Full text of Commercial and Financial Chronicle : June 21, 1956, Vol. 183, No. 5544

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ESTABLISHED JS39

ONrvERsm
MICHIGAN!

OF

JUN 22 1956

Reg. U. S. Pat. Office

Volume 183

New York 7,

Number 5544

EDITORIAL

r-

Ms We See It.

not

interest

itself

much

in

the

facts,

Undersecretary of the Treasury

That

or

we

Behind the clouds of war, both hot and
Because

this

ernment
or

V.

aware that your association represents the
strongest chemical industry in the world
very cordial reception you have given me

is

intervention

the

appreciated.

more

stories

about

You

sometimes

one

Germany's

American

the

invasion of

chemical

market—

well, the parable of the kitten and
the elephant takes care of that. The
story
goes
that the two animals
found

shelter

under

the

same

roof

—whereupon the elephant turned to
the

kind

one

the

hears

It led to

of

all

know

kitten

said:

and

What

are

you

doing here? Don't you see there isn't
enough for Jooth of us?

another.

According to that theory, the chal¬
lenge of the "frontier" was gone and
W.

R.

But

room

industry and

past

few

events

years

have

occurred

Continued

on

which

ISSUE—Candid
Club

of

New

photos

Jersey

taken at the Annual

appear

pages

on

♦An

Menne

address

of situa¬

for all of

Meanwhile,

us

in this wide world.

your

on

page

36

by Dr. Menne before the Annual Conference ef the
Chemists' Association, White Sulphur Springs, June

Manufacturing
8, 1956.

Spring

25, 26, 27

that kind

sure

Continued

address by Mr. Burgess before the Graduate School of Bank¬
American Bankers Association, Rutgers University, June 15,

1956.

THIS

A.

30

page

♦An

Bond

am

country has readied
the highest peak of production and
standard of living in the history of mankind. And your
chemical industry is as vital to the entire world as it is
W.

Dr.

the automobile industry — could
no longer be counted on for stimulus.
Population growth
was leveling off and was facing an eventual decline.
the

I

tion doesn't hold here. I think there's

two of the greatest industries which
had
developed the country — the

Burgess

railroad

36

the

i

room

In

PICTURES IN

DEALERS

well

am

theory, which was to the effect that
this country had stopped spontane¬
ous, vigorous, upward growth and
could only make progress by Gov¬

ing,

on page

I

largest and
today. The

the belief in the "mature economy"

to, say, ten

Continued

German re-unification.

change has come on us without our quite realiz¬
ing it. For years American economic

to think in defeatist terms.

should have ten million man-hours de¬

'

cold, a tremen¬
has taken place in America..

have been focusing on military strength,

we

thinking, when not concerned with
wars
and
armaments,
has
been
colored by the depression of the30's.,
That depression was so far-reaching
and so damaging that it led people

production of that steel. If the output
million tons, we should have
productivity rate of one ton of steel per man-hour.
For the most part, official productivity figures

/

refuting fears of German chemical competition, Dr. j
(1) U. S. chemical sales to Germany :
eclipse by far sales here—-which amount to only 0.2%
of U. S. output; (2) the U. S. dominates world chemical
market; (3) labor costs are about the same; and((4)
economic deallocation caused by territorial dismemberment is responsible for changed German chemical situa¬
tion,' allows U.S.S.R. political dumping of East and i
Central German output, and requires, more so than
ever, exports in order to imports Endorses European
integration programs, praises Marshall Plan, and urges

.

voted to the
came

In

Menne reveals:

.

dous economic change

'

.

President, Association of German Chemical Industries

<

a

?

By DR. W. ALEXANDER MENNE*

"we

aredoing pretty well, but not quite well
enough," prompts Under Secretary of the Treasury to
outline a program to assure a continued savings flow
adequate to meet the surging pressures for economic
expansion and to assure a non-inflationary dollar. Mr.
Burgess rebuts those claiming we are on the road to
insolvency in pointing out that Americans are a saving
people both as individuals and in the operation of busi- <"
ness, but; does call attention to the drop in net personal
savings as a percentage of disposal income from 8 to 6%,
and that demands for capital are running ahead of the
~
country's savings. *

deplorable naivete all too
common
nowadays about the nature and causes
of what has become popularly known as "produc¬
tivity." What we do know is that the facts about
increases recently achieved in output per manhour in the steel industry afford little if any
logical basis for claims to higher rates of pay.
What is true in this regard of the steel industry
is, incidentally, true of other industries also, but
it is the steel industry that is now in the public
eye and it is the leader of the steel workers who
implies in an impassioned statement that an en¬
largement in the output of the men entitles them ;
to liberal rewards in the form of higher wages
arid the like.
;
^ ^ y
"
It is unfortunate that the terms, "productivity"
or more
fully "productivity of labor," should have
been permitted to become such excellent tools for
laying a false basis for the determination of5
wages. Technically, of course, these, terms mean
merely total output divided by the number of
man-hours devoted to that production.
That is
to say, if a hundred thousand men worked one
hundred hours to produce a given quantity of
steel

Copy

a

By HON. W. RANDOLPH BURGESS*

■

complaints of the steel union is that
the recent offer of the leading companies does not
adequately reward the workers for their increase
in productivity in recent years. We, of course,
have no way of knowing whether this assertion
is to be taken as a mere bit of propaganda, which
whether it reflects

Cents

Financing Economic Growth German Chemical Imports
—Are They a Threat?

One of the

does

Price 40

N. Y., Thursday, June 21, 1956

of

Field Day
28.

and

State, Municipal

in

-

and

U. S. Government,
Stale and

Municipal

STATE

Securities

AND

Public

MUNICIPAL
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Harris, Upham

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Members

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Bond Dept. Teletype: NY 1-708

Markets Maintained

The Bell

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SECURITIES

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All

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offer

Expiring July 3,

CANADIAN

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DEPARTMENT

to

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Wires

market.
to

Toronto, Montreal,

BROAD

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Bridgeport
DAUAS




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perth amboy

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115 BROADWAY
NEW YORK

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Co.

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Geporatioti

MEMBERS NEW YORK STOCK EXCHANGE

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Winnipeg, Calgary, Vancouver and Victoria

Teletype NY 1-2270

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Supply Co.

1956)

Exchanges At Regular Rates
Direct

American

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Company of Canada, Ltd.
current

Canadian

BANK

(Rights Expiring July 27, 1956)

CANADIAN
Commission Orders Executed On

Chase Manhattan

coast

of Canada

1832

Members

Exchange

Telephone Company

To Dealers, Banks and Broker*

established

Stock

&

NEW YORK 5

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T. L.WATSON &CO.

York

120 BROADWAY,

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LETTER

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Available

Housing Agency

1 NORTH tA SALLE ST.

CHICAGO

40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

Members
and

New

other

111

Broadway, N. Y. 6

WOrth 4-6000
Boston

York Stock Exchange

Principal Exchanges

Teletype NY 1-2708

Telephone:

Enterprise 1820

2

The Commercial and Financial Chronicle..

(2954)

Thursday, June 21, 1956

.

—

The

Dealers only

For Bonks, Brokers,

Security I Like Best

participate and give their

Try "HANSEATIC"

they to be regarded,

are

Our

when

customers

prepared to give immediate at¬
tention to your requests and help
you solve your problems faster.

and owned

Members
Hilton

New

Hotels

York

in

Stock

Corporation

Established
Associate

American

120

chain

1920

/

Exchange

Broadway, New York 5
Teletype NY 1-40

WOrth 4-2300
BOSTON
PHILADELPHIA

Private

SAN FRANCISCO

•

Wires

to

Principal Cities

„

and

operation

these
not

J Specialists in

RIGHTS

SCRIP

&

the

Members

Outstanding

American

Hilton

Hotels

Cor¬

its competitors in

anniversary of its incorpora¬
During this period the com¬

pany

has grown from

nine

hotels

with

This

Trading Markets

Air Control Products,

not

Inc.

Bank of Virginia
Alabama-Tennessee Natural

Co.

Scott, Horner &
Mason, Inc.

30

growth could
achieved without

been

leadership to this
management

slated

Tele. LY 62

LD 33

company,

team

with

which he has surrounded himself
is equally
deserving of the finest
praise for the organization's many
accomplishments.

Trading Markets

Ft.

Wayne
Corrugated Paper
Oswego Falls
Riverside Cement B

in

1959.

R. R.

Donnelley & Sons Co.*

the

T. M. T. Trailer

City

when

pleted.

of

class—in

*Prospectus

on

Request

3reene<mAGompanu
ESTABLISHED

37 Wall

St., N. Y.

1929

Tel. HAnover 2-4850

organized the Statler Ho¬

tels

Delaware Corporation, which
bought the physical properties

borrowed money.

Hil¬

long term
at

a

rental sufficient to guarantee
pay¬
ment of Statler's debt
obligations
and

provide the Statler stockhold¬

ers

with

an
adequate return to
the recapture of their
cap¬
investment within less * than

assure

ital

reaped

double

profit

from

the

a

deal

by
being given rights to purchase the

99

WALL

STREET

NEW YORK 5, N. Y.

Statler

Delaware

which

stock

from

they have profited hand¬

somely:
In

addition

to

the

quisition, Hilton has

Statler

ac¬

been rapidly

developing
national

SUGAR

its flourishing inter¬
operations
through
its

wholly-owned

subsidiary,

Hilton

Liquid

Hotels International, Inc. This
company is successfully operating

Exports—Imports—Futures

properties in Puerto Rico, Madrid
and Istanbul and has
contracted

Raw

—

Refined

—

DIgby 4-2727




to

now

were

the

the

South'

Florida

risks

of large

be provided
more

be

North

and

has

the

expected

to

little, if
holders'

continue

its

caoital

of

and

equitv,

conceivably
be operating
virtually all new ho¬
tels

the

of

dition.

finest,

Debt

most

modern

obligations,

would

be

hpld

in

ad¬

a

mini¬

profits from

the

prop¬

could

largely to cash
^

may

at

be

converted

securities.

and

The present book value of Hil¬

the

estimated

common,
$40

realization

assets.

The

less

at

share, is far below

per

value

best

of

its

evidence

fixed
this

of

fact is that the company has con¬

sistently realized substantial prof¬
its

from all of its property sales.

This

year,

management has

es¬

timated

profits will total at least
$9.50 ner share, of which about
$4 will be derived from capital
gain

and

approximately
$5.50
operations.
At
March
31;,

from

1956, the company had more than
$9,400,000 of deferred profits from
hotel
into

sales,

which

income

This

sum

in

will

future

taken

periods.

will be further increased

consummation

upon

be

Yorker

about $6

the

at

of

the

net

a

re¬

million.

In

profit

addition,

company's

earnings are fur¬
supplemented by its heavy
depreciation charges which curther

rentlv
per

amount

to

more

than

$4

share.

Hilton

common,

New York Stock

now

selling

than nine times its estimated

earnings from operations and

Luilwciler

proximately
mated

overall

is

year,

five

a

times

earnings

substantial^

its
for

ap¬

valued

equitv.

future.

Hilton

it

Onlv

is

recently,

the*

73 King St. West

this

t^at
Mr.

publicly announced "it is

Toronto, Canada

—

of.

and

low

IV2

its

on

the

Exchange three years
stock is also listed on

ago.

as

as

Toronto

(The

COMPANY

and

LIMITED

BOUGHT

■

the

—

SOLD

QUOTED

American Stock Exchange.) Then

through buying another
it acquired a pulp-wood
tion

company
reserva¬

agreement from the Govern-of

ment

the

Province

of

Alberta,-

allowing it to cut timber

L. A. DARLING CO.

on some

Unusual New

*

6,000

miles of virgin tim¬

square

ber land. It

promptly made a deal
with the St. Regis Paper Co'rpinv
for the erection of a large kraft
pulp mill, and its stock zoom'd
last year to over

fore

from

pected
It

was

ing

this

cou'd

American

St.

pigmy

a

Regis is

large

with

of

propertv,

while North Canadian, before this
new

venture,

dbllar
has

outfit.
in

made

impresses

was

the

mpveMt

every

last

one; as

three

years

intelligent

vation, with

low

the

and

River

property,

highway

President

reser¬

stumpage costs,

Athabasca

through

of

running
and

good

development.
St.

million

He made

Regis

to

contract

a

a

$33-

mill, to be operated under
St. Regis

undertook to buy itself or market

mill's

total

agreed to

profits.

a

that
the
mill

It

production.

It

50-50 division of the
was

North

with

further

Canadian

exclusive

arranged

would

;

Penobscot

DETROIT
Woodward 2-3855
Branch

Building

26, MICH.
-

De 75

*

Office—Bay City, Mich.

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK

gas

Continued

for its fuel

35 Industrial Stocks
ON

of
\

REQUEST

National Quotation Bureau
Incorporated

46 Front Street
on

INDEX)

14'Year Performance

FOLDER

?

have

right to supply the

natural

Exchange
Exchange

Canadian

erect

Regis management.

the

Stock
Stock

transportation,

North

convinced St. Regis it was a "nat¬
ural" for a large pulp and paper

with

Detroit

1051

Having this huge timber
-

Members

Midwest

and

sound.

the

MOREUHD t CO.

million

mere

a

But

Request

marry¬

company

paper

on

ex¬

a

$200 :million

over

be

venture!

new

cf

case

a

giant.

a

Latest Information

(

6 two years be¬

earnings

any

Development

in Home Construction

esti¬

under¬

likely

-

(Canada),

.

sold

WISENER

Saskatchewan

-

shares

on

1958

in

Albrrta
C.

James

St.

Exchange at less

oil

Provinces

rail

of

Common Stock

,

in de¬

acres

the

New

petroleum; ltd.
,

d y r

r o

- H
from its 80,000

tel

n^r

Montreal, Bangkok, Berlin, Tokyo

r>

cently announced sale of the Ho¬

dividends will be increased in the

Cairo,

experi- ;

veloping

proper¬

Thus, within
years,
Hilton,

dilution of itsl stock¬

any,

,

—f f J

delhi!

canadian

'

VWith' only

avoid,

gain.

few

minimum

a

Trading Market

Maintained in

re¬

Far

.

with

r

Cana¬

Oils

verse.' '

built; Hilton

are

policv of selling its older
relativelv

Firm

in-

had

by local interests. As

ties for capital

!;

and

dian

amounts of cap¬

hotels

new

1897 •'

in different

minimize

use

y

Office Tokyo
70 Branches
Brokers <6 Investment Bankers I

Georgia.

cities

and

*

*

*

on

its extensive timber properties

ital, the maior equity investment
for many of the new hotels
may

a

Established

ence.

major,

;

-

mar-.

discovered

was

1.000-room

of

other

write

or

Home

?

•>}

boom in the

a

oil

hotels—all

City,

Havana,

when

com-,

new

Call

St; Regis Paper

in

to operate hotels now under con¬
struction or
planned in Mexico

Acapulco,

enjoyed quite
ket

information J

current

111 Broadway,N.Y.6 COrtlaadt7-5689

Some years ago
,

For

Securities Co., Ltd.;

Exchange

success

To

than

a

Stock

York

New

West.

ton's

extraordinary deal, in¬
then second largest
in the country was
accomplished with a minimum of
capital through an ingenious piece
of financing.
For the purchase,

five years while
preserving a most
valuable equity for the future.
Hilton's
shareholders

LAMB0RN & CO., Inc.

other

throughout

the

properties

stage,

six

chain

these

ago,

plans

negotiations,

sales

of

announced

approximately

mav

.

North Canadian Oil, Ltd.

is

month

a

:
%

.

Hayden, Stone & Co., New York City

preliminary plans for the

creation

the

pos¬

remaining at practically *
stationary levels lor three years r
/ now appear to be stirring due '
to improved Japanese
economy. -~-<

Yamaichi

In addition, Hilton is said

to have

erty

ton then entered into

than

advanced

an

two years was the purchase of the
Statler Hotels chain in
October,
1954. This

lease

STOCKS

LUITWEILER;

C;

Members

branch offices

our

after

-

J.

to

'

of a stockdividend or
splitr should not be over--'

NY 1-1557

JAPANESE

.

to

build hotels in Detroit and Kansas

and

on

Construction

company

mum

largely

Direct wires

reason-:,

a

The added

i'

Birmingham, Ala.
Mobile, Ala.

sibility
stock

this

announced

were

Less

d^siqn.

Hilton

able expectation.

com¬

begin in six months and
be completed late in 1958 or
early

the most im¬
portant single development in the
company's growth during the past

Unquestionably,

hotel

cents,, would seem to be

;V

Earlier

$

New Orleans, La. -

to

volving

Lynchburg, Va.

States.

development.

total

than $170 million.

principal executive officer and
largest stockholder, has given in¬
top

HAnover 2-0700

ever

hotels

and

management of the highest order.
While Conrad N. Hilton, as the

the

Southeastern Telephone

of

remarkable

have

spired

Company

of

assets

total

$60 million to
throughout the world
of more

chain

a

about

Gas

major

May 29, 1956,
the Hilton company celebrated the

assets

policy of the directors to in¬
crease
dividend payments when¬

a $15 million, 800-room ho¬
Pittsburgh's Gateway Center

tel in

industry.' On

tion.

TEL. REctor 2-7815

]

the

Exchange

Stock

the

the

among

amongst all of

10th

BROADWAY, NEW YORK 5

120

Amott

the scope of its operation

in

Exchange

Stock

R.

poration, which ranks first in size

j^CpONNELL&fO.
York

Harry

strongest in the industry but also
enjoy the best position statistically
they have ever experienced.

and

New

build

are

is

Unitpd

month, plans

only the

chains

Since 1917

the

has by no means satisfied its
looked.
quest for first class hotels within J

chain

operators

New York Stock
Exchange
American Stock Exchange
19 Rector St., New York 6, N. Y.

Members

pany

Financially,^
rami!

Steiner, Rouse & Co!

~

justified by earnings."
He
added that, "the subject of divi¬
substantial

growth potential abroad, the

ever

by;
industry

>

C.

T Members

Apart from Hilton's tremendous

:

achieved
t he

Ltd.—J.

opportunities for
profits without the necessity of dends will be on the agenda at
committing large amounts of cap- ;the next directors'" meeting and
ital.
(he) would not 'be surprised if
All of these foreign hotels
are
of the latest design, provid¬ the policv pursued in the past i.s

hotel

of

e m

Oil,

Bought—S old—Quoted

Luitweiler, of Hayien, Stone .&
Co., New York City. (Page 2)

which

within the next several years.

profitable sys-"
t

CHICAGO

•

Louisiana Securities

R.

Dividends currently
the finest in hotel facilities continued."
key cities abroad. Hilton's are at the modest rate of 50 cents.
rapid expansion of its foreign op¬ quarterly. An early increase, to
a minimum rate of 60 cents quar¬
erations
should
contribute
ma¬
terially to the company's earnings > terly, and possibly as high as 75

most

effective

Canadian

North

or

Corporation—II.

in

opera¬

the

Hotels

-Amott, President, Amott, Ba.ier
&
Co.,. Inc., New Yorx City.
(Page 2)

ing

tors have built
ud

built

are

by the governments

ing

■

princi¬

ples, the major

Member

Stock

scien-,

manage-,

ment

Corporation
*

of

These hotels

tage of limiting risks and provid¬

applica-

tific

Alabama &

Hilton

ing the past decade has developed

tion

nor

they are situated, with
supplying management and
working capital, usually retaining
one-third of the operating profit.
This arrangement has the advan¬

Exchange

The growth of hotel chains dur¬

the

be,

to

business interest of the. countries

extraordinary new techniques and
efficiency in hotel operation. By

New York Hanseatic

intended

sell the securities discussed.)

to

Participants and

Their Selections

particular security.

a

and Rome.

President, Amott, Baker & Co.,
Incorporated, New York City

you

is

offer

as an

not

are

H. R. AMOTT

"Hanseatic."

large trading department

AThiS'YVeek's

Forum

Hil'on

complete facilities for reach¬
ing Over-the-Counter markets
everywhere will improve your
to

for favoring

reasons

(The articles contained in this forum

Our

service

V

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

Why Traders Tell Traders To

contact

•

page

51

New York 4,

N.Y.

Volume 183

Number 5544

The Commercial and Financial Chronicle

...

(2955)

Effects Upon the Bond Market
Of a Restrictive Credit Policy
:

INDEX
Articles and News

By RUDOLF SMUTNY*
Senior Partner,

German

Salomon Bros. & Hutzler

Chemical Imports: Are They

W. Alexander Menne

a

Page

Threat?

•

Cover

_

In appraising the current restrictive credit
policy's effect upon
the bond market, and offering remedial measures to correct

Effects Upon the Bond Market of

profitless position of

gov-

ernment

r

security dealers under existing interest rate structure,
Mr. Smutny believes: (1) we face a pause in our economic
expansion; (2) bond market downturn has already "bottomed

;

—Rudolf
<

.

t

-*

-

Rest

times
Variations in the
years

have been good.
rate
of
economic

activity have
been minor. Business, in the main,
b

d

o o m e

all

over

the land.

Now

a new

o
:

f

seems

brought to

and

for

vast

the
has

set; the system then created,
-

to

to

finance

Wars, efforts to

cope

Street

boat.

or

of

Arnold

Wechsler

Obsolete Securities Dept.
WALL

99

STREET, NEW YORK
WHitehall 4-6551

Exchanges for Prosperity and

Bache

6

9

STRATEGIC

The Outlook for Business—H. E. Luedicke

10

Farm Price and Crop

12

MATERIALS

13

OFFICIAL FILMS

14

McLEAN

17

INDUSTRIES

-

Outlook—Roger W. Babson

An Economic Review and Outlook for
Bankers

F.

;

.

Ploch

The General Business and Automotive Outlook

—A.

of

H.

Baume

_

way

The Choice of

Profession—Alexander Wilson

a

Under
A Real

have

we

two

with

■

1-

Sharing the Chemical Age—Ira U. Cobleigh

growth

occurred.

L.

Wall

;

the

financial

since

able

Growth—Harold

~

>

degree

prepared

M-• •—

.

Nadler___

quote

*

Telephone:

banks

our

unknown

elasticity

uncertain-,, been

ties

1916

which

of' Nation—Marcus

—William

hitherto

an

3

_

International Commodity

zation of the Federal Reserve
Sys¬
tem in

Come to 99

buyer

a

a

*

v-

U

present maturity restriction.

During the post-war

can't get

Courtesy

Smutny

find

can't

you

If you

By train, plane

Restrictive Credit Policy

a

Problems of Commercial Banks in New York and

;

out"; (3) opportunity to repeat 1953 deep discount issue purchases to profit from bond refunding is
present, and (4) such
a market turn-around will not be
as intense in
price reversal
as in 1953.
Proposes: Open Market Committee operations
include all Treasury obligations up to one
year; special real¬
istic borrowing rate for dealers to maintain
their, considerable
trading position; easy access to repurchase agreements with
Federal Reserve, and present repurchase
agreements be collat¬
eralized by Government bonds of any
maturity without the

.

If

Financing Economic Growth—Hon. W. Randolph Burgess__Cover

the unbalanced bill market and the

v;

3

Look at Turnpike

Bonds—George I. McKelvey, Jr

18

TEXOTA OIL

World
a

great

be in the makdepression, and a huge economic
jr ing. Some soft' expansion. Out of it has evolved

spots-

appear

to be

develop¬
ing in- critical

Vernon

money market which effectively
the needs of American en¬

a

>/ seems to some
i'\ to be simmer•*

Rudolf

i

Smutny

n

down.

g

Others
the

fear

monetary

fuel under the economic pressure
cooker may result in an explosion

unless

discreetly

very

handled.

And, unfortunately, the efforts of
the monetary authorities to main¬
tain basic balance in

have

stirred

our

economy

widespread and,
on occasion, ill-tempered and un¬
informed criticism, and we now
find

the

financial

middle of
The

world

the

in

great debate.

a

night.

Back

firm was

in

when

1910

organized, the bond

our

mar¬

much less important than

was

it is today.

The debt of the United

our

Reserve

in

even

responsibility
debt and
and

ing constrictive
and

each

New

the then exist¬

system,

York

Federal Reserve

bank

was

a

System in itself.

Money panics were an ever-pres¬
ent hazard and Wall Street had

just

gotten

Black Friday.
Under such circumstances, banks

be

can

minded

trading

and

the

short

volume

term

-

of

bond

lower, by far, than it

was

is today.
The passage
serve

*An

of the Federal Re¬

Act in 1913 and the organiaddress

by Mr. Smutny before
the Joint Meeting of the Dallas Security
Association

Dealers

of

sociation

before

the

Houston

Dallas

As¬

Analysts,

and

the

and

Investment

of Financial
Houston, June

Society

Analysts, at Dallas and
12 and 13, respectively.

of

managing

specialized in

policies

that

so

Uninterrupted Growth for Chemical Industry Forecast

confronted

short

of

war.

be

Regular Features

•'

'y

'

As We
Bank

See It

and

Business

Insurance

do

to do the job alone.
successfully, they are
have to get teamwork

it

going

to

from every responsible officer in

Nashville

•

Stocks

Coming Events in the Investment Field__

8

Dealer-Broker Investment Recommendations

8

/




Stancan Uranium Corp.*

From Washington Ahead

all

of

banking

firms.
right to expect

every

that

us

degree

we

exercise

financial

the

in

of

conduct

duties—that

a

states¬
of

that public as well as private

of the News—Carlisle Bargeron.

the national economy

eral
debt

be

Observations—A.

policies of the Fed¬

Reserve

authorities, and the
policies of the

management

are now,

and very prop¬
the over-all

erly,

suborinated

well

being of the national econ¬
In the past, whenever busi¬
activity turned down after

omy.
ness

restrictive

credit

to

measures

Wilfred

May—

ities, they have been subjected to

Our

page

TELETYPE N. Y. 1-5

•

Chicago

Schenectady

•

•

Glens Falls

40

Exchange Pi., N. Y.

Direct Wires

to

Securities Now in Registration

Securities

_

Offerings—

.

.

and

—

You—By Wallace Streete—

Speculative Profit

40

SOUTHLAND

16

RACING

16

The Security I Like Best.—

^—___

TtJ State of Trade and Industry
and

For Worthwhile

45

Salesman's Corner

The Market.

Chicago * Los Angeles

15

—

21

Security

*

47

!

Securities

Prospective

Philadelphia

30

Reporter's Report..

Washington
on

HA 2-0270

4

were

adopted by the monetary author¬

Continued

more

&

34

Our Reporter on Governments

Railroad

Being

credit

Treasury,

in

securities

Teletype NY 1-1825 & 1-4844

Credit Policies Subordinated to
Well

trading markets

over-the-counter

Singer, Bean
Mackie, inc.

50
48

.__

Public Utility Securities

The

._

News About Banks and Bankers

maintained.

Economic

350

Request

12

Indications of Current Business Activity
Mutual Funds

maintain

than

on

in¬

terests are served and balance and
order in

20

our

keep in
mind the public consequences of
our
private activities to the end
we

*Circular

We

and

investment

Leaseholds, Inc.

Pacific Uranium Mines Co.*

8

CORP.

2
4

You

Common Stock

52

32

Around $1.50
1

Twice Weekly

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

X.

C.

Eng¬
•

COMMERCIAL and

Reentered

Reg. U. S. Patent Office
B.

Park

by William B. Dana
Company

COMPANY, Publishers

DANA

Place, New York 7, N.
2-9570

to

ary

25,

as

1942,

the

post

office

at

•

Rates

Since

1945

greyhound

WILLIAM

SEIBERT, President

DANA

Thursday, June 21,
Every Thursday

(general

1956
news

and

issue)

Offices:

Chicago 3,

HI.

135

South

La

Salle

St.,

(Telephone STate 2-0613);

at

cost

of

over

Eighty-day Track Meet

creased

annual

racing

attendance

tracks

has

at

in¬

million.

Union,

$60.00

per

of

year;

Canada,
$63.00
per
Other Countries, $67.00 per year.
Other
Bank

every

Worcester
Other

of

In

Dominion

and ad¬

Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearing*,
state and city news, etc.).
vertising

Subscriptions in United States, U.
Possessions, Territories
and
Members
Pan-American

SEIBERT, Editor & Publisher

HERBERT D.

greyhound racing

built

Scheduled Opening Aug. 30.

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

Subscription

modern

was

$1,000,000.

New

Y.

9576

and

track

second-class matter Febru¬

at

Southland, America's most beauti¬
ful

1956

CHRONICLE

FINANCIAL

ST., NEW YORK 4, N. Y.

•

Gulf Coast

34

Bookshelf

Einzig: "Instalment Credit in Britain"

New York Stock Exchange

Boston

'

Cover

—

our
country's banks,
insurance
companies,
savings
institutions

They have

Helicopters, Inc.

'"'

,

expected

Spencer Trask & Co.
•

(Editorial)

Man's

REctor

Albany

Doman

L-:''/•Vv'.rT.

I

25

BROAD

Teletype NY 1-4643

Corpus Christ! Refining Company

WILLIAM

25

Broadway, New York 4

49

bal¬

PREFERRED STOCKS

TELEPHONE HAnover 24300

42
19

Copyright

Members

J.F.Reilly&Co.,Inc.

Visualized

20

The

have

Cars

New Officers of Manufacturers' Chemists' Association

Published

For many years we

Tomorrow's

DIgby 4-4970

that

Moreover, the officials in Wash¬
ington, no matter how able, can't

over

extremely

were

in

conducting monetary

maintained in our
highly complex ecortpfny is, the
gravest responsibility with which
any group of men in public life

manship

currency

Market

be

may

business

banks struggled to meet the needs
of business within

of

credit

ance

wasn't

Commercial

existence.

Plastic

dominates the money market. The

billion. The

System

Dealings in Uranium Issues.. 17

by Harry E. Chesebrough.

economy and the Federal debt

high

Federal

on

major

ards,

it totaled less than $1

Tremendous

Today, the Federal budget is a
and very potent factor in

;

of

almost non-existent, for

.

~

States Treasury, by present stand¬
was

State

•

Money Market

-

To

present state of economic
didn't just happen over¬

affairs

ket

up

New York

17

California Issues New Rule
Federal Debt Dominates the

kettle-

>

President of the

terprise and finance.

c
areas.Theeco¬

nomic

Named

Bankers Association

r"..e c o n o m i
-

Alexander

'

serves

and

Note—On

the

rate

Record

—

Monthly,

(Foreign postage extra.)

account of

the

fluctuations In

of

exchange, remittances for for¬
eign subscriptions and advertisements mist
be

maas

in

New

from

2

million

to

over

8

year.

Send for latest

Report

Publications

Quotation

$40.00 per year.

B.

York

funds.

General Investing Corp.
Members

American Stock

Exchange

80 Wall St., New York 5 • B0 9-1600

4

The Commercial and Financial Chronicle...

(2956)

"Why

Hoffman,

Bobby

keep

'

Thursday, June 21, 1956

when he can't field?"

•

Production

Steel

Off^the-Field

Observations.

discussion

By A. WILFRED MAY

Habitually,
adversity

pickup
terest

time of corporate
out a marked

a

brings

the stockholders' in¬
participation in their

in
and

devised

of

good part of the
with equal spirit

spelled-out on Dad's
with

trades

Make

long-range

the Yankees did for
Pitcher Turley at the age of 24,
and thus good for seven years
aims;

or

2.

as

SO;.

Get

democracy, taken

"Brat"

like

player

the

only

director

As

succeed the incumbent Mr. Horace

Get

players from there.
Spend more money

tors

via

this shareholder
glad to forego his

be

dividend dollar.
It

was

Barber) Maglie go, Bob continued.
have been swapped for

He should

So

it

cellar,

that this week's annual gath¬

new,

shareholders of the

ering of

the

National

Exhibition

whose

team is down in the

standing
whose
a

income

sizable

lowly league

place

seventh

of

net

last

elicited

drop),

floor

attendance,

(and
took

year

record

and

questions

should
gamble with
young players, as did the

is

step

a

in the

Bob

think

advisers

and

that

Rigney is a good Manager, but he
needs a push from the directors.
queries,

about

motivated

Assuredly
property's
than

reverses on

finance,

field rather

the journey to

was

week-day
admission
(akin
to
the

increasingly

lunch

Kheel,

was

gift

cf

from

Kheel,

his

the

transit

via

labor

resentation

own

of

owning
him

the

Gilbert,

Club,

five-share

Brains

of school

Trust

friends

had

gave

for

proxy

representation.

expert

lot

in

stock

And

sand-

and

helped

a

to

arm

him with the following suggested

"corporate"

laboriously

program,

and

he

was

the

in

(an

figure

pended

to

financial

one-line net income

profit) ap¬
balance

$111,000

summarized

a

the

Asked

cers'

the

new

young

himself

prerogative

formation about

He

of

the

withhold

to

an

legal

this

unlisted

in¬

however, forththe
fact
that
President Stoneham's stipend
exceeds that of employee Willie
pany.

did,

confirm

Mays.
After

of

some

those

expressed

ance

in

or

with

apparently caring about

the

over

consumed

this floor discussion, and
one

attend¬

annoyance

the "waste of time"

by
no

cumu¬

voting, the stagger system,

absence
the

lack

of
of

directors,

women

free frankfurter

a

lunch, this year's extra-inning af¬
was then declared adjourned.
*

spirit of

Respectfully
democratic

*

submitted

as

Post-Meeting

team's

was on

a

Report.

columnist)

(your

"Why
handed
the

good

a

With Carr & Co.

hitter to

power

right-

back

Mueller

both

is

"The

Carr

with

now

Penobscot

&

Building,

the Detroit Stock

Stoy

Company,

members

of

Alvin

similar period a year ago.
Initial claims for unemployment insurance rose

Dark

was

Industrial production in May

(Special to The Financial Chronicle)

Coury,

Jr.

scot

look

at

variety of investment opportunities—then take
New

York.

is

—

Edward M.
with

now

Building,

Detroit
a

S.

Examples?
or

Here

April level and four points above May last year.
that output in most major groups of indus¬
tries "was relatively stable" in May and early June. Production
of durable manufactures "decreased slightly" in May, it added,
The Board noted

.mentioning steel and autos as examples.

unchanged" from Apri] to May aftej:;allowin^ for:
seasonal influences.
\
i"' f.*\
:
'"T:tion was "about

consumers

we

Bankers Trust Co.

(NY)

Chemical Corn Exchange Bank

Dictaphone Corp.

Stock

members

of

the

Exchange.

ing weekly, this week.
"
With uncertainty prevailing over

make markets in,

City Bank of N. Y.

(NY)

(Buffalo)

,

This NEW book ivill
it may

change

Here,

State Bank of

fully

is

and

now

~

*

♦

.

•

need for
business

v

This

The effect of the

particularly, would feel the impact.

sumers,

seven-week shut down of Tennessee

Coal & Iron Division, of U. S.<

Corp., on steel-using plants in the South gives a revealing
picture of the real situation in steel inventories.

Meanwhile, the five-year contract proposal of the Big Three
with plently to mull over on
of future steel prices. If the usual pattern were fol¬

matter

lowed, assuming a five-year agreement, steel prices would^rise
annually as yearly provisions for higher wages and fringes went
into effect.
"Steel is money in the bank" would be a perennial

Incidentally, if this year's settlement

thought for metalworkers.
cost runs close to

20 cents

a

an

hour, prices will rise about $10 per

"The Iron Age" adds.

snapback. beginning late in third quarter and

business will be good. Too many industries, in¬
cluding oil and gas, freight cars, and construction, are desperate
for steel to warrant anything but optimism for balance of the
quarter

The automotive industry also will be an important factor in
picture, concludes this trade authority.

the fourth quarter steel
The auto

up its rate of inventory reduc¬
daily due to improving sales and tightly
"Ward's Automotive Reports" stated on

industry has stepped

tion to almost 4,000 cars

controlled

production,
.

.

■

industry's statistical authority said that June 1-10 new'
sales averaged 5% improvement over May 1-10 period, con¬

tinuing the brightening picture noted at the close of May.
reduced

Thus

car

building stood

at

102,544

units last week

against 136,038 same week in April, combined with stronger show-

your

ESTABLISHED

amaze

you—

entire life!

revealed

little-known

on

page

the

first

STATE AND

1894fc

methods

time,

used

are

MUNICIPAL BONDS

CORPORATE BONDS

success¬

LOCAL STOCKS

''

BONUS OFFER — As an inducement
for
your
prompt action, an important
bulletin giving "Best Buys" and answer¬
ing "What Action Now?" will be in¬
cluded

NEW YORK 5, N. Y.

Offices in 107 Cities

for

the author to buiid his estate
past 30 years. All phases of
operations are fully explained.
Page after page illustrates how to avoid
common
pitfalls.

Merrill Lynch, Pierce, Fenner & Beane
70 PINE STREET

steel

>>?
genuine need for steel to meet production requirements
strengthens belief that an industrywide shut-down would strike
a quick
body blow to metalworking. Structural and plate con¬

prospects.

the

the

Trading Department




fore. In many industries, the
in the months ahead is founded on good

coming to the

again

steel

market

Just call—

"

the

by

over

Albany

Time, Inc.

-

of

By J. A. LEMPENAU

Manufacturers & Traders Trust

Haloid Company

"*

Street*'

out of Wall

Tampax, Inc.

''

outcome

the mills are going all-out on production and consumers
are
increasing pressure for delivery, this trade weekly reports.
This pressure, it notes, is not based entirely on the uncertain
labor outlook.
Underlying strength of the steel market, over¬
shadowed momentarily by the downturn in some consumer lines,

Continued
Home Insurance Co.

Great American Insurance Co.

*

the

labor talks,

Friday last.

"How to Take a Fortune

Oswego Falls Corp.

Federal Insurance Co.

/

Unfortunately, few consumers are

states "The Iron Age," national metalwork-

well off inventory wise,

New York Trust Co.

Dun & Bradstreet

Interested?

inventories

Liberty Bank of Buffalo

Chase Manhattan Bank (NY)

First National

comfortable

The

find markets for:

American Equitable Assurance Co.

with

themselves for their foresight.

car

stocks

critical and uncertain phase,
are congratulating

With steel labor talks entering a

steel

a

listing 453 different kinds of
Empire State's got 430 of them.
some

In most mineral and non¬

durable manufacturing industries, the report observed that produc¬

v

are

pace

R.

With the Census Bureau

manufacture—the

slightly slower

under the

Livingstone, Crouse & Co., Penob¬

430 out of 453
Want

a

tlpe 1947-49 average or a dip of two percentage points from
April, but still four points above May last year.
Taking seasonal factors into account, it stated that output in
May also came to 142% of the 1947-49 average. This was one point

year.

YORK

maintained

before, the Federal Reserve Board reported.
Board's index of industrial production for May stood at

than the month

There will be

With Livingstone, Crouse
DETROIT, Mich.

NEW

5% the past

exceeded those of a year ago by 14%. There were
seasonal layoffs in the textile, apparel and leather goods industries
and continued labor cutbacks were reported by automotive pro¬
ducers.
*
"
•.
"
I
*
and

week,

fourth

short."

cover

first 24 weeks of 1956

ton, some less, some more,

Exchange.

being slap-hitters."

traded

able to

and

having two Lock-

means

mans—both

Lockman

Mich.—Albert

DETROIT,

up

great Willie Mays?"

The dollar volume of industrial contract
was 137% over that of the

housing.

mass

awards for the

the

stockholders.

get

not

"Having

not

private

steel producers provides consumers

suggestions from

quarter-backing

the

panded almost 104% last week and were 56% above the similar
1955 level, according to the "Engineering News Record.'^ The most
considerable increases were reported in industrial building and

frankly fielded the questions,

complaints, and

in

Steel

By Willie May.

hand

nation-at-large

com¬

fair

the

democracy,

offi¬

the

Kheel,
presiding officer Edgar P. Feeley
by

Trial

on

Bill Rigney,

of

amount

salaries

the

for

sponding period a year ago.
>
Awards for heavy civil engineering construction contracts ex¬

The

year-end
a

production

142% of

practice of confining all operating
statement to

industrial

Total

period ended on Wednesday of last week registered a moderate
recovery from the level of the week before. Gains were noted in
automotive, electric power, food processing and paperboard in¬
dustries with over-all output somewhat above that of the corre¬

carried.

(Special tc The Financial Chronicle)

Lewis-and-John

their

with

line

corporate

nority stockholder No. ONE
team

In

manager,

The mi¬

and,

dynamic

Failures

J

made to the

motion

*

and

tran¬

equity.

that

why

"Management"

rep¬

attorney
But Bob's

appreciably

his

W.

by

permitted to resign.

birthday

a

Theodore

dad,

authority.

scended

share of stock

a

acquired

provided

Leo (The Lip) Durocher,

manager,

owner

for
free

corporations?);

Chip

insistently,

the

Strong objection

lative
Blue

Jersey City of 13-year-old Bobby

recently

as

stockholders

his

by

diverse

free

Minority Stockholder No. 2

declared

various parts of the floor

From

the

management proxies,

the

rightly

than Lockman.

came

discussion.

St.

right direction, because Brandt is
younger

On

show of hands of those

a

availed

with the

trade

week's

Cardinals

Louis

ing

the

near

it

Last

Giants baseball

York

New

Club is

that the

Pittsburgh Pirates.

Company,

holder.

5-share

by

sheet.

talent.

Now

made

was

attending, and with Mr. Feelqy
opposing but refraining from vot¬

data

mistake to let Sal (The

a

was

proven

meeting.

company

that "all direc¬
to attend the

requested

meeting,"

basis of

would

annual

motion

a

another

purpose,

Stockholder No. 2

non-attendance

be

Go easy on

winner, a stadium cannot be
Spend on the team be¬
fore a grandstand. To meet any
drain on cash for this Iworthy

discussion

violent

directors

annual

the plans for a new
stadium. Without a

proxies,

management

more

the

record,
young

on

as

24 votes,

After
of

filled.

(Robert J. Kheel)

President. Mr. Grant
Mr. Stoneham,

10,312.

received

enlarged

S. Minority

years.

result, a rival candidate, Mr.
Grant, was nominated to

a

mostly

talent.

U.

for

Donald

farm; or at least stop concen¬
trating
on
hastily
drawing

5.

This

present.

situation has prevailed

team the

4.

Production

Business

the Club

Treasurer, who came in order to
provide someone to preside, was

Stoneham,

spark of bygone days.
rid
of
the- Minneapolis

Industry

Price Index

Auto

taken to

Stanky, to give the infield live¬
liness
and the Durocher-less
3.

Food

and

the fact that Mr. Feeley,

Trade

Commodity Price Index

with the

up

was

-■

a

Retail

State of Trade

a

was,

Violent exception

typewriter:
1.

Carloadings

non-playing corporate area. '

DEMOCRACY

and

Electric Output

Questions

Additionally,

A HOMER FOR CORPORATE

The

Management

*

..

at

no

extra

oost.

For

your

of

this eye-opening book pins
bulletin, send $3 today to:

copy

the bonus

RHODES-HAVERTY BLDG.
•

THE INCOME BUHLDER
RIVER

EDGE

•

NEW

JERSEY

«

*

WALNUT -0316

ATLANTA
LONG

1, GEORGIA

DISTANCE 421

38

Volume 183

Number 5544... The Commercial and Financial Chronicle

(2957)

imperati ve, necessary, with

were

Problems of Commercial Banks

the

banks

In New York and Rest of Nation

Believes:

the

upon

(1)

a

I

year ago

honored

was

tant than it

digging in¬
to
this prob¬
lem, I soon
found

mmSk

there

need for

tistical
'The

ades ago.

'

fully well.
I
soon
realized,
:

la ws

i

n

Nadler

' t h

that

and

great

a

many

place during

a

The

the

study

di¬

was

problems
be

may

a

as

banks

where

and

in

all know, the

trade, and

'

'

ture

the

of

United

by

rapid

a

and

distribution

to

States

dynamic

come

nation

a

people,
many

during

lies who need

,

today than
decades
'

ago

and

this

; was

was

was

from

.

a

the

suburbs.

•

from

in

.

in

will

from

not

only

offer
taxable

can

more

but fringe benefits, which
have certain tax advantages. And

-1

than

(2)

Hand

in

hand

movement

was

with
the
the wide¬

of branches.
At
1955, there were 501
commercial
banks,
with
1,006

opening

spread
the

of

end

branches in existence in the state,

and, undoubtedly, as more merg¬
ers occur, as it becomes more dif¬
ficult
as

to

it

obtain proper

becomes

personnel,

difficult

more

to

retain the best brains in the pro¬

fession, the merger movement will
lead to more branches.
Probably

the

most

b. j.

pleased to

are

announce

Moreover, the study finds that
the regional banks were in a bet¬
ter

deal

from

very strong and
competition
from
the
other institutions catering to the
savings deposits of the people.
The regional
banks were in a

growing

better position

billion

:

::

;

MR. L. WALTER DEMPSEY

VAN INGEN, JR.

of

MR. ALBERT F. HAIBACK

previously

was

as

consumer

MR. DUNCAN C. GRAY

in

borrowing,

play

an

have been admitted to

forces

general partnership in

our

firm.

Hill, Darlington & Co.

operating in

Members

these

what

of the New York Stock Exchange

Associate Members

changes

■

of the American Stock Exchange

Investment Advisers

movement.

about

of

the

say

—

Binghamlon

June 18,1956

-the

brought

by economic necessity, the
of

cost

'a

doing

business,

importance

of

the commercial

4

V

H

j 1

»

re¬

the country, applying to

dustries, trade, finance,

There

|

WE ARE PLEASED TO ANNOUNCE
THAT WE HAVE BECOME

in¬

banks.

Hill, Darlington & Co.
Members New York Slock Exchange

importance to analyze the merger
movement

AFFILIATED WITH

including

It was, therefore, of the utmost

among the commercial

banks and to reach certain definite

country

the

even

bigness

increased

over

movement

of

!

-

search, the difficulty of obtaining
proper management — has create^
a
major merger movement all

in¬

population
cities to the
a

may

toward

increased

in

was

Consolidation

The trend towards consoli¬

trend

only two
is

Towards

and the election

of

t.

conclusions.

great

of

:

Mergers and Independent Banking
The

first

conclusion

that

Mr. L. Walter Dempsey

I
as

President

reached is this: that the unit bank¬

ing system and the dual banking
system — both, together — are the

and

keystone of the American banking
system; that the future of the

Mr. Peter Darlington

of

Non-Bank

Financial

Moreover,

very

changes occurred
financial

on

the

institutions

field

other

dual

of

At

than

The growth of the savings
loan
associations
was
un¬

precedented.

The

a

healthy

system
and
a
healthy
banking system.- the same time, the fact can¬

B.

An

address

being handmaidens to
industry
trade, were bound to be af¬

and

percentage

60th Annual

by Dr. Nadler before

by
the
great
economic
changes that have occurred dur-

the

Convention of the New York
•

State

vN.

Bankers

J., June

15,

A

ss-eiation,

1956.

Spring

...




Lake,

,

J. Van Ingen & Co.

ing the last two decades and that
bank

mergers,

among

the banks,

inc.

Municipal Bonds

NEW YORK

fected
*

Vice President

unit

not be overlooked that the banks,

banks.
and

maintaining

banking

important
in

as

American banking system depends

Institutions

June 18,1956

CHICAGO

through high rates

Continued

a

New York

(1)

great de-

a

the

have become affiliated with us and that

MR. BERNARD J.

meet the compe¬

position to

tition

of

dation—one

are

were developed.
All
naturally, had a great im¬
pact on the banks and created new

Growth

.

Competition Will Become Keener

van 1ngen & co. inc.

ping centers

;

.

case
among
the individual
smaller banks in existence before.

that

problems for them.

.

the

important

this,

,

.

small individual bank, but

a

also competition among the larger
banks has been keener than was

Branches And Regional Banks

We

1940

the end

$9
at

financing, will

see

Trend

traffic, because of
the lack of parking facilities, new
shopping facilities and new shop-

•

them

which

are.

population

by

Because

congestion

corporations

state.

Let's

thought impossible

section

one

the

class

there

case

congested

another.

'.to

be¬

are

ing raided for their best officers
by

one community, the com¬
is keener. Not only are
these banks in a position to serve

their localities and districts better

to

;

merger

thereof.

lack

to

petition

MUNICIPAL BONDS

of

population

There

or

that the banks

and
any

on

.

on

growth,

commercial bank

the

shift

great

found

kre:

try and on the banking structure

middle

increase

centralization

.

of

accompanied

Management
We

pact

banking system are the two
pillars on which the American

for

for mergers, briefly,

sons

analyze

banks in

again,, however, that
banking system and the

dual

rea¬

in¬

marked

rate which two dec-

a

billion

billion

dynamic

the

the

Second,

ades

reasons

economy, have an impact on
the commercial banks of the coun¬

ago.

creasing at
•

a

was

valid

are

to

study whether this had

banking system will continue

before.

The most important

our

individuals and fami-

more

.

mergers.

deposits

therefore, of the utmost

importance

disposable in-

therefore

and

•

.

the

of

was

the

unit

the

economy.

For Mergers

the country.
All these changes, the underly*-

ing

was

$36

economy

of the people.^ We have be¬

come

fi¬
the

of

repeat,

I

increasingly important role in the

only in production, in grossnational income, but also in the

,

is

Consumer

increased

And,
pointed out,

not

,

ever

Reasons

in mortgages than
indebted¬

more

past.

consumer

Postwar Changes

.

and

This

70%

im¬
competition, whether it
led to monopoly, and the result
of the study showed that wherever
you have two or three regional

rest.
Valid

homes

future

1955.

the last few decades.

The postwar period

the

1940

anything that

happens to industry and trade is
bound to have an impact on the
banks, and great changes have
taken place in the economic struc¬

"

is keener than

indebtedness

$17

ness

handmaidens to indus¬

are

try and

from

in

the

•

banks

trade

continue.

ing in the

these

four-family

great deal

solution.
we

industry,

will

trend, brought about by basic, un¬
derlying, dynamic forces operat¬

$88 billion at the end of 1955,
and, in all probability, commercial

primarily to find out what

these

Naturally,

in

nance

to

to

rected

are

mind that the merger move¬

ment

problems

mortgage

to

creased

'

Therefore,

own

the

of

power

few.

a

one

serious prob-

very

the

increase

60

basic changes, also, had
impact on the financial-

great

just

these 40 years, and that the banks
in the State of New York are con¬
fronted with

long period of years, I have
the danger of predicting
yet I am certain in my

possible by the supervising auth¬
In some counties, two or
regional banks control be¬

orities.

three

tween

of the people.
Private in¬
debtedness,
usually
financed
through the commercial banks,
has increased tremendously. I will
not bore you with many figures—

about 40 years

changes have taken

and while,

son,

very
often, the entire banking
district where this has been made

habits

revised

were

seventh

New York during
last two decades was the de¬
velopment of regional banks
banks which
serve, not only one
locality, but an entire district and,
the

.♦■-

These
a

e

States

United

\

Marcus

solved.:

however, that the
banking

•

all

a

over a

that has occurred in

of

of the county.
It was,

money,

created

of

son

not the seventh

am

State

the future,

develop-; this raid on the best brains of the
for the; commercial banks will continue
commercial banks, and I dare say
so long as the Federal income tax
that the future of the commercial
is as backbreaking as it is today.
banks depends to a very largeDiversification of services reach¬
extent on how these problems are
ments

im¬

move¬

performed and on insisting
degree that competition
among banking continue as was
intended in the law, and competi¬
tion today, in spite of the mergers,

And the mutual savings

Obviously,

study.

statistics

And while I

to the nth

three dec¬

or

an

the

realized

they

become today very
important and giant financial in¬

are ample and
cover the field

;

two

was

played

portant role in the merger

supervisors of banks should be
congratulated on the tasks which

retail

unions

these

centers—all

development

desire for bigness

Both the national and the state

stitutions.

no

sta¬

a

credit

new localities, the desire and
willingness to serve larger cus¬
tomers, v to
participate
in
tne
growth of new communities, of
opening branches in new shopping

ment.

individual.

have

banks

that

was

the

of

the small

as among

brings it out) —- that the
that have taken place
based on economic necessity

to

or

The role played
today by sales finance companies
and others is by far more impor¬

In

there

well

not on the

and

almost amazing.

preparing a study on the bank¬
ing situation in New York -State.

lem.

as

were

basis

same

wholesale and

growth

association with the task

your

of

.

Mergers took place
large banks; medium-sized

There

Over

ago,

stitutions,

mergers

bank-earning's outlook is encouraging; (2) depression of the
'30s and the World War II fixed interest rates are a
thing of
the past; (3) banking depends upon a
healthy unit and dual
banking system; (4) merger movement has been necessary
and will continue, though unlikely to lessen
competition, and
(5) a well managed holding company "is far superior" to
statewide branch banking.
by

absorbed by other in¬

among

study

savings-competition and the changing character of savings
itself, Dr. Nadler recommends over-due bank legislative revi¬
sion compelling
all financial institutions catering to the
banks.

were

ing

It is of interest to note—and the

Asserting that the greatest problem confronting most commer¬
cial banks is their survival ability in view of increasing

commercial

of

end

banks.

Professor of Finance, New York University

as

the

since

banks,

By MARCUS NADLER*

popular concept of deposits be placed

that

result

the war, from 1946 until 1955, 187

5

MIAMI

on

page

22

curred

For Prosperity

to

know
the

the field,

client is

his

If

tributor,

farmer,

a

elevator

an

man, a

a

Speculation Makes Growth

dis¬

Head of leading security and
nations

to

main obstacles hampering

remove

particular

commodity organization urges

abroad,

contribute to peace, pros¬

and research.

much

case.

three combined
The

purpose

conference

was

for

which

called

of

this

cannot

be

commended too highly.
We have
gathered to discuss common prob¬

lems
our

to

y

,

industry;

discuss,

the

in

practical

be stressed too
often that speculation

too

or

I

risk.

not

do

Under

ideal

Commodity

conditions,
of

the functions

are

to

mean

a

Exchange

cannot

the

is

Who

for sound advice.

personal opinion that the com¬

and

informed

pillars of

a

what

commodity

modity exchange can be a power¬
ful tool for working toward the
of free trade throughout

there is one other factor that

revival

tributes—I

life

but

are

ill-informed.

the

-

dealt

the

exchanges, the actual
commodity acquires a high de¬
gree of
liquidity which in turn

of today?

speculator

from many walks of

He may come

the world.

within

very

are

It is experience and provide the basis

free enterprise economy.

a

my

counts, it

ac¬

Importance of Research

removed. Commends usefulness of speculation

are

economic function.

In

perity, price stability and stimulated commodity flow—provid¬
ing exchange manipulation, bulk buying and selling, price
supports and currency regulations, as the case may be, here
and

essential

an

exchange?
Primarily, of course/,
imply that I consider speculation
the exchange provides price in¬
short, like any • competent in the commodities markets—or in
surance
to producers, processors
professional man, he knows his any other market place where
and distributors by making avail¬
subject backward and forward. speculation performs an economi¬ able
a broad and continuous mar¬
The
mere
acquisition, of facts, cally sound function—either un¬ ket where the
commodity may be
though, is not enough. Facts must wise or undesirable. I do say that
bought or sold at all times. The
be selected, sorted out, measured, speculation in commodities should
commercial user of a futures mar¬
one
balanced
against the other be undertaken only by the finan¬ ket confines the
profit of his op¬
until the truest picture possible cially competent, and then only
eration to the intelligent and effi¬
the
takes form.
professional guidance cient
Knowledge and the with
management of his business,
interpretation of facts will con¬ which can be offered by experts instead of the
price fluctuations
tribute to a more thorough under¬ such as yourselves.
of the commodity. Because of this
Speculation, unfortunately, is a continuous
standing and in turn provide the
market, and because
tools for better judgment.
These word in disrepute among the mis¬ standardized commodities

interna¬

the greatest benefit
from free commodity exchanges. Mr. Bache suggests broaden¬
ing and including SEATO in Secretary of State Dulles' recent
plan for utilizing NATO as a vehicle for economic betterment.
Proposes acquainting world with commodity exchanges to
can

performs

Function of

commodity

soliciting

In

involves

tional trading in future in order to derive

show how free world markets

he

Possible

baker,

exporter, he understands the
problems and background in each

or an

Senior Partner, Bache & Company

—

entirely in
Yet, in so

self-interest.

own

doing,

accounts.

and Crowth

By HAROLD L. BACHE*

Ik!'

his

discretion.

must use the utmost

commodity

speculator

speculator—acts

any

executive

commodity

the

where

feel about

we

service

who

commodity

and, of course, this is also true of

might like to

bit of how

a

men

The

profes¬ modity trading: Timing and Over¬
trading. This is an area, I believe,

that you as

me

sionals in

ikternat'l Commodity Exchanges

world

Financial Chronicle... Thursday, June 21, 1956

The Commercial and

H

(2958)

$

roughly he is the profes¬

on

sential—to the making of a

Based

on

my

experience,

own

sional trader, the floor

con¬

leads to

trader, the

in

interested

customer

long

ready financing. The

con¬

benefits directly from these

sumer

or

circumstances because
is es¬
producers,
short-term tax advantages—among
really
processors,
and
distributors are
others. It was speculation—and I thus enabled to
Just in passing, I should like to successful commodities man. That
operate on small
say
this without qualification— profit margins.
<
say that it strikes me as highly is research; not the kind which is
which was principally responsible
Exchanges throughout the world
appropriate that this conference is adept at constructing ivory castles
I in any particular commodity are
in the air, but one that can as¬ for the growth of this nation.
being held in Chicago. Here, more
have only to mention to you a linked
all
the
facts
together by modern com¬
than 100 years ago, the Board of similate
available,
which enable
Trade
of the City of Chicago— then project them a little further, gentleman named William Butler munications
price
who, some 120 years ago, opinions — influenced by every
a little more intelligently than the ..Ogden
today the largest and most impor¬
felt there was a future in Chicago known factor affecting supply and
tant commodity exchange in the other fellow.

might

even

say

*

■

terms, various
segments of

business;

our

to

explore

the

problems

posed and the

.

opportunities
offered by the

world

are

Trade is

cut of the fir¬
Harold

Bache

L.

ing line actu¬
ally doing the
work of servicing commodity
counts;
which

to
we

and how

offer

we can

to

ample

ac¬

customers

our

improve them.

We

been

adopted by

has since
older

and

My

nations

I

is

based

miration

are

ties exchanges in a wider perspec¬

believe,

many

in

personal
as

on

a

can

real

best

vehicles

are

of

for

ad¬

great

have

the

pri¬

.

business

my

about

field

was

In many ways
for

and

for the commodity itself
instantly expressed. The
publication of these prices
throughout
the world, * together

—to

pio-

was

pure

as

of

stock

an

put the work of the

in

sential
*An

to

proper

focus

as

es¬

the smooth functioning

address

by Mr. Bache before the
Commodity Conference, Co-sponsored by
the Chicago Board of Trade and Associa¬
tion
of
Grain
Commission
Merchants,

Chicago,

111., June

1956.

14,

statistical

benefit

ate

Union

information

of

commercial

inter¬

ests and the ultimate benefit of the

his

railroad,
excursion into

consumer.

the realms of

speculation that can
imagined, which steamed into

be

be

the opportunities
more plentiful in

carload

wheat.

of

have

know

You

Ogden's railroad today

the

is

world

a

ideal

Situation

situation—to

network

of

ex¬

changes acting to stabilize prices,
stimulating the flow of commodi¬

the Chi¬

as

Versus Real

Ideal
That

1848, with

Chicago in November,

profits are
cago & North Western.
commodities, and I find myself the commodities markets than in
You may also recall such fabu¬
a great leaning towards
the
securities
markets
because
lous men as Phil Armour, Potter
the commodity and of Bache &
fluctuations are greater.
And, I
Palmer,
Marshall
Field, ' Aaron
Company's business.
may also add that the possibilities
Montgomery Ward.
These were
Because of my own company's of loss may be even larger.
It is
speculators daring and imagina¬
substantial interest in the com¬ well to recognize two major pit¬
tive. Armour's short sale of pork
modities
markets, and our not falls directly traceable to a great
—short sales based on information
inconsiderable experience, it oc¬ percentage of unsuccessful comavailable to any newspaper reader

ties in world trade.

still with

exchanges in

the

provided by the exchanges and
the government, gives a true and
continuing picture of world sup¬
ply and demand for the immedi¬

,,

tive—to try to

be

with

mer-

a

Chicago

It

Railroad.

a

first

world

Galen

the

the novice and it is precisely
can

The town's

worth

dollars

million

the professional

Today Bache & here that expert guidance
ramifications most productive.

demand

value.

fool, so
Ogden set out in a horse and
buggy to peddle one-quarter of a

speculation.

no

railroad.

a

chants thought he was

.

not interested in the in¬

Obviously this is

that

out

some

later felt the town should

neers,

primarily in the profit possi¬

bilities.
for

are

turned

first of the Chicago

Ogden,
,

which the commodity ex¬

changes offer to
but

them

For

exchanges

It

estate.

Chicago land did have

:

many

interests—but

the

They

con¬

my

respect for

place.
Company has
love

commodities.

marily

through¬

the Board

on

well

as

and

market

and

of

commodities

surance

affection for

Trade

to evaluate the commodi¬

trying

originality

out the world.

solely with what I might call the
business.

American

siderations

This conference is not concerned

our

truly representative ex¬

a

of

which
other

the facilities

examine

internals of

Research,

too, is the fact that serve those of your clients who
the complex and sensitive market have no connection with the-pro¬
place provided by the Board of duction, processing or distribution

business to the
who

organized.

officially

was

Noteworthy,

commodities

men

—

But

what

Exchanges
ment

edict

is

the

>;

real

situation?

restricted by govern¬
exchanges manipu¬

—

lated by government to an extent
which destroys their usefulnesscurrency

regulations

which

im¬

pede or stop the free flow of com¬
modities—bulk buying and

selling
of the time—is a classic of in¬
commodities by government which
formed
and
imaginative specu¬
make
it impossible for the ex¬
lation.
change to carry out its function—
Today, the speculator, the riskgovernment price support policies
taker

$4,200,000
(Second installment of

an

is

-

a/ vital

•*, cog

,,in

our

which

throttle

the* work

economy,

issue not exceeding $18,510,000)

.

.

Boston and Maine Railroad

who

man

is the balance Wheel in

essential

Equipment Trust Certificates

the

to

and

free

To be

mature

annually $280,000

on

each March 1,1957

to

1971, inclusive

guaranteed unconditionally as to payment of principal and dividends by endorsement
by Boston and Maine Railroad
MATURITIES AND YIELDS.
(Accrued interest

to

in

market

4.25%

1961

4.35%

I960

4.30

1962-71

4.375

exchanges,

of /- wheat

com¬

the

In

boards

on

a

price

'to

be

fixed' basis
the

.

it is the

providing a hedge for
greater part of > the voyage.

usefulness of the Liverpool
•speculator who, in-effect, always -Wheat Futures Market for hedgr
■stands ready to buy or sell.
He ing Australian wheat is. vitiated
provides a broad, continuous and by
such
sales.
The
Winnipeg
fluid market, a market in which Wheat Market no longer functions.
violent or. erratic price fluctuat¬
^United States export sales^ of
ions are ironed out by his pur¬ f-all grains are virtually controlled
chases and sales. If the exchange r.by the. operations of the Commod¬

be added)

1957-59

maintenance

securities.

and

commodities

,

markets in

liquid

modities

(Philadelphia Plan)
To

...

-several

specific examples cited in
;
' a recent
report to the International
And, just as the activities of the Chamber of Commerce:
speculator are essential to the cre¬
"Canada and Australia both sell
ation of new wealth, so are they their wheat
solely through their

the commodity markets.

Equipment Trust, Series 1
4lA%

of* the

whether he is the en¬
exchange—export or import subtrepreneur trying
to finance a rsidies which distort
supply and
new invention, the man who uses
demand. .4
•
-/
,\ )
his capital to drill for oil, of the
I should like to mention to you

:

any

The

commodity were ity Credit Corporation* the export
commercial in¬ subsidies being adjusted from day
that
market
pri- to day.
* :
■
:
*
■

limited only to the
terests* using

as an insurance device, it V "French. wheat can onlv enter
would be a highly inefficient mar¬ the world export market through
ket—in fact, it is my opinion that a government sponsored body, and

;marily

.

Issuance and sale of these Certificates are subject to authorization by the Interstate Commerce Commission.
The

market

the

Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such State.

In

-

by

FREEMAN

& COMPANY

&

CO.

,

GREGORY &, SONS

BAXTER, WILLIAMS & CO.
'

"

,

IRA HAUPT & CO.

•largest
hedges,
-over

„in
THE ILLINOIS COMPANY

WM. E. POLLOCK & CO.,

INC.

SHEARSON, HAMMILL&CO.

INCORPORATED

McMASTER HUTCHINSON&.CO.

MULLANEY, WELLS &COMPANY

F.S.YANTIS&CO.
INCORPORATED

in

by virtue of a government subsidy.
*

operators

•

are

/'The German
government's
practice of issuing import licenses
at intervals and the imposition of

the

the

market

futures

element

to

no

sell

mercial

■s*

varying
import
duties, remove
probably the mos't of the comnpercial reality
commercial . buyers
of from transactions by importers
spread
their
purchases who would otherwise require
year. Supply and demand hedging facilities.
are

would

get

sadly out of balance were it not
for the presence of a speculative
are

June 20, 1956




elevator
who

Millers,
R. W. PRESSPRICH

only

concentrated in the special months.

HALSEY, STUART & CO. INC.
MERLE-SMITH

exist

grains, for example, hedging

sales

DICK A

would

the most limited way. -

such

ready to buy when there
buyers, ready

commercial
when

there

sellers.

are

no

com¬

"In the

grain trade the effect of

support schemes is felt indirectly
in
many
ways.
In the United
States, they are responsible for
placing the wheat futures market

Continued

on

page

15

NEW ISSUE

Interest

on

the Bonds is exempt,
...

.

in the opinion of Bond Counsel to the District and of Bond Counsel to the Underwriters,from all present Federal Income Taxes
under existing laws, regulations and
rulings.

c.

]

:

■

$166,000,000
Public

Utility District No. 2 of Grant County,Washington

Columbia River-Priest

Rapids Hydro-Electrie Production System

3%% Revenue Bonds, Series of 1956
CHIEF

JOSEPH
DAM

GRANDI COULEE

These Bonds

being issued for the construction of the Priest Rapids Hydro-Electric

are

Production

System

1

SEATTLE

DAM

SPOKANE

>

the Columbia River by Public Utility District No. 2 of Grant

on

:TACOMA

County, Washington. Priest Rapids,

ROCK

of the largest hydro-electric developments
PRIEST

OLYMPIA

be financed with

to

one

capital supplied entirely by private investors, will have rated

\

ISLAND

DAM

RAPIDS

DAM

■■

capacity of 630,800 kw and peaking capability of about 678,000 kw.

EXISTING

tZ3

PACIFIC

UNDER

DAMS

CONSTRUCTION

OCEAN

The District has entered into Power Sales
-

with Pacific Power &

Contracts, expiring

on

DALLES

October 31,2005,

DAM

PORTLAI

Light Company, Portland General Electric Company, City of

McNARY

DAM

BONNEVILLE DAM

Seattle, City of Tacoma, Puget Sound Power & Light Company, Washington Water
Power

Company, Public Utility District No. 1 of Cowlitz County, Public Utility

District No. 1 of Kittitas

Dated

County, Washington, and' the Cities of Eugene, Forest

63.5% of all

power

and

contracts

energy

produced

115% of its proportionate share of the
retirement of

at

the Priest Rapids hydro-electric plant.

each of the above Purchasers will be

principal

on

amounts

obligated

to pay

monthly

required for interest, the scheduled

the Bonds, and its share of the other

the

Principal and semi-annual interest, May 1 and November 1 of each year, will
payable at the option of the holder in New York, New York, Chicago, Illinois
Seattle, Washington. Definitive Bonds will be issued in coupon form in the
denomination of $1,000, registerable as to principal only, and in
fully registered
form in the denominations of $1,000, $50,000 or
multiples of $5,000 in excess of
$50,000. Coupon and fully registered Bonds will be interchangeable.
be

of producing

costs

Due November 1, 2005

4

at

option of the District on at least thirty
days' published notice (1) in whole at any time on and after May 1,1966 at 103%
of the
principal amount to and including April 30, 1971 and thereafter at the
prices set forth in the Official Statement; or (2) in part by lot on any interest date
on and after
May 1,1961 from (a) amounts credited to the Sinking Fund Account
and (b) the excess monies in the Reserve Account at the
principal amount thereof
plus accrued interest in each case to the redemption date.

Grove, McMinnville, and Milton-Freewater, Oregon, for the sale of approximately

Under these

May \, 1956

The Bonds will be redeemable

or

and

delivering

respect to

power

and

energy.

The District will have

a

similar obligation with

the 36.5% of the power and energy which it will retain for its own

use or

sale.

Price 99% and Accrued Interest
These Bonds will

constitute, in the opinions of Messrs. Wood, King 6? Dawson and Messrs. Chapman and Cutler, Bond Counsel to the District and the Underwriters, respectively, valid and
legally binding obligations of Public Utility District No. Z of Grant County, Washington, payable solely from the revenues of the Columbia River-Priest Rapids Hydro-Electric
Production System of the District. Said Counsel will also cover the
validity of the principal Power Sales Contracts in said opinions or by separate1 opinion or opinions.

These Bonds

are

copies of which

offered when, as and if issued and received by us and subject to unqualified approval of legality as above stated. The offering is made only by means of the Official Statement,
be obtained in any State, in which this announcement is circulated, from only such of the undersigned and other dealers as may lawfully offer these securities in such State.

may

HALSEY, STUART &. CO. Inc.

JOHN

NUVEEN

&. CO.

(INCORPORATED)

KUHN, LOEB & CO.

SMITH, BARNEY & CO.

V

(

J. VAN

B.

INGEN

& CO.

BLYTH

INC.

'

' LEHMAN

HARRIMAN

BROTHERS

RIPLEY L CO.

&.

CO., INC.

KIDDER, PEABODY &. CO.

.

INCORPORATED

A. C. ALLYN

AND COMPANY

DREXEL & CO.

GLORE, FORGAN & CO.

INCORPORATED

MERRILL

LYNCH, PIERCE, FENNER &, BEANE

PHELPS, FENN A CO.

WHITE, WELD &, CO.

DEAN WITTER A CO.

UNION SECURITIES CORPORATION

SALOMON BROS. &, HUTZLER

BEAR, STEARNS &. CO.

BLAIR &. CO.

EQUITABLE SECURITIES CORPORATION

ALEX. BROWN &. SONS

IRA HAUPT L CO.

INCORPORATED

HEMPHILL, NOYES &. CO.

HORNBLOWER &. WEEKS

PAINE, WEBBER, JACKSON &. CURTIS
ALLEN

COMPANY

R. W.

CARL

PRESSPRICH

&. CO.

AMERICAN SECURITIES CORPORATION

M.

LOEB, RHOADES &. CO.

SHIELDS & COMPANY

BACHE &, CO.

A.

G.

F. S. MOSELEY &. CO.
PACIFIC NORTHWEST COMPANY

BECKER &. CO.

BRAUN, BOSWORTH &. CO.

INCOPPOPATID

CENTRAL REPUBLIC COMPANY

COFFIN

(INCORPORATKO)

ESTABROOK &, CO.

&

BURR

DICK &

MERLE-SMITH

R. S.

INCORPORATED

DICKSON

L

INCORPORATED

COMPANY

FRANCIS I. duPONT &. CO.

INCORPORATED

FIRST OF MICHIGAN CORPORATION

HALLGARTEN & CO.

THE ILLINOIS COMPANY

LEE HIGGINSON CORPORATION

INCORPORATED

W.

H.

MORTON & CO.

REYNOLDS &. CO.

L. F.

ROTHSCHILD & CO.

SCHOELLKOPF, HUTTON &. POMEROY, INC.

INCORPORATED

McLEAN

&. COMPANY

GRANDE &.

CO.

WM.

P.

HARPER

&.

SON

&. CO.

BRAMHALL &, STEIN

INCORPORATED

June 21, 1956.




HAROLD

H.

HUSTON

&. CO.

-

BADGLEY, FREDERICK, ROGERS &. MORFORD, INC.

FIRST WASHINGTON

t

'

'

CORPORATION

j

MURPHEY FAVRE, INC.

Financial Chronicle... Thursday, June 21, 1956

The Commercial and
8

(2960)

Co.

L. A. Darling

Late data

—

Moreland & Co., Penobscot

—

Building, Detroit 26, Mich.

Dealer-Broker Investment

120

Electric

Recommendations & Literature
send interested

to

82

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

Letter

York

New

to

Ilow

of

Out

Fortune

a

Wall

Streets-Explaining all

La

South

209

—$3.00.

J.

:

Insurance Stock Analyzer

—

Comparative tabulation

Incorporated, 44 Wall Street, New York 5,

Co.

Japanese Stocks

Current information

—

—

Bulletin

—

N. Y.

New York 4, N.

Y.

York
Tin

Its

and

—

Quarterly journal

institute,

Tin. Research

reserves

and

>

York.

vertible Bonds with two-way

Office

Paramount Theatres, Inc.—Memoran¬

metal

Also available is

American

Hospital

National

& Co.,

Standard

Marvin

Memorandum

—

•

Shearson, Ham-

14 Wall Street, New York 5, N. Y.
Gas

Western

Arkansas

Co.—Memorandum—J.

Cotton Exchange Building, Galveston, Tex.
—

Company—Analysis—A.

of Nova Scotia—Review—Burns Bros. &

ited,

44

in the

Oil

King Street, West, Toronto
bulletin is

same

G.

Becker

—

Memorandum

Study

—

Model, Roland

—

;

Investing

York

the Guided

Missile field

•

June 29, 1956

Sept. 1-21,

Company, Lim¬

Cohen, 52 Wall Street, New York 5, N. Y.
New

York

;

Harkisondass Lukhmidass, 5, Haman

—

Stanford

Street, Bombay, India. Also in the same bulletin are data on
Digvijay Cement and Nizam Sugar.
Oil—Analysis—Davidson

American

Calif,

&

Company,

100

47

cedure

The

Ltd.—Bulletin—Bregman, Cummings & Co.,

N.

Analysis

—

—

—

and

Hotel

the

--

(Rockford, 111.)

26th

Press

Ding" at the Rockford Country

-

'

Club.

$1.50.

Louis H.

Ronald

East

Broadway, New York 5, N. Y.

Citizens Utilities Company

Stanford,

University,

(paper)

Rappaport

Street, New York 10,

Inc., 70 Pine Street, New York 5, N. Y.

Its

Uses

Firms

of

Stock

Exchange

meeting of Board of Gov¬

ernors.

Oct.

24-27,

1956

(Palm

i Spring*

Calif.)

Quarterly

—

-

..^

(Detroit, Mich.)

Association

G. A. Saxton & Co.,
and

-

Oct. 4-6, 1956

—

Company, 15

Y.—cloth—$15.

Tin

; ;

.

SEC Accounting Practice and Pro¬

King Street, West, Kitchener, Ont., Canada.
Canadian Prospect

at

Rockford Securities Dealers As¬

Indian Aluminium,
British

meeting

Sept 14, 1956

5, N. Y.

Bank

of

Convention

sociation seventh annual "Fling-

Data

—

(Minneapolis,

Association

Radisson.

.

Developments.

Bombay Dyeing

1956

34th

annual

McKinnon, 11 Wall Street,

United Fruit—Report—Thomson &

Also

summer

Minn.)
National

H. E. Herrman &

—

Toledo

of

puting at Inverness Club.

Women

Report

(Toledo, Ohio)

Club

Bond

with lists of common stocks for

—

outing
at
the
Hollow, Country Club,

Scarborough, N. Y.

Corp.,

income, growth and trading, etc.

&

.

annual

Sleepy

Indiana—Report—Harris, Upham & Co., 120

of

'

(New York City)
Investment Association of New

.

Corp.—Report—General

Group of Investment

June 29, 1956

Street, New York 5, N. Y.
Oil

(Santa Barbara,

1956

fifth annual conference.

Herzfeld & Stern,
::'V V//

—

New York 4, N. Y.

Racing

24-26,

J- Bankers Association of America

120 Broadway, New York 5, N. Y.

Superior Tool & Die Company

Ont., Canada.

1,

Co.

Petroleum

Club

Calif.)
California

-

discussion of Canadian Mining and

a

June

Broadway, New York ;5, N. Y. Also available are reports
on Sears, Roebuck & Co., Polaroid, and Minerals and Chemicals.
In the June "Pocket Guide" are data on companies
in

-

Co., Incorporated, 60 Broadway, New York 4, N. Y.
Bank

,

Also available are data on Federated
Fibreboard Paper Products. ;

Y.

5j; N.

30 Broad Street,

80 Wall

Ill Broadway, New York 6, N. Y.

Anglo Canadian Telephone

of Chicago
day at Nordic
Hills Country Club.

Post

10

(Chicago, Hi)

Traders

30th annual field

Mass.

