helped
We have
dealers.
18,000
Employee Relations leaves off. spawn hundreds of thousands of
We do not have your problem small enterprises—service stations,
of regulation—as yet; and this, I motels, taxicab companies, hot dog
believe, is one reason why an in¬ stands, trucking concerns and so
and
dustry-wide Public Relations ac¬
tivity is important in your case to
supplement the work you are do¬
ing as separate companies. Your
major problems are industry prob¬
lems; ours are company problems.
When X rather rashly agreed to
undertake this assignment, I asked
your able and energetic managing
on.
director for
to
some
material
the electric industry.
a
to
provide a national market for
output. On the other hand,
many perform a service that a big
company could not perform.
We
are seeking to educate the public
their
the
\
It
me
same problem.
would be presumptuous
of
to
discuss the electric indus¬
try's "problem, but you may find
a brief discussion of our problem
of interest.
Thf§ problem of bigness is not a
one.
My predecessor in Gen¬
new
eral
Motors
listed
it
as
the
first
problem he wanted to solve when
he set
up
a
Public Relations
ac¬
tivity in General Motors in 1931.
It is the first one
but
on
my
list too,
I
suspect the only way we
really will solve it is to stop
being successful.
better understanding of how
a
industry functions in this country
as a complicated mosaic of over¬
lapping and interrelated produc¬
ing and distributing teams.
The
be
;
3rd Low Gross—J. Burns,
Co.
&
Inc.; Lee
Trust Company.3rd Low Net
Stack,
Bank; Alfred
Hay den, Stone & Co. \
Net:
Low
1st
C
1
o y
concluding these remarks I
would like to make the perhaps
obvious point that one of the most
important links in this network
•
of teams
ies. It is you
ly made
who have so large¬
possible for man to
it
have machines to do his work for1
him.
us
make further progress
as we
in technology.
I
am
sure
continue
to
!
be
of
beset
by
us
will
in
will bear
marked similiarity to each other.
I am equally sure that in your
case, led by your alert Institute,
many
you
cases
they
will continue to make of each
problem
an
opportunity for im¬
proving still further your relations
with your publics.
I only hope that we can do as
well.
Chemical
ger,
Just
have accepted the
regulated monopoly in
the classical sense, so have we de¬
role
as
of
hide 'the
Instead
benefits
our
is foolish to seek to
fact
we
that
>ve
concentrate
that
have
on
are
big.
positive
resulted
from
growth and progress.
People
seem
to forget that
COLUMBUS, Ohio—Gallagher& Company have opened
Roach
a
branch office at
management
and
in
caster,
suc¬
968
North Hill
Lan^, Cincinnati, Ohio, under the
the
Ohio
ment of Ken
of
Kirn
John
P.
Roach,
Building, Lan¬
under
the
Carpenter.
manage¬
issues
continues
to
liquid issues
goes
unabated.
on
;ofvthe-money market will be deter¬
course
no
Market- Acting Constructively ryJ-V/:" v/vV////
market is
cal
■".* ,*• !!/
Corn Exchange.
2nd
Nine—Robert
Harter, First
Boston Corporation; Jam.es Morri¬
son, First Boston Corporation.
fitting the recently offered
pattern, although at the
secu¬
same
Net Birdies
Most
Hal
—
.'■<■15 income tax
payments,-the settlement of the refunding and new
obligation, •the * fnarket for Treasury issues /has
constructive side,/even: though the range of these
'price movements has not been wide;
'
1
~
•
been
Cook,
Spencer Trask & Co.; Reg Pressprich, G. H. Walker & Co.
w
Net Par
Low
:
William H.
5s
Morton, W. H. Morton & Co., In¬
corporated; Robert R. Krumm, W.
H. Morton & Co., Incorporated.
William
—
•
Th the first place, it takes .time for new issues which
hqve /
just been introduced to ithe market to be digested by ultimate •;
investors.
In the current situation, this appears to be the case
!,
with .respect to the new 3i4% bonds due 1985. Just how
large
"the floating supply of this issuers
•
jecture.
H.
:>
the
on
However,
a subject of considerable
it is. believed .in 'many quarters that it
not be cut-down too much until the future
Drive
-
raising
money
Treasury have been brought out
con-
/.
will
financing plans of the
>
into the open.
more
Morton, W. H. Morton & Co., Inc.
The 2%s of 1965
Nearest
Pin
17th:
1st
To
Fuglestad, Burns Bros. & Denton,t
"
;
•
2nd—John
Sachs
&
of
Fisher, Blyth & Co.
1965, although it
Gross
—
Craig'myle, Craigmyle,
...
M.
R.
Pinney
Net
mistakes
William
Thursday: Low Gross
—
—
Robert
Gardiner,
to
—
Marvin
the
V
-
interest
bigger
have
be
to
rates
Up —Wallace LaTour,
Lynch, Pierce, Fenner &
Smith; Paul Hoffeman.
—
E. J. Dieckman,
Company;
Edus
taken
rates
ease.
•
•
First
of
Michigan
Paul
,
;
Sipp, Sr.,
Corp.;
Werham, Beech Aircraft.
-
-
'
to
Quist,
Glore, Forgan & Co.
increase
There
present,
his
own
Government
in
the
are
many
deficits,
there
the
opinions around that
limit
debt
beyond
or
This indicated uptrend in the Federal debt is being
by most money market observers that interest
however, it
the
on
reserve
side
appears
open market operations by
with the passage of time.
For
as
though
open
of
require¬
larger
or
the
the
operations
market
course of action.most
likely to be followed (by the powers;
be) in the opinion of/certain money market specialists.
way in which future refunding operations and the new
raising ventures of the Treasury are carried out kj going :
only the course of prices for Government obli- •;
gations but also those for corporate as well as the tax-exempt ]
issues. The money market as a whole is
waiting to see what will
happen.
"•
• ■
* '
'
money
to
determine not
.
Executive
New
of
Ontario
while
Montreal has
an¬
head
and
/•
Exchange,
-.
-
brokerage
firm in New York until 1950.
Montreal.
Mr.
ceeded
Mulholland
in
Toronto
"•
will
by
be
will
agent
succeed
Mr.
35
an
Mr.
York,
in New
Adams/
Mulholland, is
a
banker of
years' experience and has been
assistant general manager
1954.
an
R. D.
in
assistant
an
Gordon
V,
agent at New
agency.
now
will succeed Mr. Hobson,
Joseph C. H. Kenner, now
York,
Changes
division
York
Adams,
nounced changes among top exec¬
utives at its New York Agency,
Whitney
Stock
.
/
$300 billion within the next two
Mulholland, assistant gen¬
eral-manager in charge of the
C. Handasye Whitney,
partner
bank's
Ontario
division,
with
in Harris, Upham &
Co., passed headquarters in Toronto, hals been
away June 12th at the age of 80/ appointed
deputy general man¬
Mr. Whitney, a former member of ager of the bank at its head office
York
f
mean
The Bank
Winner Handicap—Albert
New
-
tightened, and prices of theses
bigger Federal
another
Bank of Montreal
Winner—Charles Morse, Hemp¬
conducted
when
v
hill, Noyes & Co.
the
ago
years
many
Haden
TRAP SHOOTING
C. H.
!
The
Stern,
Co.; Arthur Allen, F. S..
—
;
With the present trend
continuing, which seems
and
Central Banks will be known
HORSESHOES
Winners—Paul Sipp, Jr.,
Up
too
and credit conditions • will continue to be
Whether there will be further decreases in
•
that
Smithers & Co.
2%%
money/,
is the
Warren, Spencer Trask & Co.
Runners
the
most
long;and protracted period of decline..
a
ments, the discount rate
Trust
not
were
public debt will rise to
three years.
Runners
Consolation
made
were
existing top of $280 billion.
Levy, Leh¬
Merrill
Bankers
of
consensus
is evident that the Treasury will be
very much of a force
mean
will
Brothers; Enos Curtin.
when
the Government.
TENNIS
Winners
the
'7
to
in the money market in the
coming fiscal year, not only because
of the refunding operations but also because of the new
money
which will have to be raised in order to finance the deficit of
William
Reynolds & Co.
man
be
applies
Treasury Debt at $300 Billion Expected
It
Todd, Kuhn, Loeb & Co.
Net
which
securities went into
Putting Contest—Philip Bartow,
Wood, Struthers & Co.
Low
to
seems
also
.
Pidgeon,
Paine, Webber; Jackson & Curtis.
—
condition
.they went in too heavy for the long-term Treasury obligations
in order to build up earnings.;. These bonds were the first to
&
decline
Low
this
especially among the smaller commercial banks and particularly /
those that have sizable amounts of savings deposits.. These in-*::
stitutions, according to advices, are not inclined at .this time to
extend maturities very much, because
they do not want to repeat
the
Low
extent
market specialists that this short bend, has been very well
taken,
Weinberg, Goldman,
Inc.
Seniors:
lesser
a
■
Co.
3rd—Robert
Quickly Absorbed
Arne
—
office in Montreal.
you
cided that it
future
./■>
its
a
Government'
time ;
looking with more than a weather'eye at the. future.The v
August refunding is becoming "more of a market "factor with the
'L
passage of time, while in the same vein, the deficit nev$ money /
raising operations of the Treasury-is also coming in for attention. /
In spite of the huge financial operation, which involved, the June '
Exchange
Corn
ever
Gallagher Roach Offices
./'i
-it is
Gran¬
many
public relations problems and that
liquid obligation
more
Liquidity Policy
short-term
for
The Government
Bank; William Renchard, Chemi~<
Lauer &
that each
was'
good
a
small measure by the type of financing the Treasury 1
investors are Inclined to stay close to the sidelines /
for the time being awaiting developments. ;v '
/vXl
e,
destined to become
are
has
•
increasingly important supplier
an
to
You
bond
large
1965
does, some
the electric compan¬
are
The
of
'
rities into the general market
Nine—Ike
short
near-term
a
of funds into the niost
the
mined in
•
/
Hanover
interested in
were
demand
the flow
Blyth
Bankers
Evans Morgan,
—
this
2%%
strong
-Because
;
.
However,
payments.
the
(witness the 15th cut this year in commercial paper
rates), and even in spite of the efforts of the Treasury to extend
the maturity of the debt through the' offering of long-term,
bonds,
Hilson,
;
surprise;
a
tax
issues for
■.
Goldman, Sachs & Co.
In
most press¬
talking about long-term, not shortrange* problems—is bigness.
{' In my opinion, your problem
and qurs represent two aspects of
*
product fabricators who are geared
about
even more intrigued, because our
most pressing problem—and I am
"
Many supplier companies could
not exist without the large end-
One of the
ing problem too.
V Your most pressing problem, I
discovered, is the problem of gov¬
ernment encroachment.
I was
John
—
income
15
•'
Co.
pieces he sent me was a booklet
entitled, "Our Most Pressing Prob¬
lem."
I was
intrigued by this
title because, believe it or not,
General Motors has
Net
Low
June
Investors Favor
Wertheim & Co.; John Weinberg,
Inc.
General Motors alone has 26,000
only3 waste time to try to figure
those who
ter.
Longest
Nothing, of course,
further from the truth.
We
Halligan, Cyrus J. Law¬
Sons; Robert Clark, Cal¬
Bullock, Ltd.
2nd
the
maturing June
position in the Treasury-list arid the size of the issue is not con¬
sidered to be a drawback since it is not likely to be reopened
for future financing.
The'11-month 1 V\% certificate appealed to
&
rence
the
of
something of
Par)—
vs.
of
absence
turn-in
-
like oil and water—
are
they don't mix.
would
it
theory
ness;
ployee relations is an activity en¬
tirely separate from Public Rela¬
tions. However, we recognize that
the two are closely linked, and
our
Vice-President in charge of
Employee Relations and I operate
as
arrow.
an
A
employees
more
entire industry.
your
a
target we are for any cru¬
easy a
employees. In fact, General
Motors alone has
thim
,
Surveys have shown us that the
public likes our products and the
things we do but they are dis-?
trustful of our size and the power
you
(Match
refunding operation of the Treasury
$356 million was much better than expected and as first
reported. Despite this favorable showing it is still believed in
some quarters that the cash payout
would have been smaller in'1/
; the
M. Geddes, Clark, Dodge &
Tucker,
gene
Riter' &
Co.; C. Edward. Grafmueller, Pyne, Kendall & Hollis-
weigh
size of a company in relation to
You have the opportunity for_
its services to the consumer.
The
regular
monthly mail contacts
purpose of competition is to bene¬
with your customers. We have to
fit the consumer and not the com¬
make ap effort just; to get the
petitor. So far. as the consumer
names of ours.
is concerned, he benefits more in
1 Let us go a little further in
many cases from competition be¬
analyzing our respective indus¬ tween a few large companies than
tries from
the
public relations from competition, among many
standpoint.
small, weak
of
-
Co.; John C. Maxwell,
Anthony & R. L. Day.
I
Both
The attrition in the June
Net)—Eu¬
(Low
it
big,
grow
to
Governments
on
of only
2nd Low Gross—Wesley Stanger,
better
seem
Cup
throwing
road¬
of successful or¬
which
ganizations
would
Aid."
V
Reporter
By JOHN T. CHIPPENDALE, JR.
DuBois,
:
vin
Rather
"Crews
C.
Candee
the
Through
Companies
Our
Wertheim &
Co!; Albert C. Purkiss, Walston &
Co., Inc.
•
also
what
dramatic
in
serving
the
consumer
necessarily means growth. They
Sam Smith.
him
Thursday, June 19, 1958
.
Outing
June 6, 1958
Ex-Presidents' Cup (Low Gross)
—Allen
cess
.
.
GOLF
In Modem
becomes
—
Fiwncial Chronicle
suc¬
John
A.
Hobson, senior agent at the bank's
Mr.
Hobson
in
•
Adams
the
Mr.
York
New
treal
in
entered
the
He has been senior
1923.
in
since
1955.
since
bank
agent
Mr.
joined the Bank of Mon¬
1922, and has served at
New
York agency
Kenner
has
since 19^3.
spent his
business career of 38 years
New York
agency.
entire
at the
Number 5752
187
Volume
.
.
The Commercial and Financial Chronicle
.
(2767)
Continued from
page
4
will
not
be
enough,
however, to
bring the liquidation
halt.
month, then $700 million, then
$400 million, and 4hen $100 mil¬
lion in March, the latest month
of the new
pjant began' to come into operathis new plant raised
total capacity and thus dropped
operating rates below 85%, in¬
come taxes should have been re¬
duced to stimulate consumer exAs
lion.
pendl.tur.es.V
available.
decline
and
has
other
slowed
well
may
words,
each
have
the
month
stopped
'
The effect of relating fiscal pol¬
(4)
cent of capacity opera¬ advance release shows a sharp rise
would not only moderate thev in April.
%
\
(a) Although data are not yel
swings in capital investment
;
-
wild
available
is prone;
it would also coordinate monetary
flows with real flows. As we be¬
which
to
economy
our
of
lected
real
of money saving.
form
the
as
capital
off,
•
it
make
my own pre¬
estimates
the
lead
From: all
sonable
which rising capital ex¬
penditures had occupied in their
the place
to
downward
Were
late April.
of
•
that
suggest
indicators
this, it
path
seems
rea¬
say
of
that
the
to
me
economy
the
was
risingdisposable income because, of the
fall in taxes.
: Finally*, to bring-this first ques-
halted in either April or May.
My
incomes would be filled by
..
of
advancing in
Later on,
leveled
boom
Research,
liminary
50%
rise in
the
would
by the National Bureau of
Economic
would be forced, through
taxes, to engage in a
sumers
which
possible to •calculate the April
position of the lead indicators se¬
saving
through capital investment, con¬
program
a
gan
guess
is
that
the
low
point
for
,
-
the index of industrial pro¬
duction will be 125 in May. If we
had
monthly figures on
GNP,
iow point would probably
caused by general over-capacity, have been reached in April. •
Now, of course, saying that the
then the cure for the recession is
not more rapid amortization
or% low point has been reached doesn't
necessarily mean that we are off
any other device to stimulate in¬
vestment
directly.
The .cure, is on -a glorious recovery — which
obviously and clearly a rise in brings me to the last question:
consumer
disposable income not How rapid will be the recovery,
associated.with increased
plant if any?-. -
tion
to
a.
close, let
recession
this
that if
me say
has
in
fact
their
been
.
expenditures. Consumers did notsave lis into this recession.
The
'TI©W-Rapid
tlic
Recovery? ~
-
I
have
been
consistently opti¬
mistic "during the postwar period
about the strength and buoyancy
of the economy. The private econ¬
omy has needed very little* help
data available to us deny any such
explanation. Consumers are doing
a good
job at present by reducing
their savings rate below the postwar average.
But there is a limit
the
to how far they can go in this from
government,
and
has
direction.
There are ; only / two ' often performed very well in the
face of government policies which
Ways to get. out of the recession— '
.
one
seemed
is to increase government ex¬
penditures
income.
question in
and
two, there is
mind that
my
tax cut Will
come
I
believe
in-
an
type of recovery.
of the economy.
Bottom Reached in April
let
move
me
May
or
to
on
the
second question—Has the bottom
of the
downturn been reached?
I
think
it
has.
I
would-put
bottom of the recession
in
be
or May.
Here are some of
the items which could be listed to
a
(1) Seasonally adjusted produc¬
without
that
decisive
rather
assistance
Suppose, for instance, that the
Federal
further
Government provides
assistance
ready promised.
of
the
fourth
low points in March
billion annual rate.
in March
seasonally adjusted basis, and
improved somewhat since
have
then.
»..
'
'
al¬
pur¬
goods would rise, from
of this year to
as
also made their bottom
it has
Government
Federal
chases
than
no
This would mean
first
steel, paper, oil, and lumber hit
or April and
have
shown
some
recovery
in
May.
Miscellaneous
carloadings
from
iinmediate future.
the
tion rates in such basic industries
some
government there is little hope of
a strong business recovery in
the
that
support this view:
But I also try to
realist, and an objective an¬
alysis of the present situation
leads inevitably, I think, to the
the
either
April
on a
unsta-
,
conclusion
Now
lo
this confidence in the basic health
no
produce a faster,
more
desirable,
a
more
is. to bilizc, than to stabilize, business
disposable ; activity. I have not lost .any of
more
Of the
designed
other
the
and
consumers-
give
quarter
by
quarter,
about
$3
,
started
the
35%. be¬
1957 figure,'
year
hind the comparable
have steadily gained
on
1957 and
recently have moved ahead of the
1957 figures. The rate of
applica¬
tions for FHA commitments andfor VA appraisal
requests during
April reached an almost unbeliev¬
ably
high figure.
Conventional
residential
mortgage lending is
also running ahead of last
year.
The effect is already being felt in
the lumber
industry where
orders in
been
some
above
new
recent weeks have
the
comparable
1957
construction industry seems to in¬
dicate
area.
action
to
is
ernment
figures
on
construction
awards rose so sharply
April that the 37 state figures
were
released
Usual
48 state total.
in
advance
(3) The amount
of
of
the
decline
in
Jetv orders received by manufac¬
turers
Was
beginning
$900
million
last
in
November
the
first
no
further
stimulate
con¬
spending, consumer pur¬
chases will probably rise about
$5 billion by year end. -1 base
this increase on an equivalent rise
in
disposable
personal
income
stemming from (a) increased pay
rates to the military and post of¬
fice
workers,
(b) extension
of
unemployment payment periods,
(c) continued pay increases under
existing or new union contracts,
and
contract
taken
If
sumer
orders to stocks is also above 1957.
111
additional increase of $1
an
billion from this
figures and the ratio of unfilled
bodge
fourth
(d)
The
and
the effect of rising gov¬
expenditures.
rise
local
of $8 billion in state
government, residential
construction,
and
consumer
ex¬
rate
rate
at
be
than
no
these:
(1)
rate
will
slightly
be
present—I
(2)
to
reason
of
would
There
assume
will
halt in
a
in
normal
in
most
lines.
rate of unemployment
a period
may well
a
extended
so
have adverse effects both
busi¬
on
psychology
and
consumer
psychology. (4) The economy will
be operating about $20 billion be¬
low normal output. That is, every
ness
three
this
a
months
which
by
goes
at
subnormal; rate will constitute
loss
of $5
billion in real goods
services
and
which
would
be
available to the government or to
the public if the economy were
operating at the usual
rate.
•
Tax
."
.
Cut
Would
normal
or
..■%
End
C
Recession
alternative to
The
liquidating inventories. A rise
only $8 billion in final demand
appears to me to be the
second
quarter.
rise
Federal
in
will
mand
(6)
The
O'Neill, registered repr¬
Harris, Upham &
members
the
of
New
Y<5rk
de¬
necessarily
be slow,
only to off¬
and will be sufficient
set
Co.,
future
Government
the effect of declining capital
expenditures.
(7) Even without
tax
cut,
consumer
purchases
rise
slowly
is
GNP
lion
(9)
likely to hit
rate
A
in
the
$435
fourth
the rest
over
Without
(8)
year.
tax
a
$435 bil¬
a
fourth
billion
quarter will
of
cut,
quarter.
in
rate
the
5^2
mean
to
6%
unemployed, and the loss of
$5 billion in real goods and serv¬
ices every three
income
tax
cut
months. (10) An
of
$5-7
billion
would end the recession within
Mrs.
Stock
months, and would increase
both real output and money in¬
comes so
deficit
taxes
ket
that the eventual Federal
would
than
smaller
be
if
cut.
not
are
nose u
weul
^
a
few
Exchange, will discuss mar¬
and
mechanics
investment
techniques
before 40 alumni Of
Institute's Business College
Pace
on
Wednesday, June 18 at 5:30
in the Harris, Upham 99 Fark
p.m.
Evan Ragland Offices
JACKSON,
Miss.
—
Evan
Avenue office.
L.
branch
office
at
East
105
management of J. Tom Lutz,
and at 104 Howard
wood,
|
Street, Green¬
Mississippi
J.
under
A.
Y.
Harry E. Brager is conducting a
Peace
Street, Canton, Mississippi under
the
>
H. E. Brager in N.
Ragland & Co., Inc. has opened a
of
securities business from offices,
West
55
City,
42nd
under
Street, New York
the
firm
of
name
Harry Edward Brager Associates.
Smith.
Metropolitan Inv. Formed
Form
Equalized Estate
WHITE
PLAINS, N. Y.
Equalized
Ltd.
Estate
with offices
formed
at
has
BROOKLYN,
The
—
been
201 Main
Glassman is
N:
X,
Joseph
—
engaging in ^.securi^
ties business from offices at 4401
Thirteenth
Street, to engage in a securities firm
name
Avenue-
the
uhdei*
of Metropolitan Inves¬
tors.
business.
recession
is
are
in
cut
matter of
individual
If income taxes
June,
I
the recession will
a
extended
an
in
cut
a
income tax rates.
believe
be
few months.
a
FINANCIAL HIGHLIGHTS
that
within
over
On the
57
IJNITKI* mTiiurriEs,
assumption of an income tax cut
in
June, my estimate for the
four,th quarter GNP would be $447
billion, a rise of $25 billion above
the first quarter rate.
A. rise of
this magnitude would not bring
unemployment down to normal by
IKCOMFOEATED
would
and
not
fall
back
into
KANSAS
the
about
inflation
c oncerned
term danger of
anyone.
But I do not
long
as
CITY
11, MISSOURI
Increase
Amount
Amount
393,494
9
Dial
Operated
429,941
41
Telephones, End of Year_—
Percent
38
*27
27.5
24.6
34,863
be
Outgoing Toll Messages, Millions
12
curbed through holding output at
low levels for extended periods.
Other Customers, End of Year—
6
believe
that
inflation
can
balanced Fed¬
basically a
problem of money. If it were, we
problem of
budget is
could
balance
a
not
the budget
At
that
the
bottom,
all
budget
of
Total
Telephones
us
can
the less will be the even¬
tual deficit. As a matter of fact,
occurs,
what seems
to me to be the major aspects of
the recession problem:
(1) The
cause
19
$193,809,452
$87,005,946
8
18,499,243
17,135,073
122,308,695
104,141,019
14
18,305,230
16,029,543
$30,009,033
$26,679,137
4
4,334,170
4,153,29?
34,343,203
30,632,434
18
Other Plant,
Total
3,378,440
2,870,047
of
—-
Gross, End of Year
Investment,
Plant
V
Gross,
End of Year-_—
Additions
——
Gross
1—.
Operating Revenues—
j
Net
Income
Available to Parent
present reces¬
development, by
depreciation and business profits,
the current "recession will not be
cured
through devices designed
to
stimulate capital investment.
(4) This recession will be ended,
other' recessions have been, by
i
..
Program,
of the
the
early 1957, of a general over-ca¬
pacity. (2) Although a good case
can be made for long run reform
in the tax
treatment of capital
as
426,349
17
End
Gross,
Now let me sum up
was
464,804
11
Plant,
Other
sion
.1
9
Year
the tax cut.
money
basic
i
12
Telephone
Construction
a
'
Other
Customers, End of Year
standpoint, it seems
to me probable that a $5 billion
tax reduction would actually in¬
crease
Federal revenues by the
end of this year above the level
which would be achieved without
from
and
\
-
32,855
*
tomor¬
know
really be
balanced only by an increase in
the output of the economy, and
the sooner this increase in output
row.
1956
1957
Percent
a
secondary downturn.
I
am
as
seriously
34th & Broadway
603 V. F. W. Building
year-end, but it would place the
economy in a sufficiently strong
position so that we could be sure
the recovery was soundly based
(3) Businessmen cannot be ex¬
pected to increase capital invest¬
that
businessmen are
likely to ment lentil final demand rises
slow down the rate at which they substantially above present levels.
of
*
Pace Institute Alumni
belong to the six
Averred
penditures will improve inven¬
tory-sales
ratios sufficiently so
are
Mrs. O'Neill lo Address
or
(3)
ment, because the Continuance of
high
April
esentative with
There will be considerable danger
of a secondary downward move¬
so
The
appears
Mrs. Rose
the
plant and equip¬
ment expenditures, since
per cent
of capacity operation will still be
for
do not
I
will
adjusted
at
decline
below
(5)
ing point
my
government
are
unemployed.
the
demand.
months
the
guess somewhere between 5% and
6%
final
club, nor the fourth quar¬
ter club. The best bet for the turn¬
for
no
quarter
seasonally
unemployment
lower
May.
therefore
is
on
The
eral
just
billion
billion
beyond what has al¬
ready been indicated.
The
im¬
plications of a $435 billion rate in
the
in
a
$435
assistance
The
be
(2)' The entire construction in-'
State
and
local
government
diistry has shown real strength spending, however, will rise by
during the past month.
Heavy; about' $2 billion, and the encour¬
construction contract a w a r d s
aging news from the residential
which
$435
a
quarter
estimate, based
sufficient
to offset the probable decline in
business capital spending, so that
there would
be no net
upward
effect from
these two spending
would
amount
us
end.
The
A rise of this
forces.
.
quarter,
giving
rise
abrupt bottom of the recession
liquida¬ to have been reached in
output would thus
rise by $13 billion above the
$422
billion rate for the first
year
a
an
mand. National
fourth
adjusted retail
sales hit bittom in March, and the
Seasonally
icy Lo per
tion
to
that
assume
quarter, this
would permit production to ex¬
pand by $5 billion more than the
$8 billion increase in final de¬
en¬
tirely in April.
V;
:
In
we
tion falls from the
$9 billion rate
of the first quarter to a
$4 billion
rate in the fourth
Prospects for Business Recovery
And Moderating the Recession
higher rate-:? .until some
If
55
«
Shares
U.U.I.
Common
Stock
Outstanding, Average
Shares
U.UX
Common
of
U.U.I.
'
*
1,924,030
24
2,189,316
1,760,148
.
Stock
Outstanding, End of Year
Stockholders
'
1,633,46$
18
Common
11
16,138
14,528
—
$1.76
$1.76
4
$1.25
$1.26
36
The Commercial and Financial Chronicle
(2768)
Continued
Coleman, Piedimonte
With B. C.
Bank and Insurance Stocks
Christopher
Coleman
Dainel
and
have
become
asso¬
This Week
fj
,
Recently there was brought out hqrc the deplorable showing
)iof Ihe underwriting division" of a number of the leading fire-
C.
h
Christopher
Co.,, Board
f
o
T r
d
a
casualty insurance companies*
j! matters
e
will be
it
as
the
This issue will put
investment income
that will be considered. '
g,
li
members
'
But first
of
Stock
E
lives
The
the
of
trading
Co.
Barret,
Fitch, North &
&
Co., with
which
the business
as
in which
catastrophe.
a
one
To
In
are
•
Actually,
that
Building,
unaer tne man¬
agement of J. W. Berry Rcid, Jr.,
in
Rocky Mount, N. C. under the
direction of B. T. Vernon, Jr., and
at 521 Boush Street, Norfolk, Va.
under the management of John T.
Brown.
6.23
2.60
2.60
2.76
1.60
tion of angry
1.98
2.00
1.30
1.65
1.59
0.90
3.78
3.84
2.40
2.53
2.63
1.80
Shippers
.
J
Casualty
3.40
3.86
3.58
3.62
1.58
Fid. & Deposit——
4.62
4.65
3.48
2.00
3.61
3.83
1.80
Glens
-
Reinsurance
4.76
i
Hanover
Fire
8.34
_
_
_
Hampshire
River
7.18
4.11
2.00
5.69
2.80
2.71
1.40
2.00
1.90
.
Planning Formed
Felro Plan¬
ning Corporation has been formed
220-39
Seventy-
third Avenue to engage in a secu¬
rities business.
Prov.
Wash,
Paul
Richard Grab Opens
a
fit
H.
securities
40
Grab
is
conducting
business from offices
Exchange Place, New York
name of R.
City, under the firm
13.29
0.60
4.30
4.44
5.26
2.00
^Includes
Fire
any
Association
extras.
of
once
income
5.15
1.85
2.22
BANK LIMITED
Amalgamating National Bank of India Ltd.
and Grindlays Bank Ltd.
Head Office:
26 BISIIOPSGATE,
plus
S.W.1
54 PARLIAMENT STREET,
S.W.1
Bankers to the Government in
;
Aden, kenya,
1.20
provision
i'or
preferred
-^Formerly
dividend.
evident not only that in
higher than
that
for
of the present dividend rates
a
large majority of
1956,
was
but
also
indeed
insurance company would be in the neighborhood of 20%, as only
15% of its receipts of dividends from other domestic corporations
1957 EARNINGS COMPARISON
FIRE & CASUALTY
whose portfolio was heavy, relatively, in
as St. Paul Fire & Marine, with a big
One, such
and municipal
tax-exempts, would find itself in a
favored
position.
But by-and-large fire-casualty Federal tax
exposure is not as great as that of most corporations. And, under
present underwriting conditions, of course, many of them will
avoid Federal tax, as underwriting losses will be of sufficient size
offset
to
investment income tax
exposure
on
Request
Now With A. G. Becker
entirely.
With New York Hanseatic
(Special to The Financial Chronicle)
Laird, Bissell & Meeds
Members New York Stock Exchange
Members American Stock Exchange
420 BROADWAY,
NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
Bell
Teletype—NY 1-1248-49
(L. A. Gibbs,
Manager Trading Dept.)
Specialists
in
Bank
Stocks
CHICAGO,
111.
—
La
(Special to The Financial Chronicle)
wren ce
BOSTON,
Novak has become connected with
A.
G. Becker &
120
South
bers
west
of
La
the
Stock
formerly
Co., Incorporated,
Street, mem¬
Salle
New
York
and
Mass.
—
New York Hanseatic
84
State
Street. He
Eugene
J.
Corporation,
was
formerly
for many years with C. J. Devinc
& Co.
oil
one
the
may
in the vicinity of
it is still
number
citizens
invested
money
shares in
own
company,
that |
States
operations
who
in
of
now
foreign
be somewhere
2,000,000.
In the clamor
against imports it
has been the practice to imply that
virtually all of the Americanowned foreign production is pe¬
culiarly the province of "the big
internationals," namely, Gulf
Corporation, Socony Mobil Oil
Company, Standard Oil Company
of California, Standard Oil Com¬
pany (New Jersey) and The Texas
Company. This is not true as of
Oil
the present.
as
a
of
For the United States
nation this is
affairs
a
because
fortunate state
it
means
that
while the center of the free world's
petroleum
influence
nant
in Egypt, the
Sea and the Persian
Red
Gulf; and the
importance of the^ area was es¬
sentially due to the fact that it lay
athwart the route of empire trade
and travel.
But today, of
course,
the prime factor of importance is
the
region's oil production and
reserves.
The
Middle
East
World
:
V
political
.
changes
following
War
were
in
the
the
first
marked.
very
With the dissolution of the Turk¬
ish empire, the creation of inde¬
pendent states and mandated ter¬
ritories
broke
number
the
second
dated
the
region
distinct
of
Warld
became
areas
countries and there
the
of
political
into
units.
War
a
After
the
man¬
independent
little left
was
aspects
of
pre-
World War I days. 1
The small Arab Sheikhdoms in
the Persian Gulf changed
their
political relationships least. These
the
are
with
units
Great
have
that
Britain
treaties
under
which
they enjoy independence of their
big neighbors
British protected
world,
as
states. Eastward of the Arab
Persia
remained
Pakistan
same
independent and
created
was
the
much
but India became
in¬
an
as
dependent state after withdrawal
of the British from India. All these
changes
of
the
and
and for
powers,
another
or
influence
the
weakened
European
reason
the
rulers
the Middle
Eastern countries felt themselves
governments
of
stronger in their sovereign rights
than ever befoie in modern times,
and
acted
accordingly.
Middle East Trouble Blamed
Israel
on,
The establishment of the Jewish
brought
situation that has for ten
increasingly
an
per¬
plexing disturbance, and no doubt
the greatest single cause of inter¬
national
trouble
in
the Middle
Nasser's
probably
been greatly helped by the ArabIsraeli conflict.
The
joining of
Egypt and Syria created a block
East.
The
of
progress
revolutionary course has
of
"have-not" Arab
the so-called
countries, sometimes also
to
as
referred
the transit countries because
the Middle East oil moving to
Eu¬
America passes
through those countries in tankers
rope
North
and
revolutionary
government has
been more than a little bit ob¬
jectionable to the governments of
the Kingdoms of Iraq and Jordan,
or
The
pipelines.
aspect of Nasser's
and these countries have
federation in
set up a
to
from en¬
The King of Saudi
a
defensive more
keep Nasser's revolution
shifts away from
gulfing them.
States, the supply of
Arabia, apparently hesitating to
will, to a very
align his country with Iraq and
satisfactory degree, remain in the
J ordan,
seems
to have been
hands of companies owned in the
blocked by Nasser's blasts from
United States, directed from the
any immediate action one way or
United States, and whose longthe
power
United
term
Ryall has become associated with
Mid¬
Exchanges. He was
Straus, Blosser &
with
McDowell.
East has repeatedly been
great international importance.
In modern times, and
particularly
in the heyday of the British Em¬
pire, the British exercised domi¬
of
been
world
INSURANCE STOCKS
Bulletin
its geographical
relationships,1 the
Middle
United
five
is
one
of
historical
years
possible
Speaking iri general terms, probably an average tax rate that
applicable to the investment income of a fire or casualty
state
operations
10,000
people who
than
far as the ratio of dividend payout to investment income is
concerned; but now, with underwriting conditions what they are,
managements are unusually frugal because of the need to conserve
at a time of bad going for the companies. Also, the accompanying
figures are before-taxes.
in
domestic
in
virtue
By
and
a
have
stake
employees
of
increasing significance to the
United States, not only as a source
of petroleum, but as an area of in¬
creasing U. S. capital investment
and, of course, it continues to be
a
focal point in the interplay of
world power politics.
about
United
corporate bonds.
of 547,647
goes
become
state of Israel in Palestine
more
the
comfortable.
less, taxwise, than-
NORTHERN AND SOUTHERN RHODESIA,
a
16
additional
an
among
cases
that
ADEN, SOMALrLAND PROTECTORATE,
Branches in;
by
family
time
as
inevitably
determinate amount of duplication
-tACtcr
TANGANYIKA, ZANZIBAR, UGANDA,
*®IA, PAKISTAN, CEYLON, BURMA, KENYA,
are
And
come.
may
2,696,911 shareholders, and, though
this
figure
represents
an
in¬
subject to the 52% corporation rate; with other income (bond
interest, etc.) being more-or-less fully taxed. Much, naturally,
depends on the investment philosophy of the management: a unit
with a heavy proportionate commitment in equities would suffer
mhanda, ZANZIBAR * SOMALILAND protector*®
compa¬
owned
or
it
States nationals employed in for¬
eign activity. They are owned by
would be
13 ST. JAMES'S SQUARE,
total
a
Normally insurance companies tend to be somewhat conservative
LONDON, E.CJ
London Branches ;
'
and
engaged
1.00
2.11
sent
so
GRINDLAYS
either
are
partnerships or
individuals. Of the 190, one hun¬
dred twenty-two are also domestic
operators. Altogether they repre¬
rhiladclpliia.
was
smaller
shareholders
owned,
2.00
1.77
—
proportions.
to
years
one
4.75
G
——
that
2.00
4.86
-
——————
Westchester
coverage
AND
2.60
13.21
-
United States Fire
It is at
OVERSEAS
1.20
3.79
Accident
United States F. &
1957
i
2.02
3.37
in¬
—
100
nies
2.20
2.06
Surety
security Insurance
Springfield Fire
H. Grab & Co.
NATIONAL
4.37
impressive
few
12.49
Fire—
Seaboard
Standard
Richard
3.00
4.23
and
technology
production has now
corporations,
2.40
6.01
f2.47
——
'^Reliance
St.
3.80
5.82
——
"A
companies owned in the
United States actively engaged in
foreign exploration or production.
Today there are at least 190 such
companies, or individuals, active
abroad. The figure of 190 includes
74 large or sizable publicly-owned
2.00
3.95
3.69
Insurance
•
28
were
*
Pacific Insurance
Phoenix
^
At the end of World War II there
1.60
3.76
2.61
________
3.87
5.35
————
—
•
energy
foreign
reached
2.50
4.00
'
Northern Insurance
4.95
6.12
—
into
2.00
3.76
_———_
■*> ■
■
This movement of United States
capital,
3.00
3.68
•
3.86
—
_
'
Shift to Foreign Production v,.
2.00
3.44
Bonding
Amsterdam
New
3.76
,
1.00
4.72
Fire
Nati onal Union
) "
1.50
7.78
Massachusetts
New
2.60
3.51
3.54
Insurance Co. North America
foreign oil into the United States,
others, with perhaps more sagacity
and
self-reliance,
have
quietly
beem shifting part of their opera¬
tions to foreign lands.
>
'2.00
3.36
—
Home Insurance
Merchants
5.34
2.47 h
Insurance
Hartford
,
3.51
Falls
Great American—
""
degree
of
domestic
self-suffi¬
ciency, demanding legislative
restriction on the importation of
4.00
3.43
on
0.90
Insurance
contradiction. While
segments of the industry go
clinging to a belief in a high
some
2.00
1.55
now.
1.40
Insurance
North
at
we
years
'6.02
Federal
R. S. Dickson Branches
offices
that
is
hence, and that is
precisely why these factors of
diminishing domestic reserves and
increasing costs of domestic pro¬
duction should be major deter¬
minants
in the policies we
lay
do
Present
Fidelity Phenix
CHARLOTTE, N. C. — R. S.
Dickson & Company, Incorporated
has
opened
three
new
branch
with
it
today for
expect to
down, and the decisions we make
Instead, however, we have a
domestic oil industry in a condi¬
General
—
five
plans
$2.70
Fireman's Fund
BAYSIDE, N. Y.
which
requires
moves
now
make
we
whatever
''Dividend
'1957
Continental
Company in Laguna Beach.
Felro
today.
with
speed
the
world
the
of
problems
$8.83
1956
Continental
formerly Beverly Hills Man¬
ager for Sutro & Co.
Mr. Mar¬
shall represented First California
Greensboro, N. C.
Investment Income
Boston Insurance
was
offices: In the Piedmont
the
$8.08
Bankers &
Wilshire Boulevard. Mr. Fox
3115
to
tion
American Surety
Co.,
&
as
American Insurance
Eastman
with
Securities
to
Agricultural
Fox and William F. Marshall have
associated
'
f3
v..
Aetna Casualty
Aetna Insurance
ANGELES, Calif.—Austin
Union
Ml-
-■■■■"■
:
:
(Special to The Financial Chronicle)
Dillon,
there is a
shrug off such con¬
"long-term" factors
quarters
many
that have relatively little applica¬
As is
.■
■
Eastman Dillon Co.
become
^
r
Problem for Tomorrow
tendency
Contribute to growth.
LOS
a
siderations
generally known, cash dividends of fire and
casualty insurance companies are in almost all cases derived
from the income that comes from investments.
Underwriting
profits, wften they are present, are retained in the business and
he had been
Fox & Marshall With
everyone—
lawmakers,
men,
Not
a
we
J
27
this
rate
to
ing reliance on foreign oil.
has made
season
middle west
tne
be:'clear
—
windstorm has to pack unusual devastation.
conformed fully with this requirement.
If the
dividend rates.
O. Peet
associated for many years.
recent
of
at
years
arid public
alike
that we cannot continue
this course long withouL increas¬
oil
on
We give here the per share income from investments of the
customary list of companies for 1957 and 1956, with the present
Mr. Coleman in the past was
Trading Manager for H.
on
few
.
for
Coleman
rated
better face
likely to see a reversal
of the moderately improving trend in extended coverage, this to
add to the carriers' troubles.
Of course, the frequency of these
twisters can slow down, just as that of the seaboard hurricanes
did,;
'
v:'■
■
•'c•
-'■■•'v.
depa rtment
Harry L.
been
in
one
present rate of tornadoes continues
formerly
Manager
has
dubious distinction
Pied i monte
was
lost
were
recent
a
a'
point out that the tornado
us
The
x-
Mr.
change.
let
early start.
an
the hew York
end
-
.
Bui 1 d i
rates, the Middle East is likely to
remain an important center of free
World
oil1 operations1' ^ for '
many
It 'Should
Insurance Stocks
—
ciated with B.
&
the same rate
they have declined in the past
three, then we hiay sooii reach a
dangerously low reserve position.
next
Piedi-
A.
monte
Industiy
By ARTHUR B. WALLACE
CITY, Mo.—Harry L.
V
■
from page 6
The Middle East and Oil
(Special to The Financial Chronicle)
KANSAS
Thursday, June 19, 1958
.
.,
petroleum
interests
are
identical
The rise of
the other.
with
those of the nation.
has made it easy
rejoice
nationalism
for the
Significantly there are now 43
companies and individuals, repre¬
to have any concern over
senting
vs.
a very
substantial portion
of the total U. S. oil
industry, in¬
volved in operations in the Middle
East.
Because
reserves
and
of
its
prolific
tremendous
production
Arabs to
denouncing ''colonial¬
at the same time to fan
in
ism" and
Russia conflict to
the West
influence the
political and economic life oi tne
Middle East. Further changes will
come,
no
come
one
doubt, and
at
a
time
if they <can
and without
Number 5752
Volume 187
The Commercial and Financial Chronicle
...
(2769)
conflict, the general welfare
open
peoples of the region should
improved, rather than impaired.