Manufacturing Company

Southland

Insurance

Moreland & Co.,

mill

.

Trading

Co.—Analysis—Unlisted

Supply

Dept., Ira Haupt & Co.,
American

memorandum on Kenna-

a

York

Dutch

Singer

'

Inc.

June 23, 1956
Bond

Co.,

&

Club, Con¬
Station, New Jersey

vent

Manufacturing—Data—Bache & Co., 36 Wall Street,

& Stone,

dum—Moore, Leonard & Lynch, Union Trust Building, Pitts¬

burgh 19, Pa.

Morris County Golf

H. Hentz & Co., 60

views—Lerner

Co.—New

Cement

(New York City)

Municipal Bond Women's Club
of New York annual outing at

115 Broad¬

—

—

outing at
Club, West-

field, N. J.

Department Stores and
Royal

American Broadcasting

Memorandum

—

Square, Boston 9,

Rockwell
New

Co.

annual

June 22, 1956

Stancan Uranium Corp.

on

(New York City)

Echo Lake Country

-'J.
Circular

—

County Golf Club, Con¬
Station, N. J.

vent

Street, New York 6. N. Y.

Beaver

Riverside

potentials.

circular

a

Pfizer &

Charles

companies—in current issue of "Gleanings"
du Pont & Co., 1 Wall Street, New York 5,
Also in the same issue is a selection of Con¬

I.

is

available

natural gas

Morris

"Syndicats"

Singer, Bean &
Inc., 40 Exchange Place, New York 5, N. Y. Also
Corp.

Uranium Mines

(New York City)

Municipal Bond Women's Club
of New York annual outing at

-

North's News Letter, 414
Calif—Three months' trial

New York 6, N. Y.

way,

Pacific

of major

—Francis
New

of crude oil

Wealth—Analysis

—

(Brookhaven).

June 22, 1956

Supply—Report—J. R. Williston & Co.,

National

of the Tin Research
Inc., 492 West Sixth

Avenue, Columbus 1, Ohio —available on request.
Underground

Corp.

Uranium

Street,

Mackie

Uses

—

Fuller & Co., 39 Broad-

:

.

San Francisco 2,
subscription $15.

4, N. Y.

Institute

Club

June 22, 1956

Inc.—Memorandum—Shields & Company,
Street) New York 5, N. Y.

Continent

Mason

market performance over a 13-year period —
Quotation Bureau, Inc.', 46 Front Street, New

and

National

ing at the Capital City Country

Industries,

Wall

Mid

showing an up-to-date com¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield

New York 6, N. Y.

way,

McLean
44

Over-the-Counter Index—Folder

ciation 20th annual summer out¬

Co.—Memorandum—Cruttenden & Co.,
Street, Chicago 4, 111.

Leetronics Inc.—Memorandum—S. D.

Yamaichi Securities

Hirsch & Co., 25 Broad Street,

—

Georgia Security Dealers Asso¬

Building, Charlotte, N. C. Also available is a memo- <
randum on Life Insurance Co.; of Virginia.

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

co.,

Market Outlook

&

White

at

1956 (Atlanta, Ga.)

June 22,

Wilder

Blair &

—

Ivey

B.

Salle

guests,
Hotel;

the

21

Bear Yacht Club.

Company—Analysis—R. S. Dickson & Co., Inc.,

'

Nicollet

the

at

June

picnic

Broadway,

Helicopter Air Service

20

June

King, Libaire, Stout

out-of-town

for

party

& Co., Inc.,

Inc.—Analysis—Graham, Ross

Bank—Analysis—New York Hanseatic Corporation,
New York 5, N. Y. Also available is an
analysis of the current bond market.
120

bulletin of suggestions
Lempenau—The Income Builder, River Edge, N. J.

A.

nual

Street, New York 5, N. Y.

Beaver

City Bond Club 35th an¬
picnic and outing cocktail

Twin

Paine, Webber,

—

Co., 50 Broadway, New York 4, N. Y.

&

phases of market operations—plus a
—J.

Analysis

—

Ilanover

—

5, N. Y.

Take

St. Paul)

Gulf Cities Gas Corp.—Analysis—Eisele &

thirtieth Street, N. W., Washington 7, D. C.
Burnham and Company, 15 Broad Street,

Dept. C., 1033
Foreign

Company

(Minneapolis-

1956

20-21,

June

Curtis, 25 Broad Street, New York 4, N. Y.

Products,

Glamur

1, containing comments on

(No. 18) dated June

Letter

Field

Investment

In

Also available is a report on Shumway

5, N. Y.

Telephone

General

EVENTS

Mining Corporation.

Uranium

Jackson &

Atomic

COMING

Corporation—Report—Cohu & Co., 1 Wall Street,

York

New

will be pleased
parties the following literature:

■

-

Co.,

&

Company—Study—Newborg
Street, New York 4, N. Y.

General Gas

firms mentioned

understood that the

It is

;

. ^

Battery

Storage

Eroad

25

*

*

Company—Analysis—Laird, Bissell & Meeds,
Broadway, New York 5, N. Y.
Rubber

Dayton

Journal of the Tin Research In¬

National Security Traders Asso¬

stitute—Tin

ciation

Inc.,

Dealers

We believe you and your clients

.

continue to

will

profit in:

South

cific

question of it!

—

America,

industry which "has

whispered

in

the

grown

President's

figures to dwarf this

sum

in 15
to

ear

years
a

$14

from

billion

Nine

program"

How

to

Wall

and dominate the future.

&

Take

case

—

Pa¬
S,

C.

;

a

N. J.—$3..

Fortune

Out

Western
W.

Vitro Corp.
•

I

Beryllium Corp.;
•

Black Sivalls &
.

•

V

■

at

Europe

Crossroads—

Wenthold—Buyten & Schip-

of

Firms

Stock

of

*

ernors.

^Hollywood

Investment Bankers Association
of
at

America
the

LOUISVILLE,

Stocks As Invest¬

convention

annual

HoteL

Hollywood Beach

(Dallas, Tex.)

April 21-23, 1957

Group

Investment
annual
Statler Hilton

of

Association

meeting

the

at

Hotel.

(Special to The Financial Chronicle)

...

Exchange

meeting of Board of Gov¬

Bankers

With Berwyn T. Moore

'

,

i

-

••

Ky,—Frederick

G. Irtz has been added to the staff
ments—James

—Graduate

T.

S.

School

Porterfield
of

Business,

of

Berwyn T. Moore

Marion

E.

& Co., Inc.,

Established

1856

Taylor Building.

H. Hentz & Co.

* *
Members

.

Baird Associates

•

<

•

-----

.

Foote Mineral Co.
•

DEPENDABLE MARKETS

•

-■

Sumner Job Wanted

Grinnell Corp.

Young
•

High

Voltage

Engineering

firm

York

Security

Dealers

Trinity Place
.

2-2400




-

now

my

Association

•

-

1

-

New

York

York

New

Cotton

.high school senior,

a

Chicago

to

for

in

or

to

make

employer.'

summer
near

with

New

apply jmyself
myself

a

Orleans
and

a

Financial

New York 7,

0EMPSEY-TE6ELER fr CD.

-

Exchange
Exchange

Exchange

Exchange,
of

Board

Inc.
Trade

Cotton Exchange

exchanges

other

York

and

credit

N.~ Y.

Box S 614, Commercial

Cotton

Exchange Bldg.

NEW YORK 4, N. Y. :

to

Chicago

-

•

Detroit

Miami Beach

6, N. Y.

Teletypes NY 1-376-377-378

job

bank

Willing

endeavor

&

74

like
or

City.

TROSTER, SINGER & CO.
HAnover

Stock

American

>New

would

New

man,

Electronic Associates
•

Members

Stock

York

New

Commodity

Tracerlab Inc.

Chronicle, 25 Park Place,

at

14, 1956 (New York City)

Texas

A. Lempenau—

Bryson

Lithium Corp.

Nov.

D.

perheyn, Amsterdam, The Neth¬
erlands (paper).

Builder, River Edge,
v:';> :u

Insurance

Contracts—Kenneth

Herrick—Richard

Convention

Irwin," Nov. 25-30, 1956
Inc., Homewood, 111. (cloth) $4.
Beach, Fla.)

-

Life
•

Annual

the El Mirador Hotel.

Association

Insurance

W.

Asia,

the

and
a

on

Total Disability Provisions in Life

Company, Maple-

Street—J.

The Income

Among Many Others, We Trade and Position:

in

Copies

Ohio.

1,

Avenue,

request.

wood, N. J. $9.95 per set.

equation

an

Europe,

Australia
boxed

Hammond
The

—

33 inches, in¬

the
World,
United
States, Canada, North America,

Africa,
a

x

cluding

Atomic Stocks
Hardly

Library

Map

50 inches

maps

Institute,

Sixth

West

492

Columbus
Hammond's

Research

Hollywood, Fla.

N. Y.

Geneva,
.

•

•

• j

Pittsburgh

Coral Gables

Beverly Hills, CaL

Switzerland;

* :" Amsterdam, Holland *

• »

.'

•

Volume 183

Number 5544

The Commercial and Financial Chronicle

...

(2961)

plant

Sharing the Chemical Age

acid,
tics)
of

Some reflections

■

.Everywhere y<m hear that we

live in either the Atomic Age, or
the
our

moniker— it's

vintage!

won-

so

derful, if they are so resilient, and
Chemical Age. rebounding, can't it well be that
Since trinitro- their equities, especially now, sell
toluene a coal for
more than
they are really
tar
chemical, worth?
Aren't they overpriced?
became the That all depends on which chemimajor explo- cals you're talking about. If, for
sive of World example,
you're
talking
about
the

really

ab¬

was

further diversi¬
enterprise and adding

32c

a

For

share

ACY

to

com¬

1956, earnings of $4.75

Lre Possible, ample coverage for
thfi

^eSent

dividends

are

earner

an

the

mon.

Vision js far more important than

chemical companies

be

Formica Corp.

fying

Which brings us down to even
such more practical considerations. If

by

misnamed

is

age

drain for most

a

will

about

of Automation. Actually

Age

o

was

year,

and 2,624,560

$2.50 dividend.

ground

Cash

customarily have been

slightTw'above"
72

of

60%

ACY

tends

to

repel
repel

P

'

bears

shares. The

common

President, Mr. J. A. Sargent, has
predicted a gross of $150 million
by
Diamond has the ring
of

good investment stock, with

a

Monsanto

fourth

ranks

J

Q4Q

nno*

nnH

9-«»'

•

"actdrer

become a large earner,
number of uses

on

npt

per share net

a

d

Ul

uses

moving in

now
now

excluexCiU-

sively served

?

of

sac

cha ri

»3S»detergents,
out "into
resins,
~

charp

npr

for
onlysales, and, so far,
the profit angle has been disappointing due to production difflculties and high depreciation
charges. If and when costs are

of

amazmg light ,weight metal can

among the big diversified chemical companies, with 1955 sales of
(Cr.oo

accounts

10%

^ec^c.e(J> jtis believed that this

size

in

magnesium

about

substantial growth factor.

a

sorbed this year,

the understressed importance of chemicals

on

modern

our

which

last

this year.

world, and the undervaluation of certain chem¬
ical shares in our modern air conditioned brokerage offices.
in

(producing

La.

acetylene, hydrocyanic
and acrylonitrile for plas-

*ir.o

By IRA U. COBLEIGH

Enterprise Economist

Fortier,

at

ammonia,

9

v.v»v

has

it

n

by aluminum. In
any event a bearish long range

view of Dow has been chronically

and" ""rewarding. ,Dow has been^algrowth stock

plastics

wav<?

agricultural

growth

a

stnric

and

it

.

chemicals and phosphates. Last
s"
,
.
Diamond Alkali Company turnedyear Lion Oil Corp. was acquired,
We'd have like to have covered
a v.^ry fine performance for expanding Monsanto operations a *ew. more issues today, but time
1955 witbtotal sales of $110 mil- int0 nitrogenous chemicals and permitted only singling out items
I10*1* UP 18 fr0m 1954s"are integrated oil operations. MTC is that seemed to represent particun.et Sain waa ey^n
a*so at work with National Re- larly solid values at the moment,
^ve—-from $2.14 to $3.38, up 58%. search Corp. developing a new If you want a panorama, then
Traditional in the chlorine and method of titanium production.
l°°k at Chemical Fund, an invest'

<

■

.

alkali

lines

(caustic

and

soda

Monsanto common presently ™ent trust that has done very well
agricultural chemicals, such as
:
now
Diamond
has
by specializing in this industry.
quoted on NYSE at 42 paying
have, in truth, Virginia-Carolina,
or
American s°da ash)
The above described equities are,
been living in Agricultural, even though they sell achieved a considerable diversifi- ^ is selling at 21 times earnings
all found in
a
c h e m i cal
near, the yea'r's lows, they may not
finding
»
SOTd at 27 I believe,Chemical Fundthe portfolio of
and, of
on
an
age Ourmyrbe cheap since the market they; ^eir way into detergents, plastics, Umes net
Thus un an
lad
retailed serve is a depressed one, and the
(pourse, in lists of dozens of other
hffa 51? intent historical basis, and compared to major institutional investors.
products
are
emergence of dynamic recovery cais, etc. i,-nas a_oi /0 interest other —*
major chemicals, it should
wranneH
in *n farm earning power may re- in
Diamond Black , Leaf Co., not be regarded as presently over¬ Sharing in the chemicals has
War

I,

we

W

"ggft*»mtc

tfjM.eFcap?t

U.

Ira

Cobleigh

?

i-

celloDhane

the graceful gams of our girls are
shrouded in nylon; Dacron drapes
auiuuueu
III iryiuii,
Udauii uidpcs

the

dressed

well

provide
to

cases

cruisers

and

at

sea;

synthetic

rubber

kill

by

crop

and

cure

rines

and

disease

fuels
for

depend

and

and

w*e

alloy
by

start

we

of

our

stor-

high octane
chemical process
our

on

production;

and

rockets

driven

are

while

So

metals

action

origin

our

boron.

chlo-

processes"

their

by phar¬

by

other

and

batteries; all

age

we

purify

we

chemical

by

cars

pests

chemicals;

isotdpes*

steel

our

chemical

food

marauding

-

arrest

maceuticals;

1-

wash

we

grow

we

agricultural

on

......

_

tires;

detergents;

and

drive

we

1-

—

with

plastics

man;

everything from cigaret
fiber glass coupes on land,

the

atom

by
H-

or

quire patience. On the other side

makers of pesticides and herbi100%

priced; and it

may

be undervalued.

proved

an

opule*t pastime.

such more diversified companies "^esi; and will acquire
Dow Chemical common sells at
Earnings here
Two With Dean Witter
—
as.
American Cyanamid,» Dow,' wltnin 4 * years------bf)vp nnt vpf. mn+priali7pfq hut thp
70V2, within a point of the year's
(Special to The Financial Chronicle)
Diamond Alkali or Monsanto may »ave
"ange oXok s excellent high, despite the downspins elseeven be undervalued, although ^g jange outlook | excellent
« •
'J stock Exchange list. SAN FRANCISCO, Calif—Robtheir price decline has been less
new products for
" figures, Dow has consistently ert M. Slater and Alan E. Winterpronounced. Let's look briskly into ana m ere.
boasted superior management, re- botham are now with Dean Witter
thpcc
fnnr
these
four
as
time
today may L,ie 1ULUie.
a.irohip
markable creative research, and & C°., 45 Montgomery Street,
Diamond
has been
a
allow.
one of the most rapid sales growths
members of the New York and

are

dividend payer with an unbroken
record back to 1932. Since 1946,
cash payout has averaged 55% of
net. There was a 3% stock divi-

made, they'll look a lot like ACY.
Here's a company, big in pharmaceuticals (Lederle Division
contributes 25% of gross) and a
major in industrial and organic

dend last December; and there
could be a similar extra this year,
DIA, at 55, sells at about 16 times
earnings, quite a low ratio for a
chemical of its stature. Convert-

Certainly

investor
cate

a

can

major blunder

make

American

better

that its $52

of

any

depreWhen

companies

Important

consideration

to

Cyanamid.

chemical

chemicals.

is

ACY

in
is

current
the

fact

million petrochemical

ible

preferred

4.40%

called

in

this

year

issue

in

,

-

newal

industry.

It

<tr,nr.

$
and

has

+

P\a t

expansion in the post¬

decade.

San

Francisco

Mr.

devoted

1

ml

Slater

ported

earnings

common

sell

earnings,

on

was

in debt,

Stock

was

Exchanges.
formerly with

Mitchum, Jones & Templeton.

Its fiscal year

(which
ended May 31, 1956) is the best
in history; and while actual re¬
war

leaving capi-

talization at $35 million

the

.

will

make

around

"cash flow"
the ratio drops to 11.5.
a

the

times

27

Joins E. M.

BracHfey

(Special to The Financial Chronicle)

NEW

HAVEN,

E. Nichols is

now

Conn.—Donald
connected with

basis
Edward

People think of Dow and magnesium in the same breath. Yet

215

the

M.

Church

Bradley &
Street,

Boston Stock

Exchange.

bomb

may, in due course, blow
all to bits, it's the chemical in¬

us

dustry

that,

from

freon

in

our

refrigerators to chlorine, cosmetics
and

cortisone,

sures

expands

continued

our

and

This announcement is neither

in¬

an

The

health¬

more

offer to sell

nor a

solicitation of

an

offer to buy any of these Bonds.

offer is made only by the Prospectus.

ful and gracious existence.
•

So

don't

ignore chemicals from
sheltered position as either

your
a

human

You

being,

or

afford

to.

can't

investor.

an

For,

$25,000,000

almost

equal in importance to the impact
of

chemicals

importance
dustry in
system.

on

of

is the

chemical

the

in¬

enterprise economic

our

This

number »of

lives,

our

impact is felt in
Total

ways.

sales

a

Commonwealth of Australia

of

chemicals for 1956 will exceed $25
billion.

jn
in

New

this

plant

expenditures

industry
1956, exceed $1.4 billion.
glamorous

million

will

be

$300

earmarked

for

chemical research, and something
above

400

introduced.

in

products

new

And

all

Fifteen Year 4lh% Bonds

will,

will

this,

Dated June

Due June 15, 1971

15, 1950

be

Interest

mind

payable December 15 and June 15 in New York City

of dipping motor
and farm implement sales, declin¬

you,

a

year

ing house building, all-time highs
in loans, Russian
threats, Japa¬
and German

nese

industrial

com¬

Price 98*/2% and Accrued Interest

petition, and the uncertainties of
a

be

Presidential

must

stride forward

frontiers

earning
other
so

It

sturdy industry that will and

a

can

election.

pf

thus, into
research, sales
when

power,
of

areas

our

so

new

and

many

economy

Copies of the Prospectus

are

Getting

down

to

be obtained from only such of the undersigned as may legally
compliance with the securities laws of the respective States.

may

these Bonds in

fluttery and hesitant. Well, it is.

offer

specific

more

market

that
can

considerations, why is it
major chemical enterprises

resist

major

with

less

than

their

and

havent

answer

downspins; de¬
snap
back* faster

industrial
time

to that

market

for

capsuled

imagination,

complete

it

with

we

reply

had to give

it

would

research,

in lab and'board

effective

room,

and

You just don't progress in today's
company

by

seniority.




Incorporated.

BLYTH & CO.,

GOLDMAN, SACHS & CO.

DOMINION SECURITIES CORPORATION

INC.

1

LEHMAN BROTHERS

MERRILL LYNCH, PIERCE,

SMITH, BARNEY & CO.
June 20, 1956.

v

LAZARD FRERES & CO.

KIDDER, PEABODY & CO.

HALLGARTEN & CO.

be:

freedom from slavery to tradition.

chemical

HARRIMAN RIPLEY & CO.

KUHN, LOEB & CO.

THE FIRST BOSTON CORPORATION

greater

merchandising, corralling of brain
power

CO.

brethren?
a

question (the stock

answers

eloquence) but if
a

MORGAN STANLEY

resolution,

economic

cline

We

such

/

UNION SECURITIES CORPORATION

Co., Inc.,

members

SALOMON BROS. & HUTZLER

WHITE, WELD & CO.

of

v

;

10

The Commercial and Financial Chronicle

(2962)

The Outlook for Business

at

as:

.

and in catching these

,

it

when

,

too ; and

not. yet

is

is a c o n s tan t search the- / principle
of
rewards
and
economists .for ther all- penalties if it is to maintain its
The low esteem in which econo¬ conquering
"gimmick,"
the
in- dynamic Character; X —
■V.
mists are currently held as fore¬ fallible yardstick, the free ticket
For this reason, it has
been
casters by many businessmen is ; to a life of coupon-clipping leisure obvious. for several years that a
actually undeserved. Their post¬ in Florida. Tnat attitude makes number of vulnerabilities /were

T

Forecasting Tools

From

among

,

shorter-term

a

-

.

advice, declares country's long-range outlook is

record is far better than their

war

rapid increase in private debt, continued inven¬

Believes third quarter will
prove disappointing, but that thereafter pickrup in auto and
related industries, textile cyclical upswing, and elimination of
political uncertainties promise, moderate rebound in fourth
quarter. Says importance of monetary policy is exaggerated.

does, not

help him to make some money or,
more
frequently,- to avoid some

bow to change his mind, is

worth

not

who

economist

An

his

Going

pay.

even

loss.

a

; -

•

.VTT:'

-

'

economists

have

evaluation

were

inclined to swing too rapidly

business prospects in recent years.
On the whole,

their

•

"bias'':

has been
o n

from

the

to

recent past is

point.

.-

Thus it

can

other.
case

a

'

;■■■•:

~

as

surface

of

respon¬

tiousside than

sibility. This is NOT to tell busi-

that

nessmea

the

on

bullish'

consultant,

dangerous

a

are

be

all

leftfield

in

out

who

like

by

hosiery three,
*

-

business.

or

nr'ce

be

soon

postwar "surprise

that

these

has'

vulnerabilities,

despite their cumulative impact,

to nothingworse
than two relatively brief - mvenrecepions and several periods,

il0rCS*e<u

of

out

hope for

more

The-big

of'^us?r ^iavei

finished
six months aheaa,

There is

in general

forecaster

the

;

been

;

or even

would

economists

toy us
them-?

ofT the

task

Iv to foretell

silk, nylon

rayon,

that he will make you

economists

some

the

as

"over-stay",a market either on the
upside or on the downside. There
are

If

were -on

residential building.

-

*

»The Basic Issue

the bearish side of the scale,

on

be stated with con-\ chances

cessfully discharged their

c a u-

either

view

treme

-,-'V is

that, for the post-war era
whole, economists have suc¬

a

*

in v or

fidence

more

the

extreme

one

very

the

under

this year's sharp drop in automo-T
bile production and the decline in

T

II

step further, an economist who is
frequently found holding an ex¬

the times when businessmen

The

developing

'*

know

were

their

worst

own

•

.

undetermined timing and severity.

right and
been wrong in
of
short-range

their

economists

as anyone can

who goes to the

tory increase, wage rises, temporary saturation of consumer
demand for durables, which will entail a corrective period of

Economists have been

-

find out; enemies: too often they promise the boom. Some of the chief ones
trouble of check¬ more than they can deliver if they were: the .rapid increase in priing such forecasts against the re¬ are trying to sell more than their vate indebtedness;. the continued "
sults. '' TV'■ l-V"
-ft;'-vp'pc own best, but not infallible judg- increase in inventories; the rapid *
• = •
."
!;
/!<
increase
in
Nevertheless, in working with! irient.
wages, -.once
wage
economists and in order to benefit
Actually, they can seldom hope boosts exceeded productivity'
by such association, it is necessary • to contribute more than a thought gains; the temporary saturation of
to know how economists.work and : or two which previously may have consumer
demand - for
durable
what their main tools are. y,
escaped a client and which may-goods,-which finally resulted'in
reputation,

viewpoint, cites vulnerabilities ^developing under the boom's

surface,

.

'

Editor-Economist, stressing need for flexibility and moderation

the only doubt being by how much.

.

time

a

There

By H. E. LUEDICKE*
Editor, "The Journal of Commerce"

up,

could

soon be sent, out to pasture
accompany any, protracted boom
high* school students with a in a free enterprise system such
late to do something about them. ./ slide rule could replace them. i?,;;!. as outs. Our system must rest on

trend

in economic

Thursday, June 21, 1956

forecasting, particu-

,?as

adjustments.

,

been due to some basic
ec0JJ®mic- stmcturf
does it merely reflect the
thus far th^ vulnerabili-•
ties still have not caught up with
underlying strength of the
.

V1 °Vr

larly when it comes to long-range.
talked about;
forecasting. If one thing is sure, it businesses but rather to serve as a< and, if they happen to be right, it
majority of
is that this country's long-range
the business
constant reminder that business¬ makes them highly successful
outlook. is
up.
The question is
Ir ate r nity.
men
are
not operating in a vac-, for a while. The trouble is that
merely how much' up.. When it ec2T0I?[iy'
Boldness
lium
but have to conduct their- such popularity is short-lived and
comes
to
the immediate future,
/ That —and that alone
is thei
rather
than
affairs against the backdrop of the- usually ends up with a big head-"
let's say the
next three or six eco,*pmic key issue today. Unless;
caution
has
changes in the over-all economy.! ache for the forecaster as well as
months, things are more difficult onf ;ls, convinced that we have
r
In other words, it is the econo¬ the client.
paid off in
because the target date is
near' ®n^red a
new era in which the
Whenever you come to suspect
mist's job to sketch for business¬
business.
and
does
not
permit too much, business
cycle , does no longer
There
have
men
the
general background that a consultant's views are pri¬
"hedging."
•
- :
.
apply, one must accept the thesis;
been several
against Which they have to oper-; marily based on "intuition," the
Heinz E. Luedicke
Nevertheless, this is one job the. that /the. boom, will inevitably,
ate. This is a continuous job; not best" advice is to "beware."
occasions,
forecaster cannot duck because he cre^e a need for a period of corIntuition cannot take the place*
b o w e v e r,,
a
function to be turned on only
is being paid for guidance for the•
recession character
when economists—over the same at the turn of the year and at con¬ of imperfect forecasting tools. And
near-term and intermediate out--T^e
on}y Question in doubt then
vention time. Any business advice though we have learned in the
span of time — have been less
look
v
can only be one of the proper
to
be
worth
anything must be field of economics over the past
timing, the start and the duration,
bearish than businessmen. Those
Even such advice will be mean-.
based oil frequent consultation if 20
years
or
so,
economists still
0f
a recessi0n
as well as its
of

the

how

to

run

their

selves.

It

gets them

..

,

.

.

'

.

*An

address

by Dr. Luedicke before
fbe Hosiery Manufacturers Association,
Kcanoke, Va., June 15, 1956.

it

is

to

be

changes

in

successful

in

catching

general

the

business

have

not

come

with any fool¬

up

forecasting

there

is

will

little

do

system

chance
least

so—at

and

that

they

during

our.

offering of these shares for sale, or an offer to buy, or a solicitation of an offer to buy,
any of such shares. The offering is made only by the Prospectus.

812,791 Shares

Share

the

ac c?

.

•

i

-

it

it

•

unsubscribed shares and, during and alter the subscription period,

may

offer

forth in the Prospectus.

CAVPrjtv
bv V

V*

A A

V

7

*

id

is
This

broad

eco¬

background.

third

'

.

today's economic
key problem down to the question
narrows

guesses

the
index,

on

production

lnterludes?

each

time

—

unless

projected

interpret

you

changes

against

or

the basic

issue of the day. And what is this
issue?

>on

personal
on

interpre¬

any

mathe¬

formula.

There is

no

reliable "indicator"-

approach, because there is no
single indicator, nor any relatively
small group of indicators, which
be

trend.

relied

There

"models"

future
racy.

If

are

which

with

on

foretell

to

formulas

no

".reveal"

can

mathematical

there

a
or

the

accu¬

economists

were,

1

,.

has

ing full blast ever
post-World
War

Harriman

Corporation

Ripley & Co.

Incorporated

f- niith, Barney & Co.

Eastman, Dillon & Co.

J10n ^ whether the economy—fro.m ^ present plateau
wilj

been gosince the initial
now

or

nprlirip

whether there will be

Kidder, Peabody & Co.

Lazard Freres & Co.

Merrill

Lehman Brothers

Tone & Webster Securities

White, Weld & Co.

Lynch, Pierce, Fenner & Beane

Corporation

First California Company

Union Securities Corporation

W. C. Langley & Co.

Schwabacher & Co.

IncorpoWed

Walston & Co., Inc.

Wertheim & Co.

f Timan, Agnew & Co.

Elworthy & Co.

to

occurred in 1943-1949 and in 1953-

balance of 1956,

1954; both of them

early part of 1957.

were compara-

tively mild and consequently did
not
tion

bring
in

about

the

real

any

correc-

maladjustments

that

1

-

—

rauerns

/

The third quarter holds the key
the business pattern for the

If

the

as

decline

well

in

an

as are

Haligarten & Co.

registered dealers in this State.

ISSUE
June

15, 1956

567,500 Shares

Roadway Express, Inc.
Class A Common Stock

Convertible into Common Stock

at

the

rate

of

one

share of Common

Stock for each share of Class A Common Stock, subject to adjustment

Hemphill, Noyes & Co.

Hornblower & Weeks

Fee Higginson Corporation

Llitchum, Jones & Templeton
1

Iotnon Bros. & Hutzler

Hooker & Fay

I Imry F.

William R. Staats & Co.

Francis I. duPont&Co.

Swift & Co.

) lason Brothers

,

Sutro & Co.

Purchase Fund.

Davis, Skaggs & Co.

Price $10 Per Share

Bateman, Eichler & Co.

Hill Richards & Co.

Weeden & Co.

a

Reynolds & Co., Inc.

J. Barth & Co.

Dempsey-Tegeler & Co.
Pflueger & Baerwald

under certain conditions, and entitled to the benefit of

Irving Lundborg & Co.

Paine, Webber, Jackson & Curtis

Lester, Ryons & Co.

CroweII,Weedon&Co.

W. E. Hutton & Co.

Carl M. Loeb, Rhoades & Co.

E. F. Hutton & Company

Lawson, Levy ^Williams

Wulff, Hansen & Co.

Glore, Forgan & Co.

Fulton, Reid & Co.

Incorporated

7'ine 19, 1956.




Paine, Webber, Jackson & Curtis

for the

business

offering. The offering is made only hy the Prospectus, which

be obtained from such of the undersigned

as

ac-

tivity this summer is held reasonably close to seasonal proportions,

F. S. Moselcy & Co.

Brush, Slocumb & Co. Inc. Dominick & Dominick

a

first?

uecime

Clore, Forgan & Co.

Galdman, Sachs & Co.

NEW

ques^

swing back into the advance right

-

Blyth & Co., Inc.
The First Boston

t/

r

Expressed differently, the

II
adjustment
ilurry. Thus, for nearly 10 years,
it has experienced only two minor
interruptions. These interruptions

This announcement does not constitute
may

:

n

away,

The economy

•

^

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 distributed

Dsan Witter & Co.

a*

,V

■

of whether

make

can

quarto

basic economic trends

tation rather than

The several Underwriters have agreed, subject to certain conditions, to purchase
as set

against

•

I

unless

forecasting

Prospectus.

shares of Common Stock

nil

the

can

*

nomic

hit-and-m

hAiirnvrnt*

however,

mation. This puts the emphasis in

Tights, evidenced by Subscription Warrants, to subscribe for these shares at $45
per share have been issued by the Company to holders of its Common Stock of
ixord June 12, 1956, which rights expire July 2, 1956, as more fully set forth in

;

projected

.

a

we are currently wit¬
nessing the start of a cyclical decline that may lead up to the
fourth
country now has well over 1,000 the
quarter
automobile
long-delayed postwar adjustment
statistical series, at his command, production
or
the sepqnd half or whether it is
merely an inconcovering every conceivable phase gross national,product—but sucu
sequential wriggle in the business
of the economy. Actually, we now guesses won t mean a
thing-even trend similar to the 1924 and 192?
have too much'rather than not if you hit the nail on the head
boom

matical

any

hacic

basis,

on

t

correlation of the available infor¬

Common Stock

the

v

,

strictly
•'

■

e n
q u g h statistical information.
The difficulty lies in the proper

Pacific Gas and Electric Company
Par Value $25 per

miss

m

m

You

The student of economics in this

an

-

mice

proof

lifetime.
Chts is not

•

.

.

mgless and

Walston & Co. Inc.

Volume 183

Number 5544

The Commercial and Financial Chronicle

...

'

(2963)
chances
will

'I- If
in

that the fourth quarter

are

witness

what

rebound

a

better

than

of

some¬

extent.

seasonal

the other hand the decline

on

the

third

normal

exceeds the

quarter

until

recently

last

year's

straints

to

quickly. It

its

reverse

trend

then be in for

may

a

credit
off
ott

First of all, here are the reasons

third

the

probably
disappointing:

prove

quarter

The automobile industry

is

.The

same

inroads

1§50 "cars
(2)

in

the

as

restraints

of

building

still

losing ground. Hence,

•

observers

These

are

-■

of

case

than

will

trend

be

" \ :

hoped for.

(3 ) The rate of inventory buy¬
ing is certain to slow down con¬

siderably,^ if not stop altogether,
ortce Wage and price uncertainties
in the steel industry have been
.removed. Customer inventories of
finished

larger

steel

than

products

;

they

been.;

ever

during/the

number of.other

a

have

well

too

not

lately,

been

such

as

textiles, rubber and farm machin¬
and

ery,

seasonal
about

these

not

are

reverse

their

summer

likely

to

trends

relief

quick

a

during

the

>1(6)

and rubber.

uncertainties

will

dampening effect on
spending between now

and election time.

Among

the

to at least
the

(1)

for

1957

quarter

Active

tions

that

reasons

are:

and

the

prepara¬

introduction

of

highway

new

tfcftoQlS.'^.K^^
;V^th J" f

only^will bring-:
complete re-

and

-

.

.■

III

and

James

Osborn

E.

will

II

tn:he'iri-

5Q hie,ha

^

*

,

Seymour H. Knox .III

-

..

-*1
D.

„

Stewart Patterson

.

down

of

the

boom

not

was

due

admitted to the firm
as

1

Wis why the advice

Mr.

of

when inflationary

tably. will, lead ihto it. The
way to stop a recession is to avoid

and

away with it. Rather, a
lag of anywhere from three

run

time

five

preceding boom excesses—and not

months

probably will be to block such corrections as
apsuch a change in
money and credit policies can be
ssary to keep the econ?
expected to take hold.
,
;
'. omy;s growth on a sound, well-?
needed

before

,

,

.

„

manager of the firm's

Buffalo

Mr.

Osborn

Mr.

Patterson

V; Canada.
.

has

He

is

a

Insurance

1952.

*

is

,

balanced basis.

'

•

••

„

Inflation

Deflation

versus

"

:

^

;

"

President

director

of

of

u

the

.

Dominick

number

of

pany;

Investment
British

Foundation,

Empire.

Limited.

holds

He

the

Order

textile

according to its
cycle;

..

,

poned

Nevertheless, it certainly would

not

be

tively and

permanently removed

from the economic
To

be

sure,

a

imminent.

will

of

find

it

as

To

competitive
difficult

no

a

longer

whole—

reasons—

to

does

in-

,

consider

corrections

the

translate

fatal

moro

the

as

of

com-

Boatmen's

Company, 111 West Tenth

has

James «S.
affiliated

Fusz-Schmelzle

& Co., Inc.',
Building, mem¬

Bank

bers

change. Mr. Segasture

Miss Morey was formerly
Straus, Blosser & McDowell.

ously
(Special to The Financial Chronicle)

DETROIT, Mich.
Bussler

has

become

with Don W. Miller &
scot

troit

•

Rheinhardt

—

price to

em-

of

the

Midwest

with: Scherck,

Stock

The

actual

well

prove

;the

Election

election

less

affiliated

Co., Penob¬

Building, members of the De¬
Stock

Exchange.

With Mid-Continent Sec.
(Special to The Financial Chronicle)

ST.

LOUIS. Mo.

Ward is

now

Continent
3520

—

an

offer to sell

The offer is made

nor a

solicitation of

an

offer to

buy these securities.

only by the Prospectus.

may

than

preceding

the

573,575 Shares

election.

This pattern is quite vulnerable
'

to what happens to the 1957 aut.omobile models. The 'auto makers
"are

saying

now

that

the

R. R.

model

Donnelley & Sons Company

changes will be drastic; may even
equal
the
1955
improvements.
Nevertheless,
automatic
1955

success

because

customers

if

even

be

available

the

at

($5 Par Value)

be
as

models,

new

instalment credit

made

of

not yet
volume

may

ready to return in
buyers for the next

Common Stock

not be

may

most

were

even

to

more

liberal terms than last year.
In

the

case

1957

models

do

not

Price $27.50 per

click, not only the automobile in¬
dustry would find itself in trouble

by next summer but such

a

share

shock

could easily trigger a rather broad

general decline.
this

For

-

to

take

with

covery

will

need

the

1957

models before it
.

the

as

end

reservations. It

some

confirmation

of

success

it is advisable
fouitth quarter re¬

reason,

any

of

can

the

Copies of the Prospectus
dealers

full

by

as

obtainable from only such of the undersigned and such other

are

may

lawfully offer these securities in the respective States.

automobile

be considered

current

swing.

down¬

Harriman

s

IV
The

Money

who

Those

Ripley & Co*

Incorporated

Squeeze

believe

in

a

..

quick

The First Boston

Corporation

Blyth & Co., Inc.

Eastman, Dillon & Co.

and rather decisive rebound from
this

year's summer lows, do
they rely heavily on

•

because
return

right

an

easy

money

way

current

see

boom
some

"lull" is due entirely

to

forestall

excesses.

inflationary

Although at least

of the country's biggest bulls




Kidder, Peabody & Co.

Lazard Freres & Co.

Incorporated

the picture,

a

tempt

Goldman, Sachs & Co.

Lehman Brothers
they

"money squeeze" that was set
in motion last summer in an at¬
to

Glore, Forgan & Co.

a

policy-

now.

The

the

of

so

Merrill Lynch, Pierce, Fenner & Beane
<*

-

Smith, Barney & Co.
'

■

•

_

Stone & Webster Securities
June 19, 1956.

Corporation

Union Securities Corporation
-

•

■/

'

White, Weld &Co.
.

'

.

K.

Corporation,

Hampton Avenue.

un¬

factor

a

Ronald

connected with Mid-

Securities

Day.

result

of

uncertainty

This announcement is neither

short-range

own

after

an

Ex¬

previ¬
Richter Co.
was

Don W. Miller Adds

A.

for full

•t\

—

become

Street.

a

ployment.

fully

with

&

experi-

arrival

even

LOUIS, Mo.

become connected with E. F. Hut-

That is why inflation is too high
pay

ST.

Segasture

with

recent

delusion.

irito

like

KANSAS CITY, Mo.—James D.
Jeanne M. Morey have

"new era" in economics, would be
a

Fusz-Schmelzle Adds
(Special to The Financial Chronicle)

Land and

in postponing such economic

ences

a

anything

E. F. Hutton & Co.

ton

them" unnecessary;

.,

•

...

this

again,

.drastic—in the end.

sharp rise in the

Industry

make
•,

.

and

post-

are

stead; lt.onl>r makes them

scene.

commodity price level is

,

time

industry

Elimination of political

(4)

certainties

the

.

such 'corrections

to the

(3) A possible resumption of
the

of

Mr. Patterson's office is in Montreal.

,,

try,
in

of

Corporation

Canadian

companies,
including Henry Morgan & Co., of Montreal; Morgan Trust Com¬
Morgan. Realty, Limited; Canadian Aviation Electronics,
Limited; Great Britain and Canada Investment Corporation and
a

(Special to The Financial Chronicle)

If

this year's round of wage increases

industries parallel

.upswing

'

-

associated with the firm since 1949 in

been

its New York office.

a

threatened to get hold of the boom

the

inick & Dominick in

remains

yeari?J"ld18 to stoP>It ,de:
tendenciesi ^itf "dd,°"s ,fr« £?at?d "'at

conditions

general partners and D. Stewart Patterson
)
J
" \
•
•. \

Buffalo office, is &
Company and Vice-President
> and director of Transcontinent
Television Corp. He joined Dom¬

th.e best method to
the

-

Knox, resident

director' of

•

restore

as

limited partner.

a

«

is most likely that the
economy,
exclusively? to money an<d credit within"
relatively few months, once
policies. The-reasons for- the - cur-againwould find itself at the
rent period-of levelling off vaetu-. '
brink of inflation '
"

to

James E. Osborn II

'* .5

pick-up in the automotive indus¬

,

be

;

''"J"

the

>

(2) Recovery in the automobile
satellite

Knox

strength

...

because

early

models;

car

point

moderate rebound in

a

fourth

Seymour H.

to

premature to assume that the
inflation threat has been effect

.

a

business

July 1,

Dominick, 14 Wall Street, New York City, mem¬
York Stock Exchange, announce
that effective

New

prograftl ang increased' assistance'

-

Political

exercise

the

.

of

summer,-the^e-reinforcedty the'

are

copper

of

.,

material

raw

unlikely to reverse
this trend quickly. Cases in point
are

bers

such as the return to easier conditions for real: estate and instal-'
It is likely that'this opinion
is-ment; credits and the green light
wrong on both counts. The slow- for all
types of business loans—it

markets have been under pressure

lately and

the

is. the -greatest .single
currently. Doraestic
spending .programs • by
states and municipalities -will" so'onr

m:thc

even

.

„

International

Dominick &
that

,

months.

(5)

.

bound-by the fourth quarter; if
not by the middle of the third

ago

-

! "* (4) There are
industries
that
doing

have

j

probably

con-factor

now

are

probably

Dominick and Dominick to Admit Partnersv

addi-

to

defense- and foreign aid outlays,

'

-

■,

.still

sharp break m ^business

a

activity

.

vmced, however, that

Ti,

in

reversal

Submit

can

befa£.

is

riffht now.
right now

of

miartpr

to be

slower

some

stocks

dealer^ inventories.

Residential

seems

the

into

to

still has great underlying
strength., and that this strength

.

real

have

economy

faced with the necessity of further^ return to easy money
^ even
downward revisions in .production though.- perhaps
^disguised v as

schedules if it hopes to make

will

it

a

easily be fortified further by
business activity is imminent, and
administration policies.
inescapable even if the policy of.
'+V:- -•
' -,-v '-ii*

portions.

(1)

pensatory price increases. Instead,

-re-

complete tional profit squeezes.
ideas proved;
But the fact remains

prove

dud,'their original
just that .much
bull.

protracted decline of sizable pro¬

will

that

credit

letdown,
the observers are now just as conshould find it extremely vmced that, asharp •<» break .} in

difficult

j

of

seasonal

economy

why

maintained

policy

would

11

-

-

The Commercial and Financial Chronicle.

Chicago Inv. Women

Farming Price and Crop Outlook

CHICAGO, 111.—The ever-grow¬
ing LaSalle Street organization,

analyst believes "the farm price decline for

Massachusetts

I

cycle is about over," and that the Soil Bank and other

remedial

and

soybean

new

/

From

present early indications,
Nature may be of some

assistance

this

harassed

to

year

government officials—not to men¬
tion overburdened taxpayers—in

reducing farm surpluses. My first
survey of the 1956 crop outlook
points to the lowest prospects in
11
years. Here are some
of the
highlights.
Wheat

and

recently

only 17,437,000 acres. As
as
in
1951,
farmers

1956-1957.

the relatively

larger
would

the

For

successive

third

will

year,

probably
short

fall

of the billion-

mark.

bushel

of

Output
winter

wheat

—the

main

Dean Witter &

turn out to be
cut in acreage

indicate.

but

age,

the

in

Farmers

learned

may

the

bet

that

recent
of

bales
cotton

the

"getting

of

this

is

in

cutting

Vice-PresilldllS

the

Barbara

ent;.

Gallas

safe

follow

will

Dixie

a

It

C o.,

Trust
UUl

mostest

millions of
in government hands.
The
problem is still far from

of

Stein, Roe & Farnham Fund, Inc.,
Corresponding
Secretary;
Mary
Barbatosta of Hallgarten & Co.;
Secretary;
Ruth
A.
Republic Co.,

Recording
Steinke

Central

of

C.
Miller of
Co., Assistant

Marie
Forgan &

Treasurer;
Glore,

Treasurer.

solution.

be
vicinity

B.

Guenther

cul¬

cotton
this year.
Even a reduction to only 10,000,000 bales would not go very far
toward

Lucille

have

years

intensive

leastest."

procedure

Co., President;

Northern

art

the

of

C.

Burhans of

small 1956 acre¬

it
than

on

out

total production of wheat

They are:
Agnes

planted 28,195,000 acres to cotton.
No
record
crop
will be grown

tivation—of

Outlook

Rye

total of

crop—may

in the

of

down 5% from
a

year

be-

average.'

o w

t h

If

ago

well

and

1

e

spring

crop xamounts
Rofer W. Babson
:
Y? v.1' t

about

to

•

bushels,
U.

S.

as

crop

would

be

253,000,000

I expect, the total
of 923,000,000 bushels
smallest since

the

1943.

However,

since

carryover

threatens to top 1,000,-

the

total

In

s—

July

1

000,000 bushels, total supplies will

the

several

past

American farmers
it

taken

the

In

the

"on

chin"

the

last few

years,

pricewise.

monfchs, however,

of farm prices has
been
edging upward. Barring a
severe business recession, which I
am
not now forecasting for 1956,
1 believe that the farm price de¬
average

cline

for this

The

Soil

Halliburton Oil Well

Rye is doing well in
less

so

dition

cycle is about over.
plan and other
remedial measures yet to be found
Bank

and

applied should go far toward
correcting the errors of the past
in
agriculture,
although
some

of

normal,

June

1

with

compared

74%

Cementing Co. Com.
Stock at $78.75 a Shr.
Public offering of 350,000 shares
of

Oil

Well

was

made

at

Halliburton

of

stock

common

Cementing

Company

yesterday (June 20)
a
share by a group

$78.75

heaaed jointly by Lehman
and

ers

Part

Blyth & Co., Inc.
of

the

net

Halliburton

this

year

equaling

cn

or

exceeding the above-average crop
of

bushels
produced
This would be sufficient
for all requirements.
29,187,000

last year.

Large Corn and Soybean

Crops

Likely
It

is

uncertain

at

this

writing

just what effect the government's
Soil Bank program will have on
production of corn and soybeans

to

repay

$10,-

a

replenish working capi¬
The balance of the proceeds

will

added

be

to

New

new

Stock

York

Ex¬

Cohu &
July 1
following the dissolution on June
30 of Cohu & Co., Stetson & Co.
and Winslow, Douglas & McEvoy.
Until
Aug.
1 customers' offices
will be maintained at 1 Wall St.,
change

Stetson,

firm,
will

New

York

way.

Back

be

Winslow,

be

until

formed

City, and 120 Broad¬
office operations will
from

conducted

July

52

when

16

funds

and will be avail¬
capital expenditures and
working
capital
requirements.

able

A

general

of the company

1, 1955 and with the 10-year
average of 82%. This could mean
outturn

Broadway

such

opera¬

for

The

company's
in

rose

1955

annual

revenues

period 1951approximately
$69,-

from

300,000

$152,400,000,

to

pansion

which

ex¬

an

increased

has

inventory and other working cap¬
ital requirements.

Halliburton, incorporated in
is the most diversified oil

1924,
and

gas

the

petroleum

well service company in
industry and its

total revenues

rived

very

the largest de¬

are

company

but my forecast is, not tions will be transferred to 26
much.
Last
spring,
corn Broadway.
Effective Aug. 1 all
farmers
indicated that they in¬ business will
be conducted from
tended to plant an acreage 3.5% 26
Broadway.
smaller than
in 1955, when the
Partners in the new firm will
crop
amounted
to
3,184,836,000
be Samuel R. Winslow, Eugene W.
bushels
the
sixth
largest of
Stetson, Jr., member of the Ex¬
record. Given favorable weather
change,
Charles
A.
Bianehi,
conditions,
I
believe the
Corn
Charles A. Clark, Jr., Walter V.
Belt will "go to tojwn" again this
Austin,
William
J.
B a n i g a n,
year. Meanwhile, I forecast higher
Pearne
W.
Billings, Arthur W.
average prices for old-crop com,
Breyer, Jr., William V. Couchman,
and
lower
prices for new-crop
member of the Exchange, Donald
corn this fall.
S. Kennedy, Paul V. Land, Mal¬
Last
spring farmers indicated colm S.
McConihe, Jr., William C.
intentions to plant a record 21,McKinney; Henry G. W. Parmele,
760,000 acres to soybeans — up Charles W.
Snow, Fred E. Walton,
10.6%
from
the
previous
1955
general partners; H. Wallace
record.
Nothing
has
since
oc¬
Cohu, general and limited partner;
curred, as
far
as
I know,
to
Earclay K. Douglas, John
B.
materially alter those intentions.
Fowler, ^Jr., Malcolm Goodridge,
If
weather
conditions
remain
Jr., Harold W. McEvoy, member
favorable, the 1956 crop of soy¬ of the
Exchange, Nathanial P. Hill,
beans could easily top 400,000,000
Philip D. Holden, and John M.
bushels and set a new record for
Lummis, member of the Exchange,
this wonder bean. Total supplies
limited partners.
for 1956-1957 should not, however,
prove burdensome, in view of the
government support program and
With Ashton & Co.
an expected heavy volume of total
(Special to The Financial Chronicle)
consumption. Some price weak¬
DETROIT, Mich. — John B.¬
ness could
develop this fall, with
—

Hubert

to follow.

has

been

added

to

McNichols

The U. S. cotton crop is making
generally favorable progress. It
is too early in the season, how¬
ever, to form any hard and fast
opinion as to the final size. Pos¬

sible

insect

reckoned

harvest
were

with

damage
between

time.

must

be

now

and

Plantings this year
officially
restricted
to
a




from

with

the

wells

and

Roney

—

been

Stanford
added

staff of Wm. C. Roney &

Street.

of

any

oil

and

production

rose

in

,

This

caused

the

which

scandal

a

news¬

have been insisting should be investi¬
gated up to the hilt. How many other Sena¬

tors have been offered

campaign contributions
people in the past, how many
have accepted such contributions?
Well, there being a lot of oil and gas
from oil and gas

people

their

and

having

of

lot

a

money,

Carlisle

well known to have contributed
many
dollars to the campaigns of Congres¬
sional, .Senatorial and Presidential candidates just

they

churches

to

and

schools.

and

fat

as

to

calves

otherwise.

As

matter

a

of

as

lact,

because
unless

the

on

such

professional money collectors, po¬
been that they have been trying

It hasn't

much as that they are set-ups for

so

have

we

part of the pure press that they do something

goings

on

are a stench in the nostrils, and
legislative body we cannot hope

this

as

unfettered

an

to

the

friends"

to make friends with the rest of the world and show "our

abroad how decent

foreign aid.

'

are

we

that they

so

will continue to take

/v.'. V;'

'

'

'

A* young

our

J.

>■'.

from

gas

of

oil

Senator by; the name of Gore, of Tennessee, whom

bet has
oil

received

never

a penny

of campaign contributions

but has from the CIO, because he is a
loyal supporter of labor, moved in with a view to purifying his
fellow law-makers.
His idea of a purifying process was to con¬
an

or

gas

man,

duct a headline
investigation during the present Presidential
campaign to show that the Republicans had been heavy recipients
of oi.1

and

The

gas money.

Senate

Republicans thought they would be damned if
they would permit this, and the Democratic leader, Senator Lyn¬
don
Johnson, agreed this would be terribly unfair.
So they
created

an

nonpartisan

investigating committee under that great judicial and
mir.d, Senator McClellan of Alabama.

Somehow
a

who

man

He

doesn't

Arkansas,
without

browbeat

doing

in

so

rest

can

that

assured

wrongdoing to

any

will get at the facts
of the decent citizenry.

he

any

happens that this conscientious Senator finds him¬
as
to how to proceed to satisfy
the press.

dilemma

a

He first sends out

let it

been built up around him that he is
fair, He is just a mild fact seeker.
witnesses.
A
staid
old gentleman from

eminently

you

"Well, it
self

the story has

is

be known

a

questionnaire to all Senators asking them to

if any

oil or gas money had smeared them. He
Senator, Milton Young of North Dakota,
who said he had been accused by a North Dakota newspaper, un¬
friendly to him, of having been bribed to vote for the gas bill.
He demanded the committee investigate. After some reluctance,
Senator McClellan called in the offending editor, who said, "aw,
got one answer from

nuts," that's the

a

way we

play politics in North Dakota.

However, the newspapers kept cn the Senator's neck to come
with some scandals. So in due time, the Senator brings before

fracturing

people had set

and
chemical
treat¬
retrievable
packers
and

ment;
tools

for

formation

electrical
It

also

testing;

service

well

carries

bulk

on

and

equipment.
materials

operations, principally of cement¬
ing materials and fracturing sand,
in

and

tured

addition

and

sells

manufac¬

purchased products

re¬

lated to its service activities.

Net

of

Halliburton

totaled

$152,446,158.
to $16,263,-

revenues

during

1955

Net income amounted

958,

equivalent
the

on

to

3,280,000

outstanding

on

$4.96

a

share
shares

common

Dec. 31.

ST.

LOUIS, Mo.

Hunn

staff

has

Mrs. Helen

—

been

added

committee, the heads of an organization which the oil and gas
up in New York several years ago in anticipation
of the gas fight in Congress. They called this an "education com¬
mittee" and apparently, over a few years, they gave more than

$1,500,000 to the publicity firm of Hill and Knowlton to

Mid-Continent

understand

I

As

the

to

it,

under

the

original

lobbying

in

effort, bottonholing and importuning the dear Congressmen.
McClellan

Senator

But

and

other

harassed

members

securities business
the

firm

Russ

name

Sanford
Walter

of

what this "education" com¬
through Hill and Knowlton had done. Why, said the Sena¬
tor/joined in by other Senators, your educational campaign has
exercised more influence on Congress than any direct lobbying
could have done. Hill and Knowlton with an eye to their clients
this

admitted

could

true.

be

said the Senator with his colleagues
nodding agreement, the clients shouldn't be able to deduct the
money they paid for this educational campaign from their in¬
being

the

case,

tax.

So

the

likely

from

Was

from

great

investigation designed
into proposed

to turn

to

investigate Senators

legislation to prevent industries

deducting from their income taxes money which they spend

publicity to save their industries from Congress.

to

be

—

Presumably

in

offices

the

other "educational" committees

now,

An

setup.

Washington

influential

committee's

Senate

neck

newspaper

has

will have
which

commended

it

has
for

under

the

been

&

Mr.

bringing to light this very serious situation of where "the, tax¬

Co.

previously

C. Gorey Gm

bacher & Co.

Calif.

Sanford

.

,

engaging

Building

,

the

Securities

Forms Sanford & Co.
is

of

mittee

is

Sanford

this

committee professed to be shocked at

Corporation, 3520 Hampton Ave.

FRANCISCO,

act,

publicity firm would have had to register as "lobbyists" because
they were writing or "causing to be written" for pay, matter
designed to influence legislation. But the Supreme Court ruled
a
few years agb that this was too broad, that lobbying meant,

come

of

carry on

this "education."

This

(Special to The Financial Chronicle)

M.

the

graciously

Joins Mid-Continent Sec.

in

Co., 517

they have
they have

Well, all the Senators understand this situation but there is
demand

a

up

a

A.

Bargeron

are

known

the

the

(Special to The Financial Chronicle)

Harrison

Senator

one

on

Joins Wm. C.

has

the

include

gas

SAN

Andresen

because

papers

furnishing
and operation of pumping equip¬
ment
for
cementing,
hydraulic

Road.

Mich.

services

drilling of

and

Laurence

FLINT,

such

in
the
business.
Its
specialized services in connection

staff of Ashton & Co., 15315 West
Cotton Prospects

it

vetoed

high indignation in the Senate to tell how a
representative of one oil company had sent
hirri a contribution of $2,500.
i
^

the five year

this year,

recovery

Congress passed
exempting the industry but President Eisen¬

.you can

proceeds from

the sale of the snares will be used

tal.

&

gas

source.

hower

Broth¬

by

of

Gov¬
industry
legisla.ion

the

over

industry exer¬
colleagues in

Federal

the

remove

gas

their

'

curred to

June

an

fight to

from* control

the

weight around
fund raising drives.

000,000 short-term bank loan in¬

con¬

78%

wasi

recent

ernment

litical

small and inefficient farmers may

some areas,

in others. Its over-all
as

the

at

to throw their

get hurt in the healing process.

still be burdensome.

committee to investigate whether the oil and
cised any undue influence over them
and

been

whole have

as a

get a kick out of the Washington scene I
predicament of those Senators on the special

the

to

you

to

want

you

refer

done

Outlook

Price

Farm

670,000,000

bushel

If

officers
for

Mother

By CARLISLE BARGERON

has

elected

crops.

of the News

of

Chicago,

Mr. Babson offers outlook in wheat, rye, corn, cotton,

errors.

Washington

Ahead

nve stmeni

Women

agricultural

should correct much of past

measures

From

Elect New Officers

By ROGER VV. BABSON

this

Thursday, June 21, 1956

..

with

and Schwtr-

payer

on

pays

for

indirect

lobbying."

;'cdlle'aguek' are' 'hopeful'1 this
accomplishment.

:

s

-

will
;

be

Senator. McClellan and Bis
considered

enough

of

an

Volume 183

Number 5544

The Commercial and Financial Chronicle

...

(2965)

goods has taken place

An Economic Review
mmW.

a

4

rene^

lively,

of

fear,

remembering that there

were

not

as

matter

a

immense importance and responsibility. The future soundness of

'

upswing

^

»

ut

be expected.

may

^

i

As commercial bankers

we

1929. our banks

excesses of human nature m

per-

13

as

well

the financial

as

AmIKaU 1a« fi
form a bi°st important function i personally believe we are in a welfare of those with whom we
UUIIOOKIOIDdilKcIS in the economy anrd have a cor- stronger position to minimize ef- deal depends very heavily on how
r«nnr,mn<riv
fects of the business cvcle tham'Well we'do
inhs
respondingly great responsibility, fects of the business cycle than"well we* do our jobs.
WILLIAM F. PLOCH*
Among the fundamental require- ever before, but let us, in a pe-

A
J
AmU

nur

By
'

ments

York State Bankers Association
Chairman, Trust Committee,
Franklin National Bank, Mineolaj New York A v

Retiring President, New
Vice-President
'

-

/,

;■\><

;

and

of

■'

"

New York banker expects a renewed upswing

after steel and

.

A

durable

certain

-

■

■"

"

,

goods inventories

consumer

Sprout concurred in Association's recommendation that

a

study

;

delegating
'•

unfamiliar

■

The

to

of

ance

6f efficiincy .it

^greatly

to

healthy

fields and provide

a

negative factors.

of

AA'A

has decreased. The number of
home starts, which in 1955 was
.
over 1,300,000 units, is now run-

banking situation

^£laVnnu^ rate 0f

New York was recognized

bank

The
in

credit.

low and

business

in

omy.

1954

nated

in

the

f

S

t

p

1954

a

F.

Ploch

1955.

the

of

The

to

banks

rise

constant
..

thus

store

rather

re¬

in

based

not

only

speech
such

sure

the

the

amount
on

research,

vaiues
,

money

,

The
,

which

being

on

is

the

,

,

study

aH

of

York

New

us

here

I

today

be

a

the national level.

know

our

economy.

Recently William McChesney Mar¬

Wbole sound, and after a reduc-

tin, Chairman of the Board of the

tion in inventories of steel and of

Federal

certain types

"Let

of durable consumer

Reserve
us

System

of

New York cit

materially

level

of

demand

,

,.

the Value Line Funds

were qual¬
,.rivA'

ified.

George

G.

Shriver

established

was

credit

(Special to The Financial Chronicle)

NEW
W.

HAVEN,

Conn.—Thomas

Foley and Harry

are

now

157

an

Street.

D. H. Lurie

and

credit

unsound

has

opened

offices

ington Road. to.
business.,

rities

1955

million on
million
In order to ac¬

all

J

May 16, 1956.

on

their

commodate
banks

not

L. B. Wadham
ALEXANDRIA, Va.

of

those

is

extending credit.

to

ours

whom

our

we

In this time

expanding loan volume,

is indeed an

exacting task of

to. sell

ties

business

from

East Reed Avenue.

is made only by the Prospectus.
21, 1956

The United States Life Insurance Company

large volume of govern¬

a

ment

obligations but also at times
borrow substantially from tae

to

in the

City of New York

Federal Reserve banks. Borrowing

the

of

reporting

member

banks

from $159 million on May 18,
to

million

$556

During
of

the

U.

May

on

Government

S.

1955

($2 Par Value)

1956.

16,

holding

period

same

STOCK

CAPITAL

from the Reserve banks increased

securities

ceclined by nearly $6.7 billion.
Renewed Upswing Expected

Influenced

commodity
the

the

by

prices,

Public Offering Price:

increase
well

as

$26.00 Per Share

in
by

as

substantial demand for
credit, the Federal Reserve
Board adopted a policy of active
very

bank

credit restraint.

are being sold by selling stockholders. The remaining 75.006
which the selling stockholders will not subscribe of an offering
of 100,000 shares being made simultaneously by the Company to its stockholders for
subscription at $26.00 per share.

550,061 of the above shares

The discount rate

shares

raised five times since April,

was

1955—from

3%

IV2

the

in

2%%—and

to

Minneapolis

Francisco

districts.

and

to

San

are

that part to

Throughout

the

period money has been tight
and-interest rates rising.. The two

Copies of the Prospectus may be obtained

outstanding

including the undersigned, as are registered

crec.it

sources

were

home

of demand for

consumer

credit

mortgages.

March,

ing

1956,

while the vol¬

ume

of

1- to

William Blair & Company

4-family houses increased by

mortgages

$1-5.7 billion during

pared

with

billion

an

during

on

1955

as

of

increase
1954.

♦From

fore

York

60th

soft spots
an

address

Annual

June

Carl M. Loeb, Rhoades

Glore, Forgan & Co.

& Co.

a

ac¬

num¬

Goldman, Sachs & Co.
■I

<

Harriman

Ripley & Co.

Kidder, Peabody & Co.

'

■

Lazard Freres & Co.

Incorporated

Merrill

Lynch, Pierce, Fenner & Beane

Paine, Webber, Jackson & Curtis

have developed
by

Mr.

Convention

Ploch
of

State'Bankers

Lake,-N« :J.,

Corporation

$11.9

previously stated, business
of

Blyth & Co., Inc.

com¬

tivity has leveled off and
ber

The First Boston

non-farm

Since the beginning of the year,
as

only from such of the underwriters,
dealers in securities in this Slate.

and

The volume of
consumer credit increased by $5.6
billion during the 12 months end¬

the

Assoc'ation,
IS," 1956.
-




be¬
New

Smith, Barney & Co.

Spring
'

-

v

Stone & Webster Securities Corporation

Opens
—

Wadham is engaging in

the

customers

only have been forced

Farm-

in a secu¬

•<'

institution

Above

625,070 Shares

$28,203

to

134

at

must
the character and capacity

party.

June

$22,737

from
18,

Opens

engage

porting member banks in 94 cities

rising

Sampson

UTICA, N. Y.—David H. Lurie

ricultural loans of the weekly re¬

May

Mr.

formerly in the Trading De¬

offer to sell nor a solicitation of offers to buy any of

these securities. The offering

D. Sampson

with Hincks Bros. & Co.,

Church

was

? esses a e develop

of rapidly

said:

talk: about 1929 objec-

This advertisement is neither

considerably, the volume

of commercial, industrial and ag¬

Co., Inc.

Two With Hincks Bros.

\n

in¬

&

in 1931.

country have

bank

actively

Co.

ls

affected by the
business activity.

for

was

engaged in working with -retail
dealers in the ,41 states in which

liberality that is of benefit to nei¬

of

in

..

benefit to both the borrower and

"

development

the

negative factors

we

KWfe must k^ow the distinc^ between progressive and war™c.^e'lra h^rmvp/anH
ther

influencing

Inc>

In thls connection he

partment of Chas. Wi Scranton &
,

.

ir

J

in

banks

tributors

con-

that

^.90w

could play

commercial

new

»

only

,

important

the'degree

.

State
v..

•

is

.

am

concur

dealt with

It

fOiios

Many of
confronting
com-

properly

under less favorable

This

tion of Howard R. Hayden.
,
Mr. Hayden was formerly VicePresident of Value Line Fund Dis-

mindful of the important

of risk in loans
and maintaining sound loan port-

appealed for
the part of a

on

ever

ating

24

commission.

the whole
is sky-rocketing are far

responsibilities we have in shaping the credit policies of our institutions, recognizing and evalu-

na-

in

when

mon

Mutual Fund Shares.

division, will be under the direc-

rise.
of the

high

creased

by

the

are

coitions.
he

an unfavorfinancial at-

exacting and important than

they

this

and

George G.
ucu.„„

—

..

The skills required in

thei; lender,

new

on

less

Previously I referred to the part

spent

creates

economy

ec0nomy

similar

mercial banks of, New York

•

of

a

of

economic

loaning

Allan Sproul, retir—

problems

dan

in the standard

.

al>ie

in that recommendation.

on

population; and

increase

exoerience gained in

em-

say

on

•
ftlir

mQn

,of

a year m0Sphere.

a

Lending

lending authority to younger men
who have not been seasoned with

recognized

May

on

Presidential

living, but also .op the huge

people

has

business

are

in

However,

The economy is healthy

the

.

been

The

following facts
growing,

of

number

coing

continued

been

Bank

serve

■

holds

'

ing President of the Federal Re-

expenditures
by
30% higher than

future

and

gainfully employed increased from
61.7 million in April 1955 to 64
million in April 1956. During the
past year there has also been a
moderate increase in commodity
prices as well as in wages.
The
cost

the

economy

the

year

that esti—

-T;

be-

Since

high plateau.
total

are

and

ago.

assuring.

144

ginning of the

The

year

the

has. leveled off and remained at
a

capital

What
William

December

peak

new

it is impossible to state.

ber

to

a

corporations

(1947-49

100)

=.

in

"has

need

in

fllQf

on its study of the bankstructure in our State and
recommended to the State Leg is-

indus-

skill

•

s

^

barked

lature that it undertake
study. I am pleased to

BALTIMORE, Md.

•
i
a many
.our
banks have delegated considerable

.

ing

responsible authorities

in

124
e m

of

.

Association

your

he .concluded./.

.

-

„•

the State of

in

tional level.

at

mated

industrial

e

volume

society>

all

Needed

is

activity rising
from

the

when

ago

these adverse
it should
be

against

Howard Hayden Joins

George G. Shriver Co.

wiil\^tbepv^-?e-ca®I">t^have a free

A need for study of, the whole

still

is

'

Study

trial and commercial construction

1955,

Federal

Reserve Index
o

National

have had to be

however,

that

noted

De¬

cember

income

measures

factors,

i-

m

'

ji.

Farm

As

September
1

output
P

taken -by
the
Government
to
strengthen that sector of the econ-

activity which

c u

onn

1,100,000.

upswing

started

orn

1

some

.

deterrent to

in the economy
automobiles and farm equipment

economy

by increased

having

are

in the economy,
in my judgment we can

which

continu-

a

activity, in

aceom-

expanding

panied

by

high level,

employment
and a substantial upsurge in the
demand for

an

marked

The

we

readjustments

so

as well as a profit economy and ,Shriver & c' Inc
MerclntiYe
f°sses» when they come, must be Trust Bu|lding) have announced
b°rne by someone, whether the - the 0Dening of a new department
government, or you or the people. to speciaiize jn the distribution of

a

with unfavorable economic turn of events.

past year was

riod when

our

banks

our

a

contribute

bank officers

younger

of

living. If we
good job in making certain
that banking, facilities are developed, maintained and supplied on

be made of the whole banking situation; and cautions against

lending responsibility

facilities

s^an.^—us n?Vb® a^ra^ *° rec"
bgnize_that this is,a loss economy

ido

i

~

the

of

development

bf banking and. of

V pleased that retiring N. .Y. Federal Reserve Bank President
,

welfare

that they may maintain' arid further advance the high standards

reduced; is

are

the

for

country is adequate

.

White, Weld & Co.

Lester B.
a

securi-

offices at

47

14

The Commercial and Financial Chronicle

(2966)

The General
"i.,

is

Business;

(1)

as

it

was

a

outlook of ^current;

short-run

cars

considerably

were

of goods and services

Consequently the rate of way up.
increase on auto credit outstand- ;% Spending

are

the

on

V'-'y-'

higher.

by

state

abnormal

of

was,

dip- in

rise

the

course,

1952

resulted

from the steel strike at that time.
With the expected abatement of

*

inventory-building after the im¬
pending wage-price settlement, it
is quite
possible.*; that -industrial
production

local

and

for the

reason

1950-51

.

temporary

above

was

debt

in

running

in

auto

on

third

decline

will

jn

the

quarter.

-Some years ago any such decline'
ing has
tapered
off. - Monthly, governments shows a steady uprepayments, on
auto, instalment ward trend and will continue to would have been viewed
with
credit are currently rqnning at .do so as we satisfy the needs for widespread apprehension, lest it
about 5V2% of disposable income more
schools, roads ;and other initiate a; major recession or de¬
*

^

and (3) hearty appetites

year ago;

well above the 1955 volume which
in turn was above 1954.

buildup
of
defense
inventories
during the Korean War, and the

goods area, are

the 1955
Another factor that is on the
January and February; increase is government spending,
but March extensions were below;: After declining from mid-1953 to
March of last year and repayments mid-1955
government purchases

be¬
yond, the third quarter with expected upward auto and housing
activity by the year-end; (2) automobile long-run view is just
favorable

durable

level

"rolling adjustment" t will continue during, and possibly

as

The

senger

Mercury Division, Ford Motor Company

opines:

records. Department store sales,
which largely reflect the non-

into debt at the rate of last year,

Manager, Business Research Department

Economist

liquidation is called for. This hap¬

sales in many areas are breaking pened in 1949 and again in 1953-54.

Instalment credit extended on pas-

By A. H. BAUME*

Ford

ment and income situation, retail

economy

An important reason

booming.

why consumers' purchases of cars
were
likely to drag this year is
that they could not continue to go

And Automotive Outlook

■

the

of

the rest

of

most

Thursday, June 21, 1956

...

.

for

will

cars

new

following current "debt-digestion"

return

peitbd. Mr. Baume is encouraged by the over-all employment,
retail rales, and capital spending picture, and believes we have

compared with about 5% a year services-required by our expandAuto repayments .account for' ing population.
/"■
y
slightly less than half of repayNational security spending was
ments ;pn all cohsum.er,.i,iis^
byr the Eisen-

a go.

,

acquired the ability to replace recessions with "rolling adjust¬
so that the declining auto, housing, farm equipment
possible third-quarter, steel inventory-production decline
need not spread to the rest of the economy.
.

ments,"
and

We
of

in

the early

tain

the

a

of Gross

lion

billion

annual

rate

National Product in the first quar¬
ter .will

ably

prob¬

at

the

Another

near

in

d

ction

u

which

started

fact that
all
at

do not

We

we

yet but it

as

have

evidence

$16

that

the

of 1955 and $18 billion in the

ad¬

justment

has
H.

already
started, in that

ures

key sectors such as autos,
equipment and housing are

operating well below yearago levels. For example, the sea¬
sonally adjusted annual rate of
housing starts has been declining
over

other

a

the fourth

in

quarter

third

(annual rates).

are

not

yet available,

know that the number of

below 1955 levels.

was

do

we

cars

sold

In the first

months

four

tail

sales

of

1956

new-car

The

Automobile Perspective

in

conditions

for

several

rea¬

First, since federally under¬

mortgages constitute such

large proportion of total mort¬

gages and since the maximum

fixed,
sults

maxima

substantial

a

re¬

decline

in

out

pared

with

in

January-Kpril period have

the

Yet retail sales

1955.

considerably above those in

same

period of

than 1955.

any year

other

The only occasion dur¬

while

season¬

current

rate

of

ing

spree

were

sustained at

right after the outbreak

of war in Korea in mid-1950. Fur¬

ther, it is well to remember that
retail
a

car

sales in 1955

were

about

which

tioned

was

1950.

We

the

could

>An

address

Rapids

Association

Rapids,

of

by Mr. Baume before the
Chapter of the National
Chst Accountants, Grand

'

Mich.

pay-

late model

*

one.

new

a

-

as

year

this

year

and

You

will

probably be wonder¬

ing why the auto industry is

CHANGE IN NON-FARM

any

cars

far in

so

appropriate
trend

is

of

1956 it may

just

that

the

the

favorable

as

ago—probably
that

mean

be

long-range-

automobile

industry
it

as

was

a

so.

By

market

po-

more

our

tential is greater than ever before
in

terms

such

of

basic

factors

as

population and income.
x

*
the short-run

-

,

As far

cerned,
fact

as

that

the

decline

dustry (as well
ment and

to other

,

in

con-

is

our

in-

farm equip-

as in

sectors

Overall

has

market

strong.

,

housing) has not spread

and employment are up.
car

.

encouraged by the

wo are

Federal

a

incomes

The used

been

through

happy

combination of
acquired a
knack of "rolling with the punch."
a

luck and skill, we have

What used to be recessions have
become
This

where
or

"rolling;

term

to

the

to

one

industries without spread¬

rest

of

the

most

Spend** Factors
favorable

factor

of

economy.

incomes and employment.
Because of the increase

in

in¬

ventories and the rise, in the prices
of .certain basic materials, the Fed¬

ments

their

huge vol¬

debt

contracted

in

appetites

for

hearty
will

cars

'£e:V„ ,on ^ uLr.epir
" the
made

are

of

ume

ex¬

INVENTORIES

eQuiprrient

arfd

eral

Reserve

has .been

steadily

role in maintaining high producfion* and: employment in many
industries.
*n my opinion, such a sharp
increase reflects several things:
^ c;°nfld<:?ce in the ^ng-term
§™wth of the economy, (2) contrdence in the political atmosPhere> (3) the development of
new products and processes and
W the continuing need to remain
competitive cost-wise and po¬
,

new

uet-wise.
Largely because of the boom in
plant and equipment spending,
^

manufacturers
0£

Getting
business

back

Picture

the-

to

picture,

other

some

ever

or(jers

have

Decemt)er

been

hl

rou

al

March

let

general

economic

The

Federal
Reserve
Index of Industrial Production for

output in

measures

factories

and
mines, was about
xk % below the peak reached last

were

for

some

because of' the backlogs built
over

the past

and

year

*s

up

half.

a

The greatest impact of

some

goods economy. De¬
decline in automotive

the

steel

industry

operated at close to 100% of capacity in April. Weekly average
just

production

barely

missed

equalling the all-time peak established in March.
This brings

to the factor most

us

short-run

face

we

the current

outlook

during the third quarter and pos¬
sibly beyond. However, bv yearend

we

ward

expect another

may

thrust

the part of

on

-

Before

the

at

close,

we

interested

in

on

Our population now exceeds 167
million, up 16 million from the

1950 Census.

Fach year mo^e than

4 million babies are born.

increase

in

tot^l

our

last year was 2.8
It is

clear

that

steel

wages

and

prices—

not to mention a possible strike—

have

been 1 stocking

up

million.

there will

tinue to be periods when

machine the worid has

farm

April, 1955. Although

some

demands made

known

it in t°rms of

unon

roads, homes, hospitals,
Not only .copulation growth

etc.

but

our

see

to

r

changing

will

age pattern

that.

For example, it is estimated that
population

our

15%

between

increase

will

1955

and

by
Yet

19ft5.

in

1965, the most productive age
group—that from 20-64 years of

age—will
in

onlv 9%

while

1955,

20 and

the

over

the

larger than

but

incomes

are

Inventory Record Since 1948
Figures

for

the

first

quarter

quarter* but this decline
reflects the special situation in
the auto industry, where early
model introductions resulted in
most of the accumulation taking
place in the fourth quarter rather
than the first quarter,

industry

amounted

to

120-

6%

with

150; in cement,

industry
steel

is

a

minimum

180.

The steel

negotiating

workers'

union.

ment in line with those

tioned

is

with
A

the

settle-

just

men-

indicated.

Reflecting the

higher

fehow

were

fourth

As

the

later

employ-

after

chart

shows,

inventories
a

sooner

become

or

ample

period of buildup and

some

grouos

64 will grow

of

ratio

consumers

under

by 23%.
to

pro¬

period. Furthermore, the trend
a shorter work-week, as

is toward

well

as

lower retirement age.

a

I think it is clear that

raise

our

must

w*>

sights far above today's

levels in order to meet this chal¬

growth of

our

on

the

enor¬

markets.

Recuperating
Fred

that
business
inventories
being accumulated at a $4
billion annual rate. This was about
a
billion below the rate in the

of




ever

schools,

'V "

'

rec9rd numbers Of

working

petroleum,

00S/MfSS RCSCARCH OCPT.

our

pressed to meet the

mous

and

150; in cotton textiles, 80; in aircraft, 110 plus 70 for 1957; in

1956

con¬

even

economy—the greatest productive

lenge and capitalize

•

tile

1955

The net

population

buyers

concentrated in the

augmented by substantial
increases, granted so far this
year.
For
example,
the
wage
boOst granted in the woolen tex-

1954

in

of Durable Goods Manufacturing,
primarily automotive. Yet, despite
widely publicized layoffs in the

The

being

SOURCE: US DEPT. OF COMMERCE

look

market

ducers will tend to rise throughout

December.

wage

»53

brmf

a

our

higher

was

people

»52

might be

you

taking

imnact

area

drop

Not only are

1951

up¬

autos

and housing.

The

and

mains excellent.

1950

of

likely to trigger a decline in the
third quarter — namely, inventories. Because of the prospect of

1

tories for a while and that steel
localities have been hard hit, the -production
will
decline
in
the
overall
employment picture re-., third quarter,

1949

then, is

"rolling readjustment"

that of

fCOTTINO: l$T. QUARTER

up

continuation

a

—will be hard

the boom

apparent in steel, the heart of
durable

The

that

time

^dlr^ctee

requirements

examine

us

of

measures

new

to

maintained

b

help take

factor—people.

shipments at
However, production

hmior£

13 4

to

goods

since the end

declining since

in

and

Reserve

the slack.

the next 10 years of just one basic

Seasonally adjusted

the

Business

Federal

ahead

new orders have remained
of
shipments of durable

spite
General

ening in our economy will be met
a
loosening of credit by the

with

.

1955,

return.

the

in

rather heavily.
After the wage
industries, ^settlement and. the price adjusttotal employment in April was at ment, there is a good possibility
an
all-time peak for the month ' that customers for certain types
and
unemployment
was
below of steel will live off their inven-

1948

situation

a

production declines in

more

ing

readjustments."

refers

fact, other sectors may be ris¬
tending to offset, at least in
part, the deflationary impact on

a*! at ;thi$ time is~the outlook for
capital spending by business. Businej?f^KMi^re P*annlin£f J° spend at
a $35^ billion annual rate for plant

unusually

JTf-3 Pen0d

automotive

UTCST

even now;

yet it does appear from our expe¬
rience since World War II that,

In

AH this suggests that the

March, which

decline at all while

(QUARTERLY-SEASONALLY ADJUSTED)

(BILLIONS)

Detroit is

know,

you

optimism and we
are no exception.
Despite the decline in production and sales of

strength.

in history.-

periencing

annual rate

the -automotive

notorious for its

November

k

to

summarize

To

a

still have the second or third best

opinion, however,

decline

suffer

substantial

In my

strong.

aforemen¬

1.1 million units. Credit will prob¬

Grand

This is because

million above the second highest

year,

ably be eased within the next few
months.

enact

mar-

sales have been close to

car

levels above those of the past few
months was during the scare buy¬

be expected to bot¬

the

at

com¬

Second,

adjusted annual rate of hous¬

tom

as

ing which sales

However, the

may

negative factor

mort¬

mortgages may carry
higher rates, they typically re¬
quire
a
larger
down
payment
which prices some people out of

ing starts

Used

question that the
a

national economy

FHA-VA

of

generated.

the market.

no

industry is

the

the

these

conventional

ally

in

rise in the going rate of

volume

gages

tive.: There is
auto

above

in

tl?e

auto sales into proper perspec¬

been

a

interest

in¬

such mortgages are

on

The

stronger

a

relative

car

this I

credit

credit.

terest rates

used

year

Incidentally, this may be a good
place to 1 put the current decline

a

been

ment required to buy a

ago.

Housing is es¬
pecially vulnerable to changes in

written

has

re¬

16%

about

down

were

from the record volume of a year

reflecting, among
the tightening of

things,

sons.

^

result of the increased debt
burden

new

year,

mortgage

agriculture and
road program.

running

are

development is

a

ing.

outlook:

Although the over-all dollar fig¬

now

for

billion

quarter

Baume

several

farm

loans

auto

on

price and down

$1

1953

that the cost of defense will rise

as

just about the lowest level in

of the lower

of this year.

in

Such

second tightening credit.
is likely that just about all of this
However,
it
has
been
made
year
earlier levels, and stocks
$8 bdlion above a year
decline took place in the "autos
abundantly clear by the monetary
represent less than a month's sup-"10^0 a?d an all-time .record. This
authorities that any overall weak¬
and parts" sector, which totaled
ply.
Used car prices have been spending is playing an important

over¬

peak,

at

figures,

for Durable Goods
billion in the first

have the breakdown

activity is
a

sociation's

cars.

dropped

Administration

in the period ahead. Other Federal spending will probably also
delinquency rise as we extend more aid to

<

ket for used

^quarter

the

Despite

are

the annual rate of Consumer

Expenditures

jri mid-1954.
•

Department of Commerce fig¬

ures,

hower

concerned. According to American Bankers As-

readjustment" is already manifest
According

to

.

distress insofar

any

repayments

rates

where the "rolling

area

not caused

is Consumer Durables.

expansionary
movement

likely at this time.

more

crest of the

or

the year. A total of not
than
1.2
million
appears

more

to

prove

be

p r o

late to at¬
goal of 1.3 mil¬

official

y

•;

arid 1954. However, new and im-.
ever, that the unprecedented rate proved weapons require increased
of credit expansion in
1955 has amounts of money and it is likely

for

now

r-wv..-.

-

It should be emphasized, .how-

the easing will be too

stages
"rolling readjustment." The
are

S399

debt.

pression.

certainly not impossible

and

cago, a
ers

J.

Cook,

H.

M.

Byllesby

Company, Incorporated, Chi¬
member of the Bond Trad¬

Club of Chicago, has returned

home after
He would
many

a

siege in the hospital.

enjoy hearing from his

friends

throughout

the

country—he resides at 463 Lenoxt
Oak Park,

With

111.

Goodbody & Co.

(Special to The Financial Chronicle)

BOSTON, Mass. Emlyn V. Mit¬

chell, Jr. has joined the staff

of

Goodbody & Co., 140 Federal

St.

v

Volume

183

Number 5544

...

The Commercial and Financial Chronicle

(2967)

Continued

from

6

page

spectable
kets.

Public

more

Utility Securities

Iflternat'l

By OWEN ELY

For

Niagara Mohawk Power Corp.

the

futures

banks

are

mar¬

much

liberal in

extending credit to

,;in ^ the

commodity
trade
has its market

."firms

Commodity Exchanges
Prosperity and Growth

about

Today,

15

where

a

.concern

protected by futures contracts.

grateful

am

>
for

your

time

to this audience

attention

have

you

for

and

given

me.

the

Your

purely domestic basis. They rough agreement. The commodity day-to-day concern, I realize, is'to
for
at least
three
undoubtedly responsible for' futures markets are a truly Amer- efficiently take care of the needs
understood that at times Niagara coating
enormous surpluses ican contribution to stability and and demands of your customer?.
against it marketwise since last has also supplied power to the which make the freeing of the confidence. The free flow of com- But in the process vou are aesummer—but its far from being Commission, when badly needed., market
from government inter- modities aided by the marketing complishing a larger mission
"out." These were, (1) the conThe power from the Schoell- ference temporarily impossible, -facilities of organized commodity,the effective functioning of our
troversy over the St. Lawrence kopf station had been sold under
I think it is of great significance exchanges have materially con- commodities markets.
*
project with the New York State special rate schedules with indus- ; that the Council of the Interna- tnbuted to the continuing rise in
Power Authority, (2) the recent trial companies at a rate of about tional
Chamber of -Commerce, our standards of living and have
n,.AM|
passageof the Lehman Bill by the1 3 mills per kwh.'—a very low rate which met in Paris just-a few"favorably affected the American^ tl3C0DS0Il 3110 IllaVlft
? Senate,
which would give tiie* on which the company probably days ago, decried governmental consumer. Let us export this conNiagara
Power
project
to
the did not make a very big profit, measures that restricted the free- cept of market freedom via com-. Jj|g qQ0|*Q |gQ|J
Authority instead of to Niagara To the extent that the power from d°m of importers and exporters to ^modity exchanges to the free peo-9
,I#~
Mohawk and four other utilities,'-the Falls used by the Schoellkopf negotiate freely the terms of their pie Of the world.
Robert J. Jacobson of Benjamin
and (3) the more recent rock slide station is no longer available the transactions.
The Council, at the
I would go a step further than. Jacobson & Co., New Jersey Stato
at Niagara Falls which demolished;-, new rates for this power will retime, stated it would ask the- Secretary Dulles. I recommend amateur golf champion, won the
two out of three units in the big fleet the increase "in cost of obF-r1;
Rations to study the possi- that the South East Treaty Or-1 low gross trophy of the New York
•'
Schoellkopf hydro .station n e a retaining power elsewhere.- : " "
-imy of-removing the main ob- ganization be adopted to the same' Stock Exchange Golf Association
j the Falls.; The stock dropped from*
Niagara Mohawk Power, one of
the largest
power
producers in
the country, has had "three strikes"

of

25-cycle

power on

firm basis on a
years.
It is are
a

axiu

yvui

luslVJ]lcr;>

—

.

v.,

f

-

*

"

"

-

"

'

.

last year's high of 3614 to & recentr

low

of

28%;

then

recovered* -to'

At that level,

30.

around

paying

wuai.

mucumic,puiuc

has not yet

mc wiiiiwhj'

formulated

$1.80, it yields 6%, which is gen-

Engineers

considering the size of the
company,-the equity ratio of 34%,

damage

from-'fire

Section

3A

still

are

-.

erous

a'year ago, at-36 and* molished

About

-etc.

u.

i paying $1.60,-the yield
;

4.4%.

•'

-

;

.The first two factors
.

of

long-term

*: issue

only

was

only

were

*

.

gloom. ; Let- me call commodities exchanges.

station
station.

<•

Thf»-f»nmnanv
The. company

built;

*
'
7"-.
t is. uncertain

i mission lines and the allocation of

unit

„

.

^t^this

,

..

nntinnc

,,

urninh

orh

...
hii

r»_

r

/•*

i<=

ls.r

rency

to

the extent that- com-'

iinterests/in

"
1: ' futures
tiihe^ what-abroad,

'

commodities

■

•

.V

1

*

over the east course. Mr. Jacobson

.

_

spending, millions

of dollars on
Low net honors and the Board
trade fairs throughout the world.'" '6f 'Governors Cup were won by
1 suggest that we introduce a new/ Albert Franklin of Franklin & Co.
-

remittances

make >

can

,r

"Mr..?Jacobson won in a- drawihg
with Robert Grant of Clark, Dodga
&• Co., who had the samer score
J

modified.these^Statei^is^currently^ played the west course.

eohtrols have

Controls

,

\pv/ikotiO'dc

*•

^

ttr1

can

-

0

.

capacity of 104,000 kW".

iiopttul tnat V.is

deriving the Foot Golf Club in Mamaroneck,
from the free* N/ Y.*• '.
. - *

h^entiow tdnne developmeht-J
^whith nmy havehe^ implications.. Acquaint World .With Commodity
iLxcnanges
nations which are bur-

nearly ono-third of the -totM

fnr thp
for-the

barriers and

your

.

.

....

-trade

de-

not

was

by-the rock slide. 'This
a

imn.n,ro™.«»

*-However, the picture is not one greatest benefit

and ".flood

which

.

or

significance.
The
the building of trans-

over

...

unit had

^„„.

-Recent Improvement

-

the-

studying

1

;

•

•»

plans.-:

any

slant — show vto

the

leaders

of with 90—24—66.

George Shea ox
was the
wo^£;Jbe .-original. cost pi the?,
'
modity exchanges can lead to the low scorer in the concurrent fv
Robert Moses*head of the Author- Schoellkopf-plant was only $84., > ^
|
i^ee enterbrise formation of truly world- markets'" nancial writers golf tournament,
lity. It will be disappointing ybf perykw.f^but_. this _of - course was*ity
with at ei.
tur
'fo function ^rnnpriv unless \vp an^ how free world markets can- wun at 81. "
properly
we dIia. "°w i ee wona mdiKeui can;
■
course
if the company isn't al- back in the 1920s. Tne 200,000 kw.~
.'0s.
,p .. f
anH that i*
trnkm
contribute to the peace and prosSt. Lawrence Power-was

,

amicably
...

„

„.the

kw....e^t,of-auch rebuilding

for the

of settling

purpose

.

•

wit'h'<'Eur?P* and- Asia how the'com- "The Wall Street Journal"

commodities-'transaction,
comparative freedom. '

compromised by the company and

.

,

_

___

lowed to build the Niagara

ect,

which

to
.

much

the

has

is
__

devoted
„—

well-qualified

so
—

effort,;; but;
doubtless

would

company
>mpany

be

hpH nnwpr in anv
allocated power in any PVPnt Thp
event. The
Senate Bill, with its strong public

preference provision, is in

power

a

__

GoIge ^bui^; byWashing"e which

proj-!

•ton^t^r P?7^1o^°UHWa £ears
! $Z1V p^ kw Press
leporis
#"

©oi*"

i,

iiMieate^^t

-iA

k

bulla.

c

k

*

m>

Schoellkopf

for

ferred

law and should be modified in the

cost

House and

any

event, whatever.the

conference.

In fact

t6 .two

units Orily,

about

$170

new

may

seem

slow

at

do

onA

to

hpliMrP

-T

in

\xro

dustty has made tremendous for-'

this
ho

"pan

c+riAoc

ixrarrl

in

cprx/ind

^

seas

plante

(Special to The Financial Chronicle)

friends

.

.^

over-

essors

-

..

•

^

weeks

and the producers, proc-

and

•

modities.. I

*

••

.

NATO for Economic Betterment
r,

consumer

40 years ago

distributors
can

of

few

,

R..tn

com-

Ji-

_nj

Pllfh

R

BeitO and Ruth B.

joined

the

staff

of

Vr{cu„u

r

most banks Were un-'

Jamieson Adds

r'

to

,

•

Staff

(Special to The Financial Chronicle)

^

-

■

HSby flaVu

Minneapollj

Associates, Inc., Rand Tower.

Secretary of

ago

~

w

recall that some

willing to exterid a line of credit
^
it seems rather unlikely that the
commodity;
i^jsht cost, the company should be gtate Dulles raised the question, of to any firm in thereon
House will act, at all this year; ;all°vved to «earn - a 'fair rate
of using the North Atlantic Treaty trade if that firm usea the futures^
(inn
if
mccor)
hill
Kir
l'etum On the nCW" investment.'
mn'rlroh
TPiridonllv +ho hai
two years ago it passed a bill by return on the new investment. <' •
Organization as a vehicle for eco-1 markets. Evidently the banks felt
A

MINNEAPOLIS, Minn.—Gorden

fhp

hnth

country and ;I believe we can be ward strides in serving both the,

makingkw.. In.

per

•

We have a- times but, over the years, our in-,'

0f SQme help to our

.

the

Progress

^ob-.education

re-

oniy^ $35;
which{•-presumably, re-

million,

»

side the Iron Curtain.

westmg-.

hOUSe Electric thinks it COUld

conflict with the New York State

in

13

2 With Minneapolis AsS03

of peoples everywhere.

applies to the United States
as.well ao lvj all uuici uuuuiu «uicio .wen as" to an other nations out-

ST. PAUL,

)

Minn.—Walter Pis>

v

nrtn

-ij-omr-c

a

.

o

'

decisive majority favoring

ara

Mohawk

Mohawk.

; The destruction of the two units
at

Schoellkopf raises many new
questions, however. So far as the
Effect

current

con¬

President '• Machold

cerned,
'■

earnings is

has

on

been-^quoted

as

endars 1956

profits

decline

below

Earnings
*

of

calendar

It

last

-

been

Schoellkopf

could

be

sold

industrial

.

.

confirm

to

the

on

:

.

basis

;

these

of

pub-,

;

because of the

factors involved. The

many

from

$2.22.
for the
forecast

year's

had

year

estimates

was

only

power

25-cycle and

to

number

a

plants around Niag¬

Falls

ara

■>

$2.30

lished information

of

should

about

difficult

is

that cal¬
not

stating

months ago.

some

with

who

instead

of

the

current.

(Many of these companies

some

ing

use

such

modern

power

60-cycle

time have been convert¬

gradually

60-cycle.)

The

company was

able to restore

serv¬

ice

few

within

chasing
other

old

clock.

hours

extra

some

utilities

some

*

a

to

far

than

after

by

However,

pur¬

reported,
if

down

more

poses

than

ing, the

level

the

The 20,000

(which
under

is

be

Mohawk

be

has

Ontario

whom
erable

it had

permissible

taken

up

Commission,
of

no

was

something not quite

re-

ner

is

with Jamieson

now

Endicott

Building.

of

an

is under

offer to buy

any

no

circumstances to be construed

as

an

offer

to sell or as a

solicitation

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

on

for

for

tax

company

NEW ISSUE

June 15, 1956

pur¬

books).

book

value

$7,500,000

of the stock-

made

in

surplus

Securities Investment

and

account

be

"normalized"

While
time

in

'
it

to

is

assess

catastrophe

the

;

*

Company

of St. Louis

income

.

impossible
the

with

any

(A Subsidiary of General Contract Corporation)

this

at

results

of

the

accuracy,

4%% Sinking Fund Debentures due 1968

the

effects .do not seem
at all
disastrous to stockholders if Niag¬

gets the "breaks"
expects and deserves.

which

it

Due

Dated June 1, 1956

June 1, 1968

■

Ware & Co. Opens
.

DALLAS,
been
Burt

Texas---Ware

formed

with

Building to

securities

Price
Co.

&

offices

in

engage

With

in
a

The Prospectus may be obtained in any State in which this announce¬
ment is circulated from only such of the undersigned or other dealers
or
brokers as may lawfully offer these securities in such State.

business

the

Shelley, Roberts

j(Special to The Financial Chronicle)
BEVERLY HILLS, Calif. — H.
Richard

100% and Accrued Interest

Christiansen is

now

Merrill

with

Lynch, Pierce, Fenner 8C Beane

Shelley, Roberts & Co., 9486 Santa

The First Boston

Monica Boulevard.

Corporation

G. H. Walker &, Co.

Salomon Bros. & Hutzler

shortage with

purchased

amount

though it has

heavilv

account.

Commission
to

our

matter of its power

the

be taken

announcement

securities, business.

/

Treaty with Canada if
the power is going to waste). Niag¬
ara

This

is

about half that much

feet of water at the

said

there

presumably any large tax savings
resulting from the write-off would

Falls licensed to Niagara Mohawk
is now available to the Ontario

Hydro-Electric

J

tho-

from

summer

by about 400,000 kw.

Ann

in

am

be¬

range

might be reduced from $20 to $19.
The adjustment would doubtless

the

exceeds

I

With 11.6 million shares outstand¬

had it occurred in December when

loan

..nKlnln

re-!

million,-, it

can

n

ngure

Treasury books (however, the
plants may
have
been
written-

has

peak

or

will

$20

52% tax loss

a

difficult

more

ani

4-4

betterment.

be

course

net

nomic

the

running

thesituation

been

$10

i

.

Niagara

estimated

Tne

cost.

depreciation

tween

of

will

the

on

ara

by

power

and

less

production

hydro units around the

have

would

books

corresponding

.

equipment,

for

The actual write-off

Niag¬

a

"dump"

from

Shelley, Roberts Adds

consid¬
power

contract for buy¬

SAN

FRANCISCO,

ing firm power, and the Commis¬

L.

sion has assured the company that

with

it

Building.

)vill make available 225,000 kw.




Hallgarten & Co.

L. F. Rothschild & Co.

Calif.—Jas.

McCray has become connected

Shelley, Roberts & Co., Russ

A. G. Becker 8C Co.
Incorporated

(Special to The Financial Chronicle)

Central

Republic Company
(Incorporated)

Estabrook & Co.

Laurence M. Marks & Co.

&

Co.,

21,>1956

The Commercial and Financial Chronicle... Thursday, June

16

(2968)

could

firms

three

vast

reap

benefits. Of the three, Hertz.

is

a

1.5

STREETE

By WALLACE

alone

Avis and Couture, Hertz

THE MARKET... AND YOU

Securities Salesman's Corner

public corporation. It has
million shares outstanding

(listed

the

on

Big Board);

By JOHN DUTTON

no

preferred but $25 million of
The

worked off its
it

jitters. Now if

only

work
good
rally is assured.
can

enthusiasm,

a

*

This

has

market

stock

*

week,

some

up

summer

week when Poor's Investment

in such

some

category

a

47

cents

first

the

in

share

EDITORIAL

a

quarter

time

from

umn

tired, and he said to me, "I

will

re¬

talk, finally I said, you are wast¬

I

ing your firm's money. You don't
think I'd buy any stock over the

time

to

(against 38 cents a year ear¬

member that during

lier) and is considered to have

have prepared it

fair

growth possibilities.

Distillers, Pfizer,

❖

*

.f

done

have

tobaccos

Among favored rail issues
Chesapeake

at the moment is

& Ohio

Railway, the seventh
recently. Phillip Morris
has come into attention, how¬ largest in the country in vol¬
ume
of revenues, .which
ever, for two reasons. First,
little

the 16

years

week after week
for the "Chronicle," that if I have
stressed any one point in security
salesmanship above all others, it is
that I

Money-Making Rail

Air Lines.

The

Diversified

A

believed

tried to

have

and

emphasize that sincerity of pur¬
pose
in
plaeing
the
customer's
welfare

is

first,

successful

basis

the

for

a

invest¬

the

in

career

of

Some

us

capable

more

are

than

salesmen

there

others,

personality traits, energy patterns,

popular-priced areas of southern West Vir¬
mentholated
cigarets called ginia, eastern Kentucky and
One
group
particularly
Spuds getting a West Coast southern Ohio. Recovery in
made "hay" — the cement
introduction
next
month. coal output gives it a big po¬
shares, the darlings of the
Then
Wall Street's "Figure tential, but diversification is
vast projected Road bill.
also important to this money
Philberts" have come

and other factors that enable some

the selloff of two weeks ago.
*

up with
Alpha Portland, General, Le¬ the notion that PM will
prob¬
high, Lone Star, Penn-Dixie
ably experience the widest
put on a good spurt, sup¬
percentage earnings gain
ported by such adjuncts as
among the cigarette makers
Caterpillar Tractor and this
year. Net is projected up
Bucyrus-Erie.
to the $4.50 to $4.75 per share
jfe

•!{

rich

the

serves

of

brand

new

#

*

introduction of a

the

maker.

C. & O. is
a

record $8

up
a

earn

share this year,

from $7.25 in 1955. Such
showing would encourage

earnings and less work and, al¬
though I don't agree that anything
important

as

long climb, characteristic of
growth issues, since back in

a

far back

on

with

point

yields almost 7%.

and

has

Can

American

boosted.

Now,

that

almost

The main

work?

Do

is

There

thoroughly do

how

you

sell?

or

it

and

difference

a

important

very

advise

you

is

a

one.

6%

dividend

for

the

stock.
#

been

❖

four

the

of

Pennroad

Corp. is another

by Standard & Poor's. low-priced issue that war¬
for Although it has limited ap¬ rants some attention. It has
or

sales

magic,

twist

(which isn't new)
a

short-cut

in

new"

will give

business

to

people

and

prices

seven

slower, methodical, purposeful ef¬

exist

*

❖

and

income

lis

equally secure intends to distribute in cash
Among depressed issues longer-term growth prospects all of its 1956 net investment,
income as well as net longfinding favor these days is are important. #
#
term capital gains in excess
Schenley Industries. Its stock
ACF Industries has taken of available
suffered from the unusually
capital loss carry-,
on
new
support since its re¬ over. The cash distribution is
high excise tax on distilled
cent
optimistic report. This expected to be made late this
liquors imposed in connection
with the Korean War. Things diversified company in freight year, with the balance to be
look better down Washington car manufacture, electronics, paid before June 30, 1957.
i'fi
*
'
missile devices, nu¬
way for a general reduction guided
clear
in
excise
taxes.
energy
and tank car
Rockwell Manufacturing
Schenley's
book value is equal to around rentals, noted that net for the Co. comes well-recommended.
$52

share,

a

after

and

senior

obligations,
its
working
capital
comes
more than $37 a share —

about twice the current
of this

all fiscal year ended April rose Yielding around 5.6% the is¬
to $6.08 a share from $5.17 in
sue of
this valve, meter and
net
the preceding year. This did
to
power tool maker appears at¬
or

price

sje

*

If the market continues its

dull

cents

the

share of "other

have been

46

earn¬

retired, there will

official

be

for

a

account

ings." By next winter when
all the preferred stock will

equity.
*

take into

not

talk

about

some

length of
kind of a stock dividend or
time, it can be expected that
split, according to company
specialties will come in for
officials.'
the best play. In this connec-'
❖
*
*
ways

any

tractive
well

attention.

Barium

some

Steel,

This may

take

a

a

good time to

second look at Certain-

also

low

presents

priced

some

steel strike for its labor
tracts

the

to

run

August.

The

Electric

tie-in

wall

of

end

General

recent
with

Barium

facilities

of

sort

some

of

come

up

list

of

a

"marked-down" issues, there's

generally

an

flurry. Such

immediate

was

the




case

three

that

as

gypsum

Certain-

It appears

manufacturing
the

division

this

can

months the elec¬

recent

utility shares have had
bad

The best

time

a

marketwise.

explanation for this

is

rising bond and preferred
stock yields which have ex¬
erted pressure on utility com¬
mon

stocks. Due to the recent

yields in the
major producer of declines, 5%
and its products Best- market are plentiful and in¬
show initial

*

*

If the current trend of

panding

car

| The
time

ex¬

rental continues,

think that personal

always they

as

provide them with

amount of business pro¬
vided they make enough calls, see
large

a

the

stimulate

emo¬

usually

and

people,

based

reactions

tional

investor's pen¬
obtaining "quick profit."
gullible

the

upon

chant for

Frankly, I don't know of much
can be done to eliminate

else that

misleading,
of all

advisory services sac¬

respect by far. This
as a plea

rosanct in this

considered

be

to

for further controls on the securi¬

ties
an

,

We

business.

certainly
of

overabundance

now

icy,"

the

mittees

the

of

com¬

SEC

N.A.S.D., the

state Securities
and laws, the stat¬

the

Commissions

I

fraud.

against
our

am

of

the

(and always have been)
regulatory situation is.

and

far

as

it

as

the sale

concerns

as

writing this column
expressly for securities salesmen,
I'd like to offer just one sugges¬
tion.
It has proven itself for me
for other

and

men

in the investment

long time.

If

business, if

you

clientele

request
ject

you

now,

think

you

rarily
arouse

that have been
business

a

long,

new in the
building up a

are

are

don't

be

tempted

mav

produce some sales

just because they tempo¬
gain
the1 attention
and
the cupidity of a potential

customer.

Some Pertinent Examples

views
do

not

coincide

"Chronicle.
as

expressed
necessarily
with

They

at

this
any

Recently
received

a

one

the page

that I would send you a

person
a

report on

growth company, etc."

this

It

was

signed by the same person whose
name
appeared on the circular.
Now
there is nothing wrong in

him.
He
with me
else on such' a

from

mail

receiving

couldn't open an account

could anyone

nor

flimsy basis

If

Right Way

than

more

are

you

this.

as

The

sales¬

a

if you are in this business to
help people to live better, sleep
better, and have more income now
and
later; if you
believe that
something good costs money and
that something worthless is never
man,

cheap, if you conscientiously feel
that

you

few

short

among

are

your

tribute

this earth for a
to try and live

fellowmen and con¬
to the world's

something

betterment
of

on

years

within the limitations

ability, then continue to
to help people

your

do the best you can

be

to

more

according

millions

are

investors

successful

to

their

There

needs.

in

people

of

this

Make that
your foundation stone for success
and you will never regret it. Let
country who need help.

those who think they can

find the

short cuts learn the hard way.

;

Halsey, Stuart Group
Offers Boston & Maine
R. R.

Equipments
Stuart & Co. Inc.
yesterday
(June

Halsey,
associates
offered

20)

of Boston and
Maine RR. 4V?% equipment trust
certificates, series 1, maturing an¬
nually March 1, 1957 to 1971, in¬
$4,200,000

clusive.
The

certificates, second

ment of

a

to

maturity.
the

install¬

proposed issue of $18,-

to yield from
according to

4.375%,
Issuance

certificates

authorization

are

and sale of
subject to the
Interstate

the

of

Commerce Commission.
The
is

to

entire

issue

secured

be

of

certificates

by the following

eouipment estimated to cost $23,151,130: 1,574 box cars; 326 hopper
cars;
two

100 flat cars; 32 coaches and
baggage-coaches.

Associates in the
Dick &

offering

Co.;

are—

Merle-Smith; R. W. Press-

prich & Co.; Baxter,

nois

of my good clients

and

Freeman

Ira Haupt
Co.

Co.,, Inc.;

Williams &

& Co.; Gregory &
& Co.; The Illi¬

Inc.; Wm. E. Pollock &

Shearson,

Hammill

&

Mullaney, Wells & Co.; and F. S.

Thi$

investor,

mentioned

will remember I

"You

most intelligent

the

presented

of

full report on the sub¬
At the bottom of
in longhand was written

Co.; McMaster Hutchinson & Co.;

York

those of the author only:]

a

long distance call from
(1,500 miles away).

New

those
are

in

for return

coupon

a

company.

by "Gimmicks," by any ideas that
for you

impressively

enclosed which I could use to

was

4.25%

salesman, dealing with

a

and

people

printed and

stock."

"growth

was

510.000, are scaled

underwriting of securities.

But

so-called

circular

The

of Pol¬

conduct

business

regulations,
utes

where

priced

located

have

regulation

"Statement

the

with

circular

a

from a firm
thousands of miles from
I live.
It offered a low

Nor are some of the

kinds.

not

received

I

advertising

come-on

investment

is

Recently

addressed to my home

Sons;

Indiana.

article

*

the press aloner but

or

solicitation will

cated

tric

confining

not

are

oppressive, overdone, and compli¬

a

1957-58. Based on projected
earnings Bestwall is expected
to
begin as a $50 stock.

telephone,

that

in the next year.

they

themselves to the use of the mails,

by opinion

earnings clude such important units as
of close to $5 a share, and
get Duquesne Light, Union Elec¬
up to $8 to $10 a share by
tric' and
Public
Service
of

"Marked-Down" Issues
When the services

each

Teed shares held.

wall

gives it added potency.

with

for

con¬

as

division, that will

the

Products.

Recently the
issue
company announced it would
possibili¬
ties. The company could be "spin-off" its Bestwall Gyp¬
strategically set if there is a sum—give one share of Best-

relatively

gain

its

increase

rather

a

Teed

as

Power Tool

In

be

capital

yield. Company an¬
nounced it has begun an ex¬
pansion program at its Delta

tion the substantial decline in

Vanadium could attract

for

and

who is only look¬
speculative accounts and

"sale."

a

are

ago.

years

a

stranger,

tion by someone

are pres¬

fort which the majority of truly
paid
successful men have found to be
Until peal for short-term specula¬ officially been converted to a
the only answer to success. I am
recently they languished in a tion, the issue, returning regulated closed-end invest¬ quite sure that in the investment
trading range for about a 4.5% at current prices, is at¬ ment company. A 5% stock business we no longer have a very
year, and are just now coming tractive for individuals and dividend has been declared, large percentage of the former
type of individual.' But they do
alive again.
institutions to whom secure and the
company reportedly

times

them

from

nothing,

do you"?
If
you have the confidence of sub¬
stantial, intelligent investors, you
won't have to worry about their
reactions to this type of solicita¬
complete

business.
There are
impatient with the

any

who

those

believe

some

about

company

a

know

I

this, but I don't remember having
met the man, talked with him, or

Success

who

those

are

some

customers. These

#

month

some

There

that

ent

stock

the

as

Short-Cuts to

No

them

yields

"Stock-of-the-Month"

touted

five

effort basis, I
with those who

quarrel

is,

han¬

be

partial

a

no

work less and earn less.

,

Generally speaking,
they have tripled since 1953
rule

should

investments

which would compare the hope that the current
$3.63 a share in 1955. $3.50 dividend might be

The stock

as

1949.

now

advising clients on

as

their

range,

some as

modest

..

The cement stocks have had

1953, and

Some

with

satisfied

than

money

securities.

selling
are

men

have

expected to
a

others

more

dled

.

sjs

*

make

to

men

which

are

bituminous

there's

in

telephone,

ing for

business.

ment

let him

this col¬

Those of you who read

Cyanamid, Halli¬
burton, Kaiser Aluminum,

American

recently Reynolds Metals and United

forgotten groups showed re¬
newed vigor.
This occurred
mostly when the leading
groups,
like the steels and
motors, appeared to be tiring
after sparking the rally from

earned

--

National

*

attractive

Service listed seven

stocks

It

debt.

is

a

former judge

now

re¬

Yantis

&

Co.

Inc.

Volume 183

Number 5544... The Commercial and Financial Chronicle

(2969)

Alexan ler Named President of

The Choice of

N.Y. State Bankers Association
Ploch.

Other

officials

association

new

Perkins, Vice-President and

include

Richard

Warburg & Miralia

By ALEXANDER WILSON

.

Advice which is seldom heard

President of National Bank of Geneva succeeds William F.

.

Kuhn, Loeb lo Admit

Profession

a

June

at

college

commencements.

S.

Writer rates Intellectual, Aesthetic and Artistic
accomplishment
more
soul-satisfying than the accumulation of Wealth for

George S. Nichols, Treasurer.

Vernon Alexander, President, The National Bank
qf
Geneva, was elected President of the New York State
J Bankers Association at its 60th Annual Convention, on
June 15, at Spring Lake, N. J. He succeeds William F.

Wealth's sake.
"This

wonderful

money-mad

at

the goal of the

country

times

of

because

ours

the

great majority.

be

may

said to

Almighty Dollar

Contrary to

be

almost

belief,

common

money

effort, enterprise and hard work.

dividual

wealth

or

operation

governmental

and

Little boys

acquisition

this bountiful land of

is

not

born

of

and big boys

is

than

more

caprice

or

Wealth

ours.

a

be

to

seems

does not grow on trees in
the result of long patient

printing

is

In¬

press

chance.

in

time,

as

in October and November of 1929 when

so

good

many

themselves fi¬

nancially and paid for it in the national liquidation losses which
followed those hectic days.

Richard S. Perkins

ideal

new

Ploch, Vice-President and

Chairman,

Trust Committee,
Franklin National Bank,
County Seat Office, Mineola.

Company, New York City, was elected
Vice-President, and George S. Nichols, Executive VicePresident, First National Bank in Highland Falls, High¬
land Falls, was elected Treasurer.
Bankers

of New

York

State

also

elected three

to it

men

governing body, the Council of Administration,
three-year terms:

for

Anson F.

Sherman, President, The Citizens Bank of

Vice-President, Guaranty Trust Com¬
of New York, New York City.
York

State

Bankers

Association

has

tion.

banking houses,

savings banks, and foreign bank agencies.

California's New Rule
Commissioner

of

Corporations

stipulating requirements of

a

Uranium Issue Sales

on

promulgates

broker selling

agent for seller, securities of

as

principal,

On
pany,

of

one

the

above

no

offer

Stock

Broadway,

or as

Carl

to be

appear

too

grandiose

Ronald
M.

Peck

Keiffer

W.

H.

Stephenson,

Commis¬

Corporations

of

of

nership.

Mr.

Keiffer

are

limited

Stockdale

partners

competent

fornia,

announced that, effective
May 23, 1956, all security broker

ested

John G.

issuer

pertaining to

BALTIMORE,

or

Selling

of >Broker

Principal

Agent for

as

Seller

Securities

for

or

of

Company
Producing

or

Uranium.

or as

uranium

unless

prior

such

filed

to

with

at

least

sale

the

he

48

Md.

of the New

members

Exchange,
Standish
neth

S.

on

July

1

shall

event

for

the

issuer.

In

such

not sell such

as principal, or as agent
seller, within 48 hours after
filing of such additional in¬

formation

as

of

than

a

balance

date

not

with

the

the

Opens
Los Angeles Office

sheet

days prior to the
with the Commis¬

filing
sioner, prepared by

an in¬
dependent public accountant.

Albert

Frank-Guenther

has

of

under

the

Clevenger,
from

New

direction

recently
York

the

of

Russell

will

received

complete and on-the-spot service

(the

for

to

its advertising and public rela¬

original issue of its securi¬

tions

ties.

clients

fornia.

any

rights, warrants

of

or op¬

tions to purchase securities

The

in

Southern

San




Lynch, Pierce, Fenner & Beane

Incorporated

Cali¬

Stone & Webster Securities

Corporation
;

firm, with headquarters in

York, maintains other branch
in
Boston,
Philadelphia,
Washington, D. C., Chicago and

located

con¬

Merrill

Kidder, Peabody & Co.

</

offices

whom

issued and the

seat-

Goldman, Sachs & Co.

Glore, Forgan & Co.

Blyth & Co., Inc.

-

Dean Witter & Co.
■

/

New

outstanding, the terms aqd
conditions
thereof,
to
sideration therefor.

legally offer these

Smith, Barney & Co.

"

statement

may

compliance with the securities laws of the respective States.

enable the agency to provide more

consideration

detailed

be obtained from the undersigned only

undersigned

H.

transferred

This office

by

of

rities in

opening

the

the

may

in those States in which the

branch office in Los Angeles

a

announced

itemized

statement

Copies of the Prospectus

Law,

Inc.

An

"(3) A

Share

Commis¬

Albert Frank

earlier

90

issuer

Price $18.25
per

sioner."

the issuer:

/

the

broker may

a

have

Commissioner

"(1) An audited

$5 per Share

"The Commissioner may request
additional
pertinent information

concerning

Francisco.
at

1308

The

new

Wilshire

vard, Los Angeles.

office is
Boule¬

June 20, 1956

The Ohio Company

-

-

-

C.

York

Stock

will

admit

or as art

Incorporated

Par Value

John

McCleary, Jr. and Ken¬

216,950 Common Shares

to

—

Battye to partnership.

hours

following information concerning

"(2)

reference

production,
operation or

securities

"A broker

may not sell as prin¬
agent for seller, secu¬
rities of a company engaged in the
search
for
or
production
of
_

cipal,

Ranco

&

Legg & Company, 22 Light Street,

to

engineer

Mr.

Beer

Legg & Go.

<

operations.

Requirements

Prospecting

with

exploration,
and
mining

stock issues.

Text of the rule follows:

"538.

mining

and

To Admit Partners

showing the status of the

licensees in the state must adhere
to new Section 538

handling of uranium

a

disinter¬

and

of

and

part¬

Company, which will be dissolved.

a

NOT A NEW ISSUE

"(4) A statement prepared by

Cali¬

York

Boardman

to

producing uranium.
sioner

New

Exchange, will admit Wil¬

be construed as an offering of these securities for sale,
solicitation of an offer to buy, any of such securities.
The offer is made only
by means of the Prospectus.

buy,

or as
or

61

Exchange, to general partnership,
and

distinguished list

their main objective.

circumstances
to

July 1 E. F. Hutton & Com¬

liam V. Stockdale, member of the

world" for the

as

on

Siegmund G.

City, members of the New York

choose

to

hope then that these altruistic aspirations, leading ulti¬
mately to Fame, Glory and World Distinction for intellectual and

Almighty Dollar

Exchange,

admit

•

were

accomplishment, will not

Stock

will

Admit Three Partners

us

This is under

538

prospecting for

company

a

Rule

new

nation

our

the

of the

*

E. F. Hutton Will

Moses, Leonardo da Vinci, Benjamin Franklin, Louis Pasteur,
Washington, Jefferson, Lincoln, Robert E. Lee, Dwight D. Eisen¬
hower, Bernard Baruch, Shakespeare, Saint Francis of Assisi

artistic

Miralia

T.

partnership.

youths and maidens of America, and
that a larger number of our sons and daughters
will, in ,the years
to come, choose the fine arts and
distinguished achievements of
mind, hand and heart, in preference to the sole acquisition of
wealth, affluence, luxury, a life of ease and the material rewards

holding approximately
banking resources of the na¬

Other members include investment

■

of

it would not be long before America would rival the
finest things in art done in past civilizations and thus widen the
writer's choice of the most versatile names in the world's
history:

Let

David

Warburg and David T. Miralia to

vocations

"out of this

as

members 555 financial institutions

one-third of the commercial

30

the arts,

adding the names of more Americans to this
of immortals would only be a matter of time.

William R. White,

New

in

race.

If the youth

York

June

greater attainments

efforts

many sided Winston Churchill, and two of the world's
outstanding humanitarians, Ex-President Herbert Hoover
and Albert Schweitzer, in addition to such world renowned women
as
Madam Curie, Helen Keller, Sarah Bernhardt, Elizabeth Bar¬
rett Browning, Sister Elizabeth Kenny and Florence
Nightingale,

Henry Neale, President, Scarsdale National Bank
Company, Scarsdale. ;

The

human

and

and Trust

pany

urging

career

New

most

Arcade, Arcade.
J.

as

Warburg

Kuhn, Loeb & Co., 30 Wall St.,
New York City, members of the

Almighty Dollar, the writer
younger generation with a

of an altruistic character,
painting, music, sculpture, in¬
vention, ethics, literature, poetry, religion and statesmanship, not
for money returns alone but
primarily for the love of their pro¬
fession, their country, their fellows and the edification of the
such

Richard S. Perkins, Vice-Chairman of the
Board, The
First National City Bank of New York and
President, City
Bank Farmers Trust

The

offset- to the pursuit of the
that we should imbue the

an

believes

George S. Nichols

G.

or

souls from Bootblacks to Presidents over-extended

As

S.

sometimes admonished that the

are

possession of wealth is the yardstick of success in
America, where nearly everybody, almost without exception, has
been living extravagantly
beyond their means in recent years,
with a day of
reckoning certain to come again unless we wake up

Vernon Alexander

17

(2970)

One

A Real Look at

Dept.,

Tucker, Anthony & Co., New York City

sees no reason

issues throughout the country,
to condemn all toll road bonds

not

are

a

measuring

mainline

V4 When

the

brought

1956

year

with

what

it

a3most

to

about

turnpike

began it
amounted

revolution of

a

feeling

bonds.
Eagerly sought after by investors
and

revenue

institu¬

tions

alike

durin g

t.h e
few

previous

they
suddenly ap¬
peared to beyears,

m

o

the

e

"'Pecks

Boy"

Bad

the

of

securities
Col¬

markets.
umn
umn

after col¬
of

news¬

g.

Southern

I.

McKelvey,

Jr.

than

two

retired

road

one

on

turnpike

of

toll

some

State

Parkway

on

Long Island, partially opened less

magazine
space played
up the lack of
revenue

If

the

and

paper

financing.
facility has a tight
financial squeeze ahead of it, that
fact should be properly appraised
and acted upon.
But no good is
accomplished by depressing mar¬
kets
through the dissemination
of only the unfavorable aspects of
the picture. Isn't it time someone
said
something good about the
turnpikes? Has anyone seen com¬
mendatory articles about how the
Pennsylvania Turnpike is steadily
reducing its debt before maturity
date, so that by June 1 of this
year, they will have retired, by
serial maturity and by call $43,040,000 of their original debt? Has
anyone
headlined the fact that
criticisms

scarcity

or a

ago,

years

some

has

already

of its debt from

plus earnings?

Is

there

any

whatsoever

traffic

On

figures were
not measuring up to previous esti¬
mates made by the engineers.
It
collection

toll

big

might be that what was written
v?as
justified. It also might be
that

a

lot

it

of

unnecessary.

was

is

now

collecting tolls

the rate the engineers thought

at

would be achieved in .1989?
and

others,

Those,

facts to be borne
along, for it
will be a big year of commence¬
ment for toll projects.
The bal¬
ance
of the year
will give in¬
vestors a Chance to analyze their

in mind

as

are

1956 rolls

frightened
many investors to the point where
they sold
their turnpike bond
holdings
regardless
of quality.
Having discovered a wormy apple holdings more critically for more
in the barrel, they assumed that and more turnpike facilities will
One

the
\/as

'of

thing is certain—it

content

entire

also worthless.
one

the barrel
In the words

of

prominent

turnpike field, '-so much

jifjm

the

in

man

pessim-

This

is

intended

not

In

order

be

to

a

Follyanish refutation of previous

for

public

confronted and

hasty

not

jump to

conclusion' based

on

a

the

earnings of the first few months.

traffic

Cau,e for Anxiety

the

mates

traffic

or

should

ality.

It

too

tolls

will

with

other

terial

toll

for

So

again, the

receipts
again

ma-

and analysis -by
of
tollistics
will

therefore not be available.

terest

V

t?

Virgin
On

the

,«i

a

contribu

e

to

from

running

the

ou s

LouisviHe

southward

bethtown.
a

Jan.

Eliza-

_

a

planned for
construe-

easonably
This toll load will be

July 4 date tooks

sure.

section of the country where no

existed,so
its traffic figures will p esent.a

ton

road

Previously

traffic

A

engineer

has

three

unknowns
to
deaf; with
trying to appraise the traffic for a new tollway.
They are

the

the

earnings could

grQSS

the normal growth of traffic
area during
the construe-

road, (2) how much of

which

£f

estimates

„in

state

1n

m

gonstruction .costs
more

than

interest

quired

could

have

cushion

period
prove itself

long

good

a

to

anxiety

any

ma-

project

Kentucky

which

in

without

indenture,

bond

the

as .re-

reserve

additional

time

qf

in

the

full

additional

one

by

that

?side

to vset'

on

the part

0f the bondholders.

scheduled

Also

for

opening

50 mile section

a

.

.

Scheduled for

City to
points

Wichita and
Although new, to

Topeka -to

south.

Kansas, turnpike facilities are not

n^w

entirely

to the area for Okla¬

homa's Turner

Securities of the United States Government

two years.

Studying the engineer's
normal growth in
during the construction
for

area

period of the road and comparing
it with figures at hand for state
wide traffic growth in Kansas, it
would

appear
a

opened is that nearest the eastern,
border.

month

This

comprehensive reference volume
widely used by investment officers,

or

conclusions
records.

institutional investors and others

mark
that

Government securities.

eight sections of this
133-page handbook are:

•

Credit and Debt

4

in

In¬

quite

But
of

he

Budget

like

sas,

Factors

•

Taxation of Income from Securities

Affecting Commercial Banks

Prices and Yields of

est

out

they

of

tion

institutional

pleased to furnish copies to
investors upon written request.

Boston

Pittsburgh

Chicago

Cleveland

San Francisco

thqy

dent

The

Philadelphia




for Indiana,
the debt inter¬
bond
proceeds.
All
road,

do

costs until Nov.

Treasury Securities
1

We will be

distortion in the fig¬

funded

must

in

saved

FIRST BOSTON
CORPORATION
100 BROADWAY

•,

NEW YORK 5

tracts.

the

on

operating
15, 1957. In addi¬

is

pav

have been most provi¬
husbanding
tfye funds
their

construction

con¬

Figures recently given by

Authority

officials

indicate

the

possibility of their having
enough such surplus in their re¬
serve
funds to provide an addi¬
tional
two
years
of
interest
charges.
into

a

If

1,

its

roads, has
dept until

To illustrate the
funding operation,
the need for the

1957.
this

of

on

forget

can

normal traffic growth of

the area
cut the

right in half—in other

the

of

to be

induced

long waiting period before
has
to
finally appraise the

too,-has

other

some

interest

funded

one

prove

first

could

a

worth

Ownership of the Public Debt

again, it could

immediate import, for Kan¬

no

estimated'

fact

But.here again the investor will
have

«

border,

This

ures.

Corporations and Credit Agencies

whole.

a

A Cushion for Kansas

completely

Chicago.

cause

Securities of Government

as

men¬

greater

western

near

a

been

of the
heavily

the

end

have

more

the eastern

it is at

as

cities

three

than for the state

value

industrialized

April, 1954

April, 1956

•

•

mind

in

traffic

east-west

will

tioned

Oct.

state

Management Factors Influencing the

Public Debt of the United States

The

bear

must

one

—

the

the

metropolitan

the

around
of

areas

toll

instance,
roughly parallels the turn¬
pike—is only about one-fifth as

and the World Bank

•

early

growth

which

U. S. Government Securities Market from

•

the

from

reading them—if they
wide
of the
engineers'

heavy at

•

catch

that the latter has
short of require¬

might, or might not
be important for it is possible the

diana—on Route #20 for

The

to

should

little

This

ments.

In

appear

interested in United States

•

It

two of

heavy summer
traffic.
Nevertheless,
investors
and students alike might be led
afield
if
they
draw
too
hasty
a

is

Ohio

or

Turnpike has been

operating successfully, right "next
door" as it were, for more than

fallen

No

to the

word

no

contrary—is the entire 236 mile
' Turnpike ; from ; Kansas

Kansas

specific date has
yet been set but the section to be

156

Turnpike.

\

-

Oct. 10 debut

an

have heard

—we

mile east-west Indiana

the

of

con¬

Thruway.

at the Yonkers barrier.

estimates

Early Figures

into the
the

of

should raise toll
for the entire project and
such increase will be plainly
visible in the record of receipts

the

early in July is

section

any

-More

tbat,
.We. understand the
hopes
to
have
enough
} £ becauge of savings

York

New

vital part of
the Nyack Bridge
a

revenue

road

would'put'the

black"-henceforth.

the

than

Indiana Misleading

SEVENTEENTH EDITION

early

Its- completion

ratio

67%

the

to

traffic

feeds

trolled

of

be accumU-

j/62 th*

id

terializes

the

months

jatecj before anything has to be

jf

(1)

1957

.

when

tion of the

the

for

This is

City line.

the roadway to

This

almost six

that

means

Jan.H,

proceeds.

bond

Yonkers

from

has

cushion

a

until

debt

Qf

dut

because

provided by funding interest

great

in

scheduled

Also

Department.

is

year's

stuay.

interesting

This

on
,

weather

bad

1982—that

section of the New York Thruway

,

*

problems were magnified by
conditions, but now

tion

the

1

to

analysis—previously indicated to
be superfluous—will be difficult.

of

margin

fall, from present appearances of
the project somewhat doubtful-of
accomplishment, is the three-mile

been

Origmally
inaugural its

and Hudson

congested Essex

County roads leading to the mouth
of the Holland Tunnel in Jersey

Highway

t

?u0re,n°fmile Kentucky Tu np
tU^k^Sil\lS%CS; lli
the 40

Hudson

for the cost of maintenance and
0peratj0n js paid by the State

a

however, there is
new facility opening

4,

should

Actu-

the bends and retire the

on

mentioned

Extension of the New
project. This is the im¬
portant stretch of this road—the
part that will create a bypass of
County

Jersey

principal according to schedule—

Territory Being Exp ored
July

the

until

—•

—

—

engineers would

roaci

opening

support the
is, pay in-

*

a

0f

the

of

City. Again, however, tolls will
probably not be segregated from
other receipts of the Authority so

is

existant

both 57%

by

new

order

actually about
traffic estimated by

sizable

there

safety

lumped

be

study

students

the

and

probably

Authorities.-

with

financed

was

bonds

lien

second

in

previously-

any it need not be too worrisome
to the holders of the bonds for

schedule?

per

engineer's estimates.

layed until sometime in Septem¬
ber because of delay in steel de¬
liveries
is the balance of the

be

not

Turnpike

as

to one-quar¬

reduced

was

the

of

really scheduled for June but de¬

inauced

to

must

than the statehave no way

it would seem that
one engineering hurdle has been
jumped. The other two still lie
ahead. What would happen in the
case of Kentucky if traffic should
not be diverted according to esti-

and the Pennsylvania
systems became a re-

would

-

the Indiana Turnpike suc¬
cessfully forever even if truck

ter

Much

mentioned

reserves

carry

of the turnpike

New Jersey

use.

so
analyze, however,
realize some of the
basic facts with which they will

they
be

is unwarranted."

available

become

the

im-

the

(and it has

to estimates,

just about every road to date)

on

At any rate,

across

linking

River

lives up

Next

sur¬

called in almost 10%
of its original debt in so few years
of operation?
Would it be news
that
the
Turner
Turnpike
in
Oklahoma

bridge

the

25

May

Delaware

the

which

md

uses

source.

However

iitn
the ex-

spare

in

reserves

problems arising from that
If passenger car traffic

of any

knowing.
Not

tension.

scheduled

cause,

to

dollars

million

rado having

This all developed be¬
in a few instances, traffic

0f

and

Extension

traffic

the

vicin'ty

the

But

mentioned would amply take care

although

realized

is greater or less
wide average we

whole

the

on

County

of the nation was put in

jeopardy,

whether
mediate

an

this

about

westward

carry

Indiana.

into

which

problems

possibly

might

counts made by
growth has been

traLic

State

the

just

interest on all first and seehen debt with a couple of

pay

ond

about the little Den¬
ver-Boulder
Turnpike in Colo¬

program

,

costs

operating
Hudson

hue and cry

on

ing- to

Ohio's

centuate

study

a

contemplated reduction of

of their truck tolls may ac¬

some

of the original
concerning the Kentucky issue it would seem that
the normal growth estimate for
the area was about 9%. AccordFrom

-

recent

better

the

of

prospectus

analysis might be pointless anyway.
Net revenues for 1955 on
the main line were enough to pay

another with
1/he result that the whole turnpike
traffic

truck

of

such

large,

so

are

because

area

facilities aLorded.

opportunity to judge the
project on its merits because it
is only a partial opening and the
least important part of the total,
Furthermore, its revenues are being included with the other receipts of the Authority for ail
revenues
from all projects flow
into one fund to service both the
first and second lien bonds. Since
the revenues of the New Jersey
little

few instances, traffic and toll collection figures
up to engineers estimates. Describes Ohio
and Indiana prospects, among others, and calls attention to
Pennsylvania Turnpikes contemplated truck toll reduction and
steady pre-maturity-date debt reduction. Finds worrisome
roads possess sizable safety margins in reserve funds, and that
early traffic and toll income figures can be easily misunderstood
because, in

the

have

will

investors

but

bonds

Mr. McKelvey

than

anticipated traffic- there
fore the turnp.ke was built will
would be no real- financial con¬
be "diverted"- to the toll road and
Extension
of
the* New
Jersey (3) how much "induced" traffic cern for quite a few years.
At present, some say truckers
Turnpike—the long bridge across will use the read—traffic not on
Newark Bay — was put into use. the highways at the time of the are avoiding the use of the Ohio
Pennsylvania, in the
It was financed with junior lien
survey, but whicn will traverse Turnpike.

By GEORGE I. McKELVEY, JR.

In evaluating turnpike revenue

wonderful cushion against less-

a

already A^he traffic on the free roads be-

has

project

new

partially opened. On April 4 the
first part of the Hudson County

Turnpike Bonds

Manager, Municipal and Revenue Bond

e

ChronicleThursday, June 21, 1956

The Commercial and Financial

18

this

should

develop

fact it would provide such

year

and

one

can

traffic

for the

words, reduce the toll estimates
by 30%—then, if passenger car
traffic

figures hold' up, Kansas
operate without financial
problems
until
1965
by
which

could

time

the

natural

growth

antici¬

pated by the engineers would put
them

back

tion.

On

into

top

profitable

of

opera¬

that, they hope

to augment that cushion with con¬
struction fund savings to the point
where

their

mandatory two

interest

reserve

close

full.

care
a

to

fund
That

year

would

would

be

take

of any

very

traffic deficiencies for
long time.

Early in November, if all goes
schedule, the remaining and
major portion of the Indiana road
on

is scheduled to go into

Here, however,

one

operation.

ought to make

Number 5544

Volume 183

...

The Commercial and Financial Chronicle

(2971)
allowances

beginning
since

for

an

toll

weather period

materially increased thereby. Al¬
though presently bogged down by
a
political maneuver—politics is
the

will only be com¬
reduced

the

with

mensurate

tions

opening in the

of the winter, season
receipts for the cold

proj¬

can

during that time.

Then

bond

ects feed

western

turnpike

country

have to learn to

many

turnpike

turnpike

unraveled

Nov.

of

by

during

jective. Running from Route No.
128 just west
of Boston to the
New York
State line, the road
should

snarls

the

days

ca^cxUiiy

ahead

attract

in

traffic

heavy

across the state.
Traffic in Massachusetts has been

specialized

areas

1950,

study their

the

same

that

ticipated

AIIJ

.

-

,

No Trucks

Hill,
bers

is

Winter

concerned.

the

change,

New

&

general

as

mem-

Stock

the

announced

admitted

Co.,

York

Mr.

Ex-

firm

has-in-chargeL.^ited

it

seems

9

eventuality is too
All one has
to do is drive Route No. 20, Route
No. 9 or some of the other heavily
Such

bed.

an

ludicrous to consider.

trucked Massachusetts roads to
realize that me new Highway win
offer

a

wonderful opportunity to

existent.

now

conditions

congested

the

escape

-

,

,V

..

*

Finally, the last remaining sec¬
turnpike
which has been financed is due to

tion of the Pennsylvania

late in the year although at
writing we have no definite
time schedule. This is the 73 mile

open

this

end of the north-south
Extension — the part

northern

Northeasten

between Allentown and the Scranton

area.

The 37 miles from

Al¬

lentown south to the mainline was

;nature,.
Thomas

W.

Hill

(3)

Darlington

Peter

duce

toll road
built up
estimates but

the

to

engineer's

this deficit

several

yet

In

different reasons.

sometime in 1957.

./The

I

into the reserve

account

the project

and finally a rela¬
small percentage of the
original earnings estimates will
carry the project comfortably un¬
til the huge earnings from the
of

tively

first

Pennsylvania's
becomes
available
to

sections

network

service the

of

new

Pennsylvania
zance

has

taken cogni¬

of slower traffic conditions
area

earlier.

The revision

is based

on

charging the user
proportion to the value of
travel over a particular section as
contrasted to the previous uni¬
form per mile basis.
The engi¬
the principle of
in

neers

feel

that

.body

fabrication

We

for "

know

that

Edw. G.

Chase, Jr.

or

other

forces

.

■

..

//
-

.

realized,"

^

.Lompetmye

« neer

the

.

^

potential

Walter

l.
■wtt

ij

Dempsey b. j.

Van

ingen,
j

t-\

Walter Dempsey,

T7-

t

is

B. J. Van Ingen & Co., Inc., municipal bond dealers and distnburate

affiliate

At

the

of

that

nounced

Hill.

Mr.

corpo-

Darlington.
it

time

same

was

Mr.

to

Chase

formerly

was

our

way

he served as an account
executive for the past 10 years.
where

to

transparhalf of a car de-

more

material

a

with

consider-

strength, resistance
climatic

;

vr

e

17

k

r

TWI

SAN
FRANCISCO,
Calif.
—
Ronald E. Kaehler, President, has

condi-

announced the election of Leonard

J. Smith to membership in the
San Francisco Stock Exchange.
Mr. Smith is a voting stockholder

to

«Morp

Clirysler 'engi- *f

and

and

of

morp

J*°re

t/faTfor

thp nart<?

/wil?

lie

in

dL-

be

the

of

of

the

member

firm

revenues

will




be

o£

nq

«i

can

assure

y0U)

wj^h

however, the

opP

to

material,"

+he

Mr.

—

of

i

t guch

component in the

self_lubricatine speedometer drive

—

ninion made

P

Chesebrough

said.

"I

Ahe

biggest hurdle facing the
piastics industry in promoting in-

o^

nvlon

y

confident

am

*

the Floor of the Exchange, and
Mr- Smith Proposes to devote his
entire time on the Floor on behalf of his firm. Mr.

that

the

same

ingenuity and creativeness which
brought about such rapid

has

Smith

same

and

the

heretofore,
firms

maintain

will

William

manner

This advertisement is neither

affiliated

offices

at

57

Combustion

Miami.

ton

Co.

are

B.

Engineering, Inc.

3H% Convertible Subordinated Debentures Due 1981

Hill, Darling¬
W. Hill,

Thomas

Dated

Darlington, Henry Darling¬
Jr., - Ernest M. Fuller and

Samuel

^

$15,000,000

They will have a di¬
system to Chicago and

Other partners of

of these securities.

June 20, 1956

Street, New York; Bing-

wire

any

NEW ISSUE

New York.

&

offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.

as

hamton, N. Y.; Miami, Fla., Chi¬
cago, 111. and 41 East 42nd Street,
rect

an

The

Due

June 15, 1956

June 15, 1981

Morse.

Price 100% and accrued interest

Smith, Barney & Go.
To Admit Partners
Smith, Barney & Co., 14 Wall
Street, New York City, members

Copies of the Prospectus

Exchange,
on
July 1 will admit George L.
Nye, Ernest
B.
Schwarzenbach
and

Mr.
and

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 distributed.

of the New York Stock

Caleb Stone to partnership.
Nye is in charge of research
statistics

Schwarzenbach

for
is

the
in

firm; Mr.
foreign

i

The First Boston Corporation

the

department.

BIyth & Co., Inc.
I

Glore, Forgan & Co.

■

Kidder, Peabody & Co.

With Paine, Webber
PHILADELPHIA, Pa. — Paine,
Webber, Jackson & Curtis, mem¬
bers of the

New York

Stock Ex¬

change,

announce that Frederick
L. Bowden and Richard D. Hardy
are now
associated with them as

registered representatives in their
Philadelphia office, Girard Trust

Company Building.

Stone & Webster Securities

Corporation

American Securities Corporation

Merrill Lynch, Pierce, Fenner & Beane

Paine, Webber, Jackson & Curtis

White, Weld & Co.
F. Eberstadt & Co,
Riter & Co.

Dean Witter & Co.
Estabrook & Co.
Wertheim & Co.

J:

Folger, Nolan, Fleming-W. B. Hibbs & Co., Inc.

is

an

experienced Floor broker, having
been a Specialists-Odd Lot Dealer
on the American Stock Exchange.

has

President, and Peter.
Darlington a Vice-President, of
B. J. Van Ingen & Co. Inc. The
municipal bond business of the
Van Ingen organization will, be"
in the

Stem,

the

been elected

continued

k

DleW o. r. kiXCrl. lvlGmDcr

.

an-"

Dempsey

with

the Chicago office of Merrill,
of plastics Lynch, Pierce, Fenner & Beane,

on

use

upper

abrasion

continued, "these plasties will

permanent^

a

M.

' tions and adaptability to complex
-ghapes," he noted.

ln£enl ^rM^nC£n all officersa^f automobile industry is not wedded
u' ?ray
Albert F. Haiback
of
which has become

trend

* able structural

to

Arthur

& Co., Inc.
,
..car.
Our goal now, as always, is
The membership was acquired
;.and light metals in terms of both ^ de^;/eompo^nS wS wiE " by transfer from bonn C. DougF0?1 and performance as well as require less and less servicing and lass> also a voting stockholder of
Jr. being suited to
^simple, inexpen- repiacement. The plastics indus- the corporate member firm. Mr.
S^ve Production.";
t
b
alreadv
fiirni<?hpd
Douglass has not been active on

Bernard J. Van

tors,

be

to

Required Characteristics

-•

"The

have to be competitive with steel

.—...—_

conceivable

would

de-*ency in the

n

t/'If .the. market
'be-

seems

according

Krensky, President,

de-

'

,

.tantalizing prospect

Must Ke

is

it

extending the
body shells."

to

re-

tive'

If—and

technique

a

we

that

me

-to

weight.

assemble steel.

veloped,

•

of

>

most

and

replace-? when—such

debt.

by the planned revision
of their toll schedules as mentioned
in the

Z present aay post standards

•

trend

favorable power to weight
ratios,'/Mr., Chesebrough said/ '

.

Secondly, they

unspent construc¬
balances, a goodly por¬
tion of which should surely find

tion fund

way

in

'

-

/ more

have very large

its

/

'

the

instance

Staff

:

be overlooked for

can

they,
too,
have
funded interest on the debt until
first

to

*

■

aPpllcaUont^^^tive/vith S

The continuing effort to
car

Peter

not

is

«By present dav cost standards

nlannine :

-signersv.constant struggle, to obtain ;mands

of

have

'•

engineer'

-latter- area-—-the "automotive

ton

Pennsylvania's vast

products

: ponents are made
wholly or
the: partmf plastics," he added.

is

":.in this potential market;is .ln the

opened in November 1954.
Earnings on the newer sections
network

Add
of-their

use

AWrriMAAti

itfent, and whicji are less subject

expectations, it need be nothing
concern the investor for quite
a
period.
According to the last
report of the engineers on con¬
struction progress, the Authority
has a very large unspent balance
in its construction fund, in addi¬
tion to which interest on the debt
is funded until Nov. 1, 1957.
If

operating on its road¬

manu-

Arthur Krensky & Co.

:

cost, yet the progress in solving"
this problem has already resulted
in
Chrysler
Corporation
using

automotive

m

-to eorrosion -and

to

pike could sur¬
vive indefinitely without one sin¬

creased

L;°f ."lifetime parts'^parts which-form

short

the Massachusetts

plastics

-

,

only half the balances now un¬
spent find their way into the re¬
serve accounts,
and if passenger
car traffic
lives up to estimates,

the

plastics have many desirable featoward", much .tures which make them suitable
CHICAGO, 111. — Edward G.
/greater use/of .transparent mate- for
body shells.
The immediate Chase, Jr. has joined Arthur M.
.rials-iaJhe, upper half .'of car goal, therefore would seem to be Krensky & Co., Inc., 141 West
J j bodies, for. maximum vision and to devise a low-cost, durable
plas- Jackson
Boulevard, members of
|; a'light/airy' appearance."
' v - tic which could be formed and the New York and Midwest Stock
/'> (2) The trend- toward-the i use: assembled as readily as we now Exchange, as an account execu-

./UK The

.

of

gle truck

of^ Droduct

s*'

Even if

be falling

to

Ava/lil.fWr.A^

fh?ee
-^U-esuH, in. Wider

partners

seasonal traffic should be so light

that

"f J rtw'ci

corporation's, executive

.

period for such facilities.

Chesebrough,.• who

-

I

lean

the

de-

Citv< June 12.

Darlington

of

how¬

insofar

the

sign of. automobiles offer." plastics

'. do not .require,service

caution must be exercised
as early traffic returns are

ever,

told

Chese¬

.

-

Massachusetts?

on

in

tential market," Harry E. Chese-

»

for

As in the case of Indiana,

brough

needs

our

Mr.

:

appear

be realized.

may

.-Anticipated/ trends

to

rbr?ugh of Chrysler Corporation,;plastic water pump •impellers,v
bvIIIj uariillgion all(t • *•---told th^ keynote session of the. heater housings, and nylon bear- 1
lf
/-Society of the Plastics Industry's ings for door latch mechanisms.
Van ingen AttlliatC ;^.nnual Conference in New York About 250' passenger car com-*
USII

therefore
the normal traffic growth an¬
would

It

1955.

fully

facturers and scientists.

wholly

hurdle is solved.

manufacturers "a tremendous po-

in¬

an

.

pei^ie ntaK--

a

on

8%

period

basis, show

over

crease

of

months

two

statewide

components made

car

tremendous

cost

;
f

passenger

otoplasties, Chrysler's, executive engineerfore¬
potential market for plastics. as' soom as

part

up

-/and .'.expectations,"

it'

growing steadily since the bonds
were floated
in 1954, the results
for 1955 showing an increase of
4.6% over the previous year. The
first

sees

unwise decisions.

any

in

or

measure

"

Already using 250

probablystill to be

are

They were seriously

hurricanes encoun¬
early construction
and it will require good-working
weather to accomplish their ob¬
tered

prevail.

investors to

mvcsLinciHo

ing

there

in

.

mile east-west highway
15.

delayed

behooves

of cut¬

at each end

ting the ribbons

will

to create materials which will

,you

.

Seen in Tomorrow's Cars

the

therefore, 1956 will be

While

builders have every hope

their 123

indenture

it.:

use

turnpike
operation—one

the structure of

sure

tory.

Massachusetts

.

successful

and

eventful year in turnpike his-\

an

people may

—

progress in plastics in the last few
-/years- will, in short order, enable

Tremendous Plastic Market

,

of

All told

end of this vast
road will be tapping entirely new
too, tne

©n

feel

which all turnpike

on

The

bane

construction

ra¬

19

G. H. Walker & Co.

2#

The Commercial and Financial Chronicle

(2972)

instalment buying, the increase in
amount of initial deposits rer

Instalment Credit in Britain

the

It

more

posed
last

on

year,

sions

ings

tion

extent, it

the

is

of

sphere

automo¬

bile

industry

that

the

re¬

strictions

are

the

t i

e c

Einzig

they

In

v e.

trades

other
Paul

Dr.

ef-

most

f

cir¬

are

cumvented

on

large scale through the granting
of ordinary book credits. But the
amount involved in the case of the

a

sale of motor vehicle units

riod

has

dustry
not

has

automobile

the

declined.

Its

decline

position.

a

as

tailed

to

whole

been

has

extent,

some

it

cur¬

is still

save

we

situation

the

dissave

some

an

pe¬

less

is different

the spending of

accumulated

sav¬

ings.
Nevertheless
there
is
a
potential buyers have to pay considerable difference, because
larger initial deposit, if they dissaving means a reduction of

If
a

keen

are

enough

simply draw
lated
saving.

upon

To

to buy, they
their accumu¬
the extent to

the

to

even

apart from the fact that

possess

draw,

the savings

or

are

on

which

not prepared

that

if this contribution is not

effective

immediately

curtailment of the

good many potential buyers do

not

inflation.

produce

effect, they contribute towards the
achievement of the desired and,

effective.

a

pent-up

restrictions

credit

according to the critics, in¬

Quite

of

To the extent to which instalment

which this is done the restrictions
are,

extent

to

mand.
many

In

as

would be

immediate de¬

addition

people

as

to

from

John L. Gillis, Vice-President, Monsanto Chemical
Company (St. Louis, Mo.), was elected Chairman of the

of

Board

on
the period of
would therefore tend
to produce a disinflationary effect.

preventing
engaging in

John

Even to the extent to which

by

Needless
the

to

perfect. There
besides the

are

operation

the

say,

restrictions

is

far

General John E.

re-elected. '

is

based

consciously or otherwise on
ideological dogmatism. Conserva-.
tives and Liberals are opposed to
it

because

constitute

does

an

interference with the free play
economic forces/Socialists

posed

it

to

it

because

are

of

op¬

prevents

lower income groups from acquir¬

ing

consumer

the

circumstances

of

durable
it

goods.

In

is

something
political miracle that opposi¬

a

.

offering of these Shares for sale, or an offer to buy,
of an offer to buy, any of such Shares.
offering is made only by the Prospectus.

solicitation
The

*

NEW ISSUE

JUNE 20, 1956

99,000 Shares

poration,
M.

Crass, Jr., full-time Secretary-Treasurer,

Common Stock

The-MCA represents

r

The

Company is principally engaged in the production and
sale of a complete line of
single and dual nozzle electric hand
and hair dryers used in washrooms of
gas stations, office
buildings, industrial plants, schools, hospitals and a wide
variety of public buildings. The Company plans to commence
production of two types of hand, hair and face electric dryers
for home use. The "Company also
produces and markets.a
line of emergency electric
lighting equipment. The principal
office of the Company is located at 1324 Locust Street,
Philadelphia 7, Pennsylvania.

—

Copies of the Prospectus-may be obtained without obligation from the
undersigned or such other registered or licensed dealers or brokers m
securities in this Slate who may he participating in the offering.

Exchange Public
Committee, it was an¬
nounced by Exchange Governing
Board Chairman Frank E. Naley.
Mr. Young, who entered the se¬
curities industry in 1927, is the
regional governor of the Associa¬
tion of Stock Exchange Firms. He
is also

Stock

a

member of the board

governors

of

the

Stock Exchange.
Also named to

Director of Monsanto

of the

Leo

Los
the

of

Angeles

committee

board, Manufacturing Chemists' Association.

administration. He

joined Monsanto in 1933 at St. Louis
and subsequently served as
Export Manager and later as Director of the Foreign De¬
partment.
\
%
' *
: 7
as

assistant export manager

-

Mr.

Gillis

General Manager

named

of the com¬
pany's former Merrimac Division at Everett, Mass., in
was

November, 1949; beqajme a Vice-President in May, 1950,
and

became

General Manager of the Organic Chemicals
March, 1951. He was placed in charge of all

marketing functions in November, 1953, and
April, 1955.

In

May, 1954, Gillis was named to the Board of Direc¬
Mobay Chemical Company, a joint subsidiary of
Monsanto and Farbenfabriken Bayer of Germany.
tors

of

He

spent

economic

months

seven

mission to North

overseas in 1944 on a joint
Africa, the Middle East and

Italy for the Department of State, Department of Com¬
and the F. E. A.

merce

Gillis is also
ists'

Society, and

a

7

_

;

Director of the

Manufacturing Chem¬
American Chemical
member of the Board of Directors and

Association,

a

a

member of the

Executive Committee of the St. Louis Chamber of Com¬
He-is

merce.

Bureau

of

School, and
Louis

B.

Bahich, President,
Richards
&
Co.; J. Earle
Jardine,
Jr.,
partner,
Wm. :R.
Staats. & Co.; Chester L. Noble,
partner, Noble, Tulk & Co.; Lewis
J. Whitney, Jr., partner,
Dempsey.
Tegeler & Co.; and Phelps Witter,
partner, Dean Witter & Co.

Vice-Chairman

Missouri,
a

University.

In

of

•

-

*

79 Milk

-

120 So. La Salle

St., Boston 9, Mass.




(Special to The Financial Chronicle)

SAN

St., Chicago 3, 111.

Security Bldg., Miami 32, Fla.

William
in

a

BERNARDINO,
E.

Leonard

is

securities business from

fices at 434 West Court.

of¬

Research

,

r

7 7.

*

.*v",

/

'

June, 1938, Gillis married the former Miss Carol

Randolph of Clayton, Missouri. They have four children:
John, Carol, Ann Carter and Mary Barrett.

Form Medical

Management

Garvin, Bantel & Co.

(Special to The Financial Chronicle)

FRANCISCO,

Van Ness

Calif. —
engaging

Government

Trustee of the St. Louis ,Priory
member of the President's Council of St.
a

To Admit Four Partners

Calif.

—

Medical Management Control has
been formed with offices at 2107

W. E. Leonard Opens

.

a

was
graduated in 1933 from Washington Univer¬
sity, St. Louis, with a B. S. degree in business and public

SAN

~

Marketing and

Chemical Company and Chairman

m

Incorporated

of the productive

He

Hill

Floyd D. Cerf Jr. Company

90%

The New Chairman

Lloyd

Young,- general
partner
of
Lester, Rvons & Co., has been re¬
appointed chairman of the Los

were

.

John L. Gillis is Vice-President for

s

Relations

Price $2.50 Per Share

over

capacity of the chemical industry.

Division in

Angeles Exchange
Reappoints Young

Angeles

(50c Par Value)

was

re-elected.

elected to the board of directors in

LOS ANGELES, Calif.

Dryer Company of America, Inc.

elected Vice-Presidents of the association.

were

F.

more

Los

C.

The Dow Chemical Com¬

and R. C. McCurdy, President, Shell Chemical Cor¬

pany,

Monsanto
not an

V■ 7

-

American

President,

Leland I. Doan, President,

assume,

of instalment credit restrictions is

it

Towe,

reason¬

however, that in
many
times more instances the
dealers and the purchasing public
comply with the letter and the
spirit of the law. Most criticism
to

C.

quote many

instances of evasion. It
able

777.".

'77: :.7 W

Kenneth

Cyanamid
Company, was elected Chairman of the Executive Com-;
mittee.
'!. 7- /" :.'77';..7." .77. ;
7'*.
' 7'" '

other loopholes

of the restrictions may

Hull, USA (ret.) (Washington, D. C.),
a director of the association, was

full-time President and

from

mentioned. Critics

one

President, B. F.

Goodrich Chemical Company.

>. '

1 ■'

Sulphur Springs, W. Va.

in¬

replaced

are

J. E. Hull

Gillis succeeds John R. Hoover,

Mr.

-

credits

stalment

General

Gillis

L.

Inc., at the 84th annual meeting of the association, June 7,
at White

restriction

the

repayment

active and effective.