Fifty-Fifty Pattern Carried
of the
be
The wealth of the region repre¬
Flat
to
cash
royalties
combination
a
income
tax
for
of
gave
Out
way
royalty
determining
and
pay¬
sented by the oil reserves and the ments to the governments. Hold¬
returns from the production, for ers of old concessions
renegotiated
decades to .pome can be the basis terms with the
respective govern¬
of developments that will give the ments to fit the
fifty-fifty pattern.
hard-pressed masses a standard of Without exception* I believe.:nil
living far beyond anything they concession agreements in the main
have ,known\ in
a
long history. producing countries have been
Peace and.stable modern forms of substantially amended within
.the
government are required.
It re¬
last several years.
mains to be seen if the influence
Renegotiations,
try has had to meet
the
Suez
crisis
was
when
caused
the
by
an
enterprise fraught with many
risks, and I am sure that the
Canal
closed and the pipeline from
Iraq was broken in the Autumn
was
of
1956.
This
international
the
was
crisis
a
relations
in
records
ing
in
est
-v
•
to
markets
quired.
Nasser's Power Over Oil
Middle
effort
or
world's
East
do
not
supplying
with
the
the
oil
The oil industry, as we know it,
had its beginning in this region in
and
operations
of
AngloIranian Oil Company, Ltd. in 1951.
the Kingdom
become
to
later
of
Iraq. American, British, Dutch and
French interests combined in the
Turkish Petroleum Company and
1920's started activities
in
the
a
concession
which
led
on
the
to
opening of the Kirkuk oil field in
the northeastern part of Iraq. The
Turkish Petroleum Company was
re-organized into the Iraq Petro¬
leum in late 1928, at which time
the
famous
Red Line provision
came
into being, which was to
have
significant influence
on
oil
affairs for 20 years.
Government
a
.Japanese
P
4!'
More
Middle
recently, in the union of
Egypt and Syria we have seen the
more
first formative step
Eastern
programs
instance
every
toward what
less
or
operators
have
pursued
continuously
of
in
expansion
such
were
as
consequence, the re¬
years hence.
lationship of this development to
.The free world's requirements
the oil industry is not what Nas¬ for petroleum have been
expand¬
ser
may do, or can do, to interrupt ing so rapidly and the capacity
production, but rather that his new of the U. S. reserves to support
success
in
respectively, for concessions with
alleged advantages indicated for
those
the
and
progressive buildup of operations
in Persia led to
many
new oil
concessions
being acquired in the
the 1930's, and to the
region in
discovery .of oil in Bahrein Island,
in Saudi Arabia, and in Kuwait.
By the beginning of the second
World War it was abundantly ob¬
vious
to
the
operators in the re¬
that tremendous producing
potentials existed, but the fact was
gion
not
generally
Governments
newsworthy.
Fol¬
lowing World War II, the world
became more and more conscious
not
enjoyed
under the older agreements«These
have caused much comment and
speculation
the older
ments.
as
to possible effect
well
as
as
on
future agree¬
These have not
turbed
so
far dis¬
the
presently producing
concessions, and it is difficult for
to believe
Canal to handle
as
was
riorated
shipping has not,
generally predicted, dete¬
seriously, but actually has
they will do
so.
ditiously
traffic
and
than
competently,
it
did
more
before
that at least
one
for
"have-not"
the
Arab
get
states
larger share of the growing
Middle Eastern oil
revenues
tax
on
pipeline operations and the
tolls.
But
to
do
this
barrels
in
a
the
day to nearly 4,000,000.
a
Perhaps
you
are
familiar with
Avenue.
A. J. Gabriel
ing in
a
carrying
Opens
Co., Inc. is engag¬
securities business from
4%,
3%,.-2%%,
2.90%
which resulted
2%
in
net interest cost of 2.91717%
a
coupons,
to the State.
The
of
*
/
;,
bonds,
the
with the exception
maturity, were reofthe public at prices to
2008
fered
to
yield 1% to 3.10%. „V
The bonds are general
tions
of
which
the
has
State
of
pledged
obliga¬
New
York
full
faith
its
and credit to the payment
of prin¬
cipal and interest.
Included
in the offering group
Kuhn, Loeb & Co.; Chemical
Exchange Bank; Blyth &
Co., Inc.; C. J. Devinq& Co.; Man¬
are:
Corn
ufacturers Trust
Co.j The Marine
Trust
Company of Western New
York; Harris Trust, mad^Savings
Bank; The "Northern• Trust Co.;
Hallgarten & Co.; Kidder, Peabody & Co.
Ladenburg, Thalmann & Co.;
R. W. Pressprich & Co.; Salomon
Bros. & I-Iutzler; Barr Brothers &
Co.; Blair & Co. Incorporated;
White, Weld & Co.; The Philadel¬
phia National Bank; Carl M. Loeb,
Rhoades & Co.; Bear, Stearns &
Co.; Equitable Securities Corpora¬
tion; Hornblower & Weeks.
offices at 65 East 55th Street.
With Greene & Ladd
Two With Reynolds
(Special to The Financial Chronicle)
FRANCISCO,
Ohio
DAYTON,
(Special to The Financial Chronicle)
SAN
Calif.—Ed¬
is
Casey
Greene
Bank
New
&
York
Casey
was
of
the
Exchange.
Mr.
formerly
&
natural
demand for petroleum in the next
prove
with
Co.
has, in several public utterances,
shown a thoroughgoing awareness
of the fact that oil in the ground
tial
is of no
ten
Even if these should
to be optimistic by substan¬
margins, the outlook is that
years.
Middle Eastern production, which
has already multiplied by nearly
On the other he
vqlue to anyone. To give
it value it must be manufactured,
transported, and marketed, a proc¬
importance of the Middle five times in ten years, may be ess that requires ships, refineries,
East oil industry as production be¬ doubled again in the next half and access to markets, which Nas¬
There is no
gan moving to markets in increas¬ dozen years. I will not burden you ser does not have.
ing quantities and as the character with detailed figures of reserves evidence, at this time, in any of
of the fields became general in¬ for the several countries, which the oil producing countries of sym¬
formation. At the present, north¬ have been stated by various and pathy for the idea giving Nasser
westward of the fields in Iraq, sundry authorities. It will suffice a hand in the control of the rev¬
Turkey has a little production and to say that as a whole the oil re¬ enue from oil. On the other hand,
there have been proposed many
may prove to have considerably serves of the Middle East would
more, and far to the soutneast, in appear to be more than adequate times schemes for part of those
the extreme southeast part of the for the production that may be revenues being made available to
Arabian
Peninsula, an oil dis¬ called for in the predictable future. finance development projects in
of
the
reported in the Prov¬
last year.
That
covery was
ince
of
makes
Dhofar
Petroleum
The
Department,
Chase Manhattan Bank, has pub¬
the
"have-not" countries.
As
far
as
the
oil
industry
is
oil province 1,500
miles lished a number of papers on the concerned, Nasser must remain, at
in length by some 400 miles wide
growth, financial requirements least for some time to come, a
—a
province without compare for and patterns of the industry which question mark. His capacity to
an
reserves
and potential.
are
Under the older concessions and
until after the end of World War
II,
revenues
to the governments
of
the producing countries were on a
basis of cash royalty per unit of
The
royalty, while
generally to be equi¬
table and in keeping with "going
prices,". did not relate to the mar¬
production.
considered
ket
value
of the
oil.
the
As
oil
production of the Middle East in¬
creased in volume and
portance became
more
as
its im¬
keenly
un¬
most
free
mated
If the esti¬
demands are
interesting.
world
reasonably near the mark, there
will
be
considerable
strain
upon
the
petroleum industry in the ex¬
penditures required to find and
develop production and create fa¬
cilities for transportation, refining
and marketing. When considering
putting Middle East oil into the
markets it is apparent that cor¬
respondingly greater capital is re¬
quired in providing the transpor¬
tation
by virtue of the distance it
competition for has to be moved. The capital re¬
concessions increased, there natu¬ quirement for finding and devel¬
rally arose demands for greater oping production in the region
returns'to the governments of the will, of course, be large, but surely
derstood, and
producing
as
countries.
Thus
ideas
changed about equitable payments
particularly in view of the pattern
set
Venezuelan
Govern¬
ment on "the basis of the
so-called
by
the
fifty-fifty pattern of sharing of the
profits from the operation of
oil
producing properties.
the
cause
in the
of the
economy
by shutting off the normal chan¬
nels of transport through which
Middle Eastern petroleum flows
For solid evidence of
industrial "Ruhr
continuing growth at the center of America's
Valley," consider just three of
many
significant
signs:
hardly be doubted. His will¬
ingness to do so is another thing,
property, plant and equipment to supply this area's electric and
altogether.
gas
can
Industry Is Not for Faint-Hearted
Perhaps,
conditions,
in
it
the light of such
is understandable
that the faint-hearted should look
upon
East
able.
oil operations in the Middle
precarious and question¬
But the fact remains that the
as
One:
an
increase
during the last 10
years
of
more
than 250% in
needs.
Two:
an
facilities
investment of more than $260 million in new plant
by The Cincinnati Gas and Electric Company in the
last 11 years.
Three:
an
impressive start in the last year on a quarter-billion
of solid progress recently approved by Greater
voters: slum clearance, street and sewer improvement,
dollars' worth
Cincinnati
new
expressway
construction.
Yes, Cincinnati's solid growth has not only been a continued
story... but is quite definitely, a continuing story. It's not surprising,
is it, that the Cincinnati Gas & Electric Company, serving this
great and growing area, has grown so solidly, too—maintaining
an unbroken 105 year record of continuous dividends! (Current
rate:
$1.50 per
year.)
Serving America's Industrial Ruhr Valley
po¬
I
believe that those who are
Next
experience in the wars, the familiar with the history of the
greatest dislocation the oil indus¬ oil industry are aware that it is
sition of available reserves.
STORY OF SOLID GROWTH!
orderly develop¬
free world
companies now operating there
it will be somewhat less than will represent nearly 1,500,000 U. S.
shareholders who already have a
be the case in other regions.
stake in the Middle East. And the
Looking to the future, political
further fact is that we cannot
developments and pressures will
choose the
areas
in which we
be important and have their effect
would prefer to produce oil; we
on the oil industry patterns along
must take it where we find it.
the
with market demands and
CONTINUED
serious dislocation and dis¬
turbance
ment
CINCINNATI:
THE
CINCINNATI
GAS
&
ELECTRIC COMPANY
to the
/
105 years
of unbroken dividend history
J.
with
National
members
Stock
mele-Johannes
Frank
Third
Ladd,
Building,
—
associated
now
might be. On the one hand he is
a
champion of nationalization of
the various estimates of free world
resources.
June
and
obtained
is
on
The group bid 100.0199% for bonds
than
they now receive in the form of
canal
VERNON, N. Y. — John P.
Fox
is
conducting a securities
business from offices at 127 Crary
A. J. Gabriel Co.
of Nasser's ultimate aims is to
some
John P. Fox Opens
1V1T.
the
closing.
It would appear
awarded
were
issue of
an
$49,000,000 State of
New
York
housing .boudfu;clue
$1,000,000 each July 1, 1960-2008,
callable beginning July 1, 1998.
significant pro¬
very substantial way he would
win Parris and Donald P. Tafjen
in Bahrein,
have to coax or coerce some of
Iran, Iraq, Kuwait, Qatar, Saudi the oil producing states to join a are now affiliated with Reynolds
Arabia, and in the Kuwait Neutral federation under his leadership, &
Co., 425 Montgomery Street.
Zone, jointly controlled by Kuwait which, up to now, has not hap¬
Mr. Parris was previously with J.
and Saudi Arabia. During the last
pened. And even if he should suc¬
Barth & Co.
ten years total production in these ceed in
doing this there is no in¬
areas has risen from about 840,000
dication as to what his next step
duction
Iraq
pom--
E. N. I., and
as
private company have
Currently,
Province
The
company,
17
.
.
recently entered into agreements been improved to the point that
with the Iranians and Saudi Arabs,
today the canal is handling, expe¬
me
Oil
1,500 Miles x 400 Miles
oil
monly referred to
The Chase Manhattan Bank and
associates
:
early; years of the twentieth The re-establishing of operations
century when commercial produc¬ in Persia under agreement with
tion was started at approximately the International Consortium came ascendancy
over
Syria, through another such emergency as World
the same time in Egypt and in alter more than four years inter¬ which both Iraqi and Saudi Ara¬ War II are
diminishing so steadily,
Persia. Egypt never became pro¬ ruption, during which time the bian pipelines run, puts him in a that to pursue
any other course
nation was without the important position to
lific but by the beginning of the
hamper the flow of a might well prove to be the straight
and sorely needed income and lost
first World War the importance
ve^y large portion of Middle East¬ line from timidity to disaster
of the Persian oil production was the market for oil to other pro¬ ern production to market.
:
well
recognized by the British. ducing countries.
Nasser is resourceful and deter¬ Murray A.
Charlop Opens
Generally speaking, in the past mined, as his
Following the first World War,
nationalization, and
BROOKLYN, N. Y. — Murray
a
significant change in the terms
other
international oil interests
subsequent closing of the Suez A.
Charlop is conducting a securi¬
of an agreement in a producing
began paying more attention to
Canal under French and British
ties business from offices at 1568
the Middle East, and particularly country has brought repercussions attack has
amply proved. In his 49th Street.
concentrated on Mesopotamia, in the other countries. The Italian hands the capacity of the Suez
the
New York State Bonds
"
t,
erties
Group
Offers $49 Million
re¬
although at times difficult and Egypt's dictator, Nasser, hopes to necessary to achieve the
produc¬
of the West, and particularly the long drawn out, have
usually been extend into a federation of all the tion necessary to meet market
United States, can be such as to faithfully carried out.
The out¬ Arab states of the Middle East. demand.
Currently, they are ac¬
let change come without violent standing exception, of
course, was Since, at least up to now, neither tively
engaged in
programs
to
eruption between local; elements the case of the Persian Govern¬ Egypt nor
match
Syria has any petroleum
anticipated
requirements
ment's action in taking over
or the world powers.
prop¬ production of
several
t
Chase Manhattan
companies operat¬
that
they
have
any
throught of lessening their inter¬
industry and customers of the
were trapped.
]
1 U
•.
the
in
the
indicate
which
industry
•■'•I'd
of
57
Rem-
58
The Commercial and Financial Chronicle
(2770)
.
Thursday, June 19, 1953
.
.
'
"
■
As
this
We It
See
considerable attention even, before the
in 1929—partly as a result of unemployment in
countries—and soon became the key question in
as
well
as
■
•
1
in other lands. Several learned books
Of
sacred writ to the
Continued from page 12
Keeping Onr Heritage of
Freedom Is No Easy
total
often
vaguely or unrealistically conceived. The volume of investment, for
example, is just the volume of investment. It makes no
difference apparently whether it is carefully planned
construction of plant with excellent likelihood of being
able to give employment and remaining alive indefinitely,
or merely make-work programs of a paternalistic
govern¬
ment. Investment figures ordinarily employed in statis¬
tical analyses of such situations include business inven¬
tories accumulated much against the will of business
concerns. Often analysts seem to suppose that consumers
spend income only on consumption—and hoard the re¬
mainder. In any event, the grand total or average of all
operations are taken as guideposts despite the fact that
such figures include and often conceal a vast heterogeneity
are
of data.
of
geared
•than
'
the
the
,
,
movement
lecer¬
—
to' the
to
calendar
productivity
rather
must
be
stopped.
^
one-third.
At the
'
uif^ r
being useci.
than
more
to
of
tainly not the Chamber of Com'rnerce
of the United States—but
this, business
of
wage
increases
•
■
If they are not stopped
inevitable outcome will be
the
either
today are going up. The purchas-
decline
a
accom¬
economy
.
labor
ruinous
denced by the fact that savings longed
national income.
That is
;
gitimate
people do not use the purchasing
power
they have.
That is evi-
in-
national
In 1957, they were 5.9% of total
Strangest and most unfortunate of all is the fact that
in Keynes' own work and in the voluminous literature
that it has inspired in the 20-odd years since it appeared,
the individuals who are employed or who would like to
be employed are regarded apparently as having little or
no
power to control or even influence their own fate.
Rates of interest, the volume of investment, propensity to
consume, the volume of government spending, and other
factors of a like sort are put down as controlling the situa¬
tion. The wage earner works or remains idle depending
upon what someone else does or does not do, so it is said.
the
upon
No. one wants to break the
;
■
of
those
ement
personal records of
plishment without regard
./•
,
nation.
9.2%
m o v
things only in the
minds of overly ambitious
labor
leaders vying with each other to
:
were
mean
those
effect
i
not
labor
set
politicians?
come.
Strangest of All
these factors
The
mean.»
in the days when we were the envy of the
world. But how can that happen with the full employ¬
ment act still on the statute books of the nation, and still
legitimate labor
does
things.
as
the
course,
movement
soon
appeared on the subject, and by 1935 John Maynard
Keynes had elaborated his "general theory" and presented
it in a large volume which, unfortunately, is still Holy
Scripture to all too many who would banish unemploy¬
ment in various parts of the world.
Furthermore
.
can
given play
had attracted very
other
'
only hope against hope that there will be a
return, and in time, of a day when natural forces are
any given situation continue, and so do the debates as to
what ought to be done at the present time. The subject
crash
i
We
Continued from first page
or
pro-
wage
or
price controls by
n°
;
inflation
recession
and
government.
Chamber
:
-pf the first large business
^
• ;
was one
organi-
The more tenaciously labor in- zations to advocate that eni^ists upon rawing the cost of em- ployees should have the right to
•ploy men 1 duimg a ice & ion su.- ui^niiize. Our membership has
;
' as we are in> the less emp ovmen 1..repeatedly
affirmed
that -they
there will be, and yet that is ex- should have the right to organize
argu- vae^y what unioli labor is dpi ig
and bargain collectively when-
time, labor income
percentage of national income
as a
same
has moved
In 1948
upward.
it
was
62%.,
1957, it
In
was
69%'
,
v
The intimation in all these
into the lining of t. is present re-• concern about the growing power
profits are the-, cession.
la^or unions, it is not with the
dynamic, free enI would like to makerit-clear thought that the right of emterprise system. Anyone who at- that 'management has no quarreli- ployees to have their organizatacks profits attacks that system.; with the rank and file .of labor tions should be taken away from
profits.
The truth is that
lifeblood of
our
members—and
union
Case
The
for
for
case
Profits
profits
<
as
es-
an
sential ingredient in the
system
in
was
American
admirably summed up
issue
recent
a
of
the
suTvey
published by the Guaranty Trust
Company of New York
follows:
as
"Spokesmen for the workinghave always been prone to
have
we
them.
no
objections to pay raises based on
This right should be
carefully
increases in productivity^; Every^ preserved in this complex
society
one is entitled to a raise, based dm where
the
dignity and interests
productivity. Our difference-arises
0f
the
with labor union bosses-who take
at
times
little
or
of
account
no
the
pro-' jg
ductivity issue.
Of
take the
quarrel with the employer's prof-,
to
■
There
wages.
i-
position in-.regard
same
those
are
be
employee
may
overlooked unless he
provided
With
machinery
expressing himself."
not all labor leaders
course,
man
individual
Union power and its abuse is
far
who
for
•
different
arises
question.
from
It
the, fact
a
often
that
tre-
workingman's best friend.
' <T Such.sound recommendations...;;.Th
nictate
what
tho
iminnc
"It is the prospect of profits hove not been adopted and their
sha], „
d ^
the power
that creates the 30b, and it is the advocates have almost been kicked •
ppnfprpf1 ifV nriiv
fw -mi ond
realization of profits that main- out bodily from the labor convenenti^ indiStri^t if.
tains the job.. When profits are tions, although I believe that the
monopolistic si t u.a tiow- which
ample and demand is abundant, rank arid file of labor, as opposed
.
, ,
,
H
u
the attack on profits tends to re- to labor leaders, would agree/with ■ ;
•
'
■.
I
suit in inflationary price increases; them.
;
y. C/• A:^National ^Chamber --witness
with no real gain to labor.
The head of the steel; workers'
appea^d^ecen^^^fore ;the
"When profits are squeezed, and union recently rejected, a
sugges-t Sl
tfie
demand is faltering, the attack be-- tion that labor and managementSenate Labor ana Pumie>Welfafe
comes
a
formula for unemplov- in
the steel industry agree' :bn /Committee emphasized 'these .tWo
.
«
Easy Money
Make it easy
enough and inexpensive enough to bor¬
money, and there will always be some¬
one who will borrow and
spend and employ, say these
easy reasoners. If presently when interest rates are higher,
as they normally would be, the enterprises or
operations
thus artificially induced to come into being can not make
both ends meet and hence can no longer provide em¬
row
large
ployment
reached.
sums
—
of
well, that is
Demand for
service which
owes
a
bridge to be crossed when
this, that, and the other good or
its existence to government generosity
outlive that generosity, but that, too, is
something to be worried about at some later date. If, as
a result of all this, prices insist upon
rising, the remedy
is simple—merely institute strict price controls—so the
reasoning goes. Life is really quite simple for those who
think in this way about the economic system.
Time was when an individual seeking employment
was expected to meet the situation by which he or she
was faced by offering services acceptable to an employer
of labor at a price which he could and would pay and
Still make profit enough to persuade him to proceed. In
other words, at least some part of the responsibility for
finding work and keeping work was supposed to rest with
the seeker after employment.
In those days, unions
existed, but they had not developed the monopoly power
they hold today. At least some competition of Worker
against worker existed. Those times appear to be gone,
may or may not
and if left to the
politicians they will never return, we
are afraid. Today,
organized labor can price itself out of
a market
and the resulting unemployment is charged
against the employer, the industry, the government, the
Federal Reserve System or practically anything except
the workers themselves and their short-sighted and mo¬
nopolistic policies.
.
merit."
is for
reasons
of this kind that
we
fear that the
so-called full employment act and the
philosophy which
it birth will do the country infinite harm. It is for
reasons that we
deplore the passing of great econo¬
mists who discerned the fallacies underlying the reason¬
ing of Lord Keynes and his successors. It is for these rea¬
sons that the leading place of this nation in the economies
gave
these
of the
world may presently be sacrificed.
of this kind that we have
It is only for
misgivings about any
competitive economic struggle between the communists
reasons
and the other economies of the world.
quotation.
ing
If
sacred
put it another way—
profits are squeezed, management becomes more pessimistic
and may cut back further on production and payrolls and5 begin
laying off more workers.
:
When shadows begin to fall on
the profit outlook, investment in
You hear
what
/ ;
lot these days about
called
"administered
It is being said that this
recession
brought
because
the major corporations have "adr
was
on
ministered
prices" of their products—-meaning by that, I presume,
that prices are fixed so high that
people
refuse to buy, sales fall
off, production drops and unemployment results.
Stated
another
way,
an
"ad-
ministered
price" as the term is
being loosely used, is one that is
arbitrarily fixed and rigidly ad-
hered to without respect to
and demand.
is
supply
tered
prices" as it is being used
by labor leaders and some polithen
labor itself
ample of
the
the most
is
of
price
ex-
,
actually demanding
Price
r-rice
Cuts
wis
as
a
a
Real
neat
Cure
t,ure
-
The surest way to cure a reces
sion is to get pi ices
down, and
you
cannot get
WaxfrlS*
When
is
of
insist
prices down by raising
i
goods
.
remain
unsold, it
a deficiency
purchasing power, but because
not because there is
on
the
pay
raise
scheduled for July 1 of this year.
It
takes little imagination to
realize what that would do to the
steel
industry
industries
tion
of
it
and
the
to
affects. ..A
the
other
resump-
wage-price
spiral
would be inevitable.
One
that
union
t
V
measures
regulations for
cial statements
not
strike
at
filing finangood hut will
are
basic'problem,
the
the recession to soften
use
up.
" All
us
movement.'
this
leads
tion.
to
jn addition
a
good
ques-
is
•
really
meant
-
by
/
the
"labor movement"?
:
Labor
raises
mean
regardless
of
•
ln
anti-recession
been
'
ever
increases
chief
Most
the
pro.
.
unemployed?
labor movement
are
-
means
those things, then its objectives
should
will
be
break
changed—otherwise
the
higher
also sup-
which
bills
effect
have
Congress and
the
be
would
of inflation,
of -these
proposals
were
hastily prepared without consideration of real needs
The
to
provide chiefly for public
nroieets
take
under
a
whiph
year
way.
amount
to
or
likely
are
Many ;of Ihe
-
little
more
get
to
more
bills
than
the
gestures such as are
usually made in an election ydar.
No Cure in Pump Priming
year—
in
recession, as well as a boom
regardless of how many million
If
-
introduced in
whose
We
know from
inflationary
Does tt *?eaft raises, every,year ment
a
workers
are
expensive
I
.
Movement Discussed
Does it
to drives for
porting most of the 30-odd major
works
...
What
.
wages, labor leaders
We cannot let them break the
labor
•
^generation
recently said
employers think they
"The
ijesv
boss
ductivity?
more.
union
"*
'
democracy
monopo-
workers
an
labor, wage rates are not only being held rigid, but labor leaders
control
can
fnn-
the
.
union
glaring
-
;
-
and
\'!'V
So-called
an(j
"
,
'roiwfpw
poWer-.''
\
.,
alone
greSs
•
union
uncontrolled
"
'
second
the ; labor
labor with those contracts provid- when 50 years
ago big 'business
ing for automatic raises.
.abused its power,
the Congress
A spokesman for the kteel in- passed the antitrust laws
dustry is quoted in a recent edi^
Why should not the Congresstion of Time magazine as sayftig |n the
public interest—now prothat the price of ..steel majf be vide that the
antitrust laws be
raised $10 a ,ton, if the. steelappiied to labor union
"administered price"
today because, with a surplus of
are
be amended
can
..
of
core.
is
;
power.
1
can
Now I submit to you that, if that
a
fair definition of
adminis-
ticians
contract
a
'
.
.
First,;- the
problem
;
sacred:-:
a
.
^
,
a
.
.
ing its sanctity.
This is; exactly
what should be done under present
conditions by-big business and big
a
are
prices."
.
.
is
V'-"
,
contract Is
,
;
:
course a
But
thmgs;;
in-
price
by mutual consent without affect-
be
may
thing."
thing.
.
technological improvement
postponed or abandoned.
and
wage
he said, "A contract
so,
Of
•
for at least-a year.. In do-
creases
-
To
—
It
postponing
;
So ends the
.
_
country
and
it
de-
stroy the free enterprise system!
1930's
cures
experience that
for ■unemploy
"not "effec'tive".^"in* the
the
trotted
out
make-work
Federal
a
whole
Government
battalion of
projects
general banner of the
power
-under the
/purchasing
theory.
We Were told that in "this way,
-we
could prime the pump
national
economy.
The
of the
trouble
187*
Volume
the pump
that
was,
Number 5752
.
was
.
.
The Commercial and Financial Chronicle
wage-price spiral,
never
stiff
primed.
eight years, and
After
been
had
billion
spent
much
nomic
$20
some
borrowed
ing
and
as,
of
offices
is
telling
way
proposals.
lobbyists—who are
why
to
the
avoid
a
that
form
the tide of business ac¬
today would be for both
unions and management to work
toward
halting the wage-price
a
We believe businessmen
them.
t
some
great danger is that gov¬
ernment, in its anxiety to speed
will use excessive medi-.
bring about, in¬
cine which would
flationary pressures and an exces¬
_
boom—which, in turn, would
build
a
subsequent contraction
worse than we now have;,
sive
And
in the midst of a
recession, our greatest long-term
danger in this country is inflation.
even
so,
A little while ago
I showed
you
piece of American money. Now
I Want to show you and talk about
a
piece of French money.
a
French
I hold in my
Franc
hand
a
was
a
1,000 franc
soldier- in
France in 1918 I held a
commission
note. ' When
as
I
Captain of Field Artillery.
My
and I was
The rate of ex¬
was $200 a month
pay
in francs.
paid
If I were
month today
francs, I would receive 84,000
paid
in
francs
$200
the
at
a
official
rate
He
is today worth
$2.20
$2.38 at the'official rate, and
the black market rate.
at
In
!
.
labor
of
picture
.
.
bills.-:
the
If
the
,
can
same
dollar
—
if
it
should
befall
become
A social
would
\
cost
the
meal for
would
make
one
family of four, or two
meals fob a good sized dog—and
$100,000 in life insurance would
purchase room and board for a
widow for approximately one
House of Securities
formed
do hbt
would
need to tell you what
offices
with
Co. has
in the
was
Montor
formerly with Henry
Associates,
Inc.
Glickman Sees. Opens
Securities Corp. has
with offices at 565
been
formed
Fifth
Avenue, New York City, to
in a securities business.
are Louis
J. Glickman,
Officers
President;
to our
Louis
democratic
Their
in
the
under
troubles
have
impact
been
due
happen here, and I am an opti¬
mist myself. Eut the stubborn fact
is that the 1958 dollar is worth
compared to the dollar
in 1939, and
if
we
don't stop this
them.
used
be
for
events in the
they pertain to
as
salesman
that
It is becoming
serve
clearly evi¬
con¬
preferred stock, capitalization
the company consists of $77,-
of
stock and surplus.
longer had art earned. 4n-
no
which to rely and the
$75,000 that was available to her
in a lump sum settlement of his
estate now became both a prob-?
lem as well as a means of support
come
upon
her.
to
freedom
from
supervisory
The fears she had
cares.
expressed about
other forms of investment, rather
than
bonds
E
and
savings
ac¬
counts, were finally resolved by
showing her a newspaper clipping
that stated categorically that some
savings institutions were already
planning to reduce their interest
on savings accounts and divi¬
dends on savings and loan shares
rates
this
Others have
toying with the idea.
The fact that current interest
rates are not sacrosanct was made
clear to her.
Interest rates will
coming July 1.
been
fluctuate
in
they are completely overbalanced
with
"dollar"
assets.
They are
accord
upward and downward
with the various fiscal
policies prevailing from time to
time; such is the world in which
The need
live.
we
investment program
for
a
proper
consisting in
this instance of a few sound
pub¬
and the major
portion of the fund committed to
carefully selected mutual, funds,
lic
utility
with
a
stocks
modest reserve left in sav¬
ings account for emergencies, was
the best solution of her problem.
Sometimes
a
general news
re¬
points toward the op¬
direction. Also, a return
that is subject to
evidence
A.
Siegel
and
Louis
elected
D.
a
(Special to The Financial
Holman
Chronicle)
BEVERLY HILLS, Calif.—Mar¬
added
the staff of McDonald, Holman
Co.,
Inc., 214 North Canon
vin
to
&
J.
ments
will be
(Special to The Financial
Chronicle)
BEVERLY
He is
tee.
(Special to The Financial
Chronicle)
a
New York
eighth annual
will hold its
outing on Friday
committee.
graduate of the class
A. J. & J. M.
Case
The
of Mrs.
"A"
J.
M.
1407
Hirsch
to engage
with offices at
New York City,
Co.
Broadway,
in a securities
business.
With Continental Sees.
(Special to The Financial
Pipito has joined the
Continental
During the past few weeks one
F. R. Burns Branches
associates was asked to dis¬
OKLAHOMA CITY, Okla.—F.
cuss the investment problems of a
retired woman who needed more R. Burns & Company has opened
income but had limited knowledge a branch office in Guthrie, Okla¬
of my
Hirsch
Chronicle)
— Frank J.
staff of The
of
Moreover, she has homa, and at 331 South Franklin
through the years a Street, Ponca City.
distrust
of
practically
securities.
carried along
certain
every form of investment except
I. J. Hechler Inv.
government bonds and savings
accounts. Since her capital avail¬
I. J. Hechler Investors Corp. is
able for investment was less than engaging in a securities business
$75,000, she was faced with the from offices at 535 Fifth Avenue,
absolute necessity of
New York City.
Corpora¬ ing the following: (1) The assur¬
Securities
tion, 611 Broadway.
ance
of
more
income
paia
regu¬
(2)
Freedom from the
responsibility of supervising her
investments for which she admitted
she was not equipped either emo¬
Joins Dale R. Hill
larly.
Joins Gardner
(Special to The Financial
MILWAUKEE,
Dalton
Chronicle)
Wis.
—
Milton
is now affiliated
Gardner
F. Dalton & Co.,
North Water Street.
W. Youngs
J. S. Strauss
with
735
(Special to The Financial
Adds
Chronicle)
FRANCISCO, Calif.—Reg¬
CORONADO, Calif. —John D.
inald G. Becker has been added to
MacLachlan has been added to the
the staff of J. S. Strauss & Co.,
staff of J. A. Overton & Co., 1134
SAN
Orange Avenue.
Municipal Bond Women's
of
of 1929.
tionally
Peace of
egg.
or
by experience.
mind regarding her
'
155 Montgomery
Street.
(3)
nest-
(Spec a. to The Financial
R.
people like Mrs.
past ten years had
was
familiar with these in¬
vestments, Key
and
she
and
Company,
114 West
With Mutual Fund Assoc.
her small reserve funds in
bonds and savings institutions.
kept
She
Hill
Ninth Street.
.
A, who for the
E
Chronicle)
Colo. — Merlin H.
Menk has joined the staff of Dale
PUEBLO,
.
There are many
J. A. Overton Adds
inade¬
more
The
Club
quate on this score as well. Re¬
June 27th at the Morris County
member, I am stating a position
Club
in Convent Station,
here that applies particularly to Golf
those individuals who are using New Jersey. About 60 members
Mr. Miltimore is a general part¬
ner
in
the investment banking such methods of investment al¬ are
expected to attend and a char¬
exclusively to all others.
firm of Kidder, Peabody & Co., most
tered bus will leave New York for
However, even if interest rates
and a director of Thatcher Glass
the affair.
Manufacturing Company. For the will be reduced for certain pur¬
Dorothy Root, F. S. Smithers &
past four years he has been a poses and classes of savers these
time-tested investments are pref¬
term trustee of Union College and
Co., is chairman of the outing
erable to almost any other.
a member of its finance commit¬
HILLS,
Fund Associates, Inc.
even
(as
invest¬
such
N. Y., it was an¬
Walter C. Baker,
chairman of the board.
MILWAUKEE, Wis.
Join Daniel Weston
reduced
Manicipal Bond Women
To Hold Onting
j
Schenectady,
nounced
by
Wanetick has been
Drive.
are
likely)
College,
M.
With McDonald,
rates
very
ofUnion
live.
income upon which to
these
seems
" Abraham M. Hirsch and Jacob
Hirsch have formed A. M. &
tary-Treasurer,
If
must have
those who
life member of the board
trustees
of
is certainly not at¬
income taxes
more
been
has
Miltimore
to 3 Vz %
of 3%
tractive to
Of Union College
Berger,
of
problems
resulting from inflations. We like
to say to ourselves that it cannot
as
she
purposes
part to the manifold
48 cents
this
investors, and the in¬
vestment
new
Vice-Presi¬
dents; and Bernard Mann, Secre¬
L.
Calif.—Joel
A. Klein and Mitchell G. Mann
such a depreciation of our cur¬ have
joined the staff of Daniel D.
rency.
We are all familiar with Weston & Co., Inc., 9235 Wilshire
what has happened in France. The
Boulevard, members of the Pa¬
government has changed 26 times cific Coast Stock Exchange. Mr.
since the end of World War II.
Klein was previously with Mutual
happen
institutions
coming
and
savers
Miltimore Life Trustee
Fidelity Building to engage in a
a
year,
I
In
life!
safe."
But with the loss of her husband
035,000 in debt securities;
been
two pounds of ham¬
which
will
stock
struction
Form Securities Firm
security 'check for $100
buy
burger
of
market
money
or
facts
she said "her money was
as
the
piece I would like to dis¬
the
cuss
face
Otherwise, it is redeemable dent that substantial deficit fi¬
In making the situation clear to
prices ranging from $52.75 per nancing, necessitating both Treas¬ this woman as to what was the
share if redeemed prior to June 1,
ury and Federal Reserve policies best course for her it was neces¬
1963, to $50.50 per share if ire- that will be designed to ease
sary to discuss and analyze her
deemed on or after June 1, 1973,
situation rin
money rates, will be accelerated
order to
gain her
plus, in each case, accrued divi¬ sharply during the balance of this
agreement that she should invest
dends to the redemption date.
year. As for the future it is inde¬ her funds where she would have
Net proceeds from the sale of terminable as to when a reversal
the most
regular income/ with
you
~ •'
..." '
•
week's
must
at
"BALTIMORE, Md.—The Balti¬
Nathaniel
Any one of the so-called lowpriced American cars with mini¬
,
economic
$50,
n.'j/
posite
$8,400.
$250,000.
clientele
pany.
engage
trimmings ,wbuld
par
its
serve
pre¬
preferred stock is not
new
but I believe so.
of what it is worth
today—a suit of clothes which now
sells. for
$100 would cost you
worth only 1/84
mum
A,
Coming Competition for Investment Income
Every business in order to best
or indirectly,
prior to June 1, 1963, at a
lower cost of money to the com¬
on
keep it."
Glickman
fate should
Service
cumulative
stock, series
share.
common
so,
:
,
Public
The
240,000
refundable, directly
given us?"
"A Republic, sir, if
replied,
Lerner
But the 1,000 franc note which
(was once worth $200 is worth so
i little today that a counterfeiter
'would
starve
to
death making
y.
these
issue of
Arizona
$2.40
joint
that on
are
group
an
per
The
Cardinal securities business. Officers are
Richelieu^ is the warning that any¬ Mende M. Lerner, President and
one who counterfeits one of these
Secretary, and Philip A. Cohen,
notes will be punished with forced
Vice-President and Treasurer. Mr.
colored
ful
$50
you
more
French
note, which bears a beauti¬
bank
1
this
of
corner
one
state and national
We believe that the overwhelm¬
you
French money
$200 in our money,
at
t
words, this piece of
which I hold in my
hand and'which was once worth*
other
In
Co., Inc.,
the
By JOHN DUTTON
Corporation
$30,562,- betting entirely in many cases lease, or a news item can be help¬
Well, we have kept it thus far.
000 par value of preferred stock;
Can we continue to keep it? Yes,
upon
a
"dollar" that will not ful to you in making a point}
and
$9,104,000 par value of convertible shrink, or that will grow larger better than any involved discus¬
by eternal vigilance. Will we keep
preferred stock; and $46,037,000 in purchasing power when all the sion of inflation money, etc. etc.
it?- Yes, I hope so. I not only hope
the black market.
90,000 in
best
commerce.
dollar and him,/"What have
change was five for the
I received 1,000 francs.
being
of
Boston
of this trend will take place.
and for the
To the investment salesman and
payment of loans
incurred for the investor these facts are far
aye possessed with high ideals,
construction purposes. Continuing
sincerity,; honesty, and courage,
from academic. They portend re¬
giid. that they have enough intelli¬ growth in the number of custom¬ ductions in
current
rates
now
ers served and increasing demands
gence to understand economic
being paid on savings accounts
for electric power and gas require
truths, when they are clearly and
and: also dividends disbursed cur¬
substantial expansion of the com¬
forcibly presented to them. / "T*
rently by Federal Savings and
We believe that if we present pany's facilities, estimated to cost Loan Associations.
Several
an¬
the truth with enthusiasm, with approximately $27,100,000 for the nouncements have already reached
last three quarters of 1958, $40,the press in various sections of
persistence and with energy, we
800,000 for 1959 and $37,100,000 the
will have nothing to fear.
country of reductions ranging
for 1960.
In this program, we invite the
up to
y2% per annum on thrift
The company is engaged in the
support of the members of The
accounts,
savings accounts,
and
generation, purchase and sale of this form of investment.
National Advertisers Association,
electricity and the purchase and
who through the medium of ad¬
sale of natural gas in an area ex¬ The Illusion of "Money" Security
vertising can exercise enormous
Can Be Overdone
influence on the thinking of this tending to 10 of Arizona's 14 coun¬
ties
and
covering about 40,000
So there will be no misunder¬
country.
' r
We must understand, however, square miles.
standing, there is no intention
For the 12 months ended March
that keeping our heritage of free¬
here to: deprecate the proper func¬
31, 1958, total operating revenues tional
dom is no easy task.
utility of the various forms
of the company amounted to $51,Tt ,is
of savings and thrift accounts now
said that as Benjamin
Franklin walked out of Conven¬ 811,000 and net income to $6,639,- so widely used by many investors
compared with $50,345,000 throughout the country. But there
tion
Hall
in
Philadelphia after 000,
and
$6,563,000 for the calendar are
people who have overem¬
signing the new Constitution of
the .United States, someone asked year 1957.
phasized the use of these invest¬
Giving effect to the sale of the ment media to the extent that
/
The
recovery
can
ing majority of American people
place and not on Capitol Hill
Washington,
"" /
ket
their local,
chambers
things govern¬
ment can do to help but the cure
must come primarily in the mar¬
;in
political
accomplish this through the media
of
are
opt
carry
effective
of
ferred
of business.'
solved
reductions and any form
price rigidity tends to. prolong
There
they
They must quit thinking of pqlitics as a dirty word. They must
either get into politics or get out
by price
of
if
"
buying.
usually
of
program
of
Company
action.
spiral which has been discourag¬
are
shares
of
of govern¬
they must develop and
&
June 18 offered
ment which is hostile to business,
tivity
Recessions
First
Blyth
,
Chamber
reverse
ing consumer
The
and
*
.
Securities Salesman's Corner
Public Service Pfd.
of the United States is
businessmen
want to
said, the best
Boston-Blyth
Group Offers Arizona
socialistic
Business and Politics
That
instead of spurious.
As* I have
First
onrush-
an
Capitol Hill.
on
Commerce
recession if the cure is to be
a
real
a
eco¬
managers
/ "/
road out
easy
our
the welfare state —have
right into Congressional
moved
members of the/ labor
force- unemployed.1 And they re¬
mained unemployed until the war
bailed us out. • royal,
of
against
union
of
phy
million:
There is no
tide
in for
we are
preserve
committed to the political philoso¬
still between eight and ten
were
to
system
Labor
dollars worth twice as
dollars today — there
—
battle
69
(2771)
had
required no care,
the
feeling
that
(Special to The financial
Chronicle)
Calif.—Sally
joined the staff of
SAN FRANCISCO,
C.
Stapp
has
Associates Incorpo¬
Montgomery Street.
Mutual Fund
rated, 506
<50
The Commercial and Financial Chronicle
(2772)
Continued from page
house,
11
The
people who sell
appliances.
Thus, the appliance manufac¬
turers have tried to meet the chal¬
electrical
of the marketplace with
better products, larger and more
efficient facilities, lower-cost dis¬
lenge
increased
sharply
tribution,
ad¬
vertising and sales effort, liberal¬
ized credit, bargain prices, and—
sharply reduced
profits. Yet unit sales in 1957—
a
year of record levels of eco¬
nomic activity — were at levels
disappointingly below 1956 or 1955
the
in
process
ing, and continued investments in
capital
improvement
and
ex¬
pansion, during the recessionary
swings of the business cycle.
It
is my opinion that these are pre¬
cisely the times when an extra
marketing effort pays off best,
and when capital improvements
and expansion can be carried for¬
ward at the most favorable
average
Electric's
General
—
eight-year
The
volume.
by their judgment as to what is
the right course, but also by what
they feel is required to keep them
Shape of Things to Come
than the
sumer
They Mast Help Themselves!
to these questions. Their
are determined not only
answers
in
Upturn," for example, is a com¬
pany-wide effort to build sales and
jobs not only through increased
marketing effort, but through the
efforts of every employee, every
is
important that their ansbased
on
what truly
be
swers
■
represents
in¬
balanced best
the
terests of all
citizens, and not the
interests of special-interest blocs.
Consider the political activities of
just one special-interest bloc, for
example.
prices.
"Operation
"The interdependence of nations implies that any
lagging part of the world economy holds back every
other.
Conversely, to the extent that the lessdeveloped regions participate fully in world eco¬
nomic growth, the entire free world will benefit.
Markets will expand, both for raw materials and
industrial products, and an increasing range of
human aspirations will be satisfied.
We cannot
achieve a community of free nations if the dispari¬
ties of opportunity for their peoples are so vast as
to preclude any common experience. The ultimate
objective of all economic development is the wellbeing and happiness of the individual and the basic
unit of society which is the family. The future
peace of the world and the achievement of some
of our deepest values depend on the sustained ad¬
vance of the less developed regions in cooperation
office.
It
The labor unions this year
be
the
will
expanding both the scale and
variety of their political ef¬
forts
along highly practical lines.
They will have card files on vot¬
ers and even bigger files on the
candidates; they will have door¬
bell ringing and coffee hours in
behalf of favored candidates; reg¬
growth rate of 3% a year will not supplier, dealer and distributor—
be enough to enable either the, to deliver better values and better
electrical
manufacturers or the service to our customers. Such a; istration drives, followed by elec¬
program now will not only help
electric utilities to achieve their
tion-day
telephone
reminders;
Frankly, this is
The
inforcements.
call for re¬
a
manufacturers
intensify their efforts, but
their most strenuous efforts
will
even
cannot
Both manu¬
utilities must build
enough.
,be
facturers and
their sales and advertising ef¬
forts in this field, and take what¬
ever
other imaginative steps are
up
necessary, to persuade residential
customers that there is no better
the
stimulate
to
goals for the years ahead.
should
help
long-term
build
to
electrical
in
momentum
but
economy,
sales; and here I refer to both the
curve and the curve of equip¬
Other electrical
ment sales.
ufacturers
sales
also
are
undertaking
job building programs,
and
and utilities are
tying in with both
manufacturer
the
man¬
efforts
the
and
community efforts to stim¬
ulate renewed
business activity.
local
these
investment they
If
to "live
through successfully, and the real
gains are then consolidated and
pressed forward, this industry will
could make than
better—electrically."
"
whose adver¬
Electric utilities,
expenditures in
the rpostwar years have dropped
to 1.6% of gross revenues, might
tising
sales
and
the
consider
well
advantages
of
carried
are
programs
actually emerge from the present
recession stronger than ever.
It is times like the present that
restoring
separate the truly enterprising in¬
tures of
dustries
the pre-war expendi¬
2,5% to 3% of gross rev¬
in
and
enues;
many
companies
higher percentages are justi¬
even
from
float along
of economic
that
those
simply
in the national stream
activity. To reach the
In view industry's high goals, it is man¬
number datory that both manufacturers
and
utilities
demonstrate
their
of competing uses for the con¬
sumer's dollars, such advertising spirit of enterprise more aggres¬
and sales expenditures would rep¬ sively at the marketplace.
resent a prudent management in¬
Political Environment.
vestment by an industry that aims
A third critical area in which
to.grow twice as fast as the econthe future is being shaped now is
omy as a whole.
fied by the opportunities.
of the rapidly increasing
-
in
halls
the
of
Congress
in
and
'
Competition of Gas
would
I
the
state
legislatures, and wher¬
political climate of the
future is taking form.
Solving the technical, market¬
candid,
than
less
be
the
ever
Iiowever, if I left you with the
impression that I consider under¬
sized advertising budgets as the
•
ing, and other familiar business
problems of the electrical indus¬
only obstacles to residential load
growth. The most important sin¬
gle obstacle to the achievement
of the industry's residential .load
try will not alone assure a bright
restrict
so
conditions could
Political
future.
the
vigor of the busi¬
system that the
objectives is the aggressive com¬
national
economy
would never
petition of the gas industry.
It is obvious that the gas in¬ reach its magnificent potential in
dustry
has, developed
a
tre-, 1979. The shape of things to come
mendous
momentum
in
recent 10 and 20 years from now is being
determined by political decisions
years, and the electrical industry
enterprise
ness
will have to put
drive
sales
new
ous
forth
on
tremend¬
to compete
a
Shall
to
with it successfully.
if the
example,
the
these:
of
inflation?
Are
wasteful
spending programs really the best,
route to a sound resumption of
cuts
tax
and
the national advance?
Will
utility
its
even
the
swing
used
customers, the customers
electricity should be offered
gas
of
as
an
recessionary
business cycle be
present
the
excuse
to
funnel
an
larger proportion of the na¬
tion's economic activities through
polls and baby
voting housewives.
the
who
people
the
run
views.
at
the opportunity they
embracing is generally with¬
manpower,
are
in
the
traditional
bounds
American" political
issue
real
here
special-interest
action.
The
whether
is
any
should
group
achieve such tremendous political
that
power
imbalance
cal
is
just
happens
officials
to
who
This
be
public
before
bow
to
interest.
politi¬
the
that
so
forced
special
serious
a
nation's
the
structure,
interest
a
it produces
in
time
those
support
it
union
program
a
big government, big taxes, and
increasing government encroach¬
others in determining
the political climate of the 1960's
and the
art
1970's. It must be met by
equally
determined, equally
* equally
well
effort
on
the part of
practical,
and
mounted
those
who
hold
that
the
whole
if
But
industry
expects to coast along at its pres¬
ent pace in advertising and sales
promotion, it is to be questioned
whether our mutual objectives in
electrical
Such
load
goals
be
can
have
sales
to
realized.
because it
ment
is
trates
attention.
mitted,
But
age
if time per¬
mercial, and rural markets.
is
question whether it
appropriate. to
creased
speak
of
in¬
expenditures for market¬
provide
a
investor-owned
electric
the
initiative, eventually
to
stunt
and
cripple
man¬
the
system?
^
of
the
of the
urgency
willing to extend this Con¬
for
ideas
of
so
thorough exchange
nation's atomic, let
a
011
policy. For this portion of
Conference, invitations would
other
the
atomic power reactors.
The dele¬
discuss
and
papers
on
as
it
moves
Atomic
and
not
by
the
growth
of
.
In
Let
past, the businessman
have felt that such political
ular
Atomic
big
Energy
challenge offered
for example.
Here is a development that will
have profound effects on the future
energy,
of the electrical
national
industry and the
economy.
Congress
In
1959, the
will
undoubtedly re¬
write the Atomic
Energy Act of
1954.
It
is
reasonable
whatever
tion
emerges
to
enabling
will
They
Non-Partisan
now.
in the labora¬
tories and the marketplace.
Let us work to have the capacity
in place and ready for each new
surge of national growth.
ployee,
munity
with
business—customer,
the facts
about
to
This
on
As
a
a
can
and
should
private citizen, the busi¬
must
work
for and
nessman
tribute to the party of
dates that best represent his
sonal
energy
for
years
to
come.
"the
proper
within
the
framework
of
this
country's
traditional
economic
system. As you know, the indus¬
try is now presenting many con¬
tradictory positions.
We in General Electric
to do
are
eager
share toward the devel¬
of a constructive
our
opment
long-
policy that is founded firm¬
the national interest. We do
not pretend to have a
ready-made
range
ly
on
answer
to the
many
questions in¬
catalyst, to bring forth the best
thinking of the industry 011 this
important subject.
At the suggestion of
ity
executives,
manv
General
util¬
Electric
Congress, in the capital buildings has announced a Third
Utility
in the state legislatures, in the
Executives' Conference at Woodcity hall and the county court > side,
Calif., on the pattern of the
per¬
point of view. I emphasize
party of his choice" because
there
are
high-quality candidates
in
both parties. The best way in
the long run to assure good gov¬
ernment is to have men of sound
and
independent judgment in each
party.
This
discussion
of
the
;
Exchange
Names Public Advisors
men.
Scientists
what
will
can
try to predict
happen in the labora¬
tories; economists
agers can
in the
can
named
sales
around
with
Allyn,
C.
Arthur
year,
partner of A. C. Allyn &
Chairman of Midwest's
of Governors, announced.
ad¬
to the six-man
Newcomers
visory group are Horace A. Shepard, Vice-President and director,
Thompson Products, Inc., Cleve¬
land; Ben Regan, President of
Nationwide
Food
Service, Inc.,
Chicago; and David M. Kennedy,
of the Continental Illi¬
President
National
nois
Trust
and
Bank
Company of Chicago.
Goodrich
Northwest
Lowry, President of
Bancorporation, Min¬
a third
Edward
of Selected
was named to
consecutive term, as was
neapolis,
P.
President
Rubin,
American
Shares,
Inc., Chicago.
Chairman
Mississippi River
William G. Marbury,
of the Board of
Fuel
to
Corp., St. Louis, was
second
a
Function
named
consecutive term.
advisors, who
the
of
board of gov¬
ernors, is to present the viewpoint
of the public in formulating Ex¬
change policies. They cannot be
members or nominees of member
are
selected by the
firms.
man¬
Now With Sutro Co.
a
(Special to The Financial
sat¬
it.
SAN
Chronicle)
Calif.—Wil¬
Jr., has be¬
FRANCISCO,
liam
Wehrmeister
come
affiliated with Sutro
But the future cannot be math¬
ematically determined
the
to
Exchange for the
Stock
and
Board
try to forecast the trends
moon
been
have
advisors
public
senior
Co.
Six leading
—
executives
Midwest
marketplace; and politicians
promise the
ellite
and
111.
CHICAGO,
business^
political
challenges has led us to my final
point: that ultimately, the future
is being shaped in the minds and
hearts of
build the
to
Midwest
building support for those candi¬
of
work
us
public opinion that will
preserve and enhance the vitality
of free enterprise,:, in the service
of a free society.
*
con¬
his choice,
ground rules for the development
atomic
be
non-partisan basis:
assume
the
issues
ability of business
the people of the United
serve
States.
done
those
let
And
climate of
em¬
share owner, and com¬
neighbor — is provided
that affect the
progress,
coming
Education
legisla¬
establish
are
a
with the
the
atomic
by
part of his reg¬
manager, the businessman
must see that everyone associated
Pattern of Development
Consider
not
assignment.
As
of
were
sell
the
accelerate the
to
work
us
of
pace
energy
the
here
passing troubles of the day.
era.
is only one of
maiiy issues that have great eco¬
nomic and
political significance
for the business community and
the public it serves.
government.
Challenge
toward the atomic
advance,
full share
our
invest, produce, and
confidently,
regardless
of
gates will have an opportunity to
hear
its
work,
of
manufacturers
all
about the future envi¬
today. Let us plan,
bring
sioned
also be extended to the executives
of
national
the
to
resolve to do
us
to
with
about,
come
vital
the
energy
the
matters
volved, but perhaps it would be
helpful if we could serve as a
The people's representatives in
tric is
ference
may
of
business
enterprise and individual freedom,
encouragement
uncontrolled, poisoning the econ¬
omy with inflation, special privi¬
lege. coercion, and restrictions on
productivity and initiative?
manage¬
a
may
is
Because
atomic power issue, General Elec¬
by
Will monopoly union power be
allowed to run its selfish course
similar challenge would
be found in the industrial, com¬
Some
energy
American business
critical point
a
concentrated
people
present tax system,
which penalizes success and frus¬
speaking of the
challenge in the residential
needs
see
Will
been
that
the
utilities wither away, replaced by
Federal power plants?
can
area
atomic
Will
the residential customers.
I
of
second chance for those who want
only be achieved
by selling the concept of all-elec¬
tric living to the vast majority of
"
income
the
taken in taxes?
electrical
the
faults, is far superior to anything
produced by a centrally directed
society.
In this great electrical industry,
public interest will best be served
of
particularly if it vigorously pro¬
motes its natural advantages.
does
conducted in 1950 and 1954.
any
goals and methods for the
development
of
atomic
energy
product is produced for
government, and that one-quarter
utility Conferences the company
,
forces hostile to business may out¬
weigh
national
has nothing to fear—
the inhabitants thereof—at least in
colonialism.
7' in¬
the
technical, economic, and political
problems of atomic energy. It is
ment on business. The future de¬
hoped that an industry-wide con¬
mands less special-interest poli¬
tics and more politicking in behalf ference, in this setting of inves¬
tor-owned atomic energy facilities,
of all the people.
will help to develop a common
The
political
challenge from vision for the electrical industry
of
cal industry
Is it not
upon
the absence of 19th century
of
This is why, in the
public in¬
terest, it
is
essential
that
the
spokesmen for industry agree on
the central government?
advantages. In
the electri¬
largely
their tech¬
of
some
niques of using union machinery
to
provide
political funds
and
enough that one-fifth of the gross
special
same
Maybe, but let us not forget that "sustained ad¬
of the less-developed regions" depends Very
vance
\Yhile there may be raised
eyebrows
such fair competition,
the
Special Studies Project of the Rockefeller Brothers
Fund, Inc.
unions have every right to try to
build support for their political
that
offers special inducements such as
free installation or free service to
for
as
government attempt
present recession by
doses
illusory
special
responsibility to see that their
customers truly have a free and
fair choice between electricity and
For
the
cure
massive
The utilities who offer both gas
and electric service have a
gas.
such current issues
Now
with the industrialized nations."—Panel 111 of the
the
to
sitters for
industry
load
rides
even
Thursday, June 19, 1953
.
.
trying to come up with
are
answers
.
rigidly
controlled.
In a free society, the
future is shaped by the character
of the people.
Each of us has a
different picture of the future he
desires, and none of us can have
his way entirely.
Yet the faith
of the free society is that what
& Co.,
or
460
of
members
and
Pacific
Montgomery Street,
the
Coast
New
York
Exchanges.
Stock
Wehrmeister
was
Irving
Lundborg.
Hooker
&
Fay.
formerly
with
Co.
and
&
Volume
187
Number 5752
.
.
.
The Commercial and Financial
Chronicle
61
(2773)
Continued
from page 21
state that the recent
actions
System
Price of Gold and Gold Outflow
example, draws a conclusion that
the
price of 'Sold should be
trebled .-.because
dollar
prices
commodities! have
manw
of
Treasury.-If the rest
world has
free
thlt^he'de^lneln^w^M
5 wa^n S 0«set hfagfh^
state
actions
of
the
Reserve
derision?of ttif
Federal
a
price^e'ases6 wTcofeleC
\° ""S*
getting the cart before the
vears'gwf its g^ld'base outPof'the United"^ tl^ g°M fr°m th"
excessfve rise ° gold We and
Treasury.
.
Sinn Tf
KU ;SoV^
be related
and
the
w
up
W In 1957 many important couritries of the free world suffered a
m-h
ni'wllp
pnlH
to
marked
u
toxoid
stimulation
prrnrmous
tn
substantial deficit in their balance
•
commodity prices
every time com-
payments, in part because
pVPPCJ imnnrtc rTnP +n rinmPstiP
it would
rose
cease
n
meaning as an ofh-
cial
01
of
standard.
currency
The
fixed g
ea cold p
u price is 10 cnecK
ce is to check
ai y
anv
credit
excessive
because
and
expansion
comparison
ri
the
gold
^
sterling. By the
inflatinnarv
been
in
brought under
major foreign
most
countries and the financial
""^^ ^^pound sterling wp not
For 1
se
the price
of gold dramatically at
this juncture would be to
destroy
com-
,
balance
of
gomg to be
reas°ns
payments
price
painfully
had
and
r!htf™T!rf
Ration today
legitimate
a
inequitably
baiely masteied.
is
t0
longer, lease
de-
life.
on
•
^ "
.
.
th!
rest
0f the free world with the United
on current
s
increases
the
of
world' In the 1930 gold States improved both
^th^ 1 QSO's^prdd account (since excess
western world.
western
a
nres-
tne year, inflationary pies
foreign
many
imports
countries
of
financial
equilibrium)
and
on
eaP'tal account (because the capi-
tal that fled foreign countries, and
in particular the United Kingdom,
started'lto..return).; As
result of
a
With regard to foreign demand these
changes, the flow of funds
for our gold and the need to
pre- between the rest of the free world
vent lack of confidence in the U. S. .and the United States was re-
dollar, Senator Robertson pointed
versed; the foreign countries that
out to
had
gold
the U.
stock
S.
of
Senate
the
that "the
United
States
Treasury declined by $611
million
and
between
April
clined
16,
Some
the
1958,
further
end
and
since
observers
1957
of
has
that
have
dedate.
suggested
that the foreign demand upon our
gold might indicate
a
growing dis-
trust abroad of the stability of the
American dollar.
"I
asked
Federal
the
Chairman
Reserve
comment
Board
of
the
for
his
this matter, and I ask
on
to
ord
at
this-point.
"There
letter
being
was
objection, the
ordered to be printed
in the Record
no
follows:
as
regain
inquire about the decline in
gold certificates held by the Fed-
you
eral
Reserve
System and
explanation
an
that decline
of
the
ask for
effects of
the current credit
on
situation.
stock
Federal
Reserve
tem
1957
by
$21,269
thus
of
the
normal
conse-
in
and
Treasury
United
buys
gold,
credit
Reserve
to
to
ceeds
held
redeem
by
banks,
in
banks.'
certificate
smaller than the de-
was
in the
United
States
Treas-
A
sale
16, 1958.
"Apart
from
of
in
of
amount
bank
of the
that
gold
sale in
them
transfers
banks; conversely,
of
to
a pur-
from the United
generally reduces
bank deposits and bank reserves,
gold
since the purchaser generally pays
the gold by drawing on his
account
with
Federal
member
banks.
Reserve
If
System
wishes to counteract these effects
to
take
measures
to
reduce
it has
bank
domestically mined gold, the vol-
reserves
(e. g., by open-market
ume
of which is negligible, the sales of
Treasury bills) in the case
changes in the United States gold 0f an increase in the United States
stock invariably reflect gold purgold stock; and to expand bank
chases from, and gold sales to, reserves (e. g., by open-market
foreign monetary authorities and purchases of Treasury bills or by
the International Monetary Fund,
reducing member bank reserve
When the rest of the free world
requirements) in the case of a deexperiences a substantial deficit dine in the United States gold
in
its
balance
the United
of
payments
witf^ stock.
States, it tends to
re-
the
foreseeable
future would bring the gold-certificate
holdings
Reserve
the
of
Svstem
Federal
down
Sborhood Tf
to
the
the
statutory
minimum.
"t
hone
that
this
questions. Let
that
more
ments
of
somewhat
answers
"To
this
extent
it
is
correct
to
"It
is
for
from
international
gold
are
once
move-
in
necessary
S^o mfhitaifthe functions
international
the
an(p that their
gold
effect
iposition of
gerVe
the
on
re-
banks
our
of
standard;
can
easily be offset, as far as necesSary, by the policy tools available
the
+0
Federal
Svstem."
Reserve
Sincerely
yours,
Wm. McC.
Martin, Jr.
Robertson's Conclusions
of
the
upon
than
more
.
J"\
Two - With Dewar
SAN
DIEGO,
Chandler
tax
at
(Special to The Financial Cheqnicle)
,.
our
offices
securities business.
;
,
with
Village Road to engage
and
Calif. —Guy
Paul
associated
now
Company,
First
Building,
W.(-Lines
both
National
&
Bank:
previously
were
with James Kyle
ara
Dewar
with
Company.
\
the
to
us
plan
current
will
a
Valley Securities Opens
recovery
recession
prevent
inflation
which
will
in
a
at
home
prevent
further
complicate
problems."
our
MORRISTOWN,
Securities
loss
formed
with
of
a
has
beer*
the
offices' in
Commerce
in
son
Tenn.—Valley
Corporation
uncon¬
abroad of confidence in the Amer¬
ican dollar which, in
Bank
Building to engage
securities business. Gus Nel¬
is
principal of the firm.'
a
economic
►
•.
:•
$39,587,000 Municipal
Of Metropolitan Toronto
V,
S
«
n
^
'•"i
•.
\
VJ
f
Debentures Marketed
An
by
underwriting
Harriman
Ripley
&
offered
June
on
19
Co.,
an
child die
a
Jf
headed
group
and the Dominion Securities
Inc.
of cancer
Corp.
issue
|
of
$39,587,000
debentures
of
The
Municipality of Metropolitan To¬
(Province of Ontario, Can¬
ada).
The
offering consists of
$3,800,000
2 y4 % -4 %
instal ment
debentures, maturing July 1," 1959
to 1973, priced to yield from
2.25%
to 4.00%, according to
maturity;
and
$35,787,000 of 4%
sinking
ronto
fund debentures due July 1, 1978
which are priced at 99.25% and
accrued
"It may be noticed that Chair-
Corporation
Green
a
highly important, there¬
fore,
and
ties
>v
"With
your
emphasize
me
under
consumer
buying run¬
ning at the rate of $280 billion a
year, each 1% price increase rep¬
-
technical discussion
disturb¬
turn, would
as
31
no'danger that'gold
in
interest,
yielding more
Principal of and in¬
than 4.05%.
man Martin says The loss ol our
terest
S_d_
more
able in United States funds.
on
^
balanced
than
■
^
by
in¬
an
of
crease
$832
and
move¬
ments to
mal
to
nor¬
efforts
other
of
nations
balance
their
States.
Last
foreign
year
inflation
Sen. A. W. Robertson
the
This
ciai
sent
year
de-
stabilized
abroad
"Mr. Martin
have
Federal
offset
can
has
bank
says
there is
movements
credit
no
in
to
our
make
and
he
danger that gold
the
The
forseeable
at
fu-
"Nevertheless, Mr. President, I
believe we should not overlook
the fact that the current movement of gold is out of the United
States; that the privilege of exchanging American dollars for
gold, which is denied to American
citizens, does reduce our bank rebased
on
them, that if inflation abroad last
caused gold to be sent to this
year
country, inflation here could
cause it to be sent out again; and
if
carried
on
to
the
extent
and
103%
which
foreign holdings of American dollar exchange would make possible, this movement could have
a serious impact on our economy.
"A recent tabulation of pending
spending
plans,
including
one
made by the Chairman of the
Federal Reserve Board, indicates
...
and
plain to
are
redemption price of
accrued
interest
and
well
me
It's
for
mak•
again, Doctor?"
terribly hard
doctor who
a
in
see
her eyes: "Can't you
and after July 1, 1973,
initial
an
.
.
.
even
tragedy
sees
declining
enough
The
fade from the sunlight of life—,
premiums
thereafter.
sinking fund is designed to
provide funds to repay the sinking
fund
debentures
turity.
full
in
at
The
in
Municipality of Metropoli¬
was
incorporated
Toronto
Ontario
1953
which
statutes
enacted
provided
for the
federation of the 15 municipalities
in the Toronto Metropolitan Area
for
certain
financial
and
other
The City of Toronto is
the focal point of the area which
purposes.
approximately
covers
victim of
a
child
cancer.
We had succeeded
in
pro¬
longing her life by many months
non-callable.
are
a
to watch
...
ma¬
The instalment debentures
240
square
miles.
—thanks to recent advances in
the treatment of leukemia.
But that's not enough! Can¬
is
cer
day
disease that ranks to¬
a
as
the Number 1 diseaso-
killer of children. We
we
can
must... find ways to
it, and win
over
.
Hill and A.
come
—
Kenneth
it
Research, supported by tht
Let's
W.
Keith Reed have be¬
affiliated
with
»
is
striving towards that goal.
(Special to The Financial Chronicle)
Colo.
.
battls
American Cancer Society,
Two With Inv. Service
DENVER,
credit
Justice
sinking fund debentures
callable
minimum.
the
of*.
isolation hospital.
will bring gold certificate
holdings of the Federal Reserve
System
down to
the
statutory
and
sewage,
the words were,
ture
serves
to
this child of
She was too weakeight. But
to speak
under
stabilize
supply,
amounts
Administration
con-
Reserve
still
and
needed
pay¬
waterworks, roads and
pavement reconstruction, hydro¬
electric systems, local
improve¬
ments, parks and recreation, lib¬
raries,
home for the aged,
re¬
changes in
available
our
varying
schools,
tan
also indicates
the
are
finan-
that trend,
fidence that
Board
be
gold to this country,
more
conditions
versed
cl
pound
might
valued
a n
that
rumors
the debentures
Net proceeds from the sale of
the debentures will be applied in
dollar
payments to
the United
it
gold to the
of gold sales and purchases,
transactions
1957. There is
movements
adjustments
States Treasury
the
and April
D£c'
note
gold supply by policy tools which
Treasury generally
the
proceeds
way
ury, which increased by $832 mil1957 and declined by $611
1957
1958
oh
mem-
position of the
States
to
j0r
of
16
46 3%
affect
also
movements
banks.
chase
end
April
to
gold stock, however, because
member
the
on
which
Reserve
decline
reserve
the
between
liabilities
compared
deposits?-and
gold certificates
Federal
recent
holdings
stock of the "United States Treas-
million
hnlH
of
the
Treasury's deposit account
with
a
corresponding
amount. When the Treasury sells
gold, it generally uses the pro-
a
lion in
Reserve
40 5%
the
increases
corresponding changes in the gold
to
Federal
goi^ certificates amounted
the
deposits and bank reserves, since
the seller of gold generally useS
proximately
<;innP
since, ? edeJ.a* Kesei^e hold-,
•
ings 0t
it
certificates
gold
made
price
the
As
donations
trolled
«on
be
foreign-aid program.
at present aftect the credit situa-
States
follows:
as
and
that
generally
replenishes its dollar balances by
ber
McC. Martin, Jr.
Ke-
MADISON, N. J.—George Pillsbury has formed Madison Securi¬
in
time
ing to foreign nations which ac¬
quire large sums of American dol¬
lars through our
purchases abroad,
the spending of American
tourists,
manner
1958.
in the
System,
serve
United
W.
reaeiai
both
"Changes
be¬
re¬
asan]st
Re-
Form Madison Securities
55
inflationary
same
serve notes and deP°slts does not
gold stock affect the gold certificate holdings of the Federal Re-
and
flected ap-
afs
gold
Federal
he
declined
lion to $21,589
million. These
against
in
1957
million,
April 16, 1958,
by $496 mil¬
certificates
defi¬
a
and at the
maintaining
reserve
attributes
1957
tax cut and
a
cit of from $15 to $18
billion with
a tax cut. A
deficit of that magni¬
tude is bound to be
maintaining
01
balance of international payments
of the free world be¬
"Gold
tween the end
of
International
changes
lion without
- $2 billion.
tween
the
of 1 9 5 7 and
problem
1J?P10Dlem
of the rest
mil¬
lion to $22,085
changes
the
lion from its free-gold balance
the gold-certificate account.
million from
«The
,.
;
v
the statutory 25%
conversely,
the Treasury transferred $100 mil-
$816
Reserve System.
in
ury
in
and
started
possibility of a deficit at the end
of the next fiscal
year of $10 bil¬
achieved by somewhat less ex- resents an invisible
pansionary actions of the.federal American consumer
million
cline
Sys¬
rose
and
were
quences
The
"The gold-certificate holdings of
the
1957
Monetary Fund in 1957, now sold
a large part of this gold back to
foreign monetary authorities. The
changes in the United States gold
Federal
"In your letter of April 21, 1958,
them;
countries
issuing
Martin's Letter
in
reserves
would have been
ease
the United States Treasury, which
had purchased gold from foreign
unanimous consent that Mr, Martin's reply be printed in the Rec-
lost
degree 0f
were
by. the restoration of
^58 th"same
States gold stock in
to
recognlzfd ?hat. ®e'
^
a
due
expanding devalua-
, th
control
years,ago
flight
™
? ,?
sures.vhad
of
position, today with 20
capital
J
.tlon 0f the pound
rising commodity prices
rising cot 11 otuty pxices.
"Any
of
use
ac-
SKMiW
of
in
? imports due to domestic inSwilationary pressures and in part
to have use or
moditv prices
taki
Svstem
hTt^gold bee^n^'decfin^ in" the^United
total, of its dollar gains
n
to
offset the
contracting effect of the
in the United
States gold
Reserve
This is
a
Reserve
in part
necessary
were
substantial surplus in.
System since the
imbalance of payments with the
Federal'
the past 20 years or since the
over
of the
expansionary
Federal
decline
plenish its dollar holdings bv selling': gold to the United States
trebled
the
of
Investment,
Service
Co., First National Bank
Building.
^
Peters, Writer Adds
give...boldly, gen-'
erously to the American Cancej
Society Crusade
eliminate
this
.
and help
250,000
e/o
Americans
this
alone.
Send your
(Special to The Financial Chronicle)
.
enemy
which will take the lives of mors
than
year
DENVER, Colo.—Olin S. Shep-
.
mortal
your
gift to CANCER*
local post office.
,
} j
pard has been added to the staff
of
Peters,
Inc.,
was
Writer &
Company.
'
1
Christensen,
724 Seventeenth Street. He
formerly with Kohlmeyer &
AMERICAN
*
1
CANCER
With Russell Inv.
(Special to The Financial Chronicle)
DENVER,
Oaks
has
Russell
Colo.
become
—
Darrell
affiliated
Investment
Co.,
L.
with
Boston
Building. He was previously with
H. Carroll & Co.
SOCIETY
o
>
82
Financial Chronicle
The Commercial and
(2774)
.
.
.
Thursday, June 19, 1958
A
Continued
Fall River Electric
from
to
o
The State of Tiade and
Offered to Investors
neglected furnaces back into operation.
night operation.
Public
offering
$3,000,000
of
Halsey, Stuart & Co.
needs
Inc., Dick & Merle-Smith, and R.
102.108%
and
accrued
interest,
to
yield
4.25%.
The offering firms won
award of the issue at competitive
the
over
in
occur
W. Pressprich & Co. at
week's
issue
Russian
his
on
observations
steel plants and iron ore
the-financing will be used by Fall
River Electric Light to purchase
Institute.
$1,100,000 debenture bonds and
$950,000 par value of common
stock of Montaup Electric Co. of
should
Russia
Utilities Asso¬
ciates, conducts its business en¬
sidiary of Eastern
-
.
64.4% of the utilization of the Jan.,, 1958 annual capacity of
140,742,570 net tons compared with actual production of 64.0% the
reports
on
week before.
~
-
-
-
-
-
-
-
-
-
pace,
•
-
when that level
'
/
was: '
li ;*I
"Ward's"
past week's production increase
gains by General Motors and Ford Motor
Co. Although Plymouth boosted scheduling, week-long closedowns
.*
Beil .&
Alan J.
weeks
of
six-day
Previous
April,
316,503;
489,357.
"
.
,
volume
last week
reached
an
estimated
17,870
units,
000,000 kwh. above that, of .the week ended June 16,1956.
;
1958, were
rose
slightly
in
May,
reversing
an
Output of the nation's mines and factories
127% of the 1947-49 average, the Federal Reserve
reported.
This was one point above the April level,
though still 17 points below May, 1957. The board credited the
upturn to a "small gain" in activity in durable goods industries,
which have suffered most from the slump.
Robert
—
Co. has opened a
branch office at 1867 Gulf to Bay
direction of
Boulevard under the
Jlarry .V. Wilson.
.
New Ira Jiaup*
.
Loadings for the week" ended
corresponding week inT956,r
Automotive
Haupt
branch office
at
433
Main Street under the
direction of Howard Alexander.
& Co. has .opened a
Jobin ,& James Branch
TAMPA,
Investments
Fla.—Jobin & James
Inc. has opened a
branch pffice at 3336 South Dale
Mabry binder .the
direction of
Edwin M.
Jones.
New G. A. Saxton Branch
G. A.
& Co., Inc. has -opened a
WATERBURY, Conn.
Saxton
—
branch office at 85 .Central Ave.,
under -the management of Down¬
ing A. Reinbrecht.\
New Tegtmeyer Office
tion total of
BILLINGS,
Tegtmeyer
branch
Mont.
—
& Co. has
office
in
the
Wm.- H.
opened
a
Northern
Hotel -under 4he -management
of
A1 E. Burgan.
Now R. J. Arnold & Co.
SQMERVILLE, N. J.—The firm
of Investment Planning Co.,
North Bridge Btreet
has been
changed to Richard J. Arnold &
Company.
With Dale R. Hill
.(Special to The Finwcial Chronicle)
PUEBLO, Colo. — H. Ben
Weindling is now with Dale R.
Hill and Co., 114 West Ninth St.
-
/•
V
1958,
the
as
i;1'.'.
'
i
output totalled 81,983 units and compared with
The past week's produc¬
of
crease
and trucks amounted
in¬
previous week's output,
above that of the
units
9,966
to 99,853 units, or an
"Ward's."
states
Last week's
output increased above that of the
car
previous
8,287 units while truck output rose by 1.679 vehicles
during the week. In the corresponding week last year 125,372 cars
week
by
trucks were''assembled.
Last week the agency
Canadian
17,370 trucks made
were
This compared with 16,191 in the
in the United States.
22,748
'
reported'there
r;
a year ago.
"
•
previous
* *
*
period
output figures for last week and the prior
reported by "Ward's."
••
current
production reflects demand generated by con¬
struction activity, replacement of depleted inventories and hedging
against a possible price rise. In some cases, it also reflects a mill's
desire to save money on semi-finished steel by turning out as much
as
possible before labor costs go up, according to this trade
journal.
District rates in St. Louis last week stood at 95.5%
of capac¬
from the previous week; Wheeling at 75,
at 72, down 2 points; Chicago at 68, up 0.5
down 2.5 points; Cincinnati at 61, up 1 point;
down 6.5 points; Mid-Atlantic at 60, up 2
59.5, up 0.5 point; Buffalo held at 53.5%;
Youngstown at 50, up 1 point; Cleveland at 43, up 6.5 points and
New England at 41, up 1 point.
Although they are elated by June operations and sales reports,
steelmakers expect them to slump in July. They are afraid pro¬
duction may drop to the April level or lower.
Right now, the
books look poor. Some reasons for the expected decline are that
several automakers, possibly Buick, Oldsmobile and Pontiac, will
ity, down
1.5 points
up 1 point; Far West
point; Detroit at 65.5,
Birmingham at 60.5,
points; Pittsburgh at
their plants
car
cars
Lumber
Shipments Rose 4.3% Above Output in the
Week Ended June 7, 1958
steel
for
-•
-
week ended June 18,
(revised) in the. previous week.
73,695
not
down
.<?
Last week's
has increased by 35%. If operations
rate, June's output may top January's
6,750,000 tons, this trade weekly added.
shut
production Jior the
/
1958.
year
Output
was about-1,725,000 net tons of steel for ingots and
castings, the highest of any week this year. Since hitting a low
Better
-l
industry completed its two millionth automobile of the calendar
week and
the
-w:->L~
*
-;
according to "Ward's Automotive Reports," rose by 1122%
and 22,748
at
1958, totaled 612,715
Passenger Car Output Climbed. 11.2% Last Week
furnaces
continue
June 7,
decrease of 120,762 cars Or 16.$%* below the corresponding
1957 week, and a decrease of 174,360 cars,-or 22.2% below the
cars, a
Steelmaking scored its seventh consecutive advance last week
operated at 64% of capacity, up 3.5 points, "Steel".
Magazine reported on Monday last.
as
point in April, production
Branch
STAMFORD, Conn.—Ira
Scheduled to Increase to 64.4% of Ingot
Capacity This Week , \
I n
revenue.'i freight for4the week ended June 7,
83,168.cars or 15.7% above the preceding holiday week.
of
Loadings
to
Branch
&
Week But Were T6.5 %-Below; Like 4957 period
1
.
b;-1,
Loadings Rpse 15.7% Above the Preceding Holiday
Car
>'•
production
12,109,000,000 kwh., according to the Edi¬
Electric-Institute. jOu.tpnt continued last- week the improve-
"Ward's" stated,
contrasted to 16,191 jobs in the prior week and
22,748 in the corresponding week last year. -Output of trucks
this year to date totals 410,477 or 22.9% below last year's figure
of 532,534.
i
/For the week: ended = June *14,i 1958, "output increased by 428,000,000 kwh. above thaVof. the:previ0us week^und was/^Sl^OOO^OO
kwh. higher than - that 4)f^th^rcdmparable 1957. weekend 684,-
.,
figures this year are: May, 349,474;
357,049; February, 392,112 and - January,
f \v-h-.,:
'
"„
irient noted in
"
.
•
Continued Higher Trend of Previous * Week
*,
light and power
/1958, was estimated at
son
production, while Studebaker-Packard
•-::;•••//■•
i~.f JV-
dvn
amount
The
monthly
March,
Steel Output
Ferman
;;•*;vvt.:b/:/
•V.f'5•
\
:
.
:
^Ward's" said passenger car production in June is proceeding b
at a level that will provide approximately 330,000 units for the
Board
135.8%.
'
Electric Output
by Dodge and De Soto plants hampered a Chrysler Corp. gain.
Motors returned to five-day programming following
curtailed assembly last week.
'',/■//
1947-1949.
for
indicated that the
resulted from modest
increased
-Avyearago, the ^actual weekly production
production%is based on •average* weekly production
Tndex of
<
-
statistical
Truck
-month ago the rate was 94.8 % and pro¬
placed at 2,181,000 Ions, or
,
CLEARWATER, Fla.
.
duction 1,523,000 tons.
was
By the end of last week, "Ward's" said, car output for the
year rose -to 2,060,366 units, 34.1% lower than last year's total
of 3,126,757 through the same date.
month.
16, 1958 is equal to about
Output for the week beginning June
performance
actual rate of *107.6%
production for 1947-49) as compared with an
of capacity ,and 1,728,000 ions a week ago.
visited
Steel
and
eight-month decline.
Branch
New Ferman & Co.
42
about
-■■■'-■■
that the
announced
the industry turned out its two millionth automobile
as
Industrial
Haugh, Jnc. has opened a branch
office at 134 East Concord Avenue
name
doubt
any
who
Iron
Mr. Sullivan, 'There
says
reached April 11.
Westport.
.
American
;
inspection trip,
months to the day behind last year's
Commonwealth
The area served
with electricity includes the com¬
munities of Fall River, Somerset,
Swansea and parts of Dighton and
of Massachusetts.
of
be
He was a member
experts
publication said 18,983 'cars were scheduled
the past week compared to 73,696 in the preceding week and
125,372 in the corresponding week a year ago. The two millionth ';
auto of the year was assembled Tuesday, June 10, almost two
several
Light, a sub¬
direction
the
ore
American
times.
L.
of the
longer
no
The
">to $807,392. The period's
fiijed \charges were earned 4.91
the
of
of the 1958 calendar year.
come
—
sponsorship
and
■
result
a
Reports,"
of the
of the
©perating revenues ;in the 12
mwiths
ended March 31,
1957
amounted to $6,336,507 and net in¬
IpRLANDO, Fla.
steel
In the automotive industry passenger car production in the
United States climbed 11.2% last week, said "Ward's Automotive
Light of $900,000 additional com¬
ing stock .to its stockholders, will
be applied to -prepayment in part
^of ghe comnaiv'- short-term bank
loans of $2,050,1)00.
t Upon compieuon of the financ¬
ing the company's outstanding
capitalization will -consist of $9,808,000 long-term debt; - 244,021
shares of common stock; and bank
logns at $208,000.
Beil & iHough
of
Institute
Steel
and
Iron
of steel companies will average *108.1% of steel
capacity for the week beginning June 16, 1958. equivalent to
1,737,000 tons of ingot and steel castings (based on average weekly
operating rate
For the like week a
.
Stark.
the
team
American
The
Age," reports in this
a three-week tour of
Soviet steel facilities."1
proceeds .from the sale
bospds, tplus lunds from a -recent
offering by Fall River Electric
under
States
under
As
Which it owns 33.32% voting con¬
trol, a percentage unaffected by
issuance of the additional Mon¬
tirely within the
United
a
during
Predictions of dotal 1958
far enough
quotas will
925,000 gross -tons.
at about
estimated
,,
are
export are slightly below 4,000,000 gross tons. That is
under last year's total,-5,921,149 tons, to insure that
not be instituted in 1958, "Steel" magazine concluded.
■
operations.
activity during July*
* First quarter scrap exports
are/falling:
exports
Scrap
bound to
are
can
signs point to reduced
when
long haul, but short-term pinches
George F. Sullivan, Editor, "The Iron
of
Fall -River Electric
dealers
scrap
$35.67 per gross ton. More, declines are likely since
not see much lpoiht to holding out for higher prices
to
cents
50
over¬
•
period of low inventories.
a
sale June 18 on a bid of 100.859%.
Part of the net proceeds from
taup ^shares.. The balance
an
centers
weekly points out that while the June rush prob¬
ably will be followed by a July letdown, the current situation
spotlights the risk of allowing steel stocks to drop to the danger
point. Steel capacity is more than ample to take care of customer
mortgage
and
collateral" trust
4%% bonds due 1988 was made
19 by
It is more than
•
halted its price advance at most consuming
last week.*'"Steel's" composite on the prime grade dropped
Steelmaking
This trade
Fall Rivef Electric Light ,Co. first
June
Industry
equipment.
purchase new
?
Light Company Bonds
conshjuet-^additlbns ;to^facilities and•,'13i7%7 intend
expect to
4 .7%
5
page
model
changeovers.
Other
customers
will
close
for vacations and those who bought heavily in June
for
price protection will be out of the market in July, "Steel"
pointed out.
Despite the elimination of $2-a-ton price differentials by
Great Lakes Steel Corp., Detroit, and Granite City Steel Co.,
Granite City, 111., for competitive purposes, there is no change in
the general price outlook. But some observers predict an end to
premium selling.
When wage rates go up on July 1, steel prices will almost
certainly be increased. Public opinion, reduced demand and com¬
petition from other metals are restraining influences, but they
will not prevent a "moderate" hike.
The probable increase will
be about 55 a ton, continued this trade weekly.
In spite of the recession, a "Steel" survey shows that metalworking capacity will increase in the second half, but capital in¬
vestment will be much slower than in
1957.
0
Capacity is expected to increase 1.7% in the next six months
in the second half last year. Of those re¬
sponding to the 1958 survey, 3.1% anticipate building new plants;
compared with 4.5%
Lumber
June
7,
shipments of 476 reporting mills in the week ended
1958,
ders
0.1%
were
35% of stocks.
and
below
Trade
above
production,
Barometer.
above production.
Production
orders
new
4.3%
were
National Lumber
was
4.1 %
were
In
the
according
to
the
period new or¬
Unfilled orders amounted to
same
5.2% above; shipments L4% below
the previous week and 6.1%
above
the like week in 1957.
■/■
'
/
.
Business Failures Show Considerable Decline
Commercial
week
ended
industrial
and
June
12
failures
from; 325
in
declined
to
in
254
the
the
preceding week, Dun &
Bradstreet, Inc., reported/, -At rthe lowest level since the jfirst week
of
this year, casualties also fell below the 265 last year and the
1956. However, .failures were 2% more numerous than in
the comparable week of pre-war 1939 when 249 occurred.
286 in
Liabilities
week's
week and
failures
in
the
of
$5,000
or
more
were
involved
in
of
216
the
casualties, failing .considerably from 283 in -the previous
clipping slightly, from 220 of this size
under
similar
liabilities
in
$5,000
week
of
excess
a
vear
ago.
Small
decreased to 38 from' 42, last week and 45
1957.
Thirty businesses succumbed with
of
5100,000
as
against
40
in
the
preceding
week.
Failures
groups.
declined during the week in all industry and trade
The total for retailers dropped to 129 from 169, lor manu¬
to 50 from 61," for wholesalers to 30 from
35, for con¬
facturers
struction
contractors
to;25 from 32 and for service concerns to
The
year-to-year trends were mixed, however. Manu¬
facturing, wholesaling and service casualties exceeded their 1957
levels, whereas retailing"and construction tolls ran below last year.