■or a

Manufacturing Chemists' Association*

by

up

tion to the restrictions is not

This is

the

repayment period, the larger

of

duction in current saving or from

effect is

Other positions filled.

mittee.

initial

primarily responsible for the in¬

dissaving.

by

and

curtailment of

result of the

a

the

stalment credits.

flationary trend during the im¬
on instalment cred¬
mediate postwar years.
unpopular,
and
even
It is
true, from the point of
though most people realize that
view of current consumer demand
they are a necessary evil, they are
it makes no difference whether
subject to much criticism. The
the demand originates from a re¬
latest attack on them is based on

nullified

President

is in fact what is done in Britain.
At

are

largely

Chairman of the

as

re-elected

is

initial

if

increases.

the contention that their

Hull

smaller subsequent

accumu¬

Restrictions

its

mean

E.

instalments, unless the period of
repayment is also curtailed. This

of

On the other

of our

John

Kenneth C. Towe becomes Chairman of the Executive Com¬

the

Book

On the other hand, larger

deposits

pent-up inflation which accumu¬
lated
during the war that was

sufficiently large to make it worth
while for employers to concede
wages

Credit and

lated

Although consumer de¬

mand

inflation

General

Credit

book credits, the restrictions con¬
tribute towards the achievement
savings.'" Whilq the process of
desired
end.
For
generally
of saving is disinflationary, the
speaking it is true to. say that the
existence of accumulated savings
periods
for
which
open
book
represents pent-up
inflation. It credits are granted are shorter
was
the
large extent
of such than those of the customary in¬
we

sufficient, however,

been

of

hand

in¬

affect the over-all inflationary

to

between

is

current income.

our

effective that the

are

in

demand

difference

It

two.

Board.

amount

undoubtedly
unmitigated evil if during a

largely because instalment credit

restrictions

second

The

income.

accumulated

the

considerable
the

is too

large for that type of financing. It
is

and

means

John L. Gillis succeeds John R. Hoover

this is done their

deposit has to be followed,
more
or
less unchanged
subsequent instalments. The re¬
which was put aside in the past. duction of the permitted period of
repayment means that the trans¬
Saving and Savings Effect Upon actions liquidated during a shorter
Inflation
period. Credit is a two-dimen¬
sional magnitude. Its size depends
The
criticism
of
instalment
not only on the amount granted
credit restrictions is based on the
but also on the period for which
assumption that from the point it is
granted. Even if the instal¬
of view of the inflationary pres¬
ment
credit
restrictions
should
sure a reduction of "savings" has
utterly
fail
to
deter
a
single
the same effect as a reduction of
potential buyer from engaging in
"saving."
Yet there is a quite instalment credit transactions,
means

in

the

^IS

a

the
aside part of

putting

current

our

the desired

"t

on

"saving"

first

The

of

process

based

between

"savings."

believe.

to

us

is

criticism

Annual Election of Officers Held

the

To

Thursday, June 21, 1956

Manufacturing Chemists' Assn.

sav¬

purchases will have to be

Instalment

to the ex¬

even

like

would

confused

effect, even
though not to

their

level.

former

the additional ini¬

which

Their

desired

their

savings

on

to

ings, the situation is not nearly
as simple as critics of the restric¬

producing

are

its

to

of

amount

extent to which

current

deposit comes out of the sav¬

tial

since,

the

curtailed.

tent

instalment credits early
and reinforced on re¬
peated occa¬

assume

large

a

restore

liberal, customary instalment

draw

LONDON, Eng.—There are in¬

to

proportion of those
their accumulated
savings to finance the increased
initial
deposit will endeavor to

credit terms.

dications that the restrictions im¬

reasonable

who draw upon

Opines dissaving produces a reduction in pent-up inflation,
and that book credit used to circumvent credit control is still
effective than the

spending

potential

of others.

seems

that

indications of success, though not to the extent
desired, in Britain's consumer credit restriction program, and
finds ratio of effectiveness increases with the unit sale's size.
Dr. Einzig sees

more

the

duces
power

By PAUL EINZIG

...

securities

Avenue to

V.

Herbert

H.-

the * New

of

qngage in

business.. Officers

Richard

Garvin, Bantel & Co., 120 Broad¬
way,
New York City, members

a

are

Bibbero, President;
Salinger, Vice-Presi¬
dent; and H. P.Hibbero, Treasurer.

change,
ram

M.

York

.Stock

Ex¬

July 1 will admit Bert¬
Ostrau, Arnold R. Rune-

on

stad, Allan J. Stypeck, and Junius
W

Ppalcip tn

nartriershin

' ~

""

Volume 183

Number 5544

...

The Commercial and Financial Chronicle

21

(2973)

expected that 1956 net
some

increase

show

prAIIH

last year's fig-

over

llQilli IDA UrOUP

may

although the five months'

ure,

suit is

re-

understood to amount to

mm

■

■■

.

■

n

Vice-President,

Crocker-Anglo
Francisco is

National

Bank, San
Secretary Treasurer.

#

,

| 0 llOKI bOHTSfSilC©

a

few cents per share less than the

corresponding figure for the 1955
period. Favorable factors this year

By GERALD D. McKEEVER

said to include

are

for wheat

Chicago, Rock Island & Pacific
'Because of the essentially cycli-

locations

an

good outlook

a

shipment together with

adequate

supply

car

as

of

earnings as the basis of capital
appreciation. Thus very frequently

this
to

for

1955

of years

number

a

in

the

the

of

case

prior

milling

stocks

of the "Pocahontas" roads—C &

yields in spite of their time-tested

found

stocks

market

a

at

substantially higher price levels,
not only actually but
relatively,
lower yield basis, even with
dividend increases that have"

at

or

the

been

established.

required

the

In

it has

short

evidence

of

dy-

a

namic earnings trend to spark the

advance.

We

The former combination

witnessing a similar set
today in the case of

are

of conditions

Rock Island stock which
produces
better than a 7% rate of return

erecting

shape
,

in

Thus

'-

area

indication

no

offices

to utilize the
"

road

^ve power

so as

»
"

w.

George

.

Morris,
,

c

for this year is another
that would seem to stand

Reece
jr

P^lte„nt' Genera' DynamiCS C°rporation.
!m

-n

'(Special to The Financial Chronicle)

major

roads.

Secondly
physical condition
1

is
as

the result of the almost complete
rebuilding of the road and the replacement of its rolling stock dur-

ing and

after the

trusteeship.

vement of

evo

long period

of

o

__

Finally has been the
a

management that

bySitsI havingS converted

the Rock

Island into

a

eration but

( p
financial chronicle)
v ^ Conference meetings will be in
LOS ANGELES, Calif—Carroll the forenoon, Monday and TuesJ Thum is conducting a securities day, June 25 and 26, with a

lively
young,
planned ahead
fied

has

nevertheless

that

so

op-

it is forti-

"second team" of suewhich, it is b°lieved, is

by

a

cessors

ready to "play in the big games"
at any time.
The 7,920-mile Rock Ldan^ sysis well situated
for future

tem

growth,

but

character

due

the

to

granger

of its

territory and the
special circumstances with which
the road

result,
have

has had

its

tended

reduced

to

traffic
to

contend

and

lag.

crops

on

as

a

revenues

Drought and
hand

one

unsatisfactory prices

on

and

the other

1

CI1

v\

A ft C»

4-*»AW«

/~V

'PI-1

«Art

A

4-

a 1 O

0
C

A«

,,
*4 In

-,
•
1
_

,
H

IT

.

.
?

_

.
f

,
_1

„
i*

?

■

-

_

_

,

.

,
Jl

,
1

bPrins oireei.

ference

.

Form Sterne-Tolson Assoc.

will

coincide

with

The

official visit of the national Presi-

"•*•».-«— **•Summit to engage in

a

of replacing or rebuilding
of its dlder diesel unitsThe Rock Island is

the

Rock

only
total
the

and

Island

behind
but

has

that

behind

Central

trend

revenue

lagged
the

of

the

not

Class

average

Western

of

District

I

for
as

well.
may

surprising

seem

in

view of the road's ab'Iity to locate
new industries on its lines. In 1955

the Rock Island

locating 310
at

various

of

the

new

was

on

permanent plants

points

system

successful

along the lines

and

aTso

a^ded

73

temporary plants while 103 exist¬
ing

nlants

told

these

million

were
sources

expanded.
represent

investment

million additional

and

All

$1"38
some
$6

revenue.




some

■■ °

new

firm

win

the

on

to Edw.

maintain

New

York

'It^KSge" and

will continue
corporate

active underwriting
and

r?ties ^^? ?

municipal

secu-

Form Western Resources

a- «— ?•

DENVER, Colo.
sources

membership

of

103

banking and

Corp.

—

has

Western Rebeen formed

jags tas-fssz
^uuamg wconauci a aecunues

business, utiicers are verne n.
Ballantyne, President, Franz J.

Co., San Francisco. Accompanying

have been added to the staff of is Vice-Chairman
B.

Kretschmer, Vice-President; and

M. A. Miller, Secretary-Treasurer. ,
Four With Columbia Sees.
(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.

—

David P. Kane, Jone L. Suttle, Jr.,

C. Morton &

Co., 131 State St.

of the

Cali- of California, 225 South Beverly

fornia Group and Alger J. Jacobs,

Drive.

efficient

an

tered a deficit of over $16 million
in 1955 according to the ICC formula, or more than the corre-

sponding 1948 deficit.
ance

represented

sell nor a solicitation of an offer to buy these securities.
made only by the Prospect us.

This dtitiounccmcnt is neither an offer to
The offer is

The imbal-

the

by

business

passenger

is

road's
evi-

well

denced bv the fact that

•

350,000

passenger

Shares

train miles represented over 45%

of

total

train

miles

in

al-

1955

though this business produced only
a little over 9% of total revenues,

Halliburton Oil Well Cementing

To alleviate this situation the road
aims

to

reduce

5%

ahead

and

to

new

for

the

\

train

passenger

annually

some

extent

may

Company

Common Stock
(Par Value $5

per

Share)

it

be

eaumment such

the Jet Rocket which went into

CMcago

last

Feb.

Price

between

20

Peoria.

and

This

new

$78.75

per

Share

"Talgo" type train made the 160mile

2V2 hours faster than the

run

"Peoria

Rocket"

planted, an^
a

This

successor

freight train operPassenger business reeds-

ations.

operation

that

Philadelphia,

to its excellent

as

been

oldest Stock

in

operation overall, but this is due

results of aggressive traffic solici-

has

the

of

Rock Island was one of the first
BOSTON, Mass. ,— Bernard investment firms. Dennis H. Mc- Nunzio Tringali, and Richard J.
roads to start to dieselize. Tieseli- Atkins, Thomas A. Cahill, Ray- Carthy, Vice-President, The First Ulrich have become affiliated
fu I0"
J" ippp'Jit1,! mond
Chesley and True Tower Boston Corporation, San Francisco with Columbia Securities Co. Inc.

tation.

result

are

(special to the financial Chronicle)

P°wer was begun in 1937 and the

minimized bv

The

1906, Elkins, Morris

firms

American

in certain cases from three or were formerly with Continental Stevenson, 3rd, Secretary and
four hours to a matter of minutes. Trust & Security Corp.
Treasurer of the National Associanf
flip
Tclon/^
-froifrhf
^'ome of the Rock Island freight
tion.
trains are so fast that they carry
Four With B. C. Morton
The
California
group
has
a
mail- Modernization of motive

cent

traffic

one

memberships

aging Director and General Coun-

is permitted to do so.
In the meantime, losses

the

is

stokes & Co., is

the

Alfred L.

time

positive

Co.

Lowber Stokes & Co., established
jn 1905.
^

Mr. Davis will be I. B. A.'s Man-

ing also in reduced farm purchasing power, have conspired in rethm

Lewis,

Exchange

for Monday afternoon. The con-

\

securities

shipment to market, both result-

offset

Caspar W.
Howell,' J.
George W. Elkins,
H.

,
J

modernization of yards. The latter

mileage

to

be

?

Founded in

&

^"S1.n®%fr0n? ofilces at 618 South special Municipal forum scheduled

Davis, partner of David, Skaggs;&

which induced storage rather th°n

years

will

Charles

,

L1

and the reduction of grades, the Tolson & Associates has been
replacement of bridges and the formed with Offiees at 554 South

which, although rela-

highly efficient

be

Bethlehem, Pa. and

j0hn E. Heppe.

Pomp

AAV>J.'i:

Bldg.,

will

ton, Jr., John M. G. Brown and

'

business. Partners

ovnnl 1 AKtl

Branches

Edmund
G.
S.
Flannigan,
Edward B. Stokes, S. Grey Day-

Sterne and Wilbur J. Tolson. Both sel, Murray Hansen, and Robert

among

Title

Land

305

Partners

Davis

cLnnder ^ ?-ea1S- P& is its frainm°S' J35""1,'3', ^ r00Vnenr;t»H

its excellent

known

Huntingdon, Pa.
Warren H. Croweii

Sion1hafstemteilrhom^e that" y^rd" time" has"beTnt
tfp

at

maintained at

factor

srsiarewB tesetsasst

of the most drastic reorganizations

be

Morris, Stokes & Co.
July 1, and will have

Philadelphia.

program

Carroll J. Thum Opens

will

firm

new

Elkins,

effective

■

of

notable departure from the
rather level earnings pattern of
the Rock Island that has been seen
now for some time and the $12
million additions and betterments

mo-

to the utmost and to knit toeether
at the current market with a 100% 'an organization to operate the'&nmargin of safety, based both on tire plant efficiently and as inten1955 earnings of $5.54 per share sively as possible. The road and
and on the $5.42 average
per share
structures program has resulted
for the eight preceding years. The in relaying all important line with

2-for-I split effective last Jan. 20.
The basic strength of the Rock
Island situation may be summed

there is

The

any

to handle heavy trains

as

New York Stock

forthcoming combination of El¬
kins, Morris & Co. and Stokes &

.

as

a

at high speed, to modernize

firms,

Exchange, is being made with the

less if applied selectively in order
-t° induce traffic.

progress

Peoria

An¬

—

Philadelphia

members of the

,

Pa.

the merger of two

nouncement of

prominent

America will be held in Santa
Barbara, Calif., June 24-26, acand it is noted at this point that in the way of any increase in the cording to Warren H. Crowell,
the Rock Island is one of the sev- dividend pay-out rate. Thus for Chairman of the California yrouP
oral roads which have applied to some time ahead the market price and Partner, Crowell, Weeden &
the ICC for permisison to acquire of Rock Island stock will have to Co> Los Angeles.
the Toledo, Peoria & Western.
continue to depend on the appeal
v- Conference meetings, municipal
The campaign of the Rock Island
a generous rate of return from forums and talks by prominent
for increase and diversification of
present dividend. Except for national figures in. the financial
traffic is greatly helped by the some .sPecial development such as field are planned for the convensuperior freight service that it has a decisi°n in favor, of the Central tion. According to Crowell, prindeveloped as a result of the three-iand North Western roads in the cipal speakers include Dr. Mvles
fold program of the road's man- pending transcontinental rate case, Mace
Vice-President of Litton
siderable expansion
or projected in the

quality as investments. Only with
a
sharp upturn in earnings have
these

is

PHILADELPHIA,

Co.

Chicago Port Au-

companies

Morris, Slokes & Go.

of

/increases are placed■; at only '$6-.
million for this year, or possibly

large plant at Des Moines. It is
also understood that there is con-

O,

Norfolk & Western and Virginian
—which
produced
exorbitant

Association

Bankers

wnereas tne ireignt rate

thority in the Lake Calumet area
is served exclusively by the Rock
Island and that one of the major

widespread buying interest,

We have had notable evidence of

ment

a

alumi-

industries are expanding prodigiously. In the North, however,
it is noted that the initial devel-

dend is not enough in itself to at- 'Opment of the
tract

and

paper

num

well-protected divi-

a

where the

sas

the element of exceptionally high

yield from

spotted quite widely
the system, .but the
growth is understood

are

throughout

industry

To Form Elkins,

The

—

against

5,000-c^r shortage at last year's
harvest time, -A handicap to earnand of its earning power, railroad
most rapid
;lri£s» o.b* the other/; hand, is that
equities appeal- largely to »those to be on the Southern lines gen-* wa&e increases granted are estiwho are attracted by a rising trend _erally, but
particularly in Arkan-. matedto amount to $7y2 million

cal nature of the railroad

LOS ANGELES, Calif.

fifth annual conference of the
California Group of the Invest-

third

at

fuel

which

a

it

sup-

saving of

cost.

The

over

5%

in-

in coach fares of last May
the 15% increase in corn-

crease

and

1

in

Copies of the Prospectus may be obtained in any State only from such of the several underwriterst
including the undersigned, as may lawfully offer the securities in aucIi State. ,

muter rates granted last March 2.9

'by

the

Illinois Commerce Cornhelo to offset this

mission will
year's higher

but it

expenses,

was

stated that the commuter fare inwill

crease
on

this

not

service

a

trend

which

was

-

Revenues
so

have

far

this

LEHMAN

deficit

placed

at $1.5 million,

These

the

cover

June 20, 1956.
shown
year

a

better

and

it

is

BROTHERS

BLYTH e/ CO.,

INC.

Financial Chronicle... Thursday, June 21, 1956

The Commercial and

22

(2974)

Continued

from

page

do

5

Government and

benefit.

not

pension

$40

from

rose

reserves

It

therefore

is,

evident

quite

the economic
security of the people increases,
that in the future, as

The as more and more individuals are
savings of the nation are under¬ encompassed by private pension
otherwise.
The sav¬ funds, as more and more people
petition will, in all probability, going a great change.
are covered by social security and
ings, today, are to a very large ex¬
become keener in the future.
through service, or
To me, this great com¬

Here

again, in studying the for¬
mation of regional banks, one has
again to take one's hat off to the

supervising
and

cisions

national

authorities,
Their

state.

actions

de¬

and

guided primarily by

were

the welfare of the community, by
the

welfare

the
to

the

of

that

bank

was

Where

grow.

this

the

permitted
authorities
desirable

not

was

to the best interests of the

or

dis¬

a

by the regional bank,

regional

felt

it

If

district.

good for the people of

was

trict served

lic at large,

it

was

pub¬

fully

and

state

were

protected.

Savings

Competition

Commercial
,

the

of

that

>

the

commercial

of the state, and one may
the commercial banks of the

nation

as a whole,
is the compe¬
tition for savings from other in¬

stitutions,
discussed

a

previously

subject

savings will increase, and unless
sojmething is done to correct the
situation, the commercial banks
will
be
the
sufferers; and
the

and loan associations
the country, as far as

others

in

Placed

"Insurance"

and

Now,
a

gain

as

in the imme¬

What

the

is

to all this? ,:

answer

all this is

I believe the answer to

nobody can tell me that
saving—this is an invest¬

look

new

a

of the

at

State of

the

banking

New

laws

York.

labor pension and

as

fare

fund,

a

or

obtain 3V2%

a

Banking Law Revision Overdue

wel-

corporation,

ance—then

will

What

you

passed

have

revised. During these last 40
years, a veritable social revolution
occurred in the economy of the

ly

by them as tantamount to a de¬
mand
deposit,
and
particularly
where the
buyer of the shares
buys in lots of $10,000 each, and
he relies on a big word—insur¬

In

others.

years

since the statutes were thorough¬

what is considered

on

Forty-two

.

can

United

States, and still the banks,

state-wise

nation-wise,

and

are

operating under legislation which
was
excellent for the days when

realize that
the quality of the bank, the man¬
agement of the bank, its
past
reputation, is of no importance.

Here again
I .will not bore you with many
figures. The report is full of them.
by

will

diate past.

"Interest"

this is

of direct savings
with the others,
competition for these

the

and

Monterey, California.
Faith

homes—the percent¬

will not keep pace

savings
over

accumulating equity

growth

of

age

of $100,000 of deposits in a
New York City bank, and $500,000
in amounts of $10,000, scattered
ing

such

banks
say

in their

union, and I found that they had
cash of $600,000, the cash consist¬

all

are
own

and

ers

f

Existence

Banks'

confronts

—

day

in

and more

as more

people
become home
owners—
and already 55% of the people in
the United States are home own¬

to be exact, last Wednes¬
afternoon — I had the op¬
portunity to look over the pension
and welfare fund of a New York
day

ment, and the rate of interest paid
plays a very important role.
Where an individual institution,

Threatens

the greatest problem

Probably

unemployment,

other

investment funds. The

tent

not done. The

interest of the people of the com¬
munities

better, for these reasons:

not

to pass leg¬
islation which will enable these
cells to furnish this growing and

(3) The abnormally low rates of
which prevailed during

Growing Volume of Non-Bank
Contractual Saving

In New York and Rest of Nation
interest,

wide and nationwide,

interest

Problems of Commercial Banks
of

attention

banker.

billion.

billion to $57

can

the laws
be

were

passed, but may not
lor today.

appropriate

dynamic economy with all the
credit, all the lifeblood that it

'30's, when tnere was no de¬

the

capital, when the influx

mand for

needs.

gold from abroad created huge
reserve
balances, are a

of

excess

thing of the past.

Smith, Barney Group

■■

opinion—and I
say it is my deliberate judgment—
depressions of the type that oc¬
curred during the '30's, fortunate¬
ly for all of us, are definitely a
thing of the past. The low rates
which prevailed during the war,
when tne government fixed the
In

humble

my

Offers Ranco Shares

of

The low rates of interest which

prevailed

long as government
pegged and the

so

securities

sold

were

2l/z%

of the govern¬
exercised an impact on the

long-term
ment

entire

rate

structure,

are

of the past.:
From now on,
irrespective of
political developments that may
take
place in the country, the
credit policies will be flexible in
character. Money rates will fluc¬
tuate, depending on business ac-;
tivity.
But if you bear in mind that
the outrooK for loans is good, that
a
low in money rates is a thing
of the past,
tne obviously you
must reach the conclusion that the

outlook for the banks is good.

What

has

States
out

on

need

in

need

we

already

a

pointed'

been

deposits.

The future welfare and

the existence of many an individ¬
ual commercial
on

will depend
whether it will be able to grow

in

its

bank

savings deposits.

•Here again, looking at this com¬
petition, I believe one ought to

look at it, first and foremost, from
the

point of view of the welfare
the

people, not whether it is
good for the bank or the savings
and loan association, or the sav¬

of

ings bank, but whether it is good
for the people of the state and of
the

nation.
Commercial

counts

is

most

The commercial
maintain

a

the

banks have

reserve

of cash

Let

of

rate

the

A

the

problems

They

statewicie
-

must maintain other

liquid assets,
and they must maintain a certain

,

ratio of

capital against risk assets.
Otherwise, the supervising author¬
ities

and

are

their necks. And

on

I know there

which

are

actually have

deduct

you

institutions

no

capital, if

the money

borrowed
by them from the Federal Heme

you

Loan

Banks, and yet the people
place huge sums at their disposal,
primarily because of the big word,
If the commercial

banks

are

to

looking into this problem survive, if the commercial banks
are to be able to attract the sav¬
carefully, I have reached this
conclusion
in my
own
mind: I ings of the people, which, as I
indicated before—leaving out New
can very well visualize a flourshYork City—is 53% of their raw
ing community without a savings
bank, without a savings and loan material, something in this re¬
association, but I cannot visual¬ spect will have to be done.
The situation is more important
ize
one
flourishing
community
without a commercial bank. The than you realize, because the sav¬
commercial bank constitutes the ings of the nation are undergoing
cells through which the lifeblood
a change.
The savings are becom¬
of the community flows. The great ing more contractual in character,
majority of the commercial banks more negative in character. The
in the State of New York depend direct savings in the form of de¬
On

very

,

their time deposits, on their
ravings deposits, and unless some¬
thing is done, the commercial
on

banks

will

lose

out,

and

this, to

posits

with

mutual

savings banks,

commercial

at

did

in

the

mercial banks of the State of New

ple

or

banks,
the pur¬

save

York.

life insurance.

est

way of thinking, is the great¬
problem confronting the com¬

Let

give

me

you

just

a

very

few figures.
'
The savings deposits of the com¬
mercial
banks in
the state
in¬
creased between 1940 and 1955

by
J.56%; the mutual savings banks,
by 191%; the savings and loan as-

rociations, by 565%; and the credit
unions,
fverage

by

519%.

increase

Whereas
amounted

the
to

k'C0% during the period, the com¬
mercial banks increased only bv
156%.
And I dare say the situation will

become

worse

in

the




future

and

this, too, is bound to be realized
by some, and they will act on it.
And, whether you like it or not,
the completion from, the mutual
savings banks, and, notably, the
savings and loan associations and
the credit unions, will be keener.
And while, as commercial banks,
you know that you have handled
your affairs very well, that you
have a great deal of liquidity and
a strong capital ratio, always bear
chain is

in

mind that

its weakest link

ers,

the

same

rate

as

Today, the peo¬
through the purchase of
Today, the people
save through the pension systems.
Today, people save through con¬
tribution to

union

day the people

able to build

and,

as

strong

bank¬

you

keeper of your
want to keep the

sound.
What conclusions

can one

reach?

(1) The changes in the field of
banking that have taken place in
the state

well

as

as

in the nation

reflect the great economic
in

the

of

economy

growth

the state and

the country.

Since our economy is
a dynamic one, since the standard
of living of the people will rise,
since the cost of doing business
will increase, these changes will

considerable

Promising Banking Outlook

the outlook for banking,
earnings are concerned,
the outlook for the banking busi¬
ness is more promising than it has
been during the last four decades.

before,
as

far

The

as

volume

of

loans

will

in¬

crease,

That

is

which

the

financial

institutions

taken

place

in

the

States.

United

.'i

:•

%

Forceful,

Factual Advertising

'ine

competition

material
crease,

the

of

for the raw

banks

will

and I believe that the

in¬
peo¬

ple at large ought to know that
commercial

bank

is

may

that

commercial

a

be

no

it

that

can

home torceiuliy

in

a
a

pros¬

could

community

without

than

more

savings institution,
perous

exist

bank.

It

brought

be

your

aaverus¬

ing, that instead of laying stress
on the rate, you pay par¬

entirely
ticular

by E. C. Raney, its present.
Board
Chairman,
is t a leading

attention

services

the

to

automatic

of

manufacturer

tem¬

automotive

for

controls

perature

heaters and of automatic temper¬
ature
the

and

controls for
air-condi¬

pressure

refrigeration

and

tioning
industries.
It
is
the
largest supplier of such controls
for
refrigerators, home freezers
produces

major portion of the heater

a

con¬

trol

requirements of the automo¬
industry. The company op¬
five plants in -Ohio, and

erates

through a wholly-owned subsid¬
iary Ranco Limited, a plant near

Glasgow,

Scotland.

Pacific Gas & Eiec.
Offer Underwritten

By Blyth Group
The Pacific

is

ers

common

record

on

June

right to subscribe
ditional," shares of
ratio

that the bank renders to the copi-

the

12f> 1956

to 812,791 ad¬
the company's

of

period ends

in
for.

share

new

one

each 20 shares held. The

tion

Co.

stockhold¬

stock at $45 per share

common

the

Electric

&

Gas

offering its

subscrip¬

July 2, 1956.

on

•

Blyth & Co., Inc. is heading a
group of 99 under¬

nation-wide

chase

finally, I would like to
repeat just once moie what I have
said:

in

formed

was

1913

writers which

And,

has agreed

to pur¬

unsubscribed

any

shares

from the company.
the sale of the
used

Proceeds from

new

stock will

be

the company to finance
part its continuing construction

in

by

program.

The 12 months ended March

1956,

earnings

stock

were

company

its

$3.39

had

is

rate

share. The
dividends on

stock

60

cents

year

share.

per

shares will not

the

dividend

12,

every

The current quarterly

new

June

31,

common

per

paid

common

since 1918.

the

on

record

to

holders

July

payable,

1956

The

particinate in

12,

1956.

munity, and what that, particular
bank

done

has

nity, and let
because,

s

tne

lor

see

commu¬

Joins J. Logan Co.

what happens,

CSpecial to The Financial Chronicle)

you

said

million

(2) In spite of what I have said

sale banker

of

have

.

which

Ranco,

—
it has
population of

corner

the

that

PASADENA, Calif.
Houle

Co.,

is

J.

Rock F.
&

Logan

East Union Street. Mr.
formerly with E. H.
&
Co.
and
Dempsey-

721

Houle

—

with

now

was

Hansen

Tegeler & Co.

the United States will be over 180

thought that the day of the whoTe-

form

country, to adjust and adapt them
dynamic changes that

to the great

been

$68
a

coordi¬

to

just around the

from

$102 billion.
savings from

order

banking facilities of the

will be accelerated.

1950 to the end of 1955, life in¬
surance and pension reserves rose
to

the

search, in all probability the speed

of

billion

nate

continue, and, with the aid of re¬

because the cost of doing
equity in their business is higher.
Commodity
homes by the constant amortiza¬
prices are rising, taxes are bur¬
tion on the mortgages on their
densome, and the acceleration of
homes.
the corporate income tax payment
Just again a couple of figures.
will force many a corporation to
During the period from the end borrow from the banks.
up

Federal—in

and

know, it takes a long
time to change laws.
Our economy is a dynamic one.
Within a few years, around 1960
—which for a man of my age is

funds, and to¬

are

as

the

are

brother, if

they

past.

you

a

financial structure of the country

chase of shares of savings and loan
associations will not grow in the

future

my

far superior to
banking,
and

by

branch

as

"insured."'

Banks Are

Indispensable

is

company,

to

(against

their savings deposits of 5%.

me

holdings of Ranco stock.
Ranco
has applied for New York Stock
Exchange listing of the 1,000,000
shares.
\

tive

We

thorough revision of
laws, not only of

by American Motors Corpo¬
and
comprise all of its

and air conditioners and

•

United.

occasions.

numerous

banking

the

by

ration

thing

a

headed

underwriters

88

Smith, Barney & Co. The stock
is priced at $18.25 a share.
The
shares being offered, representing
21.7% of a total of 1,000,000 com¬
mon shares outstanding, are being

Out

Rates Are

Low

(Columbus, Ohio) was made
(June 20) by a group

Inc.

yesterday

rate, are a thing of the past.
Pegged,

secondary offering of 216,950
common stock of Ranco

A

shares of

reiterate,
again, the
State of New York, but also of the
confronting tne banks
nation. A revision of the banking
interest paid, as well as the word are great. Whether you like it or
laws of the State of New York,
"insurance."
the problem is.
not, the merger movement will
if it is done alone, without the
pushed by strong,
In that study of ours, we have continue,
At the end of 1955, the total
cooperation of similar legislation
economic and social
volume of deposits in New York made a great many recommenda¬ underlying
by the Federal Congress, would
State was as follows: $23 billion, tions as to how this situation can forces, and it is, therefore, abso¬
not solve your problem at all be¬
be
handled.
I
believe that the lutely essential that you study the
demand deposits; $5 billion, sav¬
cause some of your competitors, if
problem and not close your eyes
ings deposits—18% of all the de¬ most important recommendation
they do not like the state laws,
to it and say, "I'm 'agin,' it," or
posits were savings deposits. How¬ that one can make is that of put¬
change
overnight
and
become
"I'm for it."
You ought to know
all other financial institu¬
ever, if you eliminate the New ting
Federal institutions, and they are
the facts, pro and con.
York City banks, you will find tions, catering to what the people
outside of the breach of the state
Whether you like it or not, the '
that nearly 53% of the deposits consider as deposits, on the same
legislation; and' state supervision.
study has found that a holding
of the commercial banks' of the basis as the commercial banks.
We need a thorough revision of
company,
as
it operates in this
Slate of New York were savings
all the banking legislation—state
Solution Recommended
state,
a
well
managed
holding

bringing out certain points, I
merely indicate to you a few
facts to prove to you how great

state¬

to the legislators,

banker, as well as for the retail

Whereas

of

the

is

really

a

past,

few years ago many

was

gone

and

a

thing

the outlook of today

good for the

wholesale

people.

The

standard

of

With Powell,

living of the people is rising at a
amazing. We
have

become

a

nation

of

PASADENA,

middle

class

people, which has greatly
changed the buying and spending
habits of the peopie. The spend¬

M. Mummert is
Johnson

the fact that the
implicitly believes in
the doctrine of living up to the
Joneses and, as George Bernard
is

the

once

said, the middle class

greatest spending machine

that the

SAN

It is,

therefore, imperative that we call

Calif.

DIEGO,

Whitmore

/L.

Adds

Calif. —Frederic

has

been

added

to

the staff of First California Com¬
pany,

good Lord has invented.
this country is

of the nation's credit flows.

Maurice

(Special to The Financial Chronicle)

The outlook for

bright, indeed. The banks are the
cells through which the lifeblood

—

with Powell,

Powell, Inc., Security

First

by

middle class

Shaw

&

Calif.
now

Building.

ing habits of the middle class are
dominated

Johnson

(Special to The Financial Chronicle)

rate which indeed is

Incorporated, 625 Broadway.

Joins Conrad, Bruce
SAN
ard

FRANCISCO,

W.

Bruce

Hill is

&

now

Cal.—Rich¬

with Conrad,

Co., 235 Montgomery St.

Volume 183

Number 5544

The Commercial and Financial Chronicle

...

members

Morgan Stanley Group

Roadway Express Sik.

Offers Commonwealth

i

Of Australia Bonds

offering was made on
June 15 by an investment banking

An

underwriting group headed
Morgan Stanley & Co. and

by

composed of 68 investment firms
offered for public sale yesterday

!(June 20) an issue of $25,000,000
Commonwealth of Australia 15-

4Vz% bonds.

year

June

15, 1971,

The bonds, due

priced at 98V2
and accrued interest to yield 4.64%
to maturity. Principal of and bit¬
terest

the

bonds, which
obligations of the Cominonwealth, will be payable in
on

new

.

United States money.
The last

financing by the Com¬

monwealth

market

in

was

.000,000

the

United

offering

an

15-year <*3%%

December

of

group

headed

&

and

a

Co.

issue

new

class

A

cents)
at

$10

was

Glore, Forgan
Fulton, Reid & Co. of
by

of

States

of

$25,-

bonds

ber

of

shares

family

which

of the total

num¬

executive

(par

The class

A

presently outstand¬

For

Roadway,
company
J.

is
on

share for share basis.

chase all

of the
stock

of

bv

Carroll

J.

company

Roush

and

Roadway

With

Shelley, Roberts

(Special to The Financial Chronicle)

Express,

and
thereafter
the
will be headed by Galen

Roush

as

President

Executive

as

and

R.

W.

Vice-Presi¬

reported operating revenue v,B E V E R L Y HILLS, Calif. —
$39,744,053 and net income of Noeth B.
Gillette, Ray C. Moora
$1,064,081.
Annual dividend re¬
and Patrick A. Traynor have been
quirement on the 567,500 class A
added
to
the
staff
of
Shelley,
shares being offered is $397,250.
Roberts &

Jacob

Jacob Paley is engaging in
Express, Inc. is one
largest motor common securities business from offices
carriers in the United States.
It 39 Broadway, New York City.

a

Roadway

provides freight transportation
over
more
than 27,000 miles of
the District of

and
was

at

to

Three Join J. D. Creger

Duffy Co. Admits

Partnership

:f! Edward J. Duffy

&

bers

of the New

incorporated
in

under
1954.

the

The

laws

of Creger

company's

&

Co.,

124

North Bright

Avenue.

change,
bert

Mr.

on

York

Stock

A.

Leikauf

Leikauf

is

firm's trading

to

in

partnership,

department.

in

The Commonwealth

accept tenders of the matur¬

3y4%

the

imium

bonds

bonds

new

in

at

payment, fo^,

101%, the

representing accrued
Aug. i. The balance of

est to

pro¬

ceeds will be applied toward cap¬

ital works and
cluded in the

Council

'wealth

As

the

for

State

and

the

Common

governments.

sinking fund for the bonds

a

Commonwealth

.

in¬

loan pro¬

approved by the Australian

gram

;Loan

;•(

expenditure

1955-1956

will

? make

.semi-annual payments of $485,000

.beginning

on June
15, 1958
continuing to Dec., 15, 1970. Suqh
payments are calculated to retire

at
:

least 50%

turity.
at

the

option

wealth

to

1959 at

issue

of the

The bonds

by ma.
redeemable

are

of-the. Common¬

and

including June. 15,

103 y2%

and .thereafter

at

prices decreasing to the principal
amount after June 15, 1968. The
sinking fund redemption price is
100%.

:«/-

v

At Dec.
.

:

31, 1955 the total direct

indebtedness

the

of

Common-

wealth and the States amounted to
the

equivalent

of

-

4,077,725,000

Australian pounds (the equivalent
of $9,134,104,000 U. S.) involving
annual interest liability of 130,101,000 pounds (the equivalent of

an

$291,426,240 U. S.). The Common¬
wealth budget for 1955-1956 intro¬

in

duced
1955

in

Parliament

provided for

August,

small surplus
in the current financial year after
a

meeting from revenues all defense
expenditures, all of the Common¬
wealth's

capital works ex¬
an
appropriation

own

penditures

and

of 48.5 million

pounds to the Loan

Consolidation and Investment Re¬
In March, 1956 supplement¬
economic measures were in¬

serve.

ary

troduced

taxes,
and

which

customs
that

these

tional

revenue

million and
a

full

It

duties

is

esti¬

increased

will

measures

sales

excise

taxes.

company

mated
tion

increased

and

of

taxa¬

provide

addi¬

between

^100

120 million pounds in

year.

While

the

principal single ele¬

ment in Australia's economy

tinues

be

to

con¬

wool

production, in
recent years the value of indus¬
trial production has exceeded that
of rural and
mining output. In
1955
production of steel ingots
reached

a

record

of

2.5

looking for super transit service?

million

tons and the production of auto¬
mobiles, which began in 1948, was
equivalent of more than 110,-

the

units.

000

motive

the

oil

companies, including the U. S.

last

companies

two

years

four major

Standard-Vacuum and
in

placed

operation

capacity of about
day.

150,000

You'll

II,

have

moved

1,000,000

over

to

crease

This

of 23%

fhe people

barrels

migrants

Australia

and

THE

job 'round the clock,

Chase

The fastest

the

ness

transportation, combined with up-to-the-minute busi¬

machines and

team that cuts float

experienced personnel, forms an unbeatable
time to

a

minimum.

represents

an

in¬

since June 30, 1947.




Manhattan
BANK
HEAD OFFICE: 18

population at Dec. 31,1955 reached
9,313,300.

on

correspondent is Chase

processing and clearing correspondents' transit letters at top speed.

Since the end of World

War

get fast action if your New York

Manhattan. Chase Manhattan is on the

four

oil refineries with combined total

per

focus

increased.

In

Caltex,

...

Capacity of the auto¬

plants is being

Ex¬

charge of tha

'Australia ten year 3y4% bonds due

ing

Ill

July 2 will admit Her¬

I The proceeds of the sale-will *>e
applied in part to the payment of
$18,028,000 C o m m o nwe a 1th-of

will

Co.,

pass

1954.

Aug. 1, 1956.

i

Broadway, New York City, mem¬

(Special to The Financial Chronicle)

Columbia, and has

West

Delaware

E. J.

Leikauf to

WHITTIER, Calif.—John J. Cox,
through Arkansas
Richard E. Cox, and Dan Lahey
Virginia.' The business
started in 1930, and was re¬ have
joined the staff of J. D.

rights

Co., 9486 Santa Monica

Boulevard.

Paley Opens

of the four

582,500 shares of

common

ownpH

from

authorized routes in 24 states and

Net proceeds to be received by
Roadway Express, Inc. from the
financing will be used to pur¬
the

Roush will retire

dent.

stock

common

1955,

in

v

of

Corns

common" stock

located

are

Inc.

Carroll J.

of

oversubscribed.

offices

Arkon, Ohio.

Upon completion of the financing,

25

shares

stock

of Roadway Express, Inc.,
per share.
This offering

convertible into
a

5b7,500

common

are

direct

are

his

of

constitute 50%

ing. These shares will be retired.
Public

23

(2975)

don't you talk to the people at Chase
Why

Manhattan?

Pine Street, N.Y.

Member Federal Deposit Insurance

IS

Corporation

j

•!.

24

The Commercial and Financial Chronicle..

(2976)

.Thursday, June 21r 1956

•

***

SPECIAL

MUNICIPAL
VvUU

AND

REVENUE

BONDS

NEW JERSEY

SITUATIONS

LEE W. CARROLL & CO.

INSURANCE STOCKS

BANK STOCKS

MUTUAL FUNDS

MUNICIPAL BONDS

CORPORATES

TAX EXEMPTS

MUNICIPALS

♦

4| V J

4.

ADAMS & HINCKLEY
F. R. COLE & CO.
24 COMMERCE ST., NEWARK 2, N.J.
Newark

Telephone:

New York

NEWARX,

N.

J.

10 Commerce

Harry P. Schaub, Inc.
ESTABLISHED

1932

744 BROAD STREET, NEWARK 2, N. J.

MArket 3-8445

New York

Phone

Telephone: WOrth 2-7776

Court, Newark 2, N. J.
Bell Teletype NK 256

Telephone MArket 2-6002

MArket 3-0213

Telephone WOrth 2-1398

Mutual Funds
New Jersey

f

MUNICIPAL AND

REVENUE BONDS

Municipal Bonds

UNDERWRITERS,
DISTRIBUTORS

CORPORATE

mJ DEALERS

AND

V. A. Gardner & Company
;

24 COMMERCE

STREET

NEWARK 2, N. J.

MArket

RAND

3-3130

ONE

Telephone

New

WALL

Whitehall

CO.

&

STREET

YORK

NEW

4-3432

5,

N.

Teletype

MUNICIPAL

Y.

NY

1-838

SECURITIES

Jersey

Over-the-Counter Securities

EMANUEL, DEETJEN & CO.
new york stock exchange

Municipal Bonds

Members

STATE, MUNICIPAL

—★—

120

24 Commerce Street, Newark 2, N. J.

Broadway

american stock exchange

•

commodity exchange, inc.

•

New York 5, N. Y.

•

Teletype NY 1-1973

Telephone DIgby 9-0777

and

J.R.

midwest stock exchange

REVENUE BONDS

Telephone Mitchell 2-7660
BOwling Green 9-5133

BYRNE

Specialists

AND

PHELPS

Incorporated

Banks

44

Wall Street

Insurance

Newlersey

Industrials

New York
Telephone DIgby 4-2410

Utilities

5, N. Y.

ORIGINATORS

Teletype NY

<

UNDERWRITERS

-

Hartford—Enterprise 6344

Philadelphia—Enterprise

Parker&Weissenborn,

—

DISTRIBUTORS

1-1474

OF

6097

*

NEW JERSEY MUNICIPAL

24 Commerce Street, Newark 2, N. J.
Telephone MArket 2-3606

AND

New York Phone REctor 2-8870

Teletype NWK 379

r
NEW JERSEY
MUNICIPAL BONDS

AUTHORITY REVENUE OBLIGATIONS

1RIPP & CO., INC.
URNPIKE

BONDS

ALL TURNPIKE &

Boland, Saffin

REVENUE BONDS

&

Co.

Established 1920
NEW YORK

Ryan, Hanauer & Go.
786

Broad

35

A

HAnover 2-5252

Street, Newark 2, N. J.

Bell

|

OFFICE:

40 Wall Street

WALL

ST.

TELEPHONE

-

WHITEHALL 3-3414

NEW YORK 5, N. Y.
Bell

System Teletype■—NY 1-S3S

Teletype NK 277

Newark Mitchell 3-8359
New York WOrth 4-2640

Municipal & Corporate

state & municipal

\.

Securities

bonds

Fidelity Union Trust Company

| Van Daventer Brothers
n

State and Municipal Bonds
•

-

Municipal Bond Department
★

Incorporated

★

i

★

NEWARK, NEW JERSEY

| 24 COMMERCE ST., NEWARK 2, N. J,
Telephone
S

MArket

2-2272

Tel. MArket 2-5800

Teletype NK 170"

NATIONAL

STATE

FOUNDED
~

—

N.

Y. Telephone

BOwling Green




9-7472

New

York Wire

810 Broad
The

BANK

1812

COrtlandt 7-807S

Bank

Wire

Street, Newark

1, New Jersey

Telephones—Newark-MI 3-4000—New York City BA 7-5928 Tele. NK 348

Volume 183

Number 5544

Jerome C. L. Tripp,

R.

Morton,

t.

,

Ccle. F. R.

Larry

W.

Cror.yn A

Cc.,

Ridgewcod,

New

York




N. J.;

PI. J.

Stohl, Fidelity Union Trust Company, Newark; Ned Byrne,
Byrne A Phelps, New York City

Charles B. Schubert, Emanuel, Deetjen A Co., New York City;

(2977)

James F._ Musscn, B. J. Van Ingen A Co., Inc.. New Ycrk, Chairman., '
of outin*» A1 LanSe» Accordionist
-f
^

Ccle A Co., Newark, N. J.;
Jphn Arnew, Eastman, Dillnr A Co.. Patcrs'.n,
W. Souvi'.le, Spencer Trask A Co.. New York; Kenneth W. Crcnyn,
K.

Walter H.

.The Commercial and Financial Chronicle

Tripp A Co., Inc.,
List Publishing Co., New

Blue

Frank

..

Jack

.

25

Edwin L. Beck, Commercial nfi Financial Chronicle, New York;
vBill Roos, W. A. Gardner A Co., Newark

Byram, Nerlhern Trust Company, New York; S. M. Weissenb rn/Farmer di Weissenborn, Ntwark,'
N. J.;
Dcna'd Mackenzie, Marine Midland Trust Ccmnanv, New York; W. P. Wilson,
W. C. Langley A Co., New York
,

Harry D. Miller, Nugent A Igoe, East Orange, N. J.

R. H. Deetjen, Emanuel, Deetjen A Co.,
City; Tom Benton, Benton A Co., New York City

Glenn

D.

Thompson,
of

Austin

H.

Drexel

Bond

A

Club

Co.,
of

New

York

City,

President

PJew Jersey

Patterson, First Boston Corporation, New York; Lee Carrrll, Lee W. Carroll
Newark, N. J.; Charles S. Morley, New York City

A

f

r

°''

'j

~
„

•
-,v

'

<

26

Carl

Dick

TI

(2978)

A.

W. Pressprich <ft Co., New York; R. F. Vanderhoff, Fidelity Union Trust Company,
Newark, N. J.; M. V. Poole, Geo. B. Gibbons & Co., New York; Herbert Hoehn,
Gregory & Sons, New York

Preim, R.

Whitcrmb, Phelps, Fenn & Co., New York; Walter D. Fixter,
J.
W. Sparks & Co., Philadelphia;
Harry W. Faath,
Tripp & Co., Inc., New York

Horace

G.
&

...

Thursday, June 21, 1956

York; Frank Cullum, W. C. Langley & Co.
York; H. J. Kennedy, £. F, Hutton & Co., New York; W. M. Farrar, Coffin & Burr,
Incorporated, New York

T. A. Von Glahn, Salomon Bros. & Hutzler, New

H. Whitehead, Cosgrove, Miller & Whitehead, New York;
Sidney L. Weedon, Crosby Corp., New York; Robert P.
Bennett, E. A. Clark & Co., New York

Ryan, Goldman. Sachs & Co., Chicago; John R.-Gochenaur, County Ban'- <£ Trust
Paterson, N. J.; John 0. Sachau. Blyth & Co., Inc., New Y-rk; Edward L. Winpenny,
Laird & Company, Corporation, New York City




Commercial and Financial Chronicle

Louis

Houghton, Kean, Taylor <£ Co., Newark, N. J.; Jay Richardson, Halsey, Stuart
Co., Inc., New York; Howard B. Dunning, C. P. Dunning & Co., Newark

P.

e

Richard

Von

Thomas,

Hoffmann,

Provident

L. F. Rothschild & Co., New York; W.
Institution for Savings in Jersey City,
Jersey City, N. J.

& Co., New York; Edward Hills, Eldredge & Co., New York; Robert M. Pyle,
Weeks, New York; Edward A. M. Cobden, Kean, Taylor & Co., New York

N. Rand, Rand

Hornblower

Chick

Robert

New

&

Spring, Outwater & Wells, Jersey City, N. J.; Jim Currie, Glen Ridge, N. J.; Harry C. Zimmer,
Trust Company of New Jersey, Jersey City, N. J.; Ed Purcell, Commercial & Trust
Company of New Jersey, Jersey City, N. J.

Commercial

\

Volume 183

Number 5544

...

The Commercial and Financial Chronicle

(2979)

At Echo Lake

Alex

Country Club

Seidler, National State Bank, Newark; Kenneth Spear,
Rippel <ft Co., Newark;
Ken Sias, National State Bank, Newark'
.+•, ,».
+

E. F.
N.

.

V.

Storch, Prudential Life Insurance Co., Newark; Frank H.
Becker, Guaranty Trust Company, New York

Ludlow

J.

J.

York

Deventer, Van Devcnter Brothers, Newark, N. J.; Eli Loranger, National State Bank,
Newark, N. J.; Th-mas G. Kenyon, Carteret Bank & Trust Co., Carteret, N. J.;
Frank D'Alessandro, Orange Valley Bank, Orange, N. J.

Gustat, Halscy, Stuart & Co.. Inc., New York; R. W. MacGrath, Firemen's Insurance Company,
Newark, N. J.; Thomas J. McCarihy, Merrill Lynch, Pierce, Fenner & Beane, Newark, N. J.




Kezer, B. J. Van Ingeii & Co., Inc., New York; H. L. Rost, Peoples Bank & Trust Co., Westfield,
J.; George W. Philo, Upper Montclair, N. J.; Joseph R. Mueller, J. R. Mueller <fi
Co., Newark, N. J.

France, Colonial Life Insurance Co., East Orange, N. J.
William Boland, Boland, Baffin & Co., New York

Van

27

*

Don Lane,

A!

R.

D.

De'son.
R.

R.

Colonial Life Insurance Company, East Orange, N. J.
Krumm, W. H. Morton & Co., Inc., New York City

herrill

Lynch, Pierce, Fenner & Beane, Newark: Dave Kales. Wood, Gundy & Co., Inc.,
New York; Tom Weissenborn, Estabrook & Co., New York; Art Lautz,
Mutual Benefit Life Insurance Co., Newark, N. J.

Leek, Coffin &
New

Burr, Incorporated, Hartford, Conn.; A. H. Paddock, Eastman, Dillon
City; Wally Scanlon, Howard Savings Institution, Newark, N. J.

York

&

Co.,

(

Financial Chronicle... Thursday, June 21, 1956

The Commercial and
28

(2980)

June 15, 1956

m00m§:

ilip
Ed

Newark, N. J.; F. R. Bailey, Newark, N.
N. J.; C. C. Thcmas, Kean, Taylor & Co, New
Barbata, Eank of Nutley, Nutley, N. J.

Tallau, Howard Savings Institution,
Clark, Dodge & Co., Newark,
Archie

C.

Newark & Essex Banking Co., Bloomfield,
L. Reiber, Pyne, Kendall & Hollister, Montclair, N. J.

Addison K. Barry, National
N.

J.;

John

Daniel

W.

New

Richard
<6

Co.,

Leo

A.

J.; J.
York

E.

Henry H. Hegel, Federal Trust Company,

Egner,

Reed, Hoyt, Taylor & Washburn. Nrw York;
Ebbitt, Shelby Cullom Davis & Co., New Ycrk

McCarthy,

Kenneth

C.

Kress, Howard Savings Institution, Newark, N. J.; M. Thomas Jones, Hornblcwer & Weeks,
City; Albert P.Luscombe, Peoples National Bank <fi Trust Company, Belleville, N. J.

'

H.

Marshall.

New

York

Laurence M.

City;

William

E.

Marks

&

Co., New

York City; Albert F. Rice, Laurence M. Marks

William L. Phillips, Mutual Benefit Insurance Co., Newark; Jack Duerk,
Newark, N. J.; Gordon Boyd, Mutual Benefit Insurance Co., Newark, N.J.;
Thomas, Provident Institute for Savings, Jersey City, N. J.




G. W.

Slaight, Gregory & Sens. New York: J. A.
Andrews & Wells, New York

Andrews,

Jim

Johnston, Glore, Fcrgan & Co., New York City; John J. Roe, Hudson City Savings
Jersey City, N. J.; John F. Hoffmann, Reynolds & Co., New York CKy

Jim

Gilbert, Hornblower

York

Howard Savings Institution,

Newark, N. J.j 'A. A. Johnson, Federal Trust Company,
J.; Howard E. Izer,

Newark, N. J.; George W. Smith, Kidder, Peabody & Co., Newark, N.
Passaic-Clifton National Bank, Passaic, N. J.

City;

&

Weeks,

New York;

& Essex Banking
New York City;

George J. Heath, National Newark

Co., Montclair, N. J.; Gordon Phillips, Equitable Securities Corporation,
Ed Sauer, Orange Savings Bank, Orange, N. J.

Bank,

Volume 183

Number 5544...The Commercial and Financial Chronicle

duction

S. W. Fell Joins
> PHILADELPHIA, Pa.
establisnment

tne

rate

and

distinct

—

Plans

a

sepa¬

of

fund

mutual

sales department were announced

by

Co.,

I

antici¬

next

R.

three
R.

years.

Donnelley

known

as

&

Sons

The

of

carries

Stock

Ex¬

change.
R

b

o

t

r

e

Robinson,

a

business in which the

the firm, said
that a d d i

complete facilities for photo-en¬
graving; type-composition, letter¬
press, offset and gravure printing;

tional separate

magazine,

space has been

pamphlet binding!;
the
mailing and shipping of its prod¬
ucts.
It prints and binds a major
portion of several of the larger
nationally distributed publications

President

f

o

-

leased
17 th

the

on

floor

the

of

FidelityStanton

Philadelphia
building f o r
the

catalog
and for

and

since 1911.
sales

net
to

in

every

income

was

on

A.

July

Burnet

&

Co.,

Wall

11

1

will

Hartigan

to

admit

that

II, had

Stanton

W.

been

appointed
department.

new

has been

as

individual floor

an

•

New Lamson Partners

general

partner¬

CHICAGO,: 111.

nership
141

De Forest Lyon
; ;De

Forest
&

June 12.

Lyon,

Gallatin, passed

in

away on

v■J1.'''.':{■

■

in

Lamson

West
of

Midwest

Stock

the

New

Cedar

Rapids office.

Felt,

Means...

As Manager of

the Mutual Fund

Department, he
will have full responsibility for
the
organization, administration
and sales direction of this phase

of

the

firm's

operation.
Under
an
intensive re¬

his

direction,
cruiting and sales

training

pro¬

gram

will be undertaken to build

up

staff of

a

capable

Better

Better

Rubber

Better

Insecticides

branch of¬

fice sales managers and salesmen,

Fertilizers

iV; "J

Ohio Go. Announces

Expansion of Staff
COLUMBUS, Ohio—Opening of
a

Ifjfyv:\

office, reassignment of two

new

salesmen and addition of two

'

% -M

wf

men

have been announced by The Ohio

Company, Columbus, Ohio, invest¬
ment

in

Lima,

by

\

banking firm.

The Ohio

Company's

Ohio,

Phillip

been

the

tive

will be managed
Howell, who has

firm's

in

Hardin

J.

office,

new

sales

Allen,

representa¬

Hancock

Counties

since

and

January,

1955.

Robert

signed

Bartels

E.

The

as

has

Ohio

been

as¬

Company's

sales representative in the Canton
district.

He formerly was man¬
the firm's Marietta office.

ager of

Earl C.

Livesay has been named

Marietta

as

will

office manager, and
investors in Washing¬

serve

ton, Monroe,
Gallia

V-y.

Meigs, Jackson and

i|N

Counties.

Douglas H.
added

to

Salomon
York

Ludeman

has

been

The

Ohio
Company's
department staff.
He
was
associated
with

trading
formerly

Bros.

&

investment

his father

was

a

Hutzler,
firm

in

New
which

partner for many

years.
'

Donald

J.

Maloney has entered
Company's
one-year
sales training program. •

The

Ohio

Harriman
Offers R.

Ripley Group
R. Donnelley

Stock at $27.50
The

first

Shr.

a

public

offering of
stock of R. D. Donnelley & Sons
Co., the 92-year old family-owned
printing concern, was made on

These

June

19, by an investment bank¬
ing syndicate managed by Harriman
Ripley & Co. Inc., which
offered 573,575 shares of the

pany's

share.

per

being

Of

the

at

com¬

$27.50

total

offered,
financing

certain

Net

just

a

few of

many

c

better

products available

to you

research and the

application of its chemicals

shares

420,000 represent
by the company
153,575 shares are being sold

new

and
for

stock

common

are

to

through Cyanamid

improve quality and lower costs.

c ya jva iwr x xy

AMERICAS
30

ROCKEFELLER

CYANAMID

PLAZA,

stockholders.

proceeds

from

the

sale

of

the 420,000 shares by the company
will be added to its general funds
and

used

such

from

corporate

management
order

to

time

to

time

purposes

may

provide

determine.
additional




for

the

as

In

pro¬

BUILDING

FOR

THE

FUTURE

THROUGH

CHEMISTRY

on

&

Co.r

York

and

Mr.

Booth will be located in the firm's

ing in corporate finance and busi¬
organization.

V
M.

Boulevard,,

Exchanges.

counselor-at-law

ness

Bros.

Jackson

manager

Mr. Felt

Richard

will be admitted to part¬

1

members

partner

—

Withrow and Ronald C. Booth

July

ited partnership.

and

practicing attorney and
here, specializ¬

a

mem¬

broker.

Raymond

year

For the

wilt

1

Exchanges. Mr. Whitney has

been active

ship and F. Richards Ford to lim¬

$6,600,000, equal Smith

$3 per common share.

Parkinson, 27 State Street,

of the New York Stock Exchange,

1955, net

$96,404,000

E.

July

on

partner in Hutchins &:

a

Street, New York City, members

books.

For the year

aggregated

W.

Stephen T.

—

bers of the New York and Boston

W. E. Burnet Partners
;

;The company has earned a net
profit and paid cash dividends on
stock

*

Exchange,

become

Stock

printed matter including ^bibles,
religious publications, school

common

similar period of

1955.

In addition the company
produces
a
variety
of
other

its

for the

BOSTON, Mass.
Stock

time, Mr. Robinson

same

announced

the

rem,

056,000

the

books and other

sales

net

$30,872,000 and net income of $2,-

catalogs.

:

had

department.

new

At the

of

W.

book

Whitney, member of the Boston

Montgomery Ward & Co.,
Inc. and Sears, Roebuck and Co.

Donnelley family has been active
since 1864.
Principal plants are
in Chicago, 111.
and Crawfordsville, Ind.
The company offers

on

Hutchins, Parkinson Admit;

519,000 and net income of $2,611,000, compared with net sales of

prints and binds over 1,000
telephone directors in¬
cluding those for a number of
major cities and a substantial part
of

of

months

1956, the
of $36,-

different

Co.,

Lakeside

four

company

also

the New York

;

first

including "Farm Journal," "Life,"

Press, is the largest commercial
printer in the United States and

n c.,

members

meet

"Look," "Time" and "Town Jour¬
customers,' the company has, nal" magazines, and the "Ency¬
planned a program of capital im¬ clopedia Britannica,"' uCompton's
provements which is expected to Pictured
Encyclopedia" and "The
approximate
$48,000,000 in the World Book
Encyclopedia."
It

also

Robinson

&

to

pated needs of present and future

Robinson & Co.
for

facilities

219

(2981)

NEW

COM P A

YORK

20,

A[ Y
N.Y.

/;

;

30

of

Continued from first page

First Boston Group

million

207

Boston

First

end associates

Corporation

yesterday (June 20)

$15,000,000 of Combustion
Engineering, Inc. 3%% convert¬
ible subordinated debentures, due
offered

1981,

debentures

into capital

3.375%.

yield

to

100%

at

The

convertible

are

stock at $30 per share

ing

evidence

great

this

of

outstanding
short-term borrowings from banks
which were incurred to finance
of

new

as

1.7%

about

year,

the rate of increase in
Last

larger inventories resulting from
an
increased volume of unfilled

1930's.

the

children

million

4

year,

million

Our

Reporter

tion with the company's $25,000,-

The

optional redemption prices

redemp¬

chemical

flash

of

as:

too distant

and in¬
of certain

For

;

four

for the

''

the Federal Reserve System, probably

would not be unexpected.-

decrease

a

quiet side,

though there is

even

$2,204,000 compared with $46,339,000 and $1,989,000 for the same
period of 1955. For the calendar

,-v

,

maturities.

is

It

evident

*

tne demand for short-term Treasury
The intermediate-term

Stern, Lauer & Co., 120 BroadWay, New York City, members of
the
on

New

York

Stock

Exchange,
July 2 will admit Sidney M.

Sternbach,
Exchange,
Sternbach

Jr., member of
to
partnership.
has

been

individual floor

active

an

broker.

admitted

Boardman

P.

limited

to

in E. F. Hutton &
way,

will

be

partnership

Co., 61 Broad¬

New York City,

on

fair de¬

a

those

as

which has

that

still

putting moneyvip; tnese securities
from the sale of other obligations for ta^ purposes.

come

are

Government

distant

more

bonds* continue

"

\

to

July 1.

in

a

for

with

range,

These'

the

Also, there

deposit'banks! in out-ofmaking not too large commitments in the
longest Government bond. Tnis is the firsjt (jme in a long period
tnat

reports that certain

are

have

tnere

banks have

been

been

indications

that

the "smaller

commercial

making noticeable purchases of tne '3s of 1995^

Easier

Money Market Expected!

are

in

reflected

and' Exchange

curities

sion and Department of

Commis¬

Commerce

on

ditures

for 'plant
the ||>ast

expen¬

and equipment

four years and

follows:
Billions

**'

Year
1952

•/-

26.8 ', J
28.7

1954
1955

—hkil:

1956

SECURITIES

tight

money

much

too

as

was so

was

future.

distant

conditions

should be giving

restraint

psychology

not

of economic

way

the

case

to

is

one

when

It

is

such

the

With

The
1956

that

indications

the

be increased

have

as

much

as

out

come

of

budget surplus will be

to look at this
increase in \business capital is to
think of it in human terms. Each
year,

through the growth in

lation,
of

we

are.

almost

Adding

ohe

the

to

women

million

popu¬

average

an

and

men

productive

labor

for each
new
worker is higher still.
Fur¬
thermore, there is the constant
capital

was

in the past.

the House

required

replacement and improvement of
tools which has to be provided,
and'

the

capital

for

public

and

industries.

According to reports
Ways and Means Committee

This

money

The

INCORPORATED

recent

the Chairman
15 BROAD

ST., NEW YORK I

WHitehall 3-1200
231 So. La Salle St.

45 Milk

sional

the

Committee,

Federal

headed

Reserve Board

no

for the action which has

been taken

BOSTON t

tary policy is concerned.

ST 2-9490

HA 6-6465

indicate that he
discount rate.

was

before the

Representative

appeared to have shown
St

CHICAGO 4




by

Patman

great disagreement
as

far

as

as

and

Congres¬
of

to the

the over-all

Texas,
reasons
mone¬

Secretary Humphrey, however, did again

not in

There

running
savings.

testimony of the Secretary of the Treasury

of

agreement with the last increase in the

covered by current

deprecia¬

tion, and $14% billion was raised
by increasing debt or selling capi¬
tal stock.
The other $10 billion
came from, retained earnings.
• J

ledgers,

they

receivables

and

their

of

side

their

much.

Good Record Last Year

So, the record of last year is a
pretty good one but does seem to
suggest that a further substantial
increase in plant and equipment
expenditures this year, such as is
now

projected, will mean a fur¬
increase in debt.

ther large

variables

of

is

the
great

so

conclusions.

firm

baffle

to

as

ahead,

further

Looking
number

George Terborgh has made a care¬

analysis and estimates for the
coming decade that depreciation
and retained earnings are likely

ful

tor

major

the

provide

part

of

expansion; so that require¬
ments from the public would be
well within the expected amount

future

That raises
trend

the question

individual

of

capital

may

of the
from

savings

be drawn for

business growth.

One

Road

is coming from.

A

for business and

& Co.

1955,
about

by

Of this, $14% billion

$39 billion.

of business naturally
raises the question of where the

year.

Policy Hearings

assets

their

increased

which

great surge in capital ex¬

that the demands for capital, both

Credit and Debt

job

saving money and applying it
to
increasing
our
wealth
and

of

penditures

hearings, legislation permitting a $3 billion cut in the temporary
debt ceiling to $278 billion will be in effect for the next fiscal

Aubrey G. Lanstow

this

country is doing a tremendous

of funds available.

Demand

&&&£ Funds

sizeable

a

figures.

The first conclusion is that

way

A

ending, the debt limit will not have to

it

the

larger still.

Savings Not Matching
'

these

but I should rather

try to give you certain broad con¬
clusions from my examination of

McGraw-Hill estimates for

are

service

strong!

for the fiscal year now

which

as

inflation

and

$278 Billion Debt Ceiling Anticipated
one

policy of

in whicn there be not
the' boom

you,

inventories by almost as

stantial

being pointed out
that

in

figures to

few

a

getting

avoid

expounding

enmeshed

increased

tional

the

had

we

shall

I

ago.

other

(estimated)____ 34.9

deviation from the pattern which has been in force, there is
stnl a very strong feeling around that there will be easier money
in

available than

years

debt

$15,000 for j?ach worker in manu¬
facturing today. And" the addi¬

conditions

,

In judging the

While corporations went into
by about $9 billion (outside
of income- tax liability), on the

28.3

Despite the fact that the only help, which has been given to

that the trend

possible

take ; every

of either inflation or deflation.
*.

force, and their jobs reouire sub¬
-

any

PUBLIC REVENUE

and

precaution to avoid the twin evils

!.

$26.5

1953

the money markets so far by the powers that be, has |>een in the
form of sizeable purchases of Treasury bills, which does not mean

and

It is time to examine our-

selves

was

gj^Ual business

figures

ne\y; capital.
There is a
direct capital investment of about

STATE, MUNICIPAL

all

the "new era" thinking of the late

capftal'expenditures, conducted by wealth-producing assets.'
agencies, oh, the government and
Business corporations, in
by the McGfaw-Hill people. Se¬

Another

J

have been

areas

;es

c

&urveysf&f increased business

volume and

switcn out of otner forms of investment.

,

would

you

agree

arise.

a

have been rather well taken, because there is still a modest amount
of buying coming into this bond from those that are continuing to-

town

U.S. TREASURY

changes,

business- has revised

this year are as

move

."

.

that

sure

am

1920's.

Company £ a f t e r company is
working ongpTograms that extend

activity-on tne restricted side.
nonetheless, a fair amount of buying bping done in some
of the 2Vz% bonds, with the 1965-70s reportedly the favored isspes
at this time. The 3s of-19^5 appear to have some .scattered selling
from time to time, with indications that a parfrof this ^liquidation
is in the form of profit-taking. On the otner hand, tne^e offerings
narrow

of savings, and what ought we

balance between
savings and 'spending, we now
amoynts and. in terms of longer
fortunately have many more fig¬
projection ipto the future.

during

Longer Governments Rather Active
The

a

or

do about it?
I

,

X;.

drastically.i|s/program on capital
expenditure^both in terms of

There is,

E. F. Hutton to Admit
Bonald

well

the
Mr.

as

issues.;

securities continue* to have

mand, with selected purchases being maae by ,certain institutional
investors that are interested in a modest tehgfcnening of-maturities
as

age
to

ures

Borrowings for income tax/ purposes; according:to reliable

gations.

is this a long-term
How serious is the short¬

demand,

trend?

than the land frontiers

faberof these

In, the
American

1955, earned billings and net ^ estimates, were no^as large as had been expected in certain quarters an# this is believed to have had a not unfavorable effect upon '
sales were $135,778,000 and net

Stern, Lauer Admits

producers.
The expendi¬
research for these pur¬

temporary burst

Is

of

and partly

energy

this

naturally

are

raised:

expendi¬

good man|, years into the future,
they know-that only so can
money is being put to work in the most liquid Treasury issues. V
they'hold tjheir: own in the com¬
With the June 15th income tax payments pretty well taken care
petitive rack -and meet efficiently
of, it appears as though not
lew corporations found they had
and
smoothfy the demands which
money available for tne purchase-pf^eaKterm Government obli¬
shortest

$48,895,000 and net income to'

income $5,625,000.'.

out

less

.

sizeable demand around for the "
that a" substantial .amount ,of

a

with

on

many ways

w,a-

'

find

to

of earlier yehrs.

potential deflation and that the not

Short-Term Issues in Demand

ended

year

Several questions

that it is in times of pros¬
poses
are
mpuntjng astronomic¬ perity like this that the seeds of
'future trouble often start to grow.
ally. Our new frontiers of science
Most of you remember all too well
are
even
more
challenging
in

tures

the other forms of investment Very *

with the intermediate and.long-term obligations
recent past.

in the discount rate,

April 30, 1956 earned billings and
net sales of the company amounted
to

partly

^

Short-Long Term Trend?

civilian
how to

for

human wants and to make money

Operations in the Government market, continue to be on the

months

banks.

housed by the

have been

devise -new product^ to satisfy

to

automatic water heaters,

the

spilled

effort, has
extension of

programs

of human

ture

fpture will witness some easing of> money> conditions.

Direct action by

boilers and soil pipe.

range

We

enormous

an-

make^ things

a

the dangers of inflation and

fabricated products. The company
also manufactures other products,
such

savings institutions and
over into the commercial
banks,, largely through a substan¬
tial increase in mortgages ware¬
regular

has

program

arms

research.

to

research

It is believed that the monetary authorities are alert to both

re¬

drying

cineration systems, and

this

Akin to this military

somewhat less active than they have been in the

equipment for the pulp in¬

dustry,

Governments

on

well

it

stiff competition,

largest domestic manufac¬
turers of large steam generating
units and is also one of the major
of

had

of the Government is giving

Engineering is one

the

manufacturers

pro¬

a

goals by rely¬ .So, here is evidence that savings
have not been keeping pace with
ing upon
constantly improving
the demands for funds.
technological effectiveness.

ripple being noticed,, because the monetary
prepared for the loans which had to be
made in order to make these payments.
Also, it is evident now
that the borrowings for income tax purposes were not as large as
had been expecteu not so long ago. Demand for funds, however,
is still as sizeable as ever. It is reported that the short-term
pector
authorities

100%.

Combustion

covery

While

tion, it has, nevertheless, been an
enormous
stimulus to production

market went through the June 15th income tax

money

period with hardly

ranging from 103.38% if redeemed
prior to June 15, 1957 to 100% if
redeemed on
or
after June
15,
tion price is

vided

r

redeemable

sinking fund

has

mortgage market

particularly interesting
piece of evidence. ,In the middle
of last year, the volume of mort¬
war, which has~vforced us, much
created to • build homes
against our will, to build huge gages
armaments.
This is the price of could not be fully absorbed by
the accumulation of savings in the
self-preservationcrT

uses,

The

capital has been absorbed by
banks.

The

for economic

drawn funds away from consump¬

By JOHN T. CHIPPENDALE, JR.

1956-58.

of

A second pressure

expansion, and, I might add, for
inflation, too, has been the cold

been

property addition program for

1980.

the commercial

able to achieve-our

orders, with the remainder to be
general funds, and to be
as required
in connec¬

at

for

and

available

The debentures are

higher than they were a year ago,
showing that some of the demand

facilities of all kinds.

1990, but we have already

added to

000

great many more houses, and a
huge increase in4he production of

reached

be

to

be

to

in bank
loans. Loans to business by com¬
mercial
banks
are
about
20%
increase

the

in

found

food, clothing, apd equipment. It
means an expansion of productive

passed that figure, and present
predictions are for a population

than double

more

population

years

164.5

of increase since the war has been
per

reduction

of post¬
reflected in

wave

being

and before
will swell the work¬
ing force. We have had to revise
steeply upward our estimates of
the future population. As recently
as
September,
1946,
our
peak
population was officially forecast
school

many

Pressures for Economic Expansion

first

this

is

babies

marked

a

mortality,

the

was ; con¬

the

before

normal

depression.

The

retirement

in

war

sale of growth is in population. The rate

proceeds from the

these debentures will be used for
the

which

growth

the

sidered

With

1930's.

a

rate of growth in the eco¬
nomic life of the country, resum¬

rapid

until maturity.
Net

of

resurgence

a

compared with an
million in the

as

annual rate of

fact,

of

evidence

born,

were

pessimistic theory.
startling new

explode this
We have, in

is

evidence

second

The

means

schools, moje enurches, more
public utilities, more streets, a

'more

Financing Economic Growth

Eng. Conv. Debentures

have been deferred.

some

population

larger

going, and

issues have had heavy

million

228

to

twenty years from now.
This

Offers Combustion
The

Chronicle... Thursday, June 21, 1956

The Commercial and Financial

(2982)

are

two sorts of evidence

ahead

country's

the

months

is

in

themselves,

the

capital

where,

in

spite of the largest volume of new
issues of all time, the market has
been staggering under the impact
of additional- demands for funds.
With the price of money

tially increased,

a

substan¬
number of new

Insolvency?
articles

of

have

in recent

the

that

implied

people of this country v/ere bor¬
rowing more money than they
saved and were thus on the road
to

evidehce

markets

personal use, are

of

to

number

This

insolvency.

While

individuals

creasing their

is

have

not

so.

been

in¬

debt rapidly, par¬

ticularly their mortgage debt and
consumer

debt,

they

have

been

than they borrow.
that, in the aggregate, net per¬
sonal savings are running better
than 6% of individual disposable
saving
So

more

,

Volume 183

Number 5544... The Commercial and Financial Chronicle

income.

Bond has proved it¬
unique
mechanism
for
teaching regular "savings by mil¬
lions of people.
There are now
$40 billion worth of these Bonds
outstanding in the hands of ap¬
self

been declining for three years.

Thus, the figures show that the
American
people are a saving
people both

the operation of business.
amount

of

funds

•Based on these figures arid on
What is actually happening in the
money markets and with respect
to

bank

that
not

credit,

we

conclusion

my

will

ress

that

our

continue

debt

to

foster

and

en¬

:•

.

that

can

of

more

the

Federal

interest

be put into the hands of

rates

individuals who would not other¬

cially low
ment

have

saved,

will

that

tend

were

as a

held

artifi¬

matter of govern¬

policy—a great handicap to

inter¬

sound

of business.

where the rates should be cannqt

We

/:

have

be

this

in

developed

economic

determined

of

Just

progress.

arbitrarily.

The

have

that

rates

Form All States

freedom

to

reflect

the

of

forces

mand.

is

reasonable

movement

supply

and

■

DALLAS, Texas

eco¬

de¬

phere.
be

offices in the First National

with
Bank

from a period of eco¬
regimentation and doctri¬

Building to engage in

curities

freer atmos¬

a

business.

Thomas G. Moore, President;

In this period, we should

Atwood

ards

to make vigorous eco¬
growth toward new stand¬

of

satisfaction

the

for

Vice

-

and

Olin

W.

Presidents;

If this

growth is to go forward

with

power

must

somehow

freedom
the

twin

deflation
every

grow

Jones, Kreeger Branch

and

with

assurance,
we
learn to combine

restraint

BETHESDA, Md.—Jones, Kree¬
ger

avoid

to

which

period

we

Hewitt,

members

office

branch

us

in

opened

to

Wisconsin Avenue under the

a

the

backgroundr

remember that

we

are

must

engaged in

a**

great international struggle to
demonstrate to the- people of the

World the

quality of our economic
system and its capacity to satisfy

•

human needs, I believe we have
the best economic system and the '
most

efficient

give

the

operation the
tion that
the

but we must
principles of its '

one,

broad

careful atten- 1

same

give to the details of
operation of our businesses.we

What, then,

are

nped fo do to"

flow

the things that

we

the continued

assure

of" savings, in

the

amounts

needed to keep our economic ma¬
chine moving ahead in hfgh gear?
"

A-

Resist Inflation

J The- first thing
resist

we must do is
When you have

inflation.

inflation, the cost of building
plants

increases-faster

•

new

than

,

the

rate of savings.

Inflation

is

product of-

a

many

influences and policies, both

gov-'

^rrimental and private. An
< IFije
increase
in* productive
facilities which can produce more:

afjnd bette£„rgoods
Is,«ir) itself,

one

f'.

The

nises

AVA./.-

,

government today recog¬
its responsibility for main¬

taining

a

stable dollar.
is

necessity
and

efficiently

more

of the antidotes to;

inflation,

we

a

The first

/

balanced

promising

are

budget,
that

you

for this fiscal year, and, with good
fortune and cooperation, for the
next fiscal year,

IT

ANSWERS

TELEPHONE

THE

WHEN

YOU'RE

The Automatic

OUT.

Answering and Recording Set takes and gives

Especially valuable for professional people, retail stores, contractors, TV repair shops, offices in homes and when offices

messages.

closed.

are

also.