20 from 28.
In
all
except
casualties declined
two
of
the
nine
major
in the week just ended.
geographic
The Middle
States reported 92 as against 119 a week
ago, the South
27 as against 35, the East North
Central 34 as against 151
Pacific States 52 as against 65; In
regions,
Atlantic
Atlantic
and the
contrast, the West North Cen¬
tral and Mountain States had totals
Dips from last
year
prevailed
equalling the previous
week's.
generally, with only two Tegions,
Volume
j.87
Number 5752
.
.
.
The Commercial and
Financial Chronicle
(2775)
•
In'the'simHal-^ek'offg^"0 StateS> SUffering more failures lhan
occurred.
Wholesale Food Price Index
Showed Fractional
Another
■
.
iS
index
rose
fractional rise
week.
date
It.
a
0.2
t
>
6.3 /c
was
higher than
.!
the
•
,
from
the
$6.60 of the prior
sagged.
the
$6.22. of
Wholesale
Commodity Price
Index Turned
Lower the Past Week-
the
Slightly
discouraged grain trading during the week
below
the
-
previous
week.
Wheat
growing
the week
ended.
index
for
the week
ended
June
store sales in New York
1958 advanced 2%
above that of the like period last year.
preceding week, May 31, 1958, no change
crop
four week
//'
trading was sluggish for the week and futures
prices fell
moderately,: There was an
appreciable'drop in soybean futures
prices as buying lagged.
Soybeans inspected.for overseas
for
Board's
According to the Federal Reserve Board's index, department
City for the weekly period ended June 7,
areas
Corn
Reserve
Retail
slipped
dipped most
prices
noticeably .'following reports that
harvesting of the winter
was underway.
■ ;:V
/'."!/■ <;
;;
//•/'•/-;_.->■/; •■ v ./
.
Federal
trade sales volume in New York City last week was
hampered somewhat by rainy weather, but despite this, sales turn¬
over rose by 2 to
5% above the corresponding period a year ago,
trade observers estimated.
and most prices
futures
interested
below that of 1957.
Ihe general
commodity price level slipped
fractionally again
week
On June 9 it stood
at
279.76, compared with 280.75 a
week earlier and 289.10
on
the
corresponding date a year ago.
The week-to-week decrease
was attributed
mainly to lower prices
on some
grams, livestock, sugar and rubber.
,./
Reports of favorable weather
conditions in
last
•
primarily
7,
1958, advanced 1% above the like period last year. In the preced¬
ing week, May 31, 1958, a decrease of 1% was reported. For the
four weeks ended June 7, 1958, no
change was reported. For the
period Jan. 1, 1958 to June 1, 1958, a decrease of 2% was reported
,
•
were
in canned goods,
Althougn interest in
fresn meat, poultry
and\fresh produce expanded appreciably," the
buying of dairy products, flour and sugar was sluggish..
Department store sales on a country-wide basis as taken from
raw
is
buyers
ended
June 7,
1958
increase
an
reported.
was
of
1%
In the
For the
reported.
was
For the period Jan. 1, 1958 to June 7, 1958 an increase of
1%
registered above that of the corresponding period in 1957.
was
com¬
Continued
pared with 918,020 in the prior week and.
904,906 .a year ago. The
major countries involved were The
Netherlands, Korea, Formosa
Japan and. Israel...
■ -,-r:/'•,/;• :i:
"•/'
/>/:/.. -,/^. .••//'
Although prices -climbed :somewhat, flour,
trading remained
from
14
page
The Electronics
close
to
Indnshy—
the Laiger Companies
that of the
preceding week.- Buyers were waiting for a
weakenin^m hard winter flour prices,. Commercial sales of
flour ;:
for exportXitotaled-56,600,000
bushels in grain equivalent this
sea;
son
as; against 43,600,000 in the same period, last season.
/
-!v: ^Therq was a moderate increase in
rice buying a week
sense
of
ago, but
profit-consciousness
prices, remained at prior week levels. Export commitments
made ^ throughout the organization.
f by the:cgovei*mtlent included
s
sizeable shipments to
At the same time the company's
India, Indonesia
and- thCPhilippines./'/ •/-■■
_'/:" :•
military backlog is rising sharply
'*.,/•
Wholesale buying of sugar was sluggish in the week and
as
its earlier pioneering work in
prices
4 slipped below the prior ,period..
Coffge wholesalers
A Look at
v
.
missiles,
computers
and
letter
sorting equipment, hold considerable promise for the future,
■
■
j.
x,
•
change in vpricesrin
v
cocoa occurred and
I
limited^trading, IA11
Cattle purchases
receipts-in Chicago slightly exceeded those of
prices,
•
1
in
interest
in
appreciably,^;
' *
•,
*
lagged &n<j prices declined: somewhat. Cattle
both the
missiles
?■; ernment business has increased to
from
more
was
slightly higher than a week earlier. There was a fractionql increase in hog receipts. Despite the-rise in hog prices,
lard futures prices dipped somewhat
during jtlie. week.
were
the
around
sluggish
Hog trading picked up and
.in.^ambs
is
reaching the pay-off
stage. Raytheon's backlog of Gov-
prior week
and tho-similar
period a year. ago. Vol,uine
/" again and prices were down
somewhat.
J
upsyrge
prices climbed
"
;
reported little
ago.
More than half of this
in missiles
in
with the
radar v and
remainder
other
r
electronic
equipment. Raytheon is the only
Cotton, futures prices on the'Ne W
*YoiiJ; Cotton Exchange fell '»• electronics company which has
; moderately'. ,This in
part was attributed tq'favorable weather and •> gained a position as prime con¬
crop reports and the belief that
Congress will pass new legislation
tractor
for
two
of
the
nation's
y/tq ,i>reyfint a sharp cut in 1959 acreage ^allotments. Cotton trading
most
advanced
interceptor1 mis¬
picked, up slightly at the end of the week/
/
siles,
with
complete
systems
-
,
;
V/
Trade Volume Last Week Held Close
Level but Was
Despiie.
-
sales
furniture, total retail
'
trade
week and
.
•
•
by
remained
declines
in "apparel
the Tevel
at'
and
of
outdoor
the
prior
a year ago.
Increased buying
apparel,'furniture and air conditioners was
most appliances and linens.
Sales of new
in
passenger cars were close to those of a week
earlier, but remained
well below last
year, according to. scattered
reports.
The total dollar volume ot retail trade in the
period ended on
Wednesday.of last week was from 3% below to 1% higher than
a
year
ago, according to spot estimates collected by Dun & BradRegional estimates varied from the comparable 1957
strcet, Inc.
levels
by
South
Central
the
following
•
-
States
0
South Atlantic and East
4%*; West South Central —1 to -j-3;
percentages:..
to
Middle Atlantic —2 to
-f-2: New England and West North Central
to
East North Central and Pacific Coast —5
7to —1; and
Mountain States —6 to —2%.
r
'—3
"
Father's
"
Day
of
a
year
'
chases
of
"
,
summer
suits.
in
interest
men's
Volume equalled that
purwere
dresses and sportswear. Over-all volume in women's
merchandise slipped slightly below the similar 1957 week.
Furniture stores reported moderate year-to-year gains in sales
of outdoor tables and.
chairs/dinette sets and case goods. There
was
'
promotions, stimulated
agG.
Appreciable year-to-year gains occurred in
boys' clothing. Best-sellers, in/ women's apparel
budget cotton
•
sales
sportswear, furnishings and
slight rise from the prior week in sales of air conditioners,
fans and lamps, but volume was less than last
year. While inter¬
est in floor
coverings improved during the. week, the call for lin¬
ens and draperies slackened.
Another rise in the buying of paint,
hardware and building materials prevailedl'
•
in
a
Grocers reported substantial gains from the
purchases of canned fish and juices, frozen
^
'
preceding week
vegetables and
Retail stocks of canned goods in many areas were
Interest in fresh meat and dairy- products held steady.
fresh produce.
:
limited.
1
and women's Fall
of women's Fall
Retailers
'
noticeably stepped up their buying of both men's
apparel the past week. The response to showings
dresses was good and bookings
Volume in women's Fall suits, coats '
moderately from the prior week. There were
substantial gains in purchases of men's Fall sportswear and suits,
equalled those of
and
jewelry
sportswear and
a
year ago.
rose
but reorders for Summer
what.
clothing lagged. Wholesalers
were some¬
disappointed in the orders taken for children's back-to-school
apparel.-
'
-
orders
unchanged
for
from
sateens
the
and
prior week. Despite
broadcloths, total volume
some
scattered
in cotton gray
/ goods lagged. A moderate rise in the call for wide industrial fabrics
.
_.
.v
a
,
volume of $400 million would ap¬
possible
pear
for
and
1959
a
doubling in volume from present
levels
seems
quite
attainable
within the next five
ings should show
proportionate
margins
a
even
as
Earn¬
rent
at
levels
less
is
stock
cheap
34
around
than
earnings
The
little
To
as
this
and
the
on
the
return
briefly to electronics
industry, we would like to
an
not
on
estimated
year,
close with the note that
the
which
stock,
earnings
few
is
selling
at
than 10 times estimated
this
for
pure
available
and
is
electronics
year,
should
it
of
issues
one
attain
a
higher price-earnings multiple as
fundamental
changes
that
have taken place in the business
become more generally realized.
International
Telephone
and
Telegraph is a worldwide com¬
munications giant with a substan¬
the
tial
stake
in many phases
of the
electronics industry. The competi¬
tive position of its overseas manu¬
facturing subsidiaries, which are
the major sources of the company's
sales and earnings, is comparable
to
that
in
the
held
by Western Electric
United
States.
Domestic
activities, which have been reorganized substantially in the past
expected to turn around
sharply this year and produce a
profit
of
around
$3V2
million
compared to a loss of $3 xk million
year, are
1957—a
"new
turnaround"
the company in the soundest com¬
petitive position in its history and
areas
of
have dictated
search
for
should
one
special
a
standards
Silencer Co.
position
how,
Maxim, long on patent
engineering know-
and
but
short
for
had
developed
shusher
the
time-
earnings,
dividends, product acceptance and
growth. As the President of one
of the country's
smaller, but better
established, electronics companies
^ag
"electronics knows no
boundaries, but as a matter of
interest, which include
lose
can
in
other
field."
tronics
money
than
Magic
business
electronic
good
more
electronics
in
the
as
be,
may
any
elec¬
picking
investments
re¬
quires only that most powerful of
all magic
incantations—good busi¬
sense.
With Standard Bd. & Sh.
(Special to The Financial Chronicle)
DENVER, Colo.—Olin E. Max¬
well
of
has
been
Standard
added
Bond
to
the
staff
Shlare Co.,
&
ground
jet
aircraft.
products was
its
among
Also
salt
a
evaporator to supply fresh
ships. Emhart has now
developed these water purifiers to
water for
nounced
Equitable Building.
When this
fall,
inundated
was
from
over
are
last
the
was
an~!
company
with
enquiries
water-short communities all
the world.
Thus far there
two of these
Bermuda
installations—hi
the
and
Virgin Islands/
The implications of Maxim's salt
water evaporator are such that
it
could conceivably/burgeon
into
Emhart's most important item.
Also acquired
during 1956
'•£
was
the Sky worker
Corp., with a line
of hydraulic aerial lifts used
by
utilities, municipalities, tree work-*
ers
and general industry.
Since
taking it over, Emhart has intro¬
duced a special mobile model for
factory and plant maintenance. /,
.Though most of these acquis!*
tions
made
were
the
with
additional
produced*
mcrease
present
in
common
equity
has
offsetting
an
Based
earnings.
on
shares,
earnings in 1949
were $0.93 and in
1957, $4.39. This
does not include the
equity in
Plax's earnings, which amounted
to $0.26 per share last
year. Capi¬
talization
term
consists
notes
million;
and
common
only
of
reduced
now
shares.
present
a
Book
long$1.1
862,029
to
value
per
present share has in this period
grown from $10.26 to $29.77.
y
The
current
accent
on
fected
ness
a
for
water
measures
you
management,
machinery
and
honored
fact
on
factor in industrial silencers
diesels and other
was a
quickly
faster
larger
a
ability of Emhart's manage¬
ment to spot a
bargain is nowhere
better illustrated than
by its pur¬
chase in 1956 of the
ailing Maxim
other
of
to
move
The
business
than
record $12.4 mil¬
a
plant.
stock,
those
business.
recession, with itl*
capital
goods,
of
sectors
However,
has
af¬
Emhart's
backlogs
such that 1958 results could
are
come
reasonably close to 1957's. At this
writing the stock traded in the
Over-the-Counter
market,
is
priced only
11 times this figure.
Almost any single one of Emhart's
products is interesting enough to
a look at the
company. The
array of these products, backed by
merit
Richard Selwood Opens
ILI O N
,
Selwood is
business
N.
Y.
Richard
—
conducting
from
offices
W.
securities
a
at
Rem¬
9
an
team, marks
unusually promising,
one-company growth package.
ing in
a
offices
.
Sixty-first
255-08
Avenue, New York City.
Form Suffolk
formed
Group,
with
rick Road to
BOSTON,
& Co.
Joins Harris,
been
offices
at
engage
in a securi-
190
Mer-
BOSTON, Mass.
Caruso
Via Lola.
has
joined
v
Richard P.
—
the
staff
of
Street.
H. L. Robbins Adds
(Special to The Financial Chronicle)
WORCESTER,
SPRINGS, Calif.—Harry
business
Upham
Harris, Upham & Co., 136 Federal
(Special to The Financial Chronicle)
ties
Inc., 85 Devonshire Street,
(Special to The Financial Chronicle)
Harry Grossman Opens
PALM
/
K.
members of the Boston Stock Ex¬
The
—
ties business.
Grossman is
Clyde
—
change.
has
Inc.
Mass.
Nichols is now with J. H. Goddard
Group
AMITYVILLE, N. Y.
Suffolk
(Special to The Financial Chronicle)
Opens
Silberfarb is engag¬
securities business from
at
as an
With J. H. Goddard
M. W. Silberfarb
Martin W.
astute management
Emhart
ington Place.
of
roughly $1.00 per share. Important
management changes have placed
its
22% in 1957 to
lion, and projected sales increases
by which to judge the electronics
f i t
of the
more
opening new markets,
ranging from serum vials to ceil¬
ing lighting panels. Its sales gained
cur-
selling
are
times
10
for
at
yield is more than 5%
regular $1.80 dividend.
larger
p r o
improving steadily as
internal reorgani¬
are
result
an
gain
years.
zation program.
in
Over-all textile trading slackened somewhat last week. Trans¬
actions in woolens and worsteds declined and sales of
carpet wool
were
responsibility for the Navy's airto-air Sparrow III and tne
Army^s
ground-to-air
Hawk.
Shipments
are
expected to rise to around
$325 million this year, up from
$260 million last year, and earn¬
ings should reach a new high at
around
$2.50 a share or better
compared to $1.70 in 1957. Sales
.
to Prior Week's
slipped fractionally below
of men's and women's
offset
promotions
T.
.
Fractionally Under 1957 Period
extensive
'
&
fundamentals. The shares
than double the level of two
years
is
$325 million level, up
million in 1957, and
$260
constantly
water sources.
..
'
Emhart designed machines; Is
on
a stage where
they can econom¬
ically supply whole communities
with millions of gallons of fresh
water daily from salt or brackislf'
export
May 3d, amounted to 1,467,755 bushels
Security
I Like Best
goods edged
case
frozen goods, frozen foods and baked
goods.
1 he index represents
the sum total of the
price per pound of
foodstuffs anci meats in
general use and its chief
function
to show the general
trend of food prices at
the wholesale level.
31
Re-orders for lawn tables and chairs and
Food
advancing in
corn, rye.
The
dishwashers
up.
corresponding
"
•
wholesale cost
during the week
beef, butter, cocoa, steers and
hogs.. On the down
side were flour,
^wneat, oats, barley, lard, cottonseed oil.
eggs
potatoes and raisins.
/>,/
' : \
ot> '
•
-
10
year ago.
Commodities
were
.
in the wholesale food pribe index,
Bi-a^treeb Inc., occurred the past week. The
$6.61 on June
to
,<e
.4
Continued from page 2
Wnolesalers in most major markets
reported a noticeable
rise during the week in
bookings in draperies and curtains. Volume
in linens and floor
coverings remained close to that of a week
earlier. While sales of air
conditioners, fans, lamps and refrigera¬
tors improved, the call for
laundry equipment and
Gains Last Week
'
MidAtlantic dyers and finishers
reported little change in
incoming orders.
63
engaging in
from
a
offices
securi¬
at
370
V.
Saulenas
is
Mass.
now
Robbins & Co., Inc., 37
Street..
•
—
with
Frank
H.
L.
Mechanic
64
It is
15
Continued from page
outsell
cases
us
and a?
—
Red China;1-land
their satellites publicly embrace
economic Warfare—we are finding
that we must take "a hew look,
Russia,
Soviet
realizing
'
efficiency and lower costs. I am
equally certain that, whatever the
course of automation, the people
in our banks will become more,
not less, important.
Machines
_
Your efforts to build
textbooks, in¬
crease orientation and skill courses,
techniques.
plan for ABA to invite
our
certain number each year,
with
expenses
paid, to
attend ABA
meetings of the kind in which
they will have an interest. We
state
associations and other groups to
do the same in connection with
tive
like
would
their
explore the possibilities of credit
toward degrees and the coopera¬
making with
the
New
York
State
Bankers
Association, the results of which
I am at1 the moment unfamiliar
the
interest
to
various
meetings, seminars,
conferences, etc. ABA will keep
ish
at
these
from
information
ords
are
you
but' much interested in, are
indicative1'of a realization of' the
need and a desire to find the an¬
swers.
We must accelerate and
rec¬
Such a plan
very great ex¬
pense.
ABA will stand the ex¬
pense for those it invites to ABA
meetings. We would hope that the
time.
any
effort
with
thb central records and will furn¬
will not involve
better
and
more
a
Forward Look, Forward March
In American Banking System
some
Chronicle
The Commercial and Financial
(2776)
thinking and our ef¬
our
forts.
of Bank-
The American Institute
ing, with its long and great Expe¬
rience, its prestige, its
unmatchable
its
know-how,
spirit, and
with
literally millions of dollars worth
of
material, is indeed the logical
qualified leader in the neces¬
coordinated educational ef¬
and
sary
fort now before
us.
,
I have full confidence
will
and
convert
that you
this
splen¬
didly i i designed '.^Forward Look"
with which you have been ab¬
can
the
for
sorbed
past week,
into
a
"Forward
March,"
assistance and coopera¬
and
I
pledge
tion and that of the ABA.
the customers want to know, and state associations and other groups Continued from page 14
can't evidence the sincerity that will pay the expense of those in¬
people will always like to see. So vited to attend their meetings. If
a major problem of banking will they feel they cannot, or that it
solely upon such advancements- continue to be the recruiting, ed- is preferable not to do so, they
and
improvements, as great as ucating, and training of bankers, might persuade clearing houses,
rely so strongly on scientific
technological ability to keep
us
in the top spot.
It is unfair
and
actually dangerous to rely
Thursday, June 19, 1958
.
to you my
increase
a
.
.
to
and
Rather, we must comthese accomplishments with
new determination on the part
a
of management
Most of the units of ABA are
engaged to some degree in work
in the field of banking education,
country organizations, or individ¬
ual
banks
All are doing good
erly looked after, made to feel at
work
work. However, we have felt that
home,
less
sufficient coordination to prevent overlapping and
needless duplication of effort, that
there are often educational matters brought to our attention, the
to
jurisdiction of which does
seem to be clearly indicated,
in some instances there is no
prepared to deal with them,
ABA
ity to outproduce - and outsell our
world
I
.competitors.
to say that I believe American banking has embraced
and is
maintaining just
happy
am
such
philosophy.
of
so
no
which has
business
line
succeeded
other
of
know
I
in
well
supplying
with the usual facilities
and services, plus so many new,
improved, complex, and helpful
services, at little or no increase
in cost, and has at the same time
steadilv strengthened its position,
the public
bankiim
American
our
system isthe eighth wonder of he
world
14 000
WOS.
banks and
There
are
yet
some
unex-
in the field of edu-
areas
It
is
Education Counc I
the
chosen
including
the Institute, interested in bank-
* give the broadest posible repreL'
'
Council
has
aMto'
SrcbomoaanyScCn "^anch tafassisSmce to
FDIC
banks;
Cliani,
Uiancil
and
member
and
members:
alio.
and
par
non-
of
however
contrary
emS
smooth,
k
markably
and satisfactory
formation.
We
,!
silent,
have
H
checks
the
the
melded
System, our
banking
re-
,?+
efficient,
of
flow
Federal Reserve
^respondent
have
we
enn
cor-
system,
iw,
T
..
1T„
,
„.+u
,T,„
few moments about one par-
SSUSSTdSli
of
activities
our
and our Problems and our under-
standing of theirs, the effect of
.
..
a+titudes
in the
reflected
as
^no meTLid
in
women
col-
legesmnd universities, the mutual
*7.
.
Srstandhm
our
j
It
.
hope
period
m it that
scc
Can
bettor
Arom-bettei
etc
earnest
r
.
'.
1H
and
of
everv
de-
vears
place
the public pays little attention and
sizes*
tvDes
types,
Tnd
and
khids ot
lands oi
banks
oanks
Professor of money and banking
and economies, atid courses elosely
onlyGthat' °it1 fimctioiis and related> has a greater acquaintJin
1!
*5 ance with bankers and the work
T ir ^
banking is doing. We know that
J
m?
olii
^ much hs been done along this
v3 ti lllion, each yeai, 90 /o of oui
wir
i
tHiiinn
+
,
+.
f
vwr
qne uv +jie T?eserve citv Bankers
b^1^pcl^nSW^<lvfv#»ll,^3 ^minion Association,
aWo
checking accounts.
We handle
$100 billion in currency and
coin each year.
We have well
over
$100 billion in loans outstanding.
We lend money for
everything from dental bridges to
over
tion!S
Am,
We DTOvide serrfces bv
no
windows
We
are
nance.
tcm
WP
work
should
and
fight
it
it
ho
to
,
and
wo
preserve
1
quite well^ aware of the
cost-price squeeze in banking, the
struggle for earnings to improve
our capital
positions and furnish
new and
improved services, and
this makes our accomplishments
ana
even
more
remarkable.
We cannot yet adequately eval-
tiatc
the
effect
of
mechanization
and
automation, but I have full
confidence that over the log pull
they will provide us with more
If other associations or
superiority.
Our
want
_
to
trv
tn
on
ear w
Lmkin "f
and''high
wita college
svs-
school
as
committee mem-
\i' cl
x
bers' aild as participants in
your
faculty and management conferences. I urge you to continue to
do this and to expand it wherever
claim, the
support this
To
tary.
Kremlin
that
boasts
it is today.
scien¬
more
therefore,
I,
maintain
a
record
of
the
names
is
be in the form of
this relatively
through on
carry
together and
simple and inexpensive program,
predict that within 10 years we
see
a
new
picture in the
relationship with educators and
their
attitude
toward
banking,
I
shall
a
,
boys and girls will have
understanding and appre¬
of banking, and that our
our
better
ciation
recruiting problems will be mate¬
and
other country. Heavy stress
being placed on research.
It is
generally agreed that Rus¬
economy
is growing faster
ours.
Today our industrial
sia's
than
three times
productivity is still
of the
that
We
Soviets.
are
told,
would
As
the
take
we
future,
see
we
nation
a
soon
million people, desir¬
to have 200
ing and requiring more and better
banking services.
We
see
thou¬
many
officers
bank
and
em¬
better educated, better
trained, and better experienced.
ployees
We
,—
see
need for the American
a
Association
Bankers
American Institute
the
and
of Banking to
bigger,
become
better,
and
rate of
our
market
fertile
utilize
and
to
the
intelligent
utmost
minds
to
work, think, plan, and explore.
No other organization is better
equipped for the task ahead than
the
Institute of
American
ing.
What
Bank¬
have is much too
you
wonderful
and
too
valuable
not
by many, many more
We must find a way to do
It is incumbent upon the senior
commercial
in
double
list.
a
The
ment
to
help
names
will
special mailing
would
period of time.
mean
in terms of
point—additional
the government—
to
is
expand
industry
last
revenue
commercial research substantially.
important. Before we explore
further, I want to empha¬
size that in suggesting a tax credit
of this sort, we are not joining the
this idea
who advocate a
parade of those
ried
reduction in taxes to simply per¬
the commercial research
alone
pense
—
I believe it is
cases
mit
more
afford it. Nolo
ing
a
in most
and
only the giants
ex¬
can
eminently
proper
to
the government to share this
ask
task with
to insure that
us
is
research
done
accomplished
has
on
is
it
broader front.
a
new
a
more
that
and
philosophy. It
actually
been voiced by the
Vice-President of the United
States in his speech to the Ameri¬
Newspaper Publishers Associ¬
can
ation
April 24, 1958, wherein
he stated, in speaking of the future
of
on
our
economy:
"Government Must Play
stantial
goals.
rather
in
part
Our
so
tax
that
than
sub¬
a
achieving these
system must be
it
will
encourage
We
spending.
mak¬
are
sound business proposition-
suggesting an investment on the
part of both government and in¬
will
What
of
out
it?
parties
which, both
dustry from
will profit.
government get
the
I
that
confident
am
million dollars invested by
the government on this program
today will return, several million
every
in future tax
collections tomorrow.
Today We
Arc Exploring, with
hope and some apprehension, the
possibility of a planned disarma¬
ment. Certainly it is pertinent to
raise
the
question:
What new
products and services can we de¬
velop in our civilian economy to
armaments?
continue its invaluable service
banks
our
to
willingness to
instructors
support
and
among
senior
of
a
officers.
AIB
people
ing
as
May
I
are among you
great number
Year
by
year
numbers
in greatly increas¬
assuming manage¬
responsibility in our banks.
As you move into such
positions,
please don't forget or neglect the
are
ment
Institute.
tional
stimulate
methods
number of
and
the
conven¬
of
increasing the
chapters, study groups,
correspondence students.
our
But
use
we
brains for
energies to this, en¬
correspondent
great
our
system to aid
greater
We
us
of
our
and make
school people.
rack
our
methods and
new
must
new
more,
also
curb
business
must
aged and stimulated
pumping
new
into
be
so
encour¬
that it
can
of
that
we
are
billion per year
spending on
This is the type of
now
.
long-range planning that govern¬
ment and industry should be con¬
sidering and implementing.
free
our
blood and
new
ideas
enterprise system."
Eisenhower, speaking
S. Economy this week,
President
members
your
not here
are
serve
leaders.
and
point out that there
invited to and attended
also be used for
confident
am
research
Small
they
were
I
short
a
program and to participate
actively in it. We must develop an
courage
where
tax credit that
replace the $40
of
must lend
banker meetings.
in
new
initiative,
ingenuity, enterprise and energy.
officers
as
and
research.
Now that
The Time Has Come for govern¬
revised
this.
formation
when
sug¬
that, with this incentive, activity
growth.
Government Encouragement
This is not
stronger.
must
am
Up to this time, industry has car¬
need for
a
of
sands
a
I
apply to both product and
What that would
forward look into
a
research.
however, that most Russian indus¬
tries are increasing production fresh ideas, new products, greater
annually at the rate of about 10%. business, and additional tax rev¬
We are still ahead, but the only enue to the government, stciggers
certain way to stay ahead is to the imagination.
accelerate
More Bankers Will Be Needed
and home address of these people,
qii sucb records, we will keep in-
to
the
gesting that this incentive should
Institute
planning to obtain and
that
propose
commercial
them.,
possible; also, to invite as many
It is highly desirable that indi¬
people as possible to ap- vidual bankers, the ABA, and the
ABA is
we
work and the more creatively we
Officially has
think, the greater our rewards will
challenged us on production. Nibe.
This is the basic concept of
kita Khrushchev many times has
our free,
capitalistic economy.
said in public that the Soviets will
Without such an incentive to spur
out-produce the United States on
all fronts—civilian as well as mili¬ us, this country would not be what
Russia Flatly and
in any
to
will all join
we
school
pr0priate meetings,
the
on
The harder
try, business, and agriculture than
If
your
has
I know that
they have served
Operates
increased
a
^stitutp
been for years
the
mm-
it
Country
incentive system.
mercial front.
•;
..
available
including
others,
and
a
.V
•
tv
-•
i i:
Need for Incentive Today
•
.
government provide industry an
incentive to improve and enlarge
banks.
klep records and
dllla\e 'nd expand it
femTtic sustS basis
,
I
addresses.
to be used
walk-
our sys-
mercial research and
in commercial, research
to
insure economic
,en,gineer&Mare being
trained and graduated into indus¬
who
department
are proud of
it an
U micHm Drove
a
improve
I
in
order
in
tists
struetors on apta'opriate subjects,
our
lobbies
as study group instructors, austores of ft-!
contributors for your
We
as
will
and
to invest
banking groups should have need
for this mailing list, it will be
here
and
home
their
at
chapter in-
in
and
materials
a group,
material to
such
mail
we
state associa-
many
tele- *aculty
'^,s SY r'®;
depoS'tories drile
i
^'le
Srkitchln'rangesto fattTewS
ons
or
special interest to such
that
We
know
in
..
lieve it proper
tax
•
understanding
clearing houses, and our banking
organizations in such a way that
sizes,
<.;
however, we do be¬
for our government
superiority;
,
products generated by com¬
supported by
long-range planning by both gov¬
that ernment and industry on the com¬
"Banking,"
have studies
we
living.
new
these
send
higher
our
In order to
increase our productivity, we need
new
tools, new techniques, and
of
standard
us.
rially diminished.
pon(?a „n0|f
abroad Iccustomedlo Tfew'sTm" lor
Sar lhghly eentrahzed and tightly
JfvJI «iU%ui
various state and
st'linnk
whpn
lnnlfitut
nonpar
to
way
magazine
when
The other 11 members
groups,
a
no
for
desire
further
our
find
to do that.
Therefore, we have recently established a new Council on Bankhig Education with Ev Reese as
from various
is
association
the
that
educators at their home addresses
that
company,
but
doubt
There
business.
banking
with them will also be good
feel certain that ABA will be able
..
r^
Federil Res°e?vl meUerLdnonl
o
>
.
a
fountainhead; of
the
and given an opportunity
what we are doing in, the
see
them
n
large banks and small
are
there
plored
cation.
not
and
unit
and
anoroximatelv tag education, and in a manner
have
We
that
not
of this new Council were
Eighth World's Wonder
Truly
is
Chairman.
•;
r
,
very
in this field.
there
Key to
would
We
heavily involved
Many
are
this.
do
to
that special effort is made
to see that these guests are prop¬
hope
and labor to educate and train themselves better,;
harder, produce more, be
wasteful, and hold the line
better on prices. If we do that, I
have no fear concerning our abil-
••
Incentive Commercial Research
they are.
bine
i
on
the U.
had this to say: "The best hope
of continued progress and growth
is for business to keep offering the
American
consumer
something
Possible Avenues for
Let's
few
consider
possible
for
avenues
Research
moment a
a
for commer¬
cial research.
Think
would
for
a
to
mean
what
moment
all
of
us
if
it
we
develop
an
economical
Creating better values, in process for converting salt water
Think for a
turn, calls for imagination and into fresh water.
vigor in forging ahead with new moment what a stimulant the de¬
and
improved product develop¬ velopment of all of our new energy
ments, and in product and market sources—nuclear, solar, and chem¬
research."
ical— and the
storage of these
better—and this
means
better val¬
could
ues.
We
ment
are
told
budget
that
the
for fiscal
govern¬
1958
was
$3 billion for research and devel¬
opment, with $300 million going
non-military activity. We do not
question the propriety of spending
to
such
large sums
development to
on
research
insure
and
weapon
energies would be to
well
as
as
to
Think for
our
economy
the world.
a
moment what dou¬
bling the amount of
commercial
would
transportation,
communications, and health. Those
research in electronics alone
do
for
m Al'A
education,
-PTI wvilint*
AT*
ITtnllS'*
.
Number 5752
187
Volume
.
.
The Commercial and Financial
Chronicle
.
(2777)
tries
could
cite
the
effect
emphasis' of research
greater
commercial
products for
their industries.
quick
,„Two
collisions and
on
each
demand
are
aircraft
accidents and deaths
highways.
l)no,
let's-take a look at
our)own industry as an
example
of the probleirt that I have been
attempting to describe.
I cannot
time
a
have
radio
had
to
ahead
to in
did
we
we
the
were
television.
could
we
At
At
time
looking
the
time
we
had black and white
we
were
looking ahead to color.-We
color
have
—
1
I
have
market
had
research
tax
our
by
people
Continued from page 16
credit
would
be.
It
is
their
are
ur
I
which
has
cated -for
now
yet
to
reach its full marketing impactbut after color, what?
K
used
were
This
our
charged with seeing that it is
completely.
Tax
Credit
ministered
by
it
be
Treasury
De¬
all
as
other
worth
Obviously, there could be con¬
siderable difference of opinion as
industrial
incorporated in
same
,
plants
clients.
all in the
were
time, I think
for
Since
boat
same
we
can
a
we
the
at
collec¬
tively and quickly recount
some
product
and
market of the construction difficulties of
I am confident, how¬ this recent period. Remember the
,
considering; the stakes in¬ trouble we had getting structural
industry,
the volved to the
well-being of our steel, remember the delays in deautomobile industry, and the ap¬
nation, that any of these differ¬ livqiy of process piping and elecpliance industry cannot expand ences can be resolved and
that we
television L
The
ever,
-
tncal
basic
the
significantly
economy
merely through replacement sales
or
by putting new dresses on old
;concepts.
.
We
need,
basic,
i: new
ideas and we need to expand our
markets' through the stimulation
of
planned obsolescence.
Our
ples
Industry
of
has
many
products
new
<
exam¬
resulting
from research and its stimulating
effect on growth and
expanded
employment.
sider
For
have
con¬
Here
we
industry whose sales
new
a
forecast
are
instance,
semiconductors.
to
be
$1
billion
by
1961.
Significantly, it has not
injured the existing tube industry
because new applications and new
usages were found.
Research Costs Big Money.
days
are gone
like
Lee
hours
in
Audion
search
when
deForest
a
long
shop to develop the
Today it takes re¬
teams, but we should hot
position where
only ourMg corporations can af¬
ford commercial research.
The
reaction
I
have
received
from people I have talked, to about
idea
has
encouraged me to
spend considerable time with our
tax
and with no
they
are
particular claim that
the complete answer.
This is my proposal:
Specifies
Tax
Credit
Plan
eral
taxes
amounting to 35% of
spent on approved
amount
research and
mercial
development of com¬
products and services—
this 35% tax credit to be over and
above the fact that such expendi¬
tures would be recognized as nor¬
mal business expense.
«I
Propose That the approved
expenditures for any company be
limited to 1 % of the corporation's
gross sales and that the tax credit
limited
to
35%
of
such
ex¬
culties
a
expand
that
our
if
the
do
vitalize
to
I
the
trades
have
may
for
news
of
some
you—those difficulties do not exist
and
to
were
building
your construction program.
I!'believe today!
economy.
proposal
with
during
by-product besides
advantages that expanded re¬
the
tie
V'.
firms
The
great number of small
a
desiring
and needing re¬
but without the facilities
flow
needed
of
into
funds
colleges and universities.
not
expand
I
our
need
purchase
how significant it
a revitaliza-
on
savings
would be to stimulate
tion of
in
I
Am
idea
I
have
should
be
mitted
to
that
the
presented
to
my
wage
hours
—not
of
We
we
cannot
must
have
But
a
a
lot
materials,
vention
new
were
and ;
in their in-
used
incorporation
into
plans.
Modern construction equipment
and
the
modern
constXtion
methods which they make possible is certainly worth noting here
Delivery on fast and efficient machines for excavation, foundation,
economy.
bloodstream
the
to
strong
To
The
incentive
tax
hours
power
now.
driven
-
10 years ago.
Enough for the modern tools of
which
on
are
available
the construc¬
projects of today.
Now I would like to relate these
to
this
1,000,000—
2,000,000—
the
Vost^oT
local
labor
But
scales
formance
5,000,000—
7,500,000
10,000,000—
25,000,000
50,000,000—
100,000,000—
142,850,000—
75,000
100,000
250,000
500,000
1,000,000
1,428,500
200,000,000— 2,000,000
500,000,000— 5,000,000
"Limited by
1 % Limit
=53% S. B.
Research
960,000
2,400,000
500,000 maximum,
better world of tomorrow.
=35% of
4,800
9,600
24,000
36,000
48,000
120,000
240,000
480,000
685,680
10,000
20,000
50,000
-
.
when
specter
hem8' a deterrent to capital
called
re-
capital
pansion,
expansion
ex^
is
a
deterrent to recession.
I
heartened by a recent
am
ure
published
Commerce"
fig¬
in the "Journal of
which
shows
that
plans have been made for $34 bil¬
lion to be spent on new plants and
equipment this
not this
is
Whether
year.
or
exaggerated or un¬
realistic figure I cannot say, but
new
plant construction contracts
placed so far this year would seem
to
an
it.
belie
However,
I have no
large volume
expansion on the
doubt that there is
of
Now Is the Time to Build
factors
things!
fusion that instead of recession
than his predeces¬
help cut costs
re-
^uires in his particular scheme of
general
mat-
been developed are
whittling down the time required
to get your, plant into operation,
There is better scaffolding. Just
as important as the modern equipment, the contractor today has a
higher level of intelligence with
even
America
for
tools
a
recently
or
finger
whatever else
of
smaller-
only
construction work or erection of
mechanical equipment which have
had 20,
watches,
or
man
The
and structural work is
of
clothing, wrist
howls, neckties,
a
plant
drafting tables or in a cubby-hole
behind the vice-president's desk.
new
The
of
process
ion,
s
capital
successfully
if
expan-
followed,
cession which is supposedly a de- would of course contribute a great
terrent to plant expansion today, deal to end the present unemploy¬
I have tried to make the point ment, bottom out this recession,
that now is the time to build from and hopefully start our economy
the standpoint of plant construc-
the
on
way
again—and in
up
so
a
^
r^ew
However,
credit that I
Tax Credit
—48%
in-
our
v/ould provide this stimu¬
lant, not only for today but for a
to Govt, of
=1%
Sales Billed
you
other
ac¬
of
propose
Research at
1 % Limit
program,
many
tion costs but perhaps equally im- doiiv»'^perform^a double purpose^portant I would like to emphasize
djrect benefit to the cornthat now is the time to build in
building
plant at a
order to forego further recession. {im| that may be the most ec0I believe that the problem of a nomjcai within the foreseeable
raising those wage scales. Prob- business recession is a business future, and also be of indirect
ably the wages will be raised, problem and should be resolved benefit to the process of curbing
.
to Co. of
Credit
construction
a
labor factor just as mainly by business.
Seemingly the recession.
important as the hourly scale is one of the outstanding features
what I most hope that we don't
the availability of good building of this purported recession is un- do_and this time I mean 170 mileconomy, we need a continual flow craftsmen and the
efficiency of employment.
Facts and figures Hon people_is to give the Fedof new products, new materials,
these men.
seem to indicate that if we ehmi- eraj Government a cost-plus connew
ideas, and new techniques
When we in the engineering and nate
unemployment,we elimi- tract to
n ug out 0f the recesfrom all phases of our economic
construction business estimate the Jla^e
lecession.
sion.
life.
Expanded
commercial
re¬
cost of a new plant for - a client,
There is no better way to elimisearch is essential to accomplish
and endeavor to stick to that cost nate unemployment than by acJoins Daniel Reeves
this objective.
Industry today is
estimate during construction, the celerating
building.
And plant
(Special to The financial Chronicle)
in a vise of rising costs and lower
efficiency of the building trades- expansion has become a major
LOS ANGELES, Calif.—Martin
profit margins and cannot afford men is
probably the most prob- facet of the building business. The
to expand its research without a
S.
Phillips is now with Daniel
lematic item.
We can easily and building of $130 million worth of
new
stimulant and a new incen¬
Reeves & Co., 398 South Beverly
accurately estimate the cost of plants represented in the factory
tive.
Drive, members of the New York
materials and fairly well estimate awards competition directly and
expanding
Research at
Research
Subject to
plant
indirectly aided
we take a close look
what capital expansion means
to employment, or to the elimination of unemployment if you
Prefer, and to production in gencral>. we can syllogize with a con-
of
the
based
.
.
on
efficient
trades
is
.«
going
per-
what
ncitq
rh/i
t'onrice idn
.
and
Pacific Coast Stock Exchanges. He was previously with
in Henry Hartman.
indirectly generated approximately $60 million in salaries in nearly
every
conceivable
industry
watch for in our America— not
including work
cost control department. In short, created for the building craftsmen,
whichever
is
the
lesser.
Our industry has become synony¬
(See
we
try to reduce the number of architectural,
engineering,
and
mous
with the economy and the
Table.)
hours necessary to complete a job. other professional personnel who
I
won't
bore
you
with
the society of tomorrow. There is no
The
factor of labor perform- helped build your plants,
arithmetic of this program; how¬ other industry where expanded
ance is probably the most gratifyIt generated employment for
ever it is most interesting.
You commercial research would mean
will find in analyzing it that a as much to the economy as in ing of all in the building industry the steel industry, the hardware
today. And surprisingly enough, industry, machine tool industry,
company doing up to $100 million electronics. We in electronics are
the craftsmen seem to be as happy the insurance industry, the roofing
a
year and now spending 1% of the logical people to take the lead.
about it as we are. The fact that industry, the glass industry, the
its gross sales on research could, Let us in industry get tuned in
there is a
great availability of electrical and appliance industry,
under
with our own destiny.
this program,
expand its
craftsmen at this time may have transportation, the paint industry,
some bearing.
the office furniture industry and
TAX BASED ON RESEARCH LIMIT OF 1 % OF SALES BILLED
Net Cost
Another factor of major impor- even the rug industry. I am quite
Normal Cost
Normal Cost
Limit of
penditures for $500,000 each year,
six
see
MqSraw
the modern
building project. Although wage scales
appear to be fairly set at the moment, we know that the various
building crafts are desirous of
our way
fail.
scales and number of manof the construction crafts-
by "Factory Magazine," I
Company in
its various construction programs
materials
into believ¬
required to complete
men
proposal.
just physically, but
life.
succeed
old-fash-
Some contractors find
with the new
nation that
tion
disturbing' costs
in
plant construction is that of
labor—spelled out, that means the
Battle for Survival
a
be lulled
new
fault
construction
One of the most
Reviews Proposal
We Are in
Frankly we in the Mc¬
Company like to build in a
But don't
just how this incentive tax
review
by
ing that this ideal situation is go¬
ing to last for a long period. It
may not last very long at all.
in
credit could be applied.
Let's
generated
are
industrial which the
dustries by virtue of the fact that
ingenuity and should be handled the construction men went out and
with the same vigor and determi- purchased
automobiles,
homes,
to
our
government for study and
adoption, not only by our indus¬
try, but by all who qualify. I will
be glad to elaborate on this sug¬
gestion. I have some illustrations
as
being
May Not Last Too Long
and
people
proper
of
are
period like' this.
implemented and sub¬
the
only in the
materials but great
an
however they do represent initial
sor
basic
can
not
these
which to work
Graw
on
Confident
found
tion.
of
of
selves.
commercial products
universities.
our
board feet of lumber*
poured 250,000 cubic yards
we
during the past two years has purchased
products, or
equipment"
present problems to the contrac- from.
tors in that they cause
jurisdicI would like to point out that
tional labor disputes.