Perhaps the most potent arm of
for assuring stable
money
is the Federal
Reserve
System. This Administration has
government

assured

the

Board

and

banks

that

exercise

Federal

the

they

their

will

Another New

Reserve

Federal

Reserve

be

free

judgment

in

Telephone Service

to

the

Business

for

determination of their policies in
the
public interest.
The
broad
program of the Reserve System in
the past year for holding in check
a

tendency toward over-expansion

Growing

of credit

has, I believe, been most
in keeping the pressures

helpful

of telephone aided by new equipment introduced by Bell System

use

toward inflation within bounds.
There

actions
nomic

other

are

governmental

The past

wihch

impinge on eco¬
stability which I shall not

attempt to describe, except to
sure you that those of us who

the

use

of

few

the

as¬
are

business and

working for you in Washington
doing our best to steer these

are

In addition
Bell

Let

suggest, also, that busi¬
ness
itself
and
the
policies it
follows with respect to wages and
the pricing and marketing of its
me

products exercise
tant

influence

very

a

the

on

mote

to

lieve

other

we

area

can

tion toward

in

all make

supply of funds for

phone.

speech, and teletypewriter

control and

messages,

electrical signals for

I

be¬

a

contribu¬

an

adequate

progress is

the

ing and exciting
is

answers

many

kinds between

a

real

bargain for

new

things in equipment. One that

becoming increasingly popular is the Automatic

Answering and Recording Set.

,

the many
an

other

and

to

profitable for

direct encouragement of savings.

Encourage Savings
In

the

Treasury,

brating this
versary

of

year

the

BELL
we

the

Series

are

15th
E




cele¬
anni¬

Saving

TELEPHONE

phone automatically
a

a

recorded

tele¬
even

message

play hack when

in

SYSTEM

you return.

moderate monthly rental

and is

many users.

Answering and Recording Set, and

new

service items, have

accelerated program to meet

tomers

your

voice, and lets them leave messages, orders

The Automatic

services there have been interest¬

your

connected with

gives callers

It is available at

business machines.
new

compact unit

instructions for you to

re¬

managing of industrial equipment,

transmitting data of

Along with

It

your own
or

now carry

a

when you are out,

impor¬

economic

which

assuring

This is

growth in

telephone—especially in services for

System lines

and also for

trend.
The

a great

industry.

fcrces in the direction of sustained

economic growth.

have brought

years

at

7730
man¬

agement of Robert M. Hanson.

over-confident.

accumu¬

we

the

of

Exchange, have

tend

threaten

when

&

New York Stock

dangers of inflation or

lation of. the needed capital,
Mn

T.

of all the people.

policies

.

Smith, Jr.,

Castoe, Secretary and Treasurer.

lives

by inflation or lack of
accumulation of capital, I believe
the timb has come when we must

consciously > follow
Which will encourage the.

are

Felis

Lawrence

ruption

all

a se¬

Officers

able

nomic

All States

have

we

escaped

naire solutions into

Managem't
—

Management Co. has been formed

v

What I believe is that

nomic

to release other funds for the use

rate of prog¬

without

need

we

wise

is

doing pretty well, but
quite well enough.
sure

courage.

extent

are

To be

nomic

tions

thing

important

funds, savings and loan associa¬
tions, savings banks, commercial
banks, and others. These institu¬

We are today going through a
performed, voluntarily, an out¬ period of uncertainty as to rates
standing public service through of interest. In a free
market, the
their encouragement of Savings balance between the volume of
Bond purchases through the years.
savings and the demand for money
The vigorous promotion of this
is influenced by rates of interest.
form of savings is one of the best We are
just emerging from a pe¬
ways of teaching thrift.
To the riod of 20 years^ during which

is

We Are Doing Pretty Well

'

unique system of

The banks of this country have

national obligations.

our

a

should

the United States.

A huge

being made
available each year for the prog¬
ress of the
country in satisfying
human
needs
more
fully
and

meeting

country, also,

institutions for savings, including
insurance companies, pension

a

proximately 40 million people in

individuals and in

as

This

Bond.

This, however, compares
with 8% savings a few
years ago,
and the amount and percent have

31

(2983)

make

come out

of

the needs of our cus¬
telephone service more useful and

everyone.

Thursday, June 21, 1956

The Commercial and Financial Chronicle...
22

(2984)

redistribution.

later

Through

Market

derwriting commission.

Committee conducts its operations

the Bond Maihet^
Restrictive Credit Policy

Effects Upon

Of

a

tfrians,

hiisinessmen as weu.
businessmen, as well

back to the collapse of commodity prices in the 1920's or the
business recession of 1937 to prove
Treasury as well as on the
when
credit
restrictive
measures were adopted
early in
U63 Hhistrate what I mean
And

Reserve

present
prcbtm

here
nerc

one
one

restriction

short-lived
ol repur-

..

rat|s curvef ranging

from

maturities has now
deny that, in general, the debf; been repiaced with an interest
-management and monetary poli- rate piateau at a level substancies pursued by the present retially higher than the peak rate
gime have produced excellent rethe old curve

Jhe

It is evident that since those

suits.

longest

,nll

T.

of early 1953 the
monetary authorities have greatly
anxious

"f

irYin_

days

improved their market techniques.

Government

Debt

then,

Issues

has

pretty well accomplished its
jective of ending what had
come
after World War II a

less

we

find

can

As

a

consequence,

the short-term area of the market

source

regarded

be

now

can

of

funds

»n case an

in

as

sure

a

amount
need should

any

emergency

This policy of lengthening
term of the public debt has

arise.

the

services

have

we

gufda^e adTice

&

if
of

iiy available. I think all sections
greatly aided the anti-infla- 0f the financial community want
tionary efforts of the Federal Re- to avoid that undesirable, and un¬
serve Board. For ending the heavy
necessary solution of the dilemma
concentration
of public
debt in which we dealers face. Perhaps a
tions

of

rapid monetization of such debt,

dealer, and

For their part, the Federal
authorities have done

the

Re-

which the

ply picture in the various matur¬

bond

tive

proceed to

..

policies.
on

the

Federal

which

matters

some

the

ultimate

members

the

of

the

are

of

concern

dealers
of

concern

financial

all

com¬

which

position
the

our

try

occupy

that of
the

of

a

the

For

some

time the United States

onuii,

undertake

we

finitely

greater
of

matter

scale.

just their secondarv

an

We,

Some

posi-

reserve

corporations

have

always used it for the employment
of
temporarily available funds.
And, traditionally, central bank
operations have usually been con¬
fined to this section of the money
market.
Now, however, a com-

bination
an

of

higher bill rates, and
increasing degree of financial

sophistication among corporations,
public bodies and eleemosynary
#1

n

+

J

funds has attracted

investors

to

«

^

a

C

_

host of

this market.

new

think

I

it is safe to say that the activities
of these newcomers on occasion

complicate matters for
Market

dentally,
tions

to

Cornmittee,
still
the

Open

which,

confines

bill

the

its

market.

benefit of all concerned

inci-

opera-

For

the

with sta-

securities

over

our

a'

$275 bil-

Our

;

trading

activities

institutions

■

1

afford

readily

a

^1-

1

We

*

also

perform

with

their

connec-

have

to

be

areas

the

obtains

are

brokers

those
where

of

transac¬

customarily handlpd bv

acting

i.

_

to

'

i.1

*

J.

their

holdings

always,

or

almost

mecia,

11.

'

_

i

1_

A

A

surprise, that short-term
of
municmal
bonds,

equipment

have

ondary

liquiditv

than

considerable

cutions in such markets

risk

to

our-

For

maturing

example, we take on
obligations being relonger term securi-

held

commissions paid to secure

a few basis points,
It would be unfortunate for the
entire financial community for

this state of affairs to be forced,

distribution.-We bid in the weekly

servp.

operations to include all Treasury

bill

market. '

auctions,

and

subscribe

-

tcf

eas-

ily absorb quite

for

our

exe-

can

by the banks and the Federal Reon

the

bond

government
$

l*

•

i

to renurchase
the

Federal

Moreover.

"

work

their

in

that the present

by

agree¬

Reserve

recommend

I

renurchase agree¬

ment be collateralized by Govern¬
ment bonds of any

the

celling

mahmtv, can¬

matqrity re¬

present

I prepared these remarks for
presentation to your Treasury 3 %'s of 1955 showed a yield of 3.03%,'
triple A and double A new cor-;
porate issues showed yields of
around 3Vz%; and single Aerated'

As

issues

such

operating

condi¬

tions, the government bond mar¬
ket can continue to be as nearly

perfect
world

a

market as exists in the
Without them, the

today.

market

is

danger of be¬
ing unable to continue to provide
in

grave

valuable services of great
tance

to

the

banks,

the

imoorFederal

Reserve, the Treasury, and the na¬
tion

at

large.

Flat

yields

Rate

and

Right after the turn of the year
influence of the January re¬
investment demand was much in

face of a
temporarily lighter new issue cal¬
endar, bond prices momentarily
gave a deceptive appearance
of
stability which vanished as soon
as
the new issue calendar began
building

up.

in

3.45%;.
to 3%%.
Expansion

Bonds

Now as we all know,

authorities

etary
with

great

Their

the

Moreover,, the pros-

-pect of a continuing high level

concern

the

of

economy

concern

of

the

mon¬

have
viewed the boomingtwo

past

years.

has been evidenced

by the hardening of money rates'
the

and

the money

on

pressure

supply in the marketplace. Should
their concern continue, this pres¬
sure
will continue to put a ceil-;
ing

the bond market. Should
prices will worki

on

it increase, bond

their

Should

lower.

concern

abate, the pressure they exert im
the

market can be ex-'
relaxed and bond
prices, as a result, would then;
move
higher. Should their con¬
money

pected

and fo¬

change its direction

cern
cus

to; be

heading off

upon

rather than

boom,

a

a

an

recession;
easing of

rates would be indicated.
This would, of course, boost bond
money

me

status

that

economic

of

the

long this situa¬

How

ouo.

it

moment,

the

maintenance

favor

odds

this

of

As
to

tion will continue denends on de¬

velopments
and in the

sible that

the

of

tion

in

in

housing,

autos

price of steel. It is pos¬
face a slight diminu¬

we

present

e;conomic

If the demand and sup¬
ply for long-term capital funds
are
in balance, the bond market

tempo.

be

expected

of fact, I believe

the

and,

A

around

improve and

to

bond prices move up.

Curve

Regardless of Maturity

evidence,

of

Economic

in

Pause

can

Interest

Double

3%%.

around

rated equipment trust issues now

seems

Granted

1930's.

the

most clearly evi¬
dent in. the case of the new issues.

prices.

striction of 15 months.

certificates, and
market
trading
somewhat less sec-

market

aided

with

Bank.

trust
corporate

out, perhaps by a broadcmng of Open Market Committee




market

bond

tions

in

long-term securities, and that the

by short-term investors,
subscription and later re-

will

liquiditv

which

Dealers should

securities market.

access

refunding
operations and cash financings at

Treasury
market

necessary to a
effective
government

functions

and

ments

other

important

underwriting functihns in
tion

'1^-1

a quick, broad
substantial market in which

to raise cash or to satisfy
investment requirements,

free

easy

Quite a few commercial banks
have recently discovered, much

and

can

responsive to the needs of
tuhe^atl0nf1 economy than would
case were we forced to act
appnts
asmd8eun's;
'-To better understand the market significance of dealers acting
to consider the tomoo

realistic bor¬

see

trading

since

believe

that government bond
obtain borrowing rates
which will permit them to main¬
tain
the
breadth
and
depth of

tem, to

dealers

point

money

the Federal Reserve Sys¬

ury and

be

their
innumerable
and
varied
needs; -Our work makes available

adjusting their

to these institutions

advance

banking system, the Treas¬

also

government securities holdings to

means of

ties

market

the

brokers
shvays, as agents,

available

with

worked

make

of trading and degree of

heads like the sword of

funded

bill

principals,

you

selves.

the

active, smooth¬
in
United

market

securities, and
trading activities, under¬

as

* dangling

Damocles.

financial

like to

rowing rate, for the purpose of
maintaining trading positions af¬
fected with the public interest. I
believe it is the joint responsibility

broader, more flexible and
liauid, easier to deal in and hence

demand-supply

in

an

the

market

bilizing short-term markets, some
way
of easing the now chronic

imbalance

bond

to

comPany that has a subsidiary> whicn to do its job, must
keep $23 billion of the parent asinvite
principals rather than as agents,
I

company's

should

I

possible solution to this

in

corporate obligations '

and single A's 3%

Market Problem

Now

development

Again,this is

afford

Solution to Dealer's Money

of the

Treasury

our

taken

ll0n

tions

on a

out

without
Market

indispensable

working

that

in-

as

tosseH

government

we

are

States

orderly

on

that

ly

are trying to run
~; r,

.7:

a

are

be

by action
the Open

maintenance of

on

exchange.
an

window

dealers

fact,

specialists book

■orally used the bill market to ad-

and
our
quarterback will have to give up
whispering his signals.

a

say

liquid market, at all times, in
specialty, United States Gov¬
securities. However, the
magnitude of our task and the
risks

carrying of

the assistance of

all

may

It does not stretch the truth to

ernment

Treasury
bill market has been
subject to heavy demand and
short supply.
oaiiKis
supply.
Banks nave genhave

for the

inventory,

gov-|
ernment bond dealers should have

Act As Principals, Not Agents

our

Committee Operations

suitable

short-term

all

Committee,

and

Broadening Open Market

now

I

\varning~by

same

specialist

stock

maintain

to

mem¬

market team
getting. We're

problem.

the

considerable,

very

we

as

floor

We

munity.

be

can

sense,

a

rates

market

own

In

are

;

.

market is the widening •
on

widest

going to have to get bank loaning

a

normal business hazard, we accept
the risk of market fluctuations

operational
and

for

pursued its stabilizing
Now I want to comment

which

has

we

-

compared .with-those pbtain-2
able on government "bonds. The
spread -in <yield -, in favor of the '
corporates is now virtually at the

more

risk, there is the ever present
possibility that our trading cal¬

Re-

with

other

the

<

about % of 1% dur-

noteworthy
bond

tainable

as

culations

principals,

as

from

little

a

than

ket

account and risk, we maintain primary trading markets in
all United States Treasury marketable
securities.
As
a
daily,

hardening ' of interest rates over
the past year bears witness to the
serve

Acting

of

for

■

as;

of the money

prospec¬

sales

and

basis

same

•:
;■

was

differential in the yields now ob¬

past, we're going

ask

to

, «ovprnmpnf ,Pouriti^ hv

d

the

on

issue

ing the past year.
A

bers

alHypes of instUubonal Investors^
a(Jded tQ the ordinary mar.

Government

a

purchases

have

Apd

Bond Dealer

long-term money mar-

ket has adjusted to the progressive

skill

of

an

rates, the immediate demand-sup¬

sa^s^'c^y sp'ues

Functions

arrive at

evaluation of the trend of money

excellent

job of maintaining dy¬
namic balance in our expanding
economy.
The relative ease with

common

we

the Open
indifference

the

have in the

teamwork

combSion

func- ity clasifications, and the

government

how we

a

to

10^1^
experience, logic, common
and market intuition. From

such material do

satlstactory solution.

a more

an

serve

the

of

we

coume

*

equip-

new

a

certificate

increased by

problems.

future

formerly,

trust

words, yields on highest grade t
long-term corporate < bonds have i

secu¬

inventory

we deal¬
to continue to function in

are

the

assistanie

or

on

ers

;
,

son

pnittee at quarterback. If

,

rates

3%s of 1986 were issued on a
3.50% basis and $300 million General Electric 3^8 of-19761 were
offered on a 3.47% basis. In other

playing on the same
money market team—the banks;
the Treasury, and ourselves, with
the Federal's Open Market Com-

sense

also

examination

based

are

by

Committee's

the curve in
interest

of

of 1986 and Commonwealth Edi-

We're all

And, of

of

are

occasioned

to dealer

„n

opera¬

are

we

of needless

and

losses

™

tutions may no longer be so read-

brief

nosUions

short

Today

Market

™„6

lnn„

nllr

Committee

less business in short-term

substantial capi„nH

pay

of the heavy

rities,

offer this service
trading posi¬

,in„

to

issue ..market, \

new

brought to market* on a neat and J
orderly, offering
scale running .
from the least yield op- the short¬
est to the most yield on the long- »r
-est maturity;
today's pricing is
apt to be all one rate from the •.
first maturity to the 15th, take
your pick.
A year ago, long-term )
triple A corporates were likely tp
be offered to yield around 3.15%. .
At a low point in the recent de¬
cline triple A Duke Power 3%s •

painfully
overhead cost
of conducting increasingly profit¬

maintain

must

we

tions of considerable size.

piace at the command of the Federal Reserve, the Treasury, the
banks, and other financial insti-

very short maturities also served
to abate the constant threat of too

SQh

t!>"'
"roH"
Naturally, to

happens, the
been able to

this

if

And

ness.

tion.

opera¬

out

rartv
carry

have

we

position.

our

Market

aware

tary and credit policy.

tually continuous round of short- mounting our inventory carrying
term refunding operations.
Over difficulties, we may be forced to
the years it has steadily length- restrict our trading activities in
ened the term of that portion of-ihort-Yem"■iovirnmfnts,'""or : to
the short-term debt which could. cj,ange odr methods o» doing btisinot be retired.

financial

its
fo
to

its efforts

in

of sur.

some way

Open

tions; and for the Federal Reserve
.

interest

of

•

period

ladder

old

ment

in

carry

the

Where,

And, of
course, our positions can be made
untenable without warning by an

of the banking
y,e Treasury in con-

with

nection

ob- aiready curtailed our ability to
beshort-term inventory. Unvir-

rate
to

;

partial

has been v almost.• completely flattened in the corporate
market and considerably y dimin¬
ished
in
the municipal market.

barrel, due to the dis¬
interest income be¬
what we are long and the

tween

taken place. The

pattern

over a

crepancy

pr'0biems

reserve

sys(em; jor

It has

,0 feel it even more

f

ly

Suude'eTtrthe secondLry

dealers .in

We

the

But today

market.

brisk rally from ;"j

a

now

this

During

different set of market

a

in

dent

new,

the past, carrying charges
inventory had rarely made go¬
ing long as costly a process as
being short. Today, especially ih
positions in short-term' obliga¬
tions, we dealers are continuous¬

.

If it continues, we are

its effects.

.

Treasury

the

the

United States Treasury securities
have been among the first to fern

„

Since

rate

new

fe?t^

the Bovernmem

o

■"»£ te™rket.

Lengthening

Success in

arfa

term

+hi<?

tobe

a

a

•

rally has been most clearly evi¬

commission for
Up until the pres¬

get

;

capital,

this decline and

extent of

market

no

In

investors currently m the marketPlace as buyers and sellers, and
the size and market area of their
activities.
We are, as it were, the catalytic
agents in the money market test
tube, speeding up and smoothing
the way for a.. multiplMty of

maturities to the highest yields on

will

observers

unbiased

the lows has

on

daily record review of the types of
of our long and short
positions, a

Few

take

,

de-

general decline in bond

a

prices, though

no

circumstances.

We supply that Committee with a

lowest yields on the shortest

w"sfaasfdLfsiveeanTrffec«ve
fast, decisive, and etlective

was

face

we

pnabip<. the Qnen

.

and

to the money

tvbical of the oast 20-odd

need

had

all

at

Treasury,

The

interest rate formation wmcn enaoies tne upen
Market Committee to gauge what
uuu .
..
.
..
"'
,

taken place in the

witwit

bear
ueai

can
un

wmcn

Fi¬

rate

heavy

with

long-term

for

caused

higher rate structure, our market
ingenuity and agility took care of
both market risks * and brokerage
commissions with great benefit

its refunding and cash financoperations. We freely furnish
the Federal Reserve with the m-

has

which

cnange

together

mand

no

get

we

ent time and the advent of

audition, we supply, gratis,
of market information
advice to the monetary au¬

and

sought but

their services.

Another matter of even greater for
importance is a by-produet of the ing
chanee

commission.

Brokers

risks

wealth

a

is

fees.

edge and advice at its command

for credit paiternsiypicai oi me past
ended, action to

the

when

ness,

temporary

Inventory

probably every- pronounced

as

year,

supply

can

times, has our professional knowl¬

nrnnonnred

that

place,

nancial consultants get a fee. Our

thorities.

-

get

we

counsel

Board

m

but

underwriting

bills in the mar¬
Through us the Federal

Inability to Carry Short-Term

oft the

job,

derwriting

and

as you

un¬

an

ketplace.

violence to the traditional central
bank.ng preference for money.
operating
in the nearest thing to

point. The maledictions heaped

my

sup¬

purchases

by

bond dealers do

sales of Treasury

.

to go

the

decrease

or

credit

of

obligations with maturities of up funds in periods of
bankersand to one year. This latter course stringency by means
I don't have would, it seems to me, do little
chase audition, we
agreements,
laonindve
In
fraditional central

by^nany

but

ply

not only bv poli-

criticism

severe

increase

to

ernment

further in¬

a

rediscount

know, recently took

which,

We gov¬

of

and

the

in

crease

Underwriters usually get an un¬

Open

the

us

loans

bank

Increasingly Profitless Business

also for

Treasury cash financings,

3

Continued jrom page

downturn
half

The

has

As a matter

the bond market

of the past year and

already

market has

a

a

bottomed out.
way of antici¬

pating future money market de¬
velopments.
Whether it will do
so more aggressively at this time
is a moot point.
This raises an interesting point
to

consider.

economic
be

If

a

getting

under

in our
should now

pause

iexpansion

way,

-

can

the

Number 5544

Volume 183

The Commercial and Financial Chronicle

...

(2985)

bond

market

have

precisely

be

expected

to be¬

it did back in
1953 and if so, would investment
tactics which were pursued with
great profit at that time be likely
to work with equal success in a
bond market upturn today?
Some here may remember that,
back

in

1953

the

sell-off,

some

passed

the

up

as

market

bond

investment officers
high coupon new

issues which then

to market,

came

Merrill

of the debentures will be
applied
to
the
reduction
of
short-term

Lynch Sells

bank

Securities Inv. Shares

loans

$49,505,000

which

on

amounted

ducts

to

Beane

Lynch,
and

Pierce,

associates

Fenner
June

on

15
offered
$7,500,000
of 4%%
sinking fund debentures due June
1, 1968 of Securities Investment
Co. of "St. Louis/* at T00%
and
accrued
interest.
This
offering

to

loans were used primarily
provide funds for the purchase

of

receivables

and

loans in the normal

for

of the

company's business.
The principal business of Secu¬
rities Investment Co. of St. Louis

consists of purchasing retail in¬
was
oversubscribed.' 7777
bought, instead, low coupon
stallment notes from, and advanc¬
A sinking fund beginning June
deep discount issues. They passed
ing funds to, automobile dealers.
up
maximum yield in order to 1, 1959, will retire 90% of the
The company also makes loans to
obtain portfolio insurance against, entire issue prior to maturity.
other finance companies, automo¬
a possible future wave of refund-Optional redemption may be bile loans to
individuals, and to
ings. A refunding cycle developed made
at
prices
ranging
from a minor
extent, makes loans to
shortly
afterwards
and,
conse¬
105% to par while sinking fund individuals for various
purposes
quently, such investment tactics, redemptions will be made at par,
and purchases retail
installment,
paid
off
handsomely.' Today's, together with accrued interest in
notes secured by other chattels.
bond market obviously affords a
each case.
In connection with its finance ac¬
similar opportunity.
The net proceeds from the sale tivities,
the company also con¬

Long Term
I believe

Company to

Admit Arthur to Firm

Joins

Now With Akin-Lambert

LOS

(Special to The Financial Chronicle)

LOS

ANGELES,

Hopkins Harbach:

(Special to The Financial Chronicle)

E.

Calif.—Marie-

ANGELES,

in

we are now

Schneider

is now with Akin- with Hopkins, Harbach & Co., 60£
Co.,
Inc.,
639
South South Grand Avenue, members
Spring Street, members of theof
the
Los
Angeles Stock Ex¬
Los Angeles Stock Exchange. Miss
He was formerly with
Schneider
was
formerly
with change.
E.

Lambert

..

Kerr

&

Bell.

C.

A.

Botzum

Co.

period

a

economic expansion..

Such

periods,
no
vigorous, are still

matter
how
subject to a
temporary slackening of the eco¬
nomic tempo.
When this occurs,

The
a

THREE

it's felt in the money market and

MEN

ladder

interest

of

rates

ghostly apparition of
pression-born

easy

AND A BUOY

and de¬

nine to

the harried portfolio manager. But
before going all out for deep dis¬
count

oil

in Search

bonds,

just remember, the
jet propelled price mark-up in
bond prices which developed in
mid-1953 began
petering out a
If such

later.

year

against

one

may,

will be

as

I do not

successful,

no one can

a

such

Here

sea

...

success

new

peak in

intense in price rever¬

up

177o...

an

all-time high in stockholders' equity

as

of

believe

not

you * will
lose very
high coupon new issues by
means of
refundings. And if you

many

them

back

American
to

when

again

people

achieve

;

the

in the

1

still

higher standards
of living than they enjoy today.
I

to

want

all of

tell

ler appreciate the warm and

tinuing

welcome

tended

to

pitality

we've

exceeded

heard

about

confessed

promise
I think

seems

in

of

this

our

hos¬

on

in

the

good plan.

a

@>

SERVICE

we'd

already
bright

economic

great dynamic

and

you

we've

got

Texas

to

into

even

future.

southwest¬

want

to

grow

put

everything
helping to make
than

greater

it

is

today.

W. M. McKenzie Opens
HOUSTON, Texas—Wilfred MfS
McKenzie is, conducting a securi¬
ties business from offices at 145

Wm

'■^"h

v...

■:*;

,

'«,s//,%%%;/,////y

Ashburn.

|yjtfA/X/vw/'#}/

Qtistezmi

King Merritt Adds
(Special to The Financial Chronicle)

SPRINGFIELD, Mo.—Hubert J
Shade has been added to the staff
•of King Merritt & Co.,

Y/s/W/.Kys/r/'.

Inc., Wood¬

ruff

m

w

Building.

Bache Adds

Staff

to

(Special to The Financial Chronicle)

COLUMBUS, Ohio
White
30

is

East

now

Broad

with

'»

—

James A.

Bache & Co.,

Street.

.

•

"

W/J,„

Wmb

'

_

"(Special to The Financial Chronicle)

FRESNO,

Calif.

,-v
•

—

Arnold

E.

Brinkmeier has become connected
with Hall &
Hall, Bank of Amer¬
ica

Building.

Samuel Franklin Adds
(Special to The Financial
Chronicle)

LOS
-

fos/#K-

/'#w '**Wx

.

.

Hall & Hall Add
-

ANGELES, Cal.—William

F. Otis has been added to the
staff
of Samuel B. Franklin & Com¬
pany,

;

the broader basis

Progress through Service

has

things
have

We

laboratory

well.

will all know what I

economy.

with

I

faith

\Ve think it's

as

when I say that that future
to us to promise even more

mean

ern

it.

my

you

southern

the

company's interests, but

ex¬

experienced

all

....

construction

dynamic growth continues.

CITIES

con¬

have

you

The

us.

sales
...

how deeply

you

at Salomon Bros. & Hutz-

us

gas

ultramodern Cities Service research

of what benefits the nation

The

determined

are

67c increase in natural

The growth of Cities Service is planned not only

economic

accelerates.

an

a

to assure that this

should lose some, I think there is
an
excellent
chance
you'll get

tempo

ratio for

production ap$ sales of petroleum products, with sales 1

believe it

that which developed in the
former period. Accordingly, I do

sal

impressive

far above the ratio for the oil industry.

other 1955 records: A

are

up

exploration. Records

1955's one-out-of-three

as

test wells

215 West Seventh Street.




are

discovery. The Cities Service

seekers, however, continue to chalk

turn-around should now occur, as

it'well

prove

records in both land and

bond market

a

exploration.

guarantee-since the odds for exploratory drilling

haunts

money

That it will

agrees.

the

and

war

Cities Service geologists, the buoy

men are

marker used in undersea oil

That this search involves great expense, everyone

bond prices improve. Then every¬
one's memory turns to the
old

•:

x.vs/s.y

Calif.—James

Keough has become affiliated

Expansion

Economic

of long-term

-

Shields &

& Co.

and

-

busi¬

offering were: The First Boston
Shields &
Company, 44 Wall
Corp.; G. H. Walker & Co.; Salo¬
mon
Bros. & Hutzler; Hallgarten Street, New York City, members
& Co.; L. F. Rothschild &
Co.'; of the New York Stock Exchange,
A, G. Becker & Co., Inc.; Cen¬
on
July
1
will
admit
Donald
tral
Republic Co.
(Inc.); Esta' - *
brook & Co.; Laurence M. Marks Arthur to partnership.

making

course

agency

Associated "with Merrill Lynch,
Pierce, Fenner & Beane in the

March 31, 1956. The

bank

Merrill
&

insurance

an

ness.

33

^

r

'

-X

6

>/'&

c >

}

'•//

,s,
-

'

.,A<%

'*, xs?.,

■

*

,

'

The Commercial and Financial Chronicle...

Thursday, June 21, 1956

(2986)

34

lyn, N. Y. is announced

as

of June

6, the amount having been raised
from

Bank and Insurance Stocks

News About Banks

$1,500,000 to $1,650,000
of

result

the
*

There has been

"high"

over

rates. Busi¬
inured during the

the

from

that,

rates

to

1930's

sizable to-do

a

money

became so

ness

—

point-of-view, were star¬
vation in proportion, that it came
to expect interest to continue in
the 2% area for prime names. But
business is not entitled to such a
banks'

shared less than the banks

did in

the nation's

banks can¬

circumstance the

not

should

or

share

not

the

in

rates of the
largely artificial and

low

The

1930's

money

were

"rigged" in order to help force a
return of the boom prosperity of
1920's.

the

those of the first

And

half of the 1940 decade ruled low

expensive
had to be financed as cheaply

because
war

fabulously

a

possible. The economy was so
long accustomed to the low rates
that, somehow, inflated prices for
almost everything from a candy
as

giant generating station
accepted. But not so interest

to

bar

were

a

These

rates.

.

this

to

low

kept low by a

were

plentiful supply of funds on the
part of the Federal Reserve.
Now, however, when the powers
behind
the
money
supply are

Mr.

1950.

the

bank's

34th

appointed

was

in much of this sevenperiod ruled well below book,
making it difficult for them to
raise
new
capital by means of
subscription rights. They, there¬
fore
were
obliged
to continue

year

1932 and
Assistant Vice-

an

Credit

Y.

N.

niggardly dividend policy in
order to build
up
capital funds., y\'"

sufficiently

to

meet the demands of industry

for

$

the

of

York, will retire

interest rates is

and

of Tne

serve

with the bank
institutions. He

as

member of the

a

Chairman

as

Trust

the

of

He will have an

Advisory Board.

of banks will *; office in the bank's main office
quarter, register building at 20 Pine Street. One

firming in money rates, it is co¬
incidental to the effort to put a

in

operating earnings1 of the order
10%, averaged, over the like

of

expanding bank credit
to prevent a feared inflation of
the general economy. Why, when
the economy is on a high plane of
activity
and
turn-over,
should

of

York

period of 1955. As the months pass

and

on

business not expect to pay

That

rates?

the

was

case

in the

the

In

York

New

the

of

case

13

This is

ish

bank

on

despite

stocks,

tional

had

words, in this later 12 months no
material progress was made so far
as
the rate of earnings on book
value was concerned; and if we
were

the periods of

to go back to

earnings, this average

leaner bank

would

figure

substantially

be

smaller.

calendar

the

In

year

1948

the
City

of .18 New York
(five of them have disap¬

average

banks

peared

by

banks)

was

merging with other
6.2%. Thus in ap-

*

>;v.

V,

■

the

President,,
S i g f r e d r A.

John

ston,
5

rads, Conrads
6 Company.

group's

Members

American

BROADWAY,

Telephone:
Bell

Stock

1949

Club.

Chase

continued

be

annual

BArclay

Teletype—NY

5,

is

which

forum,

served

and

followed

by
period.

in Banh Stocks

BANK

of INDIA,LIMITED
the Government

with

the

West

End

E.

Richards

asso¬

&

Aden, Kenya,

Branch:

Tanganyika,

Uganda, Zanzibar, and SomaliProtectorate.

Authorized Capital

Paid-Up
Reserve
The

Capital
Fund

Los

Angeles

Stock

Ex¬
|

Grannis Now With

£4,562,500

,___£2,851,562
£3,104,687

banking and exchange business.
Trusteeships and Executorships
undertaken




of

board

the

has

Ebbott

Mr.

Chairman of the Clear¬

of

He

Bankers.

active

of

Association

the

also

the American

in

Lester, Ryons & Co.
(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—Donald

F. Grannis has become associated

with

Lester,

South
the

New

Ryons

Street,

Hope

York

and

Co.,

&

members
Los

623

of

Angeles

Head.
is

was

Exchanges.

Mr.

Grannis

previously Los Angeles rep¬

resentative

Securities

for

Co.

At

North

American

4

Banking

by the New York
Department, the

National Bank of Phelps,(at Phelps
Ontario County, N. Y., was merged

by into the Security Trust

Brown

of

Rochester, N.

time

the

Company

At

Y.

the

same

Banking

Department
its approval to the Security

gave

Trust for

certificate of

a

Broad

to

banking

a

department,

55

Street.

increase

York,

*

*

Trust Company

announced

appointment

of

stockholders 15,capital stock (par
per share. The rights
to subscribe will
expire July 9.
The
company
has a capital of
$250,000.
to

shares

000

of

of

June

on

Alpheus

of

New

13

H.

the

*

Al¬

*

7

Mr.

First

National

field,

N.

Albert,

following experience
Certified Public Accountant,
associated

been
for

*

with

of

number

a

*

the

of¬

the

June 14 announced

on

election

of

by

its

the

for

J.,

assets

Bank

by

of

Charles

J.

Mylod

the

Elizabeth

voluntary
common

lod is President and

and

director of

N.

it

of

State

J.,

the

absorbed by
of

June 8,
placed in
The First

as

was

liquidation.

National Bank of Springfield had

to the Board of Trustees. Mr. My¬
a

purchase

was

bank

time

the

Spring¬

National

Elizabeth,

which

at

of

of

the

the

June

on

stockholders

Springfield bank

George O. Nodyne, President of
East River Savings Bank of

*

Following the approval

Bank

years.

*

the

New York,

*

Rutherford, N. J., is offering for

subscription

bert, Assistant Vice-President, as
head of its Empire State office.
a

value.

par

*

The Rutherford Trust Company

$10) at $25

*

Irving

same

*

.year

Division

a

Mr. Houston
bank's inter¬

the

to

Assist¬ shares of the

an

and

present,

assigned

national

Head

advanced

the

Goelet

Estate

capital stock of $137,500,
were
reported in

its

the

to

assets

of

Mortgage

late

of Mr. Goelet, Mr.
President
Goelet

investment

research

Trust

has

York,

been

on

June 19

Chairman

Colt,

of

it

an

was

b,y S. Sloan
the* Board.

Simultaneously, Mr. Colt made
known the appointment of Irving
Friedman
as
Manager
of
the
Graham Avenue
(Brooklyn) of¬
fice

and the

Gallatin

as

election of James P.
an

Assistant

and Henry W.

Treas¬

Parker

as

an

Assistant Credit Manager, both of
the

credit

analysis

and

investi¬

gation group. Mr. McCarthy, who
joined

the

staff

in

1936,

was

An

of

the

First

Springfield, "which it
organized in 1925.

was

#

'■

*

■

increase

$300,000

Chemical

the

Among
his
Mylod is

Mr.

the

he will

Corn

Board

the

River

succeed

Exchange

of

Trustees

Savings

the late

Bank

Louis B.

of

"!/•;■'

*

"

'

$150,000

in

* v

the

Plans
stock

of

to

Trust

&

York,

were

*

increase

the

Bank

*

the

capital

Commercial

Company

aoproved

indicated

capital

William

raised

the

$150,000

to

of May 29.

as

#

the

has

from

K.

Board

*

*

Paton, Chairman of

of

the

Farmers

Bank

of The State of Delaware, at Dover
and Edward F. Matthews, Treas¬
urer

pany,

of

the

Newark

Trust

of Newark, Del.,

in

Com¬
a

joint

announcement June 19 stated that

Farmers Bank has agreed to pur¬
chase the assets and assume the

Altreuter.
*

bank's

the

of

member of the Advisory Board

of

elected

Vice-President,

announced

division

Company

of

:

Mylod became

Co.

Estate

associations

East

Bankers

;>l.

amount

director

and

of

of

is stated

Goelet, as
With the death

Walton

Robert

General Manager.

On

the

President

was

National

1,

Jan.

Bank.

Jr., of

nell

in 1934 and re¬ capital of the Farmers & Mer¬
1936, to become chants National Bank of Matawan,
associated with the office of the N. J. by a stock dividend of the
signed

of

Charles E. A. McCarthy,

Evening News" of
May 21 at $6,765,125 at the year-

Corp.

Mortgage

*

*

Fifth

546

He was ad¬
1929, and

"Newark

in

Bar

rehabilitation of the
Corp.,
and
Union
Mortgage
and
Guaranty
Co. Mr. Mylod became President
and
director
of
the
Lawyers
charge

Lawyers

tion.
❖

Co.,

the

end.
The
same
paper
indicated
issue
that
the
thereafter was appointed in its May 31
State
Bank
counsel to the Liquidation Bureau National
of
Eliza¬
in the insurance department. In* beth had offered $100 per share
1933 he became
Special Deputy for the outstanding stock of the
Superintendent of Insurance, in Springfield bank. Robert S. Bun¬

mitted

New York State Bankers Associa¬

urer

Stock

*

&

appointed

was

was

a

Association, the Ameri¬
Institute of Banking and the

Assistant

Bank conducts every description of

also

later

other

Spring Street, members

in

13, St. James's Square, S. W. 1.

land

post of Senior
1947, and in
to

Co.,

Branches in India, Pakistan, Ceylon,
Burma,

in

was

President

City

been

New

C. 2.

(London)

Hill

change.

Kenya Colony and Uganda
Head Office: 26 Bishopsgate,

London,

has

Calif.—Robert

H. Hildenbrand has become
ciated

with

Harriman

Division

ant

can

LOS ANGELES,

of

to

he

1952

Bankers

621 South

Bankers

as

Ebbott

elected

President

With Hill Richards

7-3500

NATIONAL

following
with the

announced

June

on

State

%

Company. of capital stock from $5,352,350,
He served
four
years~with the consisting of 214,094 shares of the
U. S. Army, and returned to the par value of $25 per
share, to $5,bank after being discharged. In 437,350,
consisting of 217,494

a

ing House Committee of the New
York
Clearing
House
and
as

a

(Special to The Financial Chronicle)

1-1248-49

(L. A. Gibbs, Manager Trading Dept.)

Specialists

became

is

affiliated

was

Brothers

fice

named

and

Reserve

N. Y.

York,
C.

Na¬

Chase in 1930.

Mr.

the

to

was

directors.

of

the

is

by a nationally known

question and answer

Exchange

YORK

NEW

ston

Vice-

Chase Na¬

1930,

Southwest.

Sept. 14

on

%'

plan of merger, author¬

a

shortly

Vice-President

New York Stock Exchange

Members

he

Seaboard

of

advanced

7th

economist,

in

Bank

Assistant Secretary

an

Flanigan,
President.
Before joining
Manufacturers
Trust Company in 1941, Mr. Hou¬

has

Seaboard

and

Bank,

Sandeen

will

to

New

Horace

1923

of

post
the

of

in

as

Avenue, New York.

and
A.

"Fling-Ding"

Also

Park

for corpo¬
rate
financing over periods of
two to ten years.
In 1935 he was
appointed
head
of
the
bank's
commercial and banking relation¬
ships in 13 states of the Midwest
S.

Banking

value of $25 per share.

*

Manufacturers Trust Company

as

National

*

loans" made by banks

Asso¬

State

York

San

Rey,

Under

During
the
1930s
Mr.
Ebbott
played a leading part in the de¬
velopment of the use of "term

Co.,

its

Vice-

Assistant

an

and Equitable with

Con-

E.

a

Equitable Trust Company in 1929

Treasurer,
Paul

as

Army

the

mergers

t ary-

e c r e

as

left

tional

Ralston

Securities

serving

Vice-President of The

Ral¬

C.

bank

tional

Co., VicePresident,

addressed

120

in

Bank

Park

Air Force
1919, he returned to

the

President

&

Sandeen

in

take

to

f

at the Rockford Country

Laird, Bissell & Meeds

the

merger

After

1917 to

He

Sandeen, S. A.:

annual

STOCKS

until

1949

President.

officers;

hold

INSURANCE

from

York.

New

from

Elecl New Officers

ciation

and

Ebbott had

Mr.

National

Captain

Rockford Sees. Dealers

The

BANK

and

'

average

an

in national

business

Manhattan

-

the

of

to contend with.

1956,
ROCKFORD, 111. — The Rockof 7.2%, exactly
the average of the 12 months ford Securities Dealers Associa¬
ended with March, 1955. In other tion has elected the following new
12 months through June 30,

was

New

known

last
year.
His banking career began
in 1913, when he joined the staff

rate of

operating earnings on cap¬
ital funds (book value) for the

circles,

Bank

Chase

the

have

banks

the

vicissitudes

widely

international

banking

time to become bear¬

no

most

bank executives

been President of The Chase Na¬

replaced at the slightly
better rates now being maintained.

leading

stocks, the

City bank

mature and

loans

rate

have to be

higher

early 1920's when prime loan rates
went as high as 5%.

low

more

the

Hato

Leon,

appointment of Herbert W.

Houston

of

able that this group

brake

The

of

bank's board of directors and will

being felt in earn¬

second

...

New

*

branch at 252 Avenida

a

de

Ponce

New

of

of 43 years

will continue

time passes, and it is prob¬

as

June 1 of

July 31, after

on

predecessor

grudgingly allowing some modest

this

-

The

ized

Bank

Manhattan

a .career

"higher"

the

of

com¬

Announcement

*

of Directors

Board

Chase

effect

an

opening

*

*

highly conservative
investments, the almost parsimo¬
nious dividends naturally did not
help market action.
the

to

Brooklyn;

the

~

*

*

Percy J. Ebbott, Vice-Chairman

being

But

with

been

since 1948.

Juan, Puerto Rico.

credit in the expanding economy.

And,

according

by

■

Financial Management Asso¬

ciation.

earnings

has

Parker
pany

office,

Street

of the

members

are

and

their

ings

in

with

associated

Gill,

joined The Hanover in

stock prices

of

Y.

Department on June 7 approved
is made of the
plans of the Lafayette Bank &
by the
First National Trust Co. of Suffern, N. Y. to in¬
President in
1954.
He formerly" City Bank of New York, of a crease its
capital stock from $2QQ,on
was
in charge of the New York branch
May 31, at 57 East 000, consisting of 4,000 shares of
Street,
Mayaguez, the par value of $50 per share, to
City division of the credit depart¬ McKinley
ment.
Both he and Mr. Skelton Puerto Rico; also the opening on
$250,000, in
10,000
shares,
par

Because bank earnings
suffered as has been shown, bank

out

Wilson have been elected Trus¬

tees of the Fulton Savings Bank ef

Vice-President

Assistant

an

showing was, of course, the
dividend
pay-out ratio to

poor

earnings.

prosperity.
r

good times.
contributing factor

*

Paul W. Corinelley, President of the bank. Mr.
Election of Henry F. Skelton elected an Assistant Treasurer in
Conroy is associated with Blake
194o. V Mr. Fneuman, wno joined
and James T. Gill as Vice-Presi¬
6 Conroy of New York, being a
dents of The
Hanover* Bank of Bankers Trust Company through
former partner, and is a director
New
York,
was
announced on- the merger with Public National of Lasford
Corp., Erooklyn, and
June 14. Mr. Skelton is with the Bank last year, began his bank¬
The
Uvalde
(Texas)
Television
bank'-s 41st Street office and will: ing career in 1930.
Since 1932, Cable
Corp. • Mr. Wilson is Secre¬
have charge of that branch at the; he has been- associated -with the
tary and Treasurer and a director
end of the month. He joined The Brooklyn
office.* Mr.
Gallatin* of William W.
Fitzhugh, Inc., of
Hanover in 1926 and was named joined the bank
last year; Mr.

performance,
probably
none that are as basic
essential as banking that

greatly during boom periods, and
there is no good reason why, in
this

J.

Brooklyn, N.

are

"break" forever. Business prospers

*

announcement

factory

A

Bankers

and

a

of

Benjamin J. Conroy and James

CAPITALIZATIONS

proximately seven years of un¬
precedented prosperity this rate
of operating earnings on book in¬
creased only 16%.
While, prob¬
ably, one may find other indus¬
tries that made even a less satis¬

and

OFFICERS, ETC.

REVISED

Bank Stocks

there

BRANCHES

NEW

This Week

NEW

as

$150,000

stock.

new

CONSOLIDATIONS

WALLACE;

By ARTHUR B.

of

sale

on

of

State

New

June

11

liabilities,
Newark

including

deposits,

of

Trust.

Consummation of

the purchase is

subject to approval

of

Newark

Trust

stockholders

at

meeting to be held June ,30, and
by the. New York State Banking
and subject to approval by State
Department.:. Authority is granted
and Federal regulatorv authori¬
to raise the amount of the capi¬
ties. As of Dec. 31, 1955, Farmers
tal from $2,062,050, consisting of
Bank had total resources of $7,82,482 shares, par value of $25 per
422,932, and Newark Trust
share,
to
$2,103,300,
in
84,132
had total resources of 810,558,230.
shares, par value of $25 per share.
a

*

*

An increase in the

*

capital of the

Lafayette National Bank of Brook¬

Farmers

Bank

was

established

in

the

oldest

bank

charter in Delaware.

It has

hejad-

1807

and

holds

Volume 183

.Number 5544...The Commercial and Financial Chronicle

^2987)
quarters in Dover, Del., and oper-

Line

Building will remain. The
rest of the property will be util-

it is seated, eight branches.';

aces,

*

*

*

ized for

the

ness etc. in the new main banking and Montana.
Their deposits total
lobby immediately inside the en- in excess of $1,300,000,000.

project. The 10- trances. On the second floor will
story New York Life Building, at be executive and commercial loan
been named by the Citizens & southwest Fifth St.
and Second offices
while the third through
Southern National Bank in At- Ave., will be razed to provide a fifth floors will be occupied by
lanta, Ga. Mills B. Lane, President, distinctive "plaza" at the north the Trust department, operating
Three

-

new

*

Vice-Presidents have

new

entrance
Main

of

the

entrances

building, departments of the bank, and staff
building facilities... Actual construction of

new

the

to

w^l be on fhe Fifth and sixih st startnew ^building It isexpectedthat
the next spring. is added to
sides. There will be
street-level
a

entrance

also

on,Marquette, with First National will be able to

con-

tinue in its present quarters until

arcade direct to the bank. Thus

an

the

building will be completely integrated into the entire block

Robert

*

of
the
University of
Alabama, is leaving the University

.

Smith

has

next

member of the Ad-

a

„

Ernest G. Williams for 8 years

Treasurer

*

Brookings

been named

.

,

,,

month

position

...

__

35

„

.

to

with
_

_

take

the

_

executive

an

First

National

,

Board of the Mercantile Bank of Tuskaloosa, Ala. Frank

vlsory

Trust Company of St. Louis,
cording

to

the

St.

Louis

Moody, President of the First Na-

ac-

tional

"Globe

Democrat" of May 27, which notes liams
.

...

Bank,
will

_

"-"at Mr..Smith is a partner in the
brokerage firm of Smith-Moore &

said
take

..

that

Vice-President

Mr

Wil-

duties

up

.

as
7.7

H

Director

and

the bank, effective July

16.

of
Mr.

customers will be able to transact

its new home is ready, probably Co. of St. Louis. It is also noted Williams' duties will be
primarily
early
in
1959.
First
National ,n the
indicated that Mr. in the investment field in which
is
noted had a leading role in
c " 111
the
organization
of First Bank
Smith served as a special con- it is stated he has had much exStock Corporation in 1929 and to- sultant to Kenton Cravens, Presi- perience; also he will be active
day is the largest of its affiliates, dent of the bank, when the latter as a commercial
lending officer.
The Corporation has 84 bank. afwas
Reconstruction Finance Ad- A member of the Tuscaloosa comfiliates with a total of 90 offices
situated
in "73
communities
in mimstrator during the early days mumty since 1920, Mr. Williams

their

Minnesota, Wisconsin, the Dakotas

with

convenient

four

streets

and

National-Soo
Street-level
note

of

from

access

the

from

Line

B

u

banking 4s

the plan

it

all

First

i 1 d i

the

is stated

n

g;

keyand

upwards of 90% of First National

C.

Artnur

reports

Herbert

deposit,

account

new

it

s

...

_

.

,

...

,

..

,

busi-

,_,

•■

,

.x

of the Eisenhower Administration,

is

a

„„„„

,,

native of Macon, Miss.

Kay

J.

Dickson

has

•been

promoted
from
Assistant
Vice-President to Vice-President,

1

J. A.

Hall, III, from Deputy Comp¬

troller to Vice-President and Dep- !
'

■

uty

Comptroller and Arthur C.r
Ray from Credit Auditor to VicePresident and Credit Auditor. Mr.
Lane

also

'tion

announced
W.

of

Assistant
ant

Trust

the

promo-

Walker

Officer

from
Assist¬

to

Comptroller and the naming

of
•

Ray

six

officers.' The

new

new

officers include Edward A. George

Jand

T.

J. Monroe, Jr., Assistant
Officers; Mrs. Irene Me:Lendon, James H. Sheehan and
•Douglas A. Smith, Assistant
•Cashiers; and Omar Smith, Assist-.,*.':
•

Trust

-ant

Credit

ihas

been

•

Auditor.
with

Southern'

Mr.

the

;*'<

Dickson.
& *

Citizens

National

'Bank

since

"

"

V-

t

1947.'Mr. Hall joined the bank in
is Secretary of the At-

'

•

.

* '

71935: He
'-lanta
of
•-

Conference,

Bank

National

Auditors

and

Assn.'

Comp-"\

trollers. Mr. Ray joined the bank
in 1926.
*

r

Four

♦

elected

•were

*

assistant

new

at

Savings Bank of Chicago
13.

Tne

and

June

on

banking department
of

new

officers

another great name in oil joins DRESSER

cashier.s:

Harris Trust

promoted bythe board

directors
Arthur

W.

Harley

and

Becker,
Theodore H.

Feltes,
John

S.

Smith.

adds

Mr.

a

banks

Feltes is also

ing

divisions.

loaning
a

member of

Dresser Industries welcomes SIE
Dresser industrial team. This group

*

*

Y

Plans for the erection of

building,

been

National

its

for

Finalizing
it

after

let.

This

probaHv

National

banking

of

quar¬

architectural
is

now

which

—

world's

means

—

.•

has become

a

the

.,

.

and combines

to

make the Dres¬

symbol of superior products and services
standard

of

comparison the world

over.

member of the

SIE seismic systems in

opera¬

today have made significant contributions to the

petroleum industry's remarkable record of finding

new

of oil and gas.

Coupled with this, SIE's recent
developments in the new field of automation provide an

reserves

strumentation for industrial

reduction equipment,

Oil

and

a

wide

range

EQUIPMENT

of electronic lab¬

AND

TECHNICAL SERVICES

•

GAS

CHEMICAL

ELECTRONIC

recording instruments. Many SIE

P. 0.

BOX

718

REPUBLIC

NATIONAL

BUILDING

•

DALLAS

21, TEXAS

s+art the ^arlv part

can

with

observ¬

100th

an¬

Olean, N. Y.

Magnitude of the project is in¬
dicated by the fact it will occupy
much of the entire block bounded

and

and

com¬

INDUSTRIAL

oratory testing and

CLARK

Fifth

automation, electronic

puting instruments for measuring fluid and gas flow, data

the bank

of First National's

S.

are

a

construction

niversary.

Ave.

industry

Dresser team. The many
tion

that

largest manufacturer of exploration equip¬

for the oil

plus y*

contracts

1957—coincident

ance

base unit of

First

actual

that

office

of

announced

is

underway,
be

a

which

will utilize

states

member of the

highly advanced electronic and electro-mechanical in¬

stories

details

a

of independent—and

equally important contribution to industry. These include

20

rising above

space,

will

Minne¬

of

SIE

ment

stories

least

at

ters.

Bank

ser

It is announced that it will

apolis.

five

new

25 stories in height,
made known by the

First

have

a

electronic industries

.:•".'•

some

have

as

integrated—companies supplies equipment and services
to practically every phase of the oil,
gas, chemical and

loan¬

a

division,

*

by

industries.

pliiS-f-

Mr.

having joined the
Harris Bank in 1950; Mr. Harley
a
28 year veteran of the Harris,
is currently manager of the bank's
bookkeeping department. Mr.
Smith joined the Harris Bank in
1937, and now serves in a loan¬
ing division.

of

used in

dimension to the,

new

Becker joined the Harris Bank in
1951.
He is a member of one of
the

developments in electronics and automation are widely
production and processing applications in many

Southwestern Industrial Electronics

Charles

H.

are

Sixth Sts.,

Marquette,

Second

in

which

only the Rand Tower, Thorpe
Building and First National-Soo

area




LANE-WELLS

BROS.

—

Founded 1880

Los

DRESSER-IDECO

7

Columbus, Ohio

—

Angeles, Calif.
MAGNET

Founded 1920

COMPANY
—•

COVE

Founded J 932

ROOTS-CONNERSVILLE

BLOWER

Connertville, Ind. —Founded 1854

BARIUM
SECURITY

ENGINEERING

Houston, Texas; Malvern, Arkansas;
DRESSER

MANUFACTURING

Bradford, Pa.

\

—

DIVISION

.

Creybull, Wyoming

—

Founded 1940

Dallas, Texas; Whiltier, Calif. —Founded 193?

Founded 1880
PACIFIC

IDECO

Dallas and Beaumont, Texas

—

Founded 1920

PUMPS

Huntington Park, Calif.

—

Founded 1923

SOUTHWESTERN

INDUSTRIAL

Houston, Texas

,

—

ELECTRONICS

Founded J 945

...

36

The Commercial and Financial Chronicle

(2988)

country chemical production

own

Competition, severe ruthless competition, steadfastly
limits the rewards of such men and such investments. The

Continued, from first page

Thursday, June 21, 1956

...

has

risen

400%.

For half

We See It

As
are

politicians in their wisdom, for the most part kowtowing
to organized wage earners who represent mass voting
power at election time, have seen to it that similar compe¬
tition shall not bear upon wage earners who combine and
conspire to do things that no one else in the nation—the
farmers excepted — are permitted under the law to do.
And so it happens that the steel union can with perfect
lawfulness and apparently without losing face with the
rank and file lay claim to what others have done—not only
lay claim to it but defend their claim by acts which no one
else is permitted to perform.
Oh!
Productivity, what crimes are committed in
thy name!
1

expressed in terms of percentage

change. Thus, if out¬

rises from ten to fifteen tons without
change in the number of man-hours, productivity is

put in the above case
any

said to have

increased 50%.

Now the fact seems to

be well established that in most

nearly all industries, productivity,
or output per man-hour has risen during the past decade
"by a very appreciable amount. It has, as a matter of fact
risen substantially during the past half decade. But, why?
Is it because these wage earners, whose output has been
moving up, have applied themselves with more assiduity?
Have they developed more skill?
Have they organized
themselves in such a way that the totality of their produc¬
industries, perhaps in

'

*

;

,

selves with the matter of

work?

The claims of the union's leaders, and more spe¬

to

questions.

your

too, has played
in

Yet

so

far

observe there is not

a

scintilla of

The
generally speaking, have been much inclined to

evidence to

unions,

as we can

support any such claim or conclusion.

establish rules and restrictions which tend to curtail rather

hour of work, and
for the most part union officials have disavowed any inter¬
est or responsibility for the results of the labors of their
members—and have regularly raised a fuss if management
took any steps which could be construed as a "speed-up,"
obliging men to apply themselves more rigorously. It
seems to us quite obvious that the cause of higher output
has to be sought elsewhere. Indeed, we can not recall any
claim seriously made that the efforts of the wage earners
themselves had any important part in improving output in
than increase the output

of the

men per

chemical

science

and

have

know

most

you

The fact of the matter is that it would be strange,

and

certainly distressing not to say alarming, if the output of
labor per man-hour had not been rising of late years con¬
sidering the millions, nay 1 billions, that have been ex¬
pended in increasing and improving the tools and equip¬
ment with which men produced goods and services in these
days and times. Something that is now called automation,
"but which appears to be nothing more or less than a con¬
tinued development of mass production techniques long
known and practiced in this country — further develop¬
ment for the most part made possible by the perfection of
electronic techniques, and by various scientific discoveries
and the broadened knowledge of basic science—is respon¬
sible for the enlarged productivity. By what process of
reasoning labor claims the right to higher wages for
achievements in science, mechanics and general manage¬
ment—in which they have had no interest and no
part-—
is a mystery only a little less strange than the
general
acceptance of this claim by the great rank and file.
Why Better Productivity
If there is any doubt
the basic causes of the

in the minds of the reader

as

to

high rate ojt productivity in this
a few pointed questions. What
would happen to
productivity in the steel industry, or any
other industry for that matter, if the
ordinary telephone
were made
magically to disappear from the face of the
earth? Suppose electric
power were not available almost
anywhere and everywhere in American industry; what
-country, let him ask himself

would the output per man-hour now be in this
country?
Where would we be if the internal combustion
engine and
suitable fuels had

not

been

brought to such perfection?

And, how much did the wage

earner

have to do with any

of these achievements?

knowledge in

istry.

I

recognize,

nificant
I

it

as

perhaps
when I

am

patience

the

about

«

Germany.
formed

I

know

you

certain

was.

to

formality

But

doing?




of the wage earner
through the decades and as it is still
1

we

productive strength. Where,
instance, are the centers of
production?

produce?

not

do

they

records

are

far

are

How

This is
Statistical

establish.

to

eaSy

in-

from

complete,

can

besf be
without

nized

complete

with

definition

"Chemical

of

the

term,

Industry."

Production

Both of us,

Americans and Ger¬
mans alike, are rapidly becoming
specialists. A specialist can be de¬

mates

constantly

in

about

of

gets to know
less

and

we

who

someone

as

And

more

able

to

fibres

worth

and

in

chemical

of

pharmaceuticals.

1955 to
of

to you in

volume

Nevertheless,
hope

we

careful

by

lion.

esti-

ascertaining the distribution
chemical production through-

a"* ^ w0*?d* ^agJ954'^ w°r?

keeo

pur¬

amounted

year

to

no

1955 barely reached the
1953—about $45 mil¬

Consequently,

in

chemical

$20 million

us

1955

the

industry sold

dollars

more

than

supplied you—whilst in

we

1953

^ was ^be other
I

cannot

cauld

market

how

is

anyone

your

being threat¬

by Germany's chemical
since

—

of

they

But

ex¬

less

are

American

duction.

to

way round

conceive

possibly contend that

domestic

have succeeded

we

Your

chemical

of

American

ports

Statistics

German

In

to $44 million

less than 23% of our total imports,
On the other hand, our shipments

0.2%

specialists,

as

alwavs

not

are

and

more

less.

million

products, especially basic chemi¬
cals, plastic materials, chemical

ened

frankness.

than

chemical

pro¬
■

>

if

even

our

chemical exports

have declined

you

German

American

-

whole is increasing

since

1953,.

trade

a

as

by year.

year

picture, par- ^Turop^oTof worlTproduc- ^cording to our government's
countries" other' than Uo"®^™ Europe^irfcEdtag ton
14? lho?t
stonr?oo?hUortViSitS " ^ countries together produced no 1955. During these six years we
provided 17%.' All othef
we
simply too short.
abreast of the whole

ticularly

in

m

*

Therefore,
lean

forget

shall

I

and

back

your

ask

to

try

to

problems

own

troubles while I

you

and

relax

tell

you

and

some

of

ours.

I

not

am

salesman.

a

goods

to

aware

than

sell.

No

I

the

of

being

country.

I refer to

responsibility
States

is

far

by

the

which

your

awesome

the

the

United

affairs

European

from

solely

the

however, is
why I wish

considered

are

American view¬

point.

First of

every

all,

be

promoted

of

efforts

the

for

founded

tive

in

on

Paris

by

wel-

OEEC—

European

Cooperation

was

—

American

which
initia¬

and

eventually led
of the European

creation

the

We

means.

Organization

Economic

.,

.

.,

supranational authority,
the

bines

of

resources

Luxem-

bourg and the Netherlands

and

mining
&

we

in

industries

steel

consider

towards

com-

Belgium,

Italy,

Germany,

France,

be

to

-

the
and

first

a

integra¬

European

tion.

which

I

these

speak to

but

same

the

six

efforts

countries

making towards building up

common

man

43%

and

roughly

two-thirds:

Great Britain, 7%; Western Ger-

6%; France, 4%, and Italy,

Let uS compare today's

production

figures

in

chemical
Germany

w^h those of 1938,

the last prewar
The German Reich at that

year>

had

time

22%

of

against

many's

of

West

Ger-

The

today.

state-

therefore,

position is,

prewar

unfounded.

And

yet such allega¬

and

a

as

a

European market.
^

you

^

So
^

not only as a Ger-

chemical manufacturer,

European.

We

I

hope

through these efforts of integra-

am

that

aware

assertions

are

not

most

of

made.in

bad faith, but are often due to
misunderstandings that arise be¬

the

German

is
compared with the economies of

cause

yya

when

at the end

we were

of the

at rock bottom

level.
Our

postwar recovery program
late — in 1949.
Not until

began

that year did currency reform and
the establishment of our Federal

Republic make it possible to
cons{ruct

fcermany

our

re-

destroyed factories.

has

indeed

improved
recovery has

sjnce thep. But our
hardly been miraculous!
The

OEEC

j

shipped

bases

year
a

1938.

true

This

index

its
on

pro¬

picture of production

growth in Europe and the world.
mu

An„o

u

twice

worth

goods

$3.3

We

billion

$1.5

imported from the U. S.
In
1955 alone, our
from the U. S. totaled

billion.

imports
$762

million, the highest figure
achieved so far by your exporters
Qur

large

from

imports

your

country are not simply a result of
the general economic trend. They

actually part of our economic
policy. Our government encour-

are

buying from your manufacturers by constantly increasing
liberalization of German imports
from the dollar area.

ages

As for chemical trade with the
rest of the American

here

1954

In

mjllion

tries,

while

worth

to

ucts

hemisphere,

the facts:

are

the

we

of

Central

supplied $17

chemical

prod-

American

S.

U.

million worth.

coun¬

them

sold

$200

To South America

exported $60 million, the U. S*

we

$220 million.

over

In

Canada,

have

we

hardly

managedeven to gain a foothold.
Canada bought $4 million worth
of

chemical

from

products

us,

while the U. S. supplied over $210
million worth.
U. S. exports to
Canada

equal

alone

the

of

ports

from

I

think,
,

are

total

just about the
chemical ex¬

Western

all countries

,

,

As

a

showing

Germany's

.

to
whole,

Germany

overseas.

in
,

.

,

chemical trade is not spectacular
c mPare<^ W1*k prewar times,
1938,

traded

ket,

in

of
the

all chemical

Great
U.

Britain's,
S., only 15%.

1938,

the

goods

international

Germany's

area

share

mar¬

24%,

was

16%,
and the
At that time, in
now
comprising

Germany had 18% and
now separated Eastern parts

Western

JOEEC figures show

that West German chemical pro-

6%.

During

^rewlr dllSbainyEn<ilandd

Italv

™til

^949'

times that of

your

gap

Prewar days, in England,

much from

as

bought from us!

to you and

In
u

nowadays

comparative production indices
the

as

economy

w

other countries
war

you

that Germany has regained

ment
its

6%

over

chemical

world

production

vides

welcome

also

We

a

for

count

these

in Germany feel
integration of

we

should
possible

the

come

step

with

In Western Eu-

however, more than a dozen
countries represent the European
share of 30%.
Four of these ac-

press.

economic

the

Europe

are

States

tions do appear frequently in the

European Integration

that

of

2V2%.

of the West

reason

share

American

rope,

many,

already wide
understanding of Germany and
Europe. Perhaps I can even suc¬
ceed
in clearing up some mis¬
understandings that arise when

as a

North

refers to two countries only:

today

to contribute to your

the

45%

United

world

leadership
concerned.
This,
the

no

more

tremendous

as

precisely

is

borne

in

bears

I have

one

burdens

as

The

the

bought

you

than 8%.

more

Canada with 2%.

which

which made it possible for the
output
to rise as it has done

suc-

policies for this
should know our

our

much

in

there

$22

face,

to

and

gauge

WOrld chemical

you

well

defend

we can

us

ex¬

we

Official German statistics show

largely because we do not as yet
have
an
internationally-recog¬

that

face

your

tell

situation

how

are.

things

explained

for

indulging

sold

you

that in 1953 you supplied us with

chases last

overall aim,

try

years

chemical goods than

ported to you.

politically

enough

two

past

v more

$65 million.

To

sig-

as

bined!

course, all these improvements, not to
say industrial revo¬
lutions, have cost huge amounts of money. What of the
hordes of investors,
large and small, whose savings sup¬
plied the wherewithal for the improvement and advances

what I am going to tell
about German-American trade

world,

Payments Union. We welcome the
Coal and Steel Community which,

And what of that host of
managers and industrial
strategists that have followed these elder giants? And, of

Foreign Trade Data
I think

share

of chem-

questioning could be profitably em¬
to that method of organizing human
endeavor
ordinarily known as mass production? Henry
Ford, the elder Rockefeller, Carnegie and a dozen others
of like sort are more
responsible for the high productivity
of labor in this
country than all the wage earners com¬
ployed with reference

the chemical field.

and

own

chemical

what

happened to foreign trade in

rose

however, that

once

chemical
see

us

1954, the figure

longer

no

world

Now let

with America,

man's

to

the field

industry is

our

to

A similar line of

has

cessfully the ideals of the Western

much—as

—

for

much

and economically, so that together

industry,

contributed

of

We

strong

come

important role

an

fined

most industries.

So

production.

tion that Western Europe will be-

economy,

Historically speaking, Germany,

No Evidence

time ac-r

many's!

page

national

own

that

at

in chemicals will surprise quite a
number of you.
During each of

German Chemical Imports
—Are They a Threat?

production and brought pressure

cifically, the claim now put forward by the steel union
seems to imply an affirmative answer to some or all of
these

from first

which

S.

Today, however,
American production is more than
seven times as great as West Ger¬

the

individuals to work for larger output per hour of

upon

the U.

,

Have their unions been concerning them¬

tion has risen?

duction, it still ranked second to
counted for 29%.

you

Continued

century, from 1890 to

a

1940, Germany played a very im¬
portant part in the chemical world.
In 1938, with 22% of world pro¬

and

after

the

war

Germany was almost

ta y entireiy barred from international
and Norway, production is three trade. Naturally, this caused a
prewar.

And in

in

chemical

supplies

which

Volume

183

Number 5544

The Commercial and Financial Chronicle

...

(2989)
other countries

gave

temporary

a

political, economic and social
defy solution. One of the most
pressing of these problems is the
Imports and Labor Costs
integration of some 12 million
So let me
go on a bit further. refugees from German territories
An American trade
journal pub¬ in the East.
lished an article in
February un¬
It is our task to see that these
der the
heading, "Chemical Im¬
people, who have lost all their
ports—Are They A Threat?" This
possessions and their livelihood,
article
refutes
effectively
the are provided for. This is a
very

advantage.

argument that the German chem¬

ical

industry is indulging in
called "wage dumping"— an
cusation that has been made
and

over

again

during

soac¬

over

the

past

years.

"Labor costs in other
countries,"
this magazine
says, "are difficult
to compare when
using only wage
rates as a factor.
Actual
-

wage

rates

do

costs

per

not

indicate

the

labor

unit of production."
How true this statement is!

examination

the

of

An.

You

—

that

difficult
Eastern

undertaking
territories

of

since
the

the

former

well ask—how do

may

Germany in 1945, it is remarkable
that West

Must

Well,

Export to Import

we

can—if.

maintain

can

of

ume

ceed in

this

imports

keeping

of

zone

great
and

That

is,

only

if

at

a

In

1943

we

are

compelled

to

im¬

we

consume

today.

Another

ample of this change in
pattern is that
to

import

coal

per

we are

some

our

ex¬

trade

forced today

15 million tons of

chemical

pre-war

us

Take
area

on

Germany was organized
the principle of vertical inte¬

gration.

Chemical

located

East

wherever

plants

were

conditions

German

factories

Fortunately
search

and

in West

It

our

soda

and

chlorine, 40% of its carbide, 60%
of

its

its

synthetic

methanol

rubber,

and

88%

of

of

its

64%

potash.

year.

Looking

splitting-up

of

eenters,

had

at

this

point

in the reconstruction

German

for

Here

chemical

your

of the

are some

We
and

have

six

Church

of

return

that

our

war

of

capital.

At

discovered

we

country
more

more

has

and

chemical

industry

was

much split up as Germany

as

The

Marshall

nificance
In

order

to

place

our

new

footing.

gen

survive

factories

on

Large

we

to

entirely
plants for

Our

an

basic chemicals

products which

had

and

nitro¬

had

we

for

plants

suffered

Plan's

us

and

terribly

is

paid vacation days.

paid workless days
effect

because

chemical

companies

from

Continued

for¬

on

six

German
about to

are

introduce the five-day week.
•

As

of

matter

a

fact,

company, Farbwerke

already

done

this

Furthermore,
to

up

tion

own

Hoechst, has

last

October.

order

to

make

extent for the reduc¬

some

in

in

my

workers'

checks,

Business

a

major portion of the lost hours

is

pay

being paid for by the employers.
This

the

means

other
per

10

to

equivalent of an¬
paid working days
are,
in reality,

15

which

year

holidays.

In effect, we pay for
workless days more than
the American employer does.
7
Furthermore,
to
the
average
hourly wage of 75 cents paid by
big German Companies, you must

the

add

high

costs

of

the

passes

25

some

•e-and-buggy"era

social

our

services. The bill for these are at
least
25
cents
an
hour.
So
we
arrive
per

at

a

of

wage

least

at

$1

hour.

But still another factor has to
be considered. When you
compare
the number of workers in the
*

big

German

chemical

the value of

duction

factories

their

with

and

labor and pro¬

similar big

firms in

the U. S. you make an

discovery:

In

astonishing
industry, the

your

production rate per work is 2
2% times greater than ours.
Now you can see

that

labor

our

why

costs

to

think

we

SUMMARY OF
Nine Months Ended April 30th

equal

to yours. So far, I have
hardly • mentioned
one
of
the
major complications of our pres¬
ent

situation.

change

that

This

has

is

RESULTS

about

are

the

occurred

Income

Sales

of

1956

Products,

Services, etc

vast

in

from

our

Net

population and in our industrial
position due to the division of

Profit after

$70,528,824

on

Provision for Federal Taxes

Income $
on

The

whole

know—is

One

in

This

through
the

of

cut

Curtain.

of

the

side

of

Eastern

Germany

two

of

Germany
world

and

Income

Germany.
belongs to
the

Earned per Share—Common Stock

(1,535,074 Shares)*

other

to the Western world.
It is

as

if America

were

*After giving effect
Common stock in

severed
*

in

completely cut off from the

award

-

$2.66

$1.31

to the

issuance, of 191,884 additional shares of
February, 1956/ pursuant to a rights offering.

in

non-recurring
litigation.

income

of

$378,644,

resulting

from

rest.
(Subject

under

now

$ 2,265,317

*

Includes

half, at a line along the Mis¬
sissippi River, with one half being
In Germany, the areas

$ 4,336,732

Profit after Depreciation and
Provision for Federal Taxes on

right

passes

heart

2,290,461

Net

you

by the Iron

line

4,414,494

"

Europe—as

8,751,226** $ 4,555,778

In¬

come

Division

$60,933,436

Depreciation but

before Federal Taxes

Germany into several parts.

to

year-end adjustments and audit)

Russian and Polish administration
account
for
25%
of the former

territory
These
of

of

the

the

are

German

Eastern

Reich.

territories

Today's business thrives

on

communications—the faster the better.

Germany. The remainder—

Central
is

and

again

Western

split

into

Germany—
two

parts—

one, the
the

Soviet-occupied zone and
other, the sovereign Federal
of West Germany. The

Republic
Soviet

Zone

neously

which

called

is

often

erro¬

war

another 25%

West

ters

of

Germany
its

.

important engineers of business systems

toward

that

greater efficiency topiorroiv, readying American business in every way

helps and hastens the exchange of information.

When the speed of a word means business—check with

Germany

holds only half of the
Hitler

.

of pre¬

Gerpnany.

Our

.

utilizing McBee methods. Research and planning today is directed solely

Eastern

Germany
is in reality Central Germany and

accounts for

Realizing this fact, Royal McBee is not content to be simply the largest
manufacturer of typewriters

but

of

area

population.

In

Royal McBee.

today
of pre-

three-quar¬
conse¬

partition of Germany has
brought with it many problems—

quence,




ROYAL

M9BEE

CORPORATION

Westchester Avenue, Port Chester, New

York

see.

the

had
war.

While inflation raged, our
country

Further

large

sig¬

to

equipment

going into

are

the

West

great

plain

your

generally

our

impulse for the revival of

State

tnan

the

economy, and I can only re¬
our
profound gratitude for
this great help at the
right hour.

industry.
why:

paid

that

peat

reasons

holidays

¬

industry. It provided the

that labor costs of German chem¬
ical production are about the same
as

re

stepped
in.
The
Plan helped
enormously

shows

record

of

remained

our

and

the end of the

many

at this

r

science

itself.

caustic

be

States

Marshall

ciency

just

of its

to

Germany.

was

United

initial

comprises the Soviet
zone produced 30% of
Germany's
sulphuric acid, 43% of its soda
now

had

newly erected in West Germany.

offered the best chances for effi¬

ash, 38%

result,

The

Western

very

the

merly obtained from Central and

production in Eastern, Central and

on

large.

industry looked

suc¬

we

industrially

chemical

our

hopeless.

Soviet-occupied

world

which

we

vol¬

exports.

Germany has had

impact
the

chemicals alone!

port one-third of all the foodstuffs

recover at

/ After the war," the prospects for

enormous

up our

The loss of the

German
our

Germany did

all in chemicals.

of

Reich supplied the bulk
agricultural products. As a

we

do all this?

37

an

page

3H

38

The Commercial and Financial Chronicle...

(2990)

Continued from page

In

this

perity

German Chemical Imports
—Are

They

sults of these efforts are now be¬

coming visible. From this Sovietoccupied East and Central German
industrial area, considerable

quantities of chemicals, plastics,
-fertilizers, etc., are appearing on
market.

Control

Chemicals Under Russian

Large-scale,

chemi¬

up-to-date

cal

from

learn

the

The

rapid

Association

made by the

progress

chemical

of

Industries, I

German

am

a

room

Chemical

member of the

is-.pulling the props out from under the industry's

traffic

record dealer inventory.

past week were 102,544 car and
S. plants compared with 105,074
21,480 last week. In the same week a year ago output totaled
139,743 cars and 25,694 trucks.
:
\
;
Behind last week's assembly fall-off was labor trouble at
Counted

the

"Ward's"

by

the other through total¬
itarianism—two diametrically-op¬

22,035 truck comnletions in U.

posed conceptions of

and

The

and his

man

vocation.

and

nature

difference

,

between

these

East

West

and

the

West

Germany.

know

that

We

31,000 cars scheduled, were General Motors Corp. and Ford Motor,
Company.
Z--:'Z.-i
\1ZZZ.:ZZZZ.
i
:V '
:^
Elsewhere, the reporting service noted a scheduled shutdown
in American Motors Corp. Rambler output next week, following'

in

fellow-

our

by

-

due to in¬
Z...Z;..-y ••.;
Consideria£#resent trends, "Ward's" stated the auto industry
is pointing towards a near record *3,155,000 new car sales for
January-June, nearly equallying expected production of 3,200,000 units.

"

*'

Such

operations, in effect, pinpoint the pattern of the indus-;

try's operations-for the entire third quarter, it further noted.
-v-■ '-r:'?%,iZ-. >•;:&■.
wz:^
Steel Production Expected to Reach 95.7% of

can

see

from

A last minute rush to

without its

The

still

could

be

shipments already promised them. Orders
placed for nearby delivery on some of the lesser

items, such asisome wire products and cold-finished bars.
jr-'.y,;
It said there was little char.ce of getting in more of the major
-

tonnage items^even though steelmaking operations last week were
up one-half-percentage point to 97% of the national ingot capacity.

business initia¬

and

metalworking publication said buyers were stepping up.-

efforts last week'to get

atmosphere of freedom

research

;

get steel deliveries by the end of June

reported by "Steel" magazine on Monday of this week.

was

chemical

of

:y■-

Capacity This Week

men

,

-

.

■

science
and of chemical trade and industry
would have been very different
history

'

<

However, Whereas sales ran 10% behind output in January-,
March they are trending 9% above output in April-June, indicating
the seriousness of the industry's inventory reduction program.

our own industry's
development how strong and su¬
perior the free Western system is.

for

:

'

an-analysis of

The

(June 4-9)

earlier this month

curtailment

similar

a

ventory adjustment.

country.

your

We chemical

with 55,000 and.

Chrysler Corp. plants in Detroit.. Holding steady,

two conceptions becomes cruelly
apparent in comparing the life in

tive. ;
industry of Russia, Po¬
"Z
:
newly-formed
German
Govern¬
land and Communist China during
Creative individuality has been
ment's
Atomic
Energy Commis¬
the past few years, especially in
sion. European cooperation in the responsible in the past for all the
organic chemistry, is due in large use of atomic
great discoveries and it is also the
energy within Eurapart of the creative effort and tom or UNO or OEEC would be source of their practical realiza¬

This is the first

.

technical experience of East Ger¬

4

page

the world.

on

particularly in countrymen living under the dic¬
the
field
of application.
Today, tatorship of the East have but one
we
produce many chemicals in desire—to be reunited with the
Germany under American licenses free West. The world still remem¬
and we have been pleased to see bers the deprivations and hard¬
that
American
companies,
like ships which the population of the
chemical manufacturers in other free zones of Berlin accepted in
countries, are again adopting some order to escape the police state
of our German processes. We look parked
right on their doorstep.
upon this give-and-take as a road In their valiant efforts to keep the
to lasting cooperation between the Russian wolf at arm's length, the
chemical
industries
of
our
two people of Berlin were helped de¬
countries.
cisively by the splendid airlift so
quickly and efficiently organized''

Soviet Zone.

from

systems

you,

plants in Central and Eastern
are now located within
Russian sphere of influence
European Atomic Energy
and so they are part of the Eastern
Cooperation
bloc. For over 10 years, the Rus¬
Another field
in
which the
sians have been able to exploit
closest possible cooperation is de¬
the industrial potential of Central
sirable is atomic energy.
I mqan,
and Eastern Germany and the ef¬
of course, its use for peaceful pur¬
ficiency and capacity of the 18
poses.
Besides my own business
million
Germans
living in the interests and
my activity in the
Germany

and progress, two

Continued
pros¬

dom and

Through this expansion,
all
investment capital and years!
America
has placed
itself in a
liquid funds. The dollars flowing
into
our
economy
through the dominant position.
Marshall Plan were of paramount
At one time, most revolutionary
value at this critical hour.
discoveries in chemical industry
The
plants in the East were originated in Germany. Today,
nearly as incapable of survival as your country has surpassed us by
ours after the war. The chemical
far. There is a great deal for us to
industry there had to adjust itself
too to the new conditions. The re¬

for

imposing themBoth hope to
achieve
the
common
objective
along
radically different roads:
one by the road of individual free¬
selves

Threat?

a

Systems

competition

have,succeeded in

lost

the world

Different

Two

37

Thursday, June 21, 1956

Steel companies

v.;y
•

,

change in the production rate in about a month; c

co-operating with consumers to balance

are

inventories as^far as

possible, the magazine declared, r;.:
;
Promise of higher prices in the second half, as well as possi- *
ble interruption in the flow of steel, is motivating steel users*
efforts to get -deliveries in. Trade talk has it that prices are due

tion into instruments of a better
desirable to us as long as
life for all of us.
t
'
private enterprise is given suffi¬
to go up in a range of $8 to $15 per ton, depending on the product;"
i
cient leeway. We wish to,, see the ■\ Now we are engaged in a strug¬
the
most
:;;
"Steel" said that in spite of -an anticipated softening of third „■
far-reaching conse¬ peaceful use of atomic
energy en¬ gle to hand down this heritage—;
quarter business", factories are expected to be holding over-all
quences to world economy through trusted
to private enterprise. We not only to our own children who
employment fairly even throughout the quarter.
*
5
the division
of
Germany. Ger¬ do not mind if it is under strict have grown up under it—but to
It pdinted^out that the economy looks for record employment
many's split-up promotes and aids national and
supra-national gov¬ the millions in Asia and, Africa
by the nation's labor force this summer. Addition of high school
unscrupulous competition from ernmental
supervision, - provided who are just now entering this
and college students in summer work is expected to raise the labor
the East.
such supervision is not tantamount stage of industrial development.
force to a new peak of 69,000,000 in August. Their earnings may
Since this trade drive from the
We
must
set
an
to state monopoly.
example for
help soften the inevitable third quarter cutback in the economy;
East is based essentially on polit¬
them to .follow—show them that
It may be that ipeacefuL use of
The'record employment, however, will result in a uptrend in
ical
considerations
rather
than
the
way
of individual freedom
atomic energy will lead us towards
unemploymeift--which is counter to the normal seasonal pattern;
economic ones, it is not unusual
with its attending responsibilities
a
better future, and international
The figure shqpld top three million for the first time since March,for the market to be upset by
is their best road to industrializa¬
cooperation in this field will be of
1955.
Vacations will cut in.
Some of the cutbacks will be in
political dumping deals, especially
tion and better life.
extreme
importance. , But genu¬
layoffs. But, the biggest part will come in shorter hours.
in the so-called underdeveloped
ine cooperation is also needed in
Forgive me if I have touched
Steel mills likely will cut back gradually in the third quarter
countries. It seems that shipments
all other economic fields if the upon subjects which
may
seem •' to about 85% of
capacity, reducing hours and employment along

firms and experts,
And here we touch upon one of

very

man

.

-

of this sort have also reached this

Since these transactions

country.
have

frequently been carried out
in transit through third countries,
it has happened occasionally that
West German firms hav§ been ac¬

West is to prevail
the

of

in the struggle
waged for the future

being

now

precedented
time.

And

us

our

and

think.

un¬

White

from

But, in

we

witnessing an
phenomenon in

are

us

distant

closer to

world.

All of

far

Springs.

sense,

a

our

Sulphur
they are

wrongly

of

indulging
C

*

in

are

Perhaps

my

note

should

like

to

this

take

tunity to ask that if

conceived
oppor¬

hear

you ever

dumping in which Ger¬
many is involved—please differ¬
entiate
carefully
between
the
Federal Republic of West Gerany

the

and

».many

Soviet-occupied

Even

though

we

overcoming

have succeeded

the

serious

more

difficulties

t

resulting from Germany's partition, a really success¬
ful solution will
only be possible
when Germany is reunited.

Well,
gloomy

after

this

picture,

I

s o m e w

am

h

sure

a

t

you

will understand why America
ap¬
pears to be a "land of milk and

honey"

to

Especially in the
Everything here is

me.

chemical field.
so

beautifully

ganized!.
material

planned

An
basis

is

mand. Riches in

potash,
and

and

or¬

inexhaustible
at

your

raw

com¬

phosphates, sulphur,

ores

ton,

it

made

clear to

each

of

in

West

that

us,

all essential national problems are
in reality world problems — that

There

way.

such
-nor

thing

in

some

longer exists any
"splendid isolation"

no.

as

there nations or groups
continue to live "outside"
world community.

staff

of

FIF

the

and

rope

tion

For
duction

couptry—has funda¬

mentally changed the image of the
world

and

and

The

our

social

work.

been

it

likes

LOS

W.

-

staff of

520

Calif.—Mark
joined
the

at^292,000 tons
as'&f

Avenue.

(Special to The Financial Chronicle)

OAKLAND, Calif.—Fred Maggiora has joined the staff of Frank
Knowlton &

day

invested

thq

in

expansion
seems

to

means

the

past

of

your

us

breathtaking:

10

years

production

Europeans
$15

billion




on

almost
in

10

they

mon

objective

have

agree among
road

not

a

—

been

themselves

towards

The irony is
search for

"peace,
able

to

The

-

r

according to the Edison Electric Institute;
rose

474,000,000

kwh.

previous week. It increased 1,438,000.000 kwh.
comparable 1955 Week and 2,575,000,000 kwh.

V-

.

■'

above
or

that

over

the like week

'■

-

,

economic

we

during

that

this

and

have

century.

the

of

14.4% above the
s

i

.

Y

Loading Rise 9.4% Above Preceding Holiday Week

Loadings of(re venue freight for the week ended June 9, 1956,

67,866

or 9.4%
above the preceding holiday week
American Railroads reports.

cars

the Association ,of

an

increase

week,

and

of
an

"5jl37

cars

(Special to The Financial Chronicle)

PALO
Conn
of

La

ALTO, Cal.—Mrs. Laura

has been added to the

staff

Montagne & Co., 71 Build¬

ing D, Stanford Shopping Center*

or

cars*

0.7% above the corresponding 1955

.^crease of 89,492

responding

cars, or

12.8% above the cor¬

in 1954.

U. S. Automotive
'

Automotive output

that precisely this
wars

The

annual capacity of 125,-

Made Fresh Gains the Past Week

week's^ Output

•-

With La Montagne & Co.

end.

road to peace has led

troubles

Co., Bank of America

on a com¬

this

mankind into the terrible

experienced

-

on

distributed by the electric light
industry for the week ended Saturday, June 16, 1956;

Building.

all

Jan. 1, 1955.

week ended June 9, 1956,

Car

a

to exploit
these raw materials
chemically—
enterprise, know-how and capital.
Moreover, the capital you have

have

95.0%. The operating rate is no$
based

estimated at, 11,425,000,000 kwh., a further increase above the-

,in 1954.

Joins Knowlton Staff

welfare and progress"—but to this

common

or

are

power

increased

one

the

or

prefer.

with

was

*

the ?

been' added !to

Grand

other,
And, you

material
you

compared

week ago.

and

Management. Corpo¬
formerly with

Shearson, Hammill & Co.,

South

on

raw

a

A year ago the actual weekly production

2,39tons.

828,310 tons

was;

has

assume

one

as

indtts^'s ingot production rate for the weeks in 1956'

percentage figures for 1955

ANGELES, Cal.—Brenton

Lowe

gas. You can base your production

whichever

steel for castings

of 95.7%

1956, equivalent to

..

unit.

We may, I suppose,
that all human beings have

the

comparable becatise capacity is higher than capacity in 1955.

(Special to The Financial Chronicle).

it

into

turned

gross

that

Loadings fop the week ended June 9, 1956, totaled 787,075

world—whether

not—has

single

of

concept

a

on ari$ial capacity of 128,363,090 tons as of Jan. 1; 1956,
the-iifc&week a month ago the rate was 97.3% and pro¬

placed

was

has;

Shearson, HammillAdds

brought to perfec-*

was

in your

life

The
is based

Cantor, Fitzgerald & Co., Inc., and
J. A. Hogle & Co.
/

machine which first started in Eu¬

announced

93.4% of capacity, and 2;299,000 tons (revised)
.

Electric Output

ration.

The technical revolution—or, so
tq speak, man's alliance with the'

;

The amount of electric energy

can

He

Institute

Steel

and

ingot and

2,355.00(1

.

we

are

who

or

ANGELES,

Iron

capacity for the week beginning June 18,

(Special to The Financial Chronicle)

Kosterman

American

capacity for thd entire industry will be at the average

Joins FIF
LOS

-yZ^Z 'v; -:

decrease of 17 cents from the previous week.

The

of
>

order

W.

v:;.-Yc:

operating rate of steel companies having 96.1% of the steelmaking

alive

happen

can

how

trying to solve these problems
to keep free enterprise
and
effective—just as you
in America are doing so success¬
/V','
-..VV- *- ■
fully.
in

anywhere in the world that does
not touch everyone of us

Germany—and

a

«

are

The political and technical evo¬
lution of the past few years has

coal, mineral salt,

especially in oil and natural

single

a

pattern for the entire globe.

nothing of importance

zone.

in

only in terms of

"Z

*

Steel prices currently are holding steady. "Steel's" composite
finished products is unchanged at $128.98 a net ton. Its price

composite on: steelmaking grades of scrap dropped to $46
.

am

serious disturbances

of

on

of

with

I

I

:

urgency is all the greater because
I have just come from the battle¬

experiencing it
Germany split in two is
both joy and apprehension. ground.
the most glaring
symptom Of the
referring to the phenomenon
political conflict of our time. of mankind-groping its
way to¬
Russian Political Dumping * v
wards unity and integration.
I hope I
have not taken too
I am afraid that in future we
much of your time—but I thought
We
are
becoming more and
can expect quite a number of such
it necessary to present some of the
more conscious that future world
unpleasant surprises. Some may
history and development can be problems of our chemical industry
even result in
cused

such practices.

we

the way.

survival than

Output Receded Somewhat in the

«

Latest Week
for the latest week ended June

15, 1956,

according to "Ward's Automotive Reports," registered a mild con¬
traction in cars but a slightly higher level in the number of trucks
produced.
Last week

the industry

assembled an estimated 102,544 cars,

compared with 105,074 (revised) in the previous week.
week's

production total of

cars

and trucks

amounted

The past

to 124,579

Volume 183

Number 5544

...

The Commercial and Financial
Chronicle

(2991)

units,

decrease of 1,975 units below the preceding week's
output,

a

states "Ward's."
week

by 2,530

555 vehicles.

In

25,694 trucks

.£■

.

Last week's

output declined below that of the previous
cars.^while truck'output rose the past week by :
the corresponding week last
year 139,743 cars and ;
car

assembled.

were

25,694

a

year

ago.

/

:

"

and

;

.

gent

similar period last
year/ Shoppers

cars

!

Although sales
what, they

,

,

-

below; those'~<d

were

V-: /+

.

/

ago.' "I

» jrear

Commercial and

on

industrial failures

increased

to

286

.

the

from 37 of Last week and the
39 in 1955.

failing businesses had liabilities

in

excess

Twenty-five of

pared with 16 in the preceding week.
i
The increase during the week centered in manufacturing,
where failures increased up to 55 from ,45, in
wholesaling, up to
35 from 21, and in construction,
up to 41 from 30. However, the

;

yearly rise occurred in wholesaling where

fcasualties

twice the 1955 total.
/_
Five of the nine major geographic regions accounted for the
-week's rise, with the Middle Atlantic States
reporting an increase
to 92 jfrom 80, the Pacific States to 78 from 58 and
New England
/.to 15 from 10/ Slight dips occurred in the four other
areas, include
ing the East North Central States where the toll was down to
*

40 from

tain

V

were

All except two

45.

The

wholesale

food

of

a

High

Department
the

June

was

trend

of

Movements of

from 288.74

week earlier and

a

responding date
Grain

with

a

year

markets

wheat,

12.

was

1956,

..

...

rye

index

of

basis

the

taken

as

week

ended

whether

the

served to curtail sales
by

trains

would

last

6%

In

year.

the

preceding week, June 2,

J

ecutive

a

bank

*

an

was

Enrollment limited

bushels, about 18,000 000 bushels lower than the Government esti¬
mate

of

a

The

•

month

Official

ago.

June

r

-

1

on the Chicago Board of Trade
averaged 51,300,000 bushels
day, compared with 63,200,000 the previous, week and 35,-

SPRING

further strength

showed
meet

as

The

domestic

refiners ordered

expanding Summer demand.

raw

sugar

With the

approa'ch

of

warmer

slightly lower for the
Hog receipts in western markets continued well above a

year ago.

;

comparatively light trading, spot cotton prices fluctuated
very narrow range throughout the week.
were

with

'

of

the

New

indefinite, reflecting

a

general

lack

of

new

in¬

Trading in spot markets was restricted by a soarcity of offer¬
ings of qualities in best demand. Total purchases for the week
reported at 47,000 bales, against 48,700 the previous week
and-i60,C00 in the corresoonding week a year ago. Announcement

that the CCC would

program

a

these

into

on

June

12

open bids'under the surinstead of June 19, as previ¬

ously stated, had little effect marketwise. CCC loan
repayments
reported in the week ended June 1 totaled 32,500
bales, against




Institute

did

will

be

*

shortly.

bank

must

be

our banks.
"Today when we

revolutionary
whole

15

as

,

I have

.

a

to

analysis,
meet

the

a

the

these

the

problem.

however,

and

of

the

held

as

re-

con-

Very

result

a

terdav

to all member banks

regardless of

location or kind of business
engaged in for I believe it offers
size,

a

solution to

one

of management's

ized

these

enterprise and
role

of

of

join

of

to

are

it behooves

this

of

Administration

/vaininisirduon

premises

,

/v

u

establish
for

for

only

author-

were

^

The

Advanced

The

Study
Executive Problems."

yes-

n

,

Bankers

Manage-

of

Critical

Mr. Ploch pointed out that,
the
Institute will be sponsored by the

Association's Educational Founda-

M?itwP-re,SSin^ P,robleTmS- A.1 th! pices anfd,HWil! bieiTder Arts aUS;
ti0n of the Institute of iht and
mentioned
tAh,at,°/r Ex®eutl™ Vice-President, Sciences at Columbia University
A1
been

his

staff

have

studying the problem of exdevelopment
with
the

ecutive

and

counsel

of

leading

bank and executive
management
specialists. For the better part of
the year they have been
studying

what

is

being

done

by

and

what

is

dustries

other

in-

available

parade

have

we

as

in the future

serve

as

in the past.

"The addition of VWiU1iJUia UniColumbia

versity

the

to

association's

i

believe,

noteworthy

a

in

collaboration

with

the firm

of

Richardson,
Bellows,
Henry
&
Company,management consultants
specializing in problems of ,personnel and human relations.

"The

Institute will

be

a

accom-

With Four

Universities
«Th_

aCcnriatinn

T-

^

i«

nnw

oHor-ation
>

i

i

with

j-

Syracuse University at Syra-

aca>

New

York University, New
and> more recentlyi Colum_
Through these educational
facimies intensified, specially decuse

Yorl^

_ipnPf1

ing

pvrlimivp

witTvariSS

b(fsiness

nrnftrams

conducted.

are

It

tinn'o

one

hrnaH

priuratinnal

network

ig

an

ug

in banking today and for those

absolute

necessity fr all of

who will in the future make bankweek-

,

,

ing

career.'

a
.

long'brainstorming conference. It
will

be

designed

to

unleash

the

A.

L.

1 lima

Upens

skills, to strengthen management

business

conception, and to teach the tech-

North Van Ness Boulevard.

several

occasions

came

our

is,

I
of the most ambitious
programs of its kind. The associa-

believe,

development. The Asso-

on

HpiI-

of

aspects

to develop executive abilities and

ciation

of

...

•

the country's leading universities,
namely, Cornell University at Ith-

of

executive

man-

four

done

field

™n-

association is now con

ducting direct programs of

appmp^t
^

full creative power of executives,

the

ever

plishment

academically and what has been
by banking in

of

well

.auuujuu

meeting

a

Mid-Winter Meeting I

and

our

of pri¬

in particular

banking,

to

us

great

me

that at

officers

vour

y

to

Institute

™en'

gives

say

Council

on

.

special announcement

to make. An announcement which
I believe is of great

it

pleasure to

on

.

in

ities for management education is,

.

<<T

thor¬

witnessing

are

changes

concept of the role

the

was

subjected

not

with

found

an official of the
Franklin National Rank stafpri on
rranKiin National

>

a com¬

as

and Bill Green and others
recently,

Bankers

Bank, stated
follows:

this

location to be announced

a

enlarging realm of academic facil-

cerned

con-

outSoing President
State

The

held

quirements outlined by A1 Muench

of

York

divided

be

ity in

officer

thought

critical

solutions

will

of 15 each.

groups

progress if we and our institutions

it

When

alternate.

tives as it is possible to be. It is
also imperative that management's
succession becomes a major activ¬

cooperate in

solution.

ex¬

member

executives, and

executives
two

FalLat

vate

severest

the

principal

limited to 30 such

all

what

'1

oughly conversant with manager¬
ial responsibilities and preroga¬

chief executive

with

up

Association, and

were

plu^disposal

management

firm

advice

centives and of speculative interest.

around mid-week

the

Muench,

a

Trends

As

significance

earlier and compared with 237,912 bags held at this time last
year.
Lard-developed a somewhat firmer undertone following recent
declines. Livestock prices generally finished

In

—

l

June

weather, cocoa prices were fairly
well maintained in relatively light
trading. Warehouse stocks of
cocoa showed a slight
decline to 369,943 bags from 372,275 a week

within

J.

of

that the executive office of

development.

University will

his

Richardson, persistent and diligent effort, a
Bellows, Henry & Company, Wil- solution of the
problem has been Management Education

largely quantities to

be maintained.

week.

r

suiting

markets

The green coffee market continued strong, reflecting increasing
confidence that the Brazilian policy to stabilize the market will

N.

development school to
v? ^"der the auspices of
Columbia University, in collaboration

replacements.

LAKE,

.

J

'

expansion in bookings of Spring wheat flour occurred
early in the week as mills furnished protection against price ad¬
vances.
Domestic demand for other types of flour remained slow
with only scattered small lots booked by bakers and jobbers in

early

Columbia

day beCouncil of Adminisa"th°nzing an advanced

a year ago.

of

member bank's

result of action taken the
fore by the

Some

need

its kind to aid executive

officer

or

mercial

this unique
program.

futures

000,000

to

principal alternate.

or

forecast, issued on June 11, placed the
Winter wheat yield at 670,375,000 bushels and the total wheat
pro¬
duction at 922,672,000 bushels.
This, if achieved, would be 2%
below last year's 938,159,000 bushels and 20% less than the 10-year
average of 1,146,547,000.
Corn prices edged higher with light
receipts a supporting factor.
Purchases of grain: and
soybean
per

banking school of

J

......

Enrollment in the Institute will be

*

First

group

problem-solving,

mind, this may well be
important educational
activity the association has ever
embarked upon. It is fundamental

Sponsors New/Executive School

The uptrend was sparked by a private report, issued early In
the week, which estimated Winter wheat production at 663,500,000

arid

"To my
the
most

the

New York State Bankers Association

^

course

"Participation in the week-long

recorded._ For the period Jan. 1, 1956 to
June 9, 1956 the index
recorded a rise of 3% above
that of the
corresponding period in 1955.

..

Instead,

session is limited to the chief

ended

1956,

minimum.

a

technique that has proven highly
successful. in executive developiment. programs being carried on
by some of our major business

be

of

Ameri-

through the technique of

first

for the weekly period
increase of 11% above those

believe

in

approach to the

discussions

about 5%.

City

an

to

corporations.

was recorded.. For the four weeks ending June 9,

of 5%

gain

a

York

1956, registered

we

kind

a

Thursday, coupled

on

not

or

held

the whole

York City the past week ac¬
only. J % ahead of the 1955 level.

.

of its

its

are

New

rose

Its Kind

approach to the executive
development
problem.
Lectures

by

cor¬

displayed considerable strength,
registering sizable advances for the

;

r

country-wide

of

.banking, is somewhat unusual

can

•

slightly

compared with 273.45 on the

...

in

to

as

New

9,

period

J"^ease

down

volume

the

like

Continued Narrow

This

a

School

Institute, which

is the first

According to the Federal Reserve
Board's-index, department
sales in

food

generally

and

corn

period.

ago.

trade

uncertainty
operating on Friday,

daily wholesale commodity price index, compiled by Dun
& Bradstreet, Inc., continued to move in a narrow range the past
June

on

Board's

\was report®d that the subway tie-up

with

Preceding Weeks

on

First
"The

■

1, 1956 to June 9, 1956,
registered above that of 1955.

was

Retail

The

closed at 288.17

sales

Reserve

cording to. trade observers*

/

June

and

was

store

Wholesale Commodity Price Index

cessors,

For the four weeks ended
June 9, 1956 an increase
reported. For the period Jan.

gain of 3%

prices at the wholesale level.

week

Federal

to strengthen
individual
abilities

ways

increasing effectiveness.
assist you, in the develop¬
ment of skilled and qualified suc¬

food prod-

some

■

study

utilize

"To

1956, increased 9% above those of the like
period last
In the preceding
week, June 2, 1956, an increase of 7 %

of 6%

•«.

general

stores

offset

were

-

.

with

reported.

.

the

"To
and

9,

year.

The index represents the sum total of the price per
pound of 31
raw foodstuffs and meats in general use.
It is not a cost-of-living

show

furniture

and

'

from

,'

to

apparel

•

,

is

in

/bank's
* " - j

your

thinking to problem-solving"
decision-making.

and

in

nets.

wholesale cost the past week were wheat, corn,
lard, sugar and coffee. Lower were flour, barley, raisins,
prunes, steers, hogs and lambs.

is

'

tive

year ago.

decreased purchasing of
textiles, appliances and

price index, compiled

function

for

"

"To apply " the process of crea¬

frozen foods the past week.

increases

horizons

i"To .stimulate .and promote more

:

air conditioners last Week,
a

f

individual

solidplanning

year ago.

Volume

Higher in

chief

and

of the purposes

future.'

Buying activity was sustained at a high level and
the total
dollar volume of wholesale
orders remained somewhat above that

Tye, oats,

Its

for

,

prospectus,
are listed as:

"To review the fundamentals of

and lamb was somewhat
reduced.

by Dun & Brad;
Inc., turned downward last week from the year's high
/ street,
point touched the. week before. The June 12 figure fell to $6.14,
from $6.18 last week. It compared with $6.51 at this time a year
ago, a drop of 5.7%.

index.

increased call

an

through

executive skills and effectiveness.

The buying of cold
cuts, .beef and poultry expanded
substantially, but volume in pork

year.

Wholesale Food Prfce Index Dipped From Year's
-Point the Past Week

vv

canned fish

regions, the New England and Moun¬

States, reported higher failures than last

was

volume was moderately ahead of that of

•

Institute's

widen

They

executive's

an

goals

clarify personal as well as
company gpals and. objectives,
V.4"

An upsurge* in the
buying of portable radios occurred, with
purchases of.television sets sustained at the level of the
previous
week. However, a slight- decline in interest in
major -appliances,
lamps and lighting fixtures was reported.
While sales in outdoor
metal furniture
expanded considerably, volume in upholstered
chairs, bedding, arid occasional tables declined
slightly.
Housewives stepped up their purchases of canned
citrus juices,

.

toll
among retailers dipped to 134 from 137 and among commercial
services to 21 from 24. More concerns failed than a
year ago in
all lines; the sharpest

-

There

.

and

of $100,000 as com¬

par¬

and to

*

to 43

the

"To

Wednesday of last

in" the

~

"In

some

ago,"
according to e$timates by Dun & Bradstreet, Inc. Regional estiWeek ended June. 14 irom 257 in'the
preceding week, tiun : & ^3 ■uzjfhates^yarjedi from the comparable 4955
the following
Bradstreet, Inc., reports. At the highest level in 13 weeks, the toll
f percentages:- New England +.7 to -f 11; East +8 to +"12; South
exceeded Considerably the 214 last
+3 to +7; Middle West and Southwest
year and the 2013n the similar
+4 to +8; Northwest -f-5:
week of 1954. Failures were 15% more
■'■v to • +9 arid Pacific. Coast —-1 to
numerous than in the
+3%.
comparable week of pre-war 1939 when 249 occurred*
; -v^
;: Consumer, respoii^e to extensive Father's Day sales
promotion^
-.Liabilities- of $5,000 or- more were" involved in 243 of- the ?
boosted, the dollar volume in men's wearing apparel and acces¬
week's failures as against 220 a week
sories.. Department stores reported increased sales in women's
ago and 175 last year. The
toll among small failures, those with liabilities
wear of all kinds.
•
'
—*
under $5,000, rose
1'

with

management,

job is to reach
other'people.

ahd tised automobiles expanded some-

.new

deal

and how to put them across.

The total dollar volume of retail
trade in the period ended
week was 5 to 9% higher; than a year

-

Business Failures, Continued Higher .Trend

in

business

will learn too that

and outdoor

.tables, and,chairs.

.

will

ticipants will learn how to get
ideas, how to keep them flowing

considerably increased

their purchases of Summer apparel, air conditioners

1

2,491;

2,412 trucks, and.:forithe4.;ccmparabie 195& week, /10,618: ears/v
2,420 trucks.-r*
«* ► v
'

-••and

of the

Hy'v-.k--''C-'V:

Canadian output l^t week was
placed nt:10,404. cars \and
trucks. In the previous week Dominion
plants built 10,289

Institute

execu¬

successful fundamentals of intelli¬

-

Year Ago

a

r
.
Retailers reported a mhderate rise in consumer spending the
past week, and the total dollar volume
noticeably exceeded that'

;
,

previous

and-

Exceeded Like Period

niques of highly successful
tive performance.
"The

Trade-Volume Rose Moderately the Past Week and

.

,

V-

Last week the
agency reported there were 22,035 trucks made
lin the United States. This
compared with 21,480 in the
week

50,100 in the preceding week. Weather and
crop news remained
satisfactory and cultivation and chopping made good progress.

39

FRESNO,
Tuma

Calif.

is engaging
from

—

in

A.

Laurence

a

securities

offices

at

4612

The Commercial and

Financial Chronicle

...

Thursday, June 21, 1956

(2992)

40

if INDICATES ADDITIONS
SINCE PREVIOUS ISSUE

Securities Now in Registration
Grand Junction, Colo.
Feb 23 (letter of notification) 3,000,000 shares of com¬
mon
stock ([par one cent). Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium
Center, Grand Junction, Colo. Underwriter—Ralph M.
Oavis & Co., Grand Junction, Colo.
Abundant Uranium, Inc.,

Supply Mfg. Co., Inc. ^
June 4 (letter of notification) 129,879 shares of common
stock (par $1) to be offered to stockholders of record
June 20, 1956, on a basis of one new share for V/z shares
held; rights to expire on July 16, 1956. Price — $2 per
share.
Proceeds—For relocating machinery and equip¬
ment in plant, additional equipment and working capital.
^ Aero

UnderwritersMargolis and Leo A. Strauss, directors of the

Henry M.

Main St., Corry, Pa.

West

Office—611

150,000 shares of capital

(letter of notification)

10 cents). Price—$2 per share. Proceeds—
acquisition of oil and gas leasehold interests
and working capital. Office — 403 Wilson Bldg., 2601
Main St., Houston, Texas.
Underwriter — Muir Invest¬
ment Corp., San Antonio, Texas.; D. N. Silverman & Co.,
stock

(par

the

For

■New

Reed

Corp., San Antonio,

La.; Texas National

Orleans,.

and

Charles B. White & Co., Houston, Texas.;

Texas.;

$50,000 of bank loans and for working capital.
Birmingham. Ala. Underwriter—Cruttenden &

Sloan

and

Texas.

Co., Dallas,

'Alunite Corp. of Utah

160,000 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
manufacture and sale of commercial fertilizer.
Office—
373 West 3rd North, Salt Lake City, Utah. Underwriter
—Cayias, Larson, Glaser, Emery, Inc., Salt Lake City,
May 17 (letter of notification)

Apple Valley Air Transport,

shares of class A common stock (par
$10 per share. Proceeds — Together with
other funds, to purchase 1,000,000 shares of common
istock (par $1) of American Frontier Life Insurance Co.
Price

—

Underwriter—None.
American

Stables,

Horse Racing

Inc.

(letter of notification) 3,000,000 shares of com¬
stock.
Price—At par (10 cents per share).
Pro¬
For

—

Beverly Hills, Calif.
American Insurors'

'

Price

Development Co.

stock.(par $1).
Proceeds —To expand service

filed 400,000 shares of common

10
—

$2.50 per share.
0ffice

business.

—

Birmingham,

Underwriter

Ala.

—

American

Machine

&

(6/27)

Foundry Co.

filed $10,897,000 of subordinated

debentures due
July 1, 1981, to be offered for subscription by common
stockholders of record June 2?7, 1956, at the rate of $100

June

of

1

debentures

.rights to expire
ceeds—To

each

for

July 11.

on

bank

reduce

shares

25

of

Price—At

loans

and

for

then

held;

(flat).

Pro¬

stock
par

capital.

working

Underwriter—Union Securities Corp., New York.

will

ing—Stockholders

vote

on

June

26

on

Meet¬

approving

financing.

proposed

amount of debentures

principal

$10

of

share held, while the common shares
are
to be offered for subscription by common stock¬
holders at the rate of one share for each 10 shares held.
for each preferred

Price —To

Proceeds

supplied by amendment.

be

—

To

Underwriter—None.

bank loans.

repay

Phoenix,

Co.,

the insurance firm.

lalesman of

debentures due June

subordinated

Price—100% of principal

15. 1971.

Proceeds—Together with $7,750,000 to be bor¬

amount.

construction or
acquisition of new plants and equipment and for work¬
ing capital. Office—West Haven, Conn. Underwriter—f
insurance

from

rowed

companies,

Associated

for

,

June 5

Turpentine Co., Inc.

in

5%%

units of

shares of

10

stock

common

June

filed

20

38.280 shares

for

offered

to

be

record

of

common

subscription by

July 10,

1956

stock

(par $10)

common

the basis of one

on

To reduce bank loans and for

construction.

new

Under¬

writers—The First Boston
&

Co.

and

Corp., New York; and Courts
Robinson-Humphrey Co., Inc., both of

The

and

$100

Price—$110 per unit. Proceeds—For in¬
plant in Winfield, La. Office—219 Carondelet St., New Orleans, La.
Underwriters — Scharff &
Jones, Inc., and Nusloch, Baudean & Smith, Inc., both
of New Orleans, La.

stalling

a new

* American Telephone & Telegraph Co. (7/10)
June
18 filed $250,000,000 of 34-year debentures due
July 1, 1990. Proceeds—For advances to subsidiary and
associated

companies; for investments; for extensions,

additions and

eral

improvements to properties; and for

corporate

mined

by

purposes.

Underwriter—To

be

gen¬

deter¬

competitive

bidding. Probable bidders: The
Halsey, Stuart & Co. Inc. (jointlv);
Morgan Stanley & Co. Bids—Expected to be received

First Boston Corp. and

on

if Atlanta Gas Light Co. (7/17)
20 filed $5,000,000 of first mortgage
Proceeds—To

loans

bank

reduce

Underwriter—To

be

and

determined

for

by

due
new

com¬

May 28 filed

Electric

Corp.
35,000 shares of 6V-cent cumulative

Expected to be received
17

at 90

vertible preferred stock
common

(par $8.50) and 20,500 shares of
stock (par $1) to be offered by the company and

Halsey,

to 11 a.m.
St., New York 4, N. Y.

Broad

Stuart

&

Atlantic Oil Corp.,

up

(EDT)

on

July

Tulsa, Okla.

April 30 filed 2,000,000 shares of common stock (par $1).

Price—$1.50
and

share.

per

Proceeds—For working capital
Underwriter — To be

general corporate purposes.

named

by amendment.

Atlas
June

11

Colo.

amount.

Birtcher

Corp.

May 31 (letter of notification) $300,000 of 6% convertible
subordinated debentures, due 1971.
Price — At face
amount.
Proceeds — To pay income taxes, for branch
office, to retire short-term loans and toOffice — 4371 Valley Blvd., Los

warehouse and

inventories.

increase

Los

Underwriter—Quincy Cass Associates,

Angeles, Calif.

if Blue Chip Stamp Co.
(letter of notification) 150 shares of class A stock;
1,850 shares of class B stock. Price—Both at par
($100 per share).
Proceeds—For working capital and'

June 7

and

general

corporate

Office — 3410 West Third'
Underwriter—None.

purposes.

if Blue Ridge Fruit Exchange, Inc.
(letter of notification) 14,027 shares of common'

June 4

(no par). Price—$11.50 per share.. Proceeds—Forexpansion. Office — Cleveland Ave., Waynesboro, Pa.
stock

Underwriter—None.

(Province of)

British Columbia
filed

7

$50

due June

15, 1968. Price—100%
retire

Proceeds—To

indebtedness

of principal
of

the

com¬

money

Investment Co.,

per

Las Vegas, Nev.

shares of class B common voting stock,

to be offered for public sale
share and 8,800 shares are to be offered in

shares

Eastern

series B, due 1981 of Pacific

Ry. Co.; and $10,000,000 of

debentures, series B, due 1976 of British

Burns Bros.

& Denton, Inc.

Dry Ginger Ale, Inc.

(6/27)

$12,000,000 20-year sinking fund deben¬
tures due June 1, 1956. Price—To be supplied by amend¬
ment.
Proceeds—To prepay $4,000,000 of 27/g% promis¬
June

filed

7

sory notes and $1,836,000 of 3%% promissory notes; for
machinery and equipment and other general corporate

purposes.
Underwriters —
Hornblower & Weeks, both

if Canadian

To

15

be

ment.

Union Securities Corp. and
of New York.

International

Growth

Fund Ltd.

filed

stock. Price—
Proceeds—For invest¬

shares of common

625,000

supplied by amendment.
Investment Advisers—Van

Strum & Towne, Inc.,

-York, and Mutual Funds Statistical Surveys Ltd.,Montreal, Canada. Underwriter—Hayden, Stone & Co.,
New

New York.

Capital Airlines, Inc. (6/26-27)
1
filed $12,000,000 of convertible subordinated
debentures due July 1, 1976. Price—To be supplied by
amendment. Proceeds—For general corporate purposes.
Underwriter—Lehman Brothers, New York.

June

Cary Chemicals, Inc., Milltown, N. J. (6/27)
filed $2,300,000 of 6% first lien bonds due 1976

June 5

of common stock (par 10 cents) to be
shares of stock.

Underwriters—

Utah, and M. D.
Close Mortgage & Loan Co. and Jack Heminawav Invest¬
Co., of Las Vegas, Nev.

Automation

Statement effective May 17.

Industries

Corp., Washington, D. C.
May 11 filed 179,009 shares of common stock (par $1).
Price—$5.25
other

per

share.

corporate

Proceeds—$1,polyvinyl chloride
resin plant; $138,000 to interest on bonds during the
first year; $230,748 for liquidation of mortgage on pres¬
ent plant; $33,000 for retirement of outstanding preferred
stock; $10,352 for purchase of common stock; and about
$447,400 for working capital.
Underwriters—Lee Higginson Corp. and P. W. Brooks & Co., Inc., both of New

Proceeds—For working

purposes.

Underwriter

—

capital
None.

Harry Kahn, Jr., of Washington, D. C., is President and
Treasurer.

be

supplied

by

amendment.

150,000 to be applied to cost of new

York.

Chain Belt Co.

are

bank loans, and for capital and surplus.
Rex Laub and Max Laub, of Tremcnton,

and

y

sinking fund
Columbia Toll
Highways and Bridges Authority. Proceeds—To reduce
bank loans and for capital expenditures. Underwriters—
Morgan Stanley & Co.; Harris & Partners Limited, Inc.;
Great

Price—To

exchange for preferred stock. Proceeds—For payment of

ment

*

aggregate

an

offered in units of $500 of bonds and 50

Corp., Philadelphia, Pa.
$600,000 of 6% convertible subordinated

borrowed for working
capital. Underwriter—Name to be supplied by amend¬
ment. George A. Searight, New York, underwrote stock
offering in December, 1954.

at

(6/27)

of $40,000,000 debentures,
sinking fund debentures, series K, due1986 of British Columbia Power Commission; $10,000,000

June

and 230,000 shares

to its affiliates for

Atlas

Underwriter—Birken-.

Credit

debentures

pany

Colo.

& Co., Denver, Colo.

mayer

filed

of which 12,000
con¬

bidders:

Probable

bidding.

Inc.; Shields & Co.; The First Boston Corp.; Dean
(jointly). Bids—

Witter & Co. and Lazard Freres & Co.

•

July 10.
Anderson

Denver Club Bldg., Denver,

June

bonds

June

Co.

Boulder,.

Colo.

(7/10-13)

Jan. 9 filed 20,800
*

Birnaye Oil & Uranium Co., Denver,

Atlanta, Ga.

1981.

J
of com¬

April 6 (letter of notification) 1,000,000 shares of classA common stock (par five cents). Price — 10 cents per,
share. Proceeds — For mining expenses. Office — 762

Canada

stockholders
new share
for each 10 shares held; rights to expire on July 31,
1956. Priced—To be .supplied by amendment.
Proceeds—

debenture.

of

Underwriter—Lamey & Co., Boulder,

C010.

and

petitive

subordinated debentures due May 15,
1976 and 20,000 shares of common stock (no par) to be

offered

Office—1424 Pearl Street,

mineral properties.-

(7/11)

if Atlanta Gas Light Co.

■

stock (par one cent). Price—Three cents per sharesProceeds—To be used for exploratory work on mining

of sinking fund debentures,

construction.

(letter of notification) $200,000 principal amount,

20V2-year

Big Horn Mountain Gold & Uranium Co.
(letter of notification) 9,300,000 shares

April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds. Price -— Of
stock. $50 per share; and of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.

'

American Tar &

William

viz: $20,000,000 of

Inc., Seattle, Wash.

Grocers,

^

capital.

St., Los Angeles, Calif.

Rubber Co. (6/27)
$9,250,000 of convertible

filed

31

Finance

,

Proceeds—For capital expenditures and working
Office — Baltimore, Md.., Underwriter — None.,
H. Burton is President of company.v :

par.

Angeles 32, Calif.

Ariz.
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital.
Under¬
writer—None, sales to be directly by the company or by
Public

Arizona

of

Odess, Martin & Herzberg, Inc., Birmingham, Ala.
*

rate

Storage, Inc.

Beta Frozen Food

May 14 filed 15,000 shares 01 preferred stock (par $50).
and $100,000 convertible debenture
bonds. Price —At,

Underwriter—None.

organizing and operating a racing stable.

Office—Virginia and Truckee Bldg., Carson City, Nev.
Underwriter—Columbia Securities Co., Inc. of California,

Feb.

the

at

ers

Reynolds & Co., Inc., New York.

'May 11

and

1, 1964)

(convertible until July

1986

1,

63,614 shares of common stock (par $1). The debentures
are to be offered for subscription by preferred stockhold¬

Armstrong

Feb. 15 filed 175,000

ceeds

Calif. Under¬

Lakewood 8, Calif.

if Arden Farms Co., Los Angeles, Calif.
35 filed $4,099,300 of 5% subordinated debentures

May

Memphis, Tenn.

American Frontier Corp.,

mon

Inc.

16405% S. New Hampshire Ave., Gardena,

July

REVISED

Feb. 23

(letter of notification) 1,500 shares of common
stock
(no par).
Price—$20 per snare. Proceeds—For
establishment and operation
of an airport.
Office—
writer—James E. Thurston,

ITEMS

mon

12

June

Utah.

$1).

Office—
Co., Chi¬

Offering—Expected today (June 21).

111.

cago,

due

Industries Corp.

Oil &

it Allied
14

Price—To, be supplied by amendment (it is anticipated
that the offering price will be $10 per snare on the pre¬
ferred and $6.75 on the common).
Proceeds—To repay

June

company.

June

46,440 shares of class B common stock (par $1) to be
ottered for the account of certain selling stockholders.

•

filed 76,543 shares of common stock

May 18

(par $10),

being offered for subscription by common stockholders
of
record
June 8,
1956, on the basis of one new
share for each eight shares held; rights to expire on
June

25.

Price—$58

ner

share.

Proceeds—For working

capital and other corporate purooses.
Morgan Stanley & Co., New York, and
&

Co.,

Underwriters —
Robert W. Baird

Inc., Milwaukee, Wis.

Country Club, Inc.
of common stock, of which it is;
to offer for sale at this time
only 2,500 shares. Price—At par ($300 per share). Pro¬
ceeds
To construct and operate a recreation resort.
Chesapeake

Shores

May 29 filed 5,000 shares
the company's intention

—

Bennett-Ireland, Inc.
8 (letter of notification)

June

$285,000 of

20-year 6%

convertible debentures due

Boston

New York.

Pittsburgh

Chicago

July 1, 1976, of which $10,000 principal amount are to be issued in exchange for
a like amount of 6%
debentures due 1973. Price—100%
and

Philadelphia
/

...

-

San Francisco

Private IVircs




to

all offices

Cleveland

accrued

interest.

Proceeds

For working capital.
Office—Norwich, N. Y.
Underwriters—Mohawk Valley Investing Co., Inc., Utica,
N. - Y.y and Security & Bond •'Co.; * Lexiftgfon^Ky*. -•

Business—Fireplace

units,

etc.

—

Office—Upper Marlboro, Md.
C.

I. T.

Underwriter—None.

Financial Corp.

May 17 filed $75,000,000 of debentures due June 1, 1971.
be supplied by amendment.
Proceeds—Pri¬

Price—To

marily for furnishing

working funds to company's sub-,

Underwriters—Dillon, Read & Co. Inc., Kuhn,
Loeb & Co. and Lehman Brothers, all of New York.
Offering—Temporarily postponed.
'*

sidiaries.

Number 5544

Volume 183

June

of

shares

of

amount.

Securities Corp., 335

of debentures is convertible into 18
common stock.)
Price—At 100% of principal
Proceeds—For working capital, construction,
$100

purchase of Dover plant, etc. Office—90 Broad St.,

Commonwealth, Inc., Portland, Ore.
March 23

New

York, N. Y. Underwriter—None.

<

Inc.
500,000 shares of common stock (par 10
-tents). Price—$1 per share. Proceeds—For swimming :
pool and related activities, bowling alley, site preparation
including parking, and land cost ($95,000). Underwriters .
—Arthur L. Weir & Co., Colorado Springs, Colo.; and
filed

5

Copley &

Co.

stock being offered for subscription
by stockholders of record April 16, 1956 on a pro rata
basis; rights to expire on July 2, 1956. Price—At par ($50
per share).
Proceeds — For working capital. Office—
Equitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore.
Underwriter—None.

■

of record June 4

stock (par $1)
to be offered for subscription by stockholders only; Price
—A maximum of $4.50 per share.
Proceeds—To make
additional
investments, including stock of Columbia

March 29 filed 100,000 shares of common

Life

Co.

Insurance

Office

Houston,

—

Tex. *

Underwriter—None.

10 shares
per

(par $25)
stockholders

Price—$5

stock (par $1).

share. Proceeds—For trad¬

per

Office

ing in commodity future contracts.

Underwriter

York 11, N. Y.

20th St., New

436 West

—

Arthur N.

—

share for each

new

June

100,000 shares are for account of the

200,000 shares for account of certain
Price—To be supplied by amend¬
working capital and to finance

and

inventories

receivable.

accounts

and

Underwriter

Van

—

debentures

1976 and 26,000 shares of class A common

1,

(par $10). Price—Of debentures, 100% of principal

and of stock, $12 per share. Proceeds—For
of bank loans and other obligations totaling

amount;
payment

$184,000, and for the purchase of securities of company's
subsidiaries. Underwriters — The Milwaukee Co., Mil¬

Wis.; Harley, Haydon & Co., Inc., Madison,
Wis.; and Indianapolis Bond & Share Corp., Indianapolis,
Ind. Offering—Expected early in July.
Continental

•

Office—Stamford,

Alstyne, Noel

& Co., New

':V-

;v'/ ^'T-

'

American

Fund,

Inc.,

Jersey City, N. J.

shares of capital stock (par $1).
premium of 5% of the

March 30 filed 300,000

Proceeds—For investment. Underwriter
Management Co., Inc., Jersey

American

—Continental

Proceeds—For

Conn.

due

stock

offering price.

10

selling stockholders.
ment.

it Consolidated Water Co., Chicago, 111.
18 filed $330,000 of 5%
convertible

June

Price—At net asset value plus a

;v;

* Consolidated Diesel Electric Corp. (7/9-13)
June 15 filed 300,000 shares of common stock (par

York.

York, N. Y.

Economu Associates, New

one

share. Proceeds—To reduce bank loans. Underwriter

—None.

company

May 28 (letter of notification) 60,000 shares of common

Underwriter—Shelley, Roberts &

St,, Winnemucoa, Nev.
Co., Denver, Colo.

held; rights to expire on June 26. Price—$37.50

cents), of which

Commodity Fund for Capital Growth, Inc.

the basis of

on

f*

1,500,000 shares of com¬
mon stock
(par one cent). Price — 20 cents per share.
Proceeds—For mining expenses. Office—41 East Second
(letter of notification)

May 21

waukee,

Connecticut Power Co.

May 16 filed 71,132 shares of common stock

being offered for subscription by common

Columbia General Investment Corp.

General

(letter of notification) 5,912 shares of 6% cu¬

mulative preferred

Springs Aquatic Center,

Colorado

June

City, N. J. Underwriter — Southeastern
Broadway, New York.

Place, Jersey

stock

(Each

6

(letter of notification) 3,000,000 shares of com¬
mon stock* (par five cents).
Price—10 cents per share.
Proceeds—To trade in commodities. Office—15 Exchange

be offered for subscription by holders
at the rate of $1.30 for each share

1966 to

1,

common

held.

41

Consolidated Mercury Corp.

Commodity Holding Corp.

it Colonial Utilities Corp.
A
(letter of notification)
$109,245.50 principal
amount of 6% convertible subordinate debentures, clue

June

June

(2993)

The Commercial and Financial Chronicle

...

Statement effective May 8.

City, N. J.

..

t

.

;

Continental Equity Securities Corp.

shares of class A common stock

filed 40,000

March 28

(par $5) and 80,000 shares of class B common stock (par
50 cents). Price—Of class A stock, $12.50 per share, and
of class B stock, 50 cents per share.
Proceeds—To in¬
crease capital and surplus.
Office—Alexandria, La. Un¬
derwriter—None.
•

Cooper Tire & Rubber Co., Findlay, Ohio
filed 97,950 shares of common stock (no par) to
be offered for subscription by common stockholders on
the basis of
new shares for each two shares held

June 6

July

(Friday)

June 22

Inc.—"

Lay (H. W.) & Co.,

Securities

to

(Oflering

Webster

&

Western

shares

62,576

Corp.)

Stone

Common

——

Natural

V-'

stockholders—to be underwritten by The First
and White, Weld & Co.) 92,237 shares
,

to

(Offering

Boston

Corp.

25

&

Staats

Pierce,

Lynch,

Co

Common

—:

Oil

(Bids

11

EDT)

a.m.

(Offering

to

San

$7,500,000

Courts & Co.; and Equitable

Co.;

&

Noyes

Corp.)

Securities

(Reynolds & Co.,

Burns

Securities Corp.

(Union

Denton,

&

Bros.

bonds

$2,300,000

Debentures
Illinois

Fort

Pitt

Herrick

Co.

(Kidder,

(Bids

232,050

Debentures;

$300,000

to

(Tuesday)

preferred

Co.; Ltd.)
shares; and

Carolina Power
(Bids

,

Debentures

$30,0G0,000

$15,000,000

to be invited)

(Gearhart

Otis,

&

$299,950

Inc.)

,

General

11:30

—Bonds
a.m.

EDT)

D.

Biauner

July
Yale & Towne
(Offering
Morgan

6

Common
&

Co.,

Inc.)

$300,000-

October 1

Manufacturing Co

Tampa

Common

-underwritten by
270,000 shares

Bonds

(Bids to be invited) $10,000,000

16

(letter of notification) 150,000 shares of com¬
(par $1). Price—$2 per share. Proceeds—For

Underwriter—Vickers Brothers, Houston,

Doctors

23

Oil Corp., Carrollton, Tex.

filed

500,000

Debentures

Inc
$30,000,000

shares of

common

stock

(par 10

Price — $1 per share. Proceeds — For working
capital, to1 be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to
off $13,590.80 liabilities. Underwriter — James
Oklahoma City, Okla.

Douglas

C.

Corp.,

Fort Collins,

Colo.

(letter of notification) 2,997,800 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Office—155 North Col¬
lege Ave., Fort Collins, Colo.
Securities Co., Denver 2, Colo.

Underwriter

—

Columbia

Association, Inc.

May 18 (letter of notification) 4,000 shares of common
stock (par $25) and 4,000 shares of cumulative preferred
of each class

(Tuesday)

(Bids to be invited)

Inc.

stock

stock (par $50) to

Columbia Gas System,

Marine Construction Co.,

&

Downtown Parking

(Monday)

Electric Co
October 2

(Friday)

to stockholders—to be
Stanley & Co.) about




Bonds

$20,000,000

Transistor Corp
(Milton.

invited) $20,000,000

(Monday)

Florida Power Corp
(Bids

Co

Virginia Electric & Power
(Bids to be

July 2

(Tuesday)

September 25

Common

Co

Clock

Underwriter—Courts & Co.,

March 26

696,150 common shares

Sessions

(par $3).
Proceeds—For

McKeever & Associates,

Bonds

& Light Co

amendment.

cents).

(Tuesday)

September 11

by

Tex.

PDT) $78,000,000

Co

Inc., Atlanta, Ga.

supplied

Land

Charles,' La.

(Tuesday)

be invited)

be

payments of notes, to purchase and equip three boats
and working capital. Office—1111 No. First Ave., Lake

pay
(

Debentures & Stock

Peabody & Co. and Nesbitt, Thomson &

$6,497,400

a.iq.

pro¬

filed 125,000 shares of common stock

Devall

mon

Construction Co., Inc.—Com.

Consolidated Natural Gas

Inc.) $900,000

—

•

construction

(7/18)

(Wednesday)

August 28

Cement Co.,

Lake Ontario Portland
Ltd.

&

Bonds

& Telegraph Co.—Debentures

8:30

19

Price—To

Feb.

International, Inc.—Common

Packaging
(Barrett

(Bids

$800,000

Proceeds—For

share.

per

Underwriter—Carl M. Loeb, Rhoades & Co.

gram.

$20,000,000

Brothers)

Light Co.

general corporate purposes.
Atlanta, Ga.

(Tuesday)

August 21
Pacific Telephone

(Thursday)

28

Jusie

100.000 shares

&

Power

May 9 filed 232,520 shares of common stock (par $13.50)
being offered for subscription by common stockholders
of record June 6, 1956 on the basis of one new share
for each eight shares held; rights to expire on June 26.
Unsubscribed shares are to be offered to employees.

June

Corp.————Common

—

(Vickers

Common
Inc.)

Underwriter—Columbia

Lincoln, Neb.

Delaware

Price—$35

(Monday)

be invited)

to

Devall Land & Marine

Class A Stock
Co.,

&

Biauner

D.

Price—10 cents per share.
Office—1730 North 7th

& Co., San Antonio, Texas
(letter of notification) 20,000 shares of 6% pre¬
stock, series A. Price—At par ($10 per share).
Proceeds—For working capital. Underwriter—The First

May

shares

Union Mines, Inc
(Milton

and

Common

Co

(Bids

300,000 shares

259,473

Co.)

Power

July 28

Popular Merchandise Co., Inc
&

Co.;

$9,650,000

Brothers)

July 24

$12,000,000

Common

(Shields

Weld &
$30,000,000

(Wednesday)

(Baker, Simonds & Co.)

Bonds & Common

Higginson Corp.)

—Debentures

White,

Copeland Refrigeration

$40,000,000

—

(Lee

Co

Corp.;

July 23

Nucleonics, Chemistry & Electronics

Shares, Inc.

Transmission
Securities

(Vickers

and P. W. Brooks & Co., Inc.)
and 230,000 common shares

Corp.

Higginson

Grand Junction, Colo.

ferred

it Delta Air Lines,

Hornblower & Weeks)

and

Cary Chemicals, Inc..
(Lee

$5,000,000

Cement Corp

.—Debentures

Inc.)

(par one cent).

Grand Junction, Colo.
Co., Denver, Colo.

Street,

Bonds

——

invited)

$9,250,000

Inc.)

Ginger Ale, Inc.—

Canada Dry

be

July 18

Republic

Harris & Partners Limited, Inc.; and

(Morgan Stanley & Co.;

Gas

Webs.er

by

Debentures

(Province of)

British Columbia

&

Debentures

$10,897,000

Co.———

Rubber

Armstrong

to

Halsey, Stuart & Co. Inc.)

underwritten

be

stockholders—'to

to

(Stone

Foundry Co.

American Machine &
Union

Tennessee

(Wednesday)

June 27

(Offering

Light Co
(Bids

Courts & Co.; and Equitable
Corp.) 136.000 shares

Securities

stock

Trust Co. of

(Tuesday)

Co.;

&

Noyes

Gas

Atlantic

Common

Wheland Corp.
(Hemphill,

Common

Co.) $570,000

&

Morgan

July 17

$2,000,000

Securities Corp.)

Dalmid Oil & Uranium, Inc.,

April 16 (letter of notification) 2,700,000 shares of com¬

May 21

America

Mica & Minerals Corp. of
(Peter

(Hemphill,

York.

Securities

—Debentures

Wheland Corp.

Proceeds

cents)* Price—$1 per share.

bank loans, and for expansion and working
Underwriter — Lepow Securities Corp., New
Offering—Temporarily postponed.

—To repay

capital.

Dean

Hart) $11,500,000

7.'

by

(Monday)

July 16

and Savard &

Co.; Halsey, Stuart & Co. Inc.;

...Common

(Offering to stockholders—to be underwritten
White, Weld & Co.)
298,410 shares

Transportation Commission—Debentures

(Shields &

(Texas)

(letter of notification) 300,000 shares of com¬

stock (par 10

Proceeds—For mining expenses.

Corp.—

Jacinto Petroleum

Debentures

—

(Lehman Brothers and Wood, Gundy & Co. Ltd.)

Montreal

Minerals Corp.

Cullen

mon

(Friday)

July 13

$7,500,000

Co., Ltd

•

—Common

stockholders—bids 11 a.m. EDT) 341,550 shares

Debens.

Elizabethtown Water Co. Consolidated
Home

Atlanta Gas Light Co
—Common
(Offering
to
stockholders—to be underwritten by The First
Boston
Corp.;
Courts & Co.;
and The Robinson-Humphrey
Co., Inc.) 88,280 shares

$12,000,000

(Lehman Brothers)

notification) 575,000 shares of common
stock. Price—50 cents per share. Proceeds—For mining
expenses.
Office — 1902 Ea»st San Rafael, Colorado
Springs, Colo. Underwriter — Skyline Securities, Inc.,
Denver, Colo.

mon

Pacific Power & Light Co

—Debentures

Capital Airlines, Inc

"

V

(Tuesday)

June 26

(Wednesday)

July 11

stockholders)

(Exchange offer to Emsco

-Bonds

to be received) $40,000,000

Milling Co., Inc.

March 8 (letter of

March 30

Common

Youngstown Sheet & Tube

-

(Bids

170,000 shares

Beane)

&

Fenner

.Common

Union Electric Co

Weeks)

&

United States Shoe Corp
(Merrill

Crater Lake Mining &

Fund, Ltd.—Com.

Pierce,

Common

and riornolower
shares

Co.

175,000

writer—None.

stockholders—to be underwritten by Merrill Lynch,
Fenner & Beane) 2,570,846 shares

(Offering to

Hammill & Co.) 364,280 shares

Southern Nevada Power Co
R.

capital. Office—300 Radio Bldg., Lexington, Ky. Under¬

Sperry Rand Corp.

Class A

(William

-

$250,000,000

invited)

be

,

(Hayden, Stone & Co.) 625,000 shares

(Monday)

Kay Lab.
(Shearson,

to

(par $20) to be offered for subscription by stock¬
Price—$24 per share. Proceeds—For working

stock

holders.

r '•'

International Growth

Canadian

.

June

'

(Bids

Underwriter—.

Co., Cleveland, O.

Telegraph Co.—Debentures

American Telephone &

Western Massachusetts Companies———Common

Price—$10.50 per

capital.

June 11

(Tuesday)

"July 10

working

it Cowden Manufacturing Co.
(letter of notification) 12,000 shares of common

Common

1,400,000 shares

Co.)

&

-

(Oliering to "stockholders—to be underwritten by Smith, Barney
& Co. and Blunt Ellis & Simmons) 335,724 shares

Prescott &

Co.—to

X

oversubscription privilege).

Proceeds—For

v

Paso. Natural Gas Co. and
be underwritten by

of El

Gas

Weld

White,

,

Co

Tank- Car

Union

Common

America

stockholders

an

share.

300,000 shares

Co.)

Noel &

Metals Corp. of

Rare

Common
by

stockholders—underwritten

to

Alstyne,

(Van

Inc.) $1,150,000

(Johnson, Lane, Space & Co.,

(with

(Monday)

9

Diesel Electric Corp

Consolidated

—Class A Common

Sierra Pacific Power Co
(Oliering

CALENDAR

ISSUE

NEW

be sold in units consisting of one share
Price—$75 per unit. Proceeds—

of stock.

Continued

on

page

42

42

The Commercial and Financial Chronicle...

(2994)

Continued from page
development of

For

tration

Ritzville, Wash.

Water Co. Consolidated

Elizabethtown

(6/26)

filed $7,500,000 of'debentures dUe *1986. Pro¬
ceeds—To redeem $103,000'first mortgage 550-year
gold bonds of RaritamTownship Water Co. (assumed by
company) at 105%"- and to repay bank loans.
UnderTov be
determined
by competitive bidding.

writer

\

bidders:

Halsey, Stuart & Co. Inc.; The First
Corp.; Kuhn, Loeb & Co. Bids—Tentatively expected to be received up to 11 a.m. (EDT) on June 26
at the City Bank Farmers Trust Co., Two Wall St., New
York, N. Y.
•
* -.
Boston

■

"

'

Eureka Corp.-,

Lt^., New York'

—

Bel-Air

equipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave., Hawthorne, Calif. Underwriter—Samuel J3.
Franklin & Co., Los Angeles, Calif.

/

'

Industrial Dynamics Corp., Wilmington, Del. '
May 28 filed $6,302,950 of 5% convertible subordinated
:4debentures due 1976, together with 126,059 shares of torn- • April 3 (letter of notification) 150,000 shares of common
mon stock
(par 10 cents) to be offered for subscription < stock (par $1). Price — $2 per share. Proceeds — For
in units of $50 of debentures and one common share by
working capital." Office-—100 West Tenth St., Wilming¬
preferred and common stockholders of National Alfalfa >
ton, Del. ' Underwriter —World Wide Investors Corp.^
Dehydrating & Milling Co. of record June 20, 1956 pn
Hoboken, N. J.
the basis of #ne such unit for each preferred of National I
Industrial Minerals Development Corp.
and one such unit for each 10 National common shares; ;
March 7 (letter of notification) 1,000,000 shares of comr
rights to expire on July 12. Price—$50 per unit. In ,
mon stock. Priee^Five cents per share. ^Proceeds—For
exercising the subscription rights, credit will be given ^
development ancl working capital. Office—Moab, Utdh.
toward the subscription price on the basis of s$45; for •
Underwriter—I. J.: Schenin Co., New York..
each share of preferred and $15 for each share of com¬
'^'Inglewood' Gasoline Co. '?%.•>;.^
mon7 stock of National tendered as a part of the stfb-.
%:-waA;
May 18 {letter op notification)475/725.9 shares of capital
scriptio'n. Proceeds—For capital expenditures and workstock'(par 50 cents)*-to be first offered to stockholders.
irrg capital; • Underwriter—None.
-y- :;y^r
Price-*-$i.70 per share. Proceeds—For construction of
Gray Tool Co., Houston, Texas
r
an absorption type gasoline
plant. Office—11950 San VinMay 3 (letter of notification) 3,270 shares of class B stock
cente Blvd., Suite 207, Los Angeles 49, Calif.
Under¬
(no par), of which 1,000 shares are to be offered pro
writer—Bennett & Co., Hollywood 28, Calif.
- /
rata to the holders of class A stock and 2,270 shares are
Insulated Circuits, Inc., Belleville, N. J. f
offered to employees of the company. Price — $50 per
Nov. 10 filed 100,000 shares of 0% convertible preferred
share. Proceeds—For working capital. Office—0102 Haritock (cumulative if and to the extent earned).?; Price-*.risburg Blvd., Houston, Tex. Underwriter—None.
At par ($5 per share). Proceeds—For general corporate
Growers Container Corp., Salinas, Calif.
purposes. Underwriter—Alexander Watt & Co., Inc., has;
May 28 filed 600,000 shares of common stock (par $1) / withdrawn as underwriter; new one to be named. /
if
to be offered primarily to individuals and firms who
• Interlake Iron
Corp.
'
4
4
are
engaged in or closely allied to the growing and
June 4 filed 80,561 shares of common stock (no
par)
shipping industry. Price—$3 per share. Proceeds—For
to be offered in exchange for common stock of Globe
working capital, capital expenditures and other corpo¬
Metallurgical Corp. at the rate of 0.4666% of one share
rate purposes. Underwriter—None.
for each Globe share. Offer to expire on July
20, 1956,
unless extended.'
'
: '
'
Guaranty Income Life Insurance Co.
.'m
Dec. 30 (letter of notification) 24,000 shares of capital
International Basic Metals, Inc.
itock (par $5) to be offered first to stockholders; then
Jan. 27 (letter of notification) 1,000,000 shares of com¬
policyholders and the public. Price—$10 per share. Pro¬
mon stock
(par 10 cents). Price — 25 cents per share.
ceeds—For working capital. Address—P. O. Box 2231,
Proceeds—For mining expenses. Office—155 West South
Baton Rouge, La. Underwriter—None.
Temple St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake City, Utah.
if Guaranty Paper Corp.
f

April 30 filed 2,276,924 shares of common stock (par 25

which

1,991,210 shares are to be
offered'for subscription by stockholders of record May
18, 1956 at the rate of one new share for each five
shares held. The remaining 285,714 shares are to be is¬
sued to the underwriters as compensation in connection
with the offering.
Price—$1.75 per share. Proceeds—
To explore, develop and exploit the TL Shaft area. Un¬
derwriters—Alator Corp., Ltd. and Rickey Petroleums
& Mines, Ltd., both of Toronto. Canada.
cents-Canadian), of

Underwriter

(letter of notification) 150,000 shares of capital
Price — $2 per share. Proceeds — For

(par $1).

.

—

Probable

Utah.

16

itock

-

May 25

"

Ideal-Aerosmith, Inc., Hawthorne, Calif.
Dec.

Elevator Warehouse Co.

Grain

loans and for general corporate purposes. Of¬
Underwriter — Morgan & Go.,
Salt Lake City, Utah.

*

For mining expenses.

—

Securities Co., Provo,

Full regis¬

To repay
—

Buena Vista, Colo.

Bank Bldg., Portland, Ore. Un¬

if Eastern Washington Natural Gas Co.
June 6 (letter of notification) 50,000 shares of 5% cumu¬
lative preferred stock (par $5)
and 50,000 shares of
common
stoci* (par 50 cents) in units of one share of
each class of stock.
Price—$5.50 per unit. Proceeds—
fice

Uranium Corp.,

eeeds

be filed.

to

expected

Dawn

Dec. 27 (letter of notification) 3,000,000 shares of capital
itock (par five cents). Price—10 cents per share. Pro- ;

Co., Inc., Portland, Ore.

derwriter— Blyth &

Golden

v.\-

..

parking building and facilities.

a

American

Office—1333

41

Thursday, June 21, 1956

.

;

<•

Florida

Power

Corp. (7/2)
$20,000,000 of first mortgage bonds
1986. Proceeds—To repay bank loans and for new

June

filed

8

struction.

Underwriters—To

due
con¬

determined

be

by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers
and Blyth & Co., Inc. (jointly); Glore, Forgan & Co.;
The

First

Boston

Corp.; Union Securities Corp. and
Harriman Ripley & Co. Inc. (jointly). Bids—Expected
to be received up to 11:30 a.m. (EDT) on July 2.
Florida Sun Life

Insurance Co.

March 16 filed 32,000 shares of common stock

Price—$10

(par $1).

Proceeds—To expand company's
business. Office—Fort Lauderdale, Fla. Underwriter—
None. Offering will be made through James C.
Dean,
President of company.
•

share.

per

Fort Pitt

Packaging International, Inc. (6/28)
June 30 filed 300,000 shares of common stock
(par ±y0),
of which 250,000 shares of for account of
company and
60,000 shares of five selling stockholders. Price—$3 per
■hare.
of

Proceeds—For working

"Totosave"

Ray"

capital; for exploitation
and for marketing of "Tropicheater. Office — Pittsburgh, P*

system;

infra-red

space

Underwriter—Barrett

Herrick

&

Co., Inc.,

New

York.

Statement effective May 14.

of

5%

(letter of notification) $77,000 principal amount
notes, due Jan. 10, 1958 to be of¬
stockholders. Price—85% of principal amount.

Proceeds—To
Center

refund

a

demand

note.

Office—381

West

St., Marion, Ohio. Underwriter—None.

Gas

Hills

(letter of notification) 60,000 shares of common
($1 per share). Proceeds—For pur¬
of machinery and renting of water-marking

Price—At par

chasing

machines

and working capital. Office—201 N. Main
St.,
Ccudersport, Pa. Underwriter—None.

Gunkelman (R. F.) & Sons, Fargo, N. D.
May 25 (letter of notification) 1,800 shares of 5% cumu¬
lative preferred stock (par $100). Price—$98 per share.
Proceeds
For expenses incident to commercial grain
—

business.

Hard

Underwriter—W. R. Olson

burgh, Pa.

Underwriter—Graham & Co., Pittsburgh, Pa.

Harrison

(D. L.) Corp., Dallas, Texas
(letter of notification) 100,000 shares of
stock (par 10 cents).
Price—$2.50 per share.

April 18
mon

For

equipment,

materials

raw

Pro¬

and

Hidden Dome Exploration Co., Inc.
May 15 (letter of notification) 3,000,000 shares of capital
stock. Price—At par (10 cents per share). Proceeds—
For the development of oil and
gas properties. Office—
E.

Fremont

Ave., Las Vegas, Nev.

Underwriter—

National Securities Co., Las Vegas, Nev.

Jan. 4

(letter of notification) 1,200,000 shares of com¬
Price — 25 cents per share.
Proceeds—For expenses incident to
mining operations.

March

Office—Kemmerer, Wyo. Underwriter—Philip Gordon
& Co., Inc., New York 6. N. Y.

ment, etc.
N. Y.

if Gas Industries Fund, Inc., Boston, Mass.

•

June

14

shares

filed

of

(by

common

amendment)
2,000,000 additional
stock (par $1). Price — At
market.

Proceeds—For investment.

if General Precision Equipment Corp.
June

20

vertible

filed 59,445 shares of
$1.60 cumulative con¬
preference stock (no par) and 59,445 shares

of common stock

5%
in

(par $1) to be offered in exchange for

preferred stock and common stock of Graf
lex, Inc.
the ratio of one-quarter share of
General preference
Graflex preferred share and

stock for each

share

of

Graflex

one-quarter

General
common

common

share.

stock

exchange for each
Underwriter—None,

if General Transistor Corp.
June
mon

11

(letter of notification)

(7/2-6)
100,000 shares of

130-11

90th

derwriter—Milton

for

D.

Blauner

&

Co.,

Inc.,

New

York

City.

18

(N. J.), New York

filed

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For
plant facil¬
ities, survey of property and underground
development.
Underwriter—None.
is President.

Maurice Schack,
Middletown, N. Y.t

Statement effective March 11.

if Glory Hole, Inc.
June 11

(letter of notification) 80,000 shares of class A
stock (par $1).
Price—$2.50 per share. Proceeds
—For mining expenses.
Address—Box 426, Central
City,
Colo. Underwriter—None.
common




"Isras" Israel-Rassco Investment

and E. S.

stock

shares of common stock (par one
cent), of which
1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to
options and 250,000 shares and certificates therefor are
to be offered for sale outside of the United States.

be the market price on the American Stock Ex¬
change. Proceeds — Fdr carrying out the exploratory
drilling and development of presently licensed acreage,

operations and expenses of the company, and
acquisition,
exploration and development of additional acreage. Un¬
derwriter—H. Kook &

$15,000.

Price—$1 per share. Proceeds—For drilling ex¬
purchase of properties and working capital. Of¬
fices—Las Vegas, Nev., and Salt Lake City, Utah. Under¬
writer—Ackerson-Hackett Investment Co., Reno, Nev.

expenses incident

Address

—

P.

•

5

bentures

Jones

Proceeds—For

purposes.

expansion and other
Underwriters—Lehman Brothers

construction

for

dress—Box

Colo.

(letter of notification) 120,000 shares of com¬
mon stock (par 10
cents). Price—$1.50 per share. Pro-,
ceeds—For exploration and development
expenses. Un¬
derwriter
Fenner Corp.
(formerly Fenner-Streitman
& Co.), New York.
—

of

cedar shake
fabricating factory. Ad¬
236, Junction City, Ore. Underwriter—None.
a

(letter of notification)

assessable

writer—None.

7

Inc.

Jurassic Minerals, Inc., Cortez, Colo.
Aug. 26
per

Idaho-Alta Metals Corp.

Apothecary,

2, Tex.

125,000 shares of common stock (par $1).
Price—$5 per share. Proceeds
To expand operations
of subsidiary and increase
investment therein. Under¬

March

Mel-

if Junction City Forest Products, Inc.
13 (letter of
notification) 100 shares of preferred
stock. Price—At par ($1,000 per share). Proceeds—For

cor¬

—

Ave.,

June

by

Inc., Montgomery, Ala.

Proceeds—To

promissory notes. Office—620 Texas Ave., Hous¬
Underwriter—J. R. Phillips Investment
Co.,
Inc., Houston, Tex.

de¬

filed

share.

ment of

,

5

common

employees under stock

per

(letter of notification) 100,000 shares of capital
(par 50 cents) of which 80,000 shares are for the
account of the
company and 20,000 shares of selling
stockholders.
Price—$3 per share.
Proceeds—For the
enlargement of offices; for three new stores, and repay¬

Wood, Gundy & Co. Ltd. for Canadian

Hometrust Corp.,

to

stock

group.

Jan.

be offered

Price—$44.25

May 8

Oil

amendment.

porate

to

plan.

working capital.
Office—1955 West North
Park, 111. Underwriter—None.

Inc., Hollywood,

Co. Ltd.
(6/26-27)
$7,500,000 of convertible subordinated
due July 1, 1971.
Price—To be supplied

Un¬

,rose

O. Box 308, Winterhaven,

filed

(par $1)

purchase

ton

Home

June

Jay Peak.

Co., Inc., Melrose Park, III.
Juge 18 (letter of notification) 6,779 shares of

Price—At par ($1 per share). Proceeds—For min¬

Underwriter—Arthur B. Hogan,

on

if Jewel Tea

Mining Co., Winterhaven, Calif.
April 13 (letter of notification) 250,000 shares of capital
expenses.

to ski development

derwriter—None.

Holden

ing

Co., Inc., New York.

if Jay Peak, Inc., North Troy, Vt.
Juije 18 (letter of notification) 24,600 shares of common
stdek.
Price—At par ($10 per share).
Proceeds—For

(par 30

penses,

Price

—To

cents).

stock.

■'<

.

Israel-Mediterranean Petroleum, Inc.
(Panama)
May 29 filed American voting trust certificates for 1,430,-

stock
common

13.

000

Emerson, South Texas Bldg., San Antonio, Tex.

Hiskey Uranium Corp.
May 31 filed 500,000 shares of

Co., Ltd,

Steamship & Salvage Co., Inc.
May 4 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
working capital and for purchase of a ship and equip¬
ment.
Office—1214 Ainsley
Bldg., Miami, Fla. Under¬

Houston Hill are engaged in exploration for and
production of oil and gas as a joint venture. Office—
Fort Worth, Tex. Underwriters — William D. McCabe

U. S. group and

General Uranium Corp.
Jan.

Oil Exploration Capital Fund
$450,000 of participations in this Fund

to be offered for public sale in minimum units of

equip¬
369-375 DeKalb Ave., Brooklyn 5,

Corp.,

com¬

and

and

1956

filed

—

Isthmus

Calif.

Price—$3 per share. Proceeds
equipment, to repay bank loan
working capital, etc. Office —
Ave., Richmond Hill, New York City. Un¬

machinery

advances

13

Calif.

stock (par 25 cents).

—For
and

in

Hill & Hill

Office

Underwriter—Kamen & Co.. New York.

New York. Statement effective June

and

stock (par five cents).

Corp.

Sept. 28 filed 9,000 ordinary shares. Price—At par (100
Israel pounds each, or about $55 in U. S.
funds), payable

Proceeds—For payment of various property and explor¬
atory well costs and expenses. Business—George P. Hill

mon

Industries

writer—Foster-Mann, Inc., New York, N. Y.
com¬

working
Underwriter—Garrett & Co., Dallas, Texas.

—

Plastic

in State of Israel Independence Issue Bonds
only. Offioo
—Tel Aviv, Israel.
Underwriter — Rassco Israel

Co., Fargo, N. D.

Rock

Mining Co., Pittsburgh, Pa.
(letter of notification) 1,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—To purchase machinery and equipment^nd
for working capital. .Office — 377 McKee Place, Pitts¬

219

Mining and Oil, Inc.

International

Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For advances to Arliss Co., Inc. for purchase of

Feb, 20

capital.

subordinated

fered to

stock.

ceeds

if Fulfillment Corp. of America
June 8

June 13

2,855,000 shares of

non¬

stock (par one cent). Price—10 cents
Proceeds—For expenses incident to mining

common

share.

activities.

Office

—

Underwriter

326

—

West

Montezuma St., Cortez,
Bay Securities Corp.. New York,

New York.

Kay Lab, San Diego, Calif.
May 23 filed 364,280 shares of class
$1), of which 307,400 shares are
public and 56,880 shares to certain
To

be

(6/25)
A
to

common

be

stock (pa

offered

to

th

stockholders. Price-

supplied by amendment. Proceeds—$2,455,361 t

Number 5544.. .The Commercial and Financial Chronicle

Volume 183

he applied to the repayment of notes, and bank loans;

-

>

Mercantile Acceptance Corp. of California <
May; 24 (letter; of notification) $10o,0u0 of 12 year 5%

initially to working capital to be used for general
purposes. Underwriter—Shearaon, Hammill &
Co.) New York, and Los Angeles, Calif. •
v
added

capital.
Calif.

tiled

(6/28) ;

to repay current

•

poses..