Also they through the direct wages paid to
require new methods of applica- construction workers during your
Some
the construction contractors them¬
technical and market¬
our
ing effort
be
to
are
t}Je clients building
Plant today who want
ioned gold doorknobs..
ter
great availability of matevials, labor, and equipment makes
it a pleasure to build new plants
search,
in this year of our Lord, 1958. But
and manpower to pursue it, would more
important is the fact that
turn, naturally, to the universities. substantial savings can be effected
Thus,
we
accomplish
a
much by building now. These savings
adopted,
celerate
Propose That corporations be
given a direct credit on their Fed¬
be
is
search, would
and
I
the
There
people to
develop a possible
plan to implement this thought. I
suggest the following broad out¬
lines merely as a place to start,
equitable,
effective program.
a
a
clear,
a
equipment. And you will
pi obably
remember some diffi^
single man
worked
develop
and
The
tube.
continue to be in
this
can
million
»^he,new and eld wishes porations whose plants the 10 been
ihate^ffi'^oohing over have cor: Naturally, the chent s
pret,ty must bq, considered—but few
guessing
of;industrial
dozen different
the definition of "commercial and
research."
am
construction of nearly $250 million
special tax considerations.
to what should be
I
LcH
"
r
1
factory Magazine" got uncieiway about two years ago. If so,
that was about the same time that
the
McGraw
Company initiated
ad¬
same
•
by
-
could
the
partment—the
if,
research
+1
think
close when I say that
construction
of each of the 10
plants honored
government allo¬
military
15
and
esti¬
proximately T $9,00 million
or
roughly }h of the total $3, billion
budget that
miles of electrical wire and
cable;
Now Is the Time to Build
mate that it would amount to
ap¬
65
last two years
purchased approxi¬
mately 50,000 tons of steel; 2,500
do
some
research to determine just
how much this potential total'tax
not
electronic
our
products.
consumer
we
when
something which
look forward
and
75%,
—
Hqwever,
recall
product
of
that
areas
attention
immediate
Of}
of
Cost
3,500
7,000
17,500
26,250
35,000
87,500
175,000
350,000
499,975
5,200
10,400
26,000
39,000
52,000
130,000
260,000
520,000
742,820
1,040,000
2,600,000
:::500,000
-500,000
' VIJ.JF
we
to Co. of
Research
reducing is the world SUre
you
could
name
several
of new building
materials now other major and minor industries
readily available, at relatively low that received large production 01*cost, for the 1958 industrial plant. ders as a result of your new plant.
There is an abundance of gleamFrnt.ftmv
tance in cost
on
Proposed
Basis
1,300
2,600
6,500
9,750
13,000
32,500
65,000
aluminum products available
—one
of the most interesting of
is
corrugated or embossed
aluminum, sandwich
panels, easy
install, long lasting, perpetually
attractive, and a contribution to
to
good design. The plastics and ceramies industries have developed
some
interesting
new
products
185,705
(
|#jf&KSKH9HBEB
•tsawsstesu
show
their
ingenuity in putting
j
believe
I
can
safely
HOLLYWOOD,
a
Grueber and
II.
have
^
rill
Calif.—William
Oscar W. Weber
with Mer¬
become affiliated
Lynch,
^
^
Pierce,
Joins
Fenner
&
Boulevard,
_
smitlT 6353'Hollywood
_
Bennett-Manning
Chronicle)
(Special to The financial
ANGELES, Calif.—Robert
Bennett has become connected
LOS
j
wbh
Bennett-Manning Company,
^7 Beverly
With
Boulevard,
Dempsey-Tegeler
(Special to The Financial
quick check in our
— * »—1
LOS
say—
though at the risk of picking a
quarrei wfth the automotive in¬
dustry—that the construction industry has more supporting industries than any other particular
industry in the country.
Making
Lynch
(SpeciRl to The Financial Chronicle)
Supports the Economy
ing
which
Two With Merrill
.
,
130,000
*460,000
'•1,900,000
constantly
-r
that the McGraw Company m the
T.
Olmsted
is
with
Tegeler & Co., 210
Street.
■
D
Dempsey-
West Seventh
,'
Dean Witter
LOS
Chronicle)
ANGELES, Calif.—Roscoe
Adds
ANGELES, Calif —Joseph
"Ryan" has
been
added to the
Irissr*
South Spi into btieer.
m
Financial Chronicle
The Commercial and
.
Thursday, June 19, 1958
.
.
(2778)
66
* INDICATES
Securities Now in Registration
Air Craft Marine
Albermarle Paper
Va.
June
$3,500,000 of 5%% convertible subordinated
debentures due 1978 to be offered for subscription by
holders of the company's class A and class B common
stock at the rate of $100 of debentures for each 20
held of record
June 20, 1958.
Price—To be supplied by amendment.
In addition to the debenture offering, Albemarle Paper
and two of its subsidiaries, Halifax Paper Co., Inc., and
Seaboard Mfg. Co., have agreed to sell privately to two
insurance companies $10,500,000 of new first mortgage
refunding bonds. Proceeds—To be used in part for re¬
funding of debt and payment of bank loan, and in part
for new productive facilities.
Underwriter — Scott &
Stringfellow, Richmond, Va.
A
class B
or
Allied Laboratories,
rights to expire on July 11.
common
.
Oil Co.
American Durox Corp.,
Englewood, Colo.
plant and establishment of the business at Tampa, Fla.,
including payment of the balance due on a plant site.
Underwriter—I. A. I. Securities Corp., 3385 S. Bannock
Street, Englewood, Colo.
\
(6/25)
filed
1958, at the rate of one additional
24,
and one-half shares then held; rights
Price
—
Proceeds—For working
To be supplied by amendment.
capital. Underwriter — Merrill
Lynch, Pierce, Fenner & Smith, New York, and Pierce,
Carrison, Wulbern, Inc., Jacksonville, Fla.
American Houses,
Inc.
notification) 27,575 shares of 5% cumu¬
lative convertible preferred stock.
Price—At par ($10
June 3 (letter of
per share).
Proceeds—To improve the company's
current asset position.
Office—South Aubrey &
South Streets, Allentown, Pa.
net
East
Underwriter—None.
American Mutual Investment Co.,
Underwriter
None.
—
Sheldon
Magazine,
1201
Highland Drive. Silver Spring, Md., is President.
^American Natural Gas Co.
participations in the Natural
Gas System Companies Employees Savings Plan, and
48,633 shares of common stock (par $25) of the company,
June 12 filed $6,000,000 of
Anderson Electric Corp.
(letter of notification) 14,700 shares of class B
stock (par $1). Price—$12 per share. Proceeds
to selling stockholders. Office — 700 N. 44tb
Street, Birmingham, Ala. Underwriters — Cruttenden,
Podesta & Co., Chicago, 111.; and Odess, Martin & Herzberg, Inc., Birmingham, Ala.
Dec. 23
go
Anita Cobre U. S. A., inc.,
Phoenix, Ariz.
Sept. 30 filed 85,000 shares of common stock. Price—At
share).
Proceeds—For investment in sub¬
Underwriter—Selected Se¬
sidiary and working capital.
curities, Inc., Phoenix, Ariz
Arden
holders of outstanding common stock at the rate of one
share for each five shares held
of this
—
Bankers
Bond
Louis¬
Co.,
on
the effective date
registration statement.
Price—To be supplied by
amendment. Proceeds—To pay off an equivalent portion
of the company's current bank loans which, at May 15,
1958, amounted to $8,450,000.
.
Arkansas Western
Gas Co.
assets of Orlando
Co., Inc., Florida Service Corp., Billups Petro¬
Georgia, Inc., Billups Petroleum Co. of N. C.,
Johnson,
Lane,
Counselors
Feb.
Underwriter—None.
'
•
Co.'/V
Edison
2, 1958
on
common
the basis of
costs and other
stock outstanding.
Rights
ex¬
June 5
Underwriter—None.
.
These
,
31,
Calidyne Co.,
1958
Southern
Petroleum
Ltd.
(6/23)
Jackson &
Calgary,
immediately prior to such offering.
corporate purposes.
Office —
For
general
Alta.,
Canada.
—
Underwiflter—None.
Price—At
($100 jper share).
par
capital. Office—501 West 44th
Underwriter—None/
i
'■
.
.
j
other corporate purposes. Under¬
Seattle, Wash.
/
,
.
/
,
V
\
Z;
-
\
//
~
/
the
basis
of
share
one
each
for
eight shares
16,- 1958. Price—At par
($10 per share). Proceeds—For a construction program.
Office—112 West Elm St., Sycamore,- 111. Underwriter—
None.
j
Rights expire July
Denver Acceptance Corp., Denver, Colo.
May 19 filed 1,000,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—To engage, through one
subsidiary companies to be formed or acquired,
of writing life, irrurance and annuity
policies. Underwriter—DAC Securities Corp., Denver,
or more
in
r
the
business
Colo.
,
Derson
r
Mines
y
Ltd.
,
'
June 5 filed 350,000'shares
per
share.
Proceeds—-For
.
>
~T
;
r
of common stock.
new
Price—$1
equipment, repayment
of
other
Office—Toronto, Canada, and Em¬
loan, acquisition of properties under option, and
Stock Exchange
Proceeds
on
held.
now
1957.
fice—Fayetteville, Ark.
can
■
DeKalb-Ogle Telephone Co. J f '
■
r~\
May 29 (letter of notification) 22,024 shares-of common
stock to be offered to stockholders of record June 16,
Underwriter—None.
Canada
"
,
29 filed
Co., New York.
ag¬
derwriter—'None.
•
;
Dayton Aviation Radio & Equipment Corp. (7/1)
May 28 filed 500,000 shares of common stock (par 50
cents). Price—$1 per share. Proceeds—For general cor¬
porate purposes.
Underwriter — McDonald,. Holman &
$1).
Campbell Chibougamau Mines Ltd.
March 10 filed 606,667 shares of capital stock (par $1).
of which 506,667 were issued in connection with the ac¬
quisition of all the assets of Yorcan Exploration Ltd
(latter proposes to distribute said shares ratably to its
stockholders of record Dec. 16, 1957).
The remaining
100,000 shares are to be sold for the account of the Estate
of A. M. Collings Henderson on the American and To¬
ronto Stock Exchanges.
Price—At market. Proceeds—
To selling stockholders.
Office—Toronto, Canada. Un¬
/
;
writer—Herrin Co.,
The notes are convertible at
any time after July 1, 1958, until the maturity or prior
redemption of the notes at a conversion price of $4 per
Dec.
corporate purposes.
and drilling costs and
limited partnership, which notes were assumed by the
company
St.
Corp.,
1,156,77.4 shares of common stock (par 10
cents), of which 630,000 shares are to be offered for ac¬
count of company and 526,774 shares for selling stock¬
holders.
Price—At market.. Proceeds—For exploration
Jan.
gregate principal amount of $923,500 of 10-year 3% con¬
a
Sales
Daybreak Uranium, Inc., Opportunity, Wash.*
Inc., Winchester,. Mass.
vertible subordinated income notes of the
.
Proceeds—For working
Budget Finance Plan, Los Angeles, Calif. (9/3)
June 10 filed $1,320,000 6% serial preferred shares ($10
par). Price—To be supplied by amendment. Proceeds—
To be used in conjunction with proposed merger of com¬
pany and Signature Loan Co., Inc. Stockholders of Budg¬
et Finance will vote on proposal Aug. 5, 1958.
Under¬
writer—Shearson, Hammill & Co., New York. Offering
—Expected in September.
filed 230,875 shares of common stock (par
shares are issuable upon conversion of an
Research
.Brothers, Inc.
'/■/:"///''>
/■
(letter of notification) 1,400 shares of $6 cumu¬
Ave., Denver, Colo.
•
Calidyne Co.,
(par one
Proceeds—For/investment.
/■^//•///•/
lative preferred stock.
1958.
(Total offering 21,664 shares and
Eastern Utilities Association, a single majority holder,
will purchase unsubscribed shares as well as its prorata
allotment). Price—$65 per share.
Proceeds—For pay¬
ment of notes to banks.
Louis, Mo.
St.
stock,
of capital
Davis
share for
one new
Inc.,
Fund,
shares
filed./100,000
767,838 units of voting trust certificates,
each certificate representing the ownership of one share
of common stock (par one-half cent)
in each of 24
Cuban companies.
Price — To be supplied by amend¬
ment. Proceeds—For capital expenditures, exploration
pire June 24,
4
.
March 31 filed
".////
•>/'"/
5
Havana, Cuba :•
(letter of notification) 538 shares of common
(par $25) to be offered to minority stockholders
June
j
Cuban-Venezuelan Oil Voting Trusts,
(6/19)
Lines, Inc., Las Vegas, Nev.
May 20
stock
,
.
Louis.. Robert H. Green is President.
'
May 29 filed 470,000 shares of common stock (par $1).Price—$2.50 per share.
Proceeds—Together with pro¬
posed borrowings, for repayment of loans, for working
capital, and other corporate purposes. - UnderwriterWilliam R. Staats & Co., Los Angeles, Cal.
,
\
Brockton
1
.
Research
centf.
Price—At market,/
Underwriter/— Counselors
multiples thereof. Price — At par. Proceeds — For
working capital. Office—1939 E. Burnside St., Portland,
and
Bonanza Air
'
•
(6/25)
Underwriter—Netherlands Securities Co., Inc., 30
York./
/
poses.
Broad St., New
May 26 (letter of notification) $300,000 principal amount
of 6% promissory notes in denominations of $500 each
Ore.
'
Industries, Inc.
April 16 filed 280,000 shares of common stock (par 10
cents). Price—$2.50 per share, Proceeds—To pay bank
loans and for working capital and other corporate pur¬
V
May 21 filed voting trust certificates for 400,000 shares
of capital stock (par $1—Canadian). Price—To be related
to the current market prices or quotations on the Ameri¬
Cosmos
Finance Co.
Neal
&
The
be supplied bv amendment.
Proceeds — To
fefinery/ Underwriter—Lehman Brothers, New
Offering—Indefinite.
York.
Inc, Billups Petroleum Co. of S. C., Inc., Florida Friend
Oil Co., Inc., and Your Friend Oil Co., Inc.
Office—
May 5 filed 55,774 shares of common stock (par $5) to
be offered for subscription by stockholders of record
May 28, 1958, at the rate of one additional share for each
10 shares then held; rights to expire on June 17 (with an
oversubscription privilege). Price—$15 per share. Pro¬
ceeds—For property additions and improvements.
Of¬
Underwriter—None.
Price—To
leum Co. of
—
mortgage bonds due
first
of
$25,000,000
1,
construct
Proceeds—To acquire all of the
Jacksonville, Fla.
Underwriter
Space Corp., Savannah, Ga.
Refining Corp.,
1968, $20,000,00 of subordinated debentures due
Oct; 1,. 1968 and 3.000.000 shares of common stock to be
offered in fin its as follows* $1,000 of bonds and 48 shares
of stock and $100 of debentures and nine shares Of stock.
(6/25)
Co.
filed
16
Dec.
Sept.
Eastern Petroleum
-v
-
Commerce Oil
of 7% debentures due July 1,
1993, and 650,000 shares of common stock (par $1) to be
offered for sale in units, each consisting of $1,000 of
debentures and 20 common shares. Price — $1,000 per
Fuel Oil
the notes.
Pa.
May 29 filed $2,500,000
share.
Farms Co.,
Los Angeles, Calif.
June 4 filed $3,000,000 of 5% subordinated debentures,
second series, due July 1, 1986 (convertible until July 1,
1968), together with 172,162 shares of the company's
common stock (par $1) to be offered for subscription by
new
Underwriter
plus .interest,-if any,
Underwriter—Harrison & Co., Philadelphia,
aggregate price of $1,215,000
an
on
Inc.
April 14 filed 8,934 shares of common stock. Price—Ai
($100 per share). Proceeds—For general corporate
common
per
•
purchase fiont Eastern Shore Natural Gas Co., a sub¬
sidiary, its $350,000 of 25-year 6% convertible subordin¬
ated notes, $245,000 of its 25-year subordinated notes,
and additional shares (unspecified) of its common stock,
par
purposes.
(6/24)
Chesapeake Utilities Corp.
$700,000 of 6% debentures due 1983 and
114.030 shares of common stock .(par $2.50), the deben¬
tures and/42,000 shaves of stock to be offered in units
consisting of a $100 debenture and six shares of stock;
the remaining 72,030. shares to be offered separately.
Price—$130 per unit:; a-rd $6 per share/ Proceeds—To
at
Bankers Southern,
each 12 shares of
Price—$10.20
per share. Proceeds—For investment in first trust notes,
second trust notes and construction loans. Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg,, Washington,
($3.75
•
May 26 filed
(7/14)
Management Corp.
of record June
Inc.
/Dec. 17 filed 490,000 shares of capital stock.
par
stock (par $1),
Co., Inc., New York.
Blake
941,564 shares of common stock (par $1)
to be offered for subscription by common stockholders
—To
(jointly). Bids—Expected to be received up to 11 a.m.
(EDT) on June 24 at 300 Park Ave., New York; N. Y. ■/
filed
10
pro¬
Webster ; Securities Corp.
&
Stone
Smith a and
&
ner
400,000 shares of common stock (par 2!
cents.) Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital. OfficeHouston, Texas. Underwriter — McDonald, Holman
Heritage Life Insurance Co.,
Jacksonville, Fla.
i
Bankers
unit.
May 1 filed 2,500,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—For construction of new
C.
Inc.,
Underwriter—None.
lanta, Ga
Billups
derwriters—To be named by amendment.
D.
New
125,000 shares are to be offered publicly and
133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share. Proceeds—Fo*
expansion and other corporate purposes.
Office — Ai *
(N. Y.)
500,000,shares of common stock (par 200).
Price—To be supplied by amendment.
Proceeds — To
discharge current liabilities and to drill ten wells. Un¬
expire July 9.
Corp.,
ville, Ky.
American-Caribbean
one
Boston
and for construction
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Kidder, Peabody & Co.; Eastman Dil¬
lon, Union Securities & Co.; Merrill Lynch, Pierce, Fen¬
which
Feb.
Inc.
Feb. 28 filed
of record June
First
mortgage bonds due 1988.
gram.
Price—To be supplied by
Feb. 28 filed 258,740 shares of common
of
Underwriter—None.
share for each
May 28 filed $12,000,000 of first
Proceeds—To repay bank loans
Fidelity Life Insurance Co.
Bankers
^ Aluminum Top Shingle Corp.
June 9 (letter of notification) 150,000 voting shares of
common stock.
Price—At par ($1 per share). Proceeds
—For inventory, improvements to buildings and work¬
ing capital. Office—245 S. W; 133rd St., Beaverton, Ore.
5
—
(6/24)
Light Co.
Illinois
Central
(par $10)
York, Courts & Co..and Robinson-Humphrey Co.,
both of Atlanta, Ga.
shares of common stock to be offered
in exchange for all the outstanding shares of common
stock of Campana Sales Co.
June
Underwriter
amendment.
June 6 filed 65,000
• American
Gas
subscription by the holders of the company's out¬
standing common stock on the basis of one new share
for each eight shares held
of record June 26, 1958;
(6/24)
of class
5
v";,
of notification) $250,000 promissory notes
consisting of 4% 6-year notes and $150,000 of 5% 9-yea?
notes. Price—At par (in multiples of $100). Proceeds—
To retire notes and for working capital. Office — 1901
Winter St., Superior, Wis. Underwriter—None.
Underwriter—None.
Light Co. (6/27)
filed 121,317 shares of common stock
ISSUE
Cooperatives, Inc.
Central
for
Manufacturing Co., Richmond,
June 3 filed
shares
to extend the service.
Atlanta
REVISED
May 26 (letter
May 20 (letter of notification) 500 shares of 5lk% cumu¬
lative preferred stock.
Price—At par ($50 per share).
Proceeds—For construction of lines and increase of plant
necessary
PREVIOUS
ITEMS
•
Telephone Co., Asotin, Wash.;
Asotin
Engineering Corp.
notification) 300,000 shares of common
par ($1 per share). Proceeds-rFor op¬
erating expenses for one year; manufacturing expenses;
expenses for materials and retirement of loans and bal¬
ance* for general fund of the company.
Office—15759
Strathern St., Van Nuys, Calif. Underwriter—None.
May 28 (letter of
stock. Price—At
ADDITIONS
SINCE
Underwriter—Paine, Webber,
Curtis, New York.
corporate purposes.»
porium, Pa.
Underwriter—None.
Dewey Portland Cement Co. (6/25)
May 29 filed 79,000 outstanding shares of the com¬
pany's class A non-voting common stock (par $7.50).
Price
To be supplied by amendment.-Proceeds-—To
selling stockholders. Underwriter—G. H. Walker & Co.,
St. Louis, Mo.
—
Volume
187*
Number 5752
The Commercial and Financial
Chronicle
...
(2779)
Dieterich
Field, Inc.
Ethodont
June 2
(letter of notification) 500 shares of
capital stock.
Price—At par ($100 per share).
Proceeds—For working
capital. Office—923 Farnam
St.,-.Omaha, Neb. Under¬
writer—None.
^ Diketan Laboratories,
Laboratories, Berkeley, Calif.
Feb. 20 filed 300,000 shares of
At
common
stock.
Price—
($5 per share). Proceeds—To cover
operating
expense during the development
period of the corpora¬
tion. Underwriter—None.
Inc.
par
Evergreen Gas & Oil Co.
June 10
(letter of notification) 43,336 shares of
common
stock (par $1) to be offeree?, to
stockholders on the basis
of
fone share for each 10 shares held until the close of
business on June 20, 1958. Offer
expires on July 11, 1958.
Price—$1.10 per share.
Proceeds—For the general fund
«the company. Office—5837 W. Adams
Blvd., Culver
City, Calif. Underwriter—Cloyd Arnold &
Co., Beverly
Hills, Calif.
'■
v
June 2 (letter of
stock (par five
ceeds—For
notification) 1,500,000 shares of
cents).
working
Chemical &
Research, Inc.
Dec. 24 filed 165,625 shares of
stock (par $1) to
be offered for subscription by common
stockholders at
the rate of one new share for each four
shares held.
Price—To be supplied by amendment.
expansion
New
Proceeds—For
corporate purposes.
Office —
Underwriter—P. W. Brooks &
Co., Inc.,
and
N.
Clifton,
luna & Co.,
Price—15 cents per share. Pro¬
Office—E. 12707 Valley-
capital.
Spokane, Wash.
Offering—Indefinitely postponed.
nancing may be
Other fi¬
arranged.
Industries, Inc.
Feb. 28 filed
June 25.
"
May
Light Co.
notification) 411
20
stock
(letter of
shares of capital
(par $25) to be offered to minority stockholders
2, 1958 on the basis of one share for each
of record June
12
Dresser
Offering—Expected
Fall River Electric
shares
Total
128,347 shares of
outstanding.
Rights expire June 24,
offering 18,771 shares of which 18,360 shares
subscribed
by
Eastern Utilities
holder and also will
stock (par 500)
being offered in exchange for outstanding common stock
of the Elgen Corp. on the basis of one share of
Dresser
Industries common for 3.4 shares of
Elgen's common
majority
shares.) Price—$48
No
St., Fall River, Mass.
common
exchanges will be made unless the exchange offer
is accepted by the holders of at least
80% of the out¬
standing Elgen common, and Dresser will not be obli¬
gated to consummate any exchanges unless the offer
is accepted by the holders of at least 95% of the
out¬
standing Elgen common. The offer will expire on June
17, unless extended. Underwriter—None.
Association, the single
purchase
unsubscribed
share.
per
Proceeds—To make par¬
banks. Office—85 North Main
tial payment of notes to
Underwriter—None.
Office—Richmond,
7
Commercial Corp.
< >
May 21 (letter of notification) 300,000 shares of common
stock (par 10
cents). Price—50 cents per share. Pro¬
loans, etc. Office
80 Wall
St., New
York, N. Y. Underwriter—Dumont Securities
Corp., New
York, N. Y.
v-..
—
Price—$5
a
Va.
per
price to be
and
other
cor¬
Underwriter—
Co., Inc., Clifton, N. J.
$1,000,000 of 12% notes, payable
filed
months after date of
issue in
units of $100
tiples thereof.
ceeds—To be
or
in
nine
mul¬
Price—100% of principal amount. Pro¬
used solely for purchase of
notes and other
indebtedness issued in
homes and secured by
payment
mortgages
improved properties.
for
or
improvements
on
other liens upon the
Underwriter—None.
★ Flexible Tubing Corp., Guilford, Conn.
June 9 (letter of
notification) 61,879 shares of
common
stock (par $1) to be offered
to holders of common stock
purchase warrants due April
1, 1964. Price—$5.45 per
share
if warrants
exercised
are
Proceeds—For working capital.
Florida
May
29
1988.
Power Corp.
filed
$25,000,000
Proceeds—To
prior to April 1, 1960.
Underwriter—None.
(7/1)
of first mortgage bonds due
off temporary bank loans of
pay
to meet costs of the
company's con¬
the balance will be applied to
the 1958 construction
program. Underwriter—To be de¬
termined
by competitive
$16,000,000 incurred
struction
and
program
bidding.
Federal
ceeds—To make
Proceeds —For expansion
First Backers
1958.
being
(par $1>
subscription by holders of
outstanding
basis; thereafter the balance remain¬
pro rata
porate purposes.
None.
April
;n
European Coal & Steel Community
(High
Authority of)
(6/25)
'
*
June 5 filed
$25,000,000 secured bonds due July 1, 1978
and $15,000,000 serial secured
notes maturing July
1,
1961-1963. Price—To be
supplied by amendment. Pro¬
ceeds—For iron and coal loans.
Underwriter—First Bos¬
ton Corp.,
Kuhn, Loeb & Co., and Lazard Freres & Co.,
all of New York.
on a
ing, if any, will be offered to the
public.
share to
stockholders; and to the public at
Opportunity, Spokane, Wash/ Underwriter—Penna-
way,
general
J.
York.
common
to be offered for
stock
determined.
common
of
Dixon
Fidelity Bankers Life Insurance
Corp.
March 7 filed
450,000 shares ol common slock-
67
Probable
bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch,
Pierce, Fenner & Smith (jointly); Leh¬
man Brothers and
Blyth & Co., Inc. (jointly); Eastman
Dillon, Union Securities & Co., and Harriman Ripley &
Co.
Inc.
(jointly); The First Boston Corp. Bids—Ex~'
pected to be received up to 11:30 a.m.
(EDT) on July 1.
Fluorspar Corp. of Amorlca
Dec.
26
cents).
NEW ISSUE CALENDAR
work
filed 470,000 shares of common stock
(par IB
Price—$3 per share. Proceeds—For exploration
and
working capital.
Office — Portland, Ore.
Underwriter—To
June
Bonanza
Air
19
(Thursday)
Florida Power Corp
Lines, Iiic—
(William
Mountain Fuel
Staats
R.
&
Co.)
$1,750,000
Supply Co
(The
$16,000,000
Gas & Electric
'(Offering
853,781
-
Co..
Forest
Debentures
to
Debs. & Stock
"
Common
by
Blyth &
(Blair
Debentures
&
Co., Inc.)
$2,000,000
(Blair & Co., Inc.)
July 2
^June 24
;
(Tuesday''
Debentures
(Smith, Barney & Co.)
$12,000;000
^v^'v
Chesapeake- Utilities Corp.——Common
Harrison
July 7
-Bonds
—
;
&
$25,000,000
&
(Lehman Brothers
Debs.
July 8
PDT)
a.m.
$20,000,000
*
Read
&
Co.,
Ihc.)
1,084,054
Northern States Power Co.
(Minn.)
'
(Bids 11
.
"
;
:
EDT)
a.m.
Bonds
$30,000,000
July 9 (Wednesday)
....
'shares;
.Bonds
.
(Bids to be invited) $10,000,000
Tennessee Gas Transmission Co.ill-__L__Common
'-"/V 'v
New York Telephone Corp
•: V
.
(Bids 11 a.m. EDT) $65,000,000
Bonds
,
June 25
;
•
(Wednesday)
Northwestern Public Service Co
American; Heritage Life Insurance Co—^Common
•v..,
■
v
Pierce,
Carrison,
Fenner
Wulbern,
Smith,, and Pierce, ',
941,564 shares
;
Inc.)
Cosmos Industries, Inc.—
(Netherlands
July 10
•
H.
Securities
Walker
&
Co.,
Inc.)
(First' Boston
•
79,000
Co.)
Kuhn,
Corp.,
Lazard
&
Freres
&
and
Shares
Wilson
& Co.
(Smith,
EDT)
Inc
Barney &
26
June
_.Debentures
$15,000,000
Common
Burnside & Co.)
June 27
(First
Gas
6,000,000 shares
Boston Corp.,
Co.,
Common
121,317
June 30
Otter
Tail Power
11
a.m.
a.m.
Co
Bonds
to
bp
Bonds
100
shares
held
about
Price—$3.50
April 15; unsubscribed
share. Proceeds—For
per
expansion, equipment and working capital.
Underwriter
August 26
to
hp
.Bonds
Telegraph Co—Debens.
'nvltpri >
$40,000 ono
(Wednesday)
Budget Finance Plan
(Shearson,
Preferred
Hammill & Co.)
the Mission Development Co., on basis of one share
of
Getty stock for each 1.2 shares of Development stock, or
five shares of Getty for six share* of Development
stock.
Offer to expire on June 25 at 3:30 p.m.
(EDT).
Corp.
(letter of notification) 150,000 shares of class A
stock (par 10 cents). Price—$2 per share. Pro¬
ceeds—For general
corporate purposes.
Office—1 E.
35th Street, New York 16, N
Y
Underwriter—Jamea
Anthony Securities Corp.. 37 Wall St.. New York 5, N. Y.
Feb.
12
common
(Tuesday)
New England Telephone &
Georgia Casualty & Surety Co., Atlanta, Ga.
May 6 filed 450,000 shares of common stock (par $1).
Price—$6 per share. Proceeds — For general corporate
purposes. Underwriter—Buckley Enterprises, Inc.
Getty Oil Co., Wilmington, Del.
April 11 filed 2,170,545 shares of common stock (par $4)
being offered in exchange for capital stock (par $5) of
Glassheat
___Bonds
PDST) $20,000,000
a.m.
September 3
$1,320,000
-A Government Employees Life Insurance Co.
June 6 (letter of notification) covering approximately
650 shares of capital stock (par $1.50) representing frac¬
tional interest
$10,000,000
(Tuesday)
tnvitpdl
—Common
(Monday)
August 11
Montana
Power
(Bids
(Bids
EDT) $25,000,000
(Kidder, Peabody & Co., Inc.; Blyth & Co., Inc.; White, Weld &
Co., and Laurence M. Marks & Co.) $15,000,000
shares
4
(Thursday)
Co
to
bp
Invited)
$4,650,000
September 23
of| stockholders resulting from 2V2% stock
dividend payable June
Bonds
$20.000 000
holders
of
record
Proceeds—To
Eq. Tr. Ctfs.
Chicago-, Burlington & Quincy RR
each
shares to public.
j.'
Bonds
September
July 1
$2,340,000
(Kidder, Peabody & Co.; Blyth & Co., Inc.; White, Weld &
Co., and Laurence M. Marks & Co.) 200,000 shares
(Monday)
EDT)
Devices, Inc., Princeton, N. J.
(letter of notification) 40,000 shares of com¬
mon
stock (par $1) to be offered for
subscription by
stockholders at the rate of
approximately 18.5 sharea
(Thursday)
Washington Water Power Co._
CBidS
Orange & Rockland Utilities, Inc
(Bids
invited)
Utah Power & Light Co—
Courts & Co., and Robinson-Humphrey
Inc.)
Equip. Trust Ctfs.
(Friday)
Light Co
competitive bidding.'
Co., Inc., and The First Bos¬
Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received
up to 3:45 p.m. (EDT) on
May 13 at Room 654, 101 Indiana Ave., N. W., Washing¬
ton 25, D. C., but bidding has been
postponed.
for
(Wednesday)
be
(Bids 11:30
Atlanta
$400,000
July 23 (Wednesday)
Common
—
Co.)
&
Common
Inc.)
Washington Water Power Co
—
General Aniline A Film
Corp., New York
Jan. 14, 1957 filed 426,988 shares of common
A stock (no
par) and 1,537,500 shares of common B stock (par $1).
Proceeds—To the Attorney General of the United
States.
Underwriter—To be determined by
March 31
(Bids to be invited) $9,000,000
Forgan & Co.)
Y
(Lazard Freres
to
(Bids 11
j
(Thursday)
(Mortimer B.
(Monday)
Co.-.,
July 17
Electric Co
$40,000,000
Jetronic Industries Inc
Lazard Furld, Inc., N.
(Bids
Tampa
$700,000
—
Co.; Glore,
—Debentures
Norfolk & Western Ry
.——Debentures
noon
Four Corners Oil & Gas
Co., Denver, Colo.
March 25 filed 400,000 shares of common stock
(par $1).
Price—$3 per share. Proceeds—To pay off debts and for
drilling and exploration costs. Underwriters—None.
—None.
Debentures
'Bids
$25,000,000
$2,128,000
United Gas Corp
.
Corp.)
Holman & Co.,
July 16
(Blyth'& Co., Inc. and Dean Witter & Co.) $150,000,000
.
Boston
Management
(McDonald,
Preferred
Co.)
&
Standard'Oil of Calif
,
Bankers
Bonds
Corp
Hogle
A.
cost of $1,425,248, and the balance
will be added to
working capital. Office—Fort Pierce, Fla. Underwriter
—Atwill & Co., Inc., of Miami
Beach, Fla., on a best
General
,
(High
Co.,
Preferred
First
July 14
$40,000,000
((Keller Erothers Securities Co., Inc.)
(J.
(The
(Thursday)
Co
(Southern Natural Gas Co—
shares
-
Loeb
Co.)
Port & Terminal Co.
May 23 filed 2,138,500 shares of common stock
(par $1>.
Price—To be supplied
by amendment.
Proceeds—To
pay some $174,000 of outstanding indebtedness and to
complete phase one of the port development
plan; at a
(Bids to be invited) $30,000,000
Mutual Securities Fund of Boston
San Diego Imperial
•
Common
—
'
Edison
$700,000
European- Coal & Steel Community
Authority of)
-
Boston
;____^__Common
Dewey Portland Cement Co
to;
Office—Brooklyn, N. Y. Underwriters—Statement
ton
Com. & Debs.
Lane,; Space Corp.) $2,500,000,-,; ;
(The Johnson;
poses.
Probable bidders: Blyth &
&
Billups Eastern Petroleum Co
„
Common
....
(Offering to stockholders—underwritten by
A. C. Allyn & Co.) 59,532 shares
"
(Merxilh ,Lynch;
Price—$2.50
motion
efforts basis.
(Tuesday)
Laclede Gas Co..^«
.
Missiles-& Automation Fund^Incv^-Common
' Haupfc-.-«fe CO.4 $5,000,000!
'■Trv.yf.'.ty
Pacific Power & Light Co—
—Bonds
\ (Bids 9
Pierce, Fenner & Smith)
$8,000,000
M
r
Preferred
and Merrill Lynch,
Co.
<WHi,;cY'iBecker & Co., Inc.);,..$7,5;11,400,
•
(Monday)
Laclede Gas Co..
**'•• •
MansfieMTire, & Rubber Co.—_n.^.Debentures
V
Laboratories, Inc.
filed
Fort Pierce
(Offering' td stockhdldefs—Scott & Strmg-feilow)' $5,500,000
Central Iftfalois Light Co
-vicir^V,\^BidS ii a.m. EOT)
Sol Gold¬
150,000 shares of capital stock (par 10
per share.
Proceeds—For sales pro¬
of company's
products, working capital, addi¬
tional inventory and accounts
receivable, for research
and development and for other
general corporate our-
cents).
$281,250
(Wednesday)
Martin Co.
'
by amendment.
Common
,
'
March 26
^
Albemarid;. Papei) Manufacturing *(Cfcrp^beutures
named
to be amended.
Salem-Brosius, Inc.
Co., Inc!)
be
berg is President.
$25,000,000
Salem-Brosius, Inc.
400,000 shares
shares
EDT)
(Whitney & Co.) $115,000
Co
to stockholders—underwritten
a.m.
Potomac Plastic Co
..Common
(Paine, Webber, Jackson & Curtis)
11:30
stockholders—underwritten by Morgan
Stanley & Co. and W. E. Hutton & Co.) $10,450,000
"v
.
Union
(Offering
(Monday)
Canada Southern Petroleum Ltd
Pacific
Grand
Debentures
First- Boston-Corp.)
June 23
(Bids
..Common
Bonds
(Tuesday)
N.
go
on
25, 1958. to be offered to stock¬
June
6,
1958.
Price—At
market.
Office—1021 14th St.,
Underwriter—None.
to stockholders
W., Washington 5, D. C.
'
Dayton' Aviation Radio & Equipment Corp—Com.
(^McDonald, Holman & Co.)
$500,000
Southwestern
Bell
Telenhone
O.
(Bids to be invited) $110,000,000
Debentures
Continued
on
page
68
Financial Chronicle
The Commercial and
C3
(7/1)
12 filed 10,450.000 of subordinated debentures,
+ Grand
June
Co.
Union
due
None.
debentures for each 23 shares of stock held on
Rights to expire' on July 21. Debentures to be
convertible into common stock until July 15, 1968. ProOeeds-^Xo be used in part to retire all outstanding shortterm bank borrowings,, including those incurred in con¬
nection with the recent acquisitions of the 41 "Empire
Stores" and 7 "Mohican Stores," the aggregate purchase
cents).
price being approximately $8,000,000, to replenish cash
expended in these acquisitions, and to pay the unpaid
balance of the purchase price. !The remainder will be
• Laclede Gas Co. (7/7)
June
18 filed 320,000 shares
Industries, Inc., Philadelphia, Pa.
(6/26)
July 1.
May 27 filed 130,000 shares of common stock (par 10
Price—$3.75 per share. Proceeds—For research:,
—Mortimer
Baltimore, Md.
Corp.,
Aug. 16 filed 300,000 shares
corporate
general
and/or direc¬
working cap¬
Underwriter -
purposes.
Lynch, Pierce, Fenner & Smith, both of New York, and
Reinlioldt & Gardner, St. Louis.
<'
^ Laclede Gas Co. (7/8)
June 18 filed $10,000,000 of first mortgage bonds due
1983.
Proceeds—To refund 4%% first mortgage bonds
B.
American Machine Co.,
Inc.
collateral notes, due June
15, 1968 (subordinated) and 256,236 shares of common
stock (par 10 cents) to be offered together with cash in
exchange for the outstanding common stock (par $20)
of General Trading Co. on the basis of (a) three shares
of American Machine common (b) $12 principal amount
of 5% notes, and (c) $5 in cash, for each of the 85,412
outstanding shares of General Trading common stock
The offer is conditioned, among other things, Upon its
acceptance by holders of not less than 68,330 shares of
the General Trading stock. Offer expires June 25. Office
—Culver City, Calif.
Dealer-Manager—Kalman & Co.,
Inc., St. Paul, and Minneapolis, Minn.
System,
^ Hawkes Cage
common
—None.
Underwriter
working capital.
-
.
* Hoagland & Dodge Drilling Co., Inc.,
Tucson, Ariz.
|
.
(letter of notiifcation) 27,000 shares of capital
Price—$10 per share. Proceeds—To be used in
part for the exploration of mines and
operation ,of mines and in payment
Underwriter—None.
development and
of indebtedness.
May 26 (letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds—For
supplies, advertising, furniture and working
fice—1710 South Fourth St., Las Vegas, Nev.
capital. Of¬
Underwriter
—None.
Corp., Ft. Wayne, Ind.
$180,000 principal amount
series C in units of $500
each. Price—Par per unit. Proceeds—To be used to pay
cost of constructing an addition to warehouse. Under¬
June 2 (letter of notification)
of 5% first mortgage bonds
writer—None.
Mining & Milling, Inc.
May 19 (letter of notification) 15,000,000 shares of non¬
assessable common stock. Price—At par (two cents per
share). Proceeds — For mining and milling expenses.
Office—504 16th Ave., Lewiston, Idaho. Underwriter—
None.
Bell
Telephone
Co.
May 9 filed 870,792 shares of common capital stock be¬
ing offered for subscription by stockholders of record
May 29. 1958, at the rate of one new share for each six
shares held; rights to expire on June 30. Minority stock¬
holders own 5,934 shares. Price—At par ($100 per share).
Proceeds—To repay advances from American Telephone
& Telegraph Co., and for property additions and im¬
provements. Underwriter—None.
Industro Transistor Corp.
Teb.
filed
28
shares
150,000
(N. Y.)
Accounts
of common
stock
(par
Fund,
Inc.,
Boston,
Mass.
per
share.
Proceeds—For working capital and
other corporate purposes. Office—Denver, Colo. Under¬
writer—Columbine Securities Corp., Denver, Colo.
Janaf, Inc., Washington, D. C.
July 30, 1957 filed $10,000,000 of 5V2-8% sinking fund
debentures due -Aug. 1, 1972 and 100,000 shares of com¬
stock
(par 20 cents) to be offered in units of
•
Jebenture and 10 shares of stock,
vad
one
•
Lancaster Chemical
•
share of stock.
.ViMissiles-Jets & Automation Fund, Inc.
shares of common
(par $1) to be offered for subscription by common
stockholders at the rate of one new share for each two
stock
or a
Price—Par for
/
Community Developers, Inc.,
Modern
Princeton, N. J. •, •
../:■' ,•<. ■
;
May 27 filed 15,0001 shares of common stock. Price—
$100 per share. Proceeds—For working capital and gen¬
Underwriter—None.
Motel Co* of Roanoke,
Inc., Roanoke* Va.
1
(letter of notification) 60,000 shares of common
(par 40 cents). Price—$5 per share; Proceeds—
Nov. 18
3tock
For
purchase of land, construction and working capital.
Underwriter—Southeastern Securities Corp., New York,
Investment Trust Fund, Inc.
Municipal
(N. Y.)
1957 filed 5,000 units of undivided interests in
Municipal Investment Trust Fund, Series A. Price—At
market. Proceeds—For investment.
Sponsor—Ira Haupt
&
with additional subscription privileges sub¬
shares held,
(6/24)
May 8 filed 500,000 shares of capital stock (par $1).
Price—$10 per share. Proceeds—For investment; Under¬
writer—Ira Haupt & Co., New York.
'\v>
*
May 9,
Corp.
May 26 (letter of hotification) 122,115
Co., New York.
•
(6/25)
Securities Fund of Boston
Mutual
ject to allotment. Record date: June 9, 1958; rights expire
July 11,
1958. Price — $1.50 per share. Proceeds—
May 27 filed 200,000 shares of beneficial interest in the
Fund. Price—S10.64 per share. Proceeds—For investment,
outstanding debts to purchase real property
Office — Broad and 13th St.,
Carlstadt, N. J. Underwriter—None.
Underwriter—Keller
To
repay
for
and
working capital.
Lancer
Industries,
assessable
share. Proceeds—For mining expenses. Underwriter
:—Birkenmayer & Co., Denver, Colo.
per
To
train
out
the
Natural
South
ceeds
writer—Sam
Read
Un¬
Corp.
Tex.
Underwriter—
11
.
engage
primarily in the
Mansfield
Rubber
Tire &
4 filed $5,000,000
Co.
stockholders of
June
one
new
share
for
each five shares
Underwriter—None.