.

stock

ver

Lay (H. W.). & Co., Inet (6/22-25 F
-x: ./x/; yt
May 25 filed 200,000. shares of class A common stock
(par 50 cents), of- which .149,000 shares are to be of¬
fered by the company and -51,OOO. shares for account
of certain selling stockholders- Price—$5.75 per share.
Proceeds—To repay-$300,000 of bank loans, retire 7,879
shares of 5.2% cumulative convertible preferred stock,

'

.y/i-X

V'

•

'

to:7,50Q shares are to be offered to em¬
ployees. Price—$3 per share.-. Proceeds — For general
corporate purposes.! Office—2711 Church Ave., Cleve¬
up

.

xx
•.

F. Breen, New York.

for general corporate
Ariz.-, Underwriter—George
%

.

,

,

'

i

(W. H.) & Co., Wilkes-Barre, Pa.
20,000 shares of common stock (par $5).
Price—$25 per share. Proceeds — For working capital.
Underwriter—None. A. E. Nicholson Jr. of Kingston, Pa,

xx77,,7y;,.;/.

.

of Mississippi

125,000 shares of Balanced Income Series;

mon

125,000 shares of Insurance Growth Series; and 125,000
shares

Industrial

of

Proceeds

—

Growth

For investment.

Series.

Price—At

Underwriter

Management Co., Dallas, Texas.

—

V'--'v

.-

market.

All States
,

Island Lighting Co.
April 5 filed 120,000 shares of cumulative preferred stock,
series G (par $100). Price—To be supplied by amend¬
ment.
Proceeds—To repay bank loans.
Underwriters—
Long

Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed
because of present unsatisfactory market conditions.
Blyth

&

Los

Angeles Airways,

Inc.,

Los Angeles, Calif.

April 23 (letter of notification) 645 shares of common
stock (par $10). Price — $54 per share. Proceeds
To
Clarence M. Belinn. the selling stockholder. Office—5901
West Imperial

Highway, Los Angeles 49, Calif. Under¬
Co., Los Angeles, Calif.

writer—Dean Witter &

3,000 shares of common stock (no par) to be offered in
units of one share of preferred and one share of common.
and processing silica.

nati, Ohio.

Proceeds — For mining expenses
Office—2508 Auburn Ave., Cincin¬

Underwriter—None.

Montreal

Transportation Commission

(6/26)

June 8 filed

$11,500,000 of sinking fund debentures due
July 1, 1976 (guaranteed by the City of Montreal). Pro¬
ceeds—For purchase of buses, improvements and to re¬
pay short term debt.
Underwriters—Shields & Co. and
Halsey, Stuart & Co. Inc., both of New York; and Savard
& Hart, Montreal, Canada.
Mormon Trail Mining

Corp., Salt Lake City, Utah

Feb. 9

(letter of notification) 3,000,000 shares of capital
one cent).
Price—10 cents per share. Pro¬
Office—223 Phillips Petrol¬
eum Bldg., Salt Lake City, Utah.
Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.

stock

(par

Oct.

6

Canyon Uranium

& Oil Co.
3,000,000 shares

of non¬
assessable capital stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — Simms Bldg., Albuquerque, N. M
Underwriter—Mid-America Securities Inc. of Utah, Sail
Lake

(letter

of notification)

City, Utah.

Lumberman's Investment & Mortgage Co.

May 2 filed 50,000 shares of common stock (par $10).
Price—$12 per share. Proceeds—For working capital and

general

corporate purposes.
Underwriter—None.

Office

—

Colo.

Denver,
■

Maine

■

one

share for each

V-k

shares of stock

hdld

Diners,

Inc.

on

May 25; rights to expire on June 25. Price—$21,50 per
share.
Proceeds—To enlarge business.
Underwriters—

stock

(par $10).

unsubscribed shares (except those sold to officers
employees): Hornblower & Weeks, New York; and
Bartlett & Clark Co., Portland, Me.
~

1,000 shares of common

Proceeds—To sell¬
J. M. Dain & Co., Inc.,

Price—At market.
—

X

Mammoth Milling & Uranium Co.,

Inc.

/ ^*

May 11 (letter of notification) 3,000,000 shares of capital
stock. Price—At par (10 cents per share). Proceeds—

Office—205 Carlson Bldg^PocaUnderwriter—-Columbia Securities Co., Inc.
California, Beverly Hills, Calif.
>

For mining expenses.

tello, Idaho.
of

Manufacturers

Cutter Corp.

*>■

"**

(letter of notification) 300,000 shares of class.A
common stock. Price—At par ($1 per share). Proceeds—
Oct.

18

loans, and for new equipment and working
capital. Business-^Cutting tools. Office—275 JeffersoD
St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
same city.
'
To

repay




/

/ s

'

t

filed

300,000 shares of capital stock (par $1).
Price—$10 per share. Proceeds—For investment. Office
—Englewood, N. J. Underwriter—Lee Higginson Corp.,
New York. Name Changed—From Atomic, Chemical &
Electronic

Shares, Inc.

Oak Mineral

"

'

-

V'

*

& Oil

Corp., Farmington, N. M.
.Nov. 8 (letter of notification) 2,000,000 shares of commonstock (par five cents). Price—15 cents per share. Pro¬
ceeds—For exploration and development and other gen¬
..

Underwriter—Philip Gordon &

Co., New York.
•

Old

National

Insurance

Co., Houston, Texas

March 29 filed 48,108 shares of capital stock (no par) to
be offered for subscription by stockholders on the basis
of

nine shares held (with an
Price — To be supplied by
amendment. Proceeds
To purchase life insurance in
force and assets from other life insurance companies..
Subscription Agent — Old Southern Trust Co., Houston,
one

new

share

for

each

oversubscription privilege).
—

Tex.

Underwriter—None.

Pacific Finance Corp..

Statement effective June

13.

(Calif. )

April 10 filed $25,000,000 of debentures due 1971. Price
—To be supplied by amendment. Proceeds—For reduc¬
tion of short-term bank loans.
Underwriters—Blyth &

Co., Inc., and Hornblower & Weeks. A second delaying
was filed May 21, with the expiration of the
first 20-day delaying period.
;

amendment

•

Pacific

Gas

Electric Co.

&

May 22 filed 812,791 shares of common stock (par $25)
being offered for subscription by
of

June

record

for

each

1956.

20

common

Price—$45

per

share.

Proceeds—To reduce bank

loans and for construction program.
&

stockholders

12, 1956 on the basis of one new share
held; rights to expire on July 2,

shares

Underwriter—Blyth

Co., Inc., San Francisco and New York.
Pacific Power &

Light Co.

(7/11)

341,550 shares of .common stock (par $6.50)
to be offered for subscription" by common stockholders
of record July 11, 1956 at

the rate of one additional share
held; rights to expire on Aug. 2,
Price—To be set by board of directors. Proceeds—■

for each

1956.

For

10 shares then

construction

Underwriter—To be deter¬
Probable bidders: Leh¬
Brothers, Union Securities Corp., Bear, Stearns &
Co. and Dean Witter & Co. (jointly); Kidder, Peabody
& Co.
Bids—Tentatively expected to be received up to
program.

by competitive bidding.

man

11

a.m.

(EDT)

on

July 11.

Pan-Israel Oil

National

Consolidated

Mining Corp.

(letter of notification) 87,000 shares of common
stock (par one ce»t).
Price—$3 per share. Proceeds—
For mining expenses.
Address — Salida, Colo. Under¬
writer—Pummill Enterprises, Houston, Tex.
May 9

For

and

17

mined

if Nash Finch Co.
June 7 (letter of notification)

*

.June 7 filed

May 28 (letter of notification) 99,800 shares of class A
stock (par $1). Price—$3 per share. Proceeds—For ex¬
pansion and working capital. Office—20 Newark-Pompton Turnpike (Route 23), Singac, N. J.
Underwriter—
All States Securities Dealers, Inc., New York.

Underwriter
Minneapolis, Minn.

Bonding & Casualty Co.

new

View

ing stockholder.

it'

May 17 filed 38,000 shares of capital stock (par $10)v be¬
ing offered for subscription by stockholders at the*raj;fe
of

Mountain

■

-

Nucleonics, Chemistry & Electronics Shares, Inc.

eral corporate purposes.

Underwriter—Arizona Mutual
Co., Phoenix, Ariz.

unit.

expenses.

(6/27)

Life Insurance Co.

company.

per

-

Feb.

.

ceeds—For mining expenses.
Lost

•

.

Co., Cincinnati, Ohio
March 23
(letter of notification) 3,000 shares of 8%
cumulative convertible preferred stock (par $50) and

Price —$60
V

mining

(one cent per share). Proceeds
Office—12822 3rd Ave. So., Se¬

attle, Wash, Underwriter—None.
.

com¬

stock. Price—At par

—For

Silica

-Mohawk

filed

if North Western Mining & Exploration Corp.
June 11 (letter of notification) 5,000,000 shares of

■■'..■■v-V
-

16

is President.

•

filed

1

For

Nicholson

Jan.

machinery and equipment. Office—New Albany^
& Co., Jackson, Miss.

Benefit Insurance

Lone Star Fund, Dallas, Texas

„

June

(par 3%

—

State

Projects-Venture C, Ltd., Madison, N. J.

insurance

Co., Tulsa,

cents). Price—10 cents per share.
mining expenses. Office — 345 South
St., Salt Lake City, Utah. Underwriter—Birkenmayer & Co., Denver, Colo.

Proceeds

provide capital and surplus funds for the activation of
this

Share

&

"

Modern Pioneers'

•

stock

mon

May 24 (letter of notification) $300,000 of trust fund cer¬
tificates.
Price—At par ($2 per unit). Proceeds — To

and

Offering—Postponed.

per snare. Proceeds

Underwriter—Lewis

100,000 shares of common stock

Bond

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬

common

777.-7x7y'v7

,

Underwriter—Western

-

Okla.

Offiee-^-728 Symes Bldg., Den-,

Mission Appliance Corp.

Miss.

(par 10
cents). Price—To be supplied by amendment. Proceeds
—For exploration and evaluation of leasehold properties,
purposes.

Tex.

Peter

April 23 (letter of notification) 7,475 shares of preferred
stock (par $20-) and 29,900 shares of common stock (par

chase of

equipment
Office—Tucson.

,

2, Colo. Underwriter—General Investing Corp., New

Mineral

.

Office

t

$5) to be offered in units of one preferred and four com¬
mon shares.
Price—$40 per unit. Proceeds — For pur¬

Underwriter—None,

improvements,

expenses.

stock

Natural Power Corp. of America, Waco, Texas
May 1 (letter of notification) 64,000 shares of common
stock (par one cent). Price—$3.25 per share. Proceeds—
For mining expenses.
Address—P. O. Box 2299, Waco,

*'

cent). Price—50 cents

one

effective June 12.

Lewisohn Copper Corp.

March 30 filed

'./<■

$2,500,000 of participations in capital as lim¬
ited partnership interests in the venture being sold in
minimum units of $25,000.
Proceeds—For expenses in¬
cidental to oil exploration program. Underwriter—Mineral Propects Co., Ltd., 011 "best efforts basis. Statement

-

(letter of notification) 37,50.0 shares of common
stock (par $1) to be offered for subscription by common
stockholders, of record March 1; 1956 on the basis Of one
new share for each 4Y4 shares .held. Of the unsubscribed

•

(par

common

— Little
Rock,
Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely
postponed. - : '''
-

Feb. 7 filed

Feb. 24

land, Ohio.

—

class A

50,000 shares of class B common stock
Price—To be supplied by amendment. Pro-^

Ark.

stock

Underwriter

shares of

50,000

and

{par $2).
eeeds — To selling stockholders.

—

Lester Engineering Co., Cleveland, Ohio

portion,

(7/16) *7 7.

filed

15

(par $2)

..

Hospital, Inc., Bronx, N. Y.
Jan. 12 filed 24,120 shares of common stock (no par)
and 30,000 shares of $6 dividend preferred stock (no
par),- The company does not intend presently to sell
.more stock than is required to raise, at most, $2,700,000/
Price
$100 per share. Proceeds — For construction,
working capital, reserve, etc. Underwriter—None.

Business—Produces, food prod¬
Ga.
Underwriter —Johnson/

'/

•

.

Underwriter—

•

National Old Line Insurance Co.

Midland General

-

Chamblee.

Lane, Space & Co., Inc., Savannah, Ga.

<-

Office—Wilmington, Del.
*

York, N. Y.

*"•

•If-

common

N. W., Washington, D. C.
,

Nov.

"

(par 10
Proceeds—To repayment of

-fFor mining

N. Y. -Underwriter—None.

capital.

Corp.. of America

570,000 shares of

^Mid-Continent Uranium Corp.
May 31 (letter of notification) 100,000 shares of

•

—

1145-19th St.,

-

Morgan & Co., New York.

-

--ii

Lawyers Mortgage <& Title-Co. ;
.. v
.
* ■ . .■»
May 11 (letter of notification). 133,000 shares of com-,
mon stock
(par 65 cents). Prjce.—$1.50 per share. Pro¬
ceeds—For working capital. Office—115 Broadway, New-

Office

filed

per

None.

cents). T*rice—$1 per share.
loans, to exercise option to purchase property now under
lease, for construction of a plant, and for further expioration, working capital and other general corporate pur¬

.workiog/capitaLv;Underwritf!rs4rKiader,:
Peabody & Co.,.New York; and Nesbitt, Thomson & C.o.,

ucts.

1956 on a l-for-4 basis.
share. Proceeds—For vacuum metallizing,
conditioning, slitting and inspection machinery. Office—

Price—$2

bank loans; for improvement and devel¬

& Minerals

13

Corp.

B stockholders of record Feb. 1,

San

y;;7;:: 7

Mica

June

for

and for working

Corp.,

f

—None.

Proceeds-^Together with other funds, to:
acquire limestone and clay lands,' for construction pro¬

York 6,

<

*

Securities

opment costs; and other corporate purposes.-Under writer

.

Ltd., Montreal, Canada.

Guardian

June-.15, 1956, on the basis of two new .shares for
held; rights to expire on July 3. Price
—$3; per share. Proceeds—For advances to subsidiaries;

amendment.

and

—

each three shafes

due June 80,

gram

Office—333
Underwriter

Metallizing

(letter of notification) 24,000 shares of Class A
(par $1) and 40,000 shares of Clais B stock (par
$1) to be offered for subscription by Class A and Class

stock

For working
San Francisco,

—

record

5 Vz% - debentures,
1S71; 232,050 shares of 5% convertible pre¬
ferred stock (par $10-Canadian); and 696,150 shares of
common stock {par $1-Canadian).to be ottered in units
of $700 of debentures, 25 shares of preferred stock and
75 shares of common stock.
Price—To be supplied by
$6,*97,400 XCanadian)

Proceeds
Montgomery St.,
par, '

March 5

• Mercast
Corp., New York ~
May -18. .filed 250,466 shares oLrcapital stock .(par 10
cents) being offered for subscription by stockholders of

★ Kropp Forge Co.^
^letter of notification)? 18,804 shares of common.
stock
(par 33Y3 cents).: Price—At 'market, tProceeds—
To seinng scocttiiolaers. ' Underwriter-sSincere & -Co.; Chicago, 111.
;

uune

7

At

—

Francisco, Calif.

.

June

Price

debentures.

corporate

Lake Ontario Portland Cement -Gov LtcL

National

,

$343,7u0 to pay accounts payable and commissions pay¬
able; and the balance of approximately $200,000 to be

43

(2995)

National

Gypsum

be offered for sale outside of the United States.

Co.

stock (par $1)
being offered for subscription by common stockholders
of record June 11, 1956 on the basis of one new share
for each eight shares held; rights to expire on June
25. Price—$47 per share. Proceeds—To finance develop¬
ment of a gypsum deposit discovered and now held under
option to the company. Underwriters—W. E. Hutton &
Co., Cincinnati, O. and New York City; and Blyth & Co.,
May 22 filed 417,403 shares of common

Inc.i New York.
National
Dec. 27

•stock

Corp., Denver, Colo.

(letter of notification) 300,000 shares of common
one cent).
Price—$1 per share. Proceeds—

(par

Colo.
city.

Denver,

Office

Underwriter

—

—

556 Denver Club Bldg.,
Investment Service Co.,

Price—

To be the market

price on the American Stock Exchange.
Proceeds—For exploration, drilling and development of
oil and

gas acreage

in Israel.

Underwriter—H. Kook &

Co., Inc., New York.

Peabody Coal Co., Chicago, III.
27 filed 210,823 shares
of common stock being
offered for subscription by stockholders of record Jan.
30, 1956 on the basis of nine additional shares of common

Feb.

stock

Lithium

For mining expenses.

same

Co., Inc. (Panama)
May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent), of which
1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to
options and 25,000 shares and certificates therefor are to

for

each

100

common

shares held and nine

shares of common stock for each 40 shares
stock held.

new

of preferred

This offer will not be made to holders of the

6,492,164 shares of common stock issued for the acquisi¬
tion of the Sinclair properties under an offer of June

Continued

on

page

44

M

The Commercial and Financial Chronicle...

(2996)

Continued from page

warrants will expire on Dec. 31, 1957.
.Price—At par ($5 per share). Proceeds—For working
capital and general corporate purposes. Underwriter—
None. Statement effective March 27.
The

1955.

'28,

Manufacturing Co.
June 14 (letter of notification) 125,000 shares of class A
common stock
(par 10 cents). Price—$2 per share. Pro.eeeiis—For payment of present indebtedness; purchase
of additional equipment and
inventory; factory space
and working capital. Office—112 Academy St., Newark,
«

Perfelope

Underwriter—None.

Del.

Perforating Guns Atlas Corp.

(letter of notification) 12,500 shares of common
jstock (par $1).
Price—$24 per share. Proceeds—To go
to six selling stockholders. Office—Scott St. and Holmes
4

June

Underwriter—Rotan, Mosle & Co.,

Koad, Houston, Tex.
Houston, Tex.

Inc., St. Petersburg, Fla.

Pinellas Industries,

(letter of notification) 8,000 shares of
stock (par $1). Price—At the market

16

Feb.

-common

class A
(maxi¬

Proceeds—For working capital. Office—34th
& 22nd Ave., North St. Petersburg, Fla. Underwriter
—Eisele & King, Libaire, Stout; & Co., New York.
$6).

mum

•

Popular Merchandise Co., Inc. (6/27-28)
8 filed 259,473 shares of common stocK (par $1),

June

which

of

account of

shares are to be sold for

200,000

and 59.473 shares for account of two selling
stockholders.
Price — To be supplied by amendment
the company

(expected at $8 per share).
Proceeds—Fox- expansion
working capital. Office — Fairlawn, N. J. Under¬
& Co., New York.

.and

writer—Shields

Miami, Fla.
Investment

Reinsurance

stock

shares

Washington, D. C. Under¬
*

are

Southwestern Resources, Inc., Santa Fe, N. M.
June 8 filed 1,000,000 shares of common stock (par 25

corporate

purposes.

Underwriter—Southwestern

Secu¬

if Sperry Rand Corp. (ifylO)
14 filed 2,570,846 shares of common stock
(par
50 cents)
to be offered for subscription by common

June

stockholders

of

record

July

share for each

9,

1956,

the

on

basis

of

10 shares held;

rights to expire
July 25, 1956. Price—To be supplied b,y amendment.:.
Proceeds—To reduce bank loans
and
for capital ex-,
penditures. Underwiters—Lehman Brothers and Merrill
Lynch, Pierce, Fenner & Beane, both of New York.
new

one
on

(7/18)

;

April 20 filed 965,000 shares of capital stock. Price—$10
per share. Proceeds—For construction of plant, working
capital and general corporate purposes. Underwriter—
Vickers Brothers, New York.

(letter of notification)

May 7

"V.;

'

Springfield City Water Co.

88,888 shares of

common

stock

(par $10). Price—$13 per share. Proceeds—For
outstanding loans, plant additions and working capital.
Office—701 Boonville Ave., Springfield, Mo. Underwriter

(New York)

Rogosin Industries, Ltd.

purchase

rities Co., Dallas. Texas.

Hacienda, Inc., Inglewood, Calif.
Dec. 19 filed 4,000,000 shares of common stock. Price—
At par ($1 per share). Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilittal
and for general corporate purposes. Underwriter—Wil¬
son & Bayley Investment Co.
Republic Cement Corp., Prescott, Ariz.

per share. Proceeds—To exercise op¬
additional properties and for general

Price—$5

cents).

tions,

Reno

75,000 shares of common stock (par $100)
and $7,500,000 pf 20-year 3% debentures due May 1,1976,
This includes
5,000 common shares and $500,000 of
debentures to be received by Beaunit Mills, Inc. in pay¬
ment for
rights to manufacture viscose rayon yarns.
Price—At par or principal amount. Proceeds—For cap¬
ital

common "

incident to development of oil and gas properties.

Office—801 Washington Bldg.,
writer—None.

granted to employees of company. Price—To public, $2
per share. Proceeds—The first $3,000,000 will be used to
purchase or organize a legal reserve life insurance com¬
pany to be known as the "Reinsurance Company of the
South"; the remainder will be used for other corporate
purposes. Underwriter—(Luna, Matthews & Waites.

4 filed

June

Co., Inc.

15,001 shares of

(par

penses

Corp., Birmingham, Ala.

to be offered to public and 500,000
to be reserved on exercise of options to be

are

Oil

10 cents) to be offered for subscription by
stockholders. Price—$10 per share/ Proceeds—For ex¬

May 25 filed 2,985,000 shares of common stock, of which

2,485,000 shares

Oklahoma

(letter of notification)

—Moody Investment Co., Springfield, Mo.

^

Strategic Metals, Inc., Tungstonia, Nevada
Jan. 4 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—25 cents per share.
Proceeds—For
expenses incident to mining operations.
Underwriter^—

expenditures, working capital and other corporate
Underwriter—None.

R.

Reynolds & Co.. Salt Lake City, Utah.
Suburban Land Developers, Inc.,

15,000 shares of common

(letter of notification)

14

-June

Southwestern
Feb. 27

purposes.

Machine Co.

Porter-Cable

share. Proceeds—To pay off bank loan and for ex¬
pansion and working capital. Office—64 N. E. 73rd St.,
Miami, Fla. Underwriter — Frank L. Edenfield & Co.,

per

43

Thursday, June 21, 1956

if Salem-Brosius, Inc.
8 (letter of notification) 4,000 shares of common
stock par ($2.50) to be issued to William E. Brassert,

Spokane, Wash.
notification) 920 shares of 6% cumula¬
non-voting preferred stock ($100 per share) and

Feb. 2 (letter of

to be offered for subscription by stock¬
holders at rate of one new share for each 14 shares held.

June

tive

|*rice—$20 per share. Proceeds—For working capital and

together with cash not to exceed $5,600 for licenses and
formulas. Office—Arch St., Carnegie, Pa.—Underwriter

2,160 shares of common stock (par $10). Price—Of pre¬
ferred, $100 per share; and of common, $15 per share.
Proceeds—For improvements and working capital. Of¬

—None.

fice—909

(par $10)

slock

Office—1714 No. Salina

expansion program.

St., Syra¬

N. Y. Underwriter—George D. B. Bonbright & Co.,
.Rochester, N. Y.
cuse,

Federal

Prudential

Uranium Corp.
June

Securities, Inc., Denver 2, Colo.

each

and

P.

Minerals, Inc., Reno, Nev.

notification) 500,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
For mining expenses.
Office—573 Mill St., Reno, Nev.
Underwriter—Utility Investments, Inc., Reno, Nev.
& Radalite Corp.
June 8 (letter of notification) 171,000 shares of capital
stock (par 10 cents).
Price—$1.75 per share. Proceeds
—To

obligations, to buy equipment and inventory,
Business — Manufacture and
color-illuminated interchangeable letter Radalite

pay

for

and

sale of

*sign.

working capital.

Office

41-18 38th St., Long Island City, N. Y.
Brothers, New York. Offering—•

—

Underwriter—Vickers

Fxpected at end of July.

shares

of

will

market

common

bring in
mining

Proceeds—For

stock

which

sold

when

the

at

of $42,500.
Office—Bryant Bldg.,

aggregate amount

an

expenses.

Underwriter—Shaiman & Co., Denver,

Montrose, Colo.

Houston,

Corp.,

of

record

offered

July

for

and

12

the

on

shares

four

shares of

for subscription
held.

general

stock (par $1)
by common stockholders
common

basis

Price

Proceeds—To

of

one

To

—

share for
supplied by

Underwriter

purposes.

Sweet Corp.

—

mining

share for each

Colo.

if Securities Acceptance Corp.
(letter of notification) 5,000 shares of cumulative
5% preferred stork (par $25). Price—$26.25 plus accrued

Uranium

Co., Denver, Colo.
May 8 (letter of notification) 3,000,0Ct) shares of common
.stock (par one cent). Price—10 cents per share. Proceeds
—For mining expenses. Office—316 Symes Bldg., Den¬
ver, Colo. Underwriter—Carroll & Co., Denver, Colo.

April 1, 1956.
Proceeds — For working
capital. Office—304 South 18th St., Omaha, Neb. Under¬
writers
Cruttenden & Co., Chicago, 111.; Wachob-

the

Corp.. Omaha, Neb. and The First Trust Co. of

Rapp
March

(Fred P.), Inc., St. Louis, Mo.

150,000 shares of 5%% cumulative pre¬
ferred stock (par $10). Priced—To be supplied by amend¬
ment. Proceeds—To repay bank loans incurred by com¬
pany to redeem and cancel all of the issued and out¬
standing shares of 4% and 7% preferred stock; and for
♦expansion program. Underwriter—Edward D. Jones &
Co., St. Louis, Mo. Statement may be withdrawn as com¬
pany may be acquired by ACF-Wrigiey Stores, Inc.
Rare

Metals

Corp. of America, El
(7/9)
%

Texas
June

filed

15

be

offered

of

El

Paso

Natural

the

basis of

Co.

on

five shares

-each
stock

and

shares

or

common

during
-—To

a

be

one

or

Gas
one

stock.

share of

of

Rare

thereof

The

two-week

supplied

Western

and

Rare

Natural

Metals

of

Metals

Western

stock

Gas

stock

for

Natural

to

for

each

11

Co.

of

El

and

Western.

The

remainder

will

be

(6/22)

son,

Underwriter—Shear-

Hammill & Co., Beverly Hills, Calif.

Re-Mark

Chemical Co., Inc. of Belle
Glade, Fla.
(letter of notification) 86,954 shares of class A
participating preference stock (par 80 cents) to be of¬
fered for subscription by stockholders.
Price—$1.06 %

May 9




new

(par $1) be¬
stockholders

share for each

held; rights to expire on June 28. Price—$31
share. Proceeds—To repay bank loans and for capi¬
expenditures. Underwriter — Lehman Brothers, New

Togor Publications, Inc., New York
March 16

(letter of notification) 299,700 shares of com¬
Price—$1 per share. Proceeds
—For working capital and general corporate purposes.

mon
i

stock (par 10 cents).

Office—381

Fourth

Ave., New York, N. Y. Underwriter
Co., Washington, D. C.

—Federal Investment

due

and

to
/

(letter
388

Proceeds—For

house.

notification)

of

shares

stockholders.

cents).

erfield Blvd., Santa Monica, Calif.

one

4

-stock

share. Price—$6 per share. Proceeds
—For inventory and working capital. Office—1723 Clov-

Corp.

Tunacraft, Inc., Kansas City, Mo.
17 (letter of notification) $250,000 of 6% 12-year
registered subordinated sinking fund debenture notes

of

194

preferred

Price—Both

at

shares

stock

par

of
be

to

($25

per

the repairing and remodeling

of

common

offered

share).
club¬

a

Underwriter—None.

March

per

Chemical

York.

filed 62,576 shares of common stock (par $7.50)
be offered for subscription by common stockholders

Rea (J. B.) Co., Inc., Santa
Monica, Calif.
May 29 (letter of notification) 50,.000 shares of common

(par $5)

Underwriter—Columbia

stock

used

"to pay for exploration, acquisition and
development of
"mining and milling properties and for working capital.
Underwriter—White, Weld & Co., New York.

com¬

10 cents per share.
Office—750

Jan.

pay outstanding 4% short-term notes and
outstanding 3V2% and 3%% subordinated notes

Paso

—

June

July. Price
Proceeds—$1,250,000

to be used to

the then

tal

Co.

Price

^ Sistersviile Country Club, Sistersviile, W. Va.

period commencing in
amendment.

Power

cent).

six shares

1

of one new share for
an oversubscription
privilege); rights to expire on July 6, 1956. Price—$20
per share. Proceeds—To repay bank loans made for con¬
struction purposes.
Underwriters — Stone & Webster
Securities Corp. and Dean Witter & Co. (jointly).

offering is expected to be made

by

Pacific

Thiokol

per

of record June 21, 1956 at the rate
each ten shares then held
(with

common

Gas

Sierra

one

of record June 14 at the rate of

vestment Co., Tulsa, Okla.

portion thereof of El Paso

share

portion

Co.

•

(letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—
For mining expenses. Underwriter—Western States In¬

•

(par

May 28 filed 64,605 shares of capital stock
ing offered for subscription by common

30

June

and

(letter of notification) 99,990 shares of common
stock (par $1).
Price — $3 per share. Proceeds—For
working capital and general corporate purposes. Office
—Meadows
Building, Dallas, Texas.
Underwriter —
Thomas F. Neblett, Los Angeles, Calif.

Sessions

Shangrila Uranium Corp.

for

Co.;

Tex-Star Oil & Gas Corp., Dallas, Texas

New York.

1,400,000 shares of capital stock (par $1)
subscription by common stockholders

to

under

Jan. 20

Clock Co., Forestville, Conn. (6/28)
(letter of notification) 299,950 shares of common
stock.
Price—At par ($1 per share).
Proceeds — For
working capital. Underwriter — Gearhart & Otis, Inc.,

Paso,

issued

notes

Underwriters—Stone

(letter of notification) 3,000,000 shares of

stock

Equitable Bldg., Denver, Colo.
Securities Co., Denver, Colo.

per

June 11

Dec.

Agreement.

Proceeds—For mining and drilling expenses.

unit. Proceeds—For working capital, etc.
Office—257 Josephine St., Denver, Colo. Underwriter—
Intermountain Securities, Inc., Denver, Colo.
•

filed

2

mon

and three shares of preferred stock.

common

Credit

Teton Oil & Minerals Co.

May 29

preferred stock (par 50 cents) to be offered in units of
share of

Revolving

Webster Securities Corp.; White, Weld &
Halsey, Stuart & Co. Inc., all of New York.

Neb.

Security Casualty Insurance Co.
May 10 (letter of notification) 30,000 shares of common
(par 30 cents) and 90,000 shares of participating

Price—$4

of outstanding short-term

payment

—

one

-•

■

• Tennessee Gas Transmission Co. (7/17)
/
June 15 filed $30,000,000 of debentures due Jan. 1, 1977.
Price—To be supplied by amendment. Proceeds—Toward

stock
Rainbow

Coltharp Investment

mon

June 8

Lincoln,

—

Target Uranium Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of com¬
stock (par five cents).
Price—20 cents per share.
Proceeds—For mining expenses. Office — 422 Paulsen
Blag., Spokane, Wash. Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,
wash.
•:
"
■*.'

Price—$7.50 per share. Proceeds—For expenses incident
manufacturing and sales of carbon dioxide. Office—
1600 East Eleventh St., El Paso, Tex. Underwriter—None.

Lincoln, Neb.,

expenses.

common

($1 per share). Proceeds — For
Office—Continental Bank Bldg., Salt
par

March 1

vto

Bender

At

City, Utah. Underwriter
Inc., Salt Lake City, Utah.

share held.

common

—

Lake

El Paso, Texas

(letter of notification) 30,700 shares of common
stock to be offered for subscription by stockholders on
new

Price

stock.

Feb. 27

basis of 0.6158

(Utah)

May 7 (letter of notification) 300,000 shares of

White, Weld & Co., New York.
Schwartz Carbonic Co.,

Philadelphia, Pa.

writer—None.

discharge certain obligations

coroorate

Under¬

April 18 filed 229,300 shates of common stock. Price—At
the market.
Proceeds—To selling stockholders. Under¬

new
be

Sprague Ave., Spokane, Wash.

Oil Co.,

Sun

filed 298,410

be

West

writer—W. T. Anderson & Co., Inc., Spokane, Wash.

Texas

dividends from

^ Radium Hill Uranium, Inc., Montrose, Colo.
notification) an undetermined number

June 14 (letter ol
of

20

to

amendment.

Feb. 14 (letter of

*

Petroleum

(7/13)

March 21 (letter of notification) 6,000,000 shares of com¬
mon stock (par two cents).
Price—Five cents per share.
Proceeds—For mining expenses.
Underwriter—Skyline

R.

Jacinto

San

Skiatron Electronics & Television Corp.
16 filed 470.000 shares of common stock

Price

stockholders.

—

At the market. ^Proceeds

—

(par 10

To selling

Jan. 1, 1968.
Price—At par. Proceeds—To reduce
outstanding secured obligations. Underwriter—McDon¬
ald. Evans & Co., Kansas City, Mo.
• Union Chemical & Materials
Corp.
May 25 filed 200,000 shares of common stock (par $10).
Price—To be supplied
by amendment.
Proceeds—To

selling stockholders. Office—Chicago, 111. Underwriters
& Co., Bache & Co. and Reynolds & Co.,
Inc.,

—Allen

all of New York.

Underwriter—None.

Offering—Expected today (June 21).

June 4 filed 175,000 shares of common stock (par $1).
Price—To be supolied by amendment. Proceeds—To re¬

if Union Electric Co., St. Louis, Mo (7/10)
June 18 filed $40,000,000 of first mortgage bonds due
July 1, 1986. Proceeds—To repay bank loans and for

tire

construction

Southern Nevada-Rower Co.

bank

loans

writers—William

and

R.

and Hornblower &

for

(6/25)

construction

Staats

&

program.

Under¬

Co., Los Angeles, Calif.;

Weeks, New York.

program.

Underwriter—To be determined

by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Lehman Brothers and Bear, Stearns &

Number 5544^. The Commercial and Financial Chronicle

Volume 183

(jointly); Blyth & Co., Inc. and Union Securities '

Co.

Corp. (jointly); The First Boston Corp.; White, Weld &
Co. and Shields & Co. (jointly). Bids—Expected to be
received
•

July 10.

on

.

ing preferred stock on a 2-for-l basis; any shares re¬
maining will be offered to common stockholders. Price—
$25 per share., Office—Third and Market Sts., Camden,
N. J.

1

(6/27)
May 17 filed 400,000 shares of class A stock (par 10<?).
Price—$2 per share.
Proceeds—To pay indebtedness
and for exploration and development costs.
Office—
Grand Junction, Colo. Underwriter—Milton D. Blauner
& Co., Inc., New York.
Union

Inc.

Mines,

Union Tank Car Co.

(6/22)

par) to
record

the basis of one new share for each
seven
shares held; rights to expire on July 9, 1956.
Warrants are expected to be mailed on or about June 22.
Price—To be supplied by amendment.
Proceeds—For
working capital and general corporate purposes. Under¬
writers—Smith, Barney & Co., New York, and Blunt
Ellis & Simmons, Chicago, 111.
'
1956 on

22,

{ Union

stocks.

of

/ United
6

selling

Shoe Corp.

States

filed

(6/25-26)

20

common

class B

for

and

To

.

stockholders

common

share.

Maison

None.

'

—For

stockholders. Officer-Cincinnati, Ohio. Under¬
Lynch, Pierce, Fenner & Beane, New

♦:

.

shares of capi¬
Proceeds

on

a

l-for-7 basis.

Price—

Road, Cincinnati, Ohio.

Underwriter—

of

a

golf house and other improve¬

Underwriter—None.

Woods Oil &

Gas

effective Feb. 28.

Exploration Co., Salt Lake City, Utah
Feb. 13 (letter of notification) 77,875 shares of common
;stock (par 25 cents).
Price—$1 per share.
Proceeds—
For mining expenses.
Office—538 East 21st South St.,
Salt Lake City, Utah.
Underwriter — Pioneer Invest¬
ments, Salt Lake City, Utah.
Uranium

Utco
30

mon

stock, which

(letter of

Broadcasting Co.
May 25 filed 150,000 shares of class A common stock (par
$1) to be offered for account of the company; and 125,000
shares of class B
Paul

F.

notification)
are

mining

expenses.

Denver, Colo.
Bame city.
Vance
Jan.

200,000

shares of

com¬

covered by an option held by the
cents

per

share.

Ward

-

Underwriter

—

Inc., Evanston,

Underwriter—Boenning & Co., Phila¬

Wyco*»h Oil ft Uranium, Inc., Denver, Colo.
1,500,125 shares of common stock (par one
cent) to be offered only to the owners of percentages of

III.

Industries Corp.

9

(letter of notification) 12,000 shares of $1.25
cumulative preferred stock, series A (par $25) and 1,500
shares of common stock (par $1) being offered in ex¬
change for 5% cumulative preferred stock (par $100) of
The Prosperity Co. on the basis of four Ward preferred

+ Washington Natural Gas Co.
June 18 (letter of notification)
187,500 shares of com¬
mon
stock.(par 10 cents). Price—$1.25 per share. Pro¬
t

ceeds—For

working capital. Office — 217 Washington
Clarksburg, W. Va. Underwriters—Barrett Herrick & Co., Inc., New York, N. Y. and Ross, Borton &

Ave.,

Simon, Inc., Cleveland, Ohio.
--West Jersey Title & Guaranty Co.

..

•

working interests in certain oil and gas leases and to the
of certain uranium properties, and in exchange
for such working interests and properties. Price—Shares
to be valued at an arbitrary price of $4 per share. Pro¬
ceeds—To acquire properties. Underwriter—None.
owners

it Yale & Towne Manufacturing Co. (7/6-9)
June 14 filed 271,167 shares of capital stock (par $10)
to be offered for subscription by stockholders of record
July 6
shares

on the basis of one new share for each seven
held; rights to expire on July 23. Price—To be

supplied by amendment. Proceeds—For expansion pro¬
gram. Underwriter—Morgan Stanley & Co., New York.
Youngstown

22,977 shares of common stock (no par) to

exchange for common stock of Emsco Man¬

ufacturing Co. on the basis of one share of Youngstown
for each three shares of Emsco; offer will expire on
Aug. 8.
Youngstown presently owns 388,853 shares,
representing 84.94% of the 457,786 outstanding shares of
Emsco

common

stock.

Zapata Off-Shore Co.
May 22 filed $2,350,000 of 5Vz% subordinated debentures
due June 1, 1971 to be offered for subscription by com¬
mon stockholders.
Price—At 100% of principal amount.
Houston,




(6/25-29)'

be offered in

Proceeds

period of 30 days in exchange for outstand¬

Sheet & Tube Co.

June 5 filed

stock

(letter of notification) 10,000 shares of common
(par $10) of which 8,000 shares are first to be

Inc.

Airways,

the basis of three new shares for each five(with an oversubscription privilege). On
May 24, the company announced the number of shares
to be offered is expected to be reduced and the offeringdate extended.
Proceeds—For general corporate pur¬
$2.50)

on

held

shares

Underwriter—F. Eberstadt & Co., New York.

poses.

announced company plans an offering-:
bonds l?te in 1956, if market ancr
other conditions are then favorable. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, StuarL
& Co. Inc.; Shields & Co.; Merrill Lynch, Pierce, Fennel
& Beane and Kidder, Peabody & Co.
(jointly); Blytb
& Co., Inc.; The First Boston Corp. and Salomon Bros.,
& Hutzler (jointly); Lehman Brothers; White, Weld &

May
of

14

it

first

was

mortgage

Co.

-i

Carolina

& Light Co.

Power
was

(9/11)

announced company plans to issue an#

$15,000,000 of first mortgage bonds due 1986.

Under¬

competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co Inc.; Kuhn, Loeb &:
Co. and A. C. Allyn & Co. Inc. (jointly); W. C. Langley
& Co. and The First Boston Corp. (jointly); EquitableSecurities Corp.; Blyth & Co., Inc.; Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly).
writer—To be determined by

11.

Carpenter Paper Co.

reported company is understood to be»
sale of some additional common stock
Underwriter—Kidder, Peabody & Co., New York.
May

10 it

planning

was

the

Central

Illinois

Light Co.

plans to issue and sell
in 1957. Proceeds—For
construction program. Underwriter—To be determined
by
competitive bidding.
Probable bidders: Halsey,
Stuart
&
Co.
Inc.;
Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities Corp.; The First Boston,
Corp.; Harriman Ripley & Co. Inc.; Merrill Lynch,.,
Pierce, Fenner & Beane and Stone & Webster Securities

$18,000,000 first mortgage bonds

Corp.

(jointly).

Central

Illinois Light Co.

May 14 it was reported company plans to issue and sell
about 80.000 shares of cumulative preferred stock (par

$100) later this year. Proceeds — To repay bank loans)
and for new construction.
Underwriter—May be Union
Securities Corp., New
Central

York.

Illinois Public Service Co.

Luthringer, President, said the new money
the company's 1956 construction
program is estimated at about $5,000,000 and will be
obtained from the sale of securities in the second half
of this year.
The class of security to be sold and- the;
exact timing of the transaction have not been deter¬
mined. It is also possible, if favorable money conditions)
prevail at the time, that some portion of the 1957 re¬

May 16, M. S.

required

to

quirements

finance

for

new

money

second half of this year.

may

be obtained in tho

Underwriter—To be determined

(1) For bonds& Co. and A.
C. Allyn & Co. Inc. (jointly); Salomon Bros, & Hutzler*
Blyth & Co., Inc., Kidder, Peabody & Co. and Merrill.
Lynch, Pierce, Fenner & Beane (jointly); Blair & Co.
Incorporated; Equitable Securities Corp. (2) For pre¬
ferred stock—Lehman Brothers and Bear,» Stearns & Co.
(jointly); Blyth & Co., Inc. and The First Boston Corp.
(jointly); Kidder, Peabody & Co. and Union Securities
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane.
(3) For common stock—Blyth & Co., Inc., Merrill Lynch,
Pierce, Fenner & Beane and Stone & Wjebster Securities
Corp. (jointly); Glore, Forgan & Co.; The First Boston
Corp.; Lehman Brothers and Bear, Stearns & Co. (joint¬
ly). Common stock will probably be offered first for
by competitive bidding. Probable bidders:
Stuart & Co. Inc.; Kuhn, Loeb

—Halsey,
•

Jan. 23

a

per

market

Nov. 10 filed

Industries,

offered for

(par $1) for account of
controlling stockholder.

delphia, Pa.

Amos C. Sudler & Co.

shares, one-half share of Ward common stock and $1.05
in cash for each Prosperity preferred share. This offer,
which is limited to acceptance by 3,000 Prosperity pre¬
ferred shares, is alternative to the right to receive in¬
stead $100 per Prosperity preferred share.

-

stock

Office—310 First National F^nk

(letter of notification) 7,000 shares of common
stock (par one cent).
Price—$7 per share. Proceeds—
To selling stockholders.
Office — 2108 Jackson Ave.,
Evanston, 111. Underwriter—Arthur M. Krensky & Co.,
Inc., Chicago, 111.
i

A, $1.871/2

over-the-counter

Philadelphia, Pa.

Proceeds—For

24

March

common

Harron, President and

share; and of class B, at
price at time of offering.
Proceeds—For working capital and expansion. Office-

the

Corp., Denver, Colo.

underwriter." Price—10

Braniff

April 11 company authorized an offering to stockholders?
of
1,105,545 additional shares of common stock (par

May 14 it was reported company

WPFH

Price—Of class
-

July.

Bids—Scheduled for Sept.

Aug. 29 filed 400,000 shares of common stock (par $1).
Price—$5 per share.
Proceeds—To retire outstanding
obligations. Underwriters—Woolfoik & Shober and How¬
ard, Weil, Labouisse, Fredricks & Co., both of New
Orleans, La. Offering—Tentatively deferred. Statement

& Chemical Corp.

,

Bids—Expected to be received sometime

Co., New Orleans, La.

Uranium

Jan.

in

March 22 it

,

York.

Fuel

Bros.

Stone & Webster Securities Corp.; Salomon
& Hutzler; Kidder, Peabody & Co.; Harriman Rip-

Proceeds—For working capital. Office

construction

ments.

May 17 (letter of notification) 300,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—825 Broadway, Farrell, Pa. Under¬
writer—Langley-Howard, Inc., Pittsburgh, Pa.

Probable bidders: W. C. Lang-

by competitive bidding.

sell

^

& Electric Co.'

California Electric Power Co.

Wilmington Country Club, Inc., Wilmington, Del.
April 2 filed $1,500,000 of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club. Price—At par ($1,000 per debentures). Proceeds

170,000 shares of common stock (par $1).
supplied by amendment. Proceeds — To

Universal

Blackstone Valley Gas

April 30 it was reported company plans to issue 25,000
shares cumulative preferred stock (par $100). Proceeds
—To reduce bank loans. Underwriter—To be determined

be

Co., Cincinnati, Ohio
(letter of notification) 20,666 shares of class B
stock (par $1) to be offered for subscription by

per

—3500

writer—Merrill

:

it Black Hills Power & Light Co.
16 company applied to Federal Power Commission
authority to offer an aggregate of $300,000 of common
stock for subscription by its stockholders.
Proceeds—
For new construction, etc.
Underwriter—None.

June

Williamson

be

To

—

&

Co.

Corp., Salt Lake City, Utah.

$6.84

Price

proposed

Co.; Blyth & Co., Inc.; and Hemphill, Noyes

Weld &

—For mining expenses.; Office—547 East 21st South St.,
Salt Lake City, Utah.
Underwriter—Empire Securities

—$26 per share. Proceeds—To company, to be invested
in income producing securities.
Underwriters—William

Co., Chicago, 111.; and The First Boston Corp.
and Carl M. Loeb, Rhoades & Co., both of New York.

—

Price—At par (one cent per share).

tal stock.

owner

&

account

Price

White Sage Uranium Corp.
Feb. 13 (letter of notification) 15,000,000

Continental

Co.

company's

Feb.

June

following

tunity to subscribe to additional "A" stock of American,
Petrofina.
Price—$11 per share. Underwriters—White,

ley & Co. Inc.

of 510,476 shares (51.047%) and
Continental Assurance Co. 240,000 shares (24%) of the
outstanding United States Life Insurance Co. stock. Price

Blair

that

Belgium and to Canadian Petrofina the oppor¬

of

fina

61,000 shares for a selling
supplied by amendment.
Proceeds—Together with proceeds from private sale of
$1,500,000 4%% first mortgage bonds and $900,000 of
3-year unsecured 4^2% notes to a group of banks, will
be used to retire outstanding series A and series B 5%
first mortgage bonds, and for expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn.
,,,
/{/v
y;

will

Assurance

Continental

of

Inc.

announced

ley & Co.;

stockholder.

(par $2), of

650,064 shares of capital stock

Casualty is the

was

with Panhandle Oil Corp., American Petrofina,
Ltd. will offer to stockholders of Panhandle and Petro¬

White, Weld & Co., both of New York.

the

expire at 3:30 p.m.
(EDT) on July 9, 1956 (of the 100,000 shares, the Con¬
tinental companies have agreed not to exercise their
subscription warrants which total 175,006 shares).
Of
the remaining 550,064 shares which are presently out¬
standing, 310,476 shares are to be sold for the account
of Continental Casualty Co. and 239,588 shares for the
account

it

14

bentures due June 1, 1976, and 136,000 shares of common
stock (par $5). Of the latter, 75,000 are to be offered for

100,000 shares are being offered by the company
for subscription by stockholders of record June 7, 1956
at the rate of one new share for each 10 shares then
warrants

—

it American Petrofina,
June

Office—Harrison, N. Y. Underwriter—None.

• Wheland
Co., Chattanooga, Tenn. (6/26)
May 23 filed $2,000,000 of convertible subordinated de¬

Life Insurance Co. of N. Y.

subscription

Price—Around $4.25
For expansion program. Under¬
Krensky & Co., Inc., Chicago, 111.

Proceeds

writer—Arthur M.

through
common

Securities Corp. of New Mexico
(letter of notification) 50,000 shares of common
stock.
Prices—At par ($1 per share).
Proceeds—To start
a dealer or brokerage business.
Office—921 Sims Bldg.,
Albuquerque, N. M. Underwriter—None.

which

held;

and

Feb. 13

Inc.

Fiberglass Industrial Plastics,

filed

Corp.,

Western

unit; and to public, $10 per unit. Proceeds—For
capital improvements and general corporate purposes.
Office—Norwood, N. J. Underwriter—None.

1

Realty
preferred

one new

and

per

June

B

share for each 12 shares held; rights to expire
July 9. The remaining 10,000 shares are to be of¬
to employees.
Price—To be supplied by amend¬
ment. Proceeds—To repay bank loans and for construc¬
tion program.
Underwriters — The First Boston Corp.

19

United States

class

on

(letter of notification) 150,000 shares of con¬
vertible preferred stock (par $1) and 30,000 shares of
common stock
(par 10 cents) to be offered in units of
five shares of preferred stock and one share of common
stock first to stockholders.
Price—To stockholders, $9

•

Harrison-Rye

.

shares of common stock.

share.

per

reported

fered

of Texas Oil Co.f Houston, Texas

S.

of

latter's

of

was

of 150,000

Western Massachusetts Companies (6/22)
May 29 filed 102,237 shares of common stock (par $1),
of which 92,237 shares are to be offered for subscription
by common stockholders of record June 21 on the basis

shares of common
share. Proceeds—
For expenses incident to oil production. Office — San
Jacinto Building. Houston, Tex. Underwriter—Mickle &
Co., Houston, Texas.
I
U.

control

purchase

it

20

Feb.

Fla.
>
*> ,
early registration is expected,

Products Corp., Miami,

Air-Vue

it Westchester Country Club, Inc.
June 7 (letter of notification) 400 certificates of
interest,
series A. Price—$750 per certificate. Proceeds—To pur¬

Jan. 19 (letter of notification) 240,000
stock (par 10 cents). Price—$1.25 per

March

Prospective Offerings

Underwriter—None.

chase

45

merger

June 4 filed 335,714 shares of capital stock (no
be offered for subscription by stockholders of

June

(2997)

—

For

Tex.

Louis, Mo., on

general corporate purposes.

Office

—

Underwriter—G. H.rWalker & Co., St.
a best-efforts basis.

subscription by stockholders.

Continued

on

page

46

46

The Commercial and Financial

(2998)

Continued

with

an

System, Inc. (10/2)
announced company may issue and

15

it

was

reported company plans early registra¬
tion of about $25,000,000 of junior subordinated deben¬
tures.
Underwriter — Kidder, Peabody & Co. and The
was

350,000 shares;

also

proposal that

a

any

(8/28)
plans to issue and

$30,000,000 of debentures due 1981. Underwriter—
determined by competitive bidding.
Probable

sell

it

12

announced company

was

be

To

Boston Corp.

Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co. and The First Boston Corp (jointly); White, Weld

bidders:

(jointly)
Bids—Expected to be received up to 11 a.m. (EDT) on
Aug. 28. Registration—Now planned for July 16.
& Co.

Paine, Webber, Jackson & Curtis

and

• Consumers

filed

<

v

Michigan* Wisconsin Pipe Line Co. 12 re was announced company plans to issue and/
sell this Summer $25,000,000 of first mortgage bonds
due
1976.
Proceeds—For expansion program.
Under-,

issue and sell $40,000,-

construction.

Underwriter

To be determined

—

Probable bidders:
& Co. Inc.; Harriman Ripley & Co. Inc.
Boston Corp. (jointly); Morgan Stanley
Weld & Co. and Shields & Co. (jointly).
pected in early Fall.
by competitive bidding.

Halsey, Stuart
and The First
& Co.; White,
Offering—Ex¬

writers

Boston

for

and

new

April

by

Corp.; Harriman Ripley & Co. Inc.; Blyth & Co:,
Gas

Kuhn,

Feb. 20 it

Gas

Pipe Line Co. of America

-

from

investors

in

Cisler, President stated that "tenta¬
about $60,000,000 will be obtained

1956.

Internal

funds

and

bank

writer

•

White,-Weld & Coj; Lehman Brothers and Union Secu¬
(jointly).' •
^
/ >

f

Offering—Tentatively

Merrill

Co.

Nov.

it

15

that

announced

Foremost

Eastern

May 7 it
to

was

locate

develop

Mississippi, the funds to
one-third

Union

Grand

to

shopping
come

centers

from

Co.

and

of

east

the

offered to Grand Union stockholders.

balance

to

be

Office—East Pat¬

terson, N. J.

Underwriters—Morgan Stanley & Co. and
W. E. Hutton handled new financing by Grand Union
Co. in 1954.

has

Eternalite, Inc., New Orleans, La.
May 28 it was reported company plans to issue and sell
about 200,000 shares of class A stock.

$4 .50 per share.

Underwriter

—

Price

—

tional

Fairchild

8

Pennsylvania Banking & Trust Co.
the

Bank

offered

to

its

stockholders

rights to

expire
—

To

writers—Drexel

on

June

increase
&

Co.,

22.

Price

capital

—

and

$41

per

surplus.

Philadelphia, Pa.,

and

and

202,800

tion

late

in

new

1970,

v;

the

company

sell additional

common

$37,000,000.

stock.

Proceeds—To

be

Long Island Lighting Co.
April 17 it was announced company plans to issue and
sell next Fall $20,000,000 to $25,000,000 first mortgage
—

bidders:

Probable

To be determined by competitive

Halsey, Stuart & Co. Inc.;
Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly); Blair & Co., Incorporated and
W.

Louis, Mo.

C.

Baxter, Williams & Co.

(jointly); Smith, Barney & Co.

Metropolitan Edison Co.
Feb.
the

6
sale

year,

it

was

of

reported

(probably

that

*

company

first

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
&
.

Co.; Blyth

Drexel & Co.

The bias were rejected.

•

announced company plans to offer to its
rights to subscribe for additional capital

v

& Co., Inc.; Kidder, Peabody & Co. and
(jointly); The First Boston Corp.

Indiana Public Service Co.

Northern

March 13 it

was

<

reported company plans to spend about

$52,000,000 for new construction in 1956 and 1957 ($29,000,000 in 1956 and $23,000,000 in 1957). Of the total
about $30,000,000 will be obtained from new financing,
a

part of which is expected to include about $14,846,200

preference preferred stock to be offered first to com-'

Underwriters — For any preferred
ipon stockholders.
stock, Central Republic Co. Inc., Blyth & Co., Inc., and
Merrill Lynch, Pierce, Fenner & Beane
may

(jointly).

Bonds

be placed privately.

I Northern Natural Gas Co.
March
1956

12 it was reported company

construction

plans to finance its

(costing about $40,000,000)
through issuance of debt securities and treasury funds.
Underwriter—Probably Blyth & Co., Inc.
;

Northern

Jan. 19 it

later this
1986.

was

program

States

Power

Co.

announced company

year

(Minn.)

,

plans to issue and sell

$20,000,000 of first mortgage t bonds due
Underwriter

Proceeds—For construction program.

competitive bidding. Probable
Co. Inc.; Blyth & Co., Inc. and
The F.irst Boston Corp. (jointly); Merrill Lynch, Pierce,
Fenner & Beane, Kidder, Peabody & Co. and White,
Weld & Co.
(jointly); Equitable Securities Corp. and
Union Securities Corp. (jointly); Smith, Barney & Co.;
Lehman Brothers and Riter & Co. (jointly); and Glore,

^-To

is

considering
mortgage bonds later this
about $5,000,000 — in June or July).

additional

[These certificates had been pur¬
Shops, Inc., a subsidiary, on Dec. 28,'

York.

Underwriter—Cruttenden & Co., Chicago,
111.; and Smith, Hague, Nogle & Co., Detroit, Mich.

bidding.

it of $6,600,000 equip-,

due annually from Dec. 15, 1956

(following proposed 2-for-l split up to be voted:
Aug. 3). Underwriter—Morgan Stanley & Co., New

stock

plans fur¬

expansion, estimated to cost an
Underwriter—Blyth & Co., Inc.,

bonds. Underwriter

by the company up to noon (EDT)'

North American Aviation* Inc.

stockholders

Corp.,

stockholders.

about

during, October.'

June 8, it was

Neenah, Wis.

announced that

inclusive.

chased by Despatch

a

Co.* Sturgis* Mich.
May 29 it was reported company plans early registration
of 120,000 shares of common stock. Proceeds—To selling

Merrill

new preferred stock.
It is also pos¬
issue of common stock will be offered




on

Kirsch

$14,000,000 of
a

to

of

Under¬

General Public Utilities
Corp.
April 2, A. F. Tegen, President, said that the
company
plans this year to issue and sell $28,500,000 of new bonds
and

Boston

York.

New

April 18 it was announced that company plans $5,000,000
additional financing in near future. Proceeds—To
go to
Securities Investment Co., a
subsidiary. Underwriter
G. H. Walker & Co., St. Louis, Mo.

sible that

to

additional

share.

May.

General Contract Corp., St.

was

used to pay for further

$3,500,000
of common stock.
Underwriters—Paine, Webber, Jack¬
son & Curtis and Union
Securities Corp.
Registration
—Expected

stockholders

First

yet been determined, except it is not the present inten-

-

April 2 it was reported company plans to issue and
$15,000,000 of debentures due in 1966, $10,000,000
1971

common

received

5 for the purchase from

ment trust certificates,

ther financing, the nature and extent of which has not

Acceptance Corp.

capital debentures due in

were

June

upon

sell

of

to

bonds

mortgage

first

Probable bidders:

New York Central RR.

Bids

(probably not until first

Underwriter—The

announced company plans to issue and sell

of

Underwriters—To be determined by competi-:

1956.

j.955.]

stock

basis.

Nov. 22 it

Lynch, Pierce, Fenner & Beane and Smith, Barney &
Co., both of New York City.
General

|
on

Light Co.

Kimberly-Clark Corp.*

near

additional shares of capital stock (par $10) on the basis
of one new share for each 10 shares held as of
May 28;

Proceeds

&

was

Halsey, Stuart & Co.:
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co.-. (jointly);,•
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

reported company may soon offer addi¬

was

England Power Co.

tive bidding.

New York.

that

Underwriter—Glore, Forgan & Co., New York.

First

determined

Power

common

l-for-10

future.

been

yet

Kansas

Vickers Brothers, New

Camera & Instrument Corp.
11, John H. Clough, President, announced
working capital financing will be required in the

of

stockholders

March 21 it

York.

June

not

Struthers & Co. (jointly); Lehman Brothers;.

$10,000,000

half of 1957).

Around

June

1
New
Jan. 3 it

—

the

offering of stock,

an

1

rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Co. and White, Weld & Co. (jointly).
;

City Power & Light Co.
approved a proposal increasing
bonded indebtedness of the company by $20,000,000. Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp. and Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp. (jointly); Lehman Brothers
and Bear, Stearns & Co. (jointly). Amount and timing

announced this company has been formed

and

its

The First Boston Corp.; Equitable Securities Corp.; Mer¬

was

24

merge

determined by competitive bidding.

May be

—

and Wood,

Lynch, Pierce, Fenner & Beane (jointly); Blair
Incorporated.

Kansas

April

Shopping Centers, Inc.

'> *

.

plans to

Probable bidders:,Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities Corp.

announced that the company is arranging
$100,000,000 from institutional investors to
finance its new major expansion program to involve ap¬
proximately $113,000,000. Underwriter—The First Bos¬
ton Corp., New York.

Dairies, Inc.
Intends at a future date to give its stockholders the right
to purchase its Dolly Madison stock.
UnderwriterAllen & Co., New York.
was

writer

borrow

to

Dolly Madison International Foods Ltd.

company

.

bidders:

May 21 it

pected in October.

announced

was

Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,0Q0>
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬

-

Kaiser Steel Corp.

ex¬

it

3

subsidiaries,- Essex County Electric Co., Lowell Electric *

Halsey, Stuart & Co. Inc.; Lehman
Brothers; White, Weld & Co.; Kidder* Peabody & Co.;
Union Securities Corp., Salomon Bros. & Hutzler and
&

England Electric System

New

Jan.

in July 1956,
first mortgage bonds. Under¬
determined by competitive bidding.

be

sellj

rities Corp.

$9,000,000

To

—

Probable

bor¬

rowings will probably provide for the remainder of th6
$95,000,000 necessary this year to carry forward the com¬
pany's program of expansion of facilities." Financing
may be in form of 15-year debentures to common stock¬
holders. Underwriters—None.

sell

and

v

reported company plans to issue and

was

,

Jersey Central Power & Light Co.
Feb. 6 it was reported
company may
issue

and

ding, the following may bid: Halsey, Stuart & Co. Inc.;

Corp.
March 9, Leslie M. Cassidy, Chairman, said the corpora¬
tion is studying possibilities for expansion that could
require financing, adding that the management had no
definite plan for the issuance of additional stock other
than those required for the two-for-one split but "the
situation could change."

Detroit Edison Co.

in)

late this Spring $35,000,000 of first mortgage bonds due :
1976.
Underwriter—If determined by competitive bid¬

..

sary

Feb. 20, Walker L.
tive plans are that

that it is estimated

Harriman Ripley & Co. Inc.;

& Co.;

Loeb

Natural

(the method and amount has not yet been deter¬

Johns-Manville

Underwriters—Morgan Stanley & Co. and Clark,
Dodge & Co.

Corp.

The First Boston Corp.

mined). Proceeds—For expansion program. Underwriter

it appears that some additional financing may be neces¬

the.

the current year and to be completed in mid-1959 will,
amount to a minimum of $200,000,000. Underwriters—

.

Crane Co., Chicago, III.
F. F. Elliott, President, on March 18 stated in part: "To
meet the cost of present proposed capital expenditures,"

in

Previous offer to stockholders was'

the company announced

12

increase

that total construction expenditures planned to start

Inland Steel Co.

—Kuhn, Loeb & Co., New York.

|
an

by Kalman & Co., St. Paul, Minn.

National Steel

April 26, Joseph L. Block, President, disclosed company
will seek additional financing through sale of equity
stock

*

stock (par $1) from 1,700,000 shares

common

underwritten

March

Co.
approved

stockholders

16

authorized

tration—Planned for June 27.

Copeland Refrigeration Corp. (7/23-27)
May 10 it was reported company plans to issue and
sell 100,000 shares of common stock. Proceeds—For ex¬
pansion program. Underwriter—Baker, Simonds & Co.,
Detroit, Mich. Offering — Expected last week in July.
Registration—Planned for latter part of June.

determined by competitive bidding. •
Halsey, Stuart & Co. Inc.; The First *

tc£ 2,500,000 shares.

-

Bids—Expected to be received oil July 24. Regis¬

Corp.

be

bidders:

Minneapolis

issue $20,000,000
Proceeds—To repay
construction.
Underwriter—

company may

bonds due 1986.

determined

To

—

Probable

Inc.

competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.: The First Boston
Corp.: White, Weld & Co. and Merrill Lynch, Pierce,
Fenner
& Beane
(jointly); Harriman, Ripley & Co.
Inc. and Glore, Forgan & Co. (jointly); Union Securities

Proceeds—For reduction of bank loans and

1, 1986.

new

loans

:

June

(7/24)

reported

was

mortgage

be

To

mortgage bonds to mature not earlier than

000 of first

first

bank

application with the Michigan

an

P. U. Commission for authority to
June

of

Power Co.

18 it

June

Power Co.

June 19 company

Illinois

e

"

"

Michigan Bell Telephone Co.
/
April' 19 company applied to the Michigan P. S. Com¬
mission for permission to issue and sell $30,000,000 of /
40-year debentures later this year. Proceeds—For con- •'
struction program. Underwriter—To be determined by *
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.

■

with the FPC for permission to construct a 961 mile
pipeline system to cost $105,836,000. Underwriters—May
be Blyth & Co., Inc., San Francisco, Calif.; and Scharff
& Jones, Inc., New Orleans, La.
v
"L

June

(jointly); The First 4

Peabody & Co. and Drexel & Co.

-

Houston Texas Gas /& Oil Corp., Houston, Texas
Feb. 29 it was announced an application has been filed

Gas Co.

Consolidated Natural

for

to

.

both of New York.

First Boston Corp.,

a proposal to increase
2,500,000 from- 1,750,000
1,000,000

approved
stock

authorized preference stock to

debentures may include a privilege to convert

Corp.

Credit

the

issue of
into com¬
mon stock and permit the company to issue warrants to
purchase common stock, provided the total that may be
outstanding at any one time does not exceed 600,000
shares. [The company expects to issue 23,000 additional
preference shares^—5,000 for acquiring stock and prop¬
erty and 18,000 for cash. Having completed long-term
borrowing negotiations of $30,000,000 from insurance
companies, the company expects to sell not more than
$15,000,000 in debentures.] Underwriter—Kidder, Peabody & Co., New York.

«

sell

$30,000,000 of debentures. Underwriter — To be deter¬
competitive bidding. Probable bidders: Halsey.
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expect¬
ed to be received on Oct. 2.
Commercial

common

shares and

mined by

March 12 it

stockholders

24

authorized
from

Columbia Gas

or

General Tire & Rubber Co.
Feb.

system to cost $68,251,000. Underwriters—May be Leh¬
man Brothers and Allen & Co., both of New York.

Feb.

April

struction program.

Corp., Houston, Texas
application has been filed
the FPC for construction of a 565.7 mile pipeline
announced

was

-

Metropolitan Edison Co.
■
'
16 it was reported company may issue in June ,
July, depending
upon
market conditions, about,
$5,000,000 of preferred stock (in addition to about $5,000,- :
000 of bonds).
Underwriter — For preferred stock also
to be determined by competitive bidding. Probable bidders:
Smith, Barney & Co. and Goldman, Sachs & Co. '
(jointly); Salomon Bros. & Hutzler; Harriman Ripley & Co. Inc. and Union Securities Corp. (jointly); Kidder, »

stockholders before April,
and for con¬

common

Proceeds—To repay bank loans, etc.,

1957.

Transmission

Coastal
Feb. 29 it

subscription by

for

from page 45

Chronicle... Thursday, June 21, 1956

be

determined

by

bidders: Halsey Stuart &

Forgan & Co.

Volume 183

Number 5544

...

The Commercial and Financial Chronicle

4?

(2999)
Norwalk Truck Lines,

June 5 it
for

was

ailiounced

Inc.

i,

company

authority

convertible

\

Public Service Electric & Gas Co.

1

has applied tb-Jne fCC
$2,000,000 10-yed1r"5%

to issue and sell
debentures (to be convertible

into class B
stock, par $1, beginning June 15, 1957). pro¬
ceeds—About $1,000,000 for working capital and the r£-

"common

of the new securities to

the time of sale
determined. Proceeds—To
help finance
construction program. Underwriters—For
any debenture
bonds
may be determined

.

Co.

'pany has filed an application with the Federal Power
:
Commission for a certificate of necessity to build a
1364-mile submarine gas pipeline off-shore the coast of
'Louisiana from the Sabine River to the Gulf Coast of*
*

Rochester Gas & Electric
Corp.
16 stockholders approved a proposal

the

the State of Mississippi. It is estimated that this
gathertag system will cost approximately $150,000,000. Type
of financing has not yet been
determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities
(probably
notes, convertible into preferred stock at maturity, and
common

stock).

New York.

Electric

jMay 17 stockholders

voted

(probably first

to

the

stockholders)

'•

sold
were

C.

R.

Underwriter—Kidder, Peabody
Southern

President, announced that
stock (par $1) are to be
subscription contracts which

common

with

into at

interim notes and borrowings from
banks, will be used
to construction program.
Underwriters—White, Weld &
I Co.; Kidder, Peabody &
Co.; The Dominion Securities
Corp.; and Union Securities Corp.. Registration —* Ex¬
pected soon..

ties.

(8/21)

8:3.0

(PDT)

Aug. 21.

on

July 27.

,

V

-

.

•

Expected-

oversubscription

,

shares to

;
f

common

preferred stockholders

on

a

$5

1-i'or-

($100

share).

per

Proceeds

To

—

Pan Cuba Oil & Metals

Corp, (Del.);-.:
..•*.-?»
April 9, Walter E. Seibert, President, announced " that

privilege).

of

the

;

Stevens :(J.

for

Office

the

of

P.)

&

Co.,

Pension

x.

funds

the

and

other

fidu¬

the weight
to the demand.

wide

a

As

Issue

expected

medium wherever it is allowed to

-

been

operate naturally judging by some
developments in the issue markets

often

along

-

comes

particular

a

and demand

develops in

American

Tele¬

surprising

And the matter of price appears
to matter little when the
mer¬

A

case

offered
in

has

point

is

the

.

...

bids

ot/*Buyers

'

•

-

■

»

' -n1

-

v

i

is

been

that

parent

the

$toek

fered would encohhter
demand.

*>'

it

carried

expected

being

of¬

on

satisfactory

the " stock

was

not

appeal to the runof-the-mine investor. But institu¬
tions

came

large

one

next
of

acting

month.

This stock represents part of the
alien assets seized by the U. S.

Even

the

which

have

cool

new

ings

to

over

a

with

orders

insurance
been

in

a

of

over

it Washington Gas Light Co.
June

7

it

proposed

was

announced

as

offer¬

things that has
bit of

a

it

a

appears

under
new

;
Washington Natural Gas Co.
May 23 it was reported company plans to issue and sell
about 187,500 shares of common stock.
Underwriterr—
Barrett Herrick & Co., New York.

"

tion

Edison

fund

Household

out

quickly with foreign demand

reported

on

substantial scale.

a

Combustion

Engineering

also

reported

in

and

satisfactory

little

by

the

were

Inc.'s

aided

conversion

the

a

better

tone

re¬

around

place though it ap¬
peared slow to develop into actual
on

broad scale.

a

be

wraps

equities

to

spite of the lack
in the secondary

markets.

Reception
This week's

comnaratively
spell,

were

of

which

day, met

new

came

a

to

Is

•

On Recent Flotations
Editor, Commercial and Financial

that

is

that

callable

that

yester¬

rather good reception.

was

of

made

an

Finance

debentures

for

the

issue

five

are

would

have- had

initial

had

reception
period

a

non-«

I believe

years.

Commonwealth

Edison
much

a

if it

of

had

non-call-

Vice-PresidentThe
Life
300

Mutual

Benefit

Insurance

/

Company,

Broadway,

Newark

with interest,
the column: "Our Reporter's Re¬
port" which is very interesting

issues, the bulk

Household

Corporation

June

Chronicle:

the

point of view of

WM. L. PHILLIPS,

Investor Comments

In

as

ability.

An Institutional

always

debentures

for the contrast

investor, one very
important point was omitted, and

also

I

the

4, N. J.

14,

f

4

1

1956

read,

Harry W. Peters Opens
GRAND

JUNCTION,

and informative.

Good

market

From

reason

institutional

better

a

while

seem

on

in the way the two issues sold.

no

market

demand

Common¬

out

,

bit

and

Company
first
mortgage bonds, which apparently
stressed
the
yield and sinking
being the

feature

Generally speaking dealers
ported

debentures

re¬

well

moving

manner

attached.

"brake"

to

to finance

proposes

cost about

—

out well in

enthusiasm

company

construction of pipeline in Virginia to
$3,380,000 from funds generated by operations,
sale of common stock and
temporary bank borrowings.
Underwriter
The First Boston Corp., New
York; and
Johnston, Lemon & Co., Washington, D. C.
new

wealth

of-the debt securities market

move

of

the

again

being a bit
offerings of

companies,

corporate debt offer¬

lengthy

reported offering is expected in near
70,000 shares of common stock. Under¬
writer—Granbery, Marache & Co., New York. Registra¬
tion—Expected soon.
future

Presum¬

way.

in

Products, Inc., New York

was

The Commonwealth of Australia's

recent emissions.

Once

*

•

to

the

stock.




as

early

ably the proximity of this

Even before the sale to bankersing
been formalized it -was
ap-r

pur-

{Offering of 79,213 shares of Rohm
& Haas common

•

Naturally with-n |)rice tag such

right appeal for prospective
chasers.

*.

it

-•

had

manner.

being

'

if

4

necessary- sold without prior rights to stock¬
holders, is expected to be up for

case

t

♦

"
"

<

chandise

'

.-%»»'i
.

of corporate debt
securities appears to be ample for
I current
demand.
But
every
so
situation

by^the

Rush

these days.
The supply

*

cleared

-

agencies.

Food

4

ceived

Hibernates

enterprise, several banking groups, phone &
Telegraph Co. sent its
were in the bidding and
competi¬ big issue,
$250,000,000 of 34-year
tion was keen.
<.)
debentures into registration with
The successful iroup put a price the Securities and
Exchange Com¬
tag of $440 a share on the stock- mission this week.
for reoffering
This
aft^r- the sale had
offering, which will be

ruling force and guiding

Vita
June

debentures

ATT

(9/25)

was

$25 million of. dollar bonds went

&

V

ciary institutions added
of their orders

realizing

the Rohm

Underwriter—Kuhn, Loeb & Co., New

Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Co., American Securities Corp. and Wertheim & Co.
(jointly); Salomon Bros. & Hutzler; Stone & Webster
Securities Corp.; White, Weld & Co.; Union Securities
Corp. Bids—To be opened on Sept. 25.

Underwriter—Goldman, Sachs

up

maintenance of its business and properties and for

Probable bidders:

-

-

remaink

vote

&

Underwriter—

Inc.

Haas Co. shares.

Alien

demand which would be found for1
the shares of this former German*

demand

will

announced company plans to issue and sell
of first and
refunding
mortgage bonds.
Underwriter—To be determined by competitive bidding.

Southwestern Securities

—

seeking to pick

ac-;

"

Presumably

stockholders

$20,000,000

Proceeds—To repay short-term bank
loans and for gen¬

Property, by the Attorney General
of the U. S.

Underwriters

eral, corporate
purposes.
& Co., New York.

for sale,

up

that

Virginia Electric & Power Co.

common

May 28 it was announced company plans to offer
pub¬
licly sometime this summer $30,000,000 of
debentures.

Government during World War II

put

Co.

amending the company's certificate of organ¬
permitting it to issue convertible debentures,

Feb. 6 it

Porter-Stacy Co., Houston, Tex.
/

"

and

Rubber

announced

was

York.

Underwriter—None.

distribute syndicated films for
television.

'

company will soon file a registration statement with the
SEC preparatory to an
equity offering planned to take
:
place later this year. Business—To
explore, drill and
«operate - oil, gas and mineral
properties in "the United
States, Cuba and Canada. Office—120 Broadway. New
•York, N. Y. ■
:

The law of supply and

For

company plans to issue
stock. Price—Around

1,000,000 shares of
share.

per

,

count

States

it
on

working capital.

Jan.

writer—None.

.

June 29

Spencer Telefilm Corp.,
Beaumont, Texas
16 it was announced
company plans to offer pub¬
licly to Texas residents 75,000 shares of
capital stock.
Price—$1.50 per share. Business—To
produce, sell and

repay

construction. Under¬

new

united

May 25

Co., Dallas, Tex.; and Mountain States Securities
Corp.,
Denver, Colo.

American Telephone &
Telegraph Co. owns an
aggregate of 89.6% of the preferred and common stock.

temporary borrowings and for

—

Conn.

Southwestern Resources, Inc.
May 15 it was reported that the
and sell

6 basis.

-Price—At par
t

and

on approving the proposed
financing. Pro¬
Together with short term bank loans, will be
used to complete the 1956 to 1958 construction
program.
Underwriter — Chas. W. Scrant.on & Co., New Haven,

ceeds

■

Pacific Telephone &
Telegraph Co.
May 31 company sought authority from the California
P. U. Commission to offer
1,562,267 additional common

'

vote June 28

Southern Union Gas Co.
April 19 it was announced
company is considering is¬
suance and sale to
stockholders later this year of someadditional common stock on a
pro rata basis (with an

to be received up to

Registration

Co.,

Haven, Conn.
May 29, William C. Bell, President, announced that the
company proposes to issue not more than $12,500,000 of
cumulative preferred stock (par $100), out of a proposed
authorized issue of $20,000,000.
The stockholders will

Counties

was

Equitable Securities Corp. and Drexel & Co.
(jointly);
Lehman Brothers; Harriman
Ripley & Co. Inc. and Gold¬
man, Sachs & Co. (jointly); Blyth &
Co., Inc. and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co.

4

$78,000,000 of 32-year

Bids—Tentatively scheduled

a.m.

Bell

which would first be offered for subscription
by common
stockholders. It is estimated that $50,000,000 to
$60,000,000 of new funds will probably be
required. Proceeds—

Inc.; Morgan Stanleys

& Co.