17
K
filed
amended
refunding
(7/9)
statement
covering $65,000,000
mortgage bonds due July 1, 1993.
bank loans. Underwriter — To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
To be received until 11 a.m.
(EDT) on July 9 at 140 West
Street, N. Y.
Nichols, Inc., Exeter, N. H.
May 13 (letter of notification) 11,111 shares of common
stock
(no par).
Price—$27 per share.
Proceeds—For
expansion and working capital. Underwriter—None.
at the rate
principal amount of debentures for each 22 com¬
shares then held. Rights expire July 10. Price—For
of $100
mon
of
Proceeds—To repay
(6/24)
1958,
basis
determined
Statement to be
24,
the
on
Series
of sinking fund debentures, due
record
Underwriter—T. J. Campbell Investment Co., Inc.,
June
July 1, 1973, and $2,511,400 of convertible subordinated
debentures, due July 1, 1973. Convertible subordinated
debentures are to be offered for subscription by com¬
mon
Stuart & Co. Inc., both
Halsey*
^ New York Telephone Co.
operation of various properties, including shopping cen¬
ters.
Office—Salt Lake City, Utah. Underwriter—J. A.
June
and
Offering—To be made in July.!:
porate purposes.
Busi¬
development and
Co., Salt Lake City, Utah.
Inc.
of the outstanding stock. Price—At par ($100 per share).
Proceeds—To repay advances from parent and for cor¬
(in $1,000 units); and for common stock, $4.50 per
share. Proceeds—For contractual obligations, for work¬
To
Co.
&
held; rights to expire on July 11. American Telephone &
Telegraph Co.owns about 2,547,411 shares (about 69.29%)
par
—
To
—
New England Telephone & Telegraph Co.
May 16 filed 735,245 shares of common stock to be of¬
fered for subscription by stockholders of record June
Magna Investment & Development Corp.
May 26 filed 56,000 shares of common stock and $500,000
of 6% convertible debentures. Price—For debentures, at
ness
Pipeline Co. of America
first mortgage pipeline bonds
be supplied by amendment. Pro¬
reduce bank loans.
Underwriters — Dillon,
Price—To
Houston, Tex.
Price—$5 per share. Proceeds—To acquire stock control
jf "young, aggressive and expanding life and other injurance companies and
related companies and then to
ing capital, and other general corporate purposes.
and operation.
Underwriter-
Nedow Oil Tool Co.
shares of capital stock (par $1).
operate such companies as subsidiaries."
First Maine Corp.. Portland. Me
implement and carry
May 5 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To
pay loan;, to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
& Co., New York.
Insurance Securities
to
development
Pearl
of New York.
Fund,'. Inc., N. Y. (6/26)
|
June 18 by amendment increased from 2,500,000 shares
to 6.000,000 number of shares cf capital stock (par $1).
Lazdrd
Life
of
Gas
1977.
due
working capital. Under¬
Watson Co., Inc., Little Rock, Ark.
Proceeds—For investment.
persons
plan
Nov. 19 filed $40,000,000 of
San Francisco foundry and for
share.
procure
St., Boulder, Colo.
Securities Co., Boulder, Colo.'
Western
Price—$100
unit. Proceeds—Together with the $175,000 mortgage
loan of the American Brake Shoe Co., will be used to
per
and
projected
Office—1406
per
:
(letter of notification) 50,000 shares of common
Price—At par (50 cents per share). Proceeds—
stock.
^ Laughlin Alloy Steel Co., Inc., Las Vegas, Nev.
6% convertible debentures due
June 30, 1963 and 150,000 shares of common stock. These
securities are to be offered in units; each consisting of
June 13 filed $500,000 of
derwriter—Lazard Freres
Educators Finance Corp.
National
June 4
Price—$15
Beryl & Mining Corp., Estes Park, Colo,
(letter of notification) 2,916,000 shares of non¬
common stock (par one cent).
Price—10 cents
May 16
expenditures in acquiring latter company's
Co., Inc., Bos¬
National
Inc.
(letter of notification) 75,000 shares of common
stock (par 10 cents). Price—$4 per share.
Proceeds—
.For purchase of equipment, raw materials, inventories
and supplies and for other working capital.
Office—
1827 N. E. 144th St., North Miami, Fla.
Underwriter—
meet
Securities
Brothers
ton, Mass.
May 26
Norfolk & Carolina Telephone &
Elizabeth City, N. C.
Telegraph Co.,
sinking fund debentures to be supplied by amendment.
Proceeds—To redeem and retire outstanding debentures
and other securities. Underwriter—A. G. Becker & Co.,
May 22
June 5, 1958 at par ($100 per share). No underwriting
is involved. The proceeds are to be used to retire short-
Opportunity Life Insurance Co.
June 2 filed 5,000,000 shares of common stock (par $1).
mon
None,
gas
1,600 acres in Harding County, South Dakota.
Angeles, Calif. Underwriter—
■/-;
-
St., Los
and
Inc., Chicago, 111.
Ben H. Hazen is President.
Price—$5
Carolina
South
oil
eral corporate purposes.
(William H.)
May 22 (letter "of notification) pre-incorporation Sub¬
scription agreement to 24,000 shares of class B stock of
Produce Marketers. Price — At par ($2.50 per share).
Proceeds—For working capital.
Office—Room 302, 611
10
May 12 filed 5,000 shares of common stock. Price—$5,000
per share. Proceeds—For investment. Business—To in¬
vest primarily in share accounts insured by the Federal
Savings and Loan Insurance Corp., in savings and loan
associations throughout the country. Underwriter—None
International
the
amended.
Price—To be
Insured
■' '.'b
July 8.
Hogle &
related to the market price. Proteeds—For working capital and to enlarge research and
development department Underwriter — S D Fuller &
Co., New York. Offering—Being held in abeyance.
?ents).
on
March 28 filed 1,000,000
Idaho
Illinois
expected
—Tentatively
•
H.W.I. Building
Webster Securities Corp. Bids
to be received up to 11 a.m.
Securities & Co.; Stone &
$100 of debentures and 30 common shares.
Manufacturing Co.
Houston Chemical
Co., Inc.; Lehman
Merrill Lynch, Pierce, Fenner & Smith and
'Reinholdt & GardneF (jointly); Eastman'^Dillon, MJnion
and Shell Oil Co. Agreement covers
leasehold in a total of approximately
tween the company
None.
June 12
stock.
tive
Inc., Rockville, Md.
(letter of notification) 15,000 shares of class A
stock (par 10 cents). Price—$1 per share. Pro¬
ceeds—For inventory and
Underwriter—To be determined by competi¬
bidding.
Probable bidders: Halsey, i Stuart & Co.
1982.
due
Inc., Oklahoma City, Okla.
$199,000 of working interests in the Buffalo
Prospect. Buffalo Prospect consists of all the rights of
Mid-America under a certain farmout agreement be¬
June 3 filed
Ladley
May 9 filed $1,024,944 of 5%
June 11
,
(EDT)
None.
H. &
Mid-America Minerals,
:
Brothers,
to organizers, incorporators, management,
tors.- Price—$10 per share. Proceeds—For
and
—
Price—To be supplied by
Lehman Brothers, Merrill
•
.
Hotel Corp., Portland, Ore.
May 27 filed $3,000,000 of 4% 25-year sinking fund de¬
bentures due July 1, 1983.
Price—At par. Proceeds—
For construction program and working capital. Subscrip¬
tion Agent — The Hockenbury System, Inc., Portland,
Metropolitan
Ore.
preferred
cumulative
Inc.; The First Boston Corp.; Blyth &
of common stock, of whicL
200,000 shares are to be publicly offered and the remain
Ing 100,000 shares reserved for issuance upon exercise
of warrants which are to be sold at 25 cents per warrant;
ital
Underwriters
amendment.
bearer shares of
insurance
<_
and for construction program.
Receipts for
Compagnie D'Outremer Pour L'lndustrie Et La Finance ("The Overseas Company for Indus¬
try and Finance"). A Belgian Investment Co.
&
of
>
Underwriter—None.
Ky.
stock, Series B (par $25). Proceeds—To retire bank loans
company's general funds and will be avail¬
able for working capital and installation of fixtures for
new stores.
Underwriter — Morgan Stanley & Co.. and
W. E. Hutton & Co., both of New York.
Guardian
Burnside
B.
best efforts basis.
added to the
Guaranty Trust Co. of N. Y.
June 10 filed 50,000 American Depositary
working capital. Underwriter
Co., Inc., New York, on a
and development and for
Underwriter—
'
•
^
June 11 (letter of notification) an undetermined number
of shares of common stock not to exceed $50,000 (par $1)
to be sold by Concura Foundation, Chicago, 111. Price—
At the market. Office—4th & Colorado Sts., Louisville,
Jetronic
of $100
'
Thursday, June 19, 1958
.
★ Mengel Co.
effective.
ment
shareholders in the ratio
1978. to be offered to common
'
.
Blvd., Los Angeles, Calif.
Bandini
4383
$2 per share for each 10 shares of stock. Proceeds—For
instruction of a shopping center and other capital im¬
provements; for retirement of present preferred shares:
and for working caiptal, etc. Underwriter—None. State¬
67
Continued from page
4
.
(2780)
a $1,000
$100 debenture
debenture, plus
Martin Co.,
June 11 filed
Baltimore, Md.
Mayfair Markets
24 (letter of
(7/2)
notification)
5,000 shares of 6%
stock (par $50) and 5,000 shares
of common stock (par $1) to be offered in units of one
share of preferred and one share of common stock. Price
cumulative
—$60
per
preferred
unit.
one
common
3,000 shares of common
on the basis
stockholders
share for each four shares of common
stock held
on
July 1, 1978. Proceeds — Working capital and general
corporate purposes.
Price—To be supplied by amend¬
ment. Underwriter—Smith, Barney & Co., N. Y.
,
of
term open notes and for
$25,000,000 of sinking fund debentures, due
March
(letter of notification)
stock to be offered to
Proceeds—For working capital. Office—
-
•
Northern
working capital.
Indiana Public Service Co.
June
2 filed 374,500 of common stock to be offered for
subscription by common stockholders of record at 2 p.m..
on June 16,
1958, at the rate of one additional share for
each
10 shares then held.
$40.50
per
share.
Offer expires
Proceeds
other corporate purposes.
July 7. Price—
capital and'
Underwriter—Dean Witter &
—
For working
Co., Blyth & Co., Inc., and Merrill Lynch, Pierce. Fenner
& Smith, all of New York.
Number 5752
Volume 187
.
.
The Commercial
.
and Financial Chronicle
(278lf"-0$
1
Northern States Power Co.
(Minn.)
(7/8)
May 29 filed $30,000,000 of first mortgage bonds due July
1, 1988. Proceeds — To refund $18,000,000 of 5% bonds
and for construction program. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Inc. (jointly); Merrill Lynch, Pierce, Fenner &
Smith, Kidder, Peabody & Co. and White, Weld & Co.
Co.,
(jointly); Lehman Brothers and Riter & Co. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly). Bids—Expected to be received
to 11 a.m. (EDT) on July 8.
up
Northern Virginia Doctors Hospital Corp.
April 4 (letter of notification) 30,000 shares of common
stock (par one cent). Price—$10 per share. Proceeds—
For building fund. Office — 522 Leesburg Pike, Falls
Church, Va. Underwriter—Whitney & Co., Washington,
C.
Northwestern
D.
•
be
new
share for each 10 shares held.
The
date is to be supplied by amendment.
Price—
supplied by amendment. Proceeds—To be applied
the payment of $900,000 of short term bank notes, the
record
To be
to
which
from
funds
program,
used
were
and, the balance if
for the
1957
construction
will be applied to the
any,
company's 1958 construction program.
A. C. Allyn & Co., Chicago, 111.
Underwriter
—
Inc., Salt Lake City, Utah
April 4 filed 597,640 shares of common stock (par $1)
o be offered for subscription by common stockholders
of record March 24, 1958 at the rate of 1V4 new shares
for each share then held. Employees may purchase 50,000 shares of unsubscribed stock. Price—To
stockholders,
.75 per
share; and to public, $2 per share. Proceeds—
For mining,, development and exploration costs, and for
working capital and other corporate purposes. Under¬
writers—Harrison S. Brothers & Co., and Whitney &
Co.,
both of Salt Lake City, Utah.
Oil & Mineral Operations, Inc., Tulsa, Okla.
April 14 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceeds—For payment of loans, various
equipment, and a reserve for future operations. Business
To acquire and operate mining claims and oil and gas
properties. Underwriter—Universal Securities Co., En¬
terprise Building, Tulsa, Okla.
Orange & Rockland Utilities, Inc. (6/30)
May 29 filed $10,000,000 of first mortgage bonds, series
bank
1988.
Proceeds
loans incurred
—
in
For construction program and
connection
with
the
company's
construction -program
and the retirement of preferred
stock of The Orange and Rockland Electric Co. (a pre¬
decessor)'also to purchase 20,000 shares of Rockland
Co., a subsidiary. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Electric
Stuart & Co.
Inc.; The First Boston Corp.; W. C. Langley
& Co.; Equitable Securities Corp. Bids—To be received
up to 11 a.m. (EDT) on June 30.
O. T. C.
Enterprises Inc.
March 6 (letter of notification) 23,200 shares of com¬
mon class B stock
(par $1). Price—$5 per share. Pro¬
ceeds—For completion of plant plans; land; construc¬
tion and operating expenses.
Office—2502 N. Calvert
St., Baltimore 18, Md.
Underwriter—Burnett & Co.,
Sparks, Md.
•
(6/23)
May 27 filed 853,781 shares of
common stock (par $25)
subscription by common stockholders of
June 17, 1958 at the rate of one new share for
to be offered for
each 20 shares then
Price—$52
per
and for construction
program.
—
on July 8, 1958.
To repay bank loans
Underwriter
—
Blyth &
Co., Inc., San Francisco, Calif., and New York, N. Y.
Pacific Power & Light Co. (6/24)
May 20 filed $20,000,000 of first mortgage
bonds due
Proceeds—Together with other funds, will
be used in carrying forward the company's construction
program through 1958 and in retiring bank borrowings.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
July 1, 1988.
Brothers; Bear, Stearns & Co., and Salomon Brothers &
Hutzler
Co.
and
(jointly); Eastman Dillon, Union Securities &
Kidder, Peabody & Co. (jointly).
Bids—To
be received up to noon
(EDT) on June 24 at Room 2033,
Two Rector Street, New York 6, N. Y.
Palestine Economic Corp., New York
March 31 filed $2,000,000 of 5% notes, due Oct. 1, 1963
to be offered in two
types: (a) interest-bearing notes
with interest
payable at the rate of 5% and at an offer¬
ing price of 100% of principal amount; and (b) capitalappreciation notes, at a discount from maturity value so
as to
yield 5% compounded semi-annually. Proceeds—
For making investments and loans in
companies or en¬
terprises
that
terested in,
—None.
or
the corporation is already financially in¬
for other corporate purposes. Underwriter
•
Paradox Production Corp., Salt Lake City, Utah
April 18 filed 767,818 shares of common stock (par $1),
pf which 100,000
shares
are
to be offered by the company
jn exchange for oil and gas properties and 3,000 for serv¬
ices; the remaining 664,818 shares are to be offered to
the public. Price—To be
supplied by amendment. Pro¬
ceeds—To selling stockholders.
Underwriter—Market
Securities, Inc., Salt
tive June 5.
Paxton
(Frank)
Lake City, Utah. Statement effec¬
Lumber Co.
May 26 (letter of notification) 15,000 shares of common
stock (par $5) to be offered to
employees. Price—$12.80
Per share.
Proceeds—To redeem common stock. Office
—-6311
None.
Pecos
March
St. John Ave.,
Kansas
City, Mo.
Underwriter—
investment.
►Under¬
holders
filed
sale
thereof.
Price—$1 per share.
of the 300,000 shares, to be used to
Proceeds—From
pay 6% mortgage
notes and interest and to
pay back tax claims, and inter¬
est due on the note to Mr. Harroun.
Underwriter—Wiles
&
•
Peoples Protective Life Insurance, Co.
March 27 filed 310,000 shares of common stock (par
$1),
consisting of 62,000 shares of class A-voting stock and
248,000 shares of class B-non-voting stock to be offered
units
consisting
Price
capital
states
and
—
for
where
of one class A and four class B
$75 per unit.
Proceeds — For working
development of district offices in the
the
is currently licensed to do
business.
Office—Jackson, Tenn. Underwriter—None.
R. B. Smith, Jr., is President and Board Chairman.
company
Policy Advancing Corp.
March 25 (letter of
notification) 30,250 shares of com¬
mon stock
(par $5) to be offered for subscription by
stockholders at the rate of
common
each
share
one
share for
new
held; unsubscribed shares to be offered
holders
and
to
others.
Price—$8
Proceeds—For working capital.
Office—27
St., Binghamton, N. Y. Underwriter—None.
per
to
share.
Potomac
Plastic Co. (7/1)
(letter of notification) $57,500 of 6% subordi¬
nated convertible debentures and
57,500 shares of class A
common stock (par one
cent) to be offered in units of
500 shares of stock and $500 of debentures.
Price—$1,000
per unit.
Proceeds — For equipment and working cap¬
ital. Office—1550 Rockville
Pike, Rockville, Md. Under¬
writer—Whitney & Co., Inc., Washington, D. C.
Prairie Fibreboard Ltd.
Feb. 28 filed
210,000 shares of common stock (par $1.50)
offered for sale to residents of Canada in the Prov¬
inces of Manitoba, Saskatchewan and Alberta and to
residents of the United States "only in the State of Northr
Dakota." Price—$2.50 per share. Proceeds — For con¬
struction
purpose/
Office— Saskatoon,
Saskatchewan,
Canada. Underwriter-^-Allied Securities
Ltd., Saskatoon,
Canada.
;
.Printing Machinery Co.
(letter of notification) 20,000 shares of common
stock. Price—At par ($10 per share). Proceeds—For the
purchase of the manufacturing assets of another com¬
pany. Office—436 Commercial Square, Cincinnati, Ohio.
June 4
Underwriter—None.
Private Enterprise, Inc., Wichita, Kansas
May 5 filed 125,000 shares of common stock. Price—$10
per share.
Proceeds — To be used to organize, or re¬
organize and then operate companies in foreign nations,
principally, but not exclusively, in the Far East, Near
/East and Africa.
Underwriter—None.
Rand Drilling Co.,
Inc.
May 12 (letter of notification) 100,000 shares of class A
common stock
(par 50 cents) and 50,000 shares of class
B common stock
(par 50 cents) to be offered in units of
two
shares
of
class A
and
one
share
of
class
B
stock.
unit. Proceeds—For expenses incidental
to drilling for oil.
Office—IIIV2 E. St. Peter St., New
per
Iberia, La. Underwriter
Orleans, La.
—
T. J. Feibleman & Co., New
Richfield Oil
June
23
be
to
filed
offered
directors who
Corp., Los Angeles, Calif.
200,000 shares of common stock
to
(no par)
officers and key employees (including
also salaried officers) under the com¬
are
pany's Restricted Slock Option Plan.
working capital.
Underwriter—James H. Price &
Co., Inc., of Coral Gables, Fla., for 250,000 shares; balance
on
"best efforts" basis.
Robosonic
12
June
National
Industries
.
Southeastern Mines, Inc.
May 28 (letter of notification) 3,000,000 shares of com¬
stock. Price—At par
(10 cents per share). Proceeds
mon
—For mining expenses.
Johnson City, Tenn.
Address—P. O. Box 3034, North
Underwriter—None.
Southern
Frontier Finance Co.
May 15 filed 2,000,000 shares of cdinmon stock
(par 50
cents). Price —$1 per share. Proceeds
$1,525,000 for
purchase of receivables secured by Mobile
Homes, ocr
other collateral; and
$275,000 for working capital,' re¬
serve, etc. Office—Raleigh, N. C.
Underwriter—None.
tIc Southern Natural Gas Co. (7/10)
—
June 12 filed $30,000,000 of
July 1,
sinking fund debentures, due
Proceeds—To be added to the
company'-®
1978.
general funds and will be available for its construction
program and
reduction of
outstanding loans under a re¬
providing for a maximum
$25,000,000 at any one time outstanding. Underwriter
—To be determined by
competitive bidding. Probable
bidders; Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.; and Kidder, Peabody & Co.
(jointly). Bids — Tentatively scheduled for July 10 kt
90 Broad St., New York, N. Y.
-•
/
1 '
-;
volving
credit
agreement
of
Standard
Oil
Co.
(Calif.)
(6/25) f
\
June 4 filed $150,000,000 of sinking fund debentures diift
July 1, 1983. Price—To be supplied by amendment. Pro¬
ceeds—To refinance a bank obligation bf
$50,000,000 du®
this year to provide additional capital for the
company's
overall
Underwriters—Blyth & Co., Inc., antf
Co., both of Sail Francisco, Calif., and
New York, N. Y. Offering—Expected June 25.
'
Dean
program.
Witter
&
Standard Oil Co. (New Jersey)
0 "
May 5 filed 2,246,091 shares of capital stock (par $?>
being offered in exchange for common shares of Inter¬
national Petroleum Co., Ltd., of Toronto, Canada, and
Coral Gables, Fla., in the ratio of nine shares, of Stand¬
ard Oil stock for 10 shares of International stock.
Offer
will expire on July
1, 1958. Statement effective May 23.
Underwriters—Morgan Stanley & Co. in United States;
and Harris & Partners, Ltd. in Canada.
,f
t,
Standard
Packaging Corp., New York
June 4 filed 225,385 shares of the
company's common
stock (par $1), such shares are to be issued to Johnston
Foil Manufacturing Co., a New Jersey
corporation/under
an agreement
pursuant to which Standard acquired subs¬
tantially all of the assets of Johnston.
<
•
Strategic Minerals Corp. of America, Dallas, Tex,
March 31 filed $2,000,000 of first lien mortgage 6% bond®
and 975,000 shares of common stock (par 10
cents). Frico
—For bonds, 95% of principal amount; and for stock
$3
share.
per
Proceeds—To erect and operate
one
or moro
chemical processing plants using the Bruce - William®,
Process to beneficiate manganese ores.
Underwriter-^
Southwest Shares, Inc., Austin, Texas.
Sun Oil Inc., Philadelphia, Pa.
April 22 filed 15,000 memberships in the Stock Purchase
Plan for the employees of the company and its sub¬
sidiaries, together with 188,000 shares of common stock
(no par) which may be purchased by the trustees of the
plan during the period July 1, 1958, to June 30, 1959,
with respect to the 1958 plan. Registration also covers
243,288 shares of outstanding common stock which may
be offered for possible sale by the holders thereof during
the period July 1, 1958 to June 30, 1959. Underwriter—
None.
Sunday River Skiway Corp., Bethel, Me.
5 (letter of notification) 14,357 shares of common
Price
At par ($10 per share). Proceeds — For
working capital. Underwriter—None.
June
Riddle Airlines, Inc., Miami, Fla.
May 15 filed 750,000 shares of common stock ^par 10
cents). Price—To be supplied by amendment. Proceeds
—For
J
j
,
June 2 filed 70,000 shares of
5V2 % cumulative convert¬
ible preferred stock.
Price
At par ($10 per
share).
Proceeds
To retire $550,000 of
promissory notes. Under¬
writer—J. A. Hogle & Co., Salt Lake
City, Utah.
-
Chenango
-March 31
to be
Diego Imperial Corp., San
Diego, Cailf.
^ ®''
Co., Dallas, Texas.
shares.
San
—
Valley Land Co., Carlsbad, N. Mex.
13
2,000,000 shares of common stock (par
10 cents), of which
300,000 shares are to be offered for
sale by the
company and 1,700,000 shares by the present
held; rights to expire
share. Proceeds
Proceeds—For
writer—Investors Investments Corp.,
Pasadena, Calif.
Price—$4.50
Pacific Gas & Electric Co.
record
market.
debenture
Oil
F due
Price—At
in
Public Service Co.
(7/9)
59,532 shares of common stock (par $3) to
offered for subscription by common stockholders at
June 6 filed
the rate of one
Peckman Plan
Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock
(par $1).
Corp.,
N. Y.
filed
stock.
—
Surety Oil Co.
1
May 28 (letter of notification) 1,200,000 shares, of com¬
mon stock.
Price—At par (25 cents per share). Proceeds
—For development of oil and gas properties. Office—290
North University Ave., Provo, Utah. Underwriter—None,
500,000 shares of common stock, class B.
Price—$3 per share.
Proceeds—To manufacture on a
contract basis an automatic telephone answering instru¬
June
^ Systron Corp., Concord, Calif.
10 (letter of notification) 24,475 shares of capital
stock
(par $5) to be offered to stockholders on the basis
share for each share held on June 10, 1958. Price
ment; the enlargement of the research and development
of
facilities of the company; patent and patent applications;
—$12.25
public relations, and for working capital. Underwriter—-
derwriter—None.
None.
21
cumulative
$10.25 per share; for common stock, $8 per share. Pro¬
capital. Office—200 Sayre St., Rock-
ceeds—For working
Underwriter
ford, 111.
—
share.
Proceeds—For working capital. Un¬
June
(letter of notification) 14,250 shares of 7%
preferred stock (par $10) and 10,000 shares
of common stock (par $1). Price—For preferred stock,
March
per
^ Tampa Electric Co. (7/17)
13 filed $25,000,000 first mortgage bonds due 1988,
Paint Co.
Rockcote
one
The Milwaukee Co., Milwau¬
kee, Wis.
be
on
Rocky Mountain Quarter Racing Association
construction
program.
Underwriter—To
competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Stone & Webster Securi¬
ties Corp.; Kuhn, Loeb & Co.; Merrill Lynch, Pierce,
Fenner & Smith; Goldman, Sachs & Co. Bids — To be
received at 90 Broad St., New York, up to 11 a.m. (DST/
Proceeds—For
determined
by
July 17, 1958.
Tax
Exempt Bond Fund, Inc.,
Washington, D. A
Colo.Underwriter—R.
1957 filed 40,000 shares of common stock. Price
—$25 per share. Proceeds—For investment. Underwrite!
—Equitable Securities Corp., Nashville, Tenn. Offerings—*
Held up pending passing of necessary legislation by
Memphis, Tenn.
Congress.
Oct
31,
common
To
(letter of notification) 300,000 shares of
stock. Price—At par ($1 per share). Proceeds
1957
repay
outstanding indebtedness. Office—Littleton,
B. Ford Co., Windover Road,
(7/1)
June 10 filed $2,000,000 of convertible subordinated de¬
bentures, due July 1, 1973, and 112,500 shares of common
stock (par $2.50). Price—To be supplied by amendment.
Satem-Brosius, Inc., Pittsburgh, Pa.
Proceeds—To
be
used in connection with
the proposed
acquisition of Alloy Manufacturing Co., Inc., and to re¬
tire indebtedness and working capital.
Underwriter—
Blair &
Co., Inc., New York.j
June 20,
Tele-Broadcasters, Inc.
(letter of notification) 40,000 shares of com¬
(par five cents). Price — $3.25 per shmre,
Proceeds—To complete the construction of Station KALI
March 31
mon
stock
Office—41
New York, N. Y. Underwriter
Corp., New York, N. Y.
East 42nd St.,
-Sinclair Securities
Continued
on page
70
70
The Commercial and
(2782)
•
Tennessee Gas Transmission Co.
(6/24)
Graham
June 2 filed 1,084,054 shares of common stock (par $5)
to be offered in exchange for common stock of Middle
Gas
a
—
Western
Proceeds—To drill two
corporate
mon
wells and for genera]
new
Underwriter
purposes.
June
—
shares held.
Andersen-Randolph
International Growth
cent).
Price—At market.
Proceeds
Office—Short
Hills, N. J.
Corp., Denver, Colo.
Trans-America
—
(par one
For investment.
E. Owens of
Underwriter—FIF Manage¬
Waterloo. Ia.,
*
(letter of notification) 7,500 shares of common
stock (par $1) to be offered pro-rata to stockholders on
—$4
per
one
share.
Office—203
N.
new
share for
10
shares owned.
Price
Proceeds—For drilling for oil and gas.
Main
Street,
Coudersport,
Pa.
Under¬
writer—None.
16
$2,557,020 of interests in the companies
Thrift Plan for Employees, together with 121,762 shares
of common stock and varying amounts of preferred
shares of four different series which may be acquired
under said plan.
Tuttle Engineering,
Inc.
(letter of notification) 58,600 shares of common
stock (par 10 cents) and $293,000 of 6% five-year con¬
vertible debentures due June 1, 1963 to be offered in
units of 100 shares of common stock and $500 of deben¬
tures. Price—$510 per unit. Proceeds—To pay bank and
other notes payable and for working capital.
Office—
4251 East Live Oak Avenue, Arcadia, Calif. Underwriter
—White & Co., St. Louis, Mo.
May 7
United
Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
Price — $10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, by
lease or purchase. Office — Wilmington, Del. Under¬
Myrl
L.
McKee
of
Portland,
Ore.,
i«
President.
United Gas Corp. (6/25)
May 22 filed $40,000,000 of sinking fund debentures due
1978. Proceeds—To prepay a like principal amount of
4% notes due Sept. 22, 1959 held by eight commercial
banks. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.; The
First Boston Corp., Harriman Ripley & Co.
Inc., and
Goldman Sachs & Co. (jointly); White, Weld &
Co.,
Morgan Stanley & Co. and Equitable Securities Corp.
(jointly). Bids — Expected to be received up to noon
(EDT) on June 25 at Room 2033, Two Rector St., New
York 6, N. Y.
United States Sulphur Corp.
Oct. 8 filed 1,500,000 shares of
cent). Price—$1
per
share.
stock
(par
on#
None.
United States Telemail Service, Inc.
Feb. 17 filed 375,000 shares of common stock
(par $1).
Price—$4 per share. Proceeds—To purchase equipment
and supplies and for working capital and other
corporatt
purposes. Office—Salt Lake City, Utah. UnderwriterAmos Treat & Co., Inc., of New York. '
United
Wholesale
Druggists, Inc.
May 27 (letter of notification) 5,000 shares of preferred
stock.
Price—At par ($25 per share). Proceeds—To
pur¬
Office—1120 Oakleigh Drive, East-
chase merchandise.
point, Ga.
Underwriter—None.
III.
stock.
Price
share. Proceeds—For exploration and
develop¬
properties, and the balance for other corporate
purposes. Underwriter—None.
per
Uranium Corp.
of America.
Apnl 30,195Tfiled 1,250,000
16
Price—To
be
of the
the
number
holders
balance
of
Proceeds—For
working
be
in 30
capital.
Dec. 9 it
be
N
Y.
Office—151
Underwriter
—
Portland, Ora.
shares of
Edwin
writers
in 1958
stock(par
supplied by amendment (ex¬
common
Feb.
Wuson
&
Co.
39
reported company plans to issue and sell
additional shares of common stock. Under¬
Dillon, Read & Co. Inc. and The Ohio Co
Permanent financing not expected until late
possibly early in 1959.
—
or
it
25
ment
company
service
of
facilities
during 1958. Indications are
senior securities may be involved.
Underwriter—For any. bonds, to be determined by com
petitive bidding.
Probable bidders: Halsey, Stuart &
that
$60,000,000
of
Co.
Inc.; Morgan Stanley & Co.; White, Weld & Co. and
& Co.
(jointly); The First Boston Corp. and
Ripley & Co. Inc. (jointly). An offering of
$35,156,700 of 4%% convertible debentures, offered to
stockholders, was underwritten in October, 1957, by Mor
gan Stanley & Co.
*
Shields
Harriman
Winter Park Telephone Co.
of
notification) a maximum of 6,619
(par $10) to be offered to em¬
ployees under the company's Employees' Stock Plan.
Proceeds—For extensions, additions apd improvements
of telephone plant and for working capital. Office—132
East New England Ave., Winter
Park, Fla. Underwriter
-
shares of common stock
Deere
.
Co,
&
,
Stockholders will vote
for
the
exchange
of
25-year debentures
each
—None.
14
on
shares held:
plan providing
the present preferred stock into
the basis of $500 of debentures for
;
011
July 29
011
a
.
Dixon Chemical
March 10 it
Acme
Steel
March 21 it
*
tional financing this year, in the form of common
stock,
preferred stock, or a combination of the two/including
bank loans.
Proceeds—For expansion program, work¬
Merrill Lynch,
Alco Products
March 6 it
was
Underwriters—Blyth & Co.,
Pierce, Fenner & Smith.
Inc.
announced that the company is consider¬
ing plans for
long-term refinancing. Proceeds—For pay¬
ment of all notes payable and provide the
company with
additional working capital.
★ American-South African Investment Co.
June 13 filed for permission to become
registered
as
an
investment company of the closed-end type under the
Investment Company Act of 1940. Business—The
trust,
incorporated under the laws of the Union of Africa, has
been organized to provide a medium for investment in
shares of companies engaged in business in
South Africa, with particular emphasis on those
engaged
in mining gold. The trust may also invest to a certain
common
extent in gold bullion.
Jan. 23 it
-
Investment Co.
was
—
Brothers, both of New York
Boston
Edison Co.
(7/10)
announced company may issue and sell
250,000 shares of cumulative preferred stock
(par $100).
was
securities to be announced later.
Underwriter—Harriman Rip¬
Proceeds—For expansion.
Equitable Gas Co.
April 7 it was reported that the company expects later
in the year to issue and sell additional securities, prob¬
ably preferred stock, to secure approximately $5,000,001
of additional funds. Proceeds—Together with $7,000,001
from private sale of 4%% bonds, to repay short-term
bank loans and for construction program.
Underwriter!!
—May be The First Boston Corp.; Kidder, Peabody &1
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White,!
Weld & Co., all of New York.
Gas
Service
March 24
Co.
reported that company plans to issue
$11,000,000 of first mortgage bonds later this year. No de¬
cision as yet has been made as to the procedure the
£onj"
pany will follow.
Proceeds—For repayment of shortterm
it
was
and
notes
Underwriter
—
loans
If
for
and
construction
by competitive"
determined
bidding,
Halsey, Stuart &
Lynch, Pierce, Fenner & Smith, and
Weld & Co. (jointly); Blyth & Co., Inc.; The First
Corp.; Lehman Brothers.
probable
bidders
may-
General
April
7
Public
Utilities
stockholders
-f''
be
Merrill
Underwriter—Dillon, Read & Co.
reported company plans to issue and sel
some additional debentures
(amount not yet determined)
Underwriters
Salomon Bros. & Hutzler and Lehmai
May 27 it
was
ley & Co. Inc., New York
Co.
announced that the company plans addi¬
was
Industries, Inc.
reported company plans to do some fi¬
nancing, the type of
Prospective Offerings
the
Co.
Gas
21 Dan E. Karn, President, announced that $100,600,000 has been budgeted for expansion and improve¬
Glore, Forgan & Co., and Hallgarten & Co., all of New
and
Natural
announced
was
Feb.
York.
Inc.
:
Consumers Power Co.
Inc.
—
(letter
Hal¬
>
plans to issue and
$45,000,000 of sinking fund debentures. Underwrit¬
ers—To be determined by competitive bidding.
Prob¬
able bidders: Halsey, Stuart & Co.; White, Weld & Co,
and Paine, Webber, Jackson & Curtis (jointly); Morgan
Stanley & Co. and First Boston Corp. (jointly).. Offer
ing—Expected in July.
(6/25)
June 5 filed $15,000,000 of 20-year sinking fund deben¬
tures.
Price—To be supplied by amendment. Proceeds
—To prepay $7,500,000 of term bank loans due 1960 and
to retire bank borrowings, including loans of
$5,304,000
for the payment of the company's first
mortgage bonds
which matured on April 1, 1958. Price—To be
supplied
by amendment. Underwriters
Smith, Barney & Co.,
19
bidders:
sell
Avenue,
Jefferson,
Probable
was
(jointly).
$60 per
Underwriter—
—
Adell
>.,
-
about 250,000
Television
corporate purposes.
*
Columbus & Southern Ohio Electric Co.
Broadway, New York 6, N. Y.
May
semi-annual instalments.
Consolidated
general
;
1
Stuart & Co. Inc.: Salomon Bros. & Hutzler.
sey,
one
such
Price
placed privately.
Chicago, Burlington & Quincy RR. (7/1)
May 14 it was reported company plans to issue and sell
on July 1 $4,650,000 of equipment trust certificates due
System, Inc.
April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 shares
are to be publicly offered at $3 each.
Proceeds — For
Yonkprs
Co., Inc.
that the company's financing
anticipates the sale of both
(probably preferred stock)
$5,000,000. Both issues may
announced
was
:
-
Electric
the year 1958
debt and equity securities
aggregating approximately
holdings in
of shares divisible by four; also
of outstanding 5% subordinated
$1,000 of debentures then held.
share.
Louisiana
Central
March 28 it
debentures of record March 24 at rate of five shares for
each
Associates
ment of
cents).
for
offered
excess
to
share
company
program for
share for each four shares held and
Inc., New York.
Universal Oil Recovery
Corp., Chicago,
June 4 filed 37,500 shares of class A common
—$4
additional
the
York and San Francisco.'
-
Inc.
ing capital and inventories.
common
Proceeds—For plant rental,
etc.; to retire corporate notes; for core drilling; for
working capital; and for other exploration and develop¬
ment work.
Office —Houston, Texas.
Underwriter —
1
f
Telephone Co.
Proceeds—Will be
treasury for expenses
in connection with construction, extension and improve¬
ment of facilities. Underwriter—Blytlr & Co., Inc., New
Westland Oil Co., Minot, N. Dak.
April 17 filed 7,799 shares of capital stock to be offered
for subscription by stockholders of record March 24 at
one new
&
share thereafter.
a
reimburse
to
used
The record date is to be supplied by amend¬
Wilier Color
filed
writer—None.
-1963, and at $25
share for each three
None.
★ Transcontinental Gas Pipe Line Corp.
June
Weaverville,
derwriter—None.
rate of
Trans-Eastern Petroleum Inc.
of
/
May 26 filed 564,000 shares of common stock. Price—At
($1 per share). Proceeds—For capital expenditures
and exploration costs. Office—Santa Paula, Calif.
Un¬
is President.
Water
California
has applied to the California Public Utility
Commission for permission to sell an issue of 200,000
of
$1.24 dividend convertible preferred stock (par $25),
Convertible into common stock at $23.8095 until Aug.
lj
par
Uranium
Feb. 27
the basis
new
Western Pacific Mining Co.,
Mining Corp.
Nov. 6, 1957 filed 3,000,000 shares of common stock (par
one mill); Price—25 cents per share. Proceeds—For land
acquisition, exploratory work, working capital, reserves,
and other corporate purposes. Underwriter—None. Al¬
fred
•
offering has not been decided
The company
par ($5 per share).
Proceeds—To be
applied to the payment of $700,000 of short-term bank
loans incurred in carrying forward the company's con¬
struction and conversion program. Underwriter—None.
Fund, Inc.
May 14 filed 1,000,000 shares of capital stock
one
Co.
enter the
of the
Price—At
ment.
Co., Inc., Salt Lake City, Utah.
Townsend
stock at the rate of
Interstate Telephone
company
capital market late this year, but nature
on. Underwriter^
Previous issues placed
privately through William R.
Staats & Co., Los Angeles.
will
89,391 shares of common stock to be of¬
subscription by holders of outstanding com¬
for
bidders: White Weld &
California
filed
6
fered
Carolina Telephone Co.,
Power Co.
Electric
was
President Willard Wade announced June 9 the
Car.
N.
Prooeeds—For
Business
Stamford, Conn.
purposes.
Office—391 Ludlow St.,
bidding
Co.; Kidder, Peabody
Co.; Merrill Lynch, Pierce, Fenner & Smith; Carl M
Loeb, Rhoades & Co., and Bear Stearns & Co. (jointly),
Co., Inc.
:
reported that company plans to issue
was
&
26 filed
Lincoln, Neb.
Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 per
it
Underwriter—To be determined by competitive
Probable
$500,000 of 6% sinking fund debentures,
series A, due 1968. Price — 100% of principal amount.
Proceeds—For expansion program and working capital.
Business—The formulation, manufacture and sale of a
complete line of livestock feed supplements minerals
and pre-mixes.
Underwriter — The First Trust Co. of
(letter of notification) 27,272 shares of 70-cent
cumulative preferred stock (par $5) and 27,272 shares
of common stock (par 10 cents) to be offered in units
of one share to each class of stock. Price—$11 per unit.
Proceeds
For working capital.
Office — 111 E. Main
St., Morrietown, Tenn. Underwriter—Valley Securities
Corp., Morristown, Tenn.
6hare.
Products
/4:.
Laboratories, Inc.
reported company may issue and sell in
about 450,000 additional shares of common
stock,
1958
—
Walnut Grove
Timepian Finance Corp.
S.
California
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
March 25
G.
March 10 it
Price
and for
construction
The First Boston Corp., New
—
working capital and other corporate
(letter of notification) 300,000 shares of capital
At par ($1 per share). Proceeds — Foi
development of oil and gas lands. Office—574 Jefferson
May
Underwriter
—Electronics.
May 6
stock.
Thursday, June 19, 1953
.
and sell about $500,000 of common stock.
Utah Oil Co. of New York, Inc.
Co., Abilene, Texas
April 30 filed 2,000,000 shares of capital stock (par 25
cents). Price—To be supplied by amendment. Proceeds
--To selling stockholder.
Underwriter—Thomson Kernaghan & Co., Ltd., Toronto, Canada. To be offered in
Canada only.
.
To repay hank loans
—
March 20
City, Utah.
Texas Calgary
ment
C.
.
Registration—Scheduled for June 20
York.
(letter of notification) 900,000 shares of com¬
mon stock. Price—At par (10 cents per share).
Proceed*
—For mining expenses. Office—305 Main St., Park City
Utah.
Underwriter—Walter Sondrup & Co., Salt Lake
York.
&
Griswold
Utah Minerals Co.
condition of the exchange offer that it
be accepted by holders of not less than two-thirds (1,606,005 shares) of the outstanding 2,409,007 Middle States
common.
Underwriter—Dillon, Read & Co., Inc., New
common1; it is
Albert
April 11
for each 100 shares of Middle States
common
Proceeds
program.
ident.
45 shares of Ten¬
States Petroleum Corp. at the rate of
nessee
Proceeds—For exploration
be named by amendment.
of Portland, Ore., is Pres¬
pected to be $1 per share).
purposes.
Underwriter—To
Continued jrom page 69
Financial Chronicle
White,
Boston
Corp.
a plan
authorizing tn
offering of common stocK
approved
directors in connection \vith
an
stockholders, also to offer certain shares on the sa™
to employees, including officers, of System coiry
Clearing Agent—Merrill Lynch, Pierce, Fenner
& Smith, New York.
1
■ >
* •
to
terms
panies.
Grace Line Inc.
March 20 it
dent,
that
was
the
•
;
Lewis A. Lapham, "res plans to issue approximately
announced by
company
L]
Number 5752
187
lume
.
.
The Commercial and Financial Chronicle
.
(2783)
,000,000 of government insured bonds secured by &
preferred ship mortgage on the new "Santa Rosa'
Brothers; Merrill Lynch, Pierce, Fenner & Smith, and
Stone & Webster Securities Corp.
(jointly); White, Weld
& Co.; Eastman .Dillon, Union Securities &
Co.; Kidder
Peabody & Co., Smith, Barney & Co. and Blyth & Co.,
Inc. (jointly). Bids—Expected to be received on
Sept. 4.
:t
Paula."
"Santa
Underwriters
Merrill
Lynch
rce, .Fenner and Smith; Paine, Webber, Jackson &
rtis; Smith, Barney Co.; White, Weld & Co.; and F
'.rstadt & Co., all of New York.
1
—
Moore-McCormack Lines,
Great Atlantic & Pacific Tea Co.
19 it was reported a secondary offering of commoi.
b.
is expected in near future.
ing stock
Underwriters—
a
include: Blyth & Co., Inc.; Carl M. Loeb, Rhoade*
Co.; Hemphill, Noyes & Co.; Smith, Barney & Co.
Lynch. Pierce, Fenner & Smith
12, George H.
Buck,
President, said
that
caustic
preferred stock. Recent bond financing was made
vately. In event of competitive bidding for bonds or
ventures, bidders may include: Halsey, Stuart & Co
The First Boston Corp. and White, Weld & Co
intly); Stone & Webster Securities Corp.; Blyth &
of
announced that it plans to register
..j
com-
New
and debentures to be issued in connection
th acquisition of the Coastal Transmission Corp. Unnvriters—Blyth & Co., Inc.; Lehman Brothers; Allen
stock
Co.; and Scharff
placed privately. Proceeds—To repay bank loans and
new
construction.
•
■
1
and
Gas
Co.
a
new
line of credit with
a
of banks and expects to sell equity securities later
Norfolk
r
Bids
Western
&
Ry.
(7/16)
arch 31, G. W. Evans,
to be received by the company on
July 16 for the purchase from it of $2,340,000 of series
D equipment trust certificates. Probable bidders: Halsey,
ny
Stuart & Co.
Electric Co.
Kansas Gas &
Chairman, announced that complans to sell some bonds originally scheduled foi
d-year, but which sale may now be deferred until
e 1958 or early 1959.
Proceeds—About $8,000,000 for
instruction program.- Underwriter—To be determined
.competitive
bidding.
Probable bidders: Halsey,'
uart & Co. Inc.; Kidder, Peabody & Co., and Merrill
&
June
14
It
Power
was
&
Light Co.
announced
Halsey,
,
plans
company
issue and
to
.
June 20.
March
I'oposed issue of $32,500,000 of sinking fund debentures
$10,000,000 would be sold in the United States,
caring 4%% interest and due in 20 years.
of
the Fedissue first
Gas Transmission Co. has applied to
Power
mortgage
Commission
for
permission
to
St.
—
-orP. and White Weld & Co., both
Montana-Dakota Utilities Co.
*
he latter
part of this year or in early
"To be determined by competitive
issue and
bonds in
1959. Underwriter
bidding. Probable
Jjdders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
uerrill
Lynch, Pierce, Fenner & Smith and Kidder,
eabody & Co., Inc., (jointly); and Blair & Co., Inc.
Montana Power Co. (9/4)
% 12 it was reported that the company plans to issue
'Qd
sell $20,000,000 of first' mortgage bonds due l9'88.
For exploration and construetibn program,
•iderwriter—To be determined by competitive bidding.
r°bable bidders: Halsey, Stuart & Co. Inc.; Lehman
roceeds
—
Co.
bonded indebtedness of $6»500,000, and an increase in preferred stock from 25,000
shares to 50,000 shares. Proceeds
For repayment of
short-term bank loans and for construction program.
Underwriter—For bonds to be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Smith, Barney & Co., Glore, Forgan & Co. and Blair
& Co. Inc. (jointly); White, Weld & Co.; Equitable Secu¬
rities Corp. Last preferred financing was done privately.
South Carolina Electric & Gas Co.
April 7 it was announced by the company that it Plans
to sell some additional bonds during the latter part of
the year. Proceeds — Together with bank loans, to be
used for $16,000,000 construction program. Bonds may
be placed privately through Kidder, Peabody & Co.
authorizing an increase in
of New York.
oarch 24 it was reported the company plans to
eH an undetermined amount of first mortgage
Joseph Light & Power
April 15 it was announced that the company plans to
market $6,500,000 in bonds or preferred stock "sometime
this summer."
The stockholders on May 21 voted on
unsecured notes and common stock.
line system to cost about $111,Underwriters
Stone & Webster Securities
bonds,
roceeds—To build pipe
00,000.
reported company plans $300,600,000
tal outlay program.
capital.
subsidiary
& Telegraph Co.
capi¬
Proceeds—For construction program
in 1958 and 1959 ($137,000,000 in 1958). Underwriter—
To be determined by competitive bidding. Probable bid¬
ders— Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Public Service Electric & Gas Co. (8/20)
May 26 it was announced that the company plans
early registration of $60,000,000 of first refunding mort¬
gage bonds due 1988.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Kuhn, Loeb & Co.
and Lehman Brothers (jointly).
Bids—Expected to be
received UP to 11 a.m. (EDT) on Aug. 20.
Jan. 8 it was
larch 28, company announced it plans to issue on or
efore Dec. 31, 1958 $3,200,000 of first preferred mort¬
age bonds.
May be placed privately. Proceeds — To
ral
Proceeds—For new facilities and
Underwriter—Blyth & Co., Inc., San Fran¬
Pacific Telephone
invest¬
s| Midland Enterprises, Inc.
Tennessee
Corp.
cisco and New York.
I
Midwestern Gas Transmission Co.
larch 24 it was announced that this
of an
in
8
equipment,
ment company plans to offer to bona fide residents of
:aliiornia 10,000 shares of capital stock (par $1). Price
-$10 per share, less an underwriting discount of 8'/2%
pay bank loans and for working
sale
ably to stockholders).
f which
Inc., Fairfield, Caiif.
this newly organized
plans
Robert W. Miller, Chairman of the Board, an¬
nounced that it is likely the corporation will sell some
common
stock within the next several months (prob¬
Bloedel, Ltd.
a special meeting June 17 on a
announced
company
part of this year or early 1959.
Pacific Lighting
May
tockholders will vote at
•
reported
-
an
(par
Securities
additional
$50).
Corp.
and
100,000
Underwriters-
Paine, Webber,
Southern
Railway Co.
was
reported that the comparv plans to issue
about
$20,000,000 of bonds. Underwriter -To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Kidder Peabody &
Co., Inc.; The First
Boston Corp. and White, Weld & Co. (jointly); Morgan
Stanley Si Co.; Eastman Dillon, Union Securities & Co.,
and Salomon Bros. & Hutzler (jointly).
★ Southwestern Bell Telephone Co.
(9/23)
The company has asked the Public Service Commission
of Missouri for the right to issue $110,000,000 of deben¬
tures.
Proceeds—To
refund
outstanding issue.
Under¬
writer—To be determined by competitive bidding. Prob¬
able
bidders^ Halsey, Stuart & Co. Inc.; Morgan Stanley
Co.
Offering —It is believed that the issue will be
marketed in late September.
★ Textron, Inc.
June 16 Royal Little, Chairman of the Board, announced
that the directors of the company have authorized a
giving each
of common
stock for each 10 shares held on or about July 14. The
stockholders will also be entitled to purchase shares
which are not purchased under the primary subscription
rights. The company recently announced purchase for
approximately $7,000,000 in cash, of assets of Waterbury
Farrell Foundry & Machine Co.
subscription offer to
stockholders
common
shareholder the right to purchase one share
28
it
announced
was
Mo.
company,
plans to market
$30,000,000 of common stock in the latter part of
this year or in the first quarter of 1959. Proceeds—For
about
construction program.
United
June
5
Artists
•
Corp.
it was announced
that the company is planning
public offering of additional securities before the mid¬
dle of July.
Underwriter —F. Eberstadt & Co., New
York. Registration—Expected to be filed shortly.
a
June
16 it
(8/11)
reported the company plans the sale of
was
$20,000,000 first mortgage bonds. Proceeds — To refund
the 5 x4 % first mortgage bonds due 1987, and the balance
added to working capital to carry out the company's
construction
program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.: First. Boston Corp. and Blyth & Co., Inc.
(jointly); White, Weld & Co. and Stone & Webster
rities Corp. (jointly); Salomon
Secu¬
Brothers & Hutzler; Kid¬
der, Peabody & Co.; Eastman Dillon, Union Securities &
Co., and Smith, Barney & Co. (jointly); Lehman Brothers
and Bear, Stearns & Co. (jointly). Bids—Expected to be
received up to 11:30 a.m. (PDST) on Aug. 11.
amount of bonds and preferred stock
Underwriter
determined by competitive bid¬
ding.
Probable bidders—The First Boston Corp. and
Halsey,Stuart & Co. Inc. (jointly); Blyth & Co., Inc.; (2)
For preferred stock: Blyth & Co., Inc.
"yth & Co., Inc. and J. J. B. Hilliard & Son.
'roceeds—For investment.
was
For bonds to be
—(1)
.
was
it
20
the latter
(jointly); Kuhn, Loeb & Co. Offering—Ex¬
September or October.
'
it
.
undetermined
Webster
authorized
stock
*Utah Power & Light Co.
Pacific Gas & Electric Co.
Kentucky Utilities Co.
nie 16 company stated it will sell bonds and/or comon stock in
the last quarter of 1958.
Underwriters—
27
Glore,
of retiring existing bank loans and to supply
Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Kalman & Co., Inc.;
Glore, Forgan & Co.:and Blyth & Co., Inc.Bids—Expect¬
ed to be received on July 23. Registration—Expected on
& Co.
Master Fund,
First Boston Corp.;
the purpose
competitive bidding. Probable bidders
Co., Inc.; Lee Higginm
Corp.; Equitable Securities Corp.; Eastman Dillon
nion Securities & Co. and Merrill Lynch, Pierce, Fenner
Smith (jointly); Kidder, Peabody & Co. and White,
an,
Inc.;
cash for further construction expenditures.
determined by
MaclVEiillain, &
Co.
★ Otter Tail Power Co. (7/23)
13 the company has made application to the Fedcral Power Commission for authority to issue and sell
$9,000,000 first mortgage bonds due 1988. Proceeds—For
alsey, Stuart & Co. Inc.; Blyth &
acted in
&
June
Kentucky Utilities Co.
in. 21 it was reported company plans to issue and sell
0.000;000 of first mortgage bonds. Proceeds—To repay
ink loans and for new construction.
Underwriter—To
eld
Stuart
preferred
March 20 it
company
Forgan & Co.; Blyth & Co., Inc.
1
$10,000,000 of first mortgage bonds due 1988. Proeds—Fo£ construction program. Underwriter—To be
termined by competitive bidding.
Probable bidders,
alsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,
argan & Co.; Harriman Ripley & Co. Inc.; White, Weld
Co.; Blyth & Co., Inc.; Equitable Securities Corp.
company
will likely issue $10,000,000 bonds
later in the year.
Company's 5-year construction pro¬
gram calls1 for $90,000,000 outlay.
Underwriter—To be
determined by competitive bidding. Probable bidders:
deferred,
&
March
will sell this Sep¬
mortgage bonds providing new gas
supply from Northern Natural Gas Co. is approved by
Federal Power Commission. In event this project has to
be
stockholders
of
Union Electric Co., St. Louis,
Gas Co.
it .was announced
10
9
shares
Inc.; Salomon Bros. & Hutzler.
Illinois
tember: $20,000,000
Co., and Goldman Sachs & Co. (jointly).
Kansas
b.
expected
Northern
inch, Pierce, Fenner & Smith (jointly); Lehman
others; Eastman Dillon, Union Securities & Co. and
One & Webster Securities Corp. (jointly); Glore, For-v
in
are
Southern Colorado Power Co.
May
&
year or in early 1959, depending upon prevailing
market conditions. Underwriter—For any common stock:
The First Boston Corp., New York.
that the company plans to
and sell $3,000,000 of first mortgage bonds. May
ue
Electric
announced that
this
*
■irch 25 it was announced
•
State
was
agement intends to negotiate
group
Inc.
York
approximately $7,500,000
from additional financing will be required for construc¬
tion expenditures for the balance of this year. The man¬
"■v-.y.;'/y;/
Indiana Gas & Water Co.,
..=;■■
March 7 it
& Jones, Inc. Registration—Expected
;
:iy 2.
acquisition of American En¬
for 2.4 shares of American Encaustic
common
later part
Un¬
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
& Co.; First Boston
Corp., and Dean Witter & Co. (joint¬
ly); Blyth & Co., Inc.
in
England Telephone & Telegraph Co. (8/26)
April 11 it was announced company plans to issue and
sell $40,000,000 of debentures.
Proceeds—To redeem a
like amount of 4V2% bonds due 1961. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co. Bids — Expected to be received on
Aug. 26.
"'v
Inc.; Drexel & Co. and Dean Witter & Co. (jointly)
First Boston Corp. and White, Weld & Co. (jointly)
stock financing. There is no
eferred stock presently outstanding.
Private sale of
000 shares ($3,000,000) of preferred is planned.
2 company
stock
New
,
-7-:-
company,
reported that the company contemplates
this year. Proceeds—For construction
program.
derwriter— To be determined
by
Jackson & Curtis.
common
Subject to approval by stockholders
offer calls for exchange of 1 share
common.
derwrote last common
Corp.
latter
of National
ie
ae
Offering—Ex¬
was
i?eabout $50,000,000 of bonds in the
of
Stone
proposed
Tiling Co.
★ Southern California Edison Co.
June 16 it
the liners S. S. Brasil
Brothers, both of New York.
with
connection
1
jn
on
Underwriters—Kuhn, Loeb & Co.
National Gypsum Co.
Company plans to register additional
com-
end of this year in the form of first mortgage bond*
Houston
ship mortgage
S. Argentina.
pected this Summer.
plans to sell some $7,000,000 in new securities bj
y
S.
and Lehman
tiackensack Water Co.
•ch
$24,000,000 of government insured bonds secured by
first preferred
and
y
Merrill
Inc.
March 24 it was announced company plans to issue and
sell
71
Washington Gas Light Co.
May 26 it was announced company plans to
sell about 300,000 shares of new preferred
issue and
stock (no
Proceeds—For construction program. Underwrit¬
ers— Johnston,
Lemon & Co., Alex. Brown & Sons,
Auchincloss, Parker & Redpath and Folger, Nolan Inc.
Offering—May be early in Summer.
par).
★ Washington Water Power Co.
(7/23)
Kinsey M. Robinson announced plans
for the sale, before end of July, of 200,000 shares of com¬
mon stock and $15,000,000 first mortgage bonds.
PriceTo be supplied by amendment. Proceeds.—For working
capital. Underwriters—Kidder, Peabody & Co.; Blyth &
Co., Inc.; White, Weld & Co., and Laurence M, Marks &
Co. Registration—Expected June 26.
June
16 President
Wisconsin
Power
&
Light
Co.
announced that company plans to issue
and sell $10,000,000 of first mortgage bonds. Proceeds—
To retire bank loans and for construction program. Un¬
derwriter — To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Smith,
March 17 it was
Barney & Co. and
Robert W. Baird & Co., Inc.
(jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); White, Weld & Co., Kidder,
Peabody & Co. and Salomon Bros. & Hutzler (jointly):
The First Boston Corp.
Offering—Not expected until
late in
1958 or early in
1959.
Wisconsin Public Service
March 4 it was
Corp.
announced company plans to
sell about
securities in the last half of the cur¬
rent year.
The type of securities has not yet been
decided on. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: (1) For any bonds-Halsey, Stuart & Co. Inc.; White Weld & Co.; The First
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬
rities & Co. and Salomon Bros. & Hutzler^ (jointly),
Kuhn, Loeb & Co., and American Securities Corp.
(jointly). (2) For any preferred stock—Merrill Lynch,
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co., jointly), Leh¬
man Brothers; Kuhn, Loeb & Co. and A. C. AUyn & Co.
Inc. (jointly); The First Boston Corp.; White, Weld *
Co.; Kidder, Peabody & Co.
®
$12,500,000 of new
iv 1
72
The Commercial and Financial Chronicle
(2784)
Industry Assets
Share
Mutual Funds
Total net assets of the 144 openinvestment company (mutual
fund)
members
of
the
Fund, a proposed new mutual fund to be
spon
sored and managed by Lazard Freres & Co., one of the
oldest
investment banking houses in the United States, has
filed
New Fund
098,844,000 at the end of May, the
Association
At
the
June
announced
investment
company shares dur¬
ing May totaled $109,483,000 com¬
pared with $122,206,000 for the
month
Securities
and
$116,354,000
for May a year ago.
and
Study by SEC
Exchange
companies
as authorized by Section 14(b) of the Investment ComApt
f
Act ol 1940 it had retained ttio Securities paonnt»/>vi ttni4 a-p
of 1 qln it h'.wl votoiiiorl the c
Research Unit of
nanv
em i
pany
the
Wharton
School
of
Pennsylvania, to make
Finance
and
t*i
mo
University of
fact-finding survey and report on certain
a
aspects and practices of registered investment companies.
Under Section
"The Commission is authorized, at such
times as it deems that any substantial further increase in size of
investment companies creates any problem involving the protec¬
tion of investors
14(b)
the public interest, to make a study and inves¬
tigation of the effects of size on the investment policy of invest¬
$38,932,000.
ment
totaled
For April, redemp¬
$32,453,000; during
ago, they came to
May a year
$40,306,000.
The popularity of accumulation
plans for the periodic purchase of
mutual
shares
fund
continued
New plans opened in May
19,935 compared with 17,€78 for the previous month and
19,503 for May a year ago.
Cash, U. S. Government securi¬
ties and short-term corporate ob¬
ligations held by the 144 openend
member
companies totaled
$633,146,000 at the end of May,
1958.
This compares with $638,-
strong'.
totaled
■990,000 at the close of the previous
month and $528,788,000 at the end
of
May, 1957.
or
companies
and
security
on
markets,
on
of
concentration
control of wealth and industry, and on companies in which invest¬
ment companies are interested, and from time to time to report the
results of its studies and investigations and its recommendations
to the
(Special to The Financial Chronicle)
FRANCISCO, Calif.—Paul
Sylvester has become connect¬
ed with Irving Lundborg & Co.,
IB.
310
Sansome
the
New York
Street,
members of
Pacific
and
Coast
Stock Exchanges.
The Commission has
previously received a preliminary report
containing a general research plan for this study, and the present
survey will explore in detail certain specified areas to enable the
companies
has
created
any
problems
which
remedial
require
legislation.
is
14
paying
cents
June
of
Way to Explain Dollar Cost Averaging
One of the chief
the
advantages to investors of mutual funds is
buying shares at the rate of so many dollars'
monthly—of dollar cost averaging. As everyone
knows in the mutual fund, industry, this formula approach to
equity investing is one of the most potent extant.
quarterly
or
investor, for example, who started to buy the stocks in the
Dow-Jones Industrial Averages at the peak of the market ill 1929
would have broken even by early 1932 and would have been
it?
K
"f'' —,hv
ahead—that is, TirAIll/-! TtOTTA showed a' ^.1301301' profit''—by "ff*
would have
"paper
the
O
'
rfclX?O
1
happy to report that one man has devised a simple,
but unique method by which a mutual fund salesman can explain
So,
v/e are
approach to investors, and by which
it to his new men.
a
mutual fund
close
different
-
mutual
The
fund
salesman
and
the
investor
each
take
is
salesman
buys
so
Boston 0. Mass.
invests
averaging.
dollar cost
At
American Investors Fund,
being offered to the in¬
vesting public at net asset value
per share, without any sales "load"
charges or underwriting commis¬
many
shares
the
end
of
so many
a
month
dollars' worth
investor
—
and
thus
is
a
month and thus
the
their
sell
INCOME? /
Two With Merrill
and
income
to
CLEVELAND,
the
staff
Talbot, 634 Fourth
Street.
Ohio
—
Arthur
B. Hayes and Ellwood W. Lewis
have become connected with Mer¬
rill
Lynch,
Pierce,
Fenner
&
Smith, 216 Superior Avenue, N. E.
selected for
ing
these shares became effective last
The
•week.
the
in
fund
v:
yr>yjYiYn'»ffi
"American
fund
i
the basis
The
^Incorporated
7 Income Fund
m
mutual
fund
whose
it to
return
policy
income
as
a,
nrovides
large
may
common
a
for
its
fund is available from
investment dealer.
The Parker Corporation
200
Berkeley Street
Boston, Mass.
Dillon, Read & Co
investment
securities.
Commodity Fund
It
Offers Slis. in Fla.
$10.86 per share based on last
Tuesday's net asset value, repre¬
Futures, Inc., a mutual func
senting a gain of 8.6% since Jan.
16, 1958, when the fund made its dealing in commodities and com
futures, such as cocoa
first
investments.
It
has
been modity
cotton, eggs, rubber and wheal,.
as a private fund since
has registered and is now
offerings
time, pending completion of
registration formalities just shares for sale ip Florida.
operating
that
the
Futures, Inc.
1948
and
buying
and
organized
was
has
been
ii
eommoditie:
selling
Shares
stocks selected for
n
INCOME:
is
a
mutual
years were
Market June 25
unsuccessful, but
There has been
registered with Inc. shares rose from $2.84 or
newly-organized Boston Dec. 31, 1956, to $5.08, for a lie
investment fund called the Mutual gain of 79%, not including a profi'
a
Securities
Fund
of
distribution
Boston.
The
per
filing will
cover
200,000 shares of
Brothers
will
this
newest
be
the
dividend
15
of
1958
so
far
moderate
a
has been sustained.
loss
cl
ne
Eii
OnJun(
th
6,
1958, shares were offered a
Co.,
bf
Information
on
Futures
underwriter of $4.02.
Securities
Inc.
addition
to
fund
the
any
shares may be secured froir
securities dealer in Florida oL
IS
industry,
and
the
Investment may be obtained by writing
t<Jj|
IS
Managers, Inc. will be the invest¬ Futures Distributors, 37 Wall St.
ment
advisor.
Norton
N.
the
New York 5.
Keller,
who is President and Director
It
of
underwriting house and
advisory organization, will be
The
new
It
6%, with
$25,000.
to
will
per
the the Research &
a
appointed
di¬
sell
at
out
of
Manager o
Statistical Depart
ex¬
Futures,
Dr.
Inc.
Advisory Council
F.
Hickernell
Warren
American
Business Shares
A Balanced Investment Fund
Company
between
selected
selected
FREE prospectuses about these mutual funds
from
your local investment dealer or:
for
for
supervises
bonds
stability,
growth
Prospectus
Company
and
and
portfolio bal¬
preferred stocks
a
common
stocks
possibilities.
upon
request
Loud, Ahbktt & Co.
4
New York
—
Chicago
R
Futures, Inc., stated that Mr 0
Muir will specialize in sugar fo]
the Fund.
Other members of tn<
of
are
anced
th(
making the announcemen
D.
Donchian, Presiden
S&ivii
The
beei
Richard
registration
TC
pi
ol
member of the Advi¬
a
Council of Futures, Inc.,.
commodity mutual fund.
^
In
IS
& Co., Suga
sory
a
breaking point
Mutual Securities
be
.
tha
Muir,
ment of B. W. Dyer
one
share. The load
a
C,
n<
'
announced
Economists and Brokers, has
fund will be of
classification.
"
*
also
was
Alexander
of principal and income.
f«—i
Commonwealth Income Fund
fund investing for current income.
Buildingt San Francisco
m
cent:
share.
In
beneficial interest.
stocks of well-established
for their possibilities of (
Russ
oper
past four years hav(
quite profitable on balance
In 1957, while most stocks wer
declining, asset value of Futures
reasonable income
North American Securities
x
at ions for the
Reach
to
possible growth of principal.
rrROWTH: Commonwealth Stock Fund,
long-term ai vm/hh
long-ieriii growth
I
ii»x
engaged
for almost ten years. The first few
companies selected
each
th<
,
was
and
invests in common
on
be
^diversified ownership of bonds, preferred, and
£
involved.
A prospectus
of
company
the New York.
by June 25th.
Commonwealth Investment Co.
balanced investment program through
dalaNCE:
r—i
your
sued will
of
offering price of the fund's
varies
from
day to day
reflecting changing market values
pects
i—|
investment
an
shares
at
first
compa1
This trust is being organizer
by Charles W. Engelhard, who i vl
prospects for better-than-average Chairman of
Engelhard Industries
capital appreciation consistent
Inc., Newark, N. J. It is expecter
with good income and reasonable
that Mr. Engelhard will be Chair
safety of principle.
man of the new fund.
will be
■
,1. ri*k
7
,h*
Service."
of market action.
investment
price of $10.64
CURRENT
--".
Investors
fund places primary emphasis on
selection of stocks having the best
mm
HI
A
of
engaged in gold minim
will
n
objective
those
on
versified open-end common stock
i!
INCOME?
investmen
shares
normally be in¬ closed-end type under the Invest
vested in common stocks, which ment
Company Act of 1940. Un
are
selected
almost entirely
on derwriter of the shares to be is
mm
ahead.
for
medium for
a
common
was
of the five trustees.
years
INVESTING
Africa. -Thi
organized ti
been
organized and gold bullion.
by its Investment Adviser, Amer¬
On
June
13, American-Soul]
ican Investors Co. of Larchmont, African
Investment filed for pei-_
N. Y. which is also the publisher mission to
become registered a
of capital
growth
possible
added
Lynch
(Special to The Financial Chronicle)
James
Geraldine Lip—
invested in a
mutual fund
liit of securities
lllllil
and
been
have
of Hannaford &
Eitabliihid 192S
A
ROSA, Calif.
R. Ketchersid
ton
Investors
the
was recently
South
has
registration statement cover¬ nies engaged in business in
Soutl
the first public offering of Africa, with
particular emphasii
Keller
SANTA
Incorporated
FUTURE
provide
in
in
trust
new
been
investing process, both the salesman and
shares, and the investor finds he is well
ahead with a good profit showing.
Mr. White has already placed these kits with Investors Plan¬
ning Corp. and other firms. The price is about $1 a piece for
the
(Special to The Financial Chronicle)
for
Trust, Ltd.,
registered
•'
sions.
the SEC
Hannaford & Talbot Adds
1■
new
investment trust calle<
American-South African In
vestment
are
Inc.
INVESTING)
A
the
Inc.
the kits.
Incorporated ISIS'
11
Planning Stage
mutual
five
buying
paper
The prospect
business
C/Cc^/titalHrfe
ffnUiianee c€cm/uriif/f Trustee
in
new
M utual Securities
prices.
share averaging.
June 19, 1958.
50 State Street.
name
scrip representing money and invest by
"share certificates."
holders
ol
„
is
Dougald C. White, 42 Crane Road, Scarsdale, New York. His invention, which has been cleared by the
National Association of Securities Dealers' Ray Moulden, fits into
a leather case about the
size of one used to carry calling cards.
The
certificates of record
the"
The fellow's
pieces of
payable
to
a
The
However, one of the stumbling blocks to the dollar cost
averaging system is that it has not been easy to explain to people
interested in investing in mutual funds.
*
of
1958
of
fund,
The
system—by
worth
six
net
income,
23,
trust
at
dividend
shares
Briefly, the system utilizes a "stock market card" showing the
prices of a stock—or mutual fund share—during six months at
Lund
share from
a
per
investment
Lilc
The
announced.
DIVIDEND
Massachusetts
Share Sale
of
New
this formula
Life Lintel
Gold Fund in
•
Commission to determine whether the increased size of investment
sales manager can explain
Massachusetts
Begins First
A
start of 1933.
SAN
South African
Congress."
An
Irving Lundborg Adds
American Fund
Commerce,
Shares turned in for redemption
for
the month
were
valued
at
tions
with the Securities and Exchange Commission
in.
creasing the size of the offering from 2,500,000 shares to 6,000
000
shares, thus raising the size of the fund, from about $35,000 00n
to $85,000,000. This will be the net to the fund after
commissions
are deducted from the planned public offering price of
$15 a share
amendment
Commission on June 13 an¬
that in furtherance of its study of the size of investment
nounced
April, assets
totaled $9,786,243,000; as of May
31, 1957, they were $9,730,861,000.
Investor purchases of open-end
previous
The
16.
of
close
an
By ROBERT R. RICH
National
Offering
Lazard
The
end
Association of Investment Compa¬
nies rose to a new high of $10,-
Thursday, June 19,195.
.
Lazard Fund More Than Doubles Planned
I
Exceed $10 Billion
..
—-
Atlanta
—
Los Angeles
Number 5752
187
'Plume
.
.
The Commercial and Financial Chronicle
.
(2785)
and .financial consulJohn M. Westcott, Man¬
conomist
ant and
Research Department of
Treene & Ladd, members New
ger,
Looks for Mkt. Rise
Arthur
Partner
Peacetime Benefits
IDS
Wiesenberger
rork Stock Exchange.
the
New
York
Stock
technology
is
cession
de-
nation's
our
ot
of $»y,D44,l79 were pro$89,544,179
during the month of May
no
^uSlmmons> President>
Researcli Efforts
landed to maintain
oaies
Sales
duced
buiTf his-nTe' £? thV?eJ f0.rce of investors
imihe- Diversified Services, Inc
Joseph
that while he has
pays
From Defense
The'scientific
May Sales Top
$891/z Million
Wiesenberger, Senior
ol
Baltimore & Ohio
an"
Baltimore
America
tne
in
oViOorJ
emLs.
•
J.
a
~w~v
"
—
talcp
•*
■
clients about
our
H
ITIATP
month
ago
nt+i+nrlrk
to
iu
led the nationwide sales organizaxv-u uuc lldtiUUW,
inn
take a more positive attitude to- lion since 1947.
,
e.
.
£
nd
the
of
managers
National
!i 5e(Liritne/ f>°vprm^2n nnnUnnn Tim
} issets,
i
.u-
^
three
phases," he continued. "First
Railroad
to
would
in
tral
the
Both
totaled $25,799,229 for the month
recovery from the Previous de- The funds, all affiliates of IDS,
cline5 second a further recovery are Investors Mutual Inc., Investsolid business improve- nrs Stork FnnH Tnr
Tnttocthro
eport highlights the scientific ef- based upon
the
reported
this year.
far
•
B.
&
trol
over
volume
T
shortcomings
ts
fasted
years 1949 to 1956.
The
phase is still to come, and
lhird
there
out that
were
win
dramati-
Activities points
Uoimc
1942, and its first phase
ered the
continent
this
perimeter _ol
wain-
the north-
ng) Line spread across
Tii
-m
early
Total
son
revealed when the system
ailed to detect the Russian Sputliks orbiting no higher than the
ally
is
indication that it
begin. That is the rea-
every
SOon
maturity
value
of
face-
feej that it is time to begin
we
one's
increase
t0
common
stock
holdings."
When Mr. Wiesenberger was
last
'peak of a ballistic missile trajec- in London, in May of 1956, he
ory."
However, Robert Colton, commented, at a luncheon given
Janager of Nationals Atomic and
his honor at the City of London
Uectronics Division reports cur- Club> «what we see in prospect is
ent research projects are devel- no real coliapse of business activ-
cates purchased by individual investors during May amounted to
$63,744,950.
accumulation
These
certificates
were
»issued
by
lil¬
vestors
Syndicate of America, Inc.
Syndicate Title &
Guaranty Company, New York,
Investors
and
JDS
both
subsidiaries
I|
AniPriPQii
H.xXIIlvi.lA/tlll..
T
II*
a
1
.
I Oldl/YsfeClS IB1 "11(31
_
+
$70,329,849, equal to $8.26
1953,
aeain^
g
Hpfpnsps
varfaie
re-
submarine
nnti
in pin Hp
h
iw inrf^
a
advanced
rf
fipiru
-
such
tempering of corporations a share (or $8.56 a share, adjusting
mtentl0n to expand plant. Co - for reinvestment of the January
sumer well maintained. All in all, 1958 capital gain distribution).
purchasing power is hkely
to be
some
Tbjg
compares
so
of
con¬
the lower
on
traffic and
recent
mean
cars
still
main¬
have increased
months,
the
this
but
does
road does not have
equipment to meet the
present level of carloadings.
B.
&
O. has made
reducing
its
business.
from
loss
aC„
n
and gas
bacteria
as
5%
a
to
activity,
deci,ne ln
10%
of
ts
W™hfip
this area, while
ennrrert
hv de-
spun ed by de
needs, could result in many
peacetime applications of real lmportance to mankind
tense
Highs for
520, to below 400;
The
Inc.,
months
of
Fund
Income
in
ally went down to 416.
passenger
Selected welcomed its youngest
on
June 6, when a
Boston,
report for the three
ended April 30, 1958, dis¬
Dividend Shs., Inc.
Dividend Shares, Inc., an open-
closed the jLuxxvxwxwb.
wcu
me
following:
it
estimated
is
$400,000
of
out-of-
This
saved.
was
sav¬
ing is expected to be higher in
coming months and probably will
amount to as much as $6 million
annually as compared with previ¬
estimates of
ous
$5 million
some
Freight
revenues
account for about 95%
that
the
passenger
eliminated for
been
purposes.
now
of gross so
problem has
all practical
In this respect, it is pos¬
that further coordination
sible
business
passenger
Selected American,
high end mutual fund under Calvin and a Vice-President
o£ $21 244 235 at the end of the Bullock management, reports that Sor firm.
fjrqf miirfpr
a
p*ain of 9 5% over both totsl net cissets 3iid the nurnTotal assets rose
the
to
a
new
...n
—
ber of ^shareholders had :reached
them highes.levels m the^history
LoOlUIS-SayleS
B..N
Report Sharp (lain
|^ck° saM
Maurise T. Freeman, President
W58Pla'/in/\°?2^°no3Per ^le
$16,929,784 at Jan. 31,
increase in assets is due
net assets of
1958. The
primarily to
increased purchases
of the fund's
shares bv investors.
additions in the portadding Amerlean Insurance Co., Boston Insurance Co., Carrier Corp., Greyhound
Corp., Kresge (S. S.), Maine Publie Service,
Montgomery Ward,
'yaMfo YalllC
31, 1958, total net III Asset
As
asset J
of
^24,432 946
^ Bu1 oc
. ^ of Loomis.SayieS Mutual Fund,
assets
at announced the net asset value of
This
c0 1?
,
$199,479,202 total net a
New major
folio:
were
mdiiannl
made by
ttnian
ttiva
TlIQllVBHPP.
„ft^nnlv
these
futul?e
conHdence
confidence
but
of'the
«
i
90 168
_
Recent assets of $61,866,000 repin resent a new high and compare
in with $59,175,000 on the peak day
records'indicate
investor
r0mnanv
e
was
from $38.15 on
Oct 31, 1957 to $41.80 on April
30,1958.
..
the fund increased
shareholders
of
4
Mnv
.
American econo
-n/r_^
T.
in t\fT-v fmrtaivinn 1 aa1/clast July.
the stock market favlx/flvh
nonspeculative, balanced investmentpOSition—for patience and an
aggressive process of searching
tablished in 1932, is the largest oi
Morris, Sinclair Oil and Univer- ftve open-end and one closed-end
sal Leaf Tobacco. Reductions were
fund managed by Calvin Bullock. out attractive investment oppormade in C. I. T. Financial, Douinvestments in its port- tunities in individual securities,
Aircraft
and
Seaboard
Fx-
Largest -vestme.xts
in
group
With First of Michigan
(Special to The Financial
drug and
—
medical supplies
b]fought ?ut
^
inai
a
sevac
Licix-niit,
r
group
The largest indi- than 500
below the first quar^ ^ 1957.
Approximately one
Qut of three important manufacturing companies is showing an
formerly with Allan Blair & Co. Texas Company.
earnings drop of over 50%.
CHICAGO, 111.
—
down
were
compared
as
in
April,
last
month
cars
51%
showed
coal
and
drop of 30.4%, in¬
a
the heavy industries on which this
carrier is highly dependent. The
improvement in these carload¬
ings during the current month.
Miscellaneous
loadings
dropped
20.7%.
in
May
Average daily carloadings
amounted to 7,394 ears
against 7,051 cars in April and 9,893 cars in May a year ago.
It
is
officially reported that
while conditions in early May re¬
about
mained
April, theYe
ordinary net income for the
six months ending June 30, 1958.
This dividend represents the same
as
was
June last year
26
June
on
paid at the end of
and will be payable
stockholders
of
to
May 29.
Total net assets of the Fund on
May 29 were $11,443,084 as com¬
with $9,436,114 on Dec. 31,
pared
During this period net asset
1957.
value
share
per
was
increased
$27.67 to $30.80.
Pliilaclelpliia Fimc I
Fund
recorded
a
20% increase in assets in the five
May 31, 1958, Roy
R. Coffin, President, reported.
On that date total assets
had
ended
months
$6,189,114 from $5,159,888
on Dec. 31, 1957.
Net asset value
on May 31, last, had increased
to
$8.20 a share from $7.29 at the
risen to
yearend.
Fund's largest single
stock
commitment
on
com¬
May
1958, was in Georgia Pacific
Corporation, which accounted foil
4.9% of total net assets and the
next
largest single holdings of
common stocks were A. O. Smith
Dow
and
Chemical!
On May 31,
Fund was invested, as
follows: 15.1% in corporate bonds
and
cash and the balance in a
1958,
the
selected list of common
stocks, of
in utilities.
McDougal & Condon Adds
(Special to The Financial
Chronicle)
111. —Ralph M.
has been added to the staff
CHICAGO,
about 35%
Pierce
of
208
and Condon, Inc.,
South La Salle Street. He was
McDougal
previously with Allan
early part
attributed
is
the
to
of
point
below
far
been
the
out
months in
a
B.
&
O.,
how¬
traffic
that
has
nine
normal for
This makes the
row.
business of the rail¬
most prolonged slump
drop in the
the
road
experienced since World War II.
On March 31, 1958 cash items
amounted
to
$21,459,000, while
current liabilities
Net
were
$76,728,000.
working capital was reported
at $18,142,000 as compared with
$21,708,000 a year earlier. Depre¬
ciation charges exceed 1958 equip¬
ment maturities by some $8,400,000.
deferment this year on
Tax
amount
will
amortization
accelerated
about
to
$1
a
common
share against $1.80 a share in 1957.
Now that the road has success¬
completed
its
recapitaliza¬
tion, the management has turned
its attention to further improve¬
in
efficiency.
operating
Property betterments in the form
of yard rehabilitation, installation
of additional C. T. C., mechaniza¬
tion of maintenance and account¬
Assets Gain
Philadelphia
in
as
slight turn for
the final half of last
the better in
ments
20 Percent
Has
depressed
as
was a
month and moderate improvement
Officials
$0.32 per share which is payable
companies averaged
Robert G. &
1 )
>
c,
,n
,
^alsh has become affiliated with vidual holdings were in Standa d
First of Michigan Corporation, Oil Company (New Jersey), In135 South La Salle Street. He was ternational Paper Company and
,
cars
but
considerably lower than the 257,221
cars
of
May, 1957.
Among
major commodities, iron and steel
ever,
x^
(11.53%), followed by pe- earnjngs is under way. In the first
(10.23) and the chemical quarter of 1958, earnings of more
(10.14).
192,233
183,314
higher operating performance of
heavy industries, particularly steel
during recent weeks in June.
from
which 13% were
troleum
Chronicle)
—r,
T11
the'
^
to
with
of June. The mild increase in car-
31,
to
ed
is continuing during the
Fund, Inc. declared a dividend of
The
Dividend Shares,
Carloadings of the Bal¬
timore & Ohio last month amount¬
be
might
May 29 the directors of the
Rowe
Price
Growth
Stock
mon
nance, Gillette, Merritt-Chapman
& Scott, National Supply, Philip
last year.
fully
J
as
of
On
from
5/h.r™=.S°w'S«i
$19,389,469 for the last quarter
year ended Jan. 31,
ofthe fiscal
......
of its spon-
like
not
ported for the month of April
from the corresponding month of
loadings
opened as a trust account by her
paternal grandparents, Mr. and
Mrs. D. H. Kind.
Mrs. Kind is
Secretary of
the
was
an
least
record
for
from
This
at
amount
a.m.
25.27%
1957.
the decline of 27.5% re¬
Washington,
Janet Louise
Stark. Little Miss Stark was then
one
hour old.
The "plan" was
11:21
of
of
severe as
that
pocket cash
1957
shareholder
In May, carloadings recorded
drop
month
increase in steel production in re¬
with total net asor
$9.13
a
it.aclu- piaia for systematic accumulation
of the fund's shares was opened
Record Gains for
its
13
a
cent weeks should be reflected in
$69 061,792,
'
Youngest Shareholder
at
Fund
Boston Inc.
Tnnp
be judged
at that time he
looked for a drop in the DowJones
Industrial
Average, then
a
have
and
8,512,359 compared with 7,557,658
|act that
the
around
New
ol Mr. Wiesenber-
predictions may
gei.'s
at
Through the elimination
»
hkely."
rpbe accuracy
Freight traffic continues
fairly low ebb, but there
been signs recently of some pick¬
of this service between New York
»'
1
bring about savings to both
of these carriers.
dicating the drop in production in
big step in
a
Itowo Price
3
devests Atomic a 10«A decline in earnings, and a ghare at June 13_ 1957, shares Assets Rise
ffivitiesand"scientific progress Vt
W dlvldencls Seem outstanding at June 13, 1958, were
langers
worked out with the Pennsylvania
in the Mid-West which
up,
ac¬
expenses
L.,lt annually.
anewmwMWn ity_Tn0, sharp decline. at all.. All
Edward P. Rubin, President of
S J,M intOTcmt and wa-lo,ok ior 15 fom.e/hading in Selected American Shares, redpnoerous mis? m!?
1,1 ,suc
industries and p0r^s total net assets at June 13,
as
the most dengerous m
building
and
automobiles,
e&tioy
deficits
tain its property to meet the pres¬
ent volume of business. It is true
enormous cost • of until 1946. The second phase cov- amount and participation certiii-
/j®
(distance
DEW
he
Cen¬
O.'s showing has been
sufficient
.
;ressive, lawless nations."
York
sizable
the road to cut-back
in
iituxui
xix
New
this
during the pe^
riod. It is reaping the benefit of
large capital expenditures in the
postwar period. This has enabled
not
wtdruim
far
so
System and the Pennsylvania
have
that bad order
'iii
black
complished through excellent
inic'edhion of1SAtom?cS:Activittos Ward purcJ;af,s, °' ft°ck- We have
Gr°ss dollar volume of sales of
shed bv National Securities ie^01nmetided that theynowmain- shares in five mutual investment
Research ^Corooratfon sponsors tal" about a 75 /? e,?ulty P05'11™- funds managed and distributed by
Keseaicn ^oiporation, sponsois
Every long bull market has Investors Diversified Services Inc
n
is
in
year.
m
of
Railroad
operate
ontributSv to jne growth and ?dded in.theTcou,rse °f bei"g.in: 0* Sales. Mr. for 24 years andwith
to3 the3growth a^d teryiewed London, "we advised the company Clark has been has
rosperity
Ohio
the
h/.moThe/bulfmXT f°U0Wed ^^fentatives^mahe 4 special
«In
fact».
Mr.
Wiesenberger the IDS Vicl-PresWenUnTharee
ontr.bution
&
the only "Trunk Line" carrier
East which has been able
temporary letdown
a
73
Blair & Co.
ing and other moves could be
important economy producers
when completed. In addition some
,
freight cars are sched¬
delivery
during
1958
the retirement
of older cars, thus reducing the
need for expenses for heavy re¬
pairs. Also, when full dieselization has been accomplished, trans¬
2,500
new
uled
for
which will permit
portation
reduced
expenses
sharply
should
be
of fuel
because
savings and more efficient opera¬
tions.
ance
Also,
equipment mainten¬
will be reduced.
Ohio currently is
be in a position to
expenses
Baltimore
believed
benefit
to
&
considerably
in
any
up¬
in
traffic from current
levels, particularly in view of its
swing
good physical condition and geo¬
graphical location. It still remains
as
a
large carrier of steam coal
for utilities expanding in its serv¬
ice territory and if present pro¬
posed legislation now before
gress is enacted, it may be
position
to
obtain some of this
hauled
bituminous coal now being
by barges.
Con¬
in a
74
The
Indications of Current
week
Latest
AMERICAN IRON AND
Indicated
Steel
(per cent capacity)
June 22
Previous
Week
STEEL INSTITUTE:
operations
following statistical tabulations
latest week
Business Activity
or
Month
56.4
ingots
(net tons)
castings
and
June 22
'Crude
.
(bbls.)
average
(bbls.)
output (bbls.)
output
Kerosene
Residual
Finished
Kerosene
(bbls.)
Distillate
ASSOCIATION
OF
7,487,000
7,255,000
26,438,000
27,966,000
2,003,000
12,460,000
1,725,000
1,569,000
1,568,000
12,251,000
11,964,000
11,130,000
U.
Public
and
1
6
22,344,000
21,469,000
19,114,000
26,148,000
6
93,037,000
87,858,000
78,287,000
101,789,000
65
June
6
62,810,000
61,383,000
59,120,000
41,246,000
43
733,477
579,204
Federal
7
612,715
529,547
7
495,052
480,084
495,748
$417,704,000
June 12
174,747,000
304,958,000
171,720,000
309,631,000
200,517,000
June 12
234,882,000
242,957,000
June 12
196,178,000
173,876,000
181,550,000
207,924.000
.-June 12
108,780,000
135,755,000
53,332,000
35,033,000
:—
:
,
—
$435,399,000
June
Pennsylvania anthracite (tons)
DEPARTMENT STORE
Other
Electric output
FAILURES
IRON
INC.
steel
Pig iron
100—
396,000
339,000
INDUSTRIAL)
DUN
—
7
138
116
135
12,109,000
9,806,000
11,681,000
11,257,000
20
1,120
^45
62
38
380
382
31
43
239
237
232
28
28
32
41
P1
39
39
38
-
—
...
buildings
35
m
•
327
325
facilities
5.967c
5.967c
5.967c
38
,
and
—
water
systems
_
265
5.670c
Public
service
—June 10
$66.49
$66.49
$66.49
$64.56
—June 10
$35.50
$36.00
$32.67
$54.83
All
other
enterprises
and
development
111
65
64
46
53
33
35
78
83
11
12
86
1
public
80
37
_
—
375
117
_
88
49
—
-
515
68
Highways
11
.
'
V
108
'470
?•
117
M. J. QUOTATIONS):
CONSUMER
24.775c
24.425c
24.225c
31.400c
OF
une
—
CREDIT OUTSTANDING—BOARD
GOVERNORS
:—Tune 11
11
23.150c
-"22.550c
21.900c
29.075c
SERVE
une
11
11.000c
11.000c
12.000c
14.000c
mated
une
11.800c
13.800c
———
,—
in
millions
10.800c
10.800c
10.500c
10.500c
10.500c
11.500c
10.000c
10.000c
10.000c
11.000c
-une 11
24.000c
24.000c
24.000c
25.000c
94.625c
94.500c
95.500c
98.250c
Other
S. Government Bonds—
-June 17
corporate
June 17
.95.82
96.07
$42,665
and
93.52
Single
31,781,
14,889
14,691
8,192
8,017
1,914
1,915
1,802
8,096
7,987
7,21(
9,733
9,579
9,461
loans
:
—
credit
-
j
loans
payment
$41,247
32,983
8,134
modernization
Noninstalment
;
14,788
r_
goods
loans
!
$42,562
32,932
1
-
consumer
Personal
86.75
96.54
96.69
.
96.11
credit-.
consumer
Repairs
94.99
RE¬
credit
Instalment credit
»
MOODY'S BOND PRICES DAILY AVERAGES:
term
April 30:
Automobile
June 11
(primary pig. 99% j at
Straits tin (New York) at
ol
as
11
Total
FEDERAL
intermediate
and
une 11
at
THE
OF
SYSTEM—REVISED SERIES—Esti¬
short
une 11
—
(delivered) at
(East St. Louis)
Average
Military
11,958,000
Conservation
Aluminum
U.
101
302
13:,
33
/
nonresidential
" 82
-
379
and institutional
Administrative and service
134
,34
369
.
63
/___
Educational
Sewer
254
June 10
Export refinery at
at—
Lead (St. Louis) atZinc
-.
17
1,296
—,
——_
Water
Lead (New York)
tZlnc
-
,
PRICES:
at
refinery
—•—
Industrial
602,000
Electrolytic copper—
Domestic
construction
buildings ——;
Nonresidential buildings
&
June 12
(per gross ton)
(E. &
82
394
'.
:-_
497
27
-
103.30
102.80
97.16
-'une 17
99.84
99.68
99.52
96.07
Charge
accounts
3,694
3,528
June 17
96.38
95.92
95.62
94.71
Service
credit
2,538
2,509
2,351
88.27
87.99
87.18
86.78
June 17
92.20
92.06
91.48
91.91
June 17
98.09
97.94
97.78
95.16
—June 17
100.00
99.68
99.20
93.67
123.5
123.3
119.3
.
Aa'
—H—-J
———
—-——
——
A
.—
Railroad Group
Public Utilities Group..
Industrials
MOODY'S
U. 6.
Group
YIELD
BOND
103.13
.
,
CONSUMER
Month
All
DAILY AVERAGES:
PRICE
of
A
4.17
Cereals
3.55
3.58
3.93
Meats,
3.76
2.77
3.78
4.00
Dairy
4.03
4.09
Fruits
and
4.62
4.65
Other
foods
une 17
3.98
17
4.54
une
-
17
une
17
4.26
une
Baa
une
—
—
-
-
II
3.65
4.00
3.56
I
—
2.84
3.97
4.01
4.56
'
Railroad
Group
——
„
Public Utilities Group—.
Industrials Group-
17
3.87
p„>une 17
3.75
17
401.0
-
MOODY'S COMMODITY INDEX
.nine
(tons)——
4.28
3.89
4.16
398.7
400.9
7
304,529
264,648
285,090
7
248.617
247,209
264,699
une
7
77
83
86
404,015
348,600
383,220
ACCOUNT
June 13
109.79
109.82
109.91
Other
Total
sales
sales
1,608,130
1,623,210
1,522,200
May 24
349,040
332,890
359,290
302,960
,
———————————————————————\iiiv '}4
——
May 24
sales
Other sales
Total
7
—-
off the
415,170
491,120
474,940
271,780
37,200
67,800
49,700
14,700
jay 24
—
351,400
434,080
402,890
296,880
388,600
501,880
452,590
311,580
535,542
556,505
578,840
543,230
Jay 24
195,760
162,030
151,680
104.960
Jay 24
Total purchases
Short sales
591,156
659,370
648,942
510,680
May 24
786,916
821,400
800,622
615,640
May 24
sales
2,545,152
2,655,755
2,676,990
2,337,210
members—
-
lay 24
_
i
sales
582,000
562,720
560,670
422,620
Jav 24
2,185,966
2,396,880
2,384,872
2,035,070
jay 24
Other sales
2,767,966
2,959,600
2,945,542
2,457,690
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t
Number
Dollar
of
shares
value
—
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers'
short
Customers'
1,307,769
1,279,631
$46,619,209
$51,128,097
$54,737,326
$67,445,684
Dollar
value
1,101,334
1,184,497
27,661
18,847
8,674
1,043,636
1,062,722
1,082,487
$44,130,710
$44,958,526
$46,137,901
1,175,823
$59,018,009
May 24
May 24
361,250
343,960
290.380
353,590
May 24
361,250
May
,
Other sales
STOCK
SALES
24
May 24
ON THE
N.
Y.
378,790
3T3",960
439,990
29()i,380
510,660
3~53~590
430,160
sales
sales
WHOLESALE
LABOR
—
(1947-4®
NEW
=
SERIES
—
U.
S.
DEPT.
837,500
994,170
1,000,750
13,218,230
13,325,820
13,017,660
14,212,400
14,326,570
11,432,460
11,940,030
OF
10O):
June 10
—
vr
and
foodsl
119.5
117.5
96.2
98.6
90.9
112.6
113.0
112.8
June 10
SEED
Received
Stocks
114.9
115.0
114.4
96.5
June 10
125.1
125.2
125.4
125.3
106.3
886,000 barrels of foreign crude runs.
§Based on new annual capacity of 140,742,570 tons
ow,-w,.wu
——
1957 basis of 133,459,150 tons. tNumber of orders not reported since introduction of
fPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
°fKinr *' 1958, as gainst Jan- 1.
...
AND
176.8
125.5
128,0
142.3
136.9
128.5
128.3
123.3
117.0
OF
•_
.
COTTON
SEED
117.0
111.8
127.2
.
127.2
124.2
PROD¬
COMMERCE—Month
Crude
mills
at
tl
of
(tons)
(tons)
(tons)
(pounds)
Produced
Shipped
Refined
30__
35,645
*327,146
278,391
515,526
*758,322
532,744
87,442,000
*124,862,000
116,696 ,000
—
April 30
-
(pounds)
87,224,000
110,930,000
99,742 ,000
118,617,000
120,379,000
96,151 ,000
192,368,000
188,914,000
277,876, 000
108,425,000
109,427,000
96,364,000
92,916,000
90,323 000
100,139, 000
189,776
117,320
*198,037
*149,743
125,581
(pounds)
*176,437
Oil—
Stbcks
(pounds)
April
3
Produced
(pounds)
Consumption (pounds)
and
-
Meal—
(tons)
April
30
(tons)
;
.
(tons)
Hulls-
279,436
135,735
120,255
•
Stocks
(tons)
Shipped
Jjinters
April
30
60,739
(tons)
*80,032
*73,900
•
55,265
(running bales)—
April 30
:
•
*
•
f
75.372
*125,564
131,038
(tons)
Stocks
.
60,474
.61,363
April
*95,820
84,940
*76,575
88,480
474
540
658
(a)
59
(a:
(a)
105
(a)
4,514
(1,000-lb.
*363,557
69,358
66,645
Fiber
216,921
*4,363
2,738
366,270
-
Produced
Hull
10,132
11,855
254,651
;
_
April
Oil-
Stocks
bales) —
30
|
~
Produced
Shipped
Motes, Grabbots, etc.
(1,000 pounds)—
;
746
"
Not shown to
avoid
disclosure
of
figures for
595
individual
*1,004
•
'
605
835
983
companies.
FACTORY EARNINGS AND HOURS—WEEKLY
AVERAGE
ESTIMATE—U.
LABOR—Month of April:
earnings—
manufacturing
S.
DEFT.
OF
u»oW
$81.59
$80.81
*$81.45
86.91
*87.75
88.29
72.94
73.53
72.74
38.3
Durable goods
Nondurable goods
*38.6
38.8
*39.0
40.5
37.6
38.1
38.9
$2.11
*$2.11
$2.05
Hours—
All
manufacturing
Durable
goods
Nondurable
^Includes
Monthly Investment Plan.
one-half cent a pound.
119.1
95.4
June 10
Meats
'Revised figure.
118.9
_jUne 10
foods
commodities other than farm
135.5 S(
185.9
Cotton Seed—
All
commodities
Farm products
All
138.7
Weekly
All
oi
:iioi
92.
507,570
12,180,160
Commodity Group—
Processed
98.7
91.9
April:
(a)
May 24
PRICES,
-
127
142.7/
1
Shipped
-.May 24
May 24
sales
108.11
98.8
129.5
127.6
-
—
Produced
ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
round-lot sales—
Other
—-.1
Stocks April 30
STOCK
EXCHANGE AND
Short
108.9.
-
'91.9 '
-
—
—
UCTS—DEPT.
Stocks
Total
Total
106:5
98.2
Shipped
-
Round-lot purchases iff dealers—
Number of shares
ROUND-LOT
1,090,383
14,088
May 24
-
TOTAL
1,057,724
May 24
Round-lot sales by dealers—
Number of shares—Total sales
Short sales i
126.4
106.6
138.3
care
Produced
May 24
105.1
130,7.
109.1
care
Shipped
1,206,601
sales.;
138.1
103.9
186.1'
Produced
1,047,318
other sales
136.7
,
129.8
•
Reading and recreation
Other goods and services
Stocks
May 24
——
112.4
130.9
—
—1—
Personal
Cake
May 24
—
125,:
134:5
115.9
104.0
:
girls'
127.5
137.1
134.2:;
-T
—_—
.
Private
Crushed
May 24
-
110.5
1,530,470
floor—
round-lot transactions for account of
Total
1,227,510
jay 24
-
Other sales
Total
Total
1,333,040
1,692,330
May 24
-
sales
sales
1,303,430
1,636,320
jay 24
-
;
-
boys'-
and
apparel "J
Other
COTTON
-
,
Other transactions initiated
Total purchases
Short
1,243,410
1,592,450
111.0
127.7
4
<,
—_
operation
and
Medical
1,594,440
Other transactions initiated on the floor—
Total purchases
i
Short
fuel oil—
and
A.
118.7
113.6
137.3
2
Public
May 24
,
114.1
130.7
116.0
—
—Z
Transportation
...
1024a
106.7
fuels
Women's
110.33
114.4
112.4
-
._
Footwear
,,
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases—
Short sales
f
MEM¬
OF
—
—
Apparel
Men's
455,338
112.1
130.1
136.6
home
at
electricity
Household,
86
7
113.(5
119.6
132.7
112.5
vegetables
———
Solid
263,469
120.6
_P(
tic
115.9
•„1_
products
Gas and
323,485
3,73.7
132.7
products
Rent
T
426.1
—.June
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949 AVERAGE s=» 109
—
FOR
bakery
poultry and fish
Housing
4.06
3.80
une
—
TRANSACTIONS
4.31
3.88
3.77
une
Percentage of activity.
Unfilled orders (tons) at end of period-
ROUND-LOT
*'■
3,374
.
120.5
and
Ilousefurnishings
NATIONAL FAPERBOARD ASSOCIATION:
Orders received (tons).
Production
4.27
.
home
at
*
121.6
,
2.86
3.96
Food
3,542
,
1947-18==100-
—
'
2.94
June 17
-
3,501
April:
Tune 17
—IIII
INDEX
:
items
Food
Government Bonds
Average corporate
Aa
?C
148
,
.
(per gross ton)_.
Scrap steel
388,000
6,250,000
telegraph
—
Other
(per lb.)
METAL PRICES
7,140,000
and
public- utilities
private
18
127
478.
29
—
24
15
147
—
Hospital
June
—
—
COMPOSITE
Finished
7
June 14
(COMMERCIAL AND
AGE
=
18
—
_
40
41
28
505
-
08
'
50
•
32
_
_
191
61
42
.
-
139
196
-
51
—
-
Residential
INSTITUTE:
(in 000 kwh.)
BRAD STREET,
7,830,000
other
Public
INDEX—FEDERAL RESERVE
SALES
AVERAGE
SY6TEM—-1947-49
EDISON ELECTRIC
.—June
7
—
147
100
L
'
209
utilities
Telephone
All
COAL OUTPUT
(U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)
recreational
Railroad
$481,351,000
buildings
288
163
120
Miscellaneous
Public
37
308
263
165
garages——
institutional
and
and
Farm construction
$505,535,000
200,577,000
and
nonresidential
285
warehouses
and
restaurants,
Social
ENGINEERING
June 12
-
buildings
Stores,
Hospital
535,204
379
733
218
8,341,000
Other
1,438
1,020
48
193,298,000
Office
$4,127
2,882
677
Industrial
RAILROADS:
municipal-.
—
6,651,000
construction
State
buildings
51
698
Nonhousekeeping
201,235,000
construction^
Private
295
1
6,857,000
construction
S.
945
352
1
NEWS-RECORD:
Total
1,000
-
193,355,000
.
—
1,288
6,775,000
—
CONSTRUCTION
ENGINEERING
2,583
1,403
_
193,290,000
(number of cars)
.June
freight received from connections (no. of cars)—June
Revenue
$3,703
2,770
__
'
Nonresidential
Ago
$4,066
■+.
(nonfarm)
units
dwelling
Year
Month
June
June
at
AMERICAN
Previous
6
Revenhe freight loaded
CIVIL
New
of that date;-
millions):
construction
buildings
tin
either for tb
are
are as
-June
at
at
(bbls.)
(in
May
is
OF
construction
new
transit, in pipe lines—
(bbls.)
DEPT.
S.
8,080,000
25,416,000
June
gasoline
(bbls.)
oil
6,241,635
-June
at
fuel oil
fuel
Residual
6,255,935
117,690,000
27,263,000
,une
June
unfinished
and
6,249,685
7,338,015
June
—,
(bbls.)
(bbls.)
Stocks at refineries, bulk terminals, in
Total
of
Month
—
Residential
_
:
fuel oil output
fuel oil output
Distillate
CONSTRUCTION—U.
BUILDING
2,181,000
June
to stills—daily
runs
Gasoline
1,523,000
Thursday, June 19,
Month
85.2
Private
gallons each)
42
*1,723,000
§1,737,000
of quotations,
cases
Year
ol
(bbls.
average
.
Latest
LABOR
AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily
in
or,
Ago
Ago
*04.0
.
production and other figures for
cover
that date,
on
.
Dates shown in first column
month available.
month ended
Weex
§64.4
or
Equivalent to—
Steel
Chronicle
The Commercial and Financial
(2786)
goods
w
_
•
39.8
Hourly
All
earnings—
manufacturing
__
Durable goods
2.24
*2.25
2.1
Nondurable
1.94
*1.93
1.87
goods
19
Number 5752 .'.
18?
olume
The Commercial and Financial Chronicle
.
(2787)
73
It
LETTER TO THE EDITOR:
,
,
-
The big S. O. California issue is
.
The debentures m&y not be re¬
tap for Wednesday which looks
funded prior to June 1, 1963 at a
lower _cost of money to the com¬
on
like
Maine Reader
Questions
t.
'
.
,
,
'
•
.
them
a
as
100%
Tuesday and Wilson & Co., Inc.,
is due to market $16 million of
Mr. Spitz \
'
'
capital, inflated dollar values, failure to amortize fiscal
indebtedness, and lack of sound monetary principles.'
Editor, Commercial and Financial and beyond the ability to accumu^ Chronicle:
late sufficient capital in an in^
dividual lifetime to compete with
corporate facets of controllingmarkets by dominating the flowaa§e \ °f goods by allocations in
time of
blows
again!
dateline May 29, 1958),.
>.
,
He
is . merely
following the
Slichter
line that planned
ECeynes
econ-.
scarcity and not produc¬
must be
omy
ing to a point of scarcity in de¬
pressive
times.
Local
capital
fix
to
made
prices through
monopoly of
markets, by
corporations,
parities,
structures
when the
sub¬
mands
gives
wherein
is
and
little
cor¬
some
desk
ask
and
handout.
that
wonder
many
marketing and subscribed to
Keynes, the planned economist
monetary and economic concepts who could give answer to everys
the very basis of its failure! thing in theory and never was able
eternal
is
remedy
to show how deficit governmental
fixing,
The
only
seeming
explanation
paradox
is
for
found in the conviction
be
underwriters
that
this
evidently
the
to
of the
future
be¬
havior of the money market must
be
inevitably in the
direction
of
lower rates.
Certainly institutional investors
must step up to take new
corporate obligations if these are
to be sold, show no haste about
going through with their end of
who
things, these days.
Stocks
dealers' shelves have
on
been expanding for several weeks
were
estimated
as
million just prior to
the offering of the recent Niagara
They
now.
around
$75
Mohawk
week's
Power
issue
and
cur¬
which
issues
remain
viously
are
further
of
rates
money
along lines which the Administra¬
tion is
reportedly anxious to
realized.
Recent
Washington
see
dis¬
ment, for beyond owing it to our-
the Japanese had the full sclves< we,a"' ?ie sometime
so
iilAmerican picture it would show: why worry? It is an answer that
■ has made us a generation of selj.7
'
'
L.o
(1) Monetary inflation due to
undisciplined social and eco>.
soft
monetary
Keynes concepts nomic individuals and no one has
that constantly inflates monetary to go any farther than juvenile
\A
.....
_
i.l
i.4
value, unlike hard monetary content dollars, and adds further to
the4 dilemma of coordinating the
of
value
one
of
^
goods
dissimilar
June
on
another.^ There is no criterion
value with
monetary theories.
Keynes
monetary
soft
,
(2) The planned economy or with parities, subsidies and such,
Keynes concept believes in a rigid stockpiling
metals
and
other
price structure, and hence, no ad-. products for price fixing purjustment in either recession or poses, the minorities in labor, the
is
there
Yet
.
19
offered
The
only difference is that the
knucklehead who overbuys in the
installment category and not out
of
savings is hounded to pay
govern¬
with a national debt of almost $300 billion
that NOBODY ever expects to be
repaid. But the $8 or $9 billion
of
servicing will go on and on
oven beyond our own generation
of foolish men who prant, "Why
Pay
it—we
way, now
owe
Kr. Slichter has
the
it
to
ourselves."
never
answered
why it should not
be amortized
fiscally and in what
type or in what way this ecoquestion
nomic
atrocity
Keynes conoepts will be met and the impact
upon
the
down
of
Watered
Of
the
Pert
so
cmm-7
Counsellor at Law
Fortune's Rocks
a
like
of
amount
curred for
bank
loans
in¬
1958.
United
dividendTnotices
UNITED SHOE MACHINERY
CITY INVESTING COMPANY
25
Broad
Street,
New
York
The Board of Directors of
June
13,
1958
centos
per
share
Stock
of
the
declared
on
N.
4,
Mich.
is a watering
monetary value and a
GNP
that
the
ex-
voluminously quotes.
Pylkas and William W. Ten
are
connected
now
(4) An
mat goes
time,
with
0
>
Eyck
Merrill
.
...
Lynch, Pierce, Fenner & Smith,
Street,
205 West Congress
observers
are
casting
business
dividend
a
of
20
on
payable August
July 25,
(Special to The Financial
ST. LOUIS,
economic
feudalism
is
in these United States
beyond the lifetime, in
of any citizen or
individual,
Mo.
—
Chronicle)
Leo J. Con-
the staff of A. G.
Edwards & Sons,
409 North-Eighth
Street, members of the
and Midwest Stock
New York
Exchanges.
has declared
15,
A.
Dividend
Directors
dividend of
a
37 Yi cents per share on the
Preferred stock
and 62 Yi
1958.
JOHN
of
Board
The
the outstanding Common
company,
KENNEDY,
Vice-President and
cents
Secretary
per
share
stock,
mon
the Com¬
on
payable
both
1,
1958
of
stock¬
July 3,
record
to
1958.
ARTHUR W. MOFFATT
June 11, 1958
Treasurer
AIRCRAFT RADIO
a
CANADIAN PACIFIC
CORPORATION
RAILWAY COMPANY]
Boonton
of the welling-up of un¬
issues the last month
New
Jersey
Dividend Notice
new
Dividend No.
101
Presumably there is no serious
pinch
on
investment
bankers'
ability to participate in bidding
and reoffering syndicates up to
this time. And certainly there has
curities "other than
On
June
the
1958,
17,
Direc¬
tors of Aircraft Radio Corpora¬
tion
declared
a
dividend
of
Price Ideas Alike
is
There
no
At
a
meeting of the Board ot
dividend of
Directors held today a
seventy-five cents per share on
Ordinary Capital Stock was
declared in respect of the year
the
twenty cents (20c) per share on
the
common
pany,
stock of the Com¬
payable
July
8,
1958,
to stockholders of record at the
1958, payable in Canadian funds
August 1, 1958, to shareholders
of record at 3.30 p.m. on June 20,
on
1958.
close of business June 25, 1958.
By order of the Board.
HERBERT M. KINGSLAND,
Assistant
T. F.
Turner,
Secretary.
Secretary
Montreal, June 9,
1958.'
governments."
escaping
#
the
fact
generally are pretty
much of the same mind about the
outlook.
This was evident again
that bankers
closeness
offerings.
bidding for new
case
of Delaware Power
PACIFIC
POWER
& LIGHT COMPANY
&
i.
*
Co. bonds comes to mind.
Here the successful group took the
Light
on a
coupon
So
$3.29
bid of 99.739 for a
the top
per
Dividend Notice
bid was only about
$1,000 better than that
while the low
turned out to be only
$1,000 under the winner.
of the next group,
of five bids
$4.59 per
Swelled by the $150
million de¬
by Standard
Oil Co. of California,, next week's
new corporate debt offering total
foots
up
$280 million.
And, in
addition, Pacific Gas & Electric
is slated to offer 853,781
addi¬
tional common shares on "rights."
bentures
S
3%%
rate.
Big Week Ahead
Joins A. G. Edwards
aty has joined
being built
Robert H.
212lh Consecutive Quarterly
1958, to stockholders of record at the close
or so.
issue
Chronicle)
—
CORPORATION
Y.
this company on
.
(Special to The financial
DETROIT,
Harvey
affiliated with
now
Underwriting Capital
-
Market
The
Two With Merrill Lvnch
WORCESTER, Mass,
A. Jacobson is
construction; S. Romanoff &
Co., 45 Chamber¬
and the reminder, together with
lain Parkway.
- j
funds from internal sources, will
be used for the acquisition and
DIVIDEND NOTICES
construction of properties during
pressing for invest¬
opportunities and that any
further expansion in the lending
base of the country's banks would
tend to expand such pressure.
of
June 2, 1958
/
previous
holders
during the week in the
Biddeford, Maine
Wyom¬
......
(Special to The Financial Chronicle)
that money is
Any country that
security
customers
Joins S. Romanoff
proceeds from the sale
debentures, $14,000,000 will
be used to pay, without premium,
indication
every
of
economy
down
sense
subsidizes weakness will not continue strong.
the
KiLtiAitu bFiiz,
along ' its
blithely
goes
inflationary
the
while
back,
money
ment
mand markets will come common
industrial
an
v
borrowings.
governmental
in
For the 12 months ended March
-
..
fields
-•
ment
sold
and
ing.
or so.
inflation, but further inflation of strong and urgent minorities in
the dollar, for something has to the
capital or industrial fields
move, either the price structure solicitous of their own well-be- been no disposition on the part
or
the
dollar-age
value.
Thus jng alld shutting their eyes to the of those sponsoring sluggish offer¬
GNP
figures that -Slichter' and need of sound monetary princi- ings to cut them loose.
population growth are a misrep- pies founded in hard monetary
Evidently the situation remains
resentation of true production or content and real monetary values one in which the underwriter can
monetary value.
that can coordinate diverse goods afford to "bank" substantial por¬
tions of his deals while waiting
The
failure
of
planned and the values thereof I in -free
economy to feed on anything but
supply and demand open markets, for the market to catch up. Deal¬
ers now have about $1.1 billion in
more and more, inflation is amply
ara their °^1\worse enemies for
loans from banks for carrying se¬
demonstrated
in
personal
and °nty through free supply and de„
in
gas
August
quence
discordination ofvalues
price
monetary
purchases
in Utah and southwestern
of the
weather-eye in the direction of
underwriters' capital
in conse¬
and
of
Mountain Fuel Supply produces
and
another
"
'
■
(5)
structure
■*•••
1%
yield
*
#
„
.
will
paper
one-half of
delinquency to see that lack of
discipline in monetary and ecomatters
is a prelude to
social disintegration.
price
or
1983, at par.
is that rates for top-
such circles
nomic
with
redemption
on
31, 1958 operating revenues of the
company amounted to $25,818,000
and net income to $3,763,000, com¬
issue of $16,000,000 Mountain Fuel pared with $25,160,000 and $3,«
Supply Co. 4% debentures, due 755,000, respectively, in 1957.
of
grade
inflation,
redeemed
The First Boston Corp. and as¬
patches indicated that the hope in
ment wise and attendant
ing fund
100%.
mercial
Mountain Fuel Debs.
disposed to anticipate
easing
Group
Offers $16 Million
un¬
ings concepts, over
1.1
First Boston
sociates
□egging interest rates .up and
:lown making a mockery of sav-
financing was ever* to be paid.
His answer was that there was
buying install- no reason to think upon repay¬
of¬
about
Underwriting bankers quite ob¬
will continue to fail for the
liscordination it has brought to
smaller
those
Colorado, south¬
building ferings are also set for that day.
western Wyoming and northeast¬
up inventory these days judging
Thursday will bring public of¬
ern Utah, and transports gas from
by their persistent bidding for fering of $37.5 million common
ahd pricing of new issues at levels stock of the Lazard Fund, Inc., a those fields through southwestern
Wyoming into Utah. It also buys
which seemingly do not hold any new trust undertaking.
gas from two natural gas pipeline
immediate attraction for the in¬
companies.
The
company
dis¬
vestor.
tributes gas to residential, com¬
reluctant
not
are
free and open supply and demand
that planned econ-
Several
for
northwestern
thinkers have fore¬
their desire and interest in
gone
And
debentures.
sold, are calculated as somewhere
close to the $200 million mark.
omy
The
Apparently investment bankers
rently, including portions of this
capitalistic
Richard Spitz
have no doubt
of
front
economic
an
It
do c trines
failed!
in
president's
for
has
social
balance without having
porate
of
Keynes
the
stand
to
in¬
an
economic balance that
community
a
economic
de¬
vestigation
of local development and
individual
goods and leg¬
islative edict,
so
snow,
expense
ment orders of
then
ground is covered with
the national cor¬
porate structure grows more
dominant and more strong, at the
deep
sidies, govern¬
and
"birds"
the
for
are
able at
after June 1, 1981; and at a sink¬
vidua!
Thar'
Otherwise, they are redeem¬
regular redemption prices
ranging from
104%
for
those
redeemed prior to June 1, 1959, to
pany.
Pacific Power & Light has $20
million
of bonds scheduled for
f
criticizes, for example, growth of dominant national corporate
structures and hindrances to accumulation of sufficient indi1
of
up
i
springboard to opine about 1
.economic practices said to be running our economy.
debentures
Steel Community slated to sell $40
of its bonds.
Economy—Trends, Problems and Prospects" (Chronicle, May
uses
Corp.,
recent
million
*
29, 1958, p. 3), Maine correspondent takes exception to views
expressed and
Gas
for
$40
million
•
j
the "American
on
day
with
for bids and the European Coal &
'
■
■
Referring to Dr. Sumner H. Slichter's article
banner
what
United
Dr. Slichter's Economic Views
•
the
weeks
projected
Quarterly dividends of $1.25 per share on the 5%
preferred stock, $1.13 per share on the 4.52% serial
preferred stock, $1.54 per share on the 6.16% serial
preferred stock, $1.41 per share on the 5.64% serial
preferred stock, and 40 cents per share on the
common
stock of Pacific Power & Light Company
have been declared for payment July 10, 1958, to
stockholders of record at the close of business
June 30, 1958.
H. W. Millay, Secretary
PORTLAND,
OREGON
June 6,1958
*
(2788)
The Commercial and Financial Chronicle
/
.,
Thursday,: June
.
American
BUSINESS BUZZ
•
.
kets
•
of
the
necticut
Behind-the-Scene Interpretations
Capital
You
,
'
WASHINGTON, D. C.
World
loan
for
Bank
made
recently
tion
a
them
equivalent to $28 million
railways of Nigeria. It
.
(paper
Comment Ma
Containing articles 0
Employment, Inflation and th
made to the Federation of
tem.
an overseas
:
....5.
.
*
...
military
cause
e
d
activity
Africa.
Kingdom, and
both
hundred
miles
new
success
The frontier of French
the
The significance of
is
loan
that
it
is the
fore¬
the World
and the United States to
Bank
give
tropical Africa
ance
that
needed in economic devel¬
;
1' With
"In
the
the
on
-
tages
<
its
few
exceptions there
is no problem of over-popula¬
tion and scarcity, of labor
through much of West and Cen¬
a
fully realized.
are
are
;
in
believed
to
high
Africa
West
small
be
in
toward
still
undiscovered
and
unex¬
New diamond fields and
viously unknow
ore,
nonferrous
many
metals,
tant
in the
nuclear
pre¬
field
rarer
those
of
are
impor-
countries
population
is
significant
extent
engaged
"
advanced market
the
of
economy
Na¬
re¬
(i.
to
the
in
e.
any
more
money)
region.
Thus far the economic devel¬
in tropical
opment
Africa
has
been
overwhelmingly the
sponsibility of Europeans,
re¬
In¬
dians and Levantines, who have'
supplied
*
not only the capital
but also the initiative, manage-
^rial- direction, and the technolo¬
gical skills required,
-
r
House
*
to
dis¬
of
Africa
the
the
paramount
rea¬
African
progress
being made toward inde¬
pendence
self-government.
or
Ethiopia and Liberia have al¬
ways been free. In recent years
the
Sudan
tained
and
Ghana have
independence:
at¬
some
Nigeria,
great
potentialities in Africa because
of
the
rich
the
resources
At
areas.
the
in
most
time
same
President's
represeqtfdives
"warned that Russia has already
established
a
firm
economic
foothold in Africa.
,
,
.
Tropical Africa has today the
largest reserve of undeveloped
human
«
and
natural
resources
remaining 011 this planet. The
tropical region is described as
howe
ways. New hotels are
and North of the Union of South
Africa.
Within this vast
about
135
region
million
people
live mainly with their
traditional tribal societies, fol¬
who still
J
being
United
process of African
there
are
portunities
firms.
ness
the
Check
now
American
in
op¬
Air
equal
or
a
pros¬
D.
long road to political develop¬
and may or may not coincide with
the f Chronicle's" own
views.']
vestment
011
scale.
in
a
Some of the
the
activities
large corpo¬
Rhodesias,
in
the
and
HIGH
small
POINT, N.
P.
Brown
J.
The
Netherlands.,
(paper).
sonnel in Weschester County
The
Albert,
British
Plains, N. Y.
(paper).
Government Publications,
April 1958—British Information
Services, 45 Rockefeller Plaza,
New York
20, N. Y. (paper),
45
C.— Frances
Sturgis
joined the staff of
May & Co., Security
National Bank Building..
cents per year.
Congressional
portation
torial
—
on
comment—Association
French
n
stC^S \
Carl Marks
in
FOREIGN
Friendly to U. S. Capital
the
advisers
TEL: HANOVER 2-0050
of
by
American
investors
is
a
sound
limary report — U. S. Depar
ment of Labor, Bureau of Labo
Statistics, 341 Ninth Aveniu
New York
1957
Loss
1, N. Y.,
and
on reques
New York
Expense
Ratios
State Insurance De
Oil in Alaska
Report prepere
by Erie Natural Gas Co., Inc.Robert D. Eckhouse & Associ
—
ates, 1125 Madison Avenue, Ne
York 28, N. Y., on request.
On the
Guide
Job Trading—A Practic
Small Business Bullc
—
tin No. 3—New York State Dc
partment
State
of
Commerce,
Street, Albany
on
7,
11
N. ^
request.
of
TRADING MARKETS
Botany Mills
Campbell Co. Com.
Fashion Park
&
Co. Inc.
•
NEW YORK 5, N. Y.
Morgan Engineering
National Co.
Flagg Utica
'
TELETYPE NY 1-971
LERNER i CO.
Investment
the
White House express the belief
that
minority investments
York
City
Occupations
Wage Survey, April 1958—Pre
Indian Head Mills
SECURITIES SPECIALISTS
20 BROAD STREET
of
New
United States Envelope
in
petroleum dis¬
tribution, plus air and sea trans¬
portation facilities.
•
Some
tor—Harper & Brothers, 49 Ea
33rd Street, New York 16, N. 5
(cloth), $6.50.
A, S.
American investment is largely
concentrated in mining, planta¬
Liberia, and
,
''v
American Cement
private
activities
for Man
7vy^Sr-?t,vTT-v?r'.'?».:H
minority interests without
managerial responsibilities.
related
Planning
Trans¬
Congo,
as
and
(paper
agement—David W. Ewing, Edi
(paper),
Action
However, in most cases
the investments have been made
tion,
Range
C.
Excerpts from edi¬
Afica.
Actively-managed
—
Bernard "Berko-
and Takuya Maruyama—
Country Trust Company,
White
-
has
Long
D.
1
.
partment, Albany, N. Y., $1.
Availability of White Collar Per¬
With J. Sturgis May
tropical Africa has
comparatively
(paper), 75 cents.
Amsterdam,
pretation from the nation's Capital
in¬
Nation's
6,
request.
—
witz
the
been
C.
,Floyd
done to start the Africans
American
Refrigera¬
our
Amsterdam Bank—Quarterly Re¬
view
Amsterdmasche Bank,
[This column is intended to re¬
flect the Ckbehind the scene" inter¬
private
and
to
Institute, 1346 Connecticut
Avenue, N. W., Washington 6,
countries
operating there.
Only in Portuguese and Spanish
Africa
has
nothing yet been
on
East
the
outstanding Euro¬
American
Conditioning
Transpoi
America; 100
Avenue,
N.
"W
of
Washington
on
16, N. Y.
tion
long
surpass
12
Investment for Na
Security—Air
Connecticut
Bank Man¬
Health, Productivity, Defense—
Air-Conditioning and Refrigera¬
secure
as
—
Association,
tion—Essential
busi¬
business
Airliner:
Association
(paper), 50 cents.
Washington
and
and
doubt
no
as
pean
in the
CUock
and
36th Street, New York
Informed people in
government
they
Jet
Mechanized
for
Handling
Bankers
States
tremendous
for
records of the
61 Broadway, New Yor
6, N. Y. (cloth), $25.
:•
agement Commission, American
development.
There appears to be
that
will
taken
to
grant powers to
African political institutions.
con¬
Government need to be comple¬
mented
by
participation
of
American business firms
Numbering
Imprinting
places. They feel that the
of the
—
tional
Account
structed, and the food is good in
reasonably
future in tropical Africa
In French
have been
who
the airports in Africa
say
follow; and Sierra Leone,
Ugande, Tanganyika and Kenya
so.
Arthur
Wiesenberger Arthur-; Wiesenberger & Com
tour of Africa this
perous
' steps
tion
Bookshelf
Eisen-
modern and have long run¬
are
that part of south of the Sahara
are
a
to
Africa
Investmeint Companies, 1958 Edi
Man's
pany,
the
Administration,
r
have made
year,
for
American
turing
the
Spokesmen
(cloth), $4.
Research, University of Michi
gan, Ann Arbor, Mich., $4.
,
encourage its flow.
likely to have
ultimately do
—
Press, Inc., 4
Street, Chicago
Banking—M.erwin 1
Waterman—Bureau of Busines
Business
friendly to private Ameri¬
Liberia, in particu¬
lar, has taken positive steps to
are
far
—
;
capital.
can
that
enthusiastic
about
sound
firms
West
would
pants!"
Investment
resentment
feel
rations in this country have in¬
vested in mining and manufac¬
and
ago
the
Local mangement is also
and it does
not arouse
Somalia and the Central African
Federation are scheduled soon
they re¬
turned to Washington extremely
three months
thing.
programs
for
accelerating
development
is
the
So
representatives
in
South Clinton
many
ment.
Eisenhower
President
patched
Perhaps
7
Introduction to Securities liegula
tion
Allen D. Choka
Twen
tieth
Century
111.
under
absence
Rapid De-Colonization
Russia There Now
White
still
the
development,
traditional
African society would be at a
serious disadvantage in resist¬
ing either, much less both, of
now
The
ports that the study shows that
only about 10% of the African
*•
In
adequate economic and polit¬
electronics,
energy.
tional Planning Commission
,
•
are
son
which
increasingly
and
*
and
Egyptoday both
competitors
and
collaborators
in tropical Africa,- particularly
tian nationalism
deposits of iron
and
copper,
becoming
n
good boot
a
I've
psychoanalysis
been
communism
fellow
and
these two aggressive forces."
plored.
-
that
ical
com-
pared with the mineral wealth
intensive
concluded the most effective treatment for him
be
advan¬
directed
of
of
reserves
ore
months of
many
by trouble makers.
So far, the independent African
governments
have
generally
in
even
New York
.
"After
7;
certain
and
cents.
un¬
is
The
iron
be
Economic
Institute, 150 East 42nd Stree
17, N. X (paper), 5
&
shows
not
Moslems
Accountin
Steel
Industry 1953
1957—American Iron and Stee
bordering
Egyptian na¬
European rule.
abundant
study
communism
over
less1 developed than agriculture.
ferade
Iron
Soviet
-
The metal
resources
has
to
Foreign Trade Trends: America
countries
appeal
fellow
potentialities of
commercial agriculture have not
and' mineral
cam¬
marked
no
-
Sahara,
Guide
Policy for til
Century — Specia
Studies Project,
Rockefellc
Brothers Fund,
Inc., 22 Wes
55th Street, New
York, N. i
Africans," said the organization.
tral Africa. The
been
its
should
Re
Twentieth
Nevertheless, the
that
Russia
tionalism
Virgin Resources
aid
and
derestimated.
the assist¬
opment.
Foreign
Planning
declares
others by
of
runner
commu¬
Association,
which is devoted to planning by
Americans in agriculture, busi¬
ness, labor and the professions,
Equato¬
rial Africa.
trade
far.
so
National
lines to
of
their
Business
—Harry S. Wittner—Prentice
Hall, Inc., 70 Fifth Avenue, Ne^
York 11, N. Y.
(cloth), $7.50.
Egyptian
paign, they have had
several
building
and
Executive's
nationalism is
involved in the development of
tropical Africa. While the Rus¬
sians have recently intensified
the
0
Employm'en
pf
University of Illinoi
Urbana, 111. (paper), on reques
.»
In addition to Soviet
nism,
c
search,
be¬
necessary
Egyptian Nationalism
Nigerian Railway Corporation is
carrying out a modernization
■program
etc.—Bureau
of communist and national¬
is
nations.
the tremendous up¬
The loan is guaranteed by the
i t
$22 million a
association
main¬
,'The
of
the Rela
Unemployment; Impact
on the
Stability
Manufacturing
ist pressures on the new African
country of the continent.
n
and
of
that this
on
Automation
.«■
four times to
or
Market
European Econ
omies; Technological
Chang
be
year.
Nigeria, with a population of 34
million, is the most populous
*
should
Prosperity;-'Effect
Common
tive Growth of
non-
tains
flow
!
of news out of Washington, it
'has
considerable
significance
;TJ
level
present
While the loan received only
surge
of develppment
that is taking place in
assistance
0
Eco
nomic
increased three
Youtine notice in the heavy
because of
logical Testing;
Relationship
Population
Changes to
type of liv¬
United States Government-
"
*
.
subsistence
a
Income; Exeoi,
Personality and Psycho
tive
yield
The National Planning Asso¬
ciation, a non-profit, non-politi¬
cal
organization,
insists
that
,
territory of
the United Kingdom, now, ap¬
proaching full independence, to
lielp finance a five-year pro¬
gram to improve the rail sys¬
Nigeria,
which
—
Distribution of
ing standard.
the
was
techniques
Co
Developme
Current Economic
lowing simple, age-old produc¬
The
—
—
Mi
Commission, State Office Buil
ing, Hartford 15, Conn.
1958
r
ln
.
Northeast
State
19
Washin
ton, D. C. (paper).
Connecticut: The Key to
the
on
from the Nation's
Railroads,
19
Securities
10 Post Office Square,
tr.z
Telephone
qUbbard 2-1990
Boston 9, Mass
Teletyp
BS fiP
@FedFRASER