R.

the Coosa River in Alabama.
Underwriter—May be
determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Union Securities

debentures due Aug. 15, 1988. Proceeds—To reduce tem¬
borrowings and for capital expenditures. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
.

E.

—

ization

porary

,

Underwriter

United Illuminating Co., New

Corp.,

Co.

development.

Kansas City, Mo.

Proceeds—Together with other funds, to construct
a $150,000,000 steam electric
generating plant

on

sought approval of the California

P. U. Commission to issue and sell

mineral

& Co., New York.

and operate

.

Telephone & Telegraph
company

U-Kan Minerals, Inc.
(Kansas)
May 28 it was reported company plans issue and sale of
600,000 shares of common stock. Proceeds—For oil and

Southern

v

,

May 31 the

loan.

Electric Generating Co.
May 18, it was announced that this
company, 50% owned
by Alabama Power Co. and 50%
by Georgia Power Co.,
subsidiaries of Southern
Co., plans to issue debt securi¬

April of 1955.

Pacific

that it

Gas Co. of California
reported company may in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.;
White, Weld & Co.; Merrill Lynch, Pierce,
Fenner & Beane.

Jan. 30 it

Williams,

connection

entered

McMeekin, President, announced

expected that

program.
The company proposes to obtain a
part
of its new
money requirements from the sale of
$5,000,000 of preferred stock and the balance
from the
private sale of $5,000,000
principal amount of bonds.

the time of the original
financing
Price—$10 per share. Proceeds—To¬
gether with funds from private sale of $35,000,000 additional first mortgage
bonds, and $10,000,000 of 5.6%

in

r

20

in

South Carolina Electric & Gas
Co.

tion

Merrill

—

quarter of 1956.
Proceeds—For expansion pro*
Underwriters—Stone & Webster Securities Corp.,

White, Weld & Co. and Halsey, Stuart & Co. Inc.

S.

$10,000,000 of new money will be re¬
quired in connection with the
company's 1956 construc¬

Pacific Northwest Pipeline Corp.
about 280,000 shares of

Corp., New

Transcontinental Gas Pipe Line Corp.
April 17, Tom P. Walker, President, announced that ne¬
gotiations had been completed for the sale of $40,000,000
first mortgage pipe line bonds in May and
$20,000,000 of
debentures in November. May be placed privately. Pro¬
ceeds—To retire presently outstanding $60,000,000 bank

is

(jointly); Smith, Barney
Co.; Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.

i March

Boston

fourth

March 9, S. C.

by competitive bidding. Probable bidbers: Merrill Lynch, Pierce, Fenner & Beane and
White,
! Weld & Co. (jointly); The First Boston
Corp.; Lehman
.Brothers and Blyth & Co., Inc.

•

First

gram.

:

authorized

Lynch, Pierce, Fenner & Beane. (2) For preferred stock,

&

The

—

Co.

May 10, Gardiner Symonds, President, announced that
company plans to sell $30,000,000 of debentures in July
(see a preceding column), and about $50,000,000 of mort*
gage bonds late in the third quarter or early in the

Underwriter—The First Boston Corp., New York.

increase

to be determined

"

increase

applied to the New
Commission for authority to issue and sell
40,000 shares of cumulative preferred stock
(par $100).

5,000,000 shares. Company has no immediate plan to do
any equity financing.
Underwriters—(1) for any com¬
stock

Underwriter

sell

York P.

preferred stock from 240,000 shares to 500,000 shares and
the authorized common stock from
3,681,000 shares to

mon

1956.

issue and

may

Rochester Telephone
Corp.
May 28 it was reported company has

Co.

to

Tennessee Gas Transmission

to

Underwriter^

at competitive bidding.
Probable bidders:
Halsey, Stuart & Co.; Inc.; Stone & Webster Securities
Corp.; Goldman. Sachs & Co.; Kidder, Peabody & Co,

authorized

York,

Under writei^Salomon Bros. & Hutzler,

Oklahoma Gas &

^

in

June.

determined

preferred stock by 100,000 shares
(par
$100), of which it is planned to issue 50,000 shares later

,

in

around Oct. ,1, $10,000,000 of first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be

(jointly).

May

late

stock

common

Tampa Electric Co. (10/1)
18 it was reported company

by competitive bidding;
probable bidders include
Halsey, Stuart & Co. Inc.; The
First Boston Corp.;
Kuhn,- Loeb & Co., and Lehman
Brothers (jointly); Morgan
Stanley & Co. and Drexel &

Offshore Gathering Corp., Houston, Texas
'Nov. 18 David C. Bintliff, President, announced:.com-

of

Feb.

—

Columbus, Ohio.
~

'

shares

Straus, Blosser & McDowell, Chicago, 111.
sell some additional stock (probably at the end of
May),

be issued and

have not been

imainder to be advanced to Shirks Motor Express
Corpr,
;Lancaster, Pa.
Underwriter —-The Ohio Company,
;

Super-Crete, Ltd., Boniface, Manitoba, Canada
May 14 it was reported company plans sale of 255,000

April 16, Lyle McDonald, Chairman, estimated that re¬
quirements for new capital this year will be
approxi¬
mately $80,000,000 to $85,000,000. The types and amounts

June

7 issue, comment
comparing the flotation

Household

Finance

Corpora¬

Harry
a

W.

Peters js

securities

Colo.

engaging

business from

at 411 Main Street.

—

in

offices

-13

The Commercial and Financial Chronicle... Thursday, June 21,

(3000)

Fund

Staff

Joins Goodbody

Fitzsimmons,

Analyst

nounced.

(Special to The Financial Chronicle),

Mass.

BOSTON,

Mutual Funds

A.

Gerald

—

Doyle has become affiliated with
Goodbody & Co., 140 Federal St.

*

,

Pollacchi

Mass. — Joseph Sannow
with Palmer, Pol¬

S.E.C.

BOSTON,
is

foro

lacchi

Co., 84 State Street.

&

the

(Special to The Financial Chronicle)

Trask & Co., 50 Con¬

i

FOR

INVESTING

National Dividend Series is

a

bal¬

mutual investment fund,

primary objective of which is
provide an investment in a di¬

the

versified group of bonds, preferred
and common stocks selected be¬
of relatively high current

cause

yield possibilities in relation to
the risk involved. Prospectus and
other information may be ob¬
tained from your investment
dealer

'■

.

120

■

the

and

1933

described

tracts

In¬

Securities

an¬

contracts."
VALIC
is
a
corporation organized under the
of Columbia

District

of the

pertaining to the incorporation of
insurance companies and has its

in

business

of

place

principal

Washington, D. C.
The Commission has been study¬

&

Established 1930

contracts for

number of months.

a

study has been in line with
Commission's
responsibility,

This

the

Securities Act,

under the

publicly offered.

has related also to the
Commission's responsibility to reg¬
The study

Company Act for

the

Investment

the

protection of investors in such
While proposals have

securities.

Incorporated

the

"variable

so-called

of

suance

for

elsewhere

made

been

is¬
an¬

of

jMe

fixed sum periodically as

able

with

conveniences

the

them;

is¬

alleges

that

available

in

the

the

definition
contained

offer

contracts

is

The Parker Corporation

or

"security"

the Securities

that

interest

profit-sharing

within

the

in

from
dealer.

of
a

of

term

contract

investment contract

certificate

a

participation

in

equity

The complaint
VALIC

the

an

other

and

of

1933

sale

of

Act

and

subject to

the

and

such

and

regis¬

to

meet

a

on

outside

the

of

Atlantic

in

that VALIC, or in the alterna¬
the

funds

which

it

adminis¬

The

look

the

term

recorder which it "hopes to
in service by mid-summer."
The publication added that CBS

using

for

the

S.

other for the short-

bus

the

of

round

12

Racks

Avenue.

in

"the long-term

at CBS'

look does not at¬
where we will be

problem is

us

much

forecast.

O.

L.

Thomas

the

&

Co., members yond

Baltimore
Stock Exchange, ,with offices at
1301
Atlantic AVenue,
is spon¬
soring the Wellington advertise¬
Philadelphia

-

six

forecast

we

than

an

attempt

than

to

because

at

the

$10,000 more

Set

Hearings
Variable

on

Annuity Bills
Final

|

hearings on the
annuity legislation now

public

variable

pending in the New Jersey State
legislature will be heard tomor¬
row from 11 a.m. to 4:30 p.m. The

relatively

of

no more

live show."

a

Final

to

relative

variables

the average, cost

on

to

position

fruitless

should cost

live program. A TV show
on
motion picture film,

a

one

difficult

becomes

{/

recorded

are

months

trend

our

orders

Hollywood TV City.

TV program

and 'one

more

more

What

our

Howard

revealed

black-and-white

Quoting Mr. Meighan, the pub¬
lication
said:
"Ar tape-recorded

attempting
this and other buses operated by
to do is pinpoint with a fair de¬
the Atlantic City Transportation
gree of accuracy the fluctuation
Company carry self-addressed around the long-term trend for
Wellington literature request a period of six months or so in
cards to tie-in with the display.
the future.
If we get much be¬

of

President

-

has

more

installation in the Spring of 1957"

3913,

makes

seven

Ampex video tape recorders "for

problem.

The Wellington official said that

say

Meighan

for

specifically at any given point in
serving At¬ the future, but considers rather
lantic Avenue, this resort's main the path that we are following be¬
thoroughfare, now carries a 37 Vfe- cause of certain basic forces at
square foot color display adver¬ work. It is, if you will, the trends
tisement
of
Wellington
Fund's that shape our future.
oval trademark along its left side.
"The short-term
number

Vice

Western

long-term

cently.
Bus

Fund.

CBS network,

put

Mr.

national product, have de¬
two
types
of
business

and

of

pex

Philadelphia,

forecasts—one

issue

June

the publica¬
tion states, has three pre-produc¬
tion prototype models of the Am-

meeting of the Ro¬

a

tape-recorded

at

summer,

Television-Electronics

higher

wages.

of

look

this

according
"Keeping
Up," pubilshed by the $123 million
the

to

consumer

the

good

programs

doing business, especially

City re¬ tempt to

many

which have already passed
Assembly, will permit
ment.
ton
New Jersey insurance companies
offer
the public
an
annuity
For the short-term, Mr. Mennis to
The securities firm timed the
Wellington advertisement to co¬ indicated that the economy prob¬ backed by common stock invest¬
incide with the start of the sum¬ ably would .follow a path of rela¬ ments rather than by the historic
mer
season
when
Atlantic City tive stability, with a moderate dip mortgage and bond holdings, con¬
in
annuity portfolios, to
in the third quarter* of this year tained
plays host to millions of vaca¬
and in the latter part of the year date.
tioners. Luther Thomas, head of
an
The
upward, movement extending
legislation, sponsored by
L. O. Thomas & Co., figures that into 1957.
the Prudential Insurance Co. of
in

addition

population

the

to

of

city's

mately 15,000,000 visitors
each

resort

on

year

normal

approxi¬

100,000

come

and

to

either

Atlantic Avenue

...

tive

first

enjoy

veloped

city bus or street car made its

appearance

offset

to

Taped Fiim

Television viewers will get their

spending

increased

and

Club

gross

of

advertisement

funds

mutual

shop or stroll

is

to

Mennis said that economists,

CITY, N. J.—What
to be the first color

^'spectacular"

this

demand

tary

ATLANTIC

other

Boston, Mass.

time

tremendous

Addressing

Wellington Fund
Travels by Bu

the

allegation of the complaint

At

market

comforts of life

leisure

the

higher

believed

funds

T V Viewers to Look

creation

costs of

tration provisions of that Act. An¬

Berkeley Street

the

demand for the

enormous

an

and

in

middle-income

vast

a

distribution

income

n

resulted

ties Act of 1933.

is

,

certificates

instalment

the

of business for modern equipment

sums

invested

fund

stocks

agreement

200

periodic

type investments.

investment

an¬

contracts

depending upon the value of

underlying

an

each

is

the

VALIC,

by

common

on

your

conventional

of

Under

varying in amount would be pay¬

principal^

fund

annuity"

in

35%

VALIC of the registration
requirements of the Investment
Company Act and of the Securi¬
ity to

miles

"variable

its

issuers

and

prospectus

of

i

has

is

constitutes

A

order from various
substantive provisions of the In¬
vestment Company
Act of 1940
but is restricted to the applicabil¬
by

empted

that

concerns

nuities.

fnnd

risk of

ex¬

olution

that

to pay a

Incorporated
Income Fund

undue

be

should

to

as

about

that

contracts, VALIC is not obligated

and income.

mutual

questions

VALIC

whether

does

action

Commission's

involve

-

purchased by individual investors
years," Edmund A. Menduring May amounted to $58,434,nis,
senior
security
analyst of 056. These certificates were issued
Welling Fund, stated. "■
by Investors Syndicate of Ameri¬
Among the factors listed by Mr. ca, Inc. and Investors Syndicate
Mennis for a larger gross national Title & Guaranty Company, New
product a decade from now were: York, both IDS subsidiaries.
population growth; the great rev¬

trips

sued

A

Act.
The

.

10

daily, covering approximately 150

Under

Tt«»l Gf securities
fu™ecuril;es

ul
cap"

is subject to the
provisions
of
that

ministered by it,

not

an¬

'

.

Output

increase

next

The

to the Commission

presented

are

H

contained in the In¬
Company Act of 1940
and that VALIC, or the funds ad-tit.
vestment

registration

/.

investment

mutual

four

amount

will

nuities," this is the only case thus
for its consideration.

portfolio

"investment

an

far

Investors
A

of

company"

requiring prior

by

investors,

to pro¬

ulate investment companies under
—

within

securities

in

trading

definition

utes that it administers to

curities that are

York 5, New York

investing, reinvesting

of

the applicability of the stat¬
VALIC's

ing

registration of, and the delivery
of a prospectus containing mate¬
rial
information
concerning se¬

Corporation

Broadway, New

"variable

as

nuity

tect

National

.

of

Act

or;

Research
...

curities

laws

INCOME?

to

America, Inc.
violating
the
registration provisions of the Se¬
Act of 1940, in
connection with the sale of con¬

r

anced

Insur¬

vestment Company

Street.

gress

and

from

("VALIC")

business

the

the

is primarily engaged in

ters,

for

Court

of

Company

ance

Mass.—Pendleton C.
has been added to the staff

of Spencer

District

19

the

complaint in

a

States

Variable Annuity Life

the

BOSTON,
Keiler

June

the District of Columbia to enjoin

Spencer Trask

Joins

of

filing

Exchange

announced

Commission

United

Enjoin Annuity Sale

to
and

Securities

The

,

distributed by IDS
totaled $32,568,410. The funds, all
affiliates
of
IDS, are Investors
Gross
national
product,
the Mutual,
Inc.,
Investors
Stock
thermometer used by economists
Fund,
Inc.,
Investors
Selective
to measure the nation's economic
Fund, Inc., and Investors Group
health, is currently at record lev¬ Canadian Fund Ltd.
,;
els around $400 billion "and there
Total maturity value of faceis a reasonable expectation that it

For Our

(Special to The Financial Chronicle)

•,

managed and

By ROBERT R. RICH

With Palmer,

%

Gross dollar volume of sales of

Sees 35% Gain

i>

V* *

*

President,

>.

„

1956

sometime during their stay in the

city.

*

-

bills,

work," the Welling¬
analyst stated.

The

things

to

watch

are

con¬

durables —
automobiles,
appliances
and
homes—and business spending for
spending

sumer

for

plant, equipment and inventories.
Any
significant
drop
in
these
areas
would require a modifica¬
tion of his relatively
optimistic
short-term

forecast,

Mr.

State

the

America, second-largest insurance
company
in the United
States,
will be the subject of opinion at
the hearings by G. Keith Funston,
President,

Mennis

said.

New

Stock

York

Ex¬

change; Edward T. McCormiek,
President, American Stock Ex¬

Hugh

change;
ment

W.

Long,

Association

National

for

the

Invest¬

of

Companies; Gordon Calvert,

for the Investment Bankers Asso¬

ciation; John Lindsay, for the Na¬

IDS

Fundamental Investors, Inc.

m

Top Records

Diversified Investment Fund, Inc.

versified

topped
reached

mutual

a

mon

investment
a

fund

pany,

who also

Expected to

Inc.,
were
when
sales
$91,002,466,
Joseph M.

May,

roll
ance

Shanks
Co.

of

opposes

appear

in favor of the

Services,

in

Manhattan Bond Fund, Inc.

offering

diversified list of

W.

Ecker,

Metropolitan Life Insurance Com¬

in the
62-year history of Investors Di¬

investment in

Securities

of

Frederic

Dealers; and

All monthly sales records

is

Association

tional

Sales

of

the bills.

in testimony

legislation is Car¬
Prudential

America

and

American

com¬

stocks selected for their investment

quality and income possibilities.
Send for a free copy of the booklet-pros¬
pectus by mailing this advertisement to

Business Shares

Diversified Growth Stock Fund, Inc.

A Balanced Investment Fund
The

CALVIN

BULLOCK

Established 1894

■

^

Prospectuses available
these

mutual

local

investment

funds

or:

for

Elizabeth

3,

New

Jersey

upon

request

Lord, Aubett & Co.
New York

I

stability,

Prospectus

INCORPORATED

through

firms,

for

hugh w. long and company

Addrw




between

selected

on

supervises a portfolio bal¬
bonds and preferred stocks
and common stocks
growth possibilities.

Company

selected

ONE WALL STREET, NEW YORK 5

Maine.

anced

/

—

Chicago

—

Atlanta

—

Los Angeles

Insur¬
repre^

Volume 183

Number 5544

The Commercial and Financial Chronicle

...

sentatives of the Mutual Life In¬

It is

now

the isotopes

of

Division

Electronics

National

greatest

confront

try,

the

will

this

fund

mutual

the

pass

indus¬

Senate
the

State

and be signed by

summer

Governor.

Mutual

fund

the

oppose

bills

they

because

can be used to trace
physiological reactions or
agricultural growth.

Citing

holders

not

to

gTanted to mutual fund sharehold¬

as

advantage

because

ers

and

be

subject

they

would

not

Predictions of sales increase

pointed out that the ele¬
molybdenum now is known

be

essential

plant

animal

to

growth

substantial earnings in

as

well

as

result

a

of

experiments with radioactive mo¬

1956

compared to 1955

*

in-

estimated 5%

an

year

ment

creased sales growth for
Annual

Report

Directors

1956, the
the Board of
Manufacturing

of

imposed

the

of

of

court

a

to

for

law

whether

decision

a

as

variable

annuity
security, and
hence under its jurisdiction.
;
was

or

a

not

was

a

cows'

milk

radioactive

after

mo¬

he said.

given to a cow,"
Thus it was conclusively

proved,

he

lybdenum

denum

was

is

that molyb¬
essential ingredient

added,

an

to normal enzyme

dairy

development in

and must be included

cows

In

Cattle Business

another

experiment, the re¬
of cobalt to vitamin

lationship
B-12

Also Benefits From

proved, thus helping to
mysteries about the
of
vitamin
B-12
by

was

solve

some

synthesis

Atomic

ruminants, Mr. Colton stated. By

Energy

the

administration

oral

the
association
of
atomic energy with the cattle in¬
dustry appears somewhat incon¬
gruous,
the latter industry has

cobalt

compounds

already benefited in many ways
by the application of atomic de¬

rected

vitamin

velopments, according to the cur¬
edition

rent

ties,"

p u

-

'

.

h

s

d

e

Corpora¬

v»;

•.

.

of

solution

problems

National

A 'iV;;

.

The

by

Research

<

V

Activi¬

"Atomic

of

b 1 i

Securities' &

tion.
.

radio¬

of

active

T; Although

basic

such

growth, resistance to disease, se¬
lection

of

the

said.

a

-

:

same

breeds of cattle

exhibit

radioactive

i evaluate

help

which

best suited for

are

different environments.

animals

The most

to

appear

lower

thyroid activity, a
physiological function which can
a

active

has

by the

iodine.

an

of radio¬

use

the

Since

thyroid

affinity for iodine, it is

a

fairl^ simple procedure to inject
the

with

animal

the

then

and

which

amount

radioactive

a

measure

to

goes

the

vital characteristic—the

ability to emit energy which can
be detected and traced wherever

thyroid, which in turn is related
to

thyroid activity."
Cold sterilization of meat is

other

promising

atomic

which

energy

an¬

application

of

ulti¬

may

mately affect the cattle industry,
the

Keystone

said.

publication

still

remains

to

meat

by

energy

means

RESERVES:

objectives of

accelerators

which

iSeries B-l

your
ten

and expansion,
nature, diversification, and constant stream of

research, the

products from

chemical industry has consistently

outgained other major industries
during

recent

looked

uoon

the

It is being

years.

and

more

more

LOUIS, Mo.
has

—

general industrial output. The
ord

calendar

for

1955

"Sales

of

chemicals

for

over

to the

U.

merce.

This is the highest increase

The

1955

industry's

production

reported by the Federal

as

Reserve

Board

167

average

for

148 for

against

1954—an
points (1947-49 =
The index for industrial or-

as

increase

ganic
1955

of

19

chemicals
180

and

basic

for

186

average

for

inorganic

chemicals, representing increased
production by 34 and 23 points
respectively,
duction

1954.

over

and

sales

become

as

about

was

and

to ^-850 Per„ P™'

peak

the

during

Future

Expansion Expected

"It is reasonable to

of

month

this

November.

that

assume

at the same time,
flexibility required

the

organization."

The net proceeds to be

Expenditures for New
Plant and

Sales 2

n.a.

Equipment 3

$10,985,000,000

97

13,698,000,000
14,366,000,000

941,000,000

101

670,000,000

1,247,000,000

1,386,000,000

-

1950

1951

J.

associated

121

136

13,317,000,000
16,428,000,000
18,425,000,000

<

hair

and

field

to

built-in

1,428,000,000

traffic in rest

1955

167*

23,025,000,000*

1,016,000,000*

continuous

the

TALLAHASSEE, Fla.
W.

—

U.

3 SOURCE:

Securities

S.

Board.

Reserve

2 SOURCE:

State

Department of Commerce.
and

ida Securities

now

Comparison of Employment,
Chemical

Company, Inc.

All Manu¬

& Allied

Year

Products

facturing

Products

1947

525,000

12,795,000

41.5

1948

522,000

12,715,000

1949

484,000

11,597,000

494,000

12,317,000

& Allied

EATON & HOWARD

EATON & HOWARD

STOCK FUND

BALANCED EUND

1950

All

Mfg.

Products

All

& Allied

& Allied

Mfg.

All

Products

Mfg.

40.4

$1.23

$1.24

$51.13

$49.97

40.1

1.36

1.35

56.23

54.14

41.0

39.2

1.43

1.40

58.63

40.5

1.51

1.47

62.67

535,800

13,155,000

41.6

40.7

1.63

1.59

67.81

13,144,000

41.2

40.7

1.71

1.67

70.45

13,833,000

41.3

40.5

1.83

1.77

75.58

531,700

12,588,000

41.1

39.7

1.91

1.81

78.50

BOSTON

547,700

13,061,000

41.4

40.7

1.99

1.88

82.39

SAN FRANCISCO

Prospectuses from your investment

Dealer

or

the above.

through its
Division, markets a

company,

light units and
unit pro¬

lighting when the normal lighting

2.06

1.95

84.25

rent failure.

76.52

t

570,000

,

-

/

Price

40.3

Indexes

(1947-49

=

Ail products other

1949

94.8

products

&

than fariu

foods)—/

»

(Special to The Financial Chronicle)

LOS

1950

78.59

March*
1951

1952

1954

1953

1955

1956

9u.3 110.0 104.5 105.7 107.0 106.6 106.5

.

•<

H.

ANGELES, Calif.

Gray

has

-

-

95.3 103.4 101.3 105.0 115.9 113.2 114.0 114.5 117.0 121.0

—

added to

Jack
the

& Co., 634 South

Spring Street, members of the Los
Angeles Stock Exchange. Mr. Gray
was

previously with Hill Richards

& CO.
"Preliminary .-/SOURCE: Bureau of Labor Statistics.

been

staff of Morgan

.*

1948

products 101.4 103.8

1947

allied

-

100)

'

Chemicals &

Morgan Adds to Staff

,

*

40.9

13,199,000

Rns8 Building

ESTABLISHED 1924

a

system blacks out because of cur¬

71.86

"

Wholesale

BOSTON

and

71.69

1956

24 Federal Street

mounted

line of emergency

67.97

552,500

March*

INCORPORATED

wall

a

64.71

536,900

1954

HOWARD

1951

1955

&

up

subjected to

59.33

1952

EATON

rooms

54.92

41.5

/

1953

Managed by

has

which

speeding

vides instant automatic emergency

Chemicals

Chemicals

41.5
■

in

related accessories. The

Earn ings

Earnings

Per Week—

Chemicals

drier

heavy use. The com¬
add to its line of

Reddi-Lite

Average Weekly

Average Hourly

Average Hours

Average No. of
Production Workers
Chemicals

and

plans to

The

■

Worked and Earnings, 1947-1955
vs. All Manufacturing

Hours

Industry

Ozone

air

portable type, face, hand and hair
dryer for home use.

Exchange Commission.

Doyle

with West Flor¬

nozzle

valuable

dryers,,

"

TABLE 2

Manley is

dual

proved

pany

Federal

the

objectionable odors. The
company is the only producer of

1,130,000,000

SOURCE:

Electric

destroy

19,556,000,000

1

the first in the
dryer with a

a

freshen

to

under the
Dryer.

American

General

System

771,000,000

148

Exchange.

line of electric

a

produce

1954

'

received

be

dryers

of

name

19,304,000,000

;

to

are

The company was

1,060,000,000

103

hand
trade

$ 800,000,000

1948
1949

Co.

Dryer

tion and sale of

Index 1

.

by

healthy

Production

(1947-49 Av.=I00)

Year

1946

(Special to The Financial Chronicle)

to

at mini¬

used to
purchase machinery and equip¬
expansion will ex¬
ment, pay for improvements to
tend into the future, provided the
plant facilities, and used for
1955 Growth Continuing
policies of Government continue working capital and other cor¬
"The trend of growth continued to be favorable to private enterporate purposes.
into 1956 at a rate of approxi- prise and our industry leadership
Dryer Co. of America, Inc., was
mately 7% greater than the first continues to provide the invaluorganized in Pennsylvania on
quarter of 1955- The trend indi- able foresight it has evidenced in
Aug. 25, 1952. The company, as of
cates a continuation for chemical past years. The chemical industry
Feb. 28, 1956, acquired all of the
sales on a fairly stable level dur- is
constantly
developing
new
outstanding
stock
of
American
ing the first six months of 1956, products, many of which are comDryer Corp., national sales dis¬
with a probable advance for the petitive with and often better than
tributor for the company's prod¬
year of about 5% over and above
those products which they are ucts. The
principal office of the
the
1955
rate.
Based upon the designed to replace. Our constantcompany is located at 1324 Locust
record
for
the
first
quarter of ly expanding population at home
St., Philadelphia, Pa.
1956, the earnings factor for the and the trends inherent throughThe principal business of the
company consists of the produc¬
TABLE 1
1955

spoil,

With West Fla. Sees

staff

size and,

18,092,000,000

D-163




mum

This policy

Association

full-time

the

Addreu

J

its

147

Name

City

keep

137

Stock

its

"Data previously .referred to,
covering production, sales and expansion for the past 10 years are
se^ forth in Table 1. Table 2 lists
Offers
a
comparison
of employment,
hours and earnings, and wholesale
Floyd D. Cerf, Jr. Co., Chicago,
Price indexes for the chemical in111., and Miami, Fla., on June 20
dustry versus all manufacturing, offered
publicly "as a speculation"
It will be noted from this table an issue of
99,000 shares of com¬
that the BLS Wholesale Price In- mon stock
(par 50 cents) of Dryer
<*ex for chemicals declined during Co. of
America, Inc. at $2.50 per
the year, in the face of a substan- share. Of the shares offered,; 90,tial increase for the all manufac- 000 shares are to be for the ac¬
tured products index.
count of the company.

♦Preliminary.
;

the

enabled

of the MCA

of approximately

Organization and the shares of your
•

actions initiated.

and

has

1953

Midwest

new

from

personnel

sippi Valley Building, members of

describing

three

in

companies to formulate
the
responsibilities

1952

&

pace

execute

Company, Missis¬

White

with

Funds.
•

member

maintain

their

at

activities

perienced

Both pro-

were

the

corre¬

Floyd D. Gerf, Jr. Go.
Dryer Common

1950, when the net sales
gain over the previous year was
index

that

and

the

$900 for all manufacturing.

S. Department of Com-

since

23%,

were

billion mark

amount

expenditure

of

year,

with

duction worker, as compared with
an

to

,

17.7%
according

gain

feel

program

institute

equipment during 1955

^m0"nt

allied

amounted

1955

$23,025

billion, a
the previous

and

Association's

substantial amount. During 1955
the chemical industry spent on
new
plant and equipment an

rec-

certainly

justifies this viewpoint.

already

William

ones.

directors

tal expansion program for 1956
will exceed that for 1955 by a

as

setter and barometer for

oace

(Special to The Financial Chronicle)

ST.

50 Congress Street, Boston 9, Mass.

prospectuses

be

earnings,

new

plant

new

1947

5eries K-2,5-3,5-4

me

progress

will

Because of its basic

Joins White Co.

Keystone Company

Please send

organ¬

to

challenges are met with the
displayed in dealing with

wisdom

previous

10% lower than the previous year, fields—atomic energy, education,
This was occasioned partly by the and mechanical equipment im¬
fact that construction under cer- provement—all of substantial im¬
tificates of necessity pursuant to portance to ; our members. An
the Government's accelerated tax extensive program of technical,
amortization program reached ; a legislative, and public relations
peak in 1953 and has since de- activities has been carried out
clined. Although scheduled capi- and is described in later pages of
tal outlays by chemical producers this ifeport. In administering this
indicate a slight decline during over-all program, the Association
early 1956, it is expected that this has continued to utilize the tech¬
trend will be reversed for the nical and functional committee
year as a whole and that the capi- approach, drawing able and ex¬

just passed. Moreover

industry

industry

although the

na-

according to all economic

the

chemical

sponding service have kept
for

in¬

an

during each of the past four years,

characterized by continued favorable
conditions
in
production,

has been made, it stated.

Morrison
The

or par¬

kill

meat

cause

substantial

B-4, Krl, 5-1, 5-2
GROWTH:

to

American

new

1955.

still above the $1

industries dur-

Calendar

but

iSeries B-2, B~3,

INCOME:

the

of irradiation with

isms

■with
investment

on

from radioisotopes

ticle

the

Much work
done

be

perfection of cold sterilization of

Custodian Funds

year

indicators,

100).

be evaluated

iodine solution

"These radioisotopes all

the

to

of

use

have

class of
elements and chemical compounds
obtained
as
by-products
from
atomic reactions, the publication
radioisotopes,

the

heat-resistant

sterilization of meat, is now made

by

is

for

and

possible by atomic energy equip¬
ment called particle accelerators
and

Commenting on other uses of
developments in the cattle
industry, Mr. Colton said; "Per¬
haps of even more basic, impor¬
atomic

iodine

ing the

for 1956,

of the

one

as

tion's top ranking

products

r

the

breeds

best

environment,

specific

radically cor¬
B-12 deficiencies,

he said.

-v *r *

animal nutrition and

as

cobalt, it was proved that
vitamin B-12 is synthesized in the
rumen
and that
the feeding of

tance

fied its nosition

sales,

in normal diet.

the

improve-

an

for

continuing advance of
the industry which it represents.
Steps were taken during the past
year to organize committees and

and

on

ened by the Securities and Ex¬
change Commission action this
last week in which it appealed to

over

show

"Expenditures

advertising lybdenum.
"In
compound form
Chemists' - Association states: «"
the sale this isotope of molybdenum was
of mutual fund shares, were heart¬ traced to an
"The chemical industry ; solidiimportant enzyme in
the

to

restrictions

should

—

will be further enhanced provided

"Your

Depicting

provide the incen¬

markets

picture for the chemical industry
is bright.
And the potential of

made in

are

49

creasingly expahdirtg distribution
of our products.
The long-range

by 5%, improved earnings, and
as

world

tive— and

Manufacturing Chemists' Board of Directors report, which also
foresees bright long-range picture for the chemical industry.

example, Mr.

specific

a

Colton
ment

tax

be¬

animal

would allow the variable annuity
a

materials

tracer

Uninterrupted Growth (or the
Chemical Industry Forecast

they

cause

who

proponents,

called

are

the

out

migrate," Robert Colof the Atomic &

Manager

ton,

bills, which would provide Securities, reported. Therefore, he
competition ever to added radioisotope compounds

nuity
the

of New York.
thought that the an¬

Company

surance

(3001)

L

-it

7

L

50

The Commercial and Financial Chronicle.

(3002)

The

Indications of Current

week

Business Activity
Latest

Equivalent to—
Steel ingots and castings (net tons)

month available.

or

month ended

Week

Month

that date,

on

*2,299,000

§2,355,000

in

or,

of quotations,

cases

of that dates

are as

AMERICAN

2,292,000

IRON

ingots

(net

AND

and

STEEL

steel

tons)—Month

for
of

Previous

Year

Month

95.0

2,396,000

either for the

are

Latest

Steel
June 24

production and other figures for the

cover

Ago

97.3

Thursday, June 21, 1956

Dates shown in first column

Year

Ago

*93.4

§95.7

June 24

Indicated steel operations

or

Previous

Week

STEEL INSTITUTE:
(percent of capacity)

IRON AND

AMERICAN

following statistical tabulations

latest week

..

Month

Ago

INSTITUTE:

castings

produced

May

oil

Crude

(bbls.)

stills—daily average

to

runs

(bbls.* of
June

average

_L.

each)

gallons

42

Crude

condensate output—daily

and

-June

June
—June
Distillate fuel oil output (bbls.-)—
June
Residual fuel oil output (bbls.)
June
Stocks at refineries, bulk terminals, in transit, in pipe lines—
" ;
Finished and unfinished gasoline (bbls*) at_:
June
Kerosene (bbls.) at
June
Distillate fuel oil (bbls.) at
June
Gasoline output

output

Kerosene

(bbls.)__
(bbls.)

—.-.

—

.

_.

—

at——lie

Residual fuel oil (bbls.)

:

June

freight loaded (number of cars)
June
freight received from connections (no. of cars)—June

Revenue

Revenue

CONSTRUCTION

ENGINEERING

CIVIL

U.

8.

7,911,000

7,522,000

26,403,000

25,985,000

1,978,000

2,263,000

1,579,000

12,580,000

11,462,000

11,755,000

12,092,000
8,041,000

8

8

and

■/>

AMERICAN

>

184,870,000

184,409,000
22,903,000

8

Orders

21,879,000,

.7iB79,321

.

INSTITUTE—
-

77,399,000

64,945,000

v

35,836,000

33,119,000

45,194,000

36,742,000

19,332,000-

__

_

GOVERNORS

of

April

787,075

719,209

777,606

636,111

665,911

$300,211,000

DOLLAR

OF

NEW

163,115,000

135,008,000

161,151,000

134,191,000
105,466,000

108,564,000

98,511,000

31,152,000

28,725,000

54,551,000

$185,580,000

ACCEPTANCES

V;

$176,760,000

.

RESERVE

BANK

_

___

$244,830,000

$235,353,000

$206,901,000

___

259,207,000

239,646,000

183,114,000

_____

11,495,000

11,534,000

21,372,000

11,407,000
32,018,000

138,767,000

9,240,000

9,987,000

52,865,000

104,317,000

99,757,000

87,665,000

$650,461,000

_

$628,168,000

$685,846,000

$3,659

$3,351

$3,675

2,502

2.365

2,571

1,262

1,204

1,430

1,105

1.CC5

1,270

121

107

_

__

________

shipments

_

_

exchange

„•

goods

on

stored

and

,

shipped

foreign countries

June

9

9,745,000

*8,720,000

10,020,000

9,190,000

9

529,000

398,000

402,000

_

124

109

129

BUILDING CONSTRUCTION

531,000

114

LABOR—Month
Total

June 16
DUN

INDUSTRIAL)

(COMMERCIAL AND

INC.—

_

11,425,000

10,951,000

10,875,000

9,987,000

June 14

—

286

257

279

214

______

building (nonfarm)
dwelling units
__

and

______

__

_

alterations

_

__

Nonhousekeeping

*

—

5.179c

5.179c

Industrial

Office

4.797c

5.179c

$60.29

$60.29

$60.29

$56.59

$44.83

$45.83

$55.00

:

_

_

(nonfarm)
|

_

buildings

Stores,

$37.50

.

warehouses

and

restaurants,

Other nonresidential

M. J. QUOTATIONS):

garages

building

44.500c

44.625c
*

-June 13

35.700c

42.400c

41.550c

94.125c

16.000c

16.000c

43.450c

35.475c

97.125C
16.000c

15.800c

15.800c

13.500c

15.000c

,.

•

15.800c

13.500c

13.500c

Farm

_

Public

and

institutional-

-

53

147

172
v

'

40
~

..

Other

MOODY'S BOND PRICES DAILY AVERAGES:

121

148

369

386

36

35

80

276

____

139

80

;
_

38

392

~

95.27

A

—

108.88

108.16

112.19

106.74

106.74

110.70

104.31

104.66

109.06

100.00

-June 19

100.49
103.64

105.17

105.17

254

19
•

106.04

33

Industrial

Sewer

and

Public

service

2.91

2.76

3.46

3.45

3.23

Conservation

_June 19

3.27

3.26

3.27

3.05

All

3.35

..June 19

3.22

__

institutional

318

374

31

71

206

211

24

29

other

57

60

building

63

113

106

350

420

109
_

102

96

38

20

54

47

53

14

13

$289,000

$707,000

$251,000

$515,000

__

42

16

enterprises
and

98

470

_J

_

$508,000

_

development—

public-—

CASH DIVIDENDS—PUBLICLY REPORTED

BY

3.75

3.75

3.72

3.52

U.

3.57

3.56

3.53

3.30

COMMERCE—Month of May (000's omitted)

3.44

3.44

3.44

3.21

..June 19

3.39

3.39

3.39

3.18

..June 19

414.7

415.8

420.8

410.5

Utilities

MOODY'S COMMODITY INDEX

22

334

16.
1,104

3.13

3.47

19

26

_

_

water

2.86

3.47

3.35

8

986

32

..

Other nonresidential

2.86

3.49

10

J__
_

...

and

...June 19

3.36

'• 289

n

1,157

_

_

_

building
„

Military facilities
Highway

MOODY'S BOND YIELD DAILY AVERAGES:

3.48

_

Educational

109.79

..June 19

64
-

216

Nonresidential

Hospital

29

19

_

_!

building

_

Average

_

'

109.24

106.04

_

private.

Residential

107.62

106.04

_

construction

Public

103.80

103.13

105.17

Group
Utilities Grot

Railroad

100.00

102.96

Baa

other

All

96.43

105.00

108.34

104.48

—

Aa

94.67

104.83

106.56

—

95.32

104.66
108.16

Average corporate

telegraph

utility

30

19

43

;

•

public

'

--

"

and

-5836

24

21

___

_

.89

174

24

_

L_

Railroad

Telephone

236

98
155

42

utility

14.800c

253

'

construction

12.000c

183

56

Miscellaneous

93.875c

247

236

165

_

Social and recreational

.

„

94.375c

-June 13

45.625c

27

591

186

_

____

Hospital
-June 13

32

663

101

_

Educational

I

133

36

building

699

266

Nonresidential

June 12
June 12

—

Electrolytic copper—
Domestic refinery at

S. DEPT. OF

millions):

_

construction

Additions

&

June 12

—

(per gross ton)__
(E. &

U.

(in

Commercial

lb.)

(per

—

May

Residential
New

_.

of

cocnstruction

new

Private

Religious

Public

'

between

Total

June

(tons)

Pig iron (per gross ton)

Public

\

•

•"

36,497,000

Dollar
Based

IRON AGE COMPOSITE PRICES:

Aaa

V.

t

$167,714,000

OUT¬

Domestic warehouse credits

192,942,000

192,303,000

4,083
-

YORK—As of May 31:

Imports

$327,950,000

137,096,000

:

*'

,A

'■

v.

Domestic

a 16,022,000

V-

.

650,943

$250,213,000

"

'n

V

BANKERS'

781,938

631,141

3,041

6,559

5,943

OF

SYSTEM—Month

(in thousands)—

STANDING—FEDERAL

9
9

2,403

6,667

_

■

OF

THE FEDERAL RESERVE

.27,032»000
88,414,000

V

—June 14

output (in 000 kwh.)

METAL PRICES

CAR

May:
new

DEBITS—BOARD

INSTITUTE:

ELECTRIC

steel

of

for

freight cars
freight cars delivered—.:

New

166,233,000

187,708,000

r

80,637,000

8

SYSTEM—1947-49 AVERAGE

Scrap

RAILWAY

Month
.

BANK
8-

SALES INDEX—FEDERAL RESERVE
= 100
June

DEPARTMENT STORE

Finished steel

»

v

8,255,824

7,783,873

_

7,956,000

319,619,000

lignite (tons)

anthracite

BRADSTREET,

"

"

tons)—

S. BUREAU OF MINES):

(U.

coal

Pennsylvania

FAILURES

8,244,000'

June 14

COAL OUTPUT

(net

April

Exports

Federal

Electric

i

$511,922,000

municipal,

State and

EDISON

'

8,319,000

-

June 14
__

products

*

2,140,000

—June 14
——June 14

_

__

construction

Bituminous

8,072,000
27,218,000

>

construction

Private construction

Public

1,8,029,000
27,142,000

8

of

steel

6,600,250

6,997,650

8
8
8

ENGINEERING

—

NEWS-RECORD:
Total

7,028,950

7,037,050

8

-J.

*

ASSOCIATION OF AMERICAN RAILROADS:

Month

of

10,328,316

*10,536,121

10,496,000

r

■

Shipments

AMERICAN PETROLEUM INSTITUTE:

CORPORATIONS

S.

COMMERCIAL
ERAL

RESERVE

of

As

PAPER

May 31

—

U.

S.

DEPT.

OF

OUTSTANDING—FED¬

BANK

NEW

OF

YORK—

(000's omitted)

$572,000

NATIONAL PAPERBOARD ASSOCIATION:
June

9

284,576

344,224

251,309

June

Orders received (tons)
Production (tons)

9

290,477

272,725

294,894

,

activity—

1

..June

;

9

97

91

99

June

Percentage of

9

556,099

557,881

583,953

263,819

282,825

-

CONSUMER

INDEX

1947-49=100-

—

Month of April:

100
•

598,936

PRICE

All

items

114.9

Food

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

AVERAGE ==100

—June 15

-

—

108.70

108.65

109.08

106.76

LOT

DEALERS

Odd-lot

sales

Number

SPECIALISTS

AND

SECURITIES

—

dealers

by

N.

ON

Y.

STOCK

—May 26
May 26

Dollar value
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers'

short

Customers'

Ma7 26
May 26
May 26
May 26

other sales

sales...

1,271,103

1,493,979

949,591

$68,176,848

$66,962,066

$80,669,715

$49,452,043

1,012,969

1,135,277

1,149,154

907,341

7,333

4,009

6,222

5,142

1,127,944

1,008,960

1,142,932

902,199

Short sales
1

sales

Round-lot purchases by
Number of shares

and

fuels and

$61,011,108

$52,224,287

$57,937,557

$44,600,658

295,000

245,680

262,400

239,870

295,000

245,680

262~400

239~870

467,070

534,490

609,670

320,140

Household

FOR

Total

ACCOUNT

round-lot

ON THE N. Y.

MEMBERS

Other

and

Women's

Other

I
ACCOUNT

FOR

OF

445.400

522,760

451,640

11,309,940

13,297,780

10,318,740

12,308,710

11,755,340

13,820,540

10,770,380

on

__

1,713,070

1,584,860

1,600,890

1,303,420

26

227,370

277,520

341,490

258,740

26
26

1,370,040

1,297,320

1,341,180

1,055,170

1,597,410

1,574,840

_

_

302,120

322,810

126.7

125.3

170.8

164.8

116.8

(tons

of

113.7

107.7

106.6

121.2

119.8

*109,279

106,773

142,445

140,032

135,042

140,727

132,927

124,853

53,443

54,887

43,340

143

138

142

144

136

$205,500,000

53,600,000

of

116.0
127.3

119.2

142

month

131.4

119.5

121.4

$207,900,000
55,000,000

9,700,000

_

9,300,000

$180,900,000
45,400,000
9.100,000
34,000,000

May:

Copper production in U. S. A.—
Crude (tons of 2,000 pounds)
2,000 pounds)—

fabricators—

26

U.

In

Refined

S.

A.

(tons

of 2,000 pounds)

stocks at end of period (tons
pounds)

copper

of 2,000

24,450

214,140

ERNORS

THE

OF

14,300

22,000

20,070

287,710

328,390

300,650

214,670

302,010

352,840

322,650

234,740

654,655

650,685

541,445

483,685

RESERVE

Unadjusted

May 26
May 26
May 26

FEDERAL

Seasonally adjusted

May 26

sales

SYSTEM—1947-49=100—Month

of

May:

_

floor-

'

purchases
;

Total sales

Total round-lot transactions for account of members—
Total purchases
_

38,570

68,990

68,110

73,030

612,884

612,253

706,535

514,055

May 26

Short sales
sales

90.2

126.4

114,221

—

INSTITUTE—For

May 26

Other

116.9

91.1

108.2

_

recreation

May 26

Total

97.1

121.9

116.5

_

Other

the

105.5

98.3

■V

131.6

_

Short sales

off

103.1

106.6

170.8

_

__

_

_

goods and services

COPPER

118.1

91.1

_

_

care

and

104.5
'

121.6
104.8

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

Total sales

initiated

103.1
-

104.8

123.0

_

care

Other

119.5

1,682,670

308,660

_

—

Refined

the floor—

purchases

Other transactions

125.7

98.1

Public

Deliveries to

May 26

Other transactions initiated
Total

387,030
11,921,680

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
May
Short sales
May
Other sales
May
Total sales
May

130.6

106.5

—

girls'
_

Reading

sales

TRANSACTIONS

boys'

and

Personal

May 26
May 26
——May 26

_

apparel

Medical

sales—

Total sales

ROUND-LOT

STOCK

(SHARES):

Short sales

110.3

122.1

_

_

_

Footwear

ROUND-LOT STOCK TRANSACTIONS
OF

129.9

111.7

102.7

operation

Transportation

SALES

131.6

129.7

oil

Housefurnishings
Apparel
Men's

dealers—

STOCK

EXCHANGE AND

109.4

120.7

111.8

_

_

fuel

117.5

110.7

131.7

_

_____

_

electricity

Private

TOTAL ROUND-LOT

_

104.6

114.8

120.8

home
__

_

103.0

106.9

116.7

___

_

Rent

Solid

at

123.9

106.4

_______

.

-

May 26
May 26
May 26

-

.

Housing
Gas

May 26

Dollar value

Round-lot sales by dealers—
Number of shares—Total sales
Other

1,297,689

_

vegetables

Other foods

purchases)—t

(customers'

and

110.1

92.8

110.8

products

Fruits

COMMISSION:

EXCHANGE

shares

of

Dairy

111.2

124.4

124.5

bakery products
poultry and fish

Meats,

114.2

109.0
107.3

94.0

_

_

Cereals and

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDEXCHANGE

home

at

114.7

109.6
107.9

__

Food

(j>51,454

681,243

774,645

587,085

May 26

2,676,385

2,537,665

2,465,145

2,001,245

,

LIFE

INSURANCE

—

BENEFIT

POLICYHOLDERS

—

PAYMENTS

INSTITUTE

TO

LIFE

OF

INSURANCE—Month of April:
Death benefits
Matured

endowments

Disability payments
Annuity payments

—

___

May 26

280,240

!370,960

431,600

May 26

2,270,634

2,237,963

2,348,365

1,783,895

Surrender values

85,200,000

83,700,000

73.900,000

May 26

2,550,874

2,608,923

2,779,965

2,135,735

Policy

83,900,000

112,300,000

75,800,000

$479,500,000

$508,200,000

$419,100,000

June 12

114.2

114.2

114.3

11Q.2

June 12
June 12

91.4

*91.1

90.8

91.9

Processed foods

102.5

♦102.9

101.8

103.6

Meats

June 12

81.1

82.9

79.6

90.2

121.4

*121.4

121.8

115.5

$5,720,050

$46,717,700

$18,878,300

670,375,000

681,432,000

705,372,000

Short sales

Other

sales

Total sales

WHOLESALE PRICES, NEW SERIES
LABOR—(1947-49

=

—

U.

S. DEPT.

351,840

41,600,000

dividends

40,000,000

OF

Total

100):

Commodity Group—
All

commodities

Farm

products

All conimoditles

♦Revised figure.
of Jan.

1,

1956,

as

other than farm and foods

June 12

^Includes 928,000 barrels of foreign crude runs.
against Jan. l, 1955 basis of 125,828,319 tons.

Monthly Investment Plan.




§Based on new annual capacity of 128,363,000 tons as
tNumber of orders not reported since introduction of
'

■

I

TREASURY

RECT
OF

MARKET
AND

S.

U.

TRANSACTIONS

GUARANTEED

A.—Month of

Net sales
Net

IN

DI¬

SECURITIES

May:

—_

purchase

WINTER

WHEAT

PORTING

PRODUCTION—CROP

BOARD

CULTURE—As

of

U.

S.

June

1

DEPT.

OF

(bushels)

RE¬

AGRI¬

Volume 183

Number 5544...The Commercial and Financial Chronicle

(3003)

Bankers Offer $106 Million Grant County
Public Utility District Revenue Bonds

LAKE

I Like Best

~

John Nuveen &

Co., Inc., B. J.-Van Ingen & Co., Inc., and
BIylh & Co., Jnc., marketing Columbia River-Priest Rapids
Hydro-Electric 3%% tax-exempt (obligations at prtee of 39,
yield about 3.92%.

line

136

field.

;'

miles

the

to

nearest

Co., inc.

joint managers of

are

nationwide

investment

,

struction

tric

and

accrued

interest,

yield approximately 3.92%.
Net

>

proceeds

from

jthe bonus will be
The

construction

the

-

dam

a

creased needs for

.peak

capacity

River

in

Counties,

across

Grant

Washington.

and

miles

southeast

Washington,

;

southwest

and

of

Oregon; 130
Seattle,

140.'air:;miles
-v

'

on

at
■

\

^

the

Priest^Rapids

.

site

present Federal income taxes

un¬

Priest

der

\ '*

-.]■

The bonds will have the benefit

[of

.

anual

market, from

has

become

affiliated

SUC£"11CT

with

W4UU

H"ntmgton

$91,880,625
plant

ered

the

and

Merritt-Chapman
poration.,^

St.

hydro¬
by

'

There is, of course, a degree of
speculation in North Canadian Oil.
But the speculation is largely on

DIVIDEND

speculative

were

the

and

whetner it will

will

or

watch-words.

It

to be safer to be in

not

be

a

would

seem

Regis.

a

borrow

large,

will
generator

The

that must
of

sums.

Director*

Ot

Common stock, both
to

Dividend
declared

has

payable August L, 1956
July 3, 1956.
KEMP,

June 13, 1956

Tnomm*

now
iNfniiiiuniiiiiiiiiniiitiiininMittnRtDBBiH8inMNUMi

'Of its stock.

public relations

coun-.

New England Gas

Joins Grimm & Co.

;

^

Electric Association

and

...

1-WEt-le.i KfcD

CO

MON

ANO

NOS.

17

declared

a

DIVIDENDS

,

at

redemption

'

from

103%

prices * ranging
.100%, and in " part

to

U. S. Life Ins. Go. Stock

;

on

any

•

'

Irustccs

have

quarterly dividend ol $1.12/t? pea
share on the 4ls>% cumulativi
convkrt1blk

CHARLOTTE, N. C.—Reynolds
profit,J & Co. announce the opening, on
with St.-June 15, 1956,. of a new branch

interest payment date on, fill
"
if^J
* ' "II
'
course, is . divided
1 or after May 1, 1961 at 100% from
unermg Unaerwritten
R^is-v North Canadian has pres-; office at 221 South Church Street,
certain specified funds, plus ac¬
ently outstanding 4,700,906 shares under the
.- * A
management of Wylie
group
of-;; 129 underwriters of
common
stock
crued interest in each case.
and
215,000 H. Arnold. Mr: Arnold was for^
,
headed by William Blair & Co;,
shares are reserved for outstandPublic Utility District No. 2 has
merly with Merrill Lynch, Pierce,
The First Boston Corp. and Carl
ing warrants and options. Calcu- Fenner & Beane.
~
"
~
: already entered into Power Sales
M. Loeb, Rhoades & Co. is
today lating some
! Contracts
5,000,000 shares ulti¬
expiring on Oct. 31, (June
21) offering 625,070 shares
mately outstanding, these esti2005 with 12 purchasers, who will.- of $2
DIVIDEND NOTICES
par value capital stock of
mated earnings would appear to
purchase 63.5% of the projected the United
States Life Insurance
afford
ample
net
earnings
output of power and energy at Ihe Co. in the
per
CITY INVESTING COMPANY
City;rof New York, at share to warrant
Priest Rapids site. The balance of.
25 BROAD STREET, NEW YORK
considerably
4, N. Y.
$26 per share.-- Of these shares,
higher than the present price of
The Board of Directors of this
36.5% of the power and energy
company on
550,064 are being sold by the Con¬ the stock
June 20, 1956, declared a dividend of 20 cents
to be produced at the new plant
(5y2).
per
share on
the outstanding Common
Stock
tinental
Casualty
Co.
and
the
will be retained by the District
But this is not a stock that one of the 'company payable August 15, 1956, to
stockholders of
Continental
•

The

the estimated earnings of the
pulp^
and paper mill.
The net
.

the

prbfbrrbd

Association

1956, and
dend

ot

share

on

shares

Ol

payable July

1,

quarterly divi¬
twenty-hve (25*) pa
regular

a

the

ot the

common bh arbs

*

Association

.

|
1

Both

payable July 15, 1956.

dividends

are

shareholders of record

payable to
at

the close

-

ot business

June 26, 1956.

'

,

H. C.

J*., Trtasum

Moorb,

June 14, 7950.

'

*

Assurance

'

for its

own

Under

-

use

the

or

sale.

provisions of Pub-

rlic Law 544 of the 83rd Congress
and the Federal Power Commis,

sion
.

i

.

r
t

license approved on Nov. 4,
1955, relating to the Priest Rapids
Project, approximately 31% of the

output of the initial plant will be
marketed in

Oregon, 4% in Idahoand
28.5%
by certain

Montana

utilities within the State of Wash¬

The purchasers and the percent¬
fic

is

General

Electric

Co.,

13.9%; the City of Seattle, 8%; the
City of Tacoma, 8%; Puget Sound
Power & Light Co., 8%; Washing¬
ton

Water

Power, 6.1%; Cowlitz
County P.U.D. No. 1, 2%; Kittitas
County P.U.D. No. 1, 0.4%; and
four Oregon cities,
Forest

0.5%;

Eugene, 1.7%;
Grove, 0.5%; McMinnville,
and
Milton - Freewater,

0.5%.
Public

Utility District No. 2, of
County, Washington, was

Grant

into

voted

since
and

offering to its stockholders of

record

June

7;

share for each

$26

1956,

ten

one

new

shares held, at

share with the offer to

a

pire

agreed

ex¬

companies

have

not to -exercise their sub¬

scription
warrants
75,006 shares, and

which

total

these shares
part of the stock being offered
by the underwriters.
Proceeds from the sale of

existence

in

1938

and

March, 1942, it has owned
operated
a
and
profitable

without

competition

more

general
and

of Grant

mands

for

electric

ing rapidly
tions

are

the

around

County.

With de¬

power

mount¬

and

that

Pacific

steadily, projec¬
the energy deficit

Northwest

2,355,000

will

kilowatts

The

recommended

Engineers

Rapids

ance

Co.




be

added

the

invested

securities

to

the

company,
in income

or

used

to

Insur¬

is

the, oldest stock legal
life insurance
company in

reserve

of

buy with the expectation

handsome

a

dividend

the United States.

It offers

a

va¬

of

procedure

this

1956,
mitted

was

Total

$864,597,606

assets

life

in¬

March

on

Staled

and

31,
ad¬

$79,727,837.

Bernard Berk Partner
Co., 60 Beaver
Street, New York City, members
of the New York Stock

Exchange,

July 1 will admit Ann Jacque¬
line Berk to limited
partnership.

on

Saul Feldman

construction

in

loans.

increasing

Feldman

is

conducting

a

330

City.

East
v

79th
.

Street,

New

York

A.

of

business

President

KENNEDY

&

Secretary

their

equity

in

The

$15

of

wood

cut

from

has

the

River

through

property,

the

abundant

water

DIVIDENDS

which

this

.(42

y-j.4)

tal

stock

able

on

declared

per

share

of the

a

of the
following quarterly dividends:

regu¬

August
of

R. E.

needed by a paper mill. The mill
be equioped with the latest

June

14,

COMMON STOCK

the capi¬

15,

Dividend No. 186

pay¬

1956

record

close of business

much

on

Company,
at

60 cents per share.

to

the
PREFERENCE STOCK,

July 16, 1956.

assures

supply,

-

authorized the payment
board of directors

day

stockholders

runs

|

The Board of Directors has

lar quarterly cash dividend of
Forty-Two and One-Half Cents

government reservation compares
with costs of $25 to
$30 paid at
other Canadian
pulp mills. The

Athabasca

California
Company

30 Rockefeller Plaza
New York 20, N. Y.

the

A few additional facts should
be
The stumpage cost of

cord

Edison

Dividend No. 34

noted:
per

Southern

GAS

COMPANY

company's properties.

4.48% CONVERTIBLE SERIES

Palmer, Secretary

Dividend No. 37

1956

28 cents per share.

will

use

machinery and

Scandinavian

a

TiiiiiiiiuiiiitiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiuuiitiiiiiiiiiiiiiiiiiifliiiiiiiiHiiiniiniia

the

pulp
and

abroad.

CANADIAN

statement

will

highly success¬
Regis has made

St.

be

that
of

be used

the

finished

superior
in

the

Dividend

quality

manufac¬

of

almost
every
grade of
white paper. Investors have been
made aware, through the action
of the market of the

leading pa¬
company stocks, of the rapid
expansion taking place in the pa¬
per industry, which
shows little
sign of abating. This new mill
per

be

might

operating
well

be

next
asked

spring.

why a
stock of this type and
quality is
recommended at this time, in con¬
trast with
many "blue chips" on
the market. It is
largely because

PACIFIC

Dividend No. 33

28 '/j cents per share.

RAILWAY COMPANY

—

can

PREFERENCE STOCK,

4.56% CONVERTIBLE SERIES

process,

which has proved
ful

It

securities business from offices at

Vice

NATURAL

retirement of debt inures to
the benefit of stockholders
through

should

Opens

close

CONSOLIDATED

re¬

But

ture

Bernard Berk &

I

usual

coverages.
force

debt,

a

health

in

income

heavy

tirement

will

surance

the

JOHN

sums of money for the
pipe¬
line and mill have
imposed strict
for a fairly

and most efficient

and

at

1956.

large

and

accident

25,

the near future.
The bankers
who have loaned North Canadian

vidual

group

July

on

in

riety of individual and group life
insurance policies as well as indi¬

be

Project as
by the U. S. Corps
in its 1948 report

fund% of

will

Saul
Priest

be

expand agency operations.
The United
J$tates Life

by

1966.

will

producing

than

13,000 customers located in sub¬
stantially all
of
the
pooulated
areas

Co.

ance

should

Monday-1 July 9, 1956. The
conditions

on

Continental

rapidly expanding electric distri¬
bution system currently serving

of

record

stock
allocated to them are: Paci¬
Power
&
Light Co., 13.9%;. by the United States Life Insur¬

Portland

in

Co.

time the company

same

are

ington.
ages

the

At

At

a

meeting

Directors

held

Notice

oOo

The above dividends

able

—

of

the

today

Board

of

dividend

a

of seventy-five cents per share on

the

Ordinary

declared

in

Capital

respect

Stock

of

the

was

year

1956, payable in Canadian funds
August 1, 1956, to shareholders

on

of record at 3:30 p.m. on June

July 31, 1956,

holders

Checks

the

of
will

By order of the Board.
FREDERICK BRAMLEY,

Secretary.

Montreal, June 11, 1956.

record
be

are

to

pay¬

stock¬

July

mailed

5.

from

Compairfs office in Los

Angeles, July 31.
p. c.

22,
June 15,1956

1956.

ft

stockholders of record

WALLACE M.

money, to

.

BoXrd

dividend of 37 Vi cents per share on the Pre¬
ferred stock and 62 Vi cents per share on the

by the

sel estimates that North Canadian

Tbef^owerhouse

company

CORPORATION
204fh Consecutive Quarterly

increase its sales and earnings,
if it is to justify the present price

of

■

company's

stock in

it

UNITED SHOE MACHINERY

business that

a

is starting with such good auspices,

association

partner of the quality

a

NOTICES

the time element rather than upon

inherent soundness of

A recent bulletin issued

ScotL Cor¬

&

highly
venture

with

with King Merritt

now

& Co.. Inc.

bank

not for the

submitted

Was

of

well.

as

heavy debt overlying a inodest -is in a fundamentally important
preferred and common stock capi- line of manufacture, and which
talization.
Froni. this angle the will be required to rapidly pay off
common
stock would be considits initial debt; rather than to buy

build; the

to

Rapids /dam

electric

much lower Price levels

of

share

own

COLUMBjUS, Ga. —William R.

sinking fund, begin(Special to The Financial Chronicle)
will ultimately derive
contain eight ftirbine oyer a mil¬
.ning in the 12 months ending Nov.
ORLANDO, Fla. — Samuel E.
units capable ■'Pf? a peak capacity lion dollars profit from the sale
l*-.1, -1963, designed to retire the"
C\i
tn
of 678,000
the pulp mill and
kilowatts. It is esti¬ of gas to thf* milr* mill onrl other IVlOyCr
entire isSue by maturity, and they
^ Grimm & Co.,
mated that the^job can be com¬ customers along the route of its
will also be redeemable at the
^ East R°toxnSon Avenue,
pipeline. -Upwards of $10 million,V
option of the District in whole at pleted by October, 1961.
before depreciation and
New Reynolds Branch
taxes, are
-any time on and after May 1, 1966
an

Staff

to

MIAMI, Fla.—Oliver F. Cham¬
bers

Prices for its commodity, but at Paschal is

pipeline

of

the present administration. A low
of.

its

the

construction. SO clearly Nofth Canadian's financial structure is one

will

bid

of

of the loan while the mill is under -the

probably be the first of the "part¬
nership" projects advocated by

the bonds is exempt,

existing laws, regulations and
rulings. ' ■
; ■ V ■'
V,;:, r'

be in the last

bull

loans from two successful venture.
At this stage
banks, sufficient, with of the stock market safe and profthe equity
capital, to build the .itable investments become scarce,
mill and take care of the service
Discrimination and patience are

.

in the opinion of counsel from all

*

may

Canadian

iThe facilities to' be constructed

•>.;

Spokane, Washing¬

ton.
Interest

Project.^

-of

supply

million

site is located.about. 150 air miles- license to \the. District for con¬
1
struction
of
northeast of Portland,
the Priest Rapids
'air

cost

subsidiary company, NorthPulp & Power Co., bwned
jointly by - North Canadian and
St. Regis,"then arranged for
$25

pre¬
later
a

permit, and

liminary

dam

the

west

a^jfhopzed the

*

to

The

„

Commission

Yakima

The

set

equity-capital for the pulp mill.

assured pow¬

an

mission for a* preliminary permit
fop the Project on-July 22, 1952.
Following" the enactment on July
27j, 1954 ofTegislafibn by the 83rd
Congress,
the i Federal
Power

of

the Columand

staff

Hewitt.

(Special to The Financial Chronicle)

Mp^icaf

cover

and

i supply, led Public Utility Dis¬

er

hydro-electric plant of 678,000 kw
,bia

Moreover, we
staSes ot this

ar-

Canadian

the

&

Mclnnes Adds

heights that they appear to discount a good deal of the future.

gas

^

to
•

to trict No. 2 of Grant County to ap¬
1 i * ply to the Federal Poweri Com¬

sale

market prices for this latter
type of stocks have risen to such

about

in

necessary funds, coupled with in¬

used to finance
of

Congress

ure

Production

99%

of

act

North

to

Kreeger

the

;

rangements,

con¬

shortage of electric energy. Fail¬
of Congress to appropriate the

a

Rapids Hydro-Elec¬

System : 3%%,
revenue bonds, series of 1956, due
Nov. 1, 2005. The bonds are priced
at

Federal

Jones,

-

;

syndicate
offering : $166,000,000
;Grant County, Washington, Public
;Utility District No. 2, Columbia-

River-Priest

by

for

WALES, Fla.—Louise E.

has been added

raising the necessary hioney Which a substantial setback-is
BnildbiV
1950. Congress did
hot, however/ for this- extensive* undertaking possible. A new venture of this fieaicai culiaingappropriate funds" for the con¬ through
the *saleV of preferred tyPe promises to be able to comK"ir»CT
Arirlc
struction
of
the " Project,:; even stock and bonds, It was able to Pete in the pulp and
paper marmerrm naas
though the Pacific Northwest re¬ raise approximately $10 million ' ket, because of its low production *
(Special to the financial chronicle)
gion-was beginning to experience from Canadian investment sources c<)sts not- only at present high

a :

banking

of

'

authorized

was

Cain

Walesbit Hotel.

requirements. This involved North
Canadian's building a 10-inch
pipe

;

Having made these tentative

Halsey, Stuart & Co. Inc.; John
Nuveen & Co. Incorporated; B. J.
Van Ingen & Co. Inc. and Blyth &

•

Kreeger

(Special to The Financial Chronicle)

Nationwide syndicate managed by! Halsey, Stuart & Co.
Inc.,

to

With Jones,

Continued from page 2

51

hale,

Treasurer

Chronicle... Thursday, June 21, 1956

The Commercial and Financial
52

*

\

(3004)

eral Government first enveloped

BUSINESS BUZZ
'

i

•

,

.

.

a

of 10 million additional

group

taxpayers who began to pay in

r9.

taxes

Washington.

r

>

s

..

EXCHANGE

ing
the

Very shortly—and it may

kind of a system for
registration
of foreign funds
up

some

stallations, it was explained.

registration would serve

This

This will be a

substantial

dertaking requiring some con-,

V

said

this year.

passage

The Internal Security subcom¬
a

ownership of

E. Jenner (R.,
The first

hearing in this new

yiear Arthur I. Bloomfield,
iiior

economist

N--~dFred

Klopstock,

While the

gave

little substantive

provide

possible ulti¬

mate ownership of some

funds

rity angle, it is also thought pos¬
that foreign
funds may

sible

information is

about the

ltnown

the

principal concern of
is the secu¬

subcommittee

this

hearing
the record and figures of what
*the Federal Reserve knows
about
foreign
investments
in
this country.
It appeared that
They

vision.

foreign

a means

whereby illegal

operations, such as dope rings,
first invest their money abroad
"foreign
funds" in American enterprise,
and then re-invest it as

reaping the tax benefit foreign¬

in this country.

get over American

ers

Worried Over Russian Angle

recipients

dividends.

of

statement opening the hearings,
indicated the subcommittee was

mous

possibility of

from

American

bank

"worried about the

Russian ownership of

j "Companies.
'1
v

"The

taking
i cates

•; y

:

subcommittee

has

;

been

testimony which indiCommunists in the

out

is

States

became

ator said.

"We know from our

who transfers funds
numbered Swiss

person
a,

is that anony¬

say,

account and

that

into

in turn con¬

control

of

an

American company," said a com¬
mittee

source.

-

*

!

Pay Up Time Coming

increas¬

ingly active in the late 1940's in
industrial investments," the Sen¬

want to try to find

we

just who

verts

that

United

implications

broad

ceipts

disbursements

over

broadened,

for

Federal

the

left

that

^••

.

OASI

the

of

members

The

in

fund

time" is coming
than expected in

That "pay up

much

sooner

the Old Age

and Survivors' So-

Secretary of

the

are

an increase over
1954. Disbursements
$1,072 million or 32% and

ceipts showed

million

$5,087 million.

deducted

taxes

social

social

for

over

However, the OASI trust fund

paid "interest" of $448
oh

in other words, on

of

covered

into

purposes.

the

in

$448

dent

10

be

1954

to

million

very

extend

the

trustees

great

if Presi¬
not

been

Congress
to

coverage

additional

persons,

time" would indeed

close,

eligibility.

round¬

had

persuade

liberalization

(the differ¬

of $1 million due to

to

the "pay up

that the

ence

Olin Oil & Gas

in

of

added" to the trust fund

$1,098 million

Eisenhower

able

government

was

considering
of

benefits

the

account of
service have
trust fund

provision

no

that

believes

tees

tional

reim¬

for

The Board of Trus¬

bursement.

including

costs,

ministrative

addi-

these

expenses

-

the ad¬
involved,

should not be borne by the trust
fund

the

of

out

regular social

security tax collections. Instead,
it believes that they are a prop-

against

charge

er

of

fund

the

are

other

the

Armed

That is because,

just as
maintaining

Treasury,
of

costs

Forces.

"Under present statutory pro¬

visions, the interest rate on
special obligations purchased by
trust

the

fund

is

based

the

on

all out¬
standing Federal securities, in¬
cluding short-term obligations.
The fund's assets, however, are
available for long-term invest¬

•average

interest rate

The

ment.

therefore
201

(c)

on

of

Board

Trustees

section

that

believes

Security

of the Social

Act should be amended so as to

the trust fund to earn
higher interest rate paid by
long-term
securities,
thereby
increasing the assets of the fund
and affording greater protection

permit
the

to

the workers of America

in

families, who
the-trust fund.

believes that

;

The

in

be elim¬

special Government

acquired

by

the

trust

fund."

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's"

own

views.]

TRADING MARKETS

Delhi-Taylor

Botany Mills

Texas Eastern Transmission

Fashion Park

Bank of America

Indian Head Mills

Pan American

Geo. E. Keith Co.

Morgan Engineering

Sulphur

National Co.

Wagner Electric

Bought—Sold—Quoted

Carl Marks & Co. Inc.
FOREIGN

SCHERCK, RICIITER COMPANY
Member

Bell Teletype
SL 45




Midwest Stock

Exchange

320 N. 4th St.
ouis

2, Mo.

SECURITIES

50 BROAD STREET
TEL:

HANOVER 2-0050

♦

Riverside Cement

Sightmaster Corp.

SPECIALISTS

LEANER & CO.

NEW YORK 4, N. Y.
TELETYPE NY

1-971

Investment

Securities

10 Post Office Square,

CArfield 1-0225

Boston 9, Mass.

Telephone

1

,

computing the inter¬

est rate for

issues

Board

obligations of less

than five years should

inated

and

insured

are

in

Pacific Northwest Pipeline Common

4

general

the

and

"extending coverage," the Fed-

ing of figures).

Anheuser Busch

the last few years,

over

and

million

the

of Social Security

liberalization

In brief, the taxpay¬

kicked

words,

other

In

1950,

on

their

...

imply that, considering the

already

Treasury

general

for

spent

million

the previous

collections

surplus

v/"

1955."

$21-billion "trust fund,"

the

long-term

1954, and the extended coverage
provisions effective Jan. 1,

million.

"total

Eagle Oil

In

disbursement for
security was only
$651

security

the

and

1950-54

growth of the aged population
and the proportion of the aged
eligible for benefits. The rise
in
trust-fund
receipts is ac¬
counted for chiefly by the in¬
crease
in the contribution rate
which went into effect Jan. 1,

other words, the excess of pay¬

current contributions so

Colorado Oil & Gas

extension
and
the
eligibility and bene¬
fit provisions included
in the
amendments adopted during

payroll taxes collected
from the beneficiary groups
to

disbursements
the

in

liberalized

ever,

amounted

10%.-

or

coverage

$4,433 mil¬

of

ments

million

the combined result of

was

bringing total disburse¬
$4,436 million. How¬

penses,

$495

increase

The

which were added $103
of
administrative
ex¬

lion, to

and re¬

disbursements

fiscal year

receipts,

the Secretary of the
Treasury, and the Secretary of
Labor.
OASI disbursements in

Welfare,

fiscal 1955 were net,

some

"Both

Government in comfortable

shape.

bring¬

despite

but

10 million new
taxpayers (and later benefici¬
aries) the growth in benefits
outstripped the growth in tax
collections,
the
trustees
re¬
ported.

ally, creating each year a "cash

surplus"

benefits of Social Security were

ing

$5 billion annu¬

nitude of $4 to

Security

1954, both coverage and

Act of

social security were in the mag¬

ers

White

got

daily press..

the

with

Social

the

Under

Only four or five years ago,
excess
of "trust fund" re¬

roll
"What

Senator Olin Johnston, in a

y

it

Fund

Trust

the

trust

Other Aspects Studied

chief of that
bank's balance of payments di¬

1950

made from the

been

Benefits

Coverage,

the
Trustees',
of

report

rose

York and

Unserve Bank of New

\.

angle, which

secrets to foreign princi¬
pals, Vi it
was
stated, thereby
providing a big security leak.

se-

after August

1954 Act Broadens

the

is

program

the

of

notice in

little

ergy

Federal

the

of

Angle

is
Internal
Security subcommittee, is that
nominally American firms which
actually ere foreign owned, may
be in a position to pass on top
secret, defense and atomic en¬

Ind.).

Security

OASI

the chief concern of the

Project was held last Friday, to

S

cial

burden

in

enacted

legislation

1952, 1953, and 1955, all non-,
contributory benefit payments
credit for military

whose

security

The

subcommittee. The
membership consists of two
.Senators, Olin D. Johnston (D.,
S. Car.), chairman, and William
Security

•

of

wheel down

meant by being a big
at the exchange!"

"So THIS is what you

hearings, it was stated,
what they know of for¬

The Security

is a sub¬
the Internal

within

payments arising from credit
for military service. As a result

while of¬

eign ownership.

American corporations,
committee

1946, the trust fund was reim¬
out of general revenues
noncontributory benefit

bursed
for

in public
to tell

legislation enacted in

"Under

principals. The officers of some
of these companies will be called

subcommittee. The new
which will study the need
some limited form of regis¬

:

selected.

remaining nomi¬
in nationality,
actually owned by foreign

are

group

tration of foreign

payroll, depending on the
combination of cost assumptions

of

American

nally

curity
of

level-premium cost at 2.4% in- ;;
terest ranges from 6.61 to 8.57%

ficered by and

Judiciary

the

assumptions,

employment

to some

as

actual companies that,

part of the Senate
committee.
Senator
James O. Eastland (D., Miss.) is
chairman of both the full com¬
mittee
arid the Internal Se¬
is

mittee

to

that, on the basis of high

show

the subcommittee is
have picked up leads in

secret testimony

its

period.

this

during

>

Long-range actuarial studies

Finally,

be proposed for

is not likely to

old-age and survivors insurance
program

panies.

legislation

.ciderable time. Hence

aggregate disbursements of the

foreign acquisi¬
American com¬

tions of certain

during the five-year

period immediately ahead will
be
wholly sufficient to meet

have passed into control
hands.
Next in line was testimony to
come
from
Defense establish¬
ments as to the latters' appre¬
hensions
about
possible quiet
and anonymous

the

of

investments

on

trust fund

of foreign

un¬

contributions and

from

interest

al¬

on

aggregate

"It is estimated that
income

ingly

• purpose of public, disclosure of
foreign interest and clientele,
analogous to the now required
registration of foreign, agents
and propagandists in this coun¬
try, it was stated. ,
,
-

,

those

public to elicit
from the Commerce Department
what the latter knows about the
true or ultimate ownership of
some
companies which seem¬

in national defense work or on
contracts for atomic energy in¬

^

pertinent
paragraphs
subjects follow.
"

The

in

hearing

a

engaging

companies

American

tating effects made suggestions
reimbursing the trust fund.

ready have been held this week
—the subcommittee was having

key

of

control

obtain

which

^

report

for

session.

for

need

their

during the next five years, and
in an obvious effort to get out
from under the fiscally-debili¬

in¬
terested in capital enterprises."
He was apparently referring to
testimony
taken in executive

a study, with public
which will point up
legislation setting

is

at

tiearings,

bene¬

would finance disbursements

becoming more and more

are

in

trustees

The

Communists here

testimony that

WASHINGTON, D. C.—What
the
Senate
Internal
Security
subcommittee is believed aim¬

>

to be¬

receive

to

only promised that payroll taxes

And You

S3?"

from the Nation

eligible

fits.

DEP'T STORE

DOOPLE'S

Behind - the • Scene

before they began

come

Teletype

HUbbard 2-1990

BS 